Supply Chain and Logistics Trends We Expect in 2023

By Len Batcha, CFO/President

Technical Transportation, Inc

As we end 2022 and head into 2023, it seems like we’re in a fog. It’s difficult to develop a strategic plan based on the current inflation and economy, so it’s equally hard for companies in the supply chain and logistics industries to make concrete predictions and decisions.

However, based on what we can indeed see through these murky times, we can note several trends that companies should consider as they begin the new year.

Uncertainty Will Remain

The current uncertainty and apprehension will likely follow us into 2023, largely due to uncertainty in the economy, which is driven by record inflation and high fuel prices.

In addition, now that the midterm elections are behind us, there are questions about potential policy changes that could affect the overall economy and the supply chain specifically. Those will begin to take shape in the first half of the new year.

Perhaps there’s a bit of good news despite the uncertainty, as consumer spending has grown again this past holiday season, although not at the torrid pace we saw in recent years. In early November, the National Retail Federation forecasted that overall retail sales would grow 6-8% this season, compared to a growth rate of 13.5% last year.

Following a more robust than anticipated Black Friday/Cyber Monday, the organization noted that its growth prediction was on target. At the end of the season, Mastercard data confirmed the forecast, saying retail sales grew 7.6%.

Amazon Announcements a Bellwether?

That good news was contrary to Amazon’s announcements in Q4 2022, when the retail giant shared plans to lay off more than 20,000 employees.

In addition, Amazon Founder Jeff Bezos advised consumers to hold off on purchasing big-ticket items such as cars and appliances during the 2022 holiday season amid growing concerns about a potential recession in 2023.

These announcements, coming during the busiest time of the year in retail, tell us that Amazon is concerned about consumer spending and is cutting its own costs to remain profitable.

Could these moves be a potential bellwether for things to come in the supply chain and logistics spaces as well? We think it’s something to keep an eye on in 2023.

Supply Chain Issues Will Still Exist

There are still supply chain shortages with certain products, especially among big-ticket items such as automobiles, trucks and SUV’s. That is a concerning trend for the entire industry, and one that we hope will improve in 2023.

The good news is that supply chains in some vertical industries, particularly the medical and medical device spaces (where TechTrans has a core competency), are expected to remain strong in 2023.

That said, those industries may face supply shortages as well, which could delay the release of products, but not to the point where it would keep manufacturers in those industries from having a potentially strong 2023.

Election Impacts

The U.S. elections in November 2022 yielded a new crop of politicians, with a pretty stable Senate but a turnover in the House of Representatives slated for this January. Overall, we don’t expect big changes nationally.

On the state level, however, we witnessed stronger division and polarization, where “red” states got redder and “blue” states got bluer. That could potentially result in varying legislation from each state and companies having to adjust to policies and economies on a more localized level.

Emphasis on Quality Assurance and Control

Finally, we believe that quality assurance and control will play a bigger role in the supply chain and logistics industry in 2023. Many companies are evaluating their data and processes to find new ways to boost profitability by ensuring quality and efficiency.

That includes recruiting new talent to serve as quality liaisons between sales and operations to ensure that the customer experience is optimal. It also means meeting and exceeding quality standards for specific industries, whether it’s FDA regulations or ISO standards.

Though the crystal ball is not yet clear for the coming year, we do expect some uncertainty in the market, as well as swing toward operational adjustments that will positively impact the bottom line. If you need support optimizing your supply chain, we’re here to help.

Here’s wishing you and your companies a successful and prosperous 2023! Let us know how we can help you today.

Why the Logistics Industry Offers a Great Career Path Today, Despite Current Challenges

By Rena Mundy, Human Resources Manager

Technical Transportation, Inc

The supply chain and logistics industries require in-person, non-virtual people to get the job done. Since the beginning of the COVID-19 pandemic almost three years ago, however, finding people to fill needed positions has been very challenging for most logistics companies.

Since the original shutdowns that stopped almost everything, followed by the Great Resignation, the U.S. supply chain has been in a state of constant disrepair that has been driven largely by labor shortages.

