Generating annual revenue in excess of $500 million, GlobalTranz is a freight management company that is headquartered in Arizona. Serving a customer base of over 25,000 shippers, GlobalTranz confronts freight industry challenges rather than shirking from them.
One such challenge is the weather, which is estimated to cost the freight industry from $2 billion to $3.5 billion annually, according to an Allianz Global Corporate & Specialty survey. Here are some safeguards that can prevent extensive loss.
1. Nearshoring. This involves positioning distribution centers in strategic locations to ensure the supply chain remains active during weather events that cause issues for individual centers.
2. Diversification. Companies relying on a single form of transportation experience more issues than those that distribute their options across sea, air, and ground. In some cases, smaller companies may consider partnering with others to attain this diversification.
3. Weather Analysis. Prediction is often one of the strongest tools against weather-related issues. Freight companies should incorporate data analysis techniques, both for areas where they traditionally ship and any proposed regions for expansion.
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