Does Your Cleveland Trucking Logistics Firm Have Staying Power?
Manufacturers, retailers and other businesses seeking to team up with a top Cleveland trucking logistics firm are probably mindful of recent “trucking industry recession” rumblings. Before on-boarding a new trucking 3PL, it’s reasonable to want assurance the transportation team chosen will having staying power.
Leaders at long-time Cleveland trucking logistics firm On-Time Delivery & Warehouse urge potential clients to bear in mind: The trucking industry has always operated in cycles of dizzying heights and sharp declines. That’s because our network of transportation logistics partners is not only national but global, and we serve a broad range of industries, leaving us more exposed than most to the fickle market fluctuations across industries and continents.
But we’ve remained strong in business all this time because of what we do best: Planning and preparing. We may actually earn more than other industries when times are good, but that allows us to prepare for fluctuations.
Our customers and partners stick with us because they know day-in-and-day-out, we plan extensively in ways that allow us to streamline, reduce waste, lower costs and get goods where they need to be – intact and on-time.
We’re going to take the same care in preparation for our own sustainability – because we want to be around to serve this community and beyond for many more years to come.
What Would a Trucking Recession Really Mean?
Supply chains are notorious for rapid expansion and contraction. Just last year, trucking industry analysts reported record-high orders for new truck-and-trailer orders. Now, order rates are down almost 40 percent and analysts are weighing a possible impending recession.. Next quarter could be a different story.
These “recessions” have the potential for a wider-scale ripple effect, but for the most part, the ebb and flow is fairly contained – and relatively quick. But not all Cleveland trucking logistics and truckload carriers, 3PLs, freight fowarders, parcel carriers will survive, especially if they’re primarily asset-based. Although capacity itself isn’t typically that volatile. Demand is.
Acquiring the assets necessary to move goods quickly (box trucks, flatbeds, semis, tractor-trailers, etc.) can take a Cleveland trucking logistics firm decades of careful investment. An economic downtown – even in a single sector – can mean within just a few months, those assets are underutilized.
How to Know if Your Cleveland Trucking Logistics Firm Will Survive
We built this company carefully from the ground up by offering transportation assets (we have a sizable fleet of trucks and trailers), but also third-party logistics services and warehousing. Differentiating ourselves puts us at a market advantage. Sometimes, our trucks fit your delivery needs at the best price point. Other times, you’re better off when we arrange transport through one of Cleveland trucking logistics partners. Contracted freight with improved technology for visibility throughout the supply chain allows us to maintain profitability AND give our customers an edge.
When there isn’t enough freight to around, the market will separate trucking companies and 3PLs that are savvy from those thin on technology, capability and service. Competition among transportation companies is actually good for you as a consumer. If yours can’t provide you with controlled costs, optimized networks and superior service and cost savings, it will be time to shop around.
If you’re concerned your Cleveland trucking logistics partner may not have what it takes to sustain, we’d love to meet with you and discuss how On Time Delivery & Warehouse can boost your bottom line – now and in whatever economic climate lies ahead.
American shippers and carriers react to signs of economic slowdown, Jan. 4, 2019, By Henry Carmichael, FreightWaves.com
More Blog Entries:
Are Your Cleveland Trucking Solutions Adaptable? Check With Our 3PL, May 12, 2019, On Time Delivery & Warehouse Trucking Logistics Blog