Earlier this year the U.S. Labor Department reported that there were 5.5 million more job openings than there were workers available to fill them. A recent Washington Post report also noted that a scarcity of skilled supply chain workers in the U.S. is still a big problem. On the positive side, the Labor Department reported in November that the transportation, warehousing and utilities sector had the third-most new hires compared to other industries for the month.

Despite recent struggles, the supply chain management and logistics industry continues to evolve and is becoming a field that can offer high-growth job opportunities for people of any age, background, education level or skillset.

Data Opening New Doors

One area where logistics is growing is data analysis and quality assurance. Logistics companies are turning more to people holding advanced degrees in supply chain management to fill those positions.

Virginia Goss, an operations specialist at TechTrans and a recent MBA graduate from the University of North Texas, says that as logistics companies are using the data inherent in their businesses to make better decisions and improve customer experiences, they’re also creating new positions to analyze and interpret that data.

“While many supply chain companies need people to fill positions in the warehousing and delivery side of things, there is also a growing need for people to analyze the business – operations, quality assurance, etc.,” says Goss. “Having in-house consultants is a big thing right now. Even manufacturers, who traditionally wouldn’t employ supply chain analysts are looking at adding those positions now.”

Moving Forward

Looking ahead, the supply chain and logistics industry will continue to play the vital, if not underappreciated, role of keeping the economy moving, literally.

Over the next five to ten years, we expect that job opportunities in the U.S. logistics industry will continue to grow and perhaps diversify as they bring some capabilities back stateside. This comes in the wake of post-COVID supply chain disruptions and the need for companies to mitigate broad-ranging disruptions in the future.

In addition, new technologies like automation will continue to mature and open new job opportunities as the industry strives to become more efficient and effective in the years to come.

If you’d like to learn more about growing your career in the supply chain and logistics industry, contact us today.

The Railroad Strike of 2022: What it Means if the Temporary Deal Doesn’t Hold

By Len Batcha, CFO/President

Technical Transportation, Inc

Today, the logistics industry is at a crossroads. Expanding e-commerce operations and online marketplaces are driving record volumes of parcels, packages and freight. The rise of on-demand services has transformed how goods move from point A to point B.

In response to these new demands, shippers and carriers alike have invested heavily in technology solutions, such as blockchain networks and artificial intelligence. These investments–which can be carefully planned for and managed–will help companies streamline operations and cut costs over the long term.

Yet, no matter how many advancements we introduce to better manage the supply chain, there will always be one aspect that is more tenuous and more difficult to manage – and that is the workforce. The recent prospects of railroad labor strikes brought this to the forefront and raised concerns about the impact on the supply chain if the temporary deal struck by the current administration doesn’t hold. In this blog post, we’ll explore this impact in greater detail and how those in the supply chain can prepare.

Why Labor Strikes Are Becoming More Common in America’s Supply Chain

The most recent railroad disputes this month involved pay and working conditions. A strike would have affected not only commuters who rely on the railway to get to work but also a portion of the nation’s energy supply, material supplies and parts to manufacturing facilities, drinking water and other commodities destined for end consumers or strategic reserves.

Unfortunately, the possibility of labor strikes is becoming more common in the supply chain industry due to several factors. This includes:

• Union Membership Declining – Over the past few decades, the union membership rate in America has declined. The portion of employees who are union members fell from 20% in 1983 to 10% in 2021. Union members in transportation and material moving occupations represent only 12% of the total number of workers in the industry.
• Automation & AI – Rising levels of automation and increasing adoption of AI have also contributed to the recent rise in labor strikes. As more companies look to automate manual tasks and use AI to drive more complex processes, there is a greater chance that workers will feel threatened.
• Outdated Equipment and Facilities – A lack of investment in the supply chain infrastructure has made working conditions a concern for workers’ health and safety.

The Economic Impact of Strikes

Labor strikes can have significant impact on not only the supply chain, but the economy as a whole. In fact, the Association of American Railroads estimates that a nationwide shutdown of rail operations could cost $2 billion in lost economic output each day.

