When customers place an order, they expect to have that order fulfilled. They are not generally considering the complexities of supply chain management, since customers expect vendors and companies to take care of that detail. But what happens when demand suddenly exceeds supply?
Bottlenecks and disruptions in meeting customer demand requirements can mean delayed or canceled orders, unhappy customers and lost revenues. These situations can harm a company’s reputation. Fortunately, careful attention to transportation capacity planning can help prevent this problem — or at least minimize the possibility.
What Is Transportation Capacity Planning?
Transportation capacity planning in the supply chain refers to solutions which manage the available capacity of carriers. It means forecasting and controlling, as much as possible, supply chain capacity restraints and their impact upon your ability to ship product on time to meet the customer expectation. Transportation capacity management means understanding and addressing fluctuating levels of carrier capacity, traditional shipment activity levels, economic indicators, trade fluctuations, demographics and most importantly, factors that impact driver behavior.
Organizations in need of transportation capacity planning work to address three key areas: forecasting, planning and execution. The ability to forecast increased transportation capacity needs allows for the development of a communication plan to each of your solution carriers to identify and secure capacity ahead of the forecasted spike. Planning is the mechanism that focuses internal resources to support the forecasted needs and processes to secure needed truck capacity. Lastly, execution is improved through the use of transportation management systems that enable efficient processes and communication with your carriers.
Challenges With Identifying Capacity Risks
Transportation capacity planning helps companies find and resolve capacity risks before manufacturing and the supply chain are affected. However, there are challenges. One of the largest issues is that forecasting the turbulence in truck capacity is challenging. Legislation, regulation, customer expectation and economic factors are just a handful of factors that impact truck capacity and its availability to move your products to market. Maintaining visibility to these factors and more can be challenging. The inability to communicate these factors internally within your company often times leaves supply chain isolated to understand and mitigate these factors. The result, increased cost.
Creating vision to transportation capacity challenges is often secured through a transportation management system that begins to compile the historical and real time intelligence needed to educate your company’s leadership to the dynamics of truck capacity.
Benefits of Working with a Professional
When you work with professionals, such as the team at Rockfarm Supply Chain Solutions, you have a partner to help you make sense of data, determine maximum capacity and help you stay flexible in variable markets. Rockfarm offers North American Transportation solutions, including logistics fulfillment services, to help you meet customer needs every time. Rockfarm also offers Supply Chain Coaching, which helps you tailor solutions to your business. Our team looks at all aspects of logistics and transportation to ensure you serve your customers effectively.
The professionals at Rockfarm Supply Chain Solutions have worked with specific industries and can also help you find solutions for your specific sector. For example, high-tech growth industries often face additional challenges with capacity planning. There may be little historic sales data to rely on and sales may expand very rapidly. Rockfarm provides holistic solutions which are intended to help you achieve your goals, no matter your sector.
Contact Rockfarm Today
If you’d like to speak to professionals about capacity planning or your supply chain management needs, contact Rockfarm Supply Chain Solutions today. An expert will reach out to you within 24 hours to address possible solutions designed for the way you work.