I want it now. We need it immediately. Get it here ASAP.
We live in a world of immediacy. Consumers demand almost instant gratification. Manufacturers demand expedited delivery to keep production lines moving. Retailers demand expedited freight services to keep shelves stocked. Labor disruptions, natural disasters, and geopolitical events can all result in the demand for rapid shipping.
With the varying demands for expedited services come a wealth of risks to fulfill customer needs. Managing the many risks associated with expedited freight delivery requires expertise, collaboration, real-time communication, advanced technology, and reliable service. RJ Logistics provides that and more.
The Ever-Evolving Risks in Today’s Supply Chains
Providers within the supply chain are being challenged to move faster than ever. But the challenges seem to be growing even larger — worldwide crises like COVID-19, Houthi attacks on containerships in the Red Sea, and the historic Panama drought, to name just a few.
Strategies for handling expedited freight demands have become critical in building supply chain resilience.
Navigating Downtime and Disruptions
Manufacturing downtime can occur for a number of reasons, including equipment breakdowns, parts that aren’t delivered on time, and shortages of components such as semiconductors.
The average annual cost of downtime for manufacturers is a whopping $255 million, according to an IndustryWeek study. That doesn’t include the companies that can’t put a number on it. Kimberly-Clark claimed more than 80% of companies can’t accurately calculate the true cost of downtime.
Software-as-a-service provider Tada said a McKinsey analysis “further illustrates the sobering reality: prolonged interruptions can erode up to 45% of a company’s yearly profit, with potential impacts of 30-50% on annual EBITDA.”
Inventory Shortages and Stockouts
Supply chain disruptions can result in inventory shortages and impact customer satisfaction, sales, and brand reputation. But shortages and stockouts can also be the result of poor inventory management and the lack of a plan for expedited freight needs.
“When a product becomes temporarily unavailable due to inadequate inventory management, it results in consumer dissatisfaction and lost sales,” Tada said. “On the other hand, overstocking can also give rise to complications as it results in the wastage of valuable resources, such as money and warehouse space. Ineffective inventory management ultimately leads to increased costs.”
Meeting Seasonal Demand Gaps
Seasonal spikes in demand, especially for industries reliant on holiday or seasonal sales, add urgency to the timing of expedited freight delivery. In retail and e-commerce, for example, if products aren’t available, consumers will go elsewhere.
Managing Higher Costs in a Volatile Market
Expedited freight services typically cost more than LTL or truckload and can strain supply chain budgets. Rapid delivery is often considered an investment to prevent companies from losing business in the short term and incurring higher costs in the long term.
Technology Integration and Real-Time Tracking
Advanced technology, from real-time tracking to predictive analytics, plays an important role in facilitating expedited shipping. Real-time visibility is absolutely critical when, for example, a manufacturing line is about to go down.
The Role of Expedited Freight in Mitigating Supply Chain Risks
Supply chain disruptions occur. Equipment breaks down. Stuff happens. Expedited freight services can play a critical role in how shippers plan for inevitable disruptions and deal with them when they occur.
Preventing Costly Downtime
Expedited shipping can reduce downtime by ensuring critical parts, materials, and products reach manufacturers quickly. Machine Design advises manufacturers to proactively trace their supply chains from end to end and gain visibility through data collection and analytics.
Maintaining Inventory Levels
The effective management of expedited freight is a critical tool for maintaining optimal inventory levels and satisfying demand.
“By optimizing inventory levels, streamlining supply chain operations, and enhancing responsiveness, businesses can mitigate the financial impacts of disruptions,” Tada said. “Improved inventory management not only minimizes excess costs but also bolsters cash flow and safeguards revenue streams. This proactive approach not only shields against immediate losses but also fosters long-term financial resilience in an increasingly volatile business landscape.”
A proactive approach should include having a trusted expedited freight services provider on speed dial to always maintain ideal inventory levels.
Supporting Seasonal Demand Peaks
Expedited shipping helps companies stock up quickly or replenish supplies to avoid missing revenue opportunities. Companies that take advantage of expedited shipping use it to prepare for seasonal sales spikes, ensuring products are on shelves when consumers are ready to buy.
