Unpredictability, meet preparedness
In the transportation industry, change is constant. Even annual events, like seasonal spikes and winter weather delays, have a way of happening when they’re least expected. But these things are normal. And successful companies have plans in place to keep their customers’ freight flowing during these times.
But in today’s climate where capacity, inflationary pressures and cybersecurity are among top industry news stories, it’s more important than ever to plan for more than just the interruptions you can see coming. Doing so requires a close look at your supply chain, your logistics partners, and your processes for recognizing and reacting to change.
Expert tips for disruption-proofing your supply chain
ArcBest partners with businesses of all sizes, and we’ve seen a wide range of responses to market disruptions. Some companies navigate them well, while others face more challenges. The ones that excel typically take a strategic approach to capacity and do some key things to mitigate risk.
Here are our top tips for staying ahead:
Understand the potential threats
The first step in managing supply chain disruptions is knowing what can cause them. The better you understand where risks lie, the easier it is to build contingency plans. Here are some causes you may need to prepare for:
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Extreme weather. Winter storms, hurricane season and flooding may lead to route changes or late transit.
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Transportation delays. Accidents, increased traffic on the road, delays at ports or customs checkpoints, and issues at pickup or delivery can all impact a carrier’s ability to deliver on time.
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Changes in supply and demand. Produce season, peak holiday shipping, pricing increases and capacity shortages could make it difficult to move freight in your normal mode.
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Security issues. Damage, theft and data breaches could lead to lasting issues.
Though some setbacks are unavoidable, identifying your vulnerabilities and knowing how to manage them can help you build a resilient supply chain.
Evaluate your transportation providers
To make sure you're well-prepared for anything that might come, take a good, close look at your capacity partners. Get to know their strengths and limitations for business continuity, handling changes in demand and keeping your supply chain secure.
Here are some questions you can ask to ensure you're not caught off guard:
- Do they have any constraints in terms of geography or the volume they can handle?
- Can they tap into additional capacity beyond what they own?
- Are they innovative and open to exploring new options that can boost capacity and efficiency?
- Are they capable of quickly changing transportation modes when needed?
- How do they handle cargo and information security?
- How financially sound are they?
- Are they positioned to build a long-term partnership that scales with your company?
Your partners should be stable, agile, well-resourced, and experienced enough to adapt to different circumstances, including adjusting how your freight is moved.
Be comfortable with change
Sometimes, the best plan is to change the plan. In situations where your primary transportation strategy won’t be effective, mode shifting may be necessary to keep shipments on schedule. The more open you are to a diverse transportation mix, the more options you’ll have when it’s necessary to make a switch. This may mean deconsolidating into LTL shipments, utilizing expedite, or moving freight via rail to take advantage of better pricing, reliable transit or other benefits of alternative capacity.
Use technology effectively
Technology enables you to look closely at every area of your business, which can help you find inefficiencies that could lead to problems and make it easier to identify when abnormal situations are occurring. Take a deep dive into your carriers’ on-time performance and your suppliers’ ability to provide the materials you need. You’ll also want to look at processes you could automate to speed up things like pick-up and delivery and paperwork processing and remove the risk of human error.
Whether you invest in-house or utilize your transportation provider’s technology, it can enable you to make the critical decisions needed to manage unexpected events.
Don’t wait for disruption — make a plan today
In today's fast-paced business landscape, supply chain disruptions can strike without warning, threatening your operations and bottom line. Are you equipped to handle unforeseen challenges and keep your supply chain running smoothly?
Partnering with a logistics company that’s able to pivot with your needs can help ensure you keep delivering on your promises, even when the market shifts. That’s where ArcBest comes in. We’re a leading logistics company with 100 years of experience, diverse capacity options, integrated technology and a remarkable team that excels at creating day-to-day supply chain solutions and contingency plans — so you can get ahead of the expected and the unexpected.
Schedule a discovery call with us today.
