Navigating Supply Chain Risks
By Rick Aquino
Sr. Business Development Executive at Loyalty Logistics
Looking back on the past 5 years, it has been full of surprises & challenges indeed. The world of Supply Chain Management was faced with serious challenges and risk mitigation creativity to adapt quickly with the changes in the transport and logistics world. The attack of COVID-19 caused many uncertainties in nearly all areas of our lives, and many faced unprecedented supply chain mind benders. There were the usual severe weather conditions that caused floodings, typhoons, hurricanes, tornadoes, landslides, forest fires, etc., that shut down roads that negatively impacted many company operations. How about the Port closures on the west coast of North America (California) that held hostage many container carrying ships at bay or stuck for months in container terminals? Quick actions for container diversions were immediately put into action to avert heavy losses.
So while the weather system we saw recently — along with the lingering effects of the global pandemic and exacerbated by serious truck driver shortage — it is abnormal and yet seems to be the signs of the future, but it doesn’t hurt to be prepared especially for the coming holidays and the tough winter season. It is important that you prioritize in selecting a transport supplier/provider that has the highest regard for honest, candid, and timely communication that you can trust. In these times- accurate, timely, true information is the key to a healthy supply chain. Just like the root word of LOGISTICS- information must make sense- LOGIC!
Managing the Perfect Storm: Freight Broker vs. Asset Based
It is critical to understand the roles and advantages of each. Freight brokers do not own their own equipment. An asset carrier owns and operates the tractors and trailers in their fleet and employs the drivers that move the freight. The shipper has the option to work directly with the carrier or with a Freight Broker when they need freight moved.
The freight broker’s responsibility is to help ensure a seamless flow of freight by working cooperatively with a diligently selected network of trucking partner companies. Depending on the type of freight broker partner, with a single contact- you will have quickest access to capacity across US, Canada & Mexico and secure best freight rates with matching services available.
An asset-based carrier has limited trucking lanes it can cover and will only move freight on lanes that fit into each of their own serviceable operational lanes. They also have limitations on the choice of equipment (trailer) they can provide. Why the need to have extra staff just to make so many calls when you can call your friendly Freight Broker?
A Freight Broker’s portfolio of services and lanes are boundless by providing capacity from any point and to across the continent. They will take charge in assuring freight is delivered cost-effectively, safely, and efficiently across borders, and in a timely manner. With experience and advance preparation, no matter the hiccups and obstacles that may hinder or deviate from the schedule of operation, from pick up till delivery- the “pillow service”- a client can sleep well knowing freight’s movement is diligently cared for. With their 24/7 exposure to the market trends, with their finger on the pulse of the industry, the use of technology to assure your freight is moved by legit certified carriers (why risk putting your freight on-board an ill-insured or “rogue” carrier?), the flexibility to customize services to adapt to shipper needs (whether refrigerated or frozen, in-bond, open deck trailers for the oversize/heavy hauls, required permits for HazMat cargo, etc.,) which ultimately will be a positive impact to any shipper’s bottom line- save money, time and resources.
To thrive and survive in this very competitive world requires an efficient supply chain. To achieve this, you need a strong transport and logistics partner with a “leading edge” mentality. One that possesses character with key attributes of experience, great regard and respect for open communication, smart, fast to react, discipline, honest, commitment to customer service and reliability.
Loyalty Logistics is an asset-based/ brokerage transport company that manages its own fleet of trucks and trailers with offices in USA, Canada & Mexico. Loyalty Logistics continually strive and always on a constant mission to improve and deliver the highest level of service to our customers. We ensure that the support you need and rely on is available “every time on time.” Our Loyalty is providing services with true information you need to work with the market, to avail capacity so you can conduct and navigate your business more efficiently and effectively.