How Joining a Direct Freight Network NOW Can Prevent Supply Chain Nightmares Later
Well, 2020 has certainly been an interesting year.
On the business front, the swirling storm of a deadly pandemic, geopolitical tensions, and general unease has many companies struggling to maintain steady footing amid all the chaos.
So what happens now that the holidays are here?
Wait. The holidays are here? In August?
For manufacturers and other companies that move freight, they most certainly are. August is when retailers and other Shippers start ramping up production and putting holiday logistics plans into place. It’s also the beginning of the traditional peak season for the trucking industry.
Of course very little has been “traditional” this year – which has Shippers and Carriers alike struggling to read the tea leaves as they plot out their holiday logistics strategies. Will the usual freight surge take place this year? Or will Covid cripple holiday spending, which for retailers can represent as much as 30% of annual sales?
Apart from a guaranteed economic spike, the best gift Shippers and Carriers might receive this year is the birth of a direct freight network such as the one LaneAxis is building. FreightLINK AND FreightVISION are designed to help companies effectively and efficiently maneuver through times of supply chain uncertainty. And in “trying times like these” – uncertainty is about the only constant.
Just looking back to last Christmas, it wasn’t Covid, but another big “C” – Celadon Trucking – that threw a wrench into the holiday freight season. Just two weeks before Christmas, 2019, the Celadon Group – at one time a $1 billion company – unexpectedly filed for bankruptcy, marking the largest truckload bankruptcy in history. In addition to 3,000 drivers instantly losing their jobs, Celadon’s collapse left many of its high-profile customers scrambling to find capacity just before Christmas. That list included corporate titans such as Target, Walmart, Proctor & Gamble, Alcoa, General Electric, John Deere, and Philip Morris.
Those massive companies undoubtedly had the clout and cash to power through the disruption using a variety of “Plan B” tactics – most likely reaching out to freight brokers and 3PLs. Fortunately, LaneAxis is now on the scene to serve as a Plan A, B, and C.
Capacity at Your Fingertips
The ability to tap into a vast network of on-demand Carriers at a moment’s notice is indispensable. By directly connecting with hundreds or thousands of Carriers that run their preferred lanes, Shippers of all sizes are not only mitigating risk, they are now empowered to completely reinvent their logistics strategies with efficiency, cost-savings, and total visibility at the forefront.
It’s important to remember that 97% of the U.S. trucking industry is comprised of small and independent Carriers owning just a handful of trucks – in many cases just a single truck. So when Shippers scramble to find capacity through a broker or 3PL, those loads are almost certainly being hauled by the very same Carriers LaneAxis is now offering direct access to. During times of calm or chaos, LaneAxis is eliminating the need to utilize intermediaries such as freight brokers.
With FreightLINK, a Shipper can now have hundreds, or thousands, of independent Carriers all under contract – with insurance, Worker’s Comp, and all other contractual requirements managed and monitored by the LaneAxis system. Once a shipment starts, FreightVISION then automates management of the actual movement by providing real-time tracking, geofence entry and exit notifications, in-app messaging, and instantly uploaded e-docs including proof-of-pickup and delivery. Once all parties sign off on the delivery, payment is automatically released to the Carrier.
In this year of unprecedented uncertainty – LaneAxis can bring some holiday peace of mind to Shippers. Remember – in the world of freight logistics the holidays are already here. If Shippers/Manufacturers truly want to weather any supply chain storms come Christmastime, they should start building their independent Carrier network NOW.
To find out more, visit laneaxis.com.