Resources to Weather Severe Supply Chain Shortages in 2022
Will Supply Chain Shortages Affect Your Company?
Supply chain shortages have made national headlines for several months now, and it doesn’t look like there’s an end in sight anytime soon. This national focus has led many, including the current administration, to ask “what’s causing the supply chain issues?”
The answer to this question isn’t simple. There are many issues that have led to the breakdown in transporting goods. The possible solutions are also complicated.
The big question on the minds of those in the transportation industry is, how will this shortage affect your company and your drivers?
Contributors to the Supply Chain Problems
Many people blame the COVID pandemic for the supply chain shortages, but the pandemic only highlighted issues that already existed. Some of these issues include:
- “Just-in-time” inventory delivery
- Foreign manufacturing being cheaper than domestic
- Heavy transportation industry regulations
- Driver pay scales
Ironically, the supply chain shortages have also led to further issues. Due to lack of materials, needed equipment can’t be produced, making it difficult to increase manpower to get through the crisis. Companies are on waiting lists at minimum six months for needed equipment.
Regulations on how driver pay is processed, coupled with a struggling economy, makes it difficult to pay drivers what they are worth, adding to an ever-growing driver shortage. The inability for drivers to purchase trucks also increases the driver shortage issues.
The Pandemic and the Supply Chain
With problems already creeping up, the pandemic led to increased online shopping when people couldn’t get out as much as before. Manufacturing companies had to shut down at this same time, leading to product shortages.
The shutdown also led to backups at ports and shipping containers unavailable in areas that needed them to ship more product. As shortages of certain products increased, the problems trickled down leading to further shortages for other products.
Shipping costs increased as shortages got worse, and delay times increased meaning drivers were unable to meet deadlines. At this point, without good solutions, supply chain shortages will likely continue through 2023.
Is There a Good Solution?
The current administration is attempting to step in and provide different means of recruiting new drivers and increasing labor time at major ports. They intend to target veterans for transportation jobs as part of their solution.
The administration also wants to create a task force dedicated to recruiting more women into the industry. These efforts are on top of the apprenticeship program included in the recently passed infrastructure bill.
The Department of Transportation (DOT) and Department of Labor (DOL) are also getting involved. Representatives are putting effort into a better understanding of delay times and how these delays affect driver pay.
Critics of these efforts are concerned that trying to deal with recruitment issues without fixing underlying problems will only make the problem worse. So, is there a real solution? That remains to be seen, but there are steps trucking companies can take to keep afloat.
Protect Your Company During the Supply Chain Crisis
Trucking companies are struggling to keep good drivers and struggling to access needed equipment during this difficult time. This makes it more important than ever to take care of the resources you have available.
Keep Up with Truck Maintenance
With material and equipment shortages, it’s more important than ever to keep the equipment you have, including your trucks, on the road and running smoothly. Truck maintenance will reduce your chance of losing one of your valuable trucks during this time.
Take Care of Drivers
Driver turnover has been a real issue over the years, but this is a time when you really can’t afford to lose valuable drivers. Make sure you are listening to your drivers and meeting their needs so they are willing to stick around. This includes making sure you bring in drivers who are a good fit for your company goals.
Ongoing Training is Essential
Industry regulations and trends can change rapidly. To protect your company and your drivers, you want to ensure they are aware of these changes. With supply chain shortages and driver shortages, you want to make sure you don’t lose a driver to CSA violations or accidents.
Online Training and Communication Solutions to Keep Your Company Moving Forward
Since it’s harder than ever to pull drivers off the road for training and meetings, you need an effective online training and communication solution. Infinit-I Workforce Solutions provides the tools you need to keep drivers up to date on regulations and needs to combat supply chain shortages.
Access 1100+ training videos to keep drivers safe and continuing to move product or develop custom content for training or awareness. Drivers can access training and communications from any device with an internet connection, so you’re not adding to their stress and frustration pulling them away from their source of income.
See for yourself how Infinit-I can keep your company moving forward through any industry concerns. Request a free demo today!