Articles by Month: June 2020
As Cleveland 3PL (third-party logistics) providers, we understand that what’s good for the environment is also good for overall supply chain sustainability. Partnering with a dedicated 3PL provider in itself can help companies make the most of transportation and warehouse capacity while also reducing adverse environmental impacts. That’s because we can streamline processes and resource usage.
Although eco-friendly practices sometimes have a reputation for being pricier and more time-consuming (at least in the short term), the reality is that more sustainable strategies in packaging, warehousing and transportation often have the added benefit of lowering your costs and time investment. Some of the economic goals that improve environmental outcomes include reducing the aggregate distance traveled by each unit, eliminating the unnecessary use of resources, moving inventory faster and being as responsive as possible to customer demand.
The logistics sector in general has long been on the cutting edge of green innovation because economy and efficiency go hand-in-hand with minimizing waste. Companies that nurture a sense of sustainability can often find a great deal of common ground between greater social responsibility and lowered expenses.
Supply chains have been unquestionably disrupted by the novel coronavirus, but issues with U.S. port terminal efficiency didn’t start there. The crisis merely cast these problems into stark relief. One silver lining in all this is that some port terminal operators are seizing this opportunity to streamline their operations with digital and self-service options to improve transparency and visibility. More efficiency at maritime ports would only serve to improve Cleveland trucking delivery times, allowing us to provide increasingly faster service.
It’s not likely to happen overnight, though.
Last month, the CEO of the Association of American Port Authorities testified before the U.S. House Transportation and Infrastructure Committee and revealed that significantly reduced freight volumes are unlikely to bounce back before the end of 2020. The year-over-year volume drops in March were estimated to be about 18 percent and in April and May between 20 to 25 percent.
On the one hand, this could cause some ports to halt any planned investment in capital improvement projects – including digitization. On the other hand, stronger competition may provide greater incentive to address some of the longstanding issues that have led to bottlenecks and other headaches at some ports for years.