Mastering the Capacity Rollercoaster

Transportation capacity is an ongoing business challenge that requires shippers to successfully manage uncertainty and the unexpected when shipping products. While many retailers and manufacturers are scrambling to meet current shipping challenges, they actually need to take a longer-term view and create a flexible transportation strategy that addresses the inevitable variations in both customer demand and carrier availability.

<p>Transportation capacity is an ongoing business challenge that requires shippers to successfully manage uncertainty and the unexpected when shipping products. While many retailers and manufacturers are scrambling to meet current shipping challenges, they actually need to take a longer-term view and create a flexible transportation strategy that addresses the inevitable variations in both customer demand and carrier availability.</p>

Transportation capacity is an ongoing business challenge that requires shippers to successfully manage uncertainty and the unexpected when shipping products. While many retailers and manufacturers are scrambling to meet current shipping challenges, they actually need to take a longer-term view and create a flexible transportation strategy that addresses the inevitable variations in both customer demand and carrier availability.

By · April 13, 2011

Every company that depends on shipping products quickly and cost-effectively – from retailers and consumer products companies to industrial manufacturers – is challenged by the current shortage of transportation capacity. The recent economic downturn forced many businesses to make tough decisions about their unused fleets and other transportation assets, in order to remain as lean and profitable as possible.

As a result, today we are in the midst of a serious capacity shortage. As the economy picks up speed and customer confidence grows, retailers and manufacturers are eager to get their products into receiving docks and store aisles quickly. Only too often they find themselves unable to accomplish this profitably. Many shippers are faced with a difficult choice: either pay a premium for alternative carriers or miss a critical sales opportunity.


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

JDA Software · TMS · All Topics
Latest Whitepaper
Boost your retail performance with an integrated solution
From outbound and inbound route planning to inventory management, and workforce optimization to home delivery planning, your planners need the full picture to make the best decisions.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...