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Keeping Shelves Stocked During The Driver Shortage

Mario Rivera

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


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