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Cleveland Trucking Policies & Practices Potentially Impacted by the Next President
Cleveland trucking may not be inherently political, but there’s no denying that government rules and regulations inevitably have an impact on the industry’s policies and practices. With a new administration poised to take control of the White House early next year, it’s a good idea to for Cleveland trucking companies to forecast potential shifts in legislative and regulatory agendas — to stay a step ahead and ensure logistics elasticity and supply chain resilience.
It’s worth noting that at least as far as logistics are concerned, changes in government typically can’t be characterized as simply all “good” or “bad.” The reality is global supply chains are constantly feeling the push and pull of a wide range of factors: Elections, wars, disasters, pandemics, new laws, strikes and more.
The key is to be ready for whatever the future brings. One advantage Cleveland trucking companies have with the incoming administration is that it’s already been in office before, from 2016 to 2020. That means we have a better idea of what to expect, in addition to whatever vows they’ve made on the campaign trail.
Here, we’re outlining some of the most significant potential changes and impacts for the Cleveland trucking industry over the next four years.
Engine Emissions
The current administration’s Environmental Protection Agency had initiated a final rule for greenhouse gas emissions standards for heavy-duty vehicles that applies to trucks with model years 2027 through 2032. It relies fairly heavily on power systems that are either battery-electric or hydrogen-electric.
The new administration, however, is widely expected to reset or readjust the standards/emissions targets, lengthen compliance timelines and explore alternatives, such as renewable diesel.
Cleveland trucking companies may see some cost savings, given that a brand new diesel-powered electric tractor-trailer costs less than half as much as a brand new electric tractor-trailer. Also, electronic vehicle batteries can weigh up to 16,000 pounds, which cuts into cargo capacity for highway safety weight restrictions. That means trucks without electric vehicle batteries may be able to move more goods faster.
Autonomous Trucks
The current administration had intended to propose regulation that would fast-track truck automation. The incoming administration is more likely to revert to an approach that’s more industry-driven. That’s likely to be less expensive for Cleveland trucking companies, given that onboarding autonomous trucks will require sizable upfront costs for equipment, training, inspections, etc.
Truck Parking
The current administration had allotted more money to truck parking via the Infrastructure, Investment & Jobs Act. But the VP candidate of the incoming administration was also a co-sponsor of the Truck Parking Safety Improvement Act, a pending measure that would allot more than $750 million by 2027 to expand truck parking.
Infrastructure Laws
The current administration passed a massive infrastructure bill that allotted roughly $110 billion for new and/or improved bridges, highways and road projects. The new administration is expected to reauthorize that bill in two years, but will have discretion on how that money is spent. More than likely, we’ll see environmental protections being scaled back while there are greater investments on larger capacity on bridges and highways.
What’s the Value of Value Added Services in Ohio Warehousing?
In the heart of the Midwest, where the pulse of industry meets the arteries of American commerce, third-party logistics (3PL) providers are revolutionizing warehousing and distribution with a suite of value added services.
More than mere storage, today’s 3PLs act as an extension of their clients’ brands, enhancing customer experience, refining product presentation, and optimizing supply chains. This evolution in logistics is an answer to the call for efficiency, flexibility, and competitiveness in global markets.
For businesses looking to stay agile in a rapidly changing world, partnering with a 3PL provider that offers value added services isn’t just advantageous—it’s a game-changer. On Time Delivery & Warehouse in Cleveland, Ohio is a key player in the supply chain success of our customers.
Understanding Value-Added Services
Value added services encompass a wide range of offerings designed to do more than simply store and ship products. These services are tailored to help businesses optimize supply chain functions, reduce costs, and differentiate themselves in crowded markets. Midwest 3PL providers, with their central U.S. location and access to expansive transportation networks, are uniquely positioned to execute these services efficiently and cost-effectively.
Here are some of the most impactful value-added services an Ohio 3PL warehouse and distribution facility can offer, along with the ways they help businesses gain a competitive edge.
1. Kitting and Assembly
One of the most common value added services, kitting, involves grouping individual items together into ready-to-ship packages or kits. Whether assembling products from multiple components or creating promotional bundles, kitting and assembly services add flexibility and efficiency to the fulfillment process.
