The transportation industry is at a crossroads. E-commerce, increased competition and new markets have made the shipping of goods more vital to continued growth than ever before, but finding people to handle the transportation of those goods has never been harder. The industry faces a severe driver shortage, and while grocers may not be involved in the day-to-day struggles the industry faces, it affects them in the form of higher costs and additional difficulties to get the goods they depend on to deliver to their customers every single day.
Changing in reaction to a changing market
For years many grocers have remained committed to a mode one transportation model. They have partnered with a big-box transportation system and embraced everything that comes with that, including the good (wide network, dependability) and the bad (high costs of customization).
However, as the driver shortage worsens and the marketplace has evolved, many grocers may actually be doing themselves a disservice by staying loyal to their conventional mode one solution.
It’s time to start researching other options.
Mode two and the benefits of customization
Unlike the conventional model, a mode two solution utilizes a more expansive, adaptable network of transportation solutions, including a partnership with third-party logistics providers to handle excess demand or specific needs in special situations.
This mode provides grocers real strategic value and the ability to utilize solutions such as less-than-load trucking in order to complement other existing loads, mitigate the challenges of the current driver shortage and drive additional value without an increase in cost. All of which can be achieved as an add-on to their existing solutions, with little to no impact on current day to day operations.
Gaining more with gainshare
A gainshare model offers grocers and transportation providers with real benefits. For grocers, it provides the ability to customize the solutions they need in a cost-effective way and enjoy additional protections from the volatility that exists in the modern transportation market.
Perhaps best of all, there’s no need to invest in any capital expenses to make the most of a gainshare program. You just have to have the right network in place and we can help. Contact our Logistics & Distribution team at Topco Indirect to learn more about gainshare programs and how we can help you return the cost and product dependability you’ve come to expect from your transportation program.