Automotive Part Transportation: Optimizing Truckload

Automotive Part Transportation: Optimizing Truckload

The truckload sector in the United States is a $337 billion market. This makes up nearly 37% of total freight transportation cost. Even in a competitive landscape where there are more shipping and transportation options and decreasing demand, rates for this vital element continue to rise.

Factors such as governmental regulations, a dwindling driver and labor force and more expensive equipment are driving costs up. Rising transportation costs are creating additional spending in the automotive part supply chain. According to the Wall Street Journal, auto sales were down 2.5% year over year in June. As a result, online aftermarket automotive parts are forecasted to break the $6 billion plane this year and continue to grow at an annual rate of 14 – 18%.

With more companies emerging in this growing sector controlling supply chain expenses is going to be critical to remain ahead of the competition. These three tips can help you save on transportation.

1.)    Use Technology to Communicate

Shippers, suppliers and other logistical partners should all be linked to improve supply chain visibility. Making timely, relevant and accurate information available across all channels is crucial when handling high-velocity products. Mastering the ability to make informed decisions will mitigate delays, risks and losses, as well as significantly lower costs.

2.)    Streamline Warehouse Activities to Enhance Transportation

Your fulfillment and warehouse processes have a direct impact on your transportation operation. When, where and how your orders are packaged can significantly influence the cost of delivery. FedEx and UPS have both revised their dimensional weighting policies; this is an example of how packaging impacts shipping prices. Revisions to packaging and processes within the warehouse can provide benefits an savings.

3.)    Mitigate Risks

Identifying vulnerabilities within your supply can do much more than reduce transportation costs. Compliance with regulations and a commitment to safety can save money and increase margins.

Truckload transportation will continue to play an integral role in the supply chain. Cost savings will also continue to be a key focus in the automotive part industry. Both of these challenges can be met with a smart supply chain plan. Barrett Distribution Centers, with automotive part fulfillment experience and a focus on developing customized transportation strategies offers a wide range of logistical services. Learn more information on Barrett’s transportation solutions.

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