3 Common Freight Supply Chain Issues and Ways to Solve Them
At times, the supply chain crisis has no doubt felt unwieldy. Suppliers and manufacturers from all over the world have largely been put to the test — encountering massive stock shortages, fulfillment delays, and lengthy backorders on their most popular inventory items.
We’ve all heard the saying about doing the same thing and expecting different results. So, why go mad when you can adapt? There are a lot of moving parts that go into freight logistics. While that can mean a lot of new opportunities and experiences, it also yields some common patterns when it comes to bottlenecks.
Although we can’t provide clean, one-size fits all solutions, we’ve compiled three of the most common obstacles and a few suggestions for tackling them when you find yourself repeatedly stuck.
Issue 1: High transportation costs
Controlling freight costs is a persistent issue within transportation, and it has been an even bigger headache for shippers in recent years due to the volatility of the supply chain. Worldwide lockdown measures incited a surge in eCommerce sales, creating a greater import demand for raw materials and manufactured consumer goods in response. The demand was so much more substantial than anticipated that it was met with insufficient shipping capacity and therefore an unprecedented shortage of available containers.
Solution:
Companies can use several approaches to reduce risk related to transportation delays resulting in increased freight costs:
Contracting steady lane volume
Increasing delivery lead times
Look for carriers based near your ship-to points
Partner with a 3PL like Sparrow Logistics
Issue 2: High attrition and turnover leading to delays
Companies rely heavily on dockworkers, warehouse employees, and carriers to effectively process their businesses' shipping and logistics needs. So, when there are not enough people in positions to move goods, supply chains break down–fast.
A large part of this obstacle is high employee attrition, which differs from turnover because it stems from an employee’s decision to leave rather than scenarios like being terminated. Attrition describes when employees retire, resign, and/or are simply not replaced. Data shows that younger generations are less interested in transport jobs. Even though truck-driving jobs pay relatively well, younger generations are more concerned with finding jobs that offer a more impactful work-life balance. The challenge of getting a commercial driver’s license (CDL) in specific states only makes it even more complicated–and less appealing–to become a carrier.
Solution:
While the high attrition rates can be obviously out of your hands, you can have a few strategies in your back pocket when shortages become a prominent issue. Well-defined operational processes with proven efficiency and effectiveness are vital, along with consistent, well-documented operational processes, because this can reduce the learning curve for new employees. Clearly defining these processes helps employees know what's expected and give them confidence in their performance. An employee who is knowledgeable and well-trained tends to be more satisfied.
Human touch is always appreciated. However, even where human cooperation is required, automation can sometimes improve efficiency and accuracy in order fulfillment. As automation technology advances, robotics and other technologies can assume some human roles, optimizing logic for movement around the warehouse. Though a significant expense, warehouse automation, and technology investment can allow your business to scale up, keep pace with competitors, and earn customer loyalty, even in the face of limited labor.
Issue 3: Insufficient visibility
Limited visibility can lead to various issues within logistics supply chains, including a lack of accuracy and strained supplier relationships. This is an issue impacting businesses across industries, with one survey suggesting that 69% of companies don’t have total visibility across their supply chains.
Reduced visibility can be a particularly pressing issue when operations are already contending with a range of other challenges, resulting in several outcomes becoming out of reach, such as:
Risk foresight
Positive partnerships
Optimized inventory management
Planned supply chain activities
Resilient supplier management
Solution:
Cloud supply chain technology can alleviate some of these problems by bringing data together on one platform. Rather than exhausting time and resources trying to compile and glean insights from all over supply chains, companies can view all their orders, inventory, and delivery data within a single dashboard.
Sparrow Logistics is the best solution for your needs
Because so many questions are involved in logistics supply chains, that can lead to delays, miscommunication with suppliers, and ultimately rising costs. Sparrow can help mitigate those supply chain issues both now and in the future. Our real secret sauce, however, is our expertise in expedited shipping. As an expedited brokerage, we’re here to help quickly in an emergency. Where most brokerages can require days in advance notice to prepare, we can work with less than a 24-hour notice to get your order on track.
Not only that, but Sparrow’s approach is always people first. With our team, you not only get exceptional 24/7 dedicated service, but you partner with experts in the transportation industry and connections nationwide. That means we can assist you in accomplishing your business goals while staying on budget and on time.
Want to learn more about how Sparrow can help soothe your supply chain concerns?