Capacity constraints are a concern for shippers and carriers. Carriers that run asset-light risk missing out on profitable loads due to a trailer being tied up. Conversely, shippers risk getting late shipments which, in turn, affects their sales volume and profit margins.
The state of logistics and the supply chain is still far from pre-pandemic “normal,” which leaves shippers and carriers looking for ways to improve their overall efficiency.
Labour shortages, in particular, have been a continuous issue as the logistics industry is experiencing a shortage of skilled workers, including drivers, warehouse workers, and logistics managers.
Additionally, equipment shortages in the industry are also causing problems. Equipment shortages such as shipping containers, pallets, and trucks are caused by increased demand and supply chain disruptions, particularly in the shipping industry.
These factors make it more difficult for logistics managers to optimize capacity and ensure the timely delivery of goods and services.
Taking a Closer Look at Capacity Constraints
Capacity constraints in logistics can be caused by a variety of factors, including (but not limited to) the following:
- Limited Infrastructure: The capacity of logistics infrastructure, such as ports, warehouses, and transportation networks, can be limited, resulting in congestion and delays.
- Limited Resources: The availability of resources such as labour, equipment, and materials can be limited, which can impact the capacity of logistics operations.
- Demand Fluctuations: When demand for logistics services fluctuates, it can lead to capacity constraints. If demand exceeds the available capacity, there may be delays or a backlog of orders.
- Regulatory Constraints: Regulations such as weight limits on trucks, restricted operating hours, or safety regulations can limit the capacity of logistics operations.
- Geographical Constraints: The geography of an area can pose capacity constraints, such as limited road access to a remote location or natural barriers like mountains or rivers.
- Technological Limitations: Using outdated technology or inefficient logistics systems can lead to capacity constraints.
- Human Factors: The capacity of logistics operations can also be impacted by human factors such as labour shortages, inadequate training, or employee turnover.
Overall, capacity constraints in logistics can be caused by a wide range of factors, and addressing them often requires a multi-faceted approach that considers various operational, regulatory, and technological factors.
Five Ways a Yard Management System can Ease Capacity Constraints
A yard management system (YMS) can help ease capacity constraints in logistics by providing greater visibility and control over yard operations. Here are some specific ways that a YMS can help:
- Real-time Visibility: A YMS can provide real-time visibility into the location and status of trailers, containers, and other assets in the yard. This allows logistics managers to optimize yard capacity by identifying available space and prioritizing tasks such as loading and unloading.
- Automated Check-in and Check-out: With a YMS, carriers can check in and out of the yard electronically, reducing wait times and minimizing the risk of errors. This helps ensure that the yard is operating at maximum capacity and can reduce congestion.
- Resource Optimization: A YMS can help optimize the use of resources such as labor, equipment, and space in the yard. By providing visibility into available resources, logistics managers can make better decisions about how to allocate them.
- Streamlined Communication: A YMS can facilitate communication between carriers, drivers, and logistics managers, reducing the risk of miscommunications and delays.
- Increased Efficiency: A YMS can help increase the overall efficiency of yard operations by reducing the time it takes to move trailers, containers, and other assets through the yard. This can help increase the throughput of the yard and reduce the risk of capacity constraints.
A YMS can help logistics managers optimize yard capacity and improve operational efficiency, reducing the risk of capacity constraints and other logistical challenges.
Take Control of Your Yard with a YMS
The right yard management system can be a powerful tool in boosting efficiency and optimizing operations. A YMS with other software solutions can also boost capacity through the entire supply chain.
Real-time visibility, for example, can be realized through a proper YMS. With real-time visibility into yard operations, logistics managers can track the location and status of trailers, containers, and other assets in the yard. This helps optimize yard capacity by identifying available space and ensuring that assets are used to their fullest potential.
A YMS like C3 Yard can introduce new processes like Automated Check-in and Check-out. Carriers can check in and out of the yard electronically, reducing wait times and minimizing the risk of errors. This helps ensure that the yard is operating at maximum capacity and can reduce congestion.
Overall, a YMS can improve capacity and asset utilization by providing real-time visibility, automating processes, optimizing resources, facilitating communication, and using predictive analytics to anticipate capacity constraints. By providing greater control and efficiency over yard operations, logistics managers can take control of the yard and address capacity constraints once and for all.
Visit C3 Solutions to request a demo today!