The world of shipping has changed in many ways, thanks to online retailers. To stay competitive, many businesses now offer two-day or same-day shipping to consumers, which (especially around holidays) can put a strain on shipping services. The e-commerce industry in the United States stands at almost $425 billion and is continuing to increase. Regardless of whether it’s a full truckload, a less than truckload, or a parcel, those who carry wares must adjust to what the retail industry dictates. The transportation network is comprised of almost 12 million trucks, rail cars, vessels, and locomotives that help get our goods to the places we need. Logistics companies, like pharma logistics services, for example, are increasingly figuring out how to make things more streamlined; the United States logistics and transportation industry was almost at $1.5 trillion in 2015.
How Do Things Get From Point A to the Final Destination?
As mentioned above, trucks, rail cars, vessels, locomotives, and planes all carry cargo. However, trucking is a main way that items move from warehouses to the final destination. The Federal Motor Carrier Safety Administration reports that almost six million commercial motor vehicle drivers are working in the United States. In 2013, trucking carried almost 15 billion tons of cargo and the Bureau of Labor Statistics states that in 2040, that number should be at almost 19 billion tons.
Currently, the three most valuable things that move through the freight transportation system are machinery, electronics and motorized vehicles. However, the United States Department of Transportation reports that between 2007 to 2040, the value of freight that’s moved is supposed to go up. In 2007, it was around $882 per ton and by 2040, it should be around $1,377.
How Do Logistics Companies, Like Pharma Logistics Services Help?
Logistics companies, like pharma logistics services, for example, make sure that the products needed are received and distributed to the right places in the right amounts. They keep track of things coming in and going out, and how things are moving internally and externally. Logistics companies make sure that everything from expedited freight to oversize freight reaches its destination on time in good condition.
They can also smooth the path between consumers and retailers. For example, a pharma logistics company could help process returns and make it easier for clients to get what they need, as well as work out how to minimize the company’s losses. They may manage inventory, client accounts, returns, shipping services, and strategic partnerships for disposal or inventory.
For businesses just getting started, a logistics company can be a godsend, because they’ll focus on setting up, getting all the equipment organized, investing in software, and putting manpower into making a supply chain management system that’s effective and efficient. This could cost a new company much more than they had budgeted for, whereas working with a logistics company could fit neatly into a budget and take some of the uncertainty out of getting started.
What are Some Benefits of Less Than Truckloads (LTL)?
Though it may seem odd to some people that trucks would roll out not completely full, there can be some serious advantages for shippers to doing less than truckloads for their shipping purposes. For one thing, if the freight is at maximum weight, but not taking up as much of the space available, it can mean that the cargo is transported at a minimal cost. This is because the freight shipping involves having multiple shipments from a few different shippers loaded onto one truck before it’s sent out for delivery. The shippers only have to pay part of the cost to get their gear out, instead of having to pay for a full trailer.
Emissions are also reduced, because there are fewer trucks on the road, and security can often be enhanced, since there’s less handling of the products in transit and there are fewer items aboard the truck to begin with.
If you’re a freight shipping company, partnering up with a logistics company, like a pharma logistics services company can be beneficial to improving efficiency and controlling costs.