Blog
Truck Talk: Communication is Key in Cleveland Drayage Trucking
Drayage trucking is something of an unsung hero when it comes to logistics. It doesn’t get a lot of glory, but it plays a crucial role in getting your goods where they need to go – primarily between ports, terminals, and distribution centers. As Cleveland drayage trucking providers, we are increasingly prioritizing better communication and visibility in the drayage process – which in turn helps our clients sidestep supply chain bottlenecks, minimize delays and costs, and boost their bottom line.
What is Cleveland Drayage Trucking?
Drayage trucking is typically one of the shortest links in the supply chain, but it can be one of the most pivotal in terms of keeping freight moving intact and on time.
For anyone unfamiliar, drayage is a term we use in shipping and logistics to describe the process of transporting cargo / containerized goods between short-distance connectors in the same metro area – typically between ports, terminals, rail yards, warehouses, and other distribution points – typically using trucks or vans.
You may have also heard the term “intermodal drayage.” This refers to transporting cargo by more than one mode of transportation (rail, sea, truck, air, etc.). Our Cleveland drayage trucking services help customers with cargo from multiple modes, including Cleveland Airport (TSA certified), CSX rail, Norfolk Southern, Cleveland Hopkins Airport, and various domestic and international ports.
Huge operations may handle their own Cleveland drayage trucking – with their own fleet, their own drivers, their own proprietary technology, and their own oversight. But most companies don’t have that capacity – or would simply prefer to have it handled by a 3PL or 4PL.
Common drayage customers include:
- Importers and exporters
- Freight forwarders and logistics providers
- Shipping lines and ocean carriers
- Retailers and manufacturers
- Port authorities and terminal operators
On average, drayage cost can account for anywhere between 22% to 44% of the total door-to-door service. It’s usually not the most expensive element of transport (that’s final mile delivery) but it’s still significant – and worthy of more careful planning when possible. Without efficient drayage services, facilitating the movement of goods from ports to their inland destinations (and visa versa) would be a nightmare.
Customers count on fast, professional drayage services – especially when they’ve got time-sensitive orders and goods that can potentially spoil. But it’s not as simple as just picking up goods from one place and taking them to another. Efficient Cleveland drayage trucking can get pretty complex because it requires coordination among truck owners, truck drivers, shippers, consignees, port authorities, and terminal operators. When this goes sideways, it can lead to major backups and bottlenecks – which are then felt downstream throughout the chain of supply.
Improving Cleveland Drayage Trucking Communication
One of the things the pandemic really drove home was how largely decentralized and fragmented the trucking industry is as a whole. Drayage is no exception.
There are operators of all sizes and specialties, many using their own tracking platforms of varying quality and few prioritizing overall connectivity for smoother coordination.
A number of studies recently, including an analysis published in the International Journal of Production Economics, illustrated how complicated it can be to coordinate all of this efficiently. Some ports have begun setting drayage truck appointment windows. That can help keep things moving, but it does put pressure on drayage trucking companies to make certain they meet that deadline. That makes effective communication even more critical.
Recently, the Journal of Commerce spotlighted growing efforts and investments aimed at changing this – moving away from spreadsheets into more comprehensive software designed specifically for building better drayage routes, schedules, and stakeholder networks.
“Ports are a bottleneck for so many operations,” explained Michael Mecca, CEO of PortPro, a drayage communication tech company, in an interview with JOC. “But there is opportunity in drayage to reduce those bottlenecks because it’s a node of the supply chain that’s connected to almost all others. Improve the connectivity and communication at that first mile in drayage, and you improve the overall global supply chain.”
On Time Delivery & Warehouse offers streamlined, transparent Cleveland drayage services that prioritizes communication, visibility, safety, timeliness, and all the proper documentation (PODs, invoices, points of scale, etc.- so you have confidence that your container is on the most efficient route to where it needs to go.
For information on our Cleveland OH drayage trucking services, contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Optimization of drayage operations with time-window constraints, June 2016, International Journal of Production Economics
More Blog Entries:
Need a Lift? Advantages of Cleveland Trucking With Liftgate Services, Jan. 15, 2024, On Time Delivery & Warehouse Trucking blog
JOC: 3PLs are Key to Supply Chain Visibility for Ocean Shippers
Smooth supply chains are no happy accident. They require meticulous forecasting, monitoring, adjustment, and communication. Basic tracking won’t cut it if you want to stay competitive, especially if you’re counting on efficiently moving international ocean shipments. It’s a big job, though. Rather than wear that hat themselves, shippers are increasingly entrusting these duties to 3pls (third-party logistics providers).
