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Why an Efficient Supply Chain Is a Green Supply Chain

Increasingly, customers want to work with companies that take steps to reduce their carbon footprint. For shippers, that means that building a green supply chain is no longer just an environmental concern: it’s a business imperative, too.

The good news is, one of the most important steps you can take to go green is also highly cost-effective. In fact, it’s likely something you’ve been working toward already.

To reduce emissions (and costs), focus on efficiency

In an era when people are accustomed to getting things lightning-fast, working with carriers known for their efficiency makes sense from a business perspective. But it also fulfills an environmental need: the carriers that spend the least amount of time on the road each journey use less fuel and therefore produce fewer emissions.

Finding the most efficient routes and carriers is a win-win-win situation. You’ll reduce your transportation costs, impress clients with your rapid deliveries, and build a greener supply chain, all in one fell swoop.

The best carriers to work with also tend to be the greenest

Choosing carriers known for their efficient deliveries can pay off in another way. These carriers are often faster because they’re using more up-to-date equipment.

Why does that matter from an environmental viewpoint? Well, the older the fleet, the more emissions it’s likely to produce. Carriers that strive to improve their fleet continuously are often equipped with sophisticated technology, including tools designed specifically with safety, fuel efficiency, and reduced emissions in mind. That technology makes these carriers more eco-friendly and more reliable to work with, resulting in fewer costly issues across the relationship.

Other cost-cutting initiatives can also contribute to a green supply chain

Route and carrier optimization aren’t the only ways for shippers to reduce their environmental impact and their costs at the same time. Load optimization also matters.

Rather than wasting money and fuel by sending a half-empty truck halfway across the country, shippers can embrace more sustainable options like less-than-truckload (LTL) shipping. LTL shipping allows for smarter shipment consolidation, reducing the number of trucks on the road—and the amount of fuel being burned.

Going green is good for business

Ultimately, building a green supply chain is good for the environment—and the bottom line.

These steps aren’t the only ones required to reduce your company’s carbon footprint, but they are a good place to start and a good way to achieve buy-in for further initiatives. When leaders see that your team’s efforts to go green have had a real and measurable impact on your transportation costs, they’ll likely be more open to conversations about how to take things to the next level. And if customers ask what your company is doing to reduce the environmental impact of its shipments, you’ll have an answer ready to go, putting their minds at ease and helping you earn their business.

CTSI-Global’s proprietary logistics technology and deep network of trusted, high-quality carriers can help you get started with adopting greener, more efficient, and more cost-effective practices. Contact us today to learn more.

Forecasting Demand Accurately in the Age of Uncertainty

The impact of poor forecasting has been keenly felt by many companies in recent months. A prime example lies within the automotive industry. Anticipating a drop in consumer interest in automobiles during the pandemic, carmakers ceased ordering supplies of critical materials like semiconductors. This decision left them scrambling to produce new vehicles amidst a global semiconductor shortage when demand recovered faster than anticipated.

This is an extreme example, but it should serve as a warning to other companies: inaccurate forecasting can have enormous and long-lasting ramifications, from lengthy backlogs to dissatisfied customers. But what can shippers do to improve the accuracy of their forecasting at a time of constant disruptions, uncertainty, and change? Here are a few key steps every shipper can take.

Eliminate blind spots

Historically, some companies have experienced issues with certain regional teams being less on the ball than others when it comes to providing up-to-date supply chain data. This can make it harder for companies to evaluate big-picture trends or understand regional differences. Suppose the New York facility is experiencing a sudden uptick, for example, but the California branch hasn’t shared any data in some time. In that case, leaders at HQ may struggle to determine with any degree of certainty whether this is a trend they need to prepare for across the U.S. or if it’s confined to the East Coast.

Having a single hub through which all supply chain data flows can help companies avoid this problem and achieve total visibility. When data is automatically centralized, supply chain leaders are no longer dependent on the whims of individual managers. Ideally, the system used should also normalize data from disparate teams and regions to ensure that slight variations (like spelling and currency differences) don’t skew the results and muddy the accuracy of the forecasting.

Prioritize speed

While rushing can lead to mistakes, taking too long to aggregate and analyze data during the demand-planning process can lead to companies making decisions based on outdated information. This is especially risky at a time when the market is moving fast and staying agile and responsive is critical.

Having analytics and business intelligence tools in place that enable them to monitor data and trends and pass learnings on to business leaders in real-time will allow supply chain managers to improve the accuracy of both short- and long-term forecasting. With fresh data in hand, shippers can feel confident in their ability to pinpoint emerging trends and act proactively—rather than reactively—in the face of new challenges and opportunities.

