Understanding the different ways of diversifying supply chains in trucking is a crucial consideration for shippers when moving cargo domestically. In shipping, diversification is the process of mitigating disruptions that can impact the success of your supply chain. Due to the steps involved in transporting freight to its final destination, there are numerous ways to diversify supply chains. While shippers use this standard approach when transporting goods internationally, it is also valuable for domestic shipping. For example, diversifying can include having multiple warehouses, routes, production locations, and transportation types. This article will explain the importance of diversifying supply chains and the various ways to do it.
Why Is Diversifying Supply Chains in Trucking Important?
Over the last few years, the U.S. trucking industry has faced various challenges that impacted cargo movement. Disruptions like a global pandemic, driver shortages, and rising fuel costs have directly affected supply chains for moving goods domestically. In the U.S., domestic shipping is the backbone of freight transport, which numerous industries require in their supply chains. Trucks haul approximately 72% of all goods consumed in the U.S. Due to the various risks, it has become increasingly essential for shippers to safeguard their shipments. Diversifying has also grown in popularity in recent years because companies want to provide more value to their customers by having more logistics options.
How Can You Diversify Your Supply Chain?
Shippers diversify when shipping cargo to prevent disruptions, achieving this in various ways. A common way is utilizing multimodal transport, which they use for domestic and international transportation. For example, adding first-mile or last-mile trucking makes a supply chain more diversified, whether importing or exporting internationally. When shipping domestically, this can mean adding rail transport to supply chains that primarily use trucking. This allows for alternate routes when congestion or stoppages along key trade routes occur. Another diversification method is partnering with multiple freight carrier providers instead of one. Having a network of carriers across a large region allows for resilience against compacity shortage or bankruptcy of a trucking company.
Carrier networks should contain diverse types of trucks, including FTL (full truckload), LTL (less-than-truckload), temperature-controlled, Heavy haul, and more. Some networks also add electric and alternative fuel vehicles to provide an eco-friendly option. Along with using multiple carrier providers, shippers can have diversification by employing various shipping routes. More routes may be especially beneficial for long-haul transport, which is the movement of goods over extended distances. It also helps in preventing delays caused by road traffic. Having warehouses and distribution centers in different locations in the U.S. is another way to enhance resilience.
A1 Freight Solutions
When transporting cargo by truck, your shipment must be safe and successful. Disruptions in the transportation process can lead to monetary and cargo loss. Another way that a shipper can diversify their supply chain is by speaking to a freight broker. Freight brokers are the middleman between the shipper and carrier and coordinate cargo movement on behalf of the shipper. They do this by finding carriers, negotiating rates, ensuring compliance, and more. A1 Freight Solutions has brokers that give the best course of action to take for navigating domestic shipping. Talk to us at 786-375-9420 or info@a1fsinc.com to speak to an expert regarding moving your cargo anywhere domestically.