BY MIKE REGAN, CO-FOUNDER OF TRANZACT
Warning: Extreme turbulence in the marketplace!
Yes, the Coronavirus has created quite a bit of volatility in the transportation sector, and it's affecting how shippers are able to find the capacity they need at a reasonable price. COVID-19 is also impacting different modes in different ways. Truckload is dealing with the bullwhip effect and this is creating volatility in the spot markets. The LTL carriers have seen a precipitous drop in volume and are making operational changes. On the parcel side, UPS and FedEx have adjusted deliveries and service guarantees in the parcel area. With blank sailings affecting the ocean marketplace, and airlines sharply curtailing their flight schedules, suffice it to say there are extreme challenges in the ocean and air sectors.
In answer to many questions I've been fielding about what's happening and what to expect, we created our Transportation Industry Overview, which we are making available to shippers in order to help them navigate these turbulent times and restore a sense of calm to their supply chains.
Now, part of getting back to a healthy supply chain is giving it the appropriate stress test, as written about in Harvard Business Review by our friend, MIT Professor David Simchi-Levi. If you haven't seen our recent interview where he discusses the importance of risk mitigation in your supply chain, now is the time!
If you aren't sure how to get started with a stress test to help you understand where your supply chain is vulnerable and what options you have to get it into shape, we can help. Our Rapid Assessment Process has proven invaluable in helping companies design strategies for success that can help them not only during crises like we are experiencing now, but at all times.
To get started, just give us a call at 630-833-0890 or send us an email at solutions@tranzact.com.