It's also important for shippers to understand that a shipping solution with multiple transit options can be a cost- effective approach to expedited shipping, but it depends on careful attention to details. For example, if only one pallet out of a six-pallet shipment is truly time-sensitive and the rest can be delivered through standard transit, it’s not necessary to use expedited for the entire shipment. “You can save costs by only expediting the portion that needs to get there ASAP,” Lane says.
the more affordable option, adds Sorg. “You don’t want to simply chase the cheapest option from a transportation standpoint because there are other costs involved: inventory carrying costs, plant shutdowns, out-of-stock situations. “Having a relationship with an expedited partner who can talk you through your supply chain, determine what’s critical and then introduce a solution that makes the supply chain more resilient and more robust to different capacity environments will help you win in the long run,” Sorg says. Emphasizing cost and choosing the cheapest option for expedited shipping carries particular risks because it can put the shipper in a major bind if the provider is unable to provide the necessary service. “You have to ask: Who will service the lane?” Warzycha says. “Trust is huge
Shippers should also understand the critical elements of their supply chain and know which components are clear candidates for expedited shipping when the need arises. “If shippers have optimized their supply chain, they know where their critical components are and they make sure to have those critical components covered,” Sorg says. “Often there isn’t a big evaluation of transit versus costs because that evaluation has already happened in the supply chain design.” DETAILS AND METRICS MATTER Ensuring that expedited aligns with established business metrics— in order to guarantee the best possible mode and carrier selection—is another important factor in the decision to use expedited. “The most effective shippers often establish cross-functional teams comprising customer service and transportation personnel to avoid con icting interests that might affect each other’s metrics,” Bland says. “Additionally, having readily available shipment information minimizes costs and maximizes a shipper’s full available network,” he adds. “Access to product dimensions, weights, and locations leads to informed decision-making when it comes to carriers, equipment, and mitigating transportation risks.”
CONSIDER ALL COSTS NOT JUST TRANSPORT Cost is not typically the top
priority when using expedited shipping, but evaluating all the costs associated with expedited shipping is a valuable part of the decision-making process. “Determine the downstream effects that delays or missed deadlines will have for the freight in question,” Lane says. “If you urgently need a pallet of products, cost will be lower on your list of priorities. “But if there is any exibility at all in terms of delivery time, you have more room to weigh your options and see if you can nd acceptable transit for a better rate,” he adds. Inventory carrying costs can “absolutely outweigh” expedited shipping costs, making a decision to use expedited
when it comes to expediting.” Keeping options open when evaluating cost and service is also
important for shippers. For instance, air transport services “can provide uniquely effective service offerings for door-to-door transport,” Lane notes. “Remember, the price you pay now for niche services like these are in the interest of avoiding potentially far greater costs in the future by keeping your business moving,” he says. EXPEDITE IS NOT A DIRTY WORD Expedited shipping can ll shippers with dread, but that doesn’t have to be the case. “Expedited has a negative connotation. It implies that something went wrong in your supply chain: the routing guide broke down, there was a breakdown in transit,” Warzycha says. “All shippers would like to avoid expedited shipments because they are stressful, and they create a whirlwind where you have to drop everything else to recover the shipment. But if you have the right partners in place — if you have a reliable, trustworthy, consistent carrier that you can use for transport — it really becomes a simple process.” n
E¤ective expedited shipping means urgent deliveries get to their destination on time. To that end, shippers should work with expedited providers o¤ering access to a range of transportation options.
158 Inbound Logistics • July 2023
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