CLDA Members are encouraged to share news about their company. CLDA may share on social media, in newsletters or the Customized Logistics & Delivery Magazine.
Ready to share your news with CLDA or the industry media? Learn from these tips and tricks on how to get noticed.
WASHINGTON, DC, Nov. 8, 2022 – Supply chain disruptions have had a positive impact on expedited final-mile providers. Shipments that used to go LTL are now going to last-mile carriers. “The delays in the supply chain mean that shippers can’t depend on LTL transportation to get things where they need when the customer needs them. In these cases, they are turning more and more to last-mile delivery partners,” points out Tim Cocchia Chief Operating Officer, Xcel Delivery Services, Phoenix, AZ and Board Member of the Customized Logistics & Delivery Association (CLDA). “Before the disruptions, LTL could get products to their destinations in a timely manner. But with the disruptions that’s no longer the case so they are turning to last-mile providers. We take delivery of the items, store them in our warehouses until they are needed and deliver them when it’s time. We have always done some of these deliveries, but the demand has dramatically increased.”
One industry that’s shifted to this approach is construction. “Builders that need products on specific days have really felt the sting of supply chain disruptions,” points out Cocchia. “Today, they can order kitchen cabinets, and have no idea when they’re coming in. So, they are ordering them ahead of time and having members of our industry store them in our warehouses. That way, they know they are there when they need them. They can contact that last-mile carrier, schedule the delivery and we get it there right when they need it. This is fueled by a lack of trust in the supply chain. We heard that from a builder doing a remodel of an apartment complex here in Arizona. They were waiting to schedule the labor to do the installs until they had all the products. They didn’t want to start the installs and be missing one piece and have to reschedule all the labor to come back later. They worried that if they released those guys, and they started on other jobs they might not be able to get them back. People have been burned and so now they’re being more cautious.”
Impact on Just-in-Time
Supply chain issues have had a dramatic impact on companies that depended heavily on the just-in-time model. “Right now, just-in-time doesn’t work,” says Cocchia. “In the past, just-in-time made economic sense. It worked because those in procurement knew they could wait until the last minute to order what they needed and get it right away. The customer could keep their money in their bank account, order at the last minute possible, and have it show up on the day it was supposed to without redelivery and warehousing fees. Not anymore. Today, companies must order products ahead of time because they’re not sure when they’ll come in. They’ll ship those products to last-mile providers’ warehouses to hold them for as long as needed, and then deliver them exactly when they need them.”
A Change or a Temporary Reaction?
Given that this is an offshoot of what most people think of as a temporary situation, does Cocchia believe it will result in a permanent change in the way companies do business? Will it mean this new business for last-mile providers will disappear in the future? Yes and no. “There may be a small drop in business for these carriers, but it will not go back to pre-COVID, levels, even when the supply chain disruptions settle down,” he says. “I think there’s a trust factor there that will take a long time to return. Many businesses had to make huge changes. Some of them really got burned and they will probably never go back to the way it was. It will certainly get better. I just don’t know that it will be enough for people to trust in the old way of doing things completely ever again.”
About the Customized Logistics and Delivery Association
The Customized Logistics and Delivery Association (CLDA) represents the first to final miles of the supply chain in the US and worldwide. This non-profit professional association serves the needs of its 2,900 essential service members who are logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing today’s supply chain companies. The CLDA gives its members access to a diverse network of logistics professionals looking to create new business opportunities and share decades of practical insights. They provide an avenue for amplifying members’ voices on key issues and helps them participate in the regulatory discussions shaping the industry. The CLDA keeps members informed and educated on trends, current issues and best practices. For more information see www.clda.org.
Media Contact
Andrea Obston
aobston@aomc.com
(860) 803-1155
WASHINGTON, D.C. Aug. 25, 2022 — If you’re not planning for peak season right now, you’re already behind. It may be summer outside, but the chill of winter and the heat of an on-fire holiday season is already upon us.
These are among the observations from Millie Tarallo, Chief Revenue Officer at 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.”
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.”
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.
3. Be Cautious; Be Smart
And just how high does she expect those demands to be for Holidays 2022? “It’s going to be the most challenging season ever,” she says, “because consumers expect to get their orders faster. Faster shipping is often a key decision-maker when it comes to what they will purchase. We know the expectations of consumers are growing and that they are demanding we meet higher expectations. Before COVID we expected to scale to this level of demand in eight years; it’s happened in three.”
Tarallo shares that regional carriers should be cautious about accepting all of this business. “You have to be able to take what you can handle and make a profit on it. There’s a reason that large carriers are being more selective with their customers. Some of those jobs simply aren’t profitable. I’d suggest regional carriers only take the ones that fit their current capabilities; ones where they have a unique capacity.”