“Retailers and e-commerce companies must work closely with their logistics providers to forecast demand, plan transportation routes, and allocate resources effectively to meet customer expectations. This requires careful coordination and communication between all parties involved in the supply chain to avoid delays and disruptions,” a Stanmore School of Business report said.
Making the Case for the Costs of Expedited Freight
Expedited freight services usually cost more than other shipping methods. But when weighing the cost of expedited delivery versus manufacturing downtime or product stockouts, shippers will find rapid shipping of critical goods worth the cost.
Downtime Versus Expedited Freight Costs
Although expedited freight can cost more than LTL, the cost of manufacturing downtime can be far more expensive – and result in lost business or empty shelves.
“If you absolutely need your product to arrive in a short amount of time, expedited freight shipping is definitely worth the cost. It’s still more affordable than air, faster than traditional freight, and guaranteed to arrive on time,” Truckstop.com said.
Inventory Shortages and Sales Impacts
Inventory shortages cost more than just the price of expedited shipping; they affect brand trust and repeat business. According to a Netstock survey, 43% of consumers were “likelier to ditch a product” after experiencing two or more stockouts, and 65% of respondents tried a new brand because an item was out of stock.
Netstock added, “If products are frequently out of stock, it may indicate underlying issues in production delays, transportation problems, or inventory management inefficiencies.”
Peak Season Demand and Lost Revenue
Managing seasonal demand spikes can require expedited shipping to support timely restocking – and meet revenue targets.
“By optimizing their logistics processes, leveraging technology, and building strong partnerships with suppliers and transportation partners, businesses can ensure that they are able to meet customer demand during peak seasons while maintaining a high level of efficiency and service quality,” the Stanmore report said.
Building Resilience Through Expedited Freight
While we can’t foresee supply chain disruptions caused by disasters like Hurricane Helene or the next consumer product to go viral, we can build resilience with expedited freight plans in place before disasters strike and shelves empty.
“As businesses navigate through the ever-changing landscape of consumer demands and market trends, the importance of planning ahead has become increasingly vital. In particular, the logistics of managing seasonal demand peaks can make or break a company’s success,” the Stanmore report said.
Combining Technology and Human Expertise
The Stanmore report said that on-time expedited freight delivery “involves coordinating transportation routes, managing carrier networks, and tracking shipments in real-time to minimize delays and optimize delivery schedules. By leveraging technology such as GPS tracking and route optimization software, logistics providers can improve visibility and control over their transportation operations, leading to faster and more reliable deliveries.”
Partnering with Trusted Carriers
Working with vetted, high-quality carriers can reduce the risks associated with expedited freight. RJ Logistics only partners with carriers that prioritize quality and efficiency – and deliver as promised.
We have formed strong carrier partnerships through a detailed vetting process focused on compliance, risk mitigation, safety standards, flawless execution, top-of-the-line equipment, and advanced technology.
Planning for Expedited Freight as Part of a Broader Strategy
Expedited delivery should be a key piece of an overall shipping strategy. At RJ Logistics, we work with our customers to develop their strategies for handling expedited freight – and then we deliver.
Our team works around the clock to keep shippers informed on the status of their freight. We require all of our partner carriers to be on MacroPoint, which gives us real-time visibility of all expedited shipments and provides 24/7/365 updates from pickup to delivery.
RJ Logistics: A Comprehensive Source for All Shipping Needs
Expedited freight shipping is a valuable tool for minimizing disruptions, but it does come with costs and special considerations. Shippers should evaluate their specific needs and make calculated decisions about when expedited freight is most advantageous.
At RJ Logistics, we work with our customers to develop their strategies for expedited services. We then deliver on those strategies. As experts in expedited freight, we have the skills to handle all priority shipments efficiently, and our dedicated team is always available to secure capacity and provide fast, dependable service.
We have you covered, no matter what it takes to deliver for our customers and no matter whether the need is for expedited, truckload, flatbed, or cross-border shipping.
At RJ Logistics, our mission is to deliver positive experiences for our customers, partners, and community through actions guided by our core values and principles. Schedule a call with RJ Logistics to discuss your expedited freight strategy.