A strike could also have significant impact on shippers and carriers, including:

• Increased Costs – One of the biggest impacts is the increased costs for shippers and carriers. Shippers face increased costs due to route delays or the need to find alternative modes of transport. Carriers face increased costs due to the need for higher wages and the likelihood of increase in transport-time costs. Some additional costs could be incurred if temporary workers need to be hired and more vehicles leased to make up for the shortage. This has direct impact on the bottom line for most companies involved.
• Delayed Deliveries – Another major impact is the potential for delayed deliveries. Shippers and carriers may need to find alternative routes to avoid striking areas. This could result in longer transit times, delays, and potential order cancellations.
• Product Disruption – Finally, there is a risk that strikes could impact how products are distributed across the supply chain. If a strike occurs at a port where exports are shipped, there could be a disruption in moving goods to their intended markets. Alternatively, if a road or rail strike occurs, there could be a disruption in the flow of imported goods.

Mitigating Risk During a Strike

In order to minimize the impacts of a potential railroad union strike, supply chain companies, 3PLS and other businesses caught in the middle should create a plan of action, with contingencies outlined and in place, should a strike move forward. Having this crisis plan ready will ensure you are minimizing downtime and not reacting to circumstances that may drive prices even higher or cause additional disruptions.

Components to a plan of action should include:

• Transportation Strategy – It is crucial to have a contingency plan in place to transport goods should a strike occur. In the event of a railway strike, having trucking, airways, and ocean liner accounts setup and ready to go will be critical for maintaining transport flow. Also setting up alternate routes that circumvent any strike areas can help offset potential delays. Be sure to also communicate these plans and pricing to customers, so there are no surprises if your alternative plan/s need to be implemented.
• Inventory Management Strategy – Inventory management is crucial during a strike, but needs to be planned carefully ahead of time. There are two ways to manage inventory during a strike: Replenishment and Minimum Inventory Strategy.
  • Replenishment – this strategy is used to keep your inventory at just the right level to meet expected demand. It can also include stockpiling inventory to maintain extra inventory and mitigate any potential disruption in the supply chain. This may be advisable in situations where the outcome of the strike is uncertain and there is a high risk of disruption.
  • Minimum Inventory Strategy – This strategy is used to keep your inventory at a consistent level that allows you to meet customer demand under all circumstances. You will have to keep a close watch on inventory levels and be ready to act if there are any signs of a shortage. This strategy is ideal for helping offset costs incurred with surplus inventory but requires more timely and reactionary management.

In the end, a well-prepared supply chain can better minimize any impact to operations, should a strike move forward down the road. Let us know how we can help you today.

How 3PLs Can Assist Manufacturers with Supply Chain Modeling

By Virginia Goss, Operations Specialist

Technical Transportation, Inc

Supply chain modeling is typically defined as the processes needed to better understand a manufacturer’s supply chain – all with the goal of bringing order to the company’s operations while achieving company-specific objectives such as lower costs and higher customer satisfaction.

While there are many steps and processes on the production and inventory side of supply chain modeling, many companies do not have the resources or expertise to incorporate the part of the supply chain that involves your product making its way to the end customer. For most companies, this can involve additional warehousing, distribution, first and final mile delivery processes.

Ideally, a 3rd Party Logistics (3PL) partner can help companies manage and optimize this part of the supply chain for increased efficiency and cost savings. In fact, a 3PL should make a manufacturer’s supply chain modeling and operations simpler and more efficient overall. Some ways they can accomplish this include:

• Becoming your single – source logistics provider – The ideal 3PL firm will take the lead on your logistics so you don’t have to worry about it. They should manage all the moving parts (the people, the products, the invoices) and you should only have to deal with one person and one bill.
• Expediting delivery – 3PL partners should have a network of carriers and delivery providers who can tailor expedited delivery options to meet your needs. For example, at TechTrans, we recently added Grand Aire to our network, expanding our client’s delivery options and capabilities. With this new provider, our customers can even arrange emergency hand-carry delivery of essential items.
  Using a 3PL partner with a nationwide network of transport options allows a manufacturer to realize the savings that comes with the 3PL’s preferred status.
• Creating flexible warehousing – Building in efficiencies into your supply chain can also be achieved through creating temporary or permanent strategic warehousing hubs across the country at 3PL-owned or rented facilities. This approach lets manufacturers use more economical intermodal options like full truckload inventory deliveries to these hubs so they can be continually and efficiently stocked to combat supply chain shortages or delays and reduce the overall transportation expenses.
  The 3PL teams can then ensure same-day or overnight delivery from these facilities to customers to meet on-demand needs. The warehouses can even be used by the 3PL as a local pick-and-pack distribution center.
• Providing enhanced tracking – Any quality 3PL will have electronic shipment tracking as part of their logistics process, usually in the form of a mobile app or online portal. But the top providers will go a step further and include enhanced features such as waybill visibility, proof of delivery, photos of delivery, on-demand activity reports and more.
  This offers manufacturers a real-time view for where their shipment is and allows them to incorporate all shipping stages into their internal reporting.
• Managing the final mile (plus) – 3PLs naturally handle the transportation and delivery of products, but how they do so and the value-added services they provide make all the difference.
  The best providers offer in-room white-glove delivery for high-end and sensitive products, but also go a step further by training their staff on how to set up, install and instruct users on those products so they’re ready to use. Having the 3PL manage this function allows the manufacturer’s field service teams to focus on revenue-producing service calls ultimately saving time and resources.

If you’re looking for a logistics partner who can assist with supply chain modeling, then contact us today to learn more.

Rate of Inflation, Supply Chain Costs and Our Response in 2022

By Len Batcha, President and CFO

Technical Transportation, Inc

By now, you’re probably aware of the skyrocketing rate of inflation hitting global economies. But who will end up paying for the rise in costs? The bottom line is that it has trickled down to us as individuals and families, so it is the end consumer who will be burdened to pay for these increases throughout 2022 and most likely beyond. Finding a way to navigate these changes with minimal disruption to your personal finances is a challenge in itself.

Inflation is real, and the current increases are more dire than the general consumer is realizing at the moment. It’s truly a perfect storm of circumstances and government policies that have led us to this situation.

One of the leading factors has been the influx of money into the economy through the U.S. Payment Protection Program (PPP), unemployment compensation and other initiatives that flushed money falsely into the economy and gave consumers and businesses an inflated sense of financial security while increasing the U.S. deficit.

As the markets were flooded with this money, it generated greater consumer demand for products and supplies. Many producers and manufacturers, however, haven’t been able to keep up with this demand due to a lack of resources and labor because of persistent pandemic lock downs all over the world.

In the U.S. supply chain industry, the Great Resignation last year further contributed to bottlenecks as workers opted to stay at home and receive their unemployment compensation rather than taking jobs at strategic ports and other supply chain processing facilities.

So now, as the inflation rate is hitting hard, almost everyone is feeling the financial squeeze. That results in employees and job seekers asking for higher compensation to pay for higher fuel costs, and price increases the highest in over 40 years. And it ultimately means that companies in the supply chain industry must raise prices to stay competitive while trying to achieve profitability.

Getting Granular About Price Increases

We understand there is a lot of fear about price increases among manufacturers and shippers. That’s why, rather than doing blanket price increases across the board, at TechTrans we’re looking at individual clients, down to the product level, to determine if services and rates would justify an increase and which customers/services are already performing at an optimum level.

Our goal is to minimize this burden to our clients as much as possible. By using an analysis tool, we can calculate the best way to determine which fee increases will need to be adjusted, or where we might potentially only raise prices on a case-by-case, client-by-client, and even service-by-service basis.

What we evaluate includes (but is not limited to):

• Fuel costs – What clients are under FSC (Fuel Surcharge) agreements with the standard national rate?
• Divisions within a company – Down to the client/modalities, we look at the historical data, evaluating shipment history and averaging out the gross profit as a whole versus shipment by shipment.
• Service charge increases – We will consider passing on to underperforming clients.
• Clients under contract agreements – Some agreements have built in rates not to exceed a certain % annually. These annual increases are usually maxed at 1-3%.
• Claiming “force majeure” on contracts – In some cases where contractual agreements limit the amount of increase we can pass along, there is an opportunity to claim “force majeure” from the recent pandemic to override those terms and enable a higher increase based on inflation rates for 2022.
• Well-performing clients – These may not see an increase if their gross profit margins are good.

