Warehouse Basics Blog
As fuel costs rise the impact is felt throughout the industry and ultimately the consumer. Foreign and domestic policies, clean energy initiatives and off shore drilling are potential long term solutions, but the results of those intitiaves will not be felt for years or decades. The immediate solution is for logistics companies and consumers to adapt to the current issue of rising fuel costs. Consumers and businesses are paying more attention to where their money is going and fuel costs are certainly at the top of the expense category. Ultimately the increase in fuel costs will be imbedded in the price of goods purchased by consumers. Businesses can help offset those increased consumer prices by better managing their supply chain solutions. Freight carriers have the biggest opportunity to help offset the cost to consumers. By maintaining equipment, combining partial loads and reducing idle times carriers are able to reduce their fuel costs. Carriers can also partner with 3PL warehouses to help better utilize their equipment. Third party warehouses give the carriers an opportunity to max out their LCL loads by giving them a location to cross dock mutliple shipments for local deliveries. Building a relationship and a network of 3PL warehouses throughout the country provides a quick solution to problems that arise everyday for carriers/drivers. The fuel savings a carrier can gain by having a quick solution to problems can ultimately lead to less fuel waste and unnecssary expenses that ultimately lead to higher margins for the carrier and reduced costs to consumers.
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Tags: third party logistics