Increase frequency

During calmer, more stable periods, supply chain managers might have felt comfortable running demand forecasts monthly or even quarterly. To navigate uncertainty and disruption, however, more frequent forecasting is a must.

Shippers can learn a lot from fast-fashion retailers and other manufacturers that have incredibly short market cycles. These companies typically commit to forecasting demand and updating their supply plan accordingly as often as twice a week. That way, if a trend proves to be a flash in the pan rather than a prolonged shift (or vice versa), they can rapidly pivot to avoid wasting time and resources.

Improve your forecasting capabilities today

When the only certainty is uncertainty, accurate forecasting may seem unattainable. But by using the right tools, sticking to a few tried-and-tested best practices, and taking steps to improve your agility, you can stay on top of a shifting business landscape—minimizing waste and ensuring you can continue to meet customers’ needs.

Discover the best in supply chain analytics and business intelligence tools. Contact CTSI-Global today to learn more.

Cautious Optimism and Warranted Concerns: Supply Chain Leaders Look Ahead to Peak Shipping Season

With the holidays on the horizon, peak shipping season is fast approaching. That could spell good news for companies hoping to meet their sales targets after a turbulent year—if they can get their logistics strategy ironed out in time. Despite the challenges 2021 has thrown up, however, many supply chain leaders seem cautiously optimistic.

In an August 2021 survey of supply chain leaders and managers based in the U.S. conducted by GlobalTranz, three-quarters of respondents reported that they expect their peak shipping season revenue to be higher this year than it was in 2020. Considering that online shopping experienced a boom last year, that’s saying something. Leaders also noted that they feel their companies are more prepared to meet customer demands through this busy period and beyond.

This optimism is encouraging. But supply chain leaders are pragmatic by nature, and a few major concerns still loom large as peak shipping season gets underway.

COVID-19 resurgences keep supply chain leaders up at night

Even as some regions open up, others are heading back into local lockdowns as COVID-19 cases spike. At the same, fears about variants are rising. As a result, three out of four leaders surveyed say they’re worried that a COVID-19 resurgence will negatively impact their businesses’ supply chain operations—and more than half say that future lockdowns are a top challenge on their radar.

These concerns are certainly warranted. Government-mandated lockdowns could force facilities to pause operations at pivotal moments during the peak shipping season. And if even a handful of warehouse employees or drivers get sick or are exposed and need to quarantine, companies’ may struggle to meet customer demand, resulting in fresh backlogs.

Recruiting and retaining employees is only getting more challenging

Finding great supply chain talent has never been easy, but the “Great Resignation” has added a new layer of complication. With countless employees growing dissatisfied and restless, employers across all industries are paying top dollar to lure and retain talent—and the logistics sector is no exception. In fact, 47% of respondents say they’ll be paying higher salaries to combat this challenge before the end of the calendar year.

Workforce deficits could leave some companies on the back foot going into peak shipping season. And since it takes time to ramp new hires up to full productivity, it may be more effective for shippers to focus on retention efforts, at least until this hectic period has passed.

Enter peak shipping season with confidence

Optimism is important, but only when it’s balanced with a pragmatic approach. With so many challenges and changes rocking the industry, companies need to realistically evaluate their capacity and find support in critical areas. That’s why 94% of supply chain leaders surveyed noted that partnerships with supply chain or logistics companies are necessary to get through peak shipping season successfully.

At CTSI-Global, we’re committed to being true partners to every company we work with. We can provide the supply chain technology, industry expertise, and hands on deck required to keep your operations moving smoothly during peak shipping season—so you can meet customer demand and make more money.

Have your best holiday season ever. Contact us today.

The Truck Driver Shortage Worsens in the Wake of Current Challenges

The truck driver shortage has been an issue for as long as many logistics experts can remember. But as a result of the pandemic and other recent challenges, the gap between supply and demand for drivers has only widened, and it may take years to close—if it ever does.

What’s causing the truck driver shortage?

Many of the factors influencing the current truck driver shortage aren’t new. The job has never been particularly attractive to many people, involving long hours on the road away from friends and family—particularly on the long-haul shipping side. It can be grueling and lonely, and it’s unsurprising that as one generation of truck drivers nears retirement age, few young people seem interested in entering the industry.

Even for those who are ready to take up the mantle, doing so is easier said than done right now. In the UK alone, 45,000 people have been unable to get a test to drive a truck since the start of the pandemic. Since this testing backlog coincided with massive spikes in demand as more and more people began shopping online while stuck at home, the seriousness of the driver shortage has been acutely felt.