At TechTrans, we don’t want to be just a service provider for our customers. We want to be a value-added partner that has our clients’ best interests at heart. That’s why we’re against blanket price increases for our customers. We’re willing to go the extra mile to analyze each account granularly and help ensure that these challenging times have a minimal effect on our clients’ businesses.

We’re always ready to help you with your supply chain and logistics needs. Reach out today if you’d like to learn more.contact us today.

How to Decide What Intermodal Approach is Best to Transport Your Products

By Len Batcha, President and CFO

Technical Transportation, Inc

The recent supply chain issues have brought global attention to the orchestration of logistics. When shipping runs smoothly, most people don’t notice the processes behind getting their vital goods and equipment. When the system breaks down, even a little, everyone feels it like ripples in the water after casting a stone.

As a logistics company specializing in getting technical, sensitive and bulky equipment safely to its destination on time, supply chain solutions that ensure these outcomes are always the first priority for TechTrans.

Enter intermodal transportation, a system that, while not a recent innovation, continues to be a topic of discussion and popularity as it provides multiple options to logistical kinks globally. Beyond that, it has benefits that translate to outcomes ranging from a better bottom line for companies to a cleaner environment for all.

Basically, intermodal shipping refers to loading goods into containers that can then be smoothly transitioned between various transportation modes. Air, boats, trains and trucks can all easily accommodate standardized shipping containers.

State of Intermodal Logistics Today

According to ResearchAndMarkets.com, the intermodal freight transportation market is expected to register a CAGR of 8.27% between 2020 and 2025. As companies evaluate new ways to reduce freight costs and their carbon footprint, alternative transportation mode options should be considered when moving freight long distances.

TechTrans’ use of domestic intermodal transportation systems means more efficient delivery and a better bottom line for our customers, as we can plan and smoothly adjust how an item moves through the transportation network to suit scheduling and budget needs in a variety of ways. This process also translates to better protection of the goods we ship, regardless of distance and transitions in the network.

The combination of efficiency and safeguarding is imperative when it comes to vital and sensitive medical equipment arriving at its destination on time and intact, for example.

As a product moves through the transportation supply chain network, it stays in its original container. The individual transporters don’t need to handle the product itself, which can be loaded directly into the container by the manufacturer.

Once a product is securely packed into the container, it may then be transported on a ship, plane, truck or by rail without being functionally jostled or moved until it reaches its final destination.

Things to Consider for Intermodal Shipping

There are pros and cons to sending an intermodal container through various branches of the network. These include:

• Ground/Truck: This is an efficient, flexible mode of transport, and transportation lead time can be predicted and calculated based on mileage and the availability of equipment and drivers. Trucks can be stopped or rerouted easily if demand or conditions change. Trucks and drivers are generally part of any supply chain network and are usually employed on the front end. They load and initially transport an item to a port or hub; and on the delivery end of the chain, retrieve the container from a local hub and ensure it reaches its final destination.
  • Pros: More cost-effective than air. Better transit time than rail or ship. Can reach destinations that are inaccessible to other carrier types.
  • Cons: Longer transit time than air.
• Rail: Universal containers can be easily transitioned to rail service and can cover the distance efficiently. A train has a higher capacity to transport multiple containers, making it more environmentally friendly than truck transport.
  • Pros: Most cost-effective method if speed isn’t the top priority.
  • Cons: Longer transit times due to train schedules and stops.
• Air: Larger airplanes, including some passenger flights, routinely accommodate intermodal transport containers, and can leapfrog over other transport methods. However, space and weight limits make this a premium option.
  • Pros: Fastest transit times, making same-day or next-day delivery options more feasible.
  • Cons: Container sizes are restricted according to airplane capacity, which means it’s notas dimensionally friendly an option as ship, truck, or rail. Tends to be the costliest method of transport.

