Articles by Day: September 15, 2022
Supply chain instability and challenges – from labor shortages to backlogged ports to pricey spot truck rates – have basically been the status quo ever since the pandemic. Although some aspects may be starting to even out, Cleveland 3PL experts at On Time Delivery & Warehouse recognize that with the height of peak season 2022 on the horizon, manufacturers, wholesalers, and retailers are bracing for these challenges to take on greater significance. Those able to effectively leverage the resources of a Cleveland 3PL trucking, warehouse, and logistics firm will ultimately be the ones that carve out a competitive advantage.
In general, peak season typically occurs annually, starting with the back-to-school shopping season in late summer and rounds out sometime in November, just after Black Friday (with a final holiday rush in late December). However, some suppliers say that with unpredictable surge-and-trickle demands, those clear seasonal trends have been tougher to nail down.
Still, logistics industry insiders are predicting tsunamis of demand in certain sectors, with ripple effects spreading far beyond those directly in the center. That could mean we’re likely to see delivery delays, price increases, and further labor shortages. Northeast Ohio companies seeking to minimize their vulnerability to supply chain challenges would be wise to tap into the resources offered by a dedicated Cleveland 3PL.
Primary Peak Season Challenges
To effectively prepare for the challenges of peak season, you must first identify what that time frame is for you – in your industry, your region, and your organization specifically. That alone can be tricky, particularly given the lack of market predictability in recent years.
This is one area where a Cleveland 3PL can help. You know your business, but we know supply chains. We utilize the latest data software to analyze inventory and the movement of goods critical to your operations. Once we pinpoint trends, weaknesses, and bottlenecks in your supply chain, we help create a strategic end-to-end plan to minimize delays and losses.
Some common issues likely to arise:
- Fluctuation in peak season length. When you know how long your peak season is going to be, you can better prepare by matching the appropriate level of seasonal labor and delivery costs. Even when it’s difficult to nail down, there may still be precautions we can suggest to help you minimize the consequences.
- Inaccurate volume forecasting. This has been especially challenging in recent years. A third-party logistics firm can help with accurate data analysis to better identify when spikes and lulls can likely be anticipated – and prepare effective responses if outcomes deviate from earlier predictions.
- Lack of efficiency in labor management. If you’re trying to manage your own operations while also managing your own supply chain, warehousing, and delivery can be next to impossible for some firms – particularly when you’re under additional demand pressures. Transparency, accurate communication, and proper training are imperatives. Errors and oversights can result in wastefulness and depletion of customer confidence.
Peak season predicaments can sometimes be forecasted, but not always. Working with a competent Cleveland 3PL helps ensure you are better prepared for both the known and the unknown.
Cleveland 3PL Predicts Warehouse Bottlenecks Likely to Be a Problem This Peak Season
Although industries vary on the specific challenges they face during peak season, our Cleveland 3PL is fairly certain as we head into the last quarter of 2022 that warehousing bottlenecks will become nearly everyone’s problem.
Recently, The Wall Street Journal noted that the shipping capacity struggles that were apparent at traffic-snarled seaports has been moving inland the last few months. It’s only likely to be exacerbated. As those of us in the logistics field know, trailers needed to transport goods on trucks are already being tied up – sometimes for weeks on end, even as demand for container ships has waned – because so many warehouses are at capacity. Distribution hubs in the Midwest and throughout the U.S. are seeing lengthy delays.
Recognizing these headaches are likely to drag on well into next year, our Cleveland third-party logistics professionals work closely with clients to arrange the most streamlined, cost-efficient modes and methods of shipping, storage, and delivery. We can help you access the most up-to-date, transparent data to help identify optimal rates, diversify carrier relationships, hone in on flexible warehousing partners, and anticipate reasonable timelines.
For information on 3PL Warehousing, Inventory Management, and Trucking Services in Cleveland, Contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Warehouse Bottlenecks Are Snarling U.S. Supply Chains, Aug. 26, 2022, By Paul Berger, The Wall Street Journal
More Blog Entries:
6 Supply Chain Insights From Northeast Ohio Third-Party Logistics Warehouse Pros, Aug. 28, 2022, On Time Delivery & Warehouse Blog