Shippers need to be able to monitor not just the location of goods throughout the supply chain, but also the status, condition, delays, and arrival time – at ports, CFS stations, on trucks, in warehouses, and last-mile delivery.
Operators of successful Ohio 3pls will tell you they’re in the best position to provide end-to-end visibility data because they already use it in daily operations. 3PL and 4PL providers are always up-to-date on the best visibility technology – as well as the skilled workers needed to operate it. Accurate visibility does more than tell you where something is. Over time and done well, it can yield important data detailing key performance indicators (KPIs) – such as perfect order, cash to cash cycle time, customer order cycle time, fill rate, inventory days of supply, freight bill accuracy, days sales outstanding, inventory turnover, and gross margin return on investment. These operational insights can then be strategically leveraged to make tangible changes that can help improve:
- Customer service and communication
- Carrier accountability
- Minimizing weak links
- Idling time and emissions
- Overall supply chain function
Don’t just take our word for it. The Journal of Commerce reported recently that shippers are increasingly eschewing investment internally-operated high-tech applications for supply chain visibility. Instead, they’re tapping 3PLs to do it.
To be done right, supply chain visibility and data has got to be an ongoing top priority – never a one-and-done solution. For a lot of companies, that’s too much direct spending on something that’s outside the scope of regular operations. By turning to 3PLs and 4PLs that bundle shipping visibility into their broader services, shippers can get that essential visibility without having to shoulder all that responsibility themselves.
How Ohio 3PLs & 4PLs Can Enhance Shipper Visibility
Ohio 3PL and 4PL service providers are able to enhance shipper visibility for clients through the use of advanced technologies, streamlined processes, and strategic partnerships.
How 2 Know 4 Sure You Need 4PL Warehouse Logistics Services
Modern warehousing in the United States is no longer simply about a secure place to store your stuff. That’s important too, of course. But increasingly, businesses are looking for warehouses also capable of offering highly-competent and comprehensive logistics services. Exact preferences hinge on specific customer needs, but many are opting for a 4pl warehouse partner who provides the whole package: Expert logistics strategists skilled at successful integration, oversight and management of an entire supply chain.
4pl warehousing is more involved than a 3pl warehouse, the latter of which offers add-on services like inventory management, consolidation, kitting, crating, picking, packing and transportation – but is not actively involved in overseeing a company’s entire supply chain.
As a Cleveland 4pl warehouse partner, On Time Delivery & Warehouse takes the lead on logistics. We handle all the activities and services of a typical 3pl warehouse – then go the extra mile to give customers strategic insight and direction to optimize supply chain operations. Our logistics teams keep a close eye on efficiencies and inefficiencies, flag slowdowns and bottlenecks, identify patterns in demand surges, and pinpoint optimal modes, routes, and carriers to ensure goods get from A to Z – intact, on time, every time.
4PL Warehouse Service Demand Surge
One analysis by DataHorrizon put the 4pl warehouse and logistics market size at around $63 billion as of 2022 – a figure that is expected to double by 2032. Reasons for this anticipated rapid growth are largely rooted in the reality that to effectively leverage complex global supply chains for maximum cost benefit and time efficiency (particularly in light of consumers’ rigid expectations for fast shipping), companies must prioritize logistics.
Evolving technology is driving a lot of innovation on this front. The most in-demand 4pl warehouses are those investing in transportation management systems, warehouse management systems, and enterprise resource planning systems.
Looking for a Local Delivery Company? Inquire About These Key Qualities.
Outsourcing last-mile deliveries to a local delivery company has become increasingly common in many industries, given both the importance and complications known to arise in the last leg of the journey.
A recent analysis by McKinsey revealed nearly half of consumers would abandon an online shopping card if shipping times were longer than expected. Expectations of expedience have only grown more stringent in recent years, and there’s much at stake: E-commerce sales recently topped $1 trillion globally for the first time ever.
At the same time, building and scaling local delivery is a daunting prospect – especially if it’s not your expertise. Some of the ongoing responsibilities include: Buying/renting delivery vehicles, hiring and supervising qualified drivers, fleet maintenance, safety checks, route optimization, etc. These tasks are never one-and-done. It’s not realistic for a lot of companies, which is why so many opt for outsourcing.
