Trucking logistics: the ups and downs
Twenty-six million trucks were operating in the United States in 2006, moving 10 billion long tons and 9 billion short tons of cargo. It’s worth noting that this accounts for 70% of the entire freight volume in the USA. Nonetheless, logistics in trucking provide several difficulties. Some of the difficulties truckers experience are discussed as methods for increasing productivity while decreasing expenses. The advantages of using a third-party logistics provider will also be covered. Learn more about trucking logistics and how it can help your business after reading this article.
The assistance of a third-party logistics provider (3PL) can be invaluable to firms looking to grow. These businesses are uniquely positioned to meet the demands of emerging markets, comply with strict international trade restrictions, and maximize their considerable resources by offering direct distribution channels. In addition, the best 3PLs have amassed assets that reveal supply chain flaws and anomalies, allowing them to streamline operations. By doing so, they help their customers save money while boosting productivity.
There are many upsides to enlisting the aid of a third-party logistics company. While many of these businesses provide a full range of logistics support, others focus on serving a specific region. In addition, many of these businesses now offer trucking and warehouse services under one roof because of the technological advancements that have enabled this expansion. As a result, they have several options for transporting freight. Many 3PLs also include forecasting, transportation-management software, and freight bill audits in addition to trucks and other modes of transportation.
Inclement weather is one of the most common causes of capacity constraints, though there are many more. During a severe heat wave, a shipment can perish. There may not be enough available trucks or storage containers, which might cause scarcity. Only about two million semi-trucks may be on the road at once. Thus trucking capacity is tight. A lack of drivers, trucks, or equipment can all contribute to a shortfall in general logistics.
Even though the industry is showing indications of becoming more competitive, the truck capacity shortage is not projected to evaporate very soon. Produce for the summer months is in high demand starting in June, which could lead to a shortage of available trucks. The nation will also require the transit of construction tools and agricultural machines. Due to this, many truck drivers have already reached their capacity. According to Eric Metso, ATS Transportation’s sales manager, the holiday season sees a 15 percent uptick in business.
Using the best trucks for the job and the most direct routes are two ways to increase productivity in trucking logistics. Plans should consider the size of the truck and trailer and provide drivers with information on the destination and the most time-efficient route to get there. This will prevent unnecessary stops and wasted gas by using the exact vehicle for both legs of the journey. Load efficiency can also be improved if trucking companies use the suitable vehicles for the load and avoid either overloading or underloading.
Increasing the fuel efficiency of trucks is another approach to streamlining logistics operations. Trucks with better fuel efficiency have a more excellent range and require less fuel to travel the same distance. As a result, they can save money by keeping the truck on the road for longer. Having truck scales installed so drivers can weigh cargo as they load or unload is another way to boost productivity. Because of this, truck drivers won’t have to stop halfway through their trip to weigh their cargo, saving them both time and effort.
Logistics costs, especially trucking, are rising, making it difficult for businesses to remain profitable. Profit margins are squeezed by rising diesel prices, “deadhead” kilometers, roadside assistance, and other component expenses. Supply chain problems, a lack of available port space, and rising fuel prices have all contributed to a sharp increase in the price of ocean transport. As a result, companies are trying to find less expensive transportation options as the current options become increasingly unsustainable.
Supply and demand are the foundation of trucking economics. A price decrease is expected if there is more supply than demand. Trucking rates are often quoted on a per-mile basis. The operating cost ratio per mile provides valuable information for integrating costs into pricing strategies. As reported by the American Truckload Carrier Association’s annual survey, for-hire truckload carriers typically log between 1,700 and 1,900 miles per week. SONAR now has the December mileage totals available.
Reengineering trucking logistics aims to improve the effectiveness of existing business operations. It aids businesses in enhancing their end-to-end procedures and eliminating the ones that aren’t necessary. An OFP system cuts down on gas consumption and staff time spent on transportation. Likewise, it can help improve how well businesses interact with their clients. Engineering trucking logistics, in whatever form it takes, can save costs significantly. When reworking your company’s logistics, you must consider the following factors.
