As
consumer confidence continues to grow, so too does demand at retail outlets.
From apparel to sporting goods to furniture, hardware and electronics,
retailers are seeing sales rise even after the holiday season. But with the
driver shortage in the trucking industry, retailers have to work hard to make
sure their shelves are stocked with Driver Shortagetheir top selling items.
According
to American Trucking Associations, more than 70 percent of all goods in America
are shipped by trucks. This includes everyday items such as food, medicine and
clothing, as well as the computers we use, the dining room tables we eat at and
the fans we turn on to cool our homes.
As
the driver shortage gets worse, trucking companies are working with retailers
to make sure store shelves remain stocked and customer service levels remain
high.
Truck
drivers do more than just deliver freight to the loading docks of retail
stores. They move boxes, interact with store employees, stock shelves and
reload their trucks for backhauls. They also deal with tight delivery windows,
which, in some cases includes next day or same day deliveries.
While
peak periods such as holidays are a major concern, the driver shortage is affecting
the industry the entire year. To remedy the issue, retailers and trucking
companies have changed several processes to keep goods moving.
For
retailers struggling with the driver shortage, here are some options that can
help keep stock levels high:
Dedicated
fleets: Most retailers have dedicated contract carriers. With this, they also
carry surplus capacity to meet demands during peak periods. The driver shortage
has led to capacity constraints and a near 100 percent active truck
utilization. With a dedicated fleet, retailers can leverage the trucking
company’s purchasing power to balance their dedicated fleet with common
carriers, making sure deliveries are made on time and their stock rooms are
full.
DC
bypass: With products being manufactured and shipped from overseas, businesses
are looking for ways to speed their goods to market. One of these ways is to
bypass distribution centers (DC). Cutting the movement of products not only
reduces transportation costs, but lessens the number of drivers needed to move
the products to the store. Many big box retailers have chosen this option for
their business.
Use
carriers throughout the year: It pays to pound the pavement and build
relationships with several common carriers. By awarding common carriers with
business throughout the year, retailers are able to keep loyalties with second
and third carriers. By balancing the awards instead of using a carrier just
once per year, the carrier will reward the business by making trucks available
when needed.
Cross
docking: Retailers are cross docking more with the driver shortage. With cross
docking, trucks are loaded directly into outbound trucks with little to no time
in warehouses. This increases speed to market. This practice also helps with
recruiting and retaining drivers because there are fewer long haul shipments,
giving drivers more predictable home time.
- See more at:
http://blog.ryder.com/2015/01/keeping-shelves-stocked-driver-shortage/#sthash.c6cIwo2N.dpuf