Truck driver benefits and wages are ballooning across the U.S., even as freight-hauling capacity has diminished in the face of ever-higher demand. In turn, small businesses (especially retailers and distributors) are saddled with soaring shipping charges, an expense that’s proven crippling for some. Truckers deserve good wages for the vital job they do. But businesses hoping to stay afloat would be best-served with a Cleveland 3PL partnership to help keep costs in check.
The American Trucking Associations group, representing owners of fleets, reports annual trucker salaries climbed 15-to-18 percent in the last four years, with the exact rise varying based on the nature of fleets and routes. Overall, private fleet driver salaries topped $86,000 last year – a $13,000 increase from just four years prior. A truckload driver on irregular national route (basically an entry-level post) can now expect to pull in about $53,000 – up from $46,000 just a few years ago. This trend is not braking anytime soon, The Wall Street Journal reports, because the demand for trucking is higher than ever and companies are increasingly counting on freights with full truckload and less-than-truckload capacity to ensure consumer expectations are met.
One silver lining for our clients is trucker turnover is down, meaning those on the road are increasingly more experienced – and that’s a very good thing in terms of reducing roadway liability.
Some elements of this higher-cost transportation landscape simply can’t be avoided. Even with higher pay drawing in more drivers, there are still only so many truck drivers, so many trucks and so much space. As a trusted Cleveland 3PL, On Time Delivery and Warehouse leaders work to help minimize this impact for our customers. To augment reliability and consistently meet demands of this new standard “get-it-there-sooner” market, we must offer competitive truck driver compensation. We must supply them with the best equipment, as well as advanced transportation management software to ensure efficiency. But we also work to help clients sift through an expanse of carrier options to pinpoint the best choice. We identify and bridge supply chain gaps that bleed businesses of time and money. We offer transparency so clients can track their goods at every leg of the journey.
The U.S. truck capacity shortage is putting a serious kink in supply chains across the country. The trucking industry is saddled with increasingly stringent regulations, dwindling drive time hours and fewer drivers entering a field that’s already understaffed. Economic growth – while certainly a good thing – has compounded the capacity issue, and it isn’t likely to wane anytime soon. Getting ahead by partnering with a reputable 3PL provider in your region will improve your supply chain transparency and lower your costs long-term.
No industry is untouched by the truck capacity deficit because virtually all businesses – large and small – rely on efficient trucking to keep goods flowing – intact, on budget and on time.
A top-tier Cleveland 3PL provider like On Time Delivery & Warehouse can help mollify your truck capacity troubles by addressing inefficiencies and performance gaps in your supply chain. These weaknesses will have an increasingly profound effect on productivity and profits in the current climate unless you tackle them head-on. Most companies need help to do it right.
In our increasingly global economy, intermodal shipping and effective supply chain management is essential. Staying ahead of competitive pressures and keeping pace with growing customer demand has meant businesses of all sizes are discovering greater opportunities by going global.
When you want to optimize profits, sourcing from regions with the lowest costs for procurement, assembly and manufacturing makes sense. So too does commercializing your products in areas with high demand.
However, it’s not without risk. Global supply chains with intermodal shipping (some combination of air, sea, truck and rail) are inherently more complex. Anytime there is the flow of goods, services, information and payments across international boundaries, business leaders must be sure there is skilled coordination of these efforts. This is where a Cleveland intermodal shipping and 3PL service like On Time Delivery & Warehouse proves especially beneficial.
Managing the global supply chain in-house is too often more trouble than it’s worth, even under ideal conditions. Throw in a natural disaster, political unrest or fluctuating oil prices, and companies quickly become overwhelmed scrambling for alternatives. Contracting with an experienced 3PL that has a comprehensive risk management strategy already mapped helps largely alleviate your headaches.
The best inventory management systems go beyond just tracking products and materials.
Basic warehousing involves overseeing the storage, outflow and receipt of your goods. But even first-rate businesses find it daunting to do so on their own with perfect accuracy. Working with a dedicated Cleveland 3PL warehousing partner can help you meet customer demand and overcome the accuracy and logistical snags that too often trip up otherwise competent companies.
Many Businesses Struggle With Good Inventory Management
A few years ago, researchers at Harvard Business School looked closely at the inaccuracy of inventory management systems. In an empirical analysis of more than 370,000 inventory records at 37 stores managed by one retailer, study authors discovered a stunning 65 percent of inventory records were inaccurate. The study, published by the journal Management Science, identified the top means of streamlining inventory management and reducing errors. These included regular auditing practices and use of cutting-edge inventory software programs that offered real-time monitoring.
The 3PL warehousing and inventory management services offered by On Time Delivery & Warehouse in Cleveland give you these options and more. By having a third party supervise your inventory management and supply chain distribution, you can focus on business development and other critical operation and growth initiatives.
E-commerce is a rapidly-advancing supply chain frontier, driving demand for well-placed public warehousing in Northeast Ohio. But simply providing empty space isn’t enough for many businesses. Effective third-party logistics (3PL) involves a trifecta of quality warehousing, shipping and fulfillment – and it all must be done from a strategically advantageous location.
3PL warehousing and distribution itself isn’t new. It’s a cornerstone business strategy that can streamline the flow of goods through the supply chain by helping you control costs, limit over-stocked inventory and arrange timely transportation. Whether you’re a small start-up company staking a presence or a large firm intent on seizing ripe opportunity in a new area, 3PL warehousing at On Time Delivery & Warehouse offers desirable options for smart scaling of your operations in Cleveland and beyond.
Our 3PL warehousing experts recognize the complexity of fluctuating logistics and will work to help you tailor a public warehousing and distribution plan that fits. Although many companies initially seek public warehousing as a short-term solution, these arrangements often turn into long-term relationships for On Time Delivery & Warehouse. Businesses find our 3PL warehousing and distribution services are not only convenient but key to their ongoing competitive edge.
The market for third-party logistics (3PL, or sometimes TPL) in Cleveland and globally is on an upswing, according to recent analysis by researchers at TechNavio.
For those unfamiliar, third-party logistics and supply chain management is when companies use third-party businesses, like On Time Delivery & Warehouse, to outsource elements of distribution and fulfillment services. A wide range of industries benefit from having a third party involved in the logistics process, which helps reduce cycle times and inventories, lower cost and bolster customer service.
The more companies discovering the profitability of hiring a 3PL, the faster the industry and demand grows. Ohio is considered a prime route for 3PL because of its central Midwest location and easy highway access.
At On Time Delivery & Warehouse (OTDW), our Cleveland 3PL is at the forefront of this growth trend, offering business-to-business operations a reliable means to meet rising consumer demand. We’re not just any Cleveland trucking company or warehouse provider. We pride ourselves on fast, efficient distribution and transloading freight operations. Clients trust us to quickly and carefully load, unload, store and ship their materials and ensure customers receive them punctually and in excellent condition.