Changes in trucking and transportation are creating new challenges for manufacturers. In this Supply Chain Byte, Lisa Anderson discusses why freight rates are increasing, including rising demand, contracting supply, the loss of smaller trucking companies during recessionary periods and ongoing driver shortages. These shifts can create pressure on cost, capacity and service levels.
The key is to think ahead. Manufacturers should evaluate demand and supply, review transportation options, and consider alternate modes such as rail or different ocean freight routing strategies. The goal is to build a supply chain that is resilient, predictable and profitable. Watch the Supply Chain Byte and then review the key takeaways below.
Key Takeaways
- Trucking and transportation conditions are changing
- Freight rates are increasing as demand rises and supply contracts
- Smaller trucking companies exited the market during slower periods
- Driver shortages continue to affect capacity
- Manufacturers should plan ahead by evaluating demand, supply and transportation options
- Alternate modes, such as rail or revised ocean freight routes, may help improve resilience
- The goal is a more resilient, predictable and profitable supply chain
Connect with LMA Consulting Group to evaluate your demand and supply strategy, strengthen planning and build a more resilient supply chain.
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