Author: <span>zipxpress</span>

When creating your supply chain, it’s vital to remember that every activity you’re doing leads back to one road: the customer. The customer is arguably the most important member of the supply chain because without customers, nobody would be in business. Building your supply chain to satisfy your customers will allow you to source proper materials that will make your supply chain more resilient. 

How is this done? When your business endeavors to get a clear understanding of what your customers value about your business and how you differentiate yourself, you can build upon your strengths. If you’re known for building a more reliable product, then customers won’t mind if you need to source higher quality parts/materials and take a little longer to do so. The story will be different if you’re known for efficiency and cost savings or customer satisfaction. Seeking out what your customers value from you has proven time and again to be a worthwhile investment.

By knowing what the customer values with your business, you can identify what threatens your ability to deliver your products and which risk mitigation measures will be most effective for your business. You can also utilize this information in regards to your suppliers and provide them with feedback on improving their supply chain as well. They can source better materials or direct you to another supplier in case there is a disruption. Creating these working relationships allows you to continue providing quality products to your customers in a timely manner while keeping true to your values.

It’s important to pay attention to the supplier’s impact on your supply chain, particularly the distance and shipping methods used when determining sourcing strategies. There was a long-held belief that parts/materials would simply be delivered no matter what, but it will be a long time until this will be the case. Understanding the distance and shipping methods allows you to develop contingency plans in the event there is ever a disruption.

Finally, we must understand the supplier’s costs associated with creating products. While nobody wishes to pay more, we must understand when it’s beyond the supplier’s control and assess whether their value as a partner outweighs these costs. It’s important to remember why your company picked your suppliers, oftentimes it was for reasons beyond cost. If we’re too focused on costs we may run out of suppliers and if we can’t have suppliers, then we won’t have a supply chain.

Here at Zip Xpress, we understand the patterns that can affect your supply chain. That’s why we strive to help our shipping partners and their customers ensure success with every delivery by scheduling pickup and dropoff times through a phone call. Our drivers also understand the importance of every shipment, providing friendly and helpful service while your shipment is in our care. If you’re looking to understand more about developing a strategic supply chain, we have a multitude of custom carrier solutions that can help every shipment of yours arrive on time and undamaged. To see for yourself, start today with Zip Xpress!

In our previous article, we discussed the importance of developing a ‘strategic’ supply chain for your organization. The first area in developing a strategic supply chain was to take a holistic view of the supply chain, rather than constantly putting out fires when things went wrong. This week, our aim is to discuss exactly how your business can develop a holistic view of your supply chain rather than spending your energy always putting out fires.

Visibility of Your Supply Chain

The first step is to define visibility for your organization. If you’re in need of one, a definition we’ve seen works well is asking: “Can we find all the components and move them from Point A to Point B when we need to?” Once you have your definition of visibility, the next step is to work on communication across the supply chain, since company silos ensure that a supply chain is less effective and resilient than an optimized one. Ease of communication to all parties involved in the supply chain helps create visibility and allows you to allocate the resources when and where you need them.

Plan for Multiple Contingencies

One of the interesting perspectives of a holistic supply chain perspective is the fact that they have multiple suppliers for all of their products/components. A lack of visibility often led to a lack of knowledge in alternative supplies that has hit many supply chains hard. Developing alternative sourcing contingencies is the heart of supply chain resilience. Simply having a backup plan in case a supplier doesn’t get you your shipment on time is vital, and sometimes it’s better to have a second and third contingency just in case.

Unity Across the Organization

Finally, the most important component in a holistic supply chain is the unifying belief of its importance across every department in the organization. Developing a holistic supply chain strategy starts at the top with every executive providing their input and follows all the way down across departments to the front line. One department may be concerned about cost, another one about the quality of components. When the executives determine the vision of their supply chain, such questions will be easily answered against the company’s values. Such a unified vision for a holistic supply chain will do wonders to inspire your team and help to grow your company as a result.

Here at Zip Xpress, we understand the importance of taking a holistic approach to your supply chain strategy. We stress the importance of communication in all that we do and provide continuous updates for every shipment that is in our care. Any time you call us, you’ll receive an answer on the phone from a person, never a machine and we’re always willing to help, whether you’re looking for an update on your shipment or a quote. Everything we do is for our customers and no matter what supply chain challenges you’re facing, we have a custom carrier solution that will help you get your shipment to its destination on time and undamaged. To see for yourself, start today with Zip Xpress!

