Top 10 Challenges for 2022
- LTL capacity: Acquisitions create constraints and carrier shutdowns add fuel to the fire.
- Broker Financial Stability: Small and midsize brokers are being constrained by credit limitations due the rising cost per load. Longer shipper terms and increased volume can create challenges for brokers trying to pay their carriers and collect from their customers. Be certain to maintain vigilance on your broker’s financials.
- Capacity acquisitions of midsize carriers: Keep your midsize carriers close during acquisitions by a larger carrier. The short play isn’t to acquire customers, it is to acquire drivers to utilize on already existing business within the larger carrier’s network, potentially leaving shippers reacting to a severe capacity constraint in their carrier solution.
- Reducing the commoditization of your shipments: Maintain strategic alignment with your non-asset brokers to keep them from chasing the same truck capacity on the spot market.
- Automation of your TMS functions: Know your ROI to automate shipment planning workflow. The payoff will loom larger this year as experienced supply chain talent grows harder to find and retain.
- Technology shortsightedness: There are a myriad of TMS technologies available in the market today. Lay out your vision to buy forward with your technology allowing focus on ROI versus jumping into the next TMS technology. Enterprise TMS technology is lower in direct expense and implementation than it ever has been.
- Implementing Supplier Resiliency: Mapping Tier II and Tier III supplier networks will be challenging with a lack of resources and time in 2022. Post project, the challenge presented may be in prioritizing the gaps discovered during the process.
- Inventory expense: The change in inventory levels is on a positive upswing. The challenge is balancing a projected drop in demand next year with a reduction in orders. Additional inventory purchased at a higher price now may be a loss leader if consumer spending slows in 2022.
- Resource retention: At this time we are seeing a drain on available resources as the baby boomer generation wraps up their careers. The experience lost is only earned through time. Retention will be critical as new challenges arise in the post-COVID supply chain.
- Keeping up with Inflation: 2021 has shown how extreme freight rates can rise. The critical question for shippers is how to keep up with rising inflation with adjustments to their goods. The first step? Visibility derived through technologies and data collection that enables deeper analytics.
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