Tarallo also urges carriers to line up their people resources earlier than they have in the past. “The number one challenge carriers are going to face when coping with the upcoming holiday season is the labor shortage,” she says. While this may be starting to trend in a better direction, here are some ways to ensure you’re ready:
1. Prepare Your Current Workforce
Tarallo suggests preparing your current workforce now for what lies ahead during peak: “We’ve already discussed communication with your customer, but communication with your team is as critical at this time of year. Let them know what you’re doing today to get ready for peak. Prepare them for the fact that they’re going to be working long, hard hours. Think about how you can support them.”
2. Support Your Drivers
There are a lot of sacrifices that drivers make. Consider what you can do for them that’s a little bit extra. Can you have breakfast or lunch for them? Those little things go a long way. Tarallo encourages everyone to, “Do what you can to recognize the efforts that these people are making to help you deliver top-notch service to your customers.”
3. Take Action Against Your Postmortem
She also advises that carriers talk to the people who got them through the peak season once things slow down. “By definition, there will be misses during that hectic time,” she says. “It’s your people out front who have the information that can avoid those misses next time. Capture it right after the season with a holiday postmortem. While things are fresh, ask everyone on your team, ‘What did we miss in the last quarter of this year, and how can we prevent it next year?”
Tarallo summarizes her advice for making it through Holiday Season 2022 this way: “It’s all about preparation. Prepare your customers. Prepare your resources, and then have a plan to make sure all that communication is shored up in both directions.”
About Dropoff
Dropoff provides nationwide, same-day custom courier services in the healthcare, retail, and industrial industries. The company’s proprietary logistics platform empowers enterprise businesses to gain full visibility throughout the chain of custody with real-time track and trace and intelligent dispatch. Discover how Dropoff is shaping the future of last-mile delivery by visiting Dropoff.com
About the Customized Logistics and Delivery Association
The Customized Logistics and Delivery Association (CLDA) represents the first to final miles of the supply chain in the US and worldwide. This non-profit professional association serves the needs of its 2,900 essential service members who are logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing today’s supply chain companies. The CLDA gives its members access to a diverse network of logistics professionals looking to create new business opportunities and share decades of practical insights. They provide an avenue for amplifying members’ voices on key issues and helps them participate in the regulatory discussions shaping the industry. The CLDA keeps members informed and educated on trends, current issues, and best practices. For more information see clda.org.
Media Contact
Andrea Obston
aobston@aomc.com
(860) 803-1155
WASHINGTON, D.C., April 5, 2022 – Last-mile carriers are increasingly looking to overseas help in the face of a tight job market. For one carrier, Eveready Express, it’s been the key to continue delivering a high level of customer support in the face of the labor shortage. And a strategy for coping with rising costs.
“It’s been challenging since COVID to hire and retain people, and more so now with the US at or approaching full employment.” says Eveready Express’ President, Keith Kirk, a New Jersey based provider of courier and trucking. “A lot of people have gone out of the workforce. That includes older, more experienced people who are concerned about COVID as well as younger moms. We used to hire a lot of mothers to work while their kids were in school, but COVID changed that.”
Kirk started entertaining the idea of supplementing his office staff with overseas workers in 2020. “If you told me a year ago that we would have several people outsourced to overseas, I would have said you were crazy. I’d tell you ‘It’s not a good fit for us. We want everybody in the same place.’ But here we are now with a team of six workers in the Philippines who assist in recruiting fleet drivers, screening independent contract drivers, handling basic email customer support, tracking and tracing drivers,” says Kirk.
He admits that his early attempts at using overseas workers got off to a rocky start. He cautions other logistics providers that there’s a learning curve to make this work that they need to be prepared for. He got a jump on that learning curve by reaching out to fellow members of the Customized Logistics & Delivery Association (CLDA). “I talked to CLDA members who have been very progressive in many areas and found out how they were approaching this,” says Kirk. “After that, I felt like I wanted to give it a try. We hired a telemarketer, a lead generation person, from a logistics outsourcing company in Columbia. It didn’t work out. One of the issues is that most of these workers had been trained for the truckload industry and when I brought them into the last mile space, they didn’t seem grasp it. While this first group didn’t work out, we were still committed to leverage the diversity and cost advantages of remote workers.”
A number of logistics providers use outsourcing companies to bring on overseas workers. “I understand some logistics companies have been very successful handling things this way, but this first experience wasn’t successful for us. On the other hand, I’ve had some success hiring remote on Fiverr, Upwork, and other online freelance marketplaces for specific projects and in short-term situations,” says Kirk. “In fact, we’ve used freelancers from these sites for specific projects, like online research, recruiting in the USA and overseas, even for a project to purchase delivery vans. For ongoing staffing, there are quite a few staffing firms who specialize in this, and also direct recruiting sites, if you want to take on the managing of the team yourself. Our overseas staff include customer support, administrative support, track and trace, and weekend dispatch. We’ve been able to expand our service hours very cost-effectively.”
The key to making it work, Kirk says, is training. “There’s definitely a lot of training involved,” cautions Kirk. “I found that when you bring in people who aren’t familiar with our industry there is a greater learning curve. We give them a script to follow when recruiting and screening independent contractors, so they meet our standards. That can be time-consuming. There are a lot of questions and checking out. Once they get the hang of it, we’ve found they’ve done very well and really helped us beef up our efforts.”
