Establishing New Routes
The current environment may bring significant changes to existing routes. Channels may change as companies try to adjust business operations, such as restaurant suppliers shifting to the grocery channel, or because they are seeking out new suppliers to diversify their supplier base or because some suppliers may have left the market.
The average length of haul may also be changing. A study by the American Transportation Research Institute found that during COVID-19, local trips under 100 miles increased by more than 100 percent. Companies of all sizes are accelerating their shifts to local delivery methods and ecommerce fulfillment.
All of these adjustments could mean that different types of fleet equipment can better meet a company's requirements. Penske offers commercial rentals that range from light-duty trucks to tractors as well as used medium- and heavy-duty equipment to help meet the varied needs of its customers.
Penske Logistics can offer dedicated transportation solutions to suit its customers' needs. Penske Logistics can also provide a high-level review of its customers' shipments and run specific "what-if" scenarios to help its customers optimize their networks and determine the most efficient routes as part of a restart.
Testing New Markets
Penske's array of resources, such as freight brokerage, shared warehouse space and the truck rental, can help customers pursue and test opportunities in new markets before making long-term investments. Because these solutions allow business to gear up quickly without a large financial commitment, they can quickly and easily test opportunities, like expanding into new regions or taking on additional products. Penske brings access to equipment, facilities and resources, which can remove the barriers.
Penske has entire product lines geared around the sudden needs of its customers and a flexible supply chain, which also gives companies greater ability to keep their costs variable.
Examining Existing Capacity
As supply chains come back online, companies will want to examine their transportation networks and the carriers they've used in the past. The lack of cash flow some fleets are experiencing is going to affect the carrier base, and there could be several small carrier bankruptcies or carriers that can't restart because of the disruptions they've experienced. If possible, companies can do a financial analysis of their carriers and set up meetings to have frank discussions. There are ways Penske Logistics can help facilitate this type of deep dive and the appropriate conversations.
Adding Capacity
Whether shippers are responding to a seasonal or temporary surge or reacting to new, long-term business demands, Penske has several resources companies can use to add capacity.
For those operating a private fleet, Penske Truck Leasing's rental trucks and full-service leasing and maintenance solutions allow them