RATES? UP. PORTS? BACKED UP. BUSINESSES? FED UP.
We don’t know whether it’s 2022 or 2020 Take 2 considering businesses of all sizes are still feeling the teeth-grinding frustration of the supply chain crisis. It’s been two years of jammed ports and increased costs and there still doesn’t seem to be an end in sight. The result? Companies’ bottom lines are impacted, big time.
Backed-up ports are one thing. But ports that have been backed up for years have businesses all across the country reeling from the long-term effects. One example is the incoming cargo at the Port of Los Angeles. It saw record levels in 2020, only to increase by 30% by the end of 2021. Ships were forced to wait off the California coast, unable to load and not knowing when they’d be able to dock. The East Coast is facing the same issue. At the end of January, the Port of Charleston had a backup of 19 container ships. But it’s not just ships that are facing this issue. Trains are also overwhelmed. Chicago—one of the most important railroad centers in the country—saw a backup of 25 miles.
So, if ships, trains and trucks can’t find a spot to unload that means your business isn’t getting any goods any time soon. And it’s not just jammed ports messing with the management of the supply chain.
Shipping rates have increased once again, breaking previous records.
Three huge carriers: UPS, USPS and FedEx raised their rates at the end of 2021 and beginning of this year. It’s now 8% more expensive to ship goods with USPS and nearly 6% more for UPS and FedEx. Those increases are on top of the fuel surcharge—the largest companies have witnessed in years.
In short, the supply chain world is chaotic. So if you’re wondering how to keep up with inventory and keep your costs manageable at the same time, we have the short answer.
CO-CAPTAINS OF YOUR SUPPLY CHAIN JOURNEY.
At Ernest, we specialize in solving the unsolvable, even the seemingly never-ending supply chain crisis.
Businesses who rely on overseas shipments have been disappointed time and time again—and that disappointment may not end soon. Goods made abroad, paired with the lack of shipping containers available at ports in Asia, is a recipe for disaster and disappointment. We’ll help keep you moving with our team of experts, who partner with local suppliers throughout the country. By staying local, you can get what your business needs quicker while avoiding certain global shipping challenges.
Ernest Managed Inventory, or EMI, is our solution for getting your business exactly what you need, when you need it. EMI works with local providers, cutting out delays that come with relying on packaging from overseas. Another plus? It saves you space, so your business can use the extra room for more crucial items that really move the needle. It’s all designed to keep your company thriving without the shortages, hassles or headaches.
See how it’s helping our clients here.
If it’s increased shipping rates that’s getting you down, you can count on Ernest to lift you up. Rates may always change, but there’s one thing that stays 100% the same: our dedication. We’ll take the time to understand your company’s needs, work together to offset costs and save you valuable time in the process. One way to avoid increased rates is to decrease the size of your package. Our specialists can redesign your box to your liking, in turn, shrinking the box’s footprint and helping your bottom line.
ERNEST SUPPLIES SOLUTIONS.
At Ernest, we’re always here for you and your business. We want to see you succeed and we have the tools to help you make it happen.
While we’re not sure when the supply chain backup will end, we do know that our team of experts is always at the ready. Together, we can weather this storm and come out even stronger by providing you with solutions to keep the workflow flowing and your business humming.
So, if you’re ready to unburden yourself from the supply chain strains and get things running smoother, reach out to us today. Our Senior Design Specialists will provide you with a free assessment to solve supply chain issues, saving you time and money in the process.