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5 Supply Chain Issues That Impact Freight Procurement
Supply chain issues like fuel costs, capacity shortages, and weather disruptions directly impact freight procurement. Unfortunately, they occur every day, drive up costs, slow down deliveries, and complicate freight buying decisions.
Transportation managers have a lot to manage. Fuel prices change. Trucks aren’t always available. New regulations make things harder. Bad weather blocks shipments. Busy seasons increase prices.
Smart planning means preparing for these problems before they happen. Companies that plan for these logistics issues save money, keep customers happy, and get ahead of competitors who react too late.
Knowing these 5 supply chain issues helps your logistics team work better. With good planning you reduce costs, improve service and stay strong when things go wrong.
5 Supply Chain Issues That Impact Freight Procurement
There are a number of supply chain issues that can impact freight procurement and the entire process. Learn about five of the most common ones below.
1. Fuel Costs
Fuel prices change fast, creating major cost and planning challenges. When diesel gets expensive trucking companies raise their rates. These changes happen quickly. In fact, fuel surcharges can account for 20–30% of total freight costs in volatile markets.
Carriers add fuel surcharges when prices go up. Base rates go up too. Transportation managers need to plan for these cost swings which make budgets hard to predict.
Fuel costs vary by region. Carriers in high fuel cost areas charge more, while those in low-cost areas charge less. This affects which lanes cost more.
Smart procurement teams monitor fuel markets closely. They use flexible contracts that share fuel cost risk between shippers and carriers. This makes pricing more stable.
Managing fuel costs requires real-time data. Teams that track daily prices make better decisions and avoid surprise increases that hurt profits.
2. Capacity Shortages
Not enough trucks equals massive problems. When demand is higher than available trucks, rates go up fast and service gets worse across critical shipping lanes.
The trucking industry has a driver shortage of over 80,000 positions. That means fewer trucks on the road and higher costs for everyone.
Equipment shortages make it harder. Specialized trailers like reefer trailers are hard to find. During peak season these shortages get worse. Procurement teams have to secure contracts months in advance or pay high premiums.
Capacity shortages change how procurement works. Teams can’t just look for the cheapest option anymore. Strong relationships with carriers become more important. Volume commitments help secure space in tight markets.
Diversifying carrier networks helps too. Working with regional carriers, owner operators and specialty providers gives you backup options. This protects against problems with your main carriers.
3. Regulation Changes
New regulations create continuous operational challenges for procurement teams. Hours of service laws limit driving time. Environmental rules add cost. Safety mandates change how carriers operate.
Electronic logging devices (ELDs) now track driver hours automatically. These are safer but reduce daily driving time. With less driving time, truck capacity drops while rates and delays increase.
Environmental rules add cost. Clean truck standards and carbon reporting add expense and paperwork. For example, California’s Advanced Clean Trucks Rule creates regional price differences.
Procurement teams need to stay on top of rule changes. Those who know early adjust better and avoid compliance headaches that waste time and money.
4. Weather and Natural Disasters
Bad weather creates sudden supply chain problems. Hurricanes, floods, and snowstorms close shipping lanes and increase costs across the network.
Hurricanes hit the Gulf Coast and Atlantic regions. They close ports and highways. Carriers reroute trucks on longer, more expensive routes which increases rates everywhere.
Winter weather is predictable but still tough. Snow and ice slow down trucks and increase accident risks. Carriers may stop service during dangerous conditions. Procurement teams need to plan for delays and higher costs.
Recovery after disasters is often worse than the event itself. Damaged roads, fewer drivers, and the need to move equipment causes weeks of disruption. This keeps procurement prices high even after the weather clears. However, multi-regional carrier networks can mitigate weather-related risks.
5. Seasonality
Seasonal demand causes supply chain problems. During peak times rates go up and trucks get harder to find. Food and beverage companies face the biggest seasonal challenges.
Retail seasonality causes issues during back-to-school and holiday seasons. E-commerce surges clog the network. Shippers compete for trucks by paying higher rates or signing premium contracts.
Agriculture also impacts freight. Harvest time creates high demand in farming regions. Trucks go there for higher rates and leave other markets with fewer trucks and higher costs.
Weather-related seasonality adds more pressure. For example, winter produce from warm regions has high demand and weather issues at the same time and costs go up further.
The best way to manage seasonality is to book early. Food and beverage procurement teams often reserve trucks months in advance of peak periods.
Frequently Asked Questions About Supply Chain Issues
Procurement leaders often ask how recurring supply chain issues, like capacity shortages or weather, should shape strategy. These frequently asked questions address the most common concerns.
How Do Capacity Shortages Affect Shippers’ Procurement Strategies?
Capacity shortages make shippers focus on relationships over price. Relationships and volume commitments get you space. Working with multiple carriers gives you a backup when your main carriers have issues.
Can Technology Help Mitigate Supply Chain Risks in Freight Procurement?
Yes, technology reduces risks with real-time tracking and automatic carrier selection. Digital freight platforms can flag risks early, use predictive analytics to detect capacity or weather issues, and connect you to available carriers faster. There are also solutions, like our marketplace, that allow shippers to find instant, bookable capacity at any time.
Navigate Challenges with Smart Procurement
ShipperGuide helps you mitigate supply chain issues by centralizing procurement, automating carrier selection, and giving you real-time visibility into disruptions. Ready to optimize your freight procurement strategy? Book a demo to build a more resilient supply chain.
