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To Arms! Shippers Engage in “Arms Race” to Secure Global Shipping Capabilities

The last 18 months has seen a great deal of chaos in shipping and logistics. COVID-19, Brexit, manufacturing plant fires, capacity shortages, unprecedented e-commerce growth and more all contributed to extended delivery delays, increased returns, and a growing need for flexibility to meet consumer demands and ensure customer satisfaction.

Companies around the globe are rethinking every facet of their business model, from their sales model to their approach to inventory to how they handle returns. Among their top priorities, is trying to put transformative shipping strategies in place to execute expanded omnichannel approaches that include store-based shipping and expanded delivery options for traditional e-commerce purchases.

With major carriers like UPS and FedEx routinely announcing increased shipping surcharges and daily package capacity caps for peak season, while also dropping smaller freight clients altogether, shippers are rightfully seeking more regional carriers to incorporate into their carrier networks to pick up the slack. As LaserShip Chief Commercial Officer Josh Dinneen told the New York Times:

“Vienna, Va.-based LaserShip has expanded into several markets this year, and began delivering in Tennessee last month. The company now serves 21 states and the District of Columbia, and plans to push west of the Mississippi, said Chief Commercial Officer Josh Dinneen.

He said that holiday-season capacity is already locked up and LaserShip won’t add new clients until January.

‘We are adding north of 400% more customers this year than we did last year,’ Mr. Dinneen said. ‘These retailers are looking for alternatives to FedEx and UPS, and faster speed to their customers.’”

This is not a unique situation. Many regional carriers are capitalizing on the overflow of larger carriers and expanding geographic areas rapidly to accommodate demand while ensuring quick profitability, but onboarding new carriers is not the only tactic shippers are employing to improve service levels and keep up with demand. They’re also looking to increase options with proven carriers or carriers that look likely to prove out given strong investment.

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Utilizing Technology to Secure Global Shipping Capabilities

Of course, it’s not just carriers and services that shippers are ramping up; it’s also their use of technology to optimize their processes and uncover new opportunities. Technologies like Manhattan Associates’ Warehouse Management Systems and Order Management System continue to help shippers improve operations and fulfillment, especially when coupled with Logistyx’s cloud-based solution with state-of-the-art business intelligence and a carrier library of more than 550 carriers.

Manhattan unites information across the enterprise, converging order management with back-end supply chain execution. Logistyx offers Manhattan customers the ability to better manage their parcel shipping activities with support for a blended carrier strategy and the capacity to deploy an extensive selection of carriers, providing an expanded global footprint for customers to achieve the best value for every destination, delivery time and product.

These types of technology integrations optimize the entire order fulfillment process from end-to-end, saving valuable time and resources, cutting costs and helping ensure customer satisfaction during times of turmoil and in the face of unexpected challenges.

“Shippers face unprecedented challenges in parcel shipping, finding themselves in a shipping arms race to ensure they can navigate current and future circumstances to maintain the survival of their business,” said Adam Kline, Senior Director, Product Management at Manhattan Associates. “As shippers seek solutions to the current challenges while working to protect their businesses against potential future issues, the importance of growing transportation networks for greater choice becomes paramount. The combination of Manhattan’s and Logistyx’s solutions creates seamless flexibility, stability and security.”

Increase your Global Shipping Capabilities

Whether onboarding new carriers and carrier services, implementing new technologies, or both, shippers increasingly seek to employ a variety of strategies and tactics to ensure shipping coverage on a global scale.

Contact Logistyx today to see how we can help you navigate current and future obstacles in shipping and supply chain.