Examples of businesses/industries that rely heavily on high-quality local delivery services:
- Retail businesses
- E-commerce companies
- Restaurants and food distributors
- Medical facilities
- Manufacturers and suppliers
As a longtime Cleveland local delivery company, we know this isn’t the place to cut corners (not if you want to keep customers). Deliveries need to arrive intact, on time, every time. Hiring a reputable local delivery company with reasonable rates is the best way to achieve that.
Choosing the Best Local Delivery Company
Final Mile Delivery in Ohio – Getting a Leg Up on the Last Leg
Final mile delivery is widely recognized as the most challenging link in the most supply chains. Factors like time sensitivity, complex delivery routes and customer expectations for quick service mean there’s a lot of room for something to go sideways. Relying on a trusted third party for final mile delivery in Ohio can help save businesses time, money and the fallout of customer dissatisfaction.
Also known as last-mile delivery, final mile delivery refers to the transportation and delivery of goods from a distribution center or warehouse to the end destination – usually a residential or commercial address where customers receive the shipment.
Increasingly, consumers expect delivery to be fast and cheap (if not free) – especially those using ecommerce platforms. Some surveys have shown consumers will go out of their way to avoid a retailer after just one poor delivery experience. On the flip side, 75% are willing to spend a bit more and show more brand loyalty if they’ve had an excellent final mile delivery experience.
Getting it right is critical for retailers, logistics companies, manufacturers and others to stay competitive.
Market researcher RationalStat reported the global final mile delivery market is expected to grow from $80 billion to $138 billion by 2030. Key market drivers include e-commerce expansion, shifting customer expectations and technology advances.
On Time Delivery & Warehouse is committed to superior service for final mile delivery in Ohio. We have 54′ and 48′ trailers, 24′ and 26′ box trucks and flatbeds, and offer same day and next-day delivery with full truckload and less-than-truckload.
Addressing the Final Mile Delivery Problem
You may have heard of the “final mile delivery problem” or “last-mile delivery problem.” It refers to the difficulty of squaring climbing customer expectations for expeditious deliveries with the reality that the last leg of the journey – whether it’s a few miles or a few blocks – is often fraught with bottlenecks and roadblocks (sometimes literally).
As explained recently by Forbes, a product can be designed and manufactured in Asia, shipped all the way across the Pacific Ocean, be loaded on a truck and driven to a Midwest warehouse. And all of that will cost roughly the same as the last mile delivery – just getting the product from that warehouse to its final destination on the customer’s doorstep.
Keep in mind: Last-mile delivery isn’t just a single action. It’s a series of steps, and all of them have to go off without a hitch in short order for successful delivery.
Ways a Customs Bonded Warehouse Boosts Your Company’s Bottom Line
If international imports are central to your operation, using a customs bonded warehouse may be key to your supply chain efficiency.
Successful navigating global logistics requires effective coordination of numerous components: Transportation, warehousing, inventory management, etc. In that context, a bonded warehouse can be an ideal means to cost-effectively store imports closer to the final destination for extended periods of time while also maintaining compliance with the maze of legal and regulatory requirements for such goods.
As noted by U.S. Customs and Border Protection, companies that move large volumes of imports (particularly those subject to customs duty tax) in a secure site – where it can be stored, manipulated and undergo manufacturing) – without payment for up to 5 years. Liability is transferred to the warehouse proprietor, who guarantees the goods will be stored securely and appropriately until cleared by customs for release.
Federal regulations for bonded warehouses are outlined in Title 19, U.S.C. section 1555 and 19 CFR 19, which includes details on the 11 different classifications for bonded warehouses. Businesses shopping for a Cleveland bonded warehouse may have several options of bonded warehouse providers, depending on their volume, special storage requirements, and last-mile delivery locations.
Probably the most common are public bonded warehouses, which are used exclusively for storage of imported merchandise, and bonded warehouses utilized for cleaning, sorting, repacking, etc. Other types include privately-owned bonded warehouses (all goods in the facility belong to the warehouse owner), bonded yards or sheds (used for storing heavier, bulkier imports), bonded warehouses for manufacture in bond (mostly for exported goods made in whole or in part of imported materials), and bonded warehouses set up for smelting and refining imported metal materials.
