Is it possible to save on transportation?
First, let’s take a look at the supply chain trends. Many facts affect supply chain performance.
For example, Amazon hiring at $ 17 per hour will surely drive-up costs for others. The question is will they get the 75,000 employees they seek given the current unemployment payments that, on average, when you consider that they are tax-free, represent $21.80 per hour? (And you have expenses like commuting, and you actually have to work).
Many sources and CEOs have noticed that finding a workforce has become more challenging. According to Wall Street Journal, “Over the years, the refrain of businesses complaining about how hard it is to find workers has become a bit like the boy who cried wolf. But now the wolf actually may have arrived. He is asking for a fatter paycheck.”
Additional facts
11.1% = Decline in truck availability.
11.8% = Increase in available loads on the U.S. trucking spot market the week ending May 7 (Source: Truckstop.com market index)
According to the American Trucking Associations, the truck driver shortage is over a record 80,000. And the economists teach us that the industry needs to increase drivers’ wages to reduce the deficit of drivers.
So, transportation, a major part of the supply chain, becomes more expensive, increasing customer prices.
Save on transportation is possible
T|WO has a proven solution to shipping fewer trucks that can mitigate those rising tendencies of equipment and driver shortages and labor and fuel costs. Using our instructions, a newly hired warehouse worker without experience performs as a professional with years of experience. In addition, load building optimization AutoO2 decreases the number of trucks on the roads, hence the carbon footprint and landfill waste, making our customers’ business more sustainable.
So, load building optimization AutoO2 brings the economy up to 8% of total transportation costs and sustainability and leads to our customers’ competitive edge.