Deciding when to utilize each of these methods depends primarily on the customer’s needs. If we need to prioritize cost savings over speed, we might forego air transport in favor of slower but more efficient modes like rail and truck. If there’s a narrow window to get an item to its destination, we’ll prioritize speed.

If you have any questions on intermodal transportation, and which option might be best for you, contact us today.

Supply Chain Technology Trends That Will Grow This Year

By Len Batcha, President and CFO

Technical Transportation, Inc

While there is still so much unknown about supply chain shortages and delays in 2022, we are all hopeful this year will mark the end of the COVID-19 pandemic and a switch from merely surviving to thriving for individuals and companies around the world. We also believe this year will mark the continued advancement of several supply chain technology trends that will shape our industry for years to come.

The supply chain and logistics services require organizations to make sure they meet customer deadlines while being compliant with Quality and KPI (Key Performance Indicators) expectations, through automation technology advances that assist employees make operations processes run more efficiently, while allowing stakeholders better visibility into product movement and availability.

There are three supply chain technology areas where we expect to see significant improvement and growth this year.

Automation/Data Analytics

Automation and data analytics have made great strides in the past few years. Although there have been recent supply chain bottlenecks and delays across the globe, those setbacks have actually given companies more time to test automation technologies so they will be prepared for peak seasons as things open up fully this year (we hope!).

That said, we believe automation and data analytics will continue to be huge players in the supply chain technology conversation this year and in the years ahead.

By automating and digitizing supply chain processes, companies can achieve levels of efficiency they haven’t experienced before. Similarly, by using data analytics to gain better insight into the data that is inherent in each company, management can make better, more informed decisions. We also believe that machine learning, artificial intelligence (AI) and augmented reality (AR) solutions will continue to emerge as our industry becomes more data-driven and automated.

Mobility

Whether you’re delivering to businesses or consumers, the final mile has become more important than ever, and supporting technologies will continue to grow this year. Namely, mobile- and browser-based tracking solutions will become even more mainstream and ubiquitous if they haven’t already.

Thanks to big-box ecommerce retailers such as Amazon, Walmart and others, both consumer and business buyers have come to demand a higher level of communication and visibility for each of their product deliveries. This trend will continue this year and beyond to become a standard part of doing business.

Secure access to final mile information via mobile apps or mobile-responsive website portals benefits customers and supply chain companies alike. The information should be easily accessible via order number or PO number and associated tracking numbers and should include relevant delivery details for all products in transit. In addition, relevant contact information should be made readily available should the customer have any questions or issues.

GPS/RFID Tracking

For high-end, mission-critical technology, equipment and other items, supply chain companies can go a step further and track products with RFID chips and GPS as the technology becomes more affordable. This is particularly helpful for items that are being shipped internationally by air, land or sea.

Given the recent supply chain struggles, particularly with issues at U.S. ports on the West Coast, we believe this technology will receive a boost in 2022 as more companies (and even consumers) will want more precise information on the status of their big-ticket items.

While it may not make fiscal sense to track every single item in every situation, supply chain companies will likely start using GPS and RFID tags to track pallets or even containers. Logistics managers and recipients alike will be able to map out exactly where their products are in the world and give more accurate arrival and delivery information.

If you want to learn more about how supply chain technology can benefit your operations, feel free to contact us today.

Supply Chain and Logistics Trends Heading Into 2022

By Len Batcha, President and CFO

Technical Transportation, Inc

The year 2021 has certainly been dynamic and has no doubt been shaped by the fallout from the COVID-19 pandemic. From the economic strains caused by 2020’s lockdowns to the supply chain issues and port backlogs, the year has had its share of challenges.

Yet as we close out the year and start 2022, we look ahead optimistically, and hope that we – as an industry, as a society and as a global economy – will be better equipped to navigate any new developments or changes that may emerge in the coming months.

From where we sit right now, we see several primary trends emerging as we ring in the new year.

Supply chain issues at ports will improve

For the better part of the year, we’ve all seen images of the lines of container ships anchored off the West Coast, waiting for their chance to unload their goods. A lack of dockworkers and truck drivers – due to a range of issues stemming from COVID-19 mitigation measures and government stimulus – led to an unprecedented backlog.