Tips for Making It Work
Is overseas help right for your company? Kirk suggests you approach it with an open mind, guided by these tips:
A Way to Cope With Rising Cost in the Long Run
Would Kirk suggest couriers consider offshoring to control costs. Yes, but…
“If you’re looking for an alternative to conventional staff, I would definitely recommend looking to offshoring or nearshoring,” he says. “But you must go into it with a realistic plan. Chose specific areas. Perhaps non-core areas like administration, recruiting, backup for your customer service team or after-hours monitoring of dispatch. Those are all good areas to investigate where you will see some savings. It does help control cost, but you need to have a longer timeline for training. You need to go into it knowing it’s going to take a while to pay off.”
About the Customized Logistics and Delivery Association
The Customized Logistics and Delivery Association (CLDA) represents the first to final miles of the supply chain in the US and worldwide. This non-profit professional association serves the needs of its 2,900 essential service members who are logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing today’s supply chain companies. The CLDA gives its members access to a diverse network of logistics professionals looking to create new business opportunities and share decades of practical insights. They provide an avenue for amplifying members’ voices on key issues and helps them participate in the regulatory discussions shaping the industry. The CLDA keeps members informed and educated on trends, current issues and best practices. For more information see www.clda.org.
Media Contact
Andrea Obston
aobston@aomc.com
(860) 803-1155 – cell
WASHINGTON, DC., Feb. 7, 2022 — What can providers learn from today’s disrupted supply chain? And how can they use those lesson to re-engineer today’s flawed supply chain? Two logistics veterans say it’s all about taking in those lessons and using them to change the ways goods flow through the system.
“Supply chain disruptions have become our new normal, and we should expect and plan for them in the foreseeable future,” says Chuck Moyer, a 40+ year logistics veteran and a former president of the Customized Logistics & Delivery Association (CLDA). CLDA’s 2,900 members include logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing supply chain companies. Moyer is currently Chief Executive Officer at Pentagon Final Mile & President at ROVA (Transportation Platform Company).
Adam Hill, President & Chief Operating Officer for the Scarbrough Group of Companies agrees that disruptions are here to stay, at least for the near future: “I expect us to see a least another year of this. I think 2022 is going to give us a little bit of a reprieve but I don’t think we’re going to see anything approaching ‘normal’ until sometime in 2023. And even then, I think we’ll need a new definition of normal.” The Scarbrough Group is a full-service international and domestic logistics provider, and a U.S. and Mexican Customs Broker. The group includes Scarbrough International, Scarbrough Logistics, Scarbrough Transportation, Scarbrough Consulting, and Scarbrough Warehousing.
A Flawed System That Finally Broke
Moyer points out that none of the current disruptions are especially new. Many industry observers have pointed out just how frail the supply chain was, even before the pandemic. “Many of the systems in use are antiquated, lack supply chain visibility and the ability for proactive planning.”
Moyer also pointed out that there were pre-existing weaknesses in the supply chain that finally gave way when faced with rising consumer expectations intensified by the pandemic. “What’s happening now only exposed the weaknesses in the supply chain,” he says, “Everyone in the supply chain knew the ports and labor models were fragile. It’s been reported and discussed for many years. What happened with the pandemic just exposed what was already know and the lack of planning. There were problems below the surface, and they just hadn’t reached the breaking point yet. We’ve been talking about these issues forever, but very few companies have really done a good job preparing and taking a proactive approach in dealing with them.”
It Didn’t Start With the Pandemic
Both of these logistics pros saw the roots of today’s issues preceding the pandemic by decades. One of the big drivers was the change in consumer expectations. “It goes all the way back to FedEx and Amazon. They changed consumer expectations,” says Moyer. “Before that, the delivery companies would tell the consumer when to expect their orders (known as the “push model”). Then companies like FedEx and Amazon started to put that power into the hands of the consumer (known as the “pull model”). Changing from the shipper telling the consumer ‘Your package will be delivered in three weeks’ turned into empowering the consumer and shippers asking consumers ‘When would you like it delivered?’ That put stress on the entire supply chain and is here to stay. The expectation of fast delivery, shipment tracking, excellent customer service combined with a flexible return policy and free or low-cost delivery options has everyone reevaluating their solutions.
Hill pointed out that another of the big weaknesses in the supply chain can be traced back to the Recession in the early 2000s. “We’re going have to go all the way back several decades to get a full picture of where we are now.”
