As Mike Regan, Chief of
Relationship Development for TranzAct Technologies, recently discussed on www.logisticsmgmt.com, transportation costs could see rate
increases of 15% to 20% over the next three years. There are multiple trends driving these increases, but among the key points are the change to Dimensional (DIM) parcel pricing by UPS and FedEx (among others), the impact of meeting expanding regulatory requirements (think safety, fuel efficiency and emissions reductions), and no end in sight to the challenges in driver recruiting and retention, which is pushing labor costs higher and impacting capacity.
Add in the changing delivery demands such as increasing last-mile volume and tight capacity supply for some niches, and it seems a given that transportation costs are going nowhere but up.
Rising freight costs impact the bottom line. So – have you briefed your c level executives
regarding the future of transportation costs?
No one likes to be blind-sided, especially by bad news. As the saying goes, “Bad news doesn’t age
well.” Executives want the opportunity
to proactively look for solutions rather than dealing with fallout. They also need to accurately forecast and
plan for the future and that means it’s critical that they have this
information. But how do you know what’s
going to impact your organization? What
are the options for managing the future changes and increased shipping costs?
You know your boss is going to ask – and that’s where a great
fulfillment partner can help.
Transportation is the backbone of their business, and they’re on top of
the trends and working on ways to optimize their options to their partners’
benefit. Talk to Vision – we can help you
understand and plan for your transportation future.
Vision Consumer Products Fulfillment has decades of experience and industry expertise in consumer products fulfillment services. No matter who your customer is, we treat your customer as our own. We know what makes a raving fan out of an individual customer, as well as what makes a business partner trust you with their business. Call or email us to learn how. We’re certain we’ll be the best fulfillment warehouse partner you have ever had!
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