Since the COVID-19 pandemic, shippers have made changes to their transportation procurement strategies to enable greater flexibility across the supply chain. According to a new report from Amazon Freight and Supply Chain Quarterly, Shedding the bad, keeping the good: How shippers are rethinking freight for the future, 74% of shippers said their strategy is different today than it was prior to the pandemic.
The findings are based on a survey of Supply Chain Quarterly’s readers. The results give a deeper understanding of the impact of the pandemic on both freight procurement strategies and transportation strategies overall. Respondents included logistics and supply chain professionals as well as top executives working for manufacturers, retailers, wholesalers, and third-party logistic companies.
“The survey shows us that many shippers realized that they had to revamp their shipping methods and transportation networks for greater supply chain scale and agility,” said Rebecca Salt, Director at Amazon Freight, who presented the results at the CSCMP Edge Conference in early October. “While they are used to the inevitable disruptions of transportation, the pandemic was a massive one, and it reshaped their desire to better manage any situation.”
When asked to identify the top changes made, 61% of respondents said that they broadened their carrier base, which was the top response. In addition, 26% said they added 3PLs to their roster. In one respondent’s words: “The pandemic taught us the importance of flexibility and diversification in transportation procurement. We now prioritize multiple carriers and adaptable strategies to navigate unforeseen disruptions effectively.”
What is most striking is how shippers are continuing to adapt. Fifty-seven percent—the majority of respondents—said they expect their strategy to change even more in the next 12 months. They are seeking more stability to build up protection from future volatility, including investing in longer-term solutions.
“What this tells us is that shippers are not resting on their laurels but continuing to refine their strategies as the supply chain ebbs and flows,” said Salt. “It gives me confidence in the ability of shippers to manage whatever lies ahead.”
How else are shippers’ strategies changing and what do they foresee down the road? Get the full story by downloading the report here.