As of today, we believe this backlog is beginning to improve and will continue to be resolved in the first half of 2022. In recent weeks, containers have been processed more efficiently and are moving through, and away from, the ports to their intended destinations.

This is great news as we head into the holiday shopping season, especially since many consumers and retailers kicked off Black Friday and Cyber Monday sales weeks in advance, anticipating potential supply chain delays and product availability issues.

The economy is making a rebound

Thankfully, the U.S. economy continues its v-shaped recovery following the COVID crash of 2020. Right now, it appears we’re in the midst of a sustained rebound, one that is even stronger than we anticipated.

Consumer spending is doing quite well, and in B2B vertical markets, we’re seeing lots of purchasing in industries such as healthcare, cash automation and retail technology.

In our part of the supply chain and logistics industry – we deal with a lot of technology and heavy equipment product manufacturers – we’re noticing a steady rise in requests for our transportation, delivery, white-glove and demo-move services. Given current indicators, we expect this reboot to continue well into next year.

Domestic Manufacturing/Warehousing to Increase Again?

The recent breakdown in U.S. supply chains has opened the eyes of many manufacturers, and many companies are adjusting their infrastructure to make sure they’re not caught off guard again down the road.

We’ve already seen manufacturers in some industries announce new factories and facilities domestically, and we think that trend may continue. We also think manufacturers may modify or shift away from JIT (Just in Time) and Six Sigma methodologies and choose to keep min/max levels of inventory on-hand in state-side warehouses to minimize future shortages like the ones we are now seeing.

At TechTrans, we’re experiencing a move towards more hub warehousing strategies by our clients in regional warehouses across the country that then feed to localized distribution centers for speedy delivery when products are ordered.

Recruiting will be important in 2022

This year’s supply chain issues were due in part to “The Great Resignation,” where many workers chose to stay at home due to bountiful stimulus checks provided by the U.S. government.

We believe this Great Resignation is coming to an end because the stimulus money is now gone from several large states, and people will be forced back to work. This alone will not solve the industry’s problem, however.

For many people, their approach to work has changed, and they want to (continue to) work from home. The supply chain industry, though, is a hands-on field that requires the physical presence of workers to get the job done.

Therefore, supply chain and logistics companies will need to consider this in their compensation packages to attract the best talent. That said, for those workers who still want to compete in a free market society, this is a great time to participate and to seize the opportunities available.

While we don’t hold a crystal ball and can’t always predict the future, by reading the signs of the times, we do believe that 2022 holds the potential to be a better year as we continue to rebound and emerge from the past two years of the pandemic. We wish you a happy holiday season ahead and a prosperous new year.

What Exactly is White Glove Delivery?

By Louis Black, VP National Accounts

Technical Transportation, Inc

We use the term “white glove delivery” a lot in our industry, but what does it really mean to be able to offer this service? Truth be told, though there are a lot of definitions provided to the term, there’s no standard definition of it in the logistics space. It has a lot of different meanings and varies from place to place and company to company.

For some logistics providers, it’s simply means dropping off an item on your porch or loading dock. For others, it can be a much more comprehensive and careful process.

However 3PLs are defining it, most manufacturers today—especially those producing higher-end, technologically intricate, heavy weight or delicate equipment—expect more from white glove delivery. These companies will likely expect a more thorough approach to this service that ensures their products are delivered to end-users at their location of choice, in pristine condition and operationally functional, where relevant.

Exact specifics may still vary on a case-by-case basis, however, manufacturers who require more care for their product should, at a minimum, look for providers who can offer:

• Expert packing and crating that caters to the product’s needs and specifications
• Transportation in a suitable box truck (or larger) with a working lift gate
• A multi-person uniformed delivery crew with a professional appearance
• Inside delivery with specialty handling, using the right tools that protect the product and delivery personnel
• Unpacking and debris removal from site, leaving no messes
• Product setup and installation to ensure it is at the proper place and ready for the end-user to operate
• Product training, if needed, so end-users understand the product’s basic functions

An ideal white glove delivery partner will work with product manufacturers and end-users ahead of deliveries to create customized delivery plans that include site surveys as well as communication of expectations and deadlines/delivery times between all parties. Part of that communication should include tracking programs that can be monitored by everyone involved.

