Nearshoring Calls For Shorter Trucking Routes

As transportation costs continue to fluctuate, many companies are relocating manufacturing centers closer to home to save money. According to a survey by the global consulting firm AlixPartners, 32% of the 248 senior-level executives in North America and Western Europe say their companies have either nearshored, or are about to do so. In the United States and Canada, the figure rises to 40%. And for the first time the United States, not Mexico, has become the destination of choice.

55% of respondents specifically said they expected relocating to lower their transportation costs. Some expect to save 20% or more on overall operations.

Nearshoring, also known as “reshoring,” is a great opportunity for domestic transportation operators to optimize their operation with shorter routes.

GPS tracking providers offer powerful tools to help fleet managers streamline their operation as production moves closer to customers and trucking activity is increased. Teletrac in particular offers features that help make dispatch more efficient and keep drivers on track as the shift is made to shorter routes:

The Landmark feature allows managers to customize geo-fences for accurate locations, ensuring deliveries are on time. Managers can view their vehicles on a map and identify which unit is designated to a specific location—empowering the user to track and monitor where their fleet goes in real time.

If a customer issues a last minute change to the delivery, or the driver’s destination is suddenly altered, drivers can be notified via their in-cab display of any new navigation and plans with the Send Route feature. No matter where the driver is, they can be automatically guided and informed. The feature proves to be particularly useful when a fleet manager learns of road construction or other obstacles in the driver’s way, and wants to give a driver a new, more efficient route around the problem. A manager can then send a targeted address or landmark via Send Route to a driver. The notification will appear in the driver’s in-cab display and once the driver accepts it, the application plays updated route details.

As manufacturing moves closer to customers, carriers can maximize their routing methods and improve connections between dispatch and drivers by incorporating a GPS tracking solution. The new market demands may fluctuate and customer behavior is always changing. But with the right technology infused in a carrier’s business, instant updated route details and fast response times will improve customer service and operations across the entire business.