Logistyx President Ken Fleming published a new article, “Carrier Capacity Management Levels the Playing Field in a Carriers’ Market,” in Logistics Viewpoints, detailing the critical role of carrier capacity management for parcel shippers facing unprecedented challenges, including higher costs, navigating carrier parcel volume caps, and less negotiation power with carriers and partners. Increasingly, shippers deploy a wide range of creative strategies to create more carrier capacity, above and beyond maintaining a critically important multi-carrier parcel shipping network. Consider the following excerpt:
“A growing number of shippers now embrace the gig economy to get orders to customers, for example. Target, Walgreens, and other retailers now offer same-day and two-hour delivery options. Essentially taxis and bike messengers, this new army of couriers helps shippers lighten their demand for more traditional carrier services by reducing, often significantly, the number of parcels in those carriers’ queues. Their ranks are growing, with more of the gig economy racing to implement the right technology to accommodate heightened requirements for security, proof of delivery, signature capture, and more.
Omnichannel retailers have also begun reexamining their retail footprint from new perspectives. No longer considering only ship-from-store to offset carrier capacity constraints, many retailers found other ways to leverage stores to reduce demand for traditional carrier services. First and foremost, retailers have begun to not just offer services like buy online, pickup instore (BOPIS) and curbside pickup, but to incentivize consumers to choose these fulfillment options. Belk, Petco, Target, and Walmart were among the first to offer customers discounts for picking up orders, but carrier capacity constraints have helped the concept catch on with others.
Manufacturers also adjusted. Out of necessity to move product faster, some added parcel shipping operations at manufacturing facilities. This strategy gives manufacturers another distribution point and allows them to navigate capacity limits and volume-based pricing more strategically.”
Read Ken’s full article at Logistics Viewpoints: https://logisticsviewpoints.com/2021/12/07/carrier-capacity/
To learn how Logistyx can help you implement or adapt a carrier capacity management strategy that fits your needs, contact us today.