With the summer winding down, one thing is certain… the holiday season is just around the corner. In recent years, that has meant a rise in supply chain disruptions and delays. Although things don’t look as bad as they did last year, there will still be challenges. As labor and material costs rise, interest rates increase, and supply chain problems persist, truck driver shortages will also exacerbate the situation.
How the Trucker Driver Shortage will Hit Your Supply Chain
A shortage of truck drivers? What impact will that have on your business? The trucking industry plays a critical role in any supply chain. During the last year, the industry transported 10.23 billion tons of freight nationally, or 72.5% of domestic tonnage. A shortage of these drivers will lead to delayed product, missed deadlines and ultimately a loss of revenue.
Sources: American Trucking Association, Business Insider, The White House, CCJ, McKinsey
The Numbers Tell the Story
Even as the industry continues to work overtime to keep the economy on track, they face their own challenges:
- The industry is short 80K drivers as a result of the pandemic when many DMVs and training programs were closed
- Yet the economy relies on the 72.5% of goods that are shipped domestically.
- High turnover rates, exceeding 50%, among long haul driver combined with port blockages are exacerbating the situation.
- This is leaving businesses and consumers high-and-dry as supply chain disruption hits hard.
As the trucking industry strives to address these issues, what can you do now to ensure the resiliency of your supply chain?
Supply Chain Investment
You’ve invested heavily in building a specialized supply chain that provides your business with the components that make it unique and differentiated in the market. Suppliers sometimes tell you what you want to hear, but not what you need to hear.
Right now, many of those suppliers are under threat with rising material costs, inflation and labor shortages. Most of these suppliers are private companies and you have no visibility on their ability to deliver your goods on time, on spec and as per the terms of the contract. This puts the investment you’ve made in developing your supply chain at risk and can have serious implications for your business’s revenue.
Protecting Your Investment
RapidRatings’ Financial Health Rating Exchange gives you complete transparency into your suppliers’ financial health. It provides clarity and insights based on their actual financial statements so that you can make informed decisions. This process uncovers key areas of risk in both the present and into the future. So, you have line of sight on issues before they arise and can take corrective action. You’ll also have visibility on suppliers who have the capacity to handle more business from you enabling you to make strategic buying decisions. Ultimately, your supply chain is more resilient, and its performance is optimized.
To learn more about protecting your supply chain, request a demo now.