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Checklist for Creating a Capacity Capture Plan
For logistics leaders, continued supply chain volatility has increased the use of shorter-term contracts and reliance on the spot market to access freight capacity. According to FTR Transportation Intelligence, contract truckload rates are 10% higher year-over-year. Rates are expected to remain above that level for the remainder of 2021 — and likely beyond.
To assist shippers in capturing more capacity, we developed a checklist to identify opportunities with current carriers, as well as new sources.
Core Carriers
Source New Capacity
Source Spot Capacity
Mode Optimization – Dedicated Capacity
Mode Optimization – Intermodal (IM) Capacity
During times of extreme uncertainty, we advise shippers to keep a closer watch on carrier compliance, accountability, and remediation. Shippers must set expectations, collaborate, and continuously monitor with their core carriers. This includes prioritizing detailed service failures as well as primary tender acceptance tracking. If lanes are underperforming, work to find a mutually beneficial solution where the core carrier agrees to keep partial awarded volume and the shipper agrees to resource the remainder of the volume. In addition, shippers must consider new bid strategies including more frequent bids, pre-negotiation with current carriers, seasonal bidding and adding new carriers to the network.
Shippers can create smoother and more predictable flows through better collaboration with their customers, carriers, and supplier partners. Using the checklist above, shippers can drive efficiencies and optimize network and carrier performance.
Source: “Tight trucking capacity won’t ease until later in 2021,” Supply Chain Dive, Matt Leonard, April 6, 2021
Ben Cubitt is SVP of Network Services & Consulting at Transplace.
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