There is little doubt that every shipper understands that their supply chain is critically important to their success. Yet recent research has concluded that 85% of shipping executives would only give their supply chain a rating of ‘average’ or below. Subpar supply chains cause multiple financial and operational challenges since companies need to deal with allocations of critical supplies and management of skyrocketing costs. The question becomes: how can companies develop an excellent supply chain, one that will fuel their growth?

The first step in evaluating your supply chain strategy is to assess whether your company has a transactional or strategic supply chain. Transactional supply chains tend to be focused on always putting out fires. There’s a belief that these supply chains are too chaotic and it’s impossible to ever ‘get ahead.’ Transactional supply chains are also too focused on the cost side of the equation, rather than focusing on the value provided by their supply chain partners. Finally, transactional supply chains exhibit a lack of awareness on their suppliers and customers patterns and how those impact their business.

On the other side there are strategic supply chains which tend to: look at the supply chain holistically, and are able to see how everything works together. They also focus on how the patterns of customers and suppliers impact their supply chain activities. Finally they operate with a proactive ‘fire-prevention’ approach, always evaluating their processes in response to changing market conditions. Now the question is: how can a company become more strategic?

Companies that are more strategic take the time and effort to create a written strategic supply chain and/or transportation management plan that defines how activities are managed and quantifies the investments that must be made to address their requirements. They also have written goals and objectives for their supply chain/freight activities as well as supply chain/transportation Key Performance Indicators (KPIs) that are reviewed on a monthly/quarterly basis. Taking the time to develop, write and incorporate your supply chain partners into your strategy will keep your business strong in the long run and allow your business to achieve incredible performance.

Here at Zip Xpress, we understand the importance of a dynamic supply chain strategy. Our services were designed to help companies meet their objectives and surpass their expectations, no matter the current operating environment. Our level of service and experience can help you devise a supply chain strategy that will help your business grow. No matter what challenge you’re facing, we have a custom carrier solution that will work for you. To see for yourself, start today with Zip Xpress!

If there is one thing that we can count on, it is the volatility of fuel prices. In an effort to provide stability against the ups and downs of the fuel market, carriers created and adopted a practice during the 90s to tie the price of fuel into shipping rates. This fuel surcharge was and still is added in addition to the price of the shipment but only as a means of protecting carriers against the volatility of the fuel markets. However, there’s a new challenge, one that threatens many carriers if it’s not properly addressed.

The Energy Information Administration (the E.I.A.) is a section of the Department of Energy (DOE) which provides ongoing analysis and projections of fuel prices for the United States. The E.I.A. has been in the process of developing new statistical methodologies of estimating on-highway diesel fuel prices and these prices were supposed to be viewable by the public as of June 13, 2022. However, June 13th was the last day that these prices were available to the public for nearly a month. Updates resumed as of July 7th, 2022. The E.I.A. cited technical difficulties for why these prices were not displayed, and most carriers simply used the June 13th rate as their go-to when creating contracts, regardless of market conditions.

The E.I.A. worked hard to get diesel prices live on their website, but they also announced that once prices were live, they would provide a comprehensive list of diesel prices from June 13th through July 7th. The E.I.A. is only providing information, why would this be a problem?

Well, as with all markets there was a degree of fluctuation in the prices of diesel during this interim. When carriers billed for services rendered during this interim, they were using diesel prices as of June 13th for their pricing. They were simply relying on the information they had available to them. Any volatility in pricing opens up the possibility that shippers and carriers who subcontracted between June 13th and July 7th will come back to challenge any and all discrepancies pertaining to fuel surcharges. Many carriers are worried about having to retroactively adjust their freight bills due to market fluctuations.

We would like to take a moment and assure any carriers that we have worked with during this time that we have no intention of calling attention to any discrepancies or ask you to retroactively adjust freight bills to reflect updates from the E.I.A. 

With that in mind, we’d also like to state that Zip Xpress has worked diligently to treat all customers with fairness in our pricing practices and would like to call attention to item 120 in the Application of Surcharges on our Rules Tariff:

“If for some reason the E.I.A. is not able to post the weekly index, the most recent prior posting will be used. If after a period of time of lapsed postings the E.I.A. publishes fuel prices for prior weeks, ZPXS will not retroactively adjust freight bills to reflect those updates.”

