Peak season package demand is expected to surpass existing capacity by 4.7 million regular shipments. In a recent panel discussion on the present capacity shortage, Logistic Management’s Associate Editor John Schulz stated that the writing is on the wall regarding carriers and capacity.
It’s a carrier’s market, and they’re picky about who they trade with.” This is a connection industry. It is a technological industry. The conventional methods of acquiring capacity & bouncing one carrier off another will not work in the short run. Shippers and brokers must organize their budgets and operations accordingly, utilizing the best people and technology they can find.
It is evident that if you want to maintain existing carriers and add more capacity to your network, you must give a better experience to carriers than your competitors. Broker Advantage from Trucker Tools is a sophisticated white-label tool you can use to decrease manual interactions with carriers. You may use Broker Advantage to give carriers quick access to your cargo, reduce their technology constraints, build new partnerships with new carriers, and eventually offer carriers an incentive to continue carrying your freight.
Here are five strategies for diversifying and expanding your carrier network.
1. Say goodbye to single-sourcing
If you arrange your distribution capacity with a single carrier, they will typically provide lower prices than if you use many carriers. However, if that provider is under capacity, your client experience may suffer. When several national carriers began imposing volume restrictions, shops were stymied. What was the outcome? There is a significant rise in the need for regional carriers to fulfill the vacancy. The days of relying on a single supplier are passed.
Furthermore, a multi-carrier approach allows you to provide your clients with extra delivery options. To optimize the customer experience, faster or inexpensive options (significantly expedited delivery) may be considered.
2. Consider the usage of regional carriers.
Regional carriers are not always necessary. Working with major national carriers could be ideal if you just have one Distribution Network, offer lightweight items like clothes, and need to handle the international shipment. However, if you move a large volume in a specific region, it’s worthwhile to do the calculations. Especially if you’re shipping large or fragile things, regional carriers can still save you anywhere from 10% to 40%.
Furthermore, regional carriers may provide more significant frequency and commute time than national carriers. Moreover, they may run regular and weekend shipments and same-day delivery, which national companies may not match.
3. Take into account a carrier aggregator.
The problem with a multi-carrier method is determining which option is optimal in real-time. Here are carrier or shipping providers like U.K.-based Metapack, ProShip in the United States, & ShippIt in Australia. An aggregator allows you to confirm which providers can service orders with a single call during the purchasing experience rather than calling each carrier separately. This saves a lot of time and slows down page loads. The broker confirms whether the carrier(s) can serve the ‘origin to destination’ route and replies with commuting times, carrier rates, and rules, allowing you to give your consumers the most convenient options. It also allows you to optimize the revenue on each order when you offer free shipping.
4. Make use of your own fleet.
Some businesses and brands, particularly those with physical locations, may find it advantageous to establish and operate their own network of drivers to distribute locally. Consider shop employees. While new processes and additional training may be required, you will have far more control and the chance to give a totally branded delivery experience. Consider employing a service to better handle fleet size and driver efficiency if you go this way.
5. Consider crowdsourcing.
Crowdsourcing is an excellent choice for firms that operate in urban regions. It also has additional advantages. Not only can you provide quick and convenient delivery, but you can also outsource your pick and pack. Consider the following new delivery options:
- Personal Shoppers – Similar to Instacart and Shipt in the United States, personalized shopping services have typically concentrated on groceries and are rapidly expanding.
- Crowdsourced Drivers – Consider DoorDash or Uber Direct. It follows the same principle as traditional Uber and Lyft. Only drivers pick up and deliver parcels rather than passengers.
- Passengers on public transportation and bicycles – Seeking the finest in sustainable urban distribution while still providing same-day services? Look no farther than Urb-It. They offer crowdsourcing delivery via bike or public transit, which is even better for the environment.
You now understand why you should think about diversifying your carrier network. It’s time to put the practices described above into action.
Please contact us to discover more about how we may help you improve your omnichannel fulfillment.
