As all of us serving the Metal Scrap Community have experienced there has been new constraints that we have experienced. This has been caused by services issues we have all experienced by Carriers and drayage companies. Carriers don’t have equipment or space on the vessels, schedules are ever changing, effecting drayage companies. Planning for these kinds of disruptions is very difficult. The only way to plan for these types disruptions is to increase planning work internally within your organization working with the sales, contract and transportation teams and clearly communicate with your partners, Mapping out future sales by looking at past contracts and then communicating those plans throughout your organization and with partners such as Freight Forwarder 3PLs and your other transportation partners.
There is a fundamental shift between using just in time service that rely on Carriers and Drayage companies to fill orders and act as warehousing or inventory control that has been the standard practice for the last several years. The “Just in Time” environment we have become used to, is no longer a practical way of managing inventory and handling contracts. There is a fundamental shift that is taking place in this current environment and for the near future. Planning contracts and sales and working closely with your Transportation Departments and Partners has become an ever more important part of controlling inventory and sales. Understanding the realities of todays transportation environment is a necessary reality in controlling costs.