Nexterus: How to keep supply chains moving when carriers go out of business, ports close, the potential UPS strike, and other Issues

Nexterus, a world-class supply chain management, and third-party logistics (3PL) services provider, discusses what shippers can do when their supply chains are affected by the recent events of the Canadian Port Strike and the potential UPS strike and Yellow going out of business. Many businesses aren’t prepared for the potential supply chain disruptions that can affect their bottom line if they have trouble getting raw materials or finished products through the ports or finding a carrier to move their products. Nexterus performs supply chain network designs that minimize risk and has an extensive network of quality carriers to keep products moving.

“Each of these disruptions is causing huge issues and challenges for shippers, who need to get their supply chains prepared for disruption, so their products and raw materials keep moving,” says Ryan Polakoff, President of Nexterus. “Companies need to have strategic plans to mitigate disruptions in their supply chains that may affect inbound and outbound shipments across all transportation modes.”

Due to the port closure and carrier strike, numerous media outlets are reporting:

• Robin Guy, vice president and deputy leader of government relations at the Canadian Chamber of Commerce, said the affected Canadian ports handle cargo worth over 800 million Canadian dollars ($600 million) daily.
• TD Cowen analysts reported in a research note last week that some shippers have begun diverting freight from Yellow Corp. over concerns about the company’s future. Still, uncertainty in the company’s future is unnerving shippers, which “could become a very slippery slope” for the carrier, according to the analysts.
• CNBC says that an estimated $19 billion in trade is stranded off the ports of Vancouver and Prince Rupert because of the strike and that congestion will continue to grow in the areas around the ports.
• Drayage carriers serving B.C. ports are beginning to run out of work as a strike by longshore workers continues.
• With the labor contract between UPS and 325,000 workers expiring at the end of July, business owners nationwide are bracing for new supply chain disruptions. UPS says it transports more than three percent of the global gross domestic product and about six percent of US GDP daily.

Nexterus uses the network optimization tool Cosmic Frog from Optilogic to mitigate supply chain disruptions by designing optimal networks that minimize risk. Nexterus takes a holistic, strategic look at client supply chains to identify challenges and develop mitigating strategies to sustain companies affected by current events.

Nexterus has helped these clients find the capacity they need to ship their products, redesigned and optimized their supply chain networks, located warehouse space, and more:

• Fibox Enclosures had problems getting materials from overseas, had challenges with suppliers, and needed to track raw materials and orders while shipping via ocean, air, LTL, TL, and parcel. Working with Nexterus, Fibox has been able to increase profitability, gain greater efficiencies, use less manual labor, source better freight rates, and gain insights with reporting and visibility.
• For Truco, maker of “On the Border” chips and dips, Nexterus did a supply chain network study to determine how many warehouses they needed, if the current warehouses were in the correct location, which site could produce specific inventory at the lowest cost, and what would the effect of a 15% increase in sales do to the network? Nexterus guided the company toward what co-packers were the best solution for the distribution of specific items and what warehouse made the most sense to take over an increase in production due to sales.

“If you are questioning your freight carrier mix or you need to determine which alternative port to ship to, or, you want to model out the ‘what-if’ scenarios, Nexterus has the expertise and experience to guide customers to the right solutions that will increase the value & profitability of their supply chain network,” adds Polakoff.