Fall Magazine - Page 51

Dropoff as she looks towards what could become , given recent industry trends , the highest volume holiday season to date . “ We have ecommerce and retailers inquiring with Dropoff about adding same-day courier services to their shipping suite as they look for ways to diversify and meet increasing demands ,” she says . Bringing over twelve years of field , transportation , and logistics experience to new her role at Dropoff , Tarallo has managed these holiday peaks before . “ It ’ s very telling when companies shift away from traditional carriers to seek new opportunities for capacity .”
Dropoff is a tech-enabled , same-day , last-mile delivery platform based in Austin , TX that has been providing businesses nationwide with 24 / 7 logistics support since 2014 . The company , just recently named one of Inc . Magazine ’ s fastest growing private companies for its fourth consecutive year , is an active member of the Customized Logistics & Delivery Association ( CLDA ).
It ’ s more than the anticipation of the growth in ecommerce and the current labor shortage that ’ s causing these shippers to expect carriers to get an early start on the season , “ These shippers are looking at their logistics and wondering if their current network has the capacity and how they can both increase their market share while identifying alternative shipping channels with that capacity ,” says Tarallo . “ Many expect to bring on new providers . That takes time . There ’ s a lot of technology integration needed to get out the kinks in a new relationship with a carrier . If you haven ’ t done that by September , you ’ re going to be far behind and your service is going to suffer . We advise all new customers we ’ re speaking with to complete integrations early ; test data and delivery service levels way before peak season .”
Shippers looking for capacity , Tarallo suggests , “ Should think about differentiating their offerings with same-day service . Speed of shipping is a critical decision point for buyers and you may gain incremental sales while finding new capacity for shipping .”
How to Manage Capacity Challenges
Capacity challenges are part of the business , but Tarallo says this doesn ’ t mean carriers have to say no to a customer if their capacity demands are too high for them . “ If you know in your heart of hearts that you can ’ t handle all the deliveries they expect to give you , you don ’ t have to walk away from the business completely ,” Tarallo says .
1 . Be Honest About What You Can Manage “ There are several alternatives . One is to candidly share , ‘ This is not a volume I can handle on my own , but what I can do is work with my network of other carriers to meet your needs .’ Another alternative is to carve out the part of the business you can handle and meet your service levels and be honest with the shipper upfront so they can diversify their network to cover what you can ’ t handle ,” she says .
2 . Partner Up She points out that COVID showed shippers that it ’ s critical to partner with several carriers . “ Since COVID , it ’ s been about carrier diversity with shippers . Even for those that previously used major carriers . They now recognize the need to diversify in particular markets if they ’ re going meet customer demands ,” Tarallo says .
FALL 2022 customized logistics & delivery Magazine 51