Recently I was playing golf with a close friend Peter, who also happens to be a very capable, talented and insightful COO with very strong expertise in logistics and supply chain issues.
Periodically, I will check in with Peter as a way of validating what is happening in the transportation market at any given time. As we were talking about the conditions in this Code Red transportation marketplace, Peter offered some advice for our Two Minute Warning audience: “Tell them to get their Christmas shopping done early!”
While Peter and I laughed, the reason for his advice was straightforward. With inventories very low, big box retailers reporting relatively high “Out of Stock” numbers, and companies reporting very high and extended delivery times, consumers may find it difficult to get the items they want when they want it. For example, last month we ordered some furniture for our basement. Nothing fancy but they told us it would be late January, 2022 before it arrives.
An increasing number of companies are finding their supply chains are operating under duress. And that is why we have been working overtime to provide you with content and resources to support you as you to plan for a potentially even busier fall.
To bring you up to date on what's happening in the industry, last week we brought attention to the surprise peak season surcharges from FedEx that are going into effect on June 21.
In past weeks we’ve covered what’s happening in the ocean sector during an in-depth interview with Peter Tirschwell, trends in the Truckload spot market with Brent Hutto, and tips for managing LTL with Mitch MacDonald and Doug Culbertson.
The continued chaos in the logistics market underscores the need to have a comprehensive plan to manage all your shipping activity. To get started, you can use our eBook: How to Create a Transportation Spend Management Plan.
Another way to reevaluate your shipping activity is to take advantage of our Rapid Assessment process in which we help analyze your current state, define your ideal state, and create a roadmap for getting there.
We could go on and on so let me cut to the chase. Almost all of these resources are free – it won’t cost you a dime and it may prove to be valuable in helping your company control your transportation costs or improve your supply chain processes. This information is like a parachute - it only works when these articles, interviews and resources are opened.
And after checking out these resources, may we make another suggestion: Don’t be afraid to reach out with your questions or concerns about how your company will be impacted by these Code Red conditions in the transportation marketplace. As I note in many of my talks: “Even the Lone Ranger had Tonto.”
So don’t wait for November or December to get your shopping done, and don’t wait to get those spiraling freight costs under control since there are no signs of slow down in the near future as Code Red conditions are likely to continue for the remainder of the year!
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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