“ From my perspective , the geopolitical environment is probably the biggest thing creating uncertainty and potential problems in the supply chain .”
COVID . The lessons learned to operate in that shifting-cost environment still have their place today . “ Costs are going up every single day with no end in sight ,” he observes . “ Look at fuel costs , tires , maintenance , and everything else that a carrier has to figure into in terms of their operating costs . Big companies may be able to buy futures and get some ability to manage fuel costs , but most companies can ’ t do that . They ’ ve got to know their cost of doing business . Knowing your costs and understanding what levers to pull to adapt to changing factors is critical . Ideally , we would be in a world where things were more predictable , where companies could anticipate costs and price jobs accordingly . That ’ s not today ’ s world for those of us in the supply chain .”
Moyer points out that forecasting is challenging in the final mile . “ Forecasting complexity for those in the final mile is very di ! cult . Labor cost is a primary factor . If you cannot forecast , you can ’ t schedule your drivers , warehouse personnel , o ! ce staff , and overtime , impacting your profitability . This challenge enhances the potential for service failures that will ultimately impact your customer base . If you ’ re not laser-focused and doing the right forecasting with your customers , you can ’ t decide whether it ’ s best to buy or rent facilities . You won ’ t know how much square footage you need and how to align labor costs with demand . Or how you need to scale to meet escalating customer demands .”
According to Moyer , one of the best ways to improve forecasting is to share data with your customers . “ Communication with your customers and understanding their forecast is critical ,” he points out . “ You can accomplish very high success levels by getting with your customers and understanding what they expect . But many companies in the final-mile space don ’ t do that . In 2025 , the need to do that will be even greater if they want to survive .”
Moyer advises companies to do their research to see how to build in flexibility into their systems . “ They need to ask themselves if they handle some functions internally . Or if outsourcing is the answer . Our clients tell us they have more flexibility by outsourcing their sta ! ng to Task4Pros . This , in turn , allows them to focus on their core competencies .”
He advises companies to have relationships with other providers that will allow them to call on when they need to flex . “ Know who ’ s out there who can help you respond quickly to change ,” he says . “ Know who you call on if you don ’ t have enough trucks to handle the volume . Know which providers you can pick up the phone when you need something outside your footprint . If you ’ re having labor challenges impacting your profitability , know what solutions are available to you . Do your homework , your research , and build those relationships so you have them when you need to call upon them .”
The Challenge of Finding Qualified Personnel
26 customized logistics & delivery Magazine I fall / winter 2024