Of course, there’s one more major factor contributing to the truck driver shortage in the UK in particular: Brexit. Following Britain’s move to leave the European Union, hundreds of thousands of migrant workers exited the UK—including scores of long-haul truck drivers. Today, the British Retail Consortium estimates that the UK is short around 90,000 drivers. And with the government rejecting calls from trade bodies to grant temporary visas to truck drivers from the EU while domestic drivers can be recruited, trained, and tested, it’s unclear how this shortfall can be addressed any time soon.

Is there an end to the truck driver shortage in sight?

Short answer: yes and no.

In the short term, sweeping changes will need to be made across the long-haul trucking industry to attract more people to the profession. Efforts are already being made to improve driver safety and comfort and reduce the amount of time they spend away from home, but it’s clear that more needs to be done—and soon—to keep up with demand.

In the long term, technological advancements may minimize this problem—or eliminate it altogether. Autonomous commercial trucks are already being tested on real roads, carrying real freight. And while they’re far from driverless right now (drivers are currently needed to handle safety-critical functions), the dream of a truck moving down the highway with no one in the cab is no longer the stuff of pure science fiction, either.

Even when the technology matures to a point where this is both possible and safe, shifts in regulations and public opinion will need to take place before fully self-driving trucks become the norm. But as a sustainable solution to the perennial problem of the truck driver shortage, this is likely the industry’s best bet.

What can shippers do to navigate the truck driver shortage?

The truck driver shortage has been an issue for a while—but it feels especially intense for many shippers right now.

If you’re struggling to find capacity, we can help. CTSI-Global is a fully licensed freight broker with a 20,000-strong network of trusted, vetted carriers under our belt. Contact us today, and let’s get your goods on the road.

What the Global Semiconductor Shortage Teaches Us About the Future of Supply Chain Management

From a lack of milkshakes in McDonald’s stores across the UK to difficulties sourcing glass bottles for U.S. distilleries, supply chain disruptions have impacted countless businesses this year. But one shortfall, in particular, has created widespread problems: the global semiconductor shortage.

An analysis by Goldman Sachs found that 169 industries have been impacted by the semiconductor shortage in one way or another. Carmakers, medical device manufacturers, soap producers, and even companies that create ready-to-mix concrete are among those hit by the shortage, which doesn’t show signs of easing any time soon. And while few could have predicted the snowball effect of geopolitical conflicts, factory fires, and transportation delays that contributed to the massive scope of this problem, there were steps that companies could have taken to minimize the effect it had on their businesses.

Here are a few key lessons that companies can take away from the semiconductor shortage to build more resilient supply chains moving forward.

Lesson #1: Don’t underestimate demand

In the automotive industry, in particular, one fatal miscalculation cost companies dearly. When the pandemic hit, many assumed that consumer demand for cars would decrease. After all, few were traveling or driving to work anymore. As a result, carmakers called their suppliers to cancel orders of parts and materials, including the semiconductors that have become increasingly integral to the industry as vehicles have grown more reliant on technology.

That assumption proved false. Consumer appetite for cars actually increased in Q4 of 2020 compared to sales numbers from the same period in 2019, leaving carmakers scrambling to get back in gear to meet this unexpected demand. Unfortunately, their semiconductor suppliers had already committed to producing chips for the consumer technology industry, which was booming in the new work-and-learn-from-home landscape, leaving automakers empty-handed.

While an unprecedented situation like the pandemic makes some leaps in deduction necessary, making decisions based on gut instinct alone can be dangerous. Leveraging historical data whenever possible to anticipate surges and track trends can help shippers gain visibility and avoid too many nasty surprises.

Lesson #2: Prioritize flexibility

Two of the key factors making the semiconductor shortage so damaging to businesses are that the more advanced chips can take up to six months to create and, in some cases, have no possible substitute. That means there’s not a lot that companies can do to pivot production until the shortfall clears up—but there are other ways they could have built flexibility into their supply chain to minimize the fallout.

For one, balancing the desire to operate cheap and lean with a more cautious approach to managing supply chain risk could have put companies in a better position to weather temporary shortages. Short-term savings can be alluring, but the long-term costs of leaving your supply chain vulnerable can be devastating.

On the transportation side, with the container shop logjam creating capacity constraints and delays, having backup plans in place could have gone a long way. By forging relationships with a variety of carriers early, for instance, shippers would have been better positioned to find alternative modes and routes when the ports became impassible—before all their competitors picked up the phone and caused rates to skyrocket.

While there are many more lessons that will be learned from this shortage and others like it, one thing is clear: in an age of disruption, flexibility and visibility are non-negotiable elements of effective supply chain management.

Find out how CTSI-Global can help you achieve them by contacting us today.