There should also be special considerations during this time of pandemic, including necessary personal protective equipment (PPE) for delivery teams and other protocols dependent upon the delivery setting. For example, a hospital, lab or other healthcare environment will likely have heightened requirements and restrictions for delivery personnel, and end-consumers may not want delivery teams in their homes without protective gear.

The ideal partner should also have additional expertise and services on hand for products or circumstances that require specialized help. This could include:

• Merge-in-transit services
• Product assembly and testing
• Regulatory compliance for the equipment
• Deliveries that meet specific date and time criteria
• Direct assistance from engineers and field technicians
• Reverse logistics including equipment destruction and decontamination

If want to learn more about white glove delivery services and what a customized plan looks like for your organization, feel free to contact us today.

Coordinating Efficient Equipment Swap-Outs in Today’s Supply Chain Environment

By Phil Burnette, Vice President-National Account Sales

Technical Transportation, Inc

To say that today’s supply chain environment is challenging is an understatement, and it’s centered largely around labor and supply availability, versus lack of demand.

Before the COVID-19 pandemic, there was already an ongoing truck driver shortage, but that has now been compounded by a broad-reaching labor crisis across many critical positions, including dock workers and other warehouse personnel.

This is due in large part to the pandemic itself, stiffening public health protocols and economic stimulus money that is keeping people home. It has left many manufacturers and logistics companies scrambling to get their products where they need to go in a timely manner.

Take for example a medical refrigerator replacement project that we’re conducting this fall for a major pharmacy chain. Because of COVID-19, many pharmacies like our client require more cold storage capacity, so they’ve turned to us to help them manage an efficient swap-out at more than 3,000 locations nationwide between now and Thanksgiving as their legacy equipment reaches the end of its lifecycle.

These types of projects, along with others involving complex and heavy-weight equipment, are often intensified by a number of variables requiring multi-step logistics coordination and fulfillment. It also highlights what manufacturers today should consider as they navigate this current supply chain environment. Following are some top issues to keep in mind.

The Need for a Single-Source Partner

Supply chains naturally have a lot of moving parts, and that has only become more complicated in the past year. Now, more than ever, manufacturers should consider partnering with a single-source logistics partner who can manage the entire supply chain on your behalf and leverage their contacts and relationships to help you reduce risk and increase efficiency.

More Advanced Pre-Planning

More pre-project planning is necessary today for manufacturers and their supply chain teams so they can find the most efficient way to do swap outs or upgrades in a single trip—especially given the lack of manpower available right now.

The inability to remove and dispose of old systems at the time of delivery and installation of the new units creates the need for a second trip to the site. This reduces the number of events that can be performed due to the lack of qualified labor resources.

Pre-planning teams also need to evaluate and consider special logistics and delivery requirements at each location.

Attention to Detail

Companies need to make sure their “i’s” are dotted and their “t’s” are crossed before any swap out or rollout begins. You need to have a detailed and customized supply chain plan in place to reduce errors and maximize efficiency.

One specific area to consider, if you’re disposing of old products during a swap out, is that regulatory agencies in some industries require proof of destruction and specific disposal processes due to the nature of the products handled. A valued partner will have the expertise to ensure these products are properly disposed of and will offer thorough documentation of their processes.

In addition, effective top-to-bottom communications is essential for all parties and stakeholders from the beginning. In the example of our pharmacy project above, our client did not efficiently communicate the message about the project to their local pharmacy personnel. This caused massive delays as we began the rollout.

Localized Supply Chain Operations

When rolling out new products, the ability to stage locally in temporary, flexible warehousing locations may help you attain new efficiencies and minimize the effects of the current labor shortage while reducing transportation costs.

For end-of-life products, by working with a logistics partner who has local resources, you can eliminate the expense of returning products to the manufacturing facility. In fact, on average, manufacturers can realize a 33% savings by disposing of products in the field instead of shipping those products back to their headquarters for disposal.

If you need help navigating today’s supply chain challenges, we invite you to contact us today with your questions.