upply chains are complicated and unpredictable, and shippers inevitably run into problems that
Many people don’t understand how loosely standard LTL servicers often use "expedited" terms. Often those shipments still follow the hub-and-spoke model, which is di¤erent
disrupt their carefully laid plans. Among the most important tools that shippers and their partners employ to contend with unplanned challenges is expedited shipping, which provides accelerated delivery speeds for situations when products or materials need to arrive as quickly as possible. Expedited shipping is a critical component of the supply chain, helping to ensure that shelves are stocked on time and missing materials don’t cause production shutdowns at manufacturing plants. “It would be great if everything always ran smoothly, and we could just send shipments to dedicated carriers without any issues, but we all know that’s never the case,” says Konrad Warzycha, vice president of solutions for Ohio-based EASE Logistics. Expedited is a smart solution for dealing with unexpected issues—and it can also play a strategic role in a shipper’s overall transportation plan. Here are nine key tips for effectively navigating the world of expedited shipping. EMPHASIZE EDUCATION It may seem obvious, but shippers who use expedited shipping should understand the service and all of its parameters. “If expedited shipping is a long- term need for a shipper, I suggest they learn as much about it as possible,” says Liz Wayne, owner and president of Able Transport Solutions in Omaha. A good expedited provider takes the time to educate clients on “how our world works” so they can make the best decisions for their business, she adds.
from true expedited shipping. — Chris Bland, Co-CEO, First Call Logistics
“They may be able to set the table with their customers, so to speak, preparing them for what to expect as well as market changes,” Wayne says. To start, shippers should have a clear understanding of what “guaranteed” or “expedited” services entail. “Many people don’t understand how loosely standard LTL servicers often use these terms,” says Chris Bland, Co-CEO, First Call Logistics, based in Indianapolis. “Often those shipments still follow the hub-and-spoke model, which is different from true expedited shipping. “Since COVID, we’ve seen a drastic increase in customers asking us to rescue shipments trapped at various terminals,” he adds. ASK: WHY EXPEDITE? AND WHY NOW? When considering expedited shipping, it’s useful to ask about the impact of not opting for it. “Shippers should ask questions such as: Do we need to get the product on the shelf? Do we need to get this part there for production?” Warzycha says. Shippers in the automotive industry, for example, are highly motivated to avoid an auto-line shutdown. For them, avoiding a production halt is a top priority. “If you get into that type of situation, whatever the cost is to expedite,
you have to pay it,” Warzycha explains. For packaged-goods shippers, however, the case for expedited may not be as clear. “If you’re losing out on $5,000 in sales and you have to pay $8,000 to get the shipment there, many shippers will choose to hold off on expedited and give up the $5,000 in sales because they don’t want to take a $3,000 loss,” Warzycha says. “It’s important to ask: Why does it need to be expedited? And what are the other options?” Sometimes a few hours can make a large difference in cost—if you can afford to wait. “Sometimes you have to pay a higher cost, but you also want to evaluate: Do I need this move now? When is the best time to buy?” Warzycha says. “Should I buy a truck or a trailer carrier tomorrow morning, as opposed to 10 p.m. or midnight tonight? We often suggest doing that because you’re able to buy a lot better.” The longer transit times associated with standard shipping put additional risk into a supply chain, increasing the threat of an out-of-stock situation or even a plant shutdown. The speed of expedited shipping mitigates that risk. Often, shippers determine that the longer transit time at a cheaper rate isn’t worth the risk associated with the consequences of a shipment failing to arrive on time. “That can be a tough evaluation to make,” says Eddie Sorg, chief operating of cer, asset- light for Arkansas-based ArcBest. DON’T “OVERBUY”
Don’t simply chase the cheapest transportation option because there are other costs involved: inventory carrying costs, plant shutdowns, and out-of-stock situations. — Eddie Sorg, COO, ArcBest
In order for shippers to avoid purchasing expedited service
July 2023 • Inbound Logistics 155
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