What are Your Fourth Quarter Transportation Goals?

Posted October 10, 2024

It’s hard to believe the fourth quarter is already upon us, but here we are. This year has already brought its fair share of uncertainty and unpredictability to the transportation markets, then the East Coast dockworkers’ strike rang in the fourth quarter. The strike was expected to disrupt supply chains until negotiations were settled and a new contract signed.

Geopolitical turmoil, rail strikes, rising transportation costs, escalating fuel costs and the upcoming presidential election have all had an impact on transportation markets throughout the year. Peak shipping season has arrived and companies are scrambling to make sure their long-haul and final-mile shipments get to their final destinations as efficiently and affordably as possible.

“Though summer didn’t bring a massive shift in the supply/demand balance, there’s still a few (potentially) capacity-crunching events to come,” Coyote Logistics points out. “In September and October, retailers will start to build up inventories ahead of holiday shipping. We’ll see if continued capacity attrition results in a tighter peak season (at least, tighter than 2023).”

6 Steps to Take Now

Fourth quarter just kicked off, making this a great time to lay out any year-end transportation goals and consider what other strategies should be put in place to ensure a smooth transition into the New Year. Here are six good starting points for your own Q4 goal-setting:

Strive for a strong finish. Set some strategic goals related to your freight and transportation operations. Establish clear objectives and then work backwards to develop effective strategies for ending the year strong and positioning your organization for a successful transition to 2025. For example, you can focus on optimizing your supply chain, reducing costs, digitalizing your freight operations with a modern, cloud-based transportation management system (TMS), or taking other steps that lead you to your ultimate goals.

Check your inventory. Besides transportation and labor, inventory is one of the most expensive carrying costs for companies that make and/or distribute products. Fourth quarter is a great time to optimize stock levels and ensure that inventory is aligned with demand. This will help you avoid those dreaded stockouts but also keep excess inventory from piling up in your warehouse, distribution center or stockroom.

Don’t wait to forecast your 2025 demand. If you haven’t done it already, now is the time to review your historical data, market trends, and TMS data and come up with some accurate predictions for future demand. Then, use the data and insights to adjust your transportation plans accordingly. If any red flags pop up—one warehouse overstocked on a certain SKU that another DC is short on, for example—make the moves now to reposition that stock and keep your supply chain running smoothly. Your TMS will be able to tell you what went well and what didn’t during the last peak season, and help make better decisions for year-end 2024 (and right into 2025).

Negotiate better freight rates. Waning consumer confidence, uncertainty due to the upcoming election and ample transportation capacity may all be potential bargaining chips for shippers during this home stretch of the year. Leverage these market realities to negotiate favorable rates with carriers; use your TMS for identifying opportunities to streamline routes and reduce transportation distances; and maximize truckload capacity by combining shipments. Other good cost-savings strategies include consolidating shipments to maximize truckload utilization—a move that will also support your company’s sustainability commitments.

Find new ways to reduce your organization’s carbon footprint. Speaking of sustainability, did you know that transportation is the largest contributor of U.S. greenhouse gas emissions (GHGs)? Factoring in only direct emissions, transportation comprises 28% of all GHGs With customers, business partners, governments and other stakeholders demanding more environmental, social and governance (ESP) transparency right now, companies can explore ways to reduce the environmental impact of their transportation operations. Consider options like rail, intermodal or electric when feasible, for example, and implement more eco-friendly practices like route optimization and more fuel-efficient driving.

Get a modern, cloud-based TMS in your corner. If you’re not already using a cloud transportation management system like Revenova TMS, or if your organization has outgrown its existing platform, the fourth quarter is a great time to explore how a new system can help reduce transportation costs, improve visibility and streamline processes.

Set your fourth quarter transportation and freight goals now and you’ll be able to hit your cost-cutting goals, optimize your supply chain performance and prepare for what’s coming around the next corner. By combining good inventory management practices with a robust TMS platform and good market insights, you’ll be able to navigate the challenges, leverage the opportunities and achieve your strategic objectives.

To learn more about Revenova TMS, Request a Demo. Follow Revenova on LinkedIn, YouTube, and X for the latest updates and news about Revenova TMS.