3 Ways a Regional Supply Chain Strategy Can Save You Time and Money

If your business frequently ships production materials or goods for national distribution, a regional strategy could unlock significant cost-savings and improved efficiency. A customized plan that includes a range of transport modes and strategically located storage facilities may meet your needs more efficiently by drilling down to specific regions.

Here are the three main components of a regional strategy that can substantially benefit your business:

1. Transportation

Moving freight over medium distances allows for greater flexibility with transportation modes ⎯ a combination of modes managed by a transportation company with access to tractor-trailers, sprinter vans and straight trucks can often deliver the best results.

The use of multiple modes over medium distances can optimize the transport process based on the type of freight. It’s an especially good solution for transporting products that have a relatively short expiration period or seasonal demand; for example, groceries or production materials for holiday-themed products.

By combining transport modes over shorter distances, shippers can also operate a more environmentally sustainable supply chain, because each mode is more fit-for-purpose with less waste.

2. Warehousing

Deciding where to store production freight requires careful thought. You may not have access to a local facility and storing freight on trailers is generally not a good alternative. It can be expensive, and it increases the risk of damage or theft. In many cases, outsourced storage is the best solution.

By using a regional warehouse, you can take advantage of:

  • Faster speed to market
  • Lower handling costs
  • Readily available storage capacity
  • The efficiency of having freight close to production facilities or end markets
  • Scalable storage options that flex with your needs
  • Secure locations for high-value or sensitive items
  • Value-added services (depending on the warehousing provider), such as packaging, labeling and kitting

You’ll be retaining the same level of access to your materials or finished goods as if you store them yourself, but outsourcing eliminates most of the risks and fixed costs.

3. Expedite

When you combine regional transportation and warehousing with an expedited transportation component, you have a comprehensive solution that covers all bases.

An expedite service provider with regional operations allows you to move time-sensitive goods or production materials as quickly as possible without generating extra costs for same-day or next-day freight.

You may not need expedite services often, or you may need them frequently as part of a just-in-time production model ⎯ in either case, developing a relationship with an experienced transportation provider with regional expedite capabilities can be extremely time- and cost-effective.

Right for You?

Many companies are rethinking their supply chain strategies coming out of the pandemic. Your supply chain may benefit from an integrated network of regional operations moving freight from storage to destination over medium distances, with a last-minute expedite capability.

Contact Hurtler to learn more about whether this type of solution makes sense for your business.

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