Shield Against Supply Chain Disruptions
A primary feature of customs bonded warehousing is that it defers duty tax payments on imported goods for up to five years. Products can be stored, manufactured and manipulated while at the facility, but the shipper doesn’t pay duties until they are ready to be shipped out for delivery. For a company that ships sizable volume, the ability to hold off on paying duty taxes until goods actually sell and are ready to be shipped out can insulate businesses from sudden market swings and dips. By strategically controlling stock levels in this way, companies can protect themselves from the brunt of supply chain volatility impacts.
Perfect example: The pandemic. Dramatic demand shifts led to major bottlenecks and high inflation for all kinds of goods. Certain goods (luxury, for instance) saw a sharp drop in demand, but manufacturers and distributors didn’t want to lose out on supplier contracts. By utilizing bonded warehouse facilities to store excess stock without the need for immediate duty payments, lot of operations were able stay afloat until demand bounced back.
Potential tax savings is another upside for many bonded warehouse clients. Duty taxes on bonded warehouse items don’t have to be paid upfront. They only pay when items are released. If the import tax has been lowered during storage, the company gets to take advantage of the lower rate.
Furthermore, if demand stagnates long-term, bonded warehouse users can export goods elsewhere without paying any duties.
Checklist When Comparing Warehouses in Cleveland, Ohio
Warehouses are more than central storage locations. They can be essential for safeguarding your goods, monitoring your inventory, labeling and kitting your products, facilitating smart logistics, and ensuing intact, on-time deliveries. But all companies have differing (sometimes very specific) warehousing needs – perhaps ones that they don’t even fully understand. So when exploring options for warehouses in Cleveland, Ohio, it’s important to carefully weigh whether the facility aligns with your operational requirements, growth strategy, budget, and overall supply chain efficiency.
Rising Warehouse Demands
Warehousing in the U.S. has grown exponentially in the last two decades. As noted in research published in the Journal of Transport Geography, the number of warehouse workers went from about 120,000 in 1998 to more than 800,000 by 2015 – an increase of nearly 580%.
This growth has continued in the years since, driven by the accelerated growth of e-commerce, which spiked nearly 40 percent between 2019 and 2021, according to Forbes. It slowed a bit in 2023, but the American Journal of Transportation reports warehouse construction is expected to climb again in 2024, thanks in part to heightened demand for just-in-time deliveries.
That means businesses will have more options. Being more highly selective can help boost your bottom line and operational efficiency.
Warehouses in Cleveland Ohio – and the rest of the country – serve as pivotal points within supply chains. Contracts continue to include more specialized services, with advancing automation and customized add-ons like distribution and fulfillment, product coding and repacking, kitting, cross-docking, CES (Centralized Examination Station), and bills of lading preparation.
Must-Haves for Warehouses in Cleveland Ohio
To make an informed choice about warehouses in Cleveland Ohio, it’s a good idea to do more than simply get a quote. That’s the first step, of course. But consider also engaging potential providers on the phone or in-person. Gather detailed information on their operations and maybe even schedule an on-site visit.
Some key considerations to get you started:
Need a Lift? Advantages of Cleveland Trucking With Liftgate Services
Incorporating liftgate services into Cleveland trucking logistics is a leg-up for customers who need extra assistance with loading an unloading – particularly with goods that are heavy, oversized, or can’t be easily manually handled.
Liftgate delivery is an add-on service offered by Cleveland trucking companies and other freight carriers to pick up and delivery freight. It involves the use of a hydraulic lift (i.e., the liftgate) that’s installed on the back end of a truck. It lifts packages and other material goods from ground level to truck level and back. Most are stowed beneath the rear of the vehicle when not in use, allowing for full access to the rear door when they’re folded up.
You may have heard from long-time business owners that liftgates can be a pain. In the past, it’s true that many were plagued with constant maintenance and power issues. But such problems have become largely non-existent as technology has improved.
Liftgates can allow for lifting heavier loads than ramps. They also tend to be safer and more efficient for drivers to operate. Ramps can be great for a truckload of light cargo, particularly at locations with a loading dock. But for with anything heavier or outside of a loading dock area, a liftgate is the easy choice. Unlike ramps that need to be manually dragged out and lifted back up, liftgates are operated with the touch of a button. Liftgates also only need about 5 feet of space behind them, whereas ramps require about 15 feet of clearance.
Many small-scale businesses, particularly those that require delivery to residential destinations, don’t have a docking service for safe loading and unloading of freight. It’s also ideal for commercial and construction sites or any other location where there is no loading dock availability. If the load weighs 150+ pounds and there’s no other equipment for loading/unloading, you need a liftgate for your Cleveland truck deliveries.