The Pandemic Domino Effect
When COVID hit in China, cancelling Chinese New Year celebrations in 2020, the final stressor on the supply chain fell into place. “China was locked down for nine weeks due to the virus,” points out Hill. “Factories were shut down. Production ceased. That caused the steam ship lines to stop servicing those ports. Then, COVID started making its way around the world. Europe shut down. The US shut down. And just as manufacturing in China picked up again, we started to see skyrocketing consumption in the US fueled by lockdowns. Fast forward now and we’re seeing the ports in LA and Long Beach trying to handle a 30-plus percent increase in traffic from their pre-pandemic numbers. Those goods are locked up even now as things ease a bit, but it’s still chaos. The warehouses on the coasts are 130% full. We have more than 20 loads for every individual truck that’s available to come out on the West Coast. It’s just a perfect storm of problems. In the past, we may have had one of these problems and the rest of the supply chain could figure a way around it. We can’t do that now. That’s why I describe what’s happening as chaos. Not disruption. Chaos.”
What Can We Do?
“Disruptions are ongoing and somewhat unpredictable but planning now and changing the way we do business will position companies to take advantage of those disruptions in the future, and gain market share” says Moyer.
Given that many of the supply chain issues are baked into the system, what can logistics providers do? Moyer advises getting as much visibility of the whole process as possible. “When I look at the supply chain issues of today, I believe the root cause is that most companies lack visibility and measurements in their supply chain. What they need is a Control Tower – a way to gain full visibility all the way from the manufacturing of the goods through every leg of the supply chain. That way everyone along the way can spot disruptors in real time and adjust. So, if manufacturing is ahead or behind in their schedule, those picking up the goods can modify their schedules and judge the impact on their warehouses and ultimately how and when they will be able to deliver goods to their destinations. Having real-time systems that are linked to all of your stakeholders, monitors weather, and industry issues (including labor and bottlenecks) will help everyone in the supply chain to plan accordingly. This will allow optimization of every component in the supply chain. If you have that Control Tower you can optimize everything from your agreements to your scheduling, insurance, inventory control, placement of facilities and adjust as needed and keep your customers informed. Creating a pro-active culture and solution is an investment and provides a distinct advantage and ROI”.
Hill points to the human side of the equation when it comes to coping with disruptions in the supply chain. “Partnerships matter. Providers need to do business with people who are like-minded. They must do business with people they trust and know they can depend upon. This is the time where service wins and good partnerships are how you provide a high level of service. The world relies on those of us who make the supply chain work and we need to work together to make that happen.”
When it comes to providing the best service, Hill says that communications are key. “Many of these disruptors will be with us for a very long time and if we’re going to keep our customers it’s going to be all about communication. Communication skills are the key to delivering good service, no matter what disrupts the process. And when those things hit, servicing the client may include having to tell them that something’s not going to happen. Providers will need to be honest when something’s gone wrong and offer solutions to the customer how they’ll take care of it.”
Lastly, Moyer advises that everyone in the supply chain will need to evaluate how they do things. “We’re going to have to streamline operational strategy at every stage of the supply chain,” he says. “That will include improving manufacturing and inventory control, evaluating carrier relationships, searching out vendor management solutions, modifying demand requirements and focusing on workplace environments. Companies will need to invest in their people, artificial intelligence, automation and analytics to find creative solutions to streamline tasks, improve forecasting, gain visibility and improve efficiency. These are complex issues and companies must put strategies in play today and not just hope that the issues will resolve themselves. They won’t.”
Opportunity From Chaos
Hill concludes his observations about disruptions in the supply chain on a positive note. “There are always opportunities created by chaos,” he says. “Find the right opportunity and look for ways to make the most of it. There will always be storms and those that figure a way to make the most of them will come through stronger.”
Looking for ways to flourish in the midst of supply chain disruptions? Turn to the CLDA for webinars, conferences, best practices and support from members in the industry. Contact the association at info@clda.org or visit their site at clda.org.
About the Customized Logistics and Delivery Association
The Customized Logistics and Delivery Association (CLDA) represents the first to final miles of the supply chain in the US and worldwide. This non-profit professional association serves the needs of its 2,900 essential service members who are logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing today’s supply chain companies. The CLDA gives its members access to a diverse network of logistics professionals looking to create new business opportunities and share decades of practical insights. They provide an avenue for amplifying members’ voices on key issues and helps them participate in the regulatory discussions shaping the industry. The CLDA keeps members informed and educated on trends, current issues and best practices. For more information see www.clda.org.
Media Contact
Andrea Obston
aobston@aomc.com
(860) 803-1155 – cell
WASHINGTON, D.C., Jan. 20, 2022 – The 2022 CLDA Final Mile Forum & Expo has been postponed until June due to the resurgence of the COVID virus. The three-day conference will be held from Wednesday, June 29 – Friday, July 1 at the Hyatt Regency Miami.
For anyone who had registered for the event in February, those reservations will remain valid or may be cancelled with no penalty. Those who had booked their hotel reservations will be contacted with more information.
“Given the impact of the Omicron variant, we felt it was prudent to move the event,” says Final Mile Forum and Expo Chair, Tom Jowers. “This event is all about connecting, and we didn’t want any health concerns to get in the way. The Final Mile Forum has a track record of making a positive impact on our members’ bottom lines and that’s what we want them to focus on. The June event will, once again, be a great opportunity for members of the industry to expand their knowledge, grow their businesses, meet shippers, learn about best practices from their peers, build their networks and explore the latest products and solutions. We are particularly excited to welcome the next generation of logistics professionals through our Next Gen Logistics Challenge for college students.”
