From passenger planes to semiconductors, American manufacturers have always made substantial contributions to the international economy. Due to recent global economic uncertainty, U.S. manufacturers and their potential to move our economy ahead are in the spotlight. While nobody can predict the outcome of international trade talks, manufacturers can take steady steps towards success by carefully considering their logistics plans.
Shaker supports logistics for many American manufacturers and understands the importance of operating at a higher level for long-term success. We connected with Carlos Flores, VP of Business Development and Manufacturing Solutions at the Center for Economic Growth (CEG), to discuss why supply chain planning is mission-critical for manufacturers.
Support for American Manufacturers
Based in Albany, New York, CEG is part of the Manufacturing Extension Partnership (NIST-MEP) national network. The mission of MEP centers like CEG is to help strengthen and grow small and mid-size manufacturers through operational improvements, workforce development, and strategic sales / marketing engagements.
The MEP centers help U.S. manufacturers strengthen supply chain management practices to enhance competitiveness through a web-based best practice assessment in nine categories. One of those categories, and an area often highlighted for improvement, is Transportation and Logistics.
Logistics Is More Than a “Necessary Evil”
“One supply chain opportunity for manufacturers is to recognize the vital importance of their distribution strategy,” said Carlos. “Thinking about third-party logistics (3PLs) as a necessary evil or a simple pass-through cost, rather than something they can improve, could limit success. Shippers who get complacent with the selection of their logistics partner miss out on chances to make their operation more efficient and customer-centric.”
For manufacturers trying to insulate their business from market volatility, efficiency is the key word. Small and medium-sized manufacturers’ vertical integration for streamlining transportation might not be the right option for them.
“Owning and operating their distribution fleet brings additional financial and operational challenges, often distracting them from their core business. One way to create efficiencies is to work with a reputable 3PL who offers value added beyond the cost of the freight,” Carlos said.
Shaker Logistics works collaboratively with our clients, prioritizing efficiency from the outset of the partnership. Our team understands our clients’ business, analyzes their shipping needs, and implements a customized service plan to efficiently fulfill those transportation requirements.
Collaboration in the short-term can help manufacturers be ready for a long-term, mission driven strategy to fortify their logistics plan.
“You need to ensure that everything you’re doing moves the needle towards success,” said Carlos. “Continuous improvement must be the way to survive and operate, and your company’s mission needs to point to that. This is something that small and medium manufacturers struggle with, because their executives already have too much on their plate. They need to find a logistics partner that makes it easy.”
For key decision makers who have full schedules, a 30-minute conversation with their 3PL can seem like a big ask. However, that conversation can end up being the difference between inefficient operations and long-term success.
One of Shaker’s paper manufacturer clients was having trouble on a critically important shipping lane. Five days a week, they shipped trailers of finished paper from their Ohio plant to their New York facility, while also shipping unfinished rolls of paper from New York back to Ohio. Production at both facilities ended late at night, and the finished goods were due in New York early the next day for local distribution, so timely service was a high priority. The incumbent carrier working on that lane often picked up late or not at all, which significantly disrupted the manufacturer’s supply chain.
After years of partnering with Shaker, this manufacturer trusted our team’s commitment to excellent service. They confided in Shaker about this issue and challenged us to invent a custom solution for them. Our team worked hard to deliver this project plan that fits the manufacturer’s exact needs:
One Shaker fleet driver domiciled in New York and one partner carrier domiciled in Ohio each picked up a full trailer from their respective locations at 9pm. They then drove through the night to meet at a secure halfway point in Western New York, swapped trailers, and returned to the original facilities before 7am. This was a no-fail project, so Shaker was ready with solutions to any problem a driver might encounter in transit. Shaker ran this overnight relay five days a week for several years without a single failed delivery, making sure the manufacturer was always ready to deliver on time to their customers.
The value of trust and communication with your 3PL goes beyond a dollar amount, and the results can spell efficiency and success for your operation.
3 Ways to Improve Your Manufacturing Logistics
1. Recognize how much logistics can drive your business.
Manufacturers need to acknowledge that logistics is very important and not just a pass-through expense. Efficient logistics process improvements could be the deciding factor a client will prefer to do business with you, and not your competitor.
2. Be strategic.
Plan your distribution strategy considering the total cost of delivery, not just the price per mile or per trip. Provide value-added services that could benefit your clients.
3. Maximize the relationship with your 3PL partner.
Manufacturers who have the most success are the ones who communicate openly and proactively with their 3PL. Talk about your needs, goals, and pain points, so your 3PL can support you and your clients accordingly.
“Logistics is more than just getting your goods from point A to point B,” said Carlos. “It can be a way to elevate your business to another level.”
Expert Manufacturing Logistics Services
Shaker Logistics has over 30 years of experience supporting manufacturers across the U.S. Reach out to our team today, and we can Move Ahead together.