Ongoing capacity problems are not only expected to remain but will also become worse due to truck driver shortages, here is how your company can combat it.
The landscape of the print industry has changed widely over the last few years. Many publishers, manufacturers, and retailers alike are feeling the effects of extended lead times, supply chain bottlenecks, and now a shortage of transportation options with a 7:1 load to driver ratio¹.
The American Trucking Association (ATA) reports in 2021 that:
The truck driver shortage hit a historic high of over 80,000 truck drivers. At current trends, the shortage could surpass 160,000 in 2030².
This shortage is compounded by:
What to Do About It
Their executive summary further states "because there is no single cause of the driver shortage, that means there is no single solution." However, many publishers are moving towards plan B: just-in-case inventory model.
In order to accommodate longer fulfillment lifecycles, publishers are now retaining a greater amount of inventory. In addition, to combat supply chain delays or unexpected lapses in paper or product availability, many are turning to their printers to provide their new requirements for warehousing and fulfillment. This tactic reduces the probability of selling out books and simultaneously accounts for the influx of demand.
Although carrying inventory may have some risks, publishers should rely largely on their sales forecast and inventory performance data. With the aid of this information, brands can optimize their lead times without increasing the looming risk of backorders or supply shortages. Printers can also assist by using their in-house warehouse management and transportation tools and experience to determine optimal routing for inventory locations and drop shipping to get products to customers faster.
While these circumstances are not optimal, we must adapt to ever-changing market conditions. One thing is for certain, publishers need to make sure they are partnering with the right printers who can help navigate these seemingly murky waters and ensure that your brand is being maintained and your customers are satisfied.
¹Morgan Stanley, DRY VAN TL INDEX, October 2021
²American Trucking Association, ATA Driver Shortage Report, October 2021
Bradford & Bigelow is a leading book printer that specializes in warehousing and fulfillment. We can help you strategize your just-in-case inventory plans and help you combat transportation shortages. To learn more, schedule a meeting with one of our representatives today.
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