For companies, kitting can yield remarkable savings. By packaging products into sets or pre-assembled units, they reduce the time and labor required to fulfill individual orders. Kitting also enhances branding, as items arrive neatly packaged, ready to impress end customers. For retailers especially, these services improve presentation and reduce the need for additional handling, resulting in a more seamless experience for customers.
2. Custom Labeling and Packaging
In today’s market, product presentation can be just as important as the product itself. Custom labeling and packaging services allow businesses to tailor each shipment to reflect their brand’s identity and meet regulatory requirements. This service can involve placing labels on products, customizing outer packaging, or even inserting promotional materials into shipments.
Custom labeling and packaging not only streamline operations by making sure goods are prepped and ready for retail but also enhance the customer experience by conveying a consistent, branded message. According to a study by Dotcom Distribution, 52% of customers are more likely to make repeat purchases from a company that provides premium packaging. For companies seeking to build strong brand loyalty, this value-added service makes a powerful impact.
3. Inventory Management and Demand Forecasting
An increasing number of 3PL providers are using sophisticated data analytics to help clients manage inventory more effectively. With demand forecasting tools, they can predict peak periods, identify trends, and ensure optimal stock levels, reducing the risk of overstocking or stockouts.
For example, data from the Council of Supply Chain Management Professionals (CSCMP) shows that effective inventory management can reduce warehousing costs by up to 25%. Businesses that utilize 3PL inventory management tools gain valuable insights into their supply chains, enabling them to plan better and keep costs under control.
4. Freight Consolidation and Cross-Docking
To reduce time, costs, and environmental impact, 3PL providers often offer freight consolidation and cross-docking services. Freight consolidation combines smaller shipments into a single, larger load, optimizing space and reducing transportation expenses. Cross-docking, on the other hand, involves transferring goods directly from inbound to outbound trucks, minimizing storage time and speeding up delivery.
In a highly competitive global market, reducing transit times can make a considerable difference. According to Inbound Logistics, companies that use cross-docking can reduce transportation costs by 10-20%. For businesses working with On Time Delivery & Warehouse, access to Cleveland cross-docking and consolidation provides faster shipping and lower costs—vital advantages in industries with high-volume, time-sensitive products like retail and electronics.
Our Ohio Distribution Service Helps You Rise to the Challenge of Rising Customer Demand
In today’s fast-moving global markets, efficient distribution is crucial for every business—from small startups to large corporations—to meet the ever-growing demands of customers and clients. As an Ohio-based third-party logistics (3PL) provider, we understand the pressures of maintaining reliable, cost-effective Ohio distribution service. We recognize doing it all in-house can be a major drain on resources.
That’s where partnering with a dedicated 3PL like On Time Delivery and Warehouse can make all the difference. Not only do we help businesses streamline their operations, we also provide the expertise and infrastructure to keep goods moving quickly and efficiently.
Here’s why outsourcing your Ohio distribution service needs to a trusted 3PL is one of the smartest moves your business can make.
What Exactly is a Distribution Service?
At its core, distribution is the process of getting goods from the point of origin to the end customer. That encompasses everything from warehousing and inventory management to order fulfillment and transportation.
An Ohio distribution service provider, like our third-party logistics operation, takes this on by managing the logistics, allowing you to focus on the big picture. Whether it’s handling bulk shipments for a B2B client, managing last-mile deliveries for an e-commerce brand, or overseeing temperature-sensitive items for a healthcare provider, our job is to ensure your products reach their destination accurately and on time.
Our services are fully customizable to fit the unique needs of any business, whether you’re looking for end-to-end logistics or need support with specific stages of distribution. And with our specialized trucking fleet and extensive warehouse facilities, we handle the entire process, from receiving goods to ensuring they’re packed, shipped, and delivered with care.
Who Benefits from Using Ohio Distribution Services?
Distribution services are critical for a wide range of industries.
Manufacturers rely on 3PLs to store and ship raw materials and finished goods. Retailers, both physical and e-commerce, need distribution partners to manage inventory, track shipments, and meet consumer expectations for quick deliveries. Healthcare providers require specialized handling for temperature-sensitive goods, while food and beverage companies need seamless transportation for perishable items. Distribution service options at On Time Delivery & Warehouse are structured to cater to all these sectors and more.
These services are transforming how companies meet today’s rising customer demands for speed, convenience and reliability. By partnering with an experienced 3PL, companies gain access to a turn-key distribution service network — complete with warehousing, transportation and inventory management expertise.
For growing businesses, outsourcing to a 3PL is a game-changer — especially when it comes to coping with unexpected demand surges, market expansions and seasonal spikes and dips. There’s always going to be logistics pressures, but a dedicated 3PL can much more easily adjust resources and routes as needed — ensuring orders are consistently on time and accurately fulfilled.
Multi-Door Cleveland Warehouse Helps Ensure On Time Deliveries
In the logistics and supply chain sectors, the ability to consistently meet delivery timelines is critical for success. A Cleveland warehouse with multiple doors for loading and unloading — specifically those with a dozen or more — are well-equipped to handle a high volume of inbound and outbound goods, giving their customers a solid edge on faster delivery times.
At On Time Delivery & Warehouse, our 3PL / 4PL Cleveland warehouse operation has a total of 17 doors for maximum efficiency and safety in loading and unloading.
Each additional door provides a unique point of access for transport vehicles. Ultimately, this reduces bottlenecks and waiting times during peak hours.
The configuration of a warehouse can have huge implications for its practical efficiency.
In a typical warehouse, limited loading and unloading points can lead to delays, causing trucks to queue up and increasing wait times and potential shipment delays.
By contrast, a multi-door Cleveland warehouse facility can operate with greater flexibility, allowing more trucks to load and unload simultaneously — effectively doubling or even tripling output during high-demand periods.
Manufacturers, shippers and logistics companies working for B2B customers often need to process large shipments quickly, often within strict time limits. A facility with multiple doors helps these providers maintain faster turnaround times, ensuring those business-to-business clients receive their goods without interruption to their production or retail cycles.
Meanwhile, last-mile logistics providers face the unique challenge of quickly preparing and distributing smaller parcels for individual customers. Here, a multi-door setup also enables for faster loading, giving drivers more time on the road and improving the odds of on-time deliveries.
Reducing Costs With Optimized Cleveland Warehouse Solutions
Beyond improving delivery times, a warehouse with 12+ doors can also contribute to cost savings. When inbound and outbound trucks are able to unload and load more efficiently, companies save on fuel and labor costs.
Cleveland Local Cartage: Cost-Effective, Convenient, Customized
Getting goods where they need to go quickly and efficiently is always going to be something of a challenge in business. Logistics professionals pour a lot of resources into coordinating long-haul transportation solutions. But let’s not overlook local cartage. It is easily just as – if not more – important when it comes to effectively managing time and expenses in your supply chain.
As a longtime provider of Cleveland local cartage services, On Time Delivery & Warehouse is committed to supply chain efficiency on every leg of the journey.
What is Local Cartage?
Local cartage is the term we use to describe the short-distance transport of goods within a defined local area, typically within a city or between cities in close proximity.
These services are central to businesses that need a lot of deliveries in a given area. Examples include:
- Retailers moving inventory between stores
- Manufacturers delivering products to nearby warehouses
- Businesses requiring quick delivery to customers in an urban region
Local cartage usually leverages the use of smaller commercial vehicles, such as fans or box trucks, allowing for better maneuverability around tight metropolitan streets. Sometimes, though, larger trucks might be used. It just depends on the volume of goods that need to be transported per delivery.
Understanding the Ohio Freight System
Virtually everything that is produced and/or consumed in Ohio is dependent on some part of the freight transport system. Ohio local cartage services are a part of that.
According to the Ohio Department of Transportation, Ohio’s freight system transported over 1 billion tons of goods worth $1.2 trillion in a single recent year – the 7th largest value of freight moved by state in the country. Most of that is concentrated in the Cleveland-Akron area (where On Time Delivery & Warehouse is headquartered), as well as the Columbus, Cincinnati, Toledo and Youngstown metro regions. Trucking in particular is key because it’s sometimes the only immediate modal connection to which some establishments have access, and it’s also essential for first- and last-mile movement of goods.
Cleveland CFS Freight Helps Ready Businesses for Holiday Shipping Rush
The start of autumn still feels like summer here in Northeast Ohio, but businesses are already bracing for the cold realities of the upcoming holiday season. One of the busiest times of year, the final quarter is rife with challenge as customer demand surges, inventory counts can be volatile and delivery deadlines are tight. But there’s also room for new opportunities and growth. A strong Cleveland CFS Freight partner can help companies prepare.
Key to efficient navigation of the holiday shipping rush is partnership with a third-party logistics (3PL) provider specializing in Container Freight Station (CFS) services.
Whether handling foreign or domestic imports and exports, a Cleveland CFS freight company works closely with shippers and other stakeholders to optimize their supply chains, reduce transit times and ensure smooth logistics management during the busiest months of the year.
In a recent live stream co-hosted by Supply Chain Dive, Retail Dive and Marketing Dive, logistics experts noted that it’s not too late for businesses that haven’t gotten a jumpstart on preparing. That said, it should be a priority. This is especially true this year, thanks to major operational shifts for the U.S. Postal Service, which we expect is going to result in some on-time delivery challenges.
Businesses need to begin formulating their contingency plans to sidestep potential bottlenecks and other supply chain disruptions. For instance, shippers need to start thinking about planning for capacity and also sharing their shipping data with carriers so you’re on the same page about needs and expectations.
Shipping capacity is forecasted to be fairly steady this year, but it’s best to avoid last-minute arrangements whenever possible if you’re trying to keep costs in check.
What Services Does a Cleveland CFS Freight Company Offer?
Dial Us for Deals on Getting Cleveland Delivery Appointment Scheduled
As the saying goes, time is money. And that’s precisely why delivery appointments make smart business sense for a lot of operations: Because they save time. As an Ohio 3PL, one of our top priorities is getting every Cleveland delivery appointment scheduled for the mode, timetable and price point that works for each client.
Delivery appointments aren’t new. However, their scope has expanded in recent years. They’re no longer just for warehouses and distribution centers (though they’re still used often there too). They’ve become essential in an e-commerce era when customers have high expectations for fast turnaround. Setting clear delivery windows at appointed times can go a long way toward keeping customers happy and operations efficient while minimizing the chances of missed deliveries.
What is a Delivery Appointment?
A delivery appointment is a scheduled time slot that a carrier or 3PL (third-party logistics) provider agrees to with the receiving party for the delivery of goods. Unlike regular deliveries, which could arrive at any time of day, a delivery appointment scheduled in advance establishes a predetermined time that the shipment is expected to arrive at a given location.
The process involves coordination and communication between the shipper, carrier and consignee/recipient to be certain all are on the same page.
Delivery appointments have historically been mostly reserved for deliveries to warehouses, distribution centers and retail stores, as opposed to individual customers. That made sense because these operations need to effectively manage the flow of incoming goods to maintain efficiency and avoid bottlenecks and delays. If every delivery truck showed up to our Cleveland warehouse at random, it would be a chaotic scene. Scheduling delivery appointments at set times helps ensure we have the capacity to safely and efficiently process those shipments before moving on to the next.
However, customer buying patterns and expectations during the pandemic gave way to a rise in delivery appointments as an add-on service in last mile delivery. An analysis by Salesforce.com noted that the dawn of this “appointment economy” has the potential to optimize customer field engagements within the delivery process, ultimately leading to much improved overall customer experiences. Not all customers are going to need to know the exact time their package is going to arrive, but those that do will be more satisfied with delivery appointments — and likely willing to pay extra for it.
Upside of Having Delivery Appointments
Delivery appointment schedules don’t solely benefit your Cleveland warehousing or 3PL partner. Among the many benefits carriers and other customers:
- Better efficiency – reduced wait times for carriers. There’s less chance of trucks idling in the lot – wasting time and gas and potentially risking spoilage – if each truck arrives at its specified delivery appointment time.
- Heightened customer satisfaction. Delivery appointments allow businesses to meet customer expectations because they know exactly when packages will arrive. Being able to deliver convenience, efficiency and better delivery experiences is what is going to give many companies a competitive edge in the so-called “appointment economy.”
- Improved inventory management. For businesses that manage large inventories, delivery appointments can help maintain optimal stock levels. By scheduling deliveries, companies can ensure new inventory arrives just as existing stock is being depleted, lowering the risk of overstocks, stockouts and emergency shipments. This just-in-time inventory approach can be especially valuable in retail and manufacturing industries.
- Reduced costs. Again, time is money. The less time your load is spent waiting, the more you save on gas and labor. You can be more efficiently allocating those resources.
Our Cleveland 3PL Can Oversee Delivery Appointment Schedules
Although managing to get a delivery appointment scheduled may seem feasible in-house, there are advantages to trusting the job to a 3PL trucking /warehouse company.
Namely, we have the expertise and experience to ensure the process goes off without a hitch. We help clients coordinate delivery appointments, navigate complex supply chains and steer through unexpected changes.
Additionally, our team has already invested in the cutting-edge technology necessary to effectively manage logistics operations. These include warehouse management systems (WMS), transportation management systems (TMS) — which give us the capability of real-time tracking, route optimization, automated scheduling and inventory management. By leveraging these tools, we’re able to ensure delivery appointments are accurately scheduled and all parties have visibility into the status of their shipments.
As an established 3PL (with 4PL capabilities as well), we already have a sizable network of carriers, warehouses, distribution centers and streamlined routes that we can utilize to help us quickly coordinate deliveries, reduce transit times and ensure goods get delivered on schedule.
Whether you’re a retailer, manufacturer, e-commerce company or other type of operation, contracting with a 3PL helps ensure each Cleveland delivery appointment scheduled will be easy and accurate.
If you have questions about our Cleveland 3PL trucking and delivery appointments, give us a call at (440) 826-4630 or request a quote!
Additional Resources:
The Rise Of The Appointment Economy: The Last Mile Of Customer Engagement Will Be Scheduled, Optimized And Personalized, May 6, 2021, By Brian Solis, Forbes.com
More Blog Entries:
For Lower Cleveland Trucking Costs, Partner Up With a 3PL, July 15, 2024, Cleveland Trucking Company Blog
Cleveland 4PL Warehouse Can Minimize Impact of De Minimis Tax Reforms
Proposed reforms of a nearly 100-year-old U.S. tax law called the de minimis exemption have many e-commerce companies — including a number of American small businesses — concerned about potentially adverse impacts to their bottom line. As a longtime Cleveland 4PL warehouse and service provider, we make it our business to help your business navigate the complexities of global logistics. That includes potential rollbacks of de minimis protections.
What is the De Minimis Tax Exemption?
The de minimis tax exemption is found in Section 321 of the U.S. Tariff Act of 1930. It’s an unassuming, small provision, the phrase itself a Latin term for “the law does not concern itself with trifles.”
In principle, de minimis is intended to simplify international trade. It designates packages valued under a certain dollar amount (currently $800) void of duties and taxes. Legal experts opine the intention was more for individuals — say, if you came home from a cruise with a pricey bottle of Caribbean rum or Italian leather purse.
But the law has expanded over time, raising not only the dollar amount that’s covered but also the scope of what can be shipped duty-free. Direct-to-consumer shipments were already gaining popularity prior to 2020, but exploded amid the pandemic. Retailers can save millions of dollars using the de minimis exemption, and consumers get a pricing advantage as well.
The architects of the law almost certainly did not anticipate how much it would grow, particularly among commercial shippers. According to U.S. Customs and Border Protection (CBP) figures reported by Thomson Reuters, the CBP processed 1 billion de minimis shipments last year — a 53% increase compared to just one year earlier. As of mid-summer this year, the agency had already processed 705 million de minimis shipments. About one-third of those are large-scale operators like Temu, though a letter to Congress by the National Foreign Trade Council indicates it’s a critical fixture of the law for thousands of American small businesses.
De Minimis Concerns and Potential Reforms
Regulators have become concerned that there isn’t enough oversight, control or trade reciprocity with the way de minimis is currently handled. Some U.S. lawmakers and industries have said that the $800 (per person) threshold is being exploited, leading to revenue losses and uneven playing fields for domestic producers.
To address these concerns, lawmakers are considering reductions in the de minimis threshold. Reforms could also include tightening enforcement or imposing additional requirements on imported goods.
As a longtime Cleveland 4PL warehouse, we recognize that such changes could disrupt supply chains, increase costs and complicate the import process for businesses that rely on the current de minimis rules.
How a Cleveland 4PL Warehouse Can Help
If there’s anything we’ve learned in operating a successful 4PL warehouse, it’s that those in global commerce always to have a contingency plan. Because disruptions will happen — whether due to regulatory reforms or natural disaster or political strife.
In the face of potential reforms to the U.S. de minimis law, businesses might need to adapt their logistics strategies to maintain operational efficiency. A Cleveland 4PL warehouse can help with a number of tailored services and solutions.
Our 3PL Inventory Management Makes for More Streamlined Supply Chains
Competitive companies are increasingly trusting the care of products in between transit to 3PL inventory management partners.
Warehousing space isn’t cheap, and neither is the investment in optimized inventory management. According to the May 2024 National Industrial Report by Commercial Edge (a commercial real estate data analysis firm), Midwestern cities have the tightest industrial markets in the U.S. with the lowest available industrial space. That means even companies that might be inclined to handle warehousing in-house are going to have a tough time finding affordable space to do so.
By outsourcing critical warehousing services to third-party logistics providers, businesses get access to skilled labor, advanced technology systems, add-on services (coding, packing, repacking, kitting, labeling, etc.), and a strategic location for faster distribution.
At On Time Delivery & Warehouse, we have 90,000 square feet of secure warehouse space, plus 5 acres of outdoor storage. We have options for heated warehousing, FDA registered warehousing, customs bonded warehousing, a centralized examination station, and flexible options for daily, weekly, monthly, or yearly storage.
Our 3PL inventory management services include (but aren’t limited to):
- Product Coding & Repacking
- Contract Packaging & Repackaging
- Devanning
- Kitting & Assembly
- Labeling & Relabeling
- Transparent tracking & monitoring
- Crossdocking
- Distribution and fulfillment services
- Same day shipping
Customers who contract with us for 3PL inventory management at our Cleveland metro-area warehouse facility consistently report enhanced operational efficiency, cost savings, improved customer satisfaction — and less stress.
What is a 3PL Warehouse?
3PL is short for third-party logistics. A 3PL warehouse is a facility that’s operated by an outside logistics provider who offers a range of helpful services related to receiving, storing, handling and distributing goods.
3PL inventory management is one of those. It also usually involves fulfillment, transportation, and value-added services, like several of those listed above.
3PL Inventory Management Key Benefits
For Lower Cleveland Trucking Costs, Partner Up With a 3PL
The per-mile price of Cleveland trucking reached a record high last year, according to the American Transportation Research Institute.
Given that fuel costs actually went down, the trucking rate increases were mainly thanks to rises in insurance premiums (up about 12.5%) and driver compensation.
Big trucks are also more expensive than ever, and this industry isn’t any more immune to inflation than others. Equipment costs for trucks and trailers is up about 9%.
One silver lining: For the first time ever, driver safety bonuses (part of the driver pay calculation) eclipsed starting bonuses. Translation: We’ve got more experienced, safer drivers on the road as a whole, meaning fewer accidents, safer roads, and fewer supply chain disruptions.
Its also worth noting that the reported increases weren’t actually as hefty as the hikes we saw in previous years.
For example, although truck driver pay climbed by 7.6% last year, that was actually about half the increase as the year before, when it rose 15.5%. Driver compensation has seen double-digit upticks annually over the past few years – particularly truckers operating in the less-than-truckload / LTL sector (which rose 12% this past year). But the ATRI opines such increases are likely to level off within the next year or so.
Minimizing Your Cleveland Trucking Bill
There are more than 1.86 million companies in the U.S. with a tractor-trailer, straight truck, or hazmat truck. Of those, about 1.1 million are for hire, or what we call “motor carriers.”
Although $2.27 per mile is the highest trucking costs have ever been, that’s still a less than 1% increase. Not all trucking companies are equally impacted; it depends on their location, industry, fleet type, and services. But most have experienced it to an extent, and some of that inevitably get passed on.
Customers who need Cleveland trucking services to keep their supply chains moving may be wondering where they might find an offset.