The event, titled “Staying Relevant in the Final Mile: B2B, B2C, Be Prepared,” will feature educational sessions, meetings with shippers, networking events and a look at the newest industry trends and innovations.
A keynote called “Eruption Not Disruption” will tee up the first day’s educational session. It will feature the secrets of attracting the customers and workforce to grow in today’s disruptive business environment. This program will present insights from bestselling author and IBM Futurist Brian Carter whom LinkedIn dubbed “an expert you should listen to.”
Kicking off Day #2 will be a keynote presentation called “The Great Resignation.” will tee up the first day’s educational session. Conference participants will learn how to attract and retain the best personnel in a post-COVID world from columnist and business management author Gene Marks.
Educational programs will include:
Two roundtable discussions will bring together shippers and carriers, forwarders and brokers from around the country to discuss new business, business strategies and best practices.
The three-day event will also include seven hours of networking opportunities and a look at the future of the industry with innovative solutions showcased in the Exhibit Hall.
The Education and Events tab on the CLDA website will be homebase for changing registration or signing up for the conference for the first time. CLDA members receive a discount on their registration. The association is currently taking reservations for booths in the exhibit hall and there are a variety of sponsorship opportunities available. To reserve a booth or learn about sponsorship opportunities, contact info@clda.org.
About the Customized Logistics and Delivery Association
The Customized Logistics and Delivery Association (CLDA) represents the first to final miles of the supply chain in the US and worldwide. This non-profit professional association serves the needs of its 2,900 essential service members who are logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing today’s supply chain companies. The CLDA gives its members access to a diverse network of logistics professionals looking to create new business opportunities and share decades of practical insights. They provide an avenue for amplifying members’ voices on key issues and helps them participate in the regulatory discussions shaping the industry. The CLDA keeps members informed and educated on trends, current issues and best practices. For more information see www.clda.org.
Media Contact
Andrea Obston
aobston@aomc.com
(860) 803-1155 – cell
WASHINGTON, D.C., Sept. 29, 2021 — Keeping up with record backlogs and the traditional gift buying season will make this Holiday Rush one for the books. That’s the consensus of two industry veterans, one, the owner of a logistics company and the other a supply chain service provider.
Steve Howard is president of the Customized Logistics & Delivery Association (CLDA) and the president of Esquire Logistics, Inc in Florida. Chris Kane is the CEO of Drivv powered by Courierboard & CBDriver also based in Florida.
Both men acknowledge that the unique challenges facing carriers this holiday season make preparing for it a challenge. “It’s a big unknown,” said Howard. “We have been extremely busy all year with peak numbers every day. There are so many unidentified variables that could impact this year’s Holiday Rush. People are already buying on-line in record numbers, so there’s every reason to expect they’ll do the same with holiday gifts. And let’s not forget the last few Holiday Seasons when the big three, UPS, Fed-EX and USPS, struggled with volume. I have every reason to believe that they will be hard-pressed again in handling this holiday season’s volume. That will most likely mean more work for our members, who are mostly regional providers.”
Kane confirmed his expectations of increased volume this year. “I believe we are going to continue to see a huge increase in on-demand deliveries this holiday season from companies, retailers and individuals,” he said. “Everything is being delivered today as people shy away from in-person shopping. There are also backlogs and shortages of building materials that need to be delivered ASAP as they become available. This will be another drain on capacity. There’s also pent-up demand because everyone has been home for over a year. Add those together with holiday gift buying and we’ll see a tidal wave of delivery demand in November and December.”
There are also lingering issues from the pandemic that will have an impact on the 2021 Holiday Delivery Season. The most significant will be getting a large enough workforce. “There is a real challenge at the moment when it comes to hiring drivers and employees,” points out Howard. “We typically ramp up our hiring in October, but we have not stopped hiring all year. It appears that things are starting to normalize again, but with COVID raging in South Florida at the moment there is still a lot of concern about the effects it will have on the available work force.”
Kane has a front row seat on the driver shortage. His company, Drivv, is an online driver recruiting platform for courier companies to engage new drivers. They also have a driver contract website where independent contractors can search driver contract ads from courier companies called CBDriver. “Driver availability is the critical factor that will impact the 2021 holiday season,” he says. “The extended pandemic unemployment benefits have negatively affected the driver population. There are more companies advertising for drivers than ever before on our platform. The competition for professional drivers is intense with an increase in driver ads featuring incentives and sign on bonuses. To respond to these issues, Drivv has added new recruiting features including a search for Master Contractors, so companies can search our database for Master Contractors and see how many drivers and vehicle types they oversee.”
Both men expect to ramp up the search for drivers. “We are planning on a hiring blitz a month earlier than normal,” says Howard. “Our goal is to have an excellent team in place well before the historic beginning of peak which is usually around Black Friday.” The CBDriver platform will be rolling out a new online driver community forum, DriverTalk, which will help drivers connect, find new driving opportunities and share information with other drivers.