As you can see, we will not be retroactively adjusting freight bills to reflect the updates from the E.I.A. We are dedicated to providing all of our customers with the best possible service and we hope that shippers will understand that this was not an attempt from carriers to manipulate pricing, but only a means of operating and getting shipments delivered on time and undamaged. We look forward to serving you and providing you with the customer carrier solutions that will help your business succeed. To see this for yourself, start today with Zip Xpress!

If there is anything that we here at Zip aspire for, it’s better service. This mentality drives everything we do, from our procedures to how our drivers interact with customers. Yet when we hear over and over the lackluster service that so many carriers have provided to shippers recently, we can’t help but balk at such poor treatment. It is absolutely essential that all shippers receive the best service possible because shippers are the key to a dynamic supply chain. Shippers and carriers need each other and when one disrespects the other with poor service, conflict will become inevitable and not only will a customer be lost, reputations will be damaged as well.

Shippers no doubt face rising rates from their carriers and while most of these rate increases are inevitable – whether due to tightened capacity or rising costs, it doesn’t help when shippers see these rate increases paired alongside subpar or even poorer service. Shippers are in the business of creating products for their customers and carriers have the important responsibility of ensuring that those products arrive on time and undamaged. When a carrier breaks a promise of getting a shipment to its final destination in the pursuit of an ‘easier lead’ they’re only hurting themselves, because shippers always remember how a carrier treated them. 

It is vital that carriers set a better service standard for their customers. It was not that long ago when many carriers were facing their greatest challenges and the market has proven that it will always provide more challenges for us to overcome. As for the shippers: always remember that there are carriers willing and ready to take your shipments and provide you with the best service you will ever ask for. There are carriers willing and able to provide you with the options you need to build a better, more resilient supply chain, one that won’t leave you under the misguided belief that there is always another customer waiting in the wings.

Here at Zip Xpress, we understand the importance of better service to our customers. We communicate with customers every step of the way in their shipment, scheduling pickup and dropoff over the phone so that we can remain transparent. When you call Zip Xpress, you will speak with a person, never a machine because we don’t believe you need to wait for a call back in order to get your shipments moving. We also can assist with all of your shipping problems and guarantee that we have a custom carrier solution that will work for your business. To see for yourself, start today with Zip Xpress!

Detention is a policy that causes a lot of tension between shippers, carriers and drivers. For a definition, detention is the costs incurred by a customer for using the equipment beyond the given free time, typically outside of the terminal. This causes a lot of ire from shippers because they’re facing a shortage of employees in their warehouse, while it causes ire with drivers and carriers because they want the driver on the road tending to other shipments. The question then becomes: how can we navigate this situation and create a bridge between shipper and carrier that reduces or even eliminates detention?

For companies on the shipper side, many are facing labor shortages in their warehouses. As they try to find more staff, some companies are even willing to simply pay the detention fees as a ‘cost of doing business’ since their reduced staff can only work so fast in loading/unloading shipments. This is an unfortunate reality we face, however revising pickup and delivery times to accommodate the warehouse is a critical first step.

Another issue in this environment is when a broker tells a driver that a shipment is ready for pickup/delivery when it’s simply not. When a driver arrives and the warehouse hasn’t been notified, this causes tension because the driver is forced to wait and the warehouse staff simply isn’t ready because they weren’t properly notified. The fault here is on the broker for giving faulty information to the driver when they weren’t doing their due diligence on proper pickup/delivery times with the shipper.

On the other hand, there are instances where a driver arrives too early and the shipment isn’t ready. This is generally the case for smaller operations who are seeing their dock open/close times or “package ready at” times ignored. While everyone wants to keep shipments moving, it is vital that carriers respect the shipper’s availability as a sign of respect for their operations. These times are provided for a reason and many shippers know exactly when a package is ready to ship out.

As one suspects, all of these problems can be solved with proper communication for the shipment. Communicating and scheduling proper pickup/delivery times with both sides is the bridge to deterring detention. Providing updates in real time – whether a driver is arriving early or a warehouse worker called in sick will help smooth the dynamic between shippers and carriers. Why? Because both sides are working together to get shipments to the customer on time and undamaged. Keeping communication lines open will help both parties keep their operations running smoothly and will hopefully eliminate unnecessary detention delays.

