Every mile of your supply chain is important – especially that last mile. In this month’s blog, we’re discussing why transloading matters to your business and how you can use this strategy effectively in 2023.
Transloading 101
Let’s start with the basics. Transloading is one part of your supply chain strategy: it is the “process of unloading freight from one mode of transportation to another,” although it’s much more than that (which we’ll get to in a moment). The process allows shippers the ability to move more product by more affordable means of transportation such as rail or barge, and stage the product closer to the end-users. We all know that having a railcar or barge placed or docked at your back door isn’t a feasible option without installing expensive infrastructure in order to do so. However, rail or barge may be able to get large amounts of product closer to your facility, all the while creating cost savings and efficiencies.
Benefits to Your Bottom Line
By navigating the best transportation options for your product, including barge, rail, and truck – not only will you receive your product more quickly, you’ll be able to push it to market much sooner. But that’s not the only place where you’ll increase profits. There is a lot of value – and opportunity – to cut transportation costs when you use a transloading strategy. When you work with the right logistics’ provider, there should be multiple factors taken into consideration on where you can cut costs by either moving your product off of rail to truck or vice versa. It might feel like you are playing hopscotch with your product delivery, but this approach is a very common and beneficial logistics’ strategy.
Reliable Trucking Providers
Rail and barge are effective resources for transportation, but they can only get us so far. Additionally, most providers will agree that rail and barge options are not always the most timely options. Rail shipments must make many stops along their route at various railyards while you wait for inventory replenishment, and barges, although efficient, depend heavily on river levels and traffic. Take a look at your storage facility and your customers’ sites. It’s unlikely that a train or barge is going to deliver that final mile of product. That’s why it’s important to look for a provider who has more than one solution for their clients and that they are flexible to your transload needs. Consider providers who have both their own fleet and third-party relationships which means you’ll have more options for your strategy.
Location, Location, Location
Location matters significantly in developing a solution for your product shipment. If any part of your supply chain is located along the south/southeast coast (where hurricanes are prevalent) or far north (where deep freezes can occur), it’s important to consider how weather challenges will affect the final delivery of your product. Be sure to talk about these very real hurdles with your logistics provider which may require an adjusted strategy during certain times of the year.
Learn More
When it comes to the final mile of your supply chain, stay agile and open to the complex factors that could affect your bottom line. With “post-pandemic supply chain inefficiencies” impacting every business, effective supply chain management may make or break your organization this year.
At Grammer, we operate transload locations in Nashville, TN, Atlanta, GA, Tampa, FL, Corpus Christi, TX and New York Harbor, NY. Additionally, we work closely with many short line railroads that are always willing to assist with transloading opportunities in order to better serve your customers. We are in the business of building safe and efficient solutions for our clients. If your business is unable to utilize an existing site or if you prefer a dedicated transloading operation, we’d welcome the opportunity to help you develop the ultimate supply chain solution through transloading. Talk to an expert today.