Transportation News

Is Expedited Shipping Enough to Combat Capacity Constraints?

With capacity constraints looming, the best way to truly guarantee happy customers with stocked shelves is to develop long term agreements with your carrier.

Expedited Shipping

“I’ll just expedite it.” Years ago, expedite shipping became a part of shippers everyday transportation planning and many companies still adopt this strategy today as their solution to combat capacity constraints.

But will this strategy sustain your supply chain through what analysts are forecasting as the largest capacity crunch the industry has ever seen.

The importance of expedite shipping has a lot to do with customer satisfaction. It’s difficult to put a price on losing a customer because a product didn't arrive in time.

In an article for Inbound Logistics, a leader from a supply chain software solutions company explained how the customer experience takes top priority in the food chain industry.

What would happen if a customer orders at a burger chain that has run out of buns? That customer is not likely to return and even worse, he’s more likely to spread the word to their friends and colleagues about the absence of buns. The cost of losing a customer for life is enormous. Ultimately, food chains will pay the cost of expedited freight to protect the customer experience.

Does the same hold true for your customers? In your industry? Hamburger buns may not be a product in your supply chain, but how important is the customer experience to your bottom line?

Thanks to Amazon and other big box stores, consumers have gotten used to the idea that they can order a product and have it delivered from the store to their home the same day.

Expedite shipping is the answer to unexpected events such as weather and customer demands. Once considered primarily for service recovery operations in manufacturing, expedited shipping has evolved into a key part of the logistics toolkit to keep customers happy, and prevent empty shelves and production delays.

The U.S. economy kicked up a gear in May and the trucking industry is typically affected first by such economic changes. Will there be room on your carrier’s truck for your freight? Has price taken a back seat to reliability and capacity?

Shippers can order an expedite every week when the urgent need calls for it, but if there's no truck to haul it, your expedite is just a signature on a paper. With capacity constraints looming, the best way to truly guarantee happy customers with stocked shelves is to develop long term agreements with your carrier. Guarantee your product on their truck and they will guarantee the space and delivery service.

Related: Beyond the Transportation & Logistics Capacity Crunch

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Article Topics
Best Practices   Transportation   Transportation Management   Less-than-Truckload   Shipping   All topics


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