Unlocking the Future: The Rise of 24/7 Supply Chains on the US West Coast
Brian Scott
EVP Global Sales and Marketing at CTSI-Global | Providing Total Logistics Tech & Intelligence
In the face of escalating demand and ongoing disruptions, the US West Coast’s logistics industry turned to a bold solution: 24/7 supply chains. While this model aims to optimize delivery timing and enhance operational efficiency, implementing it countrywide would require significant adoption and execution support.
As shippers seek new ways to ensure long-term stability, the supply chain industry has an important opportunity to overcome future disruptions through internal process improvements, strategic partnerships, and innovation adoption. With advanced logistics software by their side, including a transportation management system (TMS), shippers are empowered to navigate long-term logistics challenges, harness the benefits of 24/7 operations, and shape the future of the supply chain industry.
Looming obstacles stand in the way of 24/7 supply chains
In the aftermath of the pandemic, round-the-clock operations seemed to hold the key to overcoming delays and boosting efficiency at major ports in Los Angeles and Long Beach. However, persistent industry challenges—such as slow adoptions of 24/7 operations, driver shortages, outdated technology, and bureaucratic inefficiencies—pose substantial challenges to making the 24/7 model a nationwide standard. Compounding these issues is resistance to change on the part of shippers and the small fraction of US ports that can currently support 24/7 operations.
Teamwork makes the transition possible
One crucial aspect of successful round-the-clock operations is a reliable truck driver workforce. Yet, the industry has continually grappled with driver shortages that threaten the smooth functioning of 24/7 operations. Drivers need incentives to work longer hours, such as improved working conditions and higher salaries. For example, UPS drivers recently negotiated a hopeful deal for increased pay and air-conditioned trucks that could attract more drivers to the industry.
Cultivating strong partnerships between shippers and carriers also remains a cornerstone of success. These will be especially valuable as shippers cut through the red tape of bureaucratic hurdles such as dual transaction requirements in Los Angeles and Long Beach. Joint negotiations with city governments to streamline these processes have become crucial to implementing widespread 24/7 supply chains.?
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Invest in tech that can take on 24/7 supply chains
Examinations of Chinese and Dutch ports underscore the technological lag present in their US counterparts. Innovations like fully automated terminals contribute to the efficiency of 24/7 ports in Qingdao and Rotterdam, emphasizing the pressing need for technological advancement in American supply chains.
As drivers and port workers seek to adapt and adopt new hours, shippers can do their part on the logistics front. Rather than focusing solely on expanding operations, logistics teams and carriers can enhance resilience by improving internal processes. Adopting industry-leading technology, such as CTSI-Global’s robust Honeybee TMS, provides the real-time tracking, data-driven route optimization, and automated tendering that shippers need to maintain resilience in a 24/7 operation.
Today’s best bet for stability is tackling underlying challenges
While the allure of 24/7 supply chains is undeniable, addressing underlying logistics challenges is the key to successful implementations. The logistics industry is at a transformative juncture, demanding radical changes at every step in the supply chain. Embracing innovation, strategic partnerships, and advanced tools like CTSI-Global’s Honeybee TMS—which offers newfound efficiency and agility—is essential for shaping the resilient supply chains of tomorrow.
As the logistics landscape evolves, shippers must seize opportunities to transform their supply chains. By leaning on CTSI-Global’s advanced logistics software, firms can reimagine shipping strategies and navigate the complexities of the dynamic global marketplace.?
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