Here at Zip Xpress, we understand the importance of communication between us and our customers. We’re constantly working to improve our communication with our customers, providing updates and adjustments in real time as events happen. We respect the availability of our customers and work in a timeframe that works for them. We’ve found that many shippers are more than willing to work with a carrier that is also willing to work with them. All of this goes to prove that communication is key to a dynamic supply chain. To see for yourself, start today with Zip Xpress!

One of the worst things that can happen to a carrier is a breakdown with their trailer or chassis. The cost and hours of repair as well as the time lost for being unable to deliver shipments can really add up. In the current economy, these costs are magnified for both carriers and shippers. 

There is a dire shortage of chassis and trailers both new and used. Manufacturers are trying to secure materials and parts, but many companies are forced to use what they have. This in turn has stretched mechanics thin as well, which means repairs are taking longer to get completed.

To exacerbate the situation, many carriers are running their trucks ragged due to tightened capacity. There’s always the next shipment which needs to go out and get delivered and it’s unknown how many carriers are performing routine maintenance checks to ensure their vehicles are running properly. In combination with the difficulties inherent in expanding a fleet, any truck that is taken out of commission will be felt by both the carrier and the shipper. As a result of this, both sides are learning the importance of proper maintenance schedules and routines in caring for their vehicles and how much of a competitive advantage it is for the carrier.

Shippers would do well to inquire about a carrier’s maintenance procedures and what their contingency plans are in the event of a breakdown. While accidents can and do happen, most issues with equipment are preventable with proper routine maintenance. Developing maintenance procedures will go a long way in helping carriers get through this hectic time, without putting their equipment at unnecessary risk. We’re unfortunately in a situation where we’re tempted to push our vehicles harder than ever, while at the same time stranded when something goes wrong. Take care of your equipment and it will take care of those shipments you’ve been entrusted with.

Here at Zip Xpress, we understand the importance of proper routine maintenance. Whenever one of our drivers notices something off about their vehicle, we take note for our mechanic to inspect. We maintain a strict routine maintenance schedule for our fleet, which helps reduce the amount of downtime each of our vehicles face. It is this routine maintenance schedule that helps ensure that all of our vehicles are in tip-top shape and we’re able to keep them on the road performing pick-up and deliveries for all of our dedicated customers. It is simply another way that details matter here, which help us get your shipment to its destination on time and undamaged. To see for yourself, start today with Zip Xpress!

As we navigate the changing landscape that is the logistics world, the only certainty we can count on is a changing environment. Fuel prices and other costs keep rising in addition to a great labor shortage in nearly every industry. Logistics is not immune from these factors, but providers are adapting and working together to get shipments to customers. There are still issues to be addressed with the quality of service customers receive, but in the meantime carriers are working closer than ever together which is a good sign.

Due to rising costs, carriers are going to need to make every dollar count when it comes to getting a shipment to the customer. While many shipments are still coming in, there are too many trailers on the road that aren’t full, even though these shipments are marked as ‘full trailer.’ Shippers are paying a higher price to get their shipments moving but aren’t seeing the benefit due to lackluster service and long delays. At a time when fuel is reaching record high prices, we need to do more than simply pass the costs onto the customer. There is an ideal solution that works for the shipper as well as the carrier, one that optimizes trailer space, reduces delays and puts less strain on carriers.

Headload Optimization is a proven strategy when it comes to providing a sustainable solution for carriers and shippers alike. This one solution is key to helping avoid the disruption that has run rampant across the supply chain. By optimizing and consolidating shipments into one trailer, we are reducing the amount of ‘wasted space’ on each and every trailer. Carriers like this solution because they don’t want empty trailers or unnecessary trips and shippers need to know about this solution because it reduces congestion. The final benefit is that shippers only pay for the space they’re using, which means they won’t be forced into paying for air.

Here at Zip Xpress, we understand the need to utilize the headload optimization solution. We have optimized shipments for more than 20 years, providing customers with an ideal shipping solution that works for their needs, getting their shipments to the customer on time and undamaged, no matter what. While the headload optimization solution is ideal for companies looking to become more sustainable, it is not the only custom carrier solution we offer that will get your shipment to its destination on time and undamaged. We’re here to help shippers and carriers alike and we have a solution that can help everyone at any time. To see for yourself, start today with Zip Xpress!