Avoid Price Gouging During Times of Crisis
There’s no doubt that adaptability is a key ingredient when successfully navigating through crisis. COVID-19 is forcing companies to develop contingency plans to mitigate risk. The trucking industry is certainly not immune to the COVID-19 crisis. If there’s one thing we know, there will be an impact, we just don’t know how significant the long term effects will be.
Manufacturers all over the world are analyzing market predictions, trends and data to develop plans to overcome COVID-19. Most are juggling supply-chain disruptions, while others are managing unprecedented spikes in demand. Shippers are working around the clock to get their products not only to the distribution centers, but to the end customer’s home. Capacity and cost weigh heavily on their minds. If 2018 taught us anything, it’s that preferred/primary networks can- and will- breakdown, and that rates will skyrocket. Shippers need to make sure they have enough capacity to move their goods-- especially as the market tightens-- while effectively managing associated cost.
Analysts have said capacity is tightening, especially as more truck drivers are granted immunity to stay at home and/or take paid vacation time to aid social distancing. As this happens, unsavory actors will swoop in with price gouging tactics to take advantage of the situation. Here are a few tips to help overcome the challenges ahead:
#1. Be Proactive. Identify your contingency plans now so you are prepared to overcome any challenges thrown your way. Have conversations with your suppliers to understand their limitations and make plans to adjust accordingly.
#2. Arm Yourself With Data. Look for new data sources to help make better informed decisions. You will need more than generic market rate data to know if you are paying too much or too little, to move your goods. 100% rate transparency is key to understanding the true market cost to move goods. Sleek Fleet supplements historical and generic rate data by providing visibility to driver bids, actual driver cost and 3rd party mark-up on your specific lanes in real-time.
#3: Extend Your Capacity. Find ways to supplement your preferred/ primary network in the event they become overwhelmed. To capture rate data, Sleek Fleet uses an exclusive carrier network made up of thousands of small carriers across the nation. Our network of carriers comes with world class service levels because moving freight isn’t just a job, it’s their livelihood.
So what measures will you take to overcome the uncertainty of COVID-19? Take action now. Start leveraging transparent rate data, while adding capacity, by partnering with Sleek Fleet. We are here to help!