This escalating race to find, train and get more drivers up to speed will put tremendous pressure on logistics companies for the holiday season. “Bringing on staff early can be a challenge because of the cost of adding them well before you need them. The reality is that the company that has the delivery staff will most likely win!” says Howard. Drivv and CBDriver is already seeing that trend. “Demand is up for courier delivery services and drivers,” says Kane. “The volume of driver ads posted on Drivv /CBDriver is up by over 300% versus last year.”
Flexibility and early recruitment will be the keys to surviving Holiday Rush 2021, according to these two industry pros. “Start recruiting now!” advises Kane. “Drivers are essential to handle the anticipated high demand this Holiday Season and companies should use as many different resources as possible to recruit them.” Howard adds: “My advice is to be ready to adjust quickly. None of us knows what this season will look like but being prepared is critical to your survival.”
About the Customized Logistics and Delivery Association
The Customized Logistics and Delivery Association (CLDA) is a non-profit professional association that connects and leads members of the time-critical logistics and delivery industries. The association serves the needs of its 2,900 essential service members who are logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing today’s supply chain companies. The CLDA gives its members access to a diverse network of logistics professionals looking to create new business opportunities and share decades of practical insights. They provide an avenue for amplifying members’ voices on key issues and helps them participate in the regulatory discussions shaping the industry. The CLDA keeps members informed and educated on trends, current issues and best practices.
Media Contact
Andrea Obston
aobston@aomc.com
(860) 803-1155
MAY 25, 2021 – WASHINGTON, D.C. – The COVID-19 pandemic has changed the ways shippers and 3PLs connect with last-mile transportation providers. Many shippers and third-party logistics (3PL) companies formed new strategic partnerships in the face of these changes to combat same-day delivery expectations fueled by the “Amazon Effect” during lock-down.
That was the conclusion of a new whitepaper entitled The Age of Amazon: Why 3PLs & Last-Mile Delivery Fleets Must Draw Closer. The whitepaper is a joint project of the Customized Logistics & Delivery Association (CLDA), the trade association for final-mile delivery companies, and the Transport Intermediaries Association (TIA), the voice of the third-party logistics (3PL) industry.
“The last-mile sector has growing opportunities for 3PLs to broaden their menu of supply chain services by creating partnerships with local fleets operated by CLDA members,” said Steve Howard, president of CLDA. “That’s why we partnered with TIA to create this whitepaper and offer it to every member of the supply chain.”
“The final-mile logistics is an important relationship for our members and is a multi-billion-dollar industry that plays an integral role in the supply-chain, noted Anne Reinke, TIA President & CEO TIA “We brought together the expertise of the two associations’ members as well as industry analysts to highlight that relationship and to pinpoint trends where 3PLs and last-mile delivery providers can join together to compete against Amazon’s market dominance.”
The whitepaper points to four areas where these two players in the supply chain can and have worked together to meet the increasing demands of consumers.
E-Commerce: With people spending more time at home during the pandemic, online sales increased by 44% in 2020 to reach 21.3% of total retail sales. Delivery of heavy goods purchased through e-commerce channels is an area of opportunity the whitepaper cites for fleets that can meet specialized delivery requirements such as setup and reverse logistics for items such as medical devices, exercise, and home office equipment.
Medical Lab Logistics: Laboratory tests for blood and tissue samples are conducted 13 billion times a year in the United States and have time-sensitive and specialized handling and delivery requirements. Last-mile providers have seen their medical business increase significantly during the COVID-19 pandemic, including work transporting vaccines with hospital networks.
B2B: Freight opportunities in the B2B last-mile sector abound for pallet-sized LTL freight and heavier items that have unique service requirements such as after-hour deliveries to business and residential customers. These are best met by a combination of 3PL and last-mile providers. Motor carriers and 3PLs are chasing opportunities in the last mile of this sector to offer blended warehousing and delivery services that smooth order fulfillment for customers that experienced supply chain disruptions from COVID-19.
Special Projects: Last-mile fleets that operate facilities near large urban centers, like New York City, are seeing demand increase from shippers, 3PLs, and motor carriers to utilize their local delivery services. These customers are dropping off large-volume truckload and LTL shipments at their docks. Last-mile carriers separate volume loads into smaller shipments and make urban deliveries on repeat schedules, such as distributing shipments to retail stores.
Drawing on the expertise of industry analysts and members of both associations, the whitepaper also identified a number of additional facts about the supply chain:
Download for Your Free Copy Now!
About the Customized Logistics and Delivery Association
The Customized Logistics and Delivery Association (CLDA) is a non-profit professional association that connects and leads members of the time-critical logistics and delivery industries. The association serves the needs of its 2,900 essential service members who are logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing today’s supply chain companies. The CLDA gives its members access to a diverse network of logistics professionals looking to create new business opportunities and share decades of practical insights. They provide an avenue for amplifying members’ voices on key issues and helps them participate in the regulatory discussions shaping the industry. The CLDA keeps members informed and educated on trends, current issues and best practices.
