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Proactive Solutions to Solve Capacity Constraint Issues

Posted by Jarrett on Mar 22, 2022 11:00:00 AM


economical-research-2021

 

There are tremendous capacity constraint issues throughout the industry due to the pandemic, economic fluctuations and labor and resource issues. These constraints are affecting companies in a multitude of ways, negatively impacting their bottom lines.

A prime example is the manufacturing industry. According to The Economic Times, companies have seen up to 300% increases in freight costs on container loads. These drastic increases are only amplified by reduced supply chain visibility and extended lead times as they work, and struggle, to fill those gaps.

 

Sales, finance, operations and procurement are squeezed, as they struggle to maintain adequate stock to be shipped to their customers. This is especially prominent with manufacturers who sell products with high levels of competition. Their customers have many options to choose from if they cannot fulfill orders on-time because of inventory shortages. In addition to increased freight costs and an inability to maintain adequate inventory, their reduced margins make it challenging to pass along freight increases to the customer to offset losses – ultimately putting their companies in jeopardy.

 

According to a recent article in Supply Chain Management Review, 47% of Americans believe the [product] shortages will continue through 2022. Steve Flagg, CEO and founder of Supplyframe, added “Supply chain constraints have hit a level not experienced in more than 30 years. Manufacturers can’t simply ride out these challenges.”

 

Proactive Solutions

These daunting challenges require flexible options – from various modes of transport, such as various LTL carriers, to streamlining missed opportunities, claims and overall performance levels. The key factors to mitigating these challenges: people and insights. With accurate data and related information comes the ability to have deep insights into your business, which can be leveraged to make better decisions that will positively impact your operations.

 

Customers who work with Jarrett have access to the JLS Routing Center and its logistics experts. Its experts look at key data and industry information to identify valuable insights into your business that can help you make more effective decisions during these turbulent times. JLS Routing Center professionals partner with our clients to uncover the right insights and information and create impactful plans of action, driven by regular reporting and communication, to greatly lessen capacity constraint issues. 

 

To learn how Jarrett can help you with proactive solutions to solve your capacity constraint issues, visit https://www.gojarrett.com/logistics.

Topics: transportation management

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