Compensating for trucking shortages

Software to make supply chains more efficient

Transporters of consumer packaged goods (CPG), grocers as well as restaurants are all grappling with an increasingly tight trucking market that has led to supply chain issues nationwide. The trickle-down effect of that problem has equated to higher costs for end-users, prompting many companies to raise prices.

One way to curb losses stemming from the trucking shortage is to maximize the use of software, which can make supply chains more efficient.

Shipping disruptions not only cause headaches for suppliers; they also have huge financial implications. Grocers traditionally fine CPG firms for deliveries that aren’t on time. Some retailers charge suppliers for deliveries that arrive early or incomplete as well, according to a recent report from McKinsey. The report estimates that such penalties could reach $5 billion annually nationwide if CPG firms aren’t able to boost the performance of their delivery services.

By optimizing the use of software, companies can track whether shipments are trending early or late,  both of which can have financial implications. If it appears that a delivery will arrive earlier than planned, the company can have a team ready at the offloading point to unload inventory, allowing the truck to get back on the road swiftly.

If, on the other hand, the shipment is going to be late, the company can anticipate the disruption and use software to model “what-if scenarios” to determine how they can make adjustments to account for the delays.

Source: smartbrief.com


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