CLDA’s Final Mile Forum & Expo is expected to be the logistics industry’s first national conference to be held in-person following the COVID-19 pandemic. It will take place June 23-25 at Caesars Palace in Las Vegas and will feature educational sessions, networking events, and a front-row seat to the industry’s latest innovations.
For more information see www.clda.org.
About the Transportation Intermediaries Association
The Transportation Intermediaries Association (TIA) is the professional organization of the $214 billion third-party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials, and international organizations.
Whether you are a seasoned veteran of the annual TIA 3PL Policy Forum or a potential first-time attendee, join your fellow TIA Members in helping shape the future of the industry in the nation’s capital. The 2021 TIA 3PL Policy Forum is a hybrid event featuring in-person and virtual registration options and will take place September 28-29, 2021 in Washington, D.C. Over 100 TIA Members participated in the 2019 Policy Forum, where they met with over 200 Members of Congress and their staff to support the 3PL industry, the Motor Carrier Safety Selection Standard, and the USMCSA trade deal.
For more information see www.tianet.org.
Earlier this week, the US Department of Labor (DOL) released the text of the Wage and Hour division’s final rule on Independent Contractor status under the FLSA. You can find the full text of the rule here.
CLDA’s comment to the Department of Labor was quoted in the text of the final rule (page 36 of the PDF). However, our analysis indicates that the DOL has not incorporated the requests by CLDA and many others to significantly refine the particulars of the rule text as it was initially proposed. Read more.
WITH THE EXIT OF MAJOR CARRIERS, THE COURIER INDUSTRY HAS AN OPPORTUNITY DELIVERING FOR THE GROWING VAPING AND E-CIGARETTE SECTORS
WASHINTON, D.C., April 13, 2021– Recent regulatory changes to the Prevent All Cigarette Trafficking (PACT) Act have created an opportunity for those in the courier industry. The changes make the delivery of vaping and e-cigarettes more challenging, but one industry expert says they also open the door for those in the courier industry.
“These carriers have the flexibility and trust to handle these products,” says Jim Bramlett, Chief Executive Officer at 5 String Solutions in Leawood, Kansas. “These are carriers for the pharmaceuticals industry, so they understand what it takes to operate in this kind of controlled environment.” 5 Strings Solutions offers a network platform that provides real-time data exchange between shippers and their partners. They are active members of the Customized Logistics & Delivery Association (CLDA).
The increased requirements have meant that all of the major carriers are refusing to deliver for the vaping products industry. Not only have UPS and FedEx announced that they will no longer handle these products, but DHL, Lasership and OnTrac are also refusing to work with this industry.
This has caused many online vapor retailers to look for shipping partners among private logistics companies. The new PACT Act law changes went into effect in late March and apply to any carrier that transports vaping and e-cigarette products. The law requires that any carrier that transports these products and delivers them to a consumer’s home must verify the age and identity of the customer at purchase, check IDs, obtain adult customer signature at delivery, and maintain records of delivery sales for four years after the date of sale, among other things.
“Because of these complexities, I believe that this is a space that couriers could jump into,” says Bramlett. “The large delivery companies have been passing on this because it takes too much time to ring the bell, verify that the person signing for this is of age, capture their signature and keep it on file for four years. The big carriers prefer drop and run.”
Bramlett acknowledges that the business may not be right for every courier. “I’ve spoken to some who say, ‘“I’m in the health and life-saving industry delivering pharmaceuticals. I just can’t get there. This doesn’t match with my company’s ethics.’ Others may be put off by requirements the PACT Act puts on them to make sure the products don’t end up in the hands of younger consumers. These are all part of each company’s induvial decision-making processes and obviously have to be considered before taking on this business.”
For those couriers that are not interested in dealing with the restrictions around home delivery, there is another part of this vertical that may be right for them: working with manufacturers to get their products to retailers. “As a rule, these small retailers are only looking at stocking 16 to 18 orders a day,” he says. “Couriers will need to find ways to aggregate those and move them out effectively. Shippers want to use someone who can take it from a central point and take it to, say Los Angeles, and then have someone else (a courier) take it to retailers. This part of the last-mile supply chain is a very comfortable place for couriers. They are used to managing these kinds of challenges. Customized deliveries are what they do.”
“The members of this industry are known for their ability to adapt to the unique demands of shippers. For those who are interested in pursuing it, this could be an opportunity,” says CLDA President Steve Howard.
Bramlett believes the courier industry has an opportunity with these deliveries if they can create systems to manage the extra requirements imposed by the PACT Act. “This is a wake-up call to the courier industry,” he says. “This business is yours for the taking and there’s more behind it. Regional couriers are experienced in the challenges of working with controlled substances, nimble enough to adapt to their requirements and fueled by the creativity that has always characterized this industry.”
About the Customized Logistics and Delivery Association
The Customized Logistics and Delivery Association (CLDA) is a non-profit professional association that connects and leads members of the time-critical logistics and delivery industries. The association serves the needs of its 2,900 essential service members who are logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing today’s supply chain companies. The CLDA gives its members access to a diverse network of logistics professionals looking to create new business opportunities and share decades of practical insights. They provide an avenue for amplifying members’ voices on key issues and helps them participate in the regulatory discussions shaping the industry. The CLDA keeps members informed and educated on trends, current issues and best practices.
Media Contact
Andrea Obston aobston@aomc.com
(860) 243-1447 – office
(860) 803-1155 – cell
WASHINGTON, D.C. Feb. 22, 2021 — Last-mile company executives may be able to get their drivers the COVID-19 vaccine right now regardless of their age. One owner of a courier company created that opportunity, and now all of his drivers who wanted to be vaccinated have received it.
Ben Kaplan, the owner of Rightaway Delivery in Romulus, Michigan reached out to one of the bigger hospitals his company serves to make his case. “I called my contact at the hospital and said ‘We’re such a vital part of your operation and we represent you. It’s common sense for you to want our drivers to be protected.’”
Rightaway delivers medications from the hospital’s pharmacy, handles specimens from their labs and makes sure their COVID-19 tests get to the labs to for processing. In all, they work for 20 departments and 120 satellite offices around southeast Michigan for that one hospital.
When Kaplan first made his case to one of his contacts, she said he could only send in the drivers to be vaccinated who worked for her department. “What she didn’t realize was all the other departments in her hospital we take care of,” says Kaplan. “Once I explained that, she realized the smartest thing to do was to protect everyone in our company.”
As a result, Rightaway was able to offer the vaccine to anyone in the company who wanted it. “The lesson for other carriers is to make your case to all of the departments at every hospital you work for, including the clinics and labs,” says Kaplan.
Many Rightaway drivers and employees seized on the opportunity to get vaccinated. “They had a one-week window to fill out the paperwork, and everybody who wanted to got it,” says Kaplan. “It was a personal choice. We could not force people to get it. All I did was offer them the opportunity.” Kaplan, himself, jumped at the chance to get the vaccine.
Reactions from his drivers and employees has been overwhelmingly positive. “They told me they felt very lucky,” he says. “So many have thanked me. The people who wanted shots were pleased. They had been worried.”
He urges all last-mile company executives to do the same. “You should have a good enough relationship with your hospital customers to be comfortable making that request,” he says. “Tell them ‘We represent you. We come into your hospital. We are a part of your operation. Don’t you think we should be considered a priority alongside healthcare workers?’”
Medical work is a critical part of Rightway’s business. Since the pandemic hit, they have been transporting 1,000 COVID-19 tests per day for multiple customers, getting them to local labs or on planes to labs in Kansas City, Salt Lake City and Atlanta. They also pick up and deliver tests to 40 Walgreens on the weekends. It’s all an extension of their extensive work for hospitals, labs and clinics, which is a large part of their business.
Kaplan is on the board of the Customized Logistics and Delivery Association (CLDA), the trade association for last-mile carriers and drivers in North America. Since last December, the association has been reaching out to legislators and government officials to request that their workforces be designed as essential workers and therefore eligible to receive the vaccine on a priority basis. In the initial stages of the pandemic, CLDA’s efforts meant that this industry was declared essential so workers could go to their jobs when stay-at-home orders were in place. However, that hasn’t helped get their workforces access to the vaccine yet.
CLDA reached out to state health departments to put their drivers into the Phase 1b vaccination category. “We asked them to put us in the Phase 1b category as frontline essential workers or to move them up because of the medical importance of their services,” says Michael Taylor, CLDA government affairs director. “The Director of the CDC adopted the recommendations of the Advisory Committee on Immunization Practices (ACIP) that our workforce fit in Phase 1, but ultimately the decision of whether we fit into Phase 1b for frontline essential workers or in Phase 1c for other essential workers is in the hands of each state’s health department. The dialogue has been different depending upon the state. Several states have accepted our position. We urge all members to reach out to their customers on a local level to make things even more likely to happen.”
Kaplan advises other carriers that work in the healthcare environment to do what he did to get his people vaccinated. “My advice is to go ahead and do this on your own. If you’re working with a hospital, why wouldn’t you call? What do you have to lose? And what have you got to gain for your people?”
About the Customized Logistics and Delivery Association
The Customized Logistics and Delivery Association (CLDA) is a non-profit professional association that is the voice of the time-critical logistics and delivery industries. The association serves the needs of its 2,900 essential service members who are logistics professionals, carriers, shippers, drivers, air cargo logistics providers, 3PLs and vendors servicing today’s supply chain companies. Since 1987, CLDA has provided business opportunities, advocacy and education. For more information see www.clda.org.
Media Contact
Andrea Obston aobston@aomc.com
(860) 243-1447 – office
(860) 803-1155 – cell
