several strategic ways,” says Tommy Mello, who founded A1 Garage Door Service in 2007. His company now brings in more than $100 million annually and operates in approximately 15 states. “Garage doors are bulky, heavy, and require a lot of storage space, so improving supply chain efficiency has been a major priority,” Mello says, adding that by refining how it aligns supply and demand, A1 has cut inventory holding costs by 20% in certain scenarios. Expedited transportation strategies and real-time inventory tracking help ensure A1 isn’t sitting on a surplus of garage doors that aren’t immediately needed, he adds. Expedited shipping also helps A1 handle orders during sales events. For a garage door company, sales events might be aligned with local home shows or seasonal promotions. “While it may not be the typical holiday sale, these events still create urgency for customers to act,” Mello says. Expedited transportation enables A1 to meet customer expectations and maintain a smooth flow of products, even during the busiest times of the year. During the pandemic, supply chain disruptions caused a few setbacks. Along with garage doors, some shipments of springs, rollers, brackets and other components were delayed.
Glasses USA prioritizes customer satisfaction by expediting orders. It ships most glasses within a day or two, outpacing the industry’s typical 10-day lead time.
Moreover, given the poor reputation of some contractors, Green says his efforts to provide professional and timely service can pay off. “I rely more and more on my online reviews for future business too, so no one-star or two- star reviews aid my case,” he says. “The customer experience always matters, so it’s always worth it not to be late.” Green has also used expedited transport to overcome occasional supply chain disruptions. During some hiccups in steel production in 2023, for instance, his company was able to source materials from alternative suppliers and get them delivered quickly. “This kept our projects on track when others were facing delays,” he says. LOWERING INVENTORY COSTS The tighter control typically possible with smaller expedited shipment sizes can enable companies to improve their cost structure, says Michael Ernst, chief operations officer with Expedite All, which provides expedited small truck delivery solutions. He estimates that about 70% of the expedited shipments his firm sees are planned.
Expedited shipping can help companies lower inventory expense. These expenses include not just the cost of purchasing large quantities, but also the salaries of the warehouse employees and the software needed to manage larger inventory levels. Companies also need to consider the risk of a market shift that renders inventory obsolete or irrelevant. “Using expedited transportation has been a game changer for our business in
Alternative Roofing utilized expedited shipping to navigate supply chain disruptions in 2023, ensuring timely material delivery despite steel production delays. By sourcing from alternative suppliers and speeding up transport, the company kept projects on schedule while other roofing companies faced setbacks.
32 Inbound Logistics • November 2024
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