3PL Cleveland trucking
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.
Like the national trucking industry, Cleveland trucking companies have been working to acclimate to rapid changes and significant challenges that have cropped up in recent years. Among these:
- Too much capacity (mostly added to the market in 2017 and 2018, followed by freight market slowing in 2019);
- Depressed spot rates and contract rates;
- Rising carrier costs (including insurance, equipment and driver wages);
- Higher demand for faster deliveries;
- Driver shortages;
- Increasingly stringent federal safety regulations (with more hours of service rules likely on the way).
Although some of this was actually good for shippers (lower spot and contract rates, for instance), the trucking industry saw a wave of bankruptcies (nearly 800, according to FreightWaves.com). While concerning, the upside of this is that national trucking overcapacity was reduced by about 24,000. This is why highway transportation experts at the recent National Industrial Transportation League summit expressed “cautious optimism” about 2020.