Cost-Benefit of Liftgate Delivery With Cleveland Trucking
Liftgate delivery services will come with a higher price tag. But for those who need it, liftgate services can actually provide cost savings. Among these:
- Injury prevention. Lifting heavy loads or materials without the proper equipment and technique can lead to serious workplace injuries. Employers and deliveries are adversely impacted by this as well. With liftgate services, you protect your people and your freight.
- Lower labor costs. Proper lifting of heavy or awkward-sized loads sometimes requires more than one worker. A truck equipped with a liftgate can reduce the number of workers needed to safely move your packages.
- Driver retention. Going up and down a ramp multiple times with a sizable load – even with a dolly – can wreck havoc on the knees, joints, and back. Drivers may be more likely to take a job – and stay on it – if the truck they’re operating uses a liftgate.
- Damage avoidance. Freight that isn’t loaded/unloaded with care by your Cleveland trucking service has a greater potential to be damaged. Loss of damaged goods – and the delays and costs associated with a whole new delivery – often far outweigh the add-on cost of liftgate deliveries.
- Expanded delivery options. When you are limited to delivery destinations with loading docks or other infrastructure designed for smooth freight handling, you might miss out on faster, more efficient delivery routes.
- Versatility in freight handling. If you have large or oddly-shaped deliveries, you may be limited in your Cleveland trucking service options unless you secure one with a liftgate.
- Improved customer satisfaction. Shippers offering last-mile delivery are often able to reach more customers, safely bringing goods direct to their door, when they’re using a truck with a liftgate.
Liftgates can last up to 10 years, but they may require quarterly maintenance (or every 3,000 cycles), though it’s generally minimal if you kept up with. By working with a dedicated Cleveland trucking service with a lift-gate delivery as an add-on, you get all the benefits while leaving the purchase, maintenance, training, and labor to us.
For information on our Cleveland OH trucking services, contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
Liftgates Versus Ramps, Fleets Focus on Easing Driver Workload, Preventing Injury, Sept. 21, 2018, Transport Topics
More Blog Entries:
3PL Trucking Companies in Ohio Invest Heavily in Safety, Risk Avoidance, Dec. 29, 2023, Cleveland Trucking Company Blog
3PL Trucking Companies in Ohio Invest Heavily in Safety, Risk Avoidance
As substantially as societies rely on trucking, it remains a risk-prone industry. Constant concern about driver safety and retention, adverse weather, poor road conditions, vehicle breakdowns and cargo theft means 3PL (third-party logistics) trucking companies in Ohio must not only adhere to strict federal operating guidelines but also continually invest in safety. According to a recent analysis by the American Trucking Associations, that’s exactly what they’re doing.
A new ATA study shows the trucking industry invests $14 billion every single year in training, technology, and other initiatives aimed specifically at highway safety.
“Risk avoidance in trucking has been an ongoing discussion, but trucking companies in Ohio are actually putting their money where their mouth is,” On Time Delivery & Warehouse CEO Anthony Figliano said. “We’re doing the work every day, but also investing in long-term initiatives that not only secure our client’s shipments, but ultimately make the roads safer.”
The ATA analysis indicated the $14 billion safety initiative expenditures in 2022 was 40% higher than the last time the survey of fleet owners and truck carriers of all sizes was conducted seven years earlier. Such numbers are reflective of the fact that the industry is going above and beyond mere regulatory compliance investments.
Third-party logistics trucking companies in Ohio are paying for things like:
- Additional training for all drivers, not just the novices.
- Safer driving practice incentives.
- The latest technologies that track trucker driving schedules and behaviors and boost crash avoidance.
- Safety-related fleet maintenance.
There are nearly 14 million large trucks in the U.S., representing 5% of all registered motor vehicles but responsible for moving nearly two-thirds of the country’s freight. As of this spring, there were 750,000 motor carriers in the U.S. employing some 8.4 million people (excluding those who are self-employed).
Working With Trucking Companies in Ohio That Prioritize Safety
Safe trucking practices don’t “just happen.” They’re part of an intentional, strategic effort. Given the scope of such efforts, many shippers conclude it’s easier and more effective (generally and cost-wise) to outsource trucking services to a third-party – particularly one that also provides logistics support.
