customs brokerage, freight forwarding and truck transportation

Rethinking Supply Chain Lead-Times

: Transport

After Years of Removing Time from the Supply Chain, More is Now Needed 2018-03-22

Panelists in a session of the recent 44th Annual Transportation & Logistics Council all seemed to agree on the current issues facing the industry – lack of drivers, not enough capacity, and the “Amazon effect.” They also agreed that time is a dynamic that has become ever-more precious in today’s supply chain.

“When we talk about capacity, we talk about trucks and drivers … but the thing we rarely talk about is time,” said William Cassidy, senior editor of the Journal of Commerce. “Over the years, we sucked the time out of the supply chain … and what we’ve done is dump that time on the weakest part of the supply chain – the driver.”

That pain is now being brought to the fore in part due to the electronic logging device (ELD) mandate and the continued strength of the economy. It’s particularly acute along the “tweener” lanes, something that FreightWaves has reported on previously. These lanes (Cassidy described it as 450 to 550 miles) have seen a 16% extension of in transit times. As the time it takes to run this lane increases, Cassidy said that carriers are turning down more loads.

“We’re going to have to look at ways to make time within the supply chain and that may mean better forecasting or … working with carriers,” he said.

Read more in an article from FreightWaves.

Source: CIFFA


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