As the Covid pandemic begins to wane, foot traffic on the showroom floor has been picking up steam. Even with Used car prices are at all-time highs, new vehicle inventory going above sticker price, and increasingly higher fuel costs given the current geopolitical climate, consumers are unphased in their hunt to purchase vehicles at the dealership or online. And with that purchase comes the expectation to have that car delivered ASAP.
This is the part of the car buying process is not so easy if you’re the transportation manager trying to navigate the many last-mile delivery challenges in today’s marketplace.
It’s no secret that driver shortages have contributed to bottlenecks in the supply chain. Putting the global chip crisis and ongoing pandemic aside, the driver shortage has been a constant for the past decade. In an article published by the New York Times, “Last year, trucking companies in the United States suffered a record deficit of 80,000 drivers, according to the American Trucking Associations, a trade association. Given that trucks move 72 percent of American freight, a lack of drivers spells substantial disruption.”
Higher Spot Rates
With a lack of drivers comes a higher premium to find drivers. Low supply and high demand equal higher costs. But in addition to lower supply comes the need for speed. Delivering vehicles quickly and efficiently is crucial in today’s market. In a world where same-day delivery is no longer a premium, rather an expectation, dealerships are pushing their limits to deliver. But so too are OEMs. Sean Baltazar VP of Sales for Finished Vehicle Logistics at RPM explains, “Consumers are now much closer to our OEMs than ever before, ordering either a car that has not been built yet or ordering inventory that's just reached the showroom floor and now needs to get transported immediately for the consumer. The OEMs are going directly in some cases to a carrier community and saying, I need you to pick up speed, regardless of cost.”
Lack of Visibility
For transportation managers, constant communication and visibility into every move is crucial. Sending a carrier on the wrong route can be costly. Not hitting the customer’s delivery time frame can also result in some nasty reviews for the dealership. When last-mile deliveries occur, call volume will be expected to rise as well. In an article from Dispatch, “Last-mile visibility also helps with customer support. If a customer calls and asks where their order is, you have the ability to respond quickly and confidently with where the vehicle is and give them a time approximation to when the order will arrive. Without this visibility, you can only guess where the truck is or call the driver and hope they answer to let you know where they are.”
What’s the Solution?
Work with a full-service logistics company that has a robust network and the experience to deliver thousands of vehicles a day. As one of the fastest-growing vehicle logistics providers in North America and Europe, RPM leverages a 40,000+ carrier network offering customers the speed and flexibility needed to perform last-mile delivery. RPM ensures all carrier routes are tracked and managed in real-time so you can choose the most efficient route for your fleet and we provide our customers with a centralized, digitized, and transparent solution to vehicle transportation. We match available trucking capacity and facilitate every transport tender with the best tech-enabled logistics execution to move inventory fast.
Learn more about our services at RPMmoves.com/services/vehicles.