Over two-thirds of the heavy building materials industry will be outsourcing their logistics services in the future. Materials suppliers realize they don’t want to manage last-mile logistics because of the expense of owning assets, so they outsource this.
Matt Brinker, Product Manager at Command Alkon, discusses how outsourcing logistics can benefit both companies as long as effective communication and collaboration is in the mix.
" The truck driver shortage is real — and it’s not getting any better as more truckers retire and fewer younger drivers pursue truck driving as a career. With the booming economy and growth in the construction market, demand for trucking services continues to grow. Truck capacity is even tighter and will continue to get worse. To increase productivity in the midst of the shortage, heavy building materials businesses need to be able to do more with what they already have.
In the heavy building materials industry, some companies operate their own trucks to ship raw materials and/or finished products to customers, while others use third-party hauling companies to deliver materials. Leveraging third-party haulers is a sustainable, low-capital strategy to increase fleet size as the construction business continues to grow. Materials companies are constantly driven by production, oftentimes reaching out to third-party haulers to find capacity. To make outsourcing logistics beneficial for both parties, suppliers and haulers need trusting partnerships. One way to build this trust is to use logistics technology that provides visibility into the status of an order and enables collaboration between trading partners."