At On Time Delivery & Warehouse, our safety investments include:
- Fleet safety tech The fleet itself can be armored with tech like lane departure warning devices, collision avoidance systems, and telematics. We can glean real-time data not only on vehicle performance but driver data. Shippers in turn get greater transparency on the condition and location of their shipment. This tech, combined with the expertise of our logistics teams, can minimize the risk of risk delays and cargo damage.
- Driver education & training. Truck drivers must meet certain aptitude requirements before they’re even allowed on the road. But top trucking companies in Ohio view driver education as a continuous process. Ongoing education courses can help boost driver skills and awareness. Research shows continuing driver education contributes to fewer accidents, less cargo damage, greater adherence to safety regulations, and better on-time delivery track records.
- Safety compliance. Standards set by the Federal Motor Carrier Safety Administration (FMCSA) aren’t mere suggestions. Trucking carriers must abide hours-of-service regulations and regular schedules for vehicle inspections and maintenance. Working with 3PL trucking carriers gives shippers peace of mind that transport of their goods meets all the legal requirements, and thus they’re less likely to face regulatory-related fines and delays.
- Load securement apparatus. Proper cargo loading is one of those things that requires time, labor, training, and the right tools, such as tie-downs and straps. This minimizes the odds of damage during transit.
- A plan for the unplanned. Anyone in logistics knows expecting the unexpected is an imperative. Warehouse bottlenecks, highway traffic jams, sudden adverse weather conditions, vehicle breakdowns – any of these are possible. Ohio trucking companies with logistics capabilities can help minimize the impact of unforeseen problems. In addition to emergency protocol, we have contingency plans and alternate routes already mapped. And customers can see our maneuvering in real time.
By partnering with a 3PL trucking company that prioritizes safety above and beyond regulatory compliance, shipping companies can maximize efficiency, protect their goods, and improve customer satisfaction with intact, on-time deliveries.
For information on our Cleveland third-party logistics, warehousing, CFS freight, intermodal transportation and trucking services, contact On Time Delivery & Warehouse by calling (440) 826-4630 or send us an email.
Additional Resources:
New Study Underlines Trucking Industry’s Commitment to Safety, Dec. 11, 2023, American Trucking Associations
More Blog Entries:
Leveraging 3PL Intermodal Shipping to Offset Cleveland Trucking Costs, Nov. 15, 2023, Ohio Trucking Company Blog
How a Cleveland 3PL Warehouse Can Help With Onshoring & Nearshoring
Reducing risk and improving resiliency of supply chains is always a priority for many companies. This was true even before the pandemic, but pressure from numerous high-profile wars, inflation costs, and natural disaster disruptions has companies placing supply chain streamlining at the top of the list. Increasingly, doing so includes strategies like “onshoring,” “nearshoring,” “reshoring,” and “friendshoring” – all things an established Cleveland 3PL warehouse can help with.
Defining Shifting Supply Chain Strategies
To understand why businesses are increasingly shifting their supply chain strategies, we first need to know what each of those different strategies entail.
1. Onshoring
Onshoring is when a business – or elements of the business operation – are positioned in one’s home country in order to reduce costs.
Although companies choose to offshore certain aspects of their operations for a number of reasons (mainly, cost), offshoring also involves a fair amount of risk. In general, the farther away your manufacturers and other supply chain partners, the higher the chance that there will be some disruption that could lead to delays, lost product, etc.
Motivations for onshoring include incentive to support local economies, better quality control, lower lead times, and enhanced communication/collaboration.
Similar to onshoring is “reshoring.” This involves relocating certain aspects of your supply chain back to your home country from another.
2. Nearshoring
Nearshoring involves relocating certain aspects of one’s business operations to a closer or neighboring country from one that’s farther away. The general idea is that closer geographical proximity is better in the long-run to minimize logistical challenges, such as language barriers and different time zones.
Similar to onshoring, nearshoring can reduce transportation cost, minimize lead times, and improve coordination between supply chain partners.
3. Friendshoring
This term/practice isn’t as widely used as onshoring and nearshoring, but it’s basically the practice of partnering with suppliers, service providers, and others with a strong reputation for reliability and trustworthiness. A dedicated Cleveland 3PL warehouse can help you achieve this, whether your supply chain partners are across the sea or down the street.
The Shift Toward Onshoring, Nearshoring, Reshoring, and Friendshoring
As noted in a recent analysis by Supply Chain Dive, there are a number of catalysts that have been U.S. supply chain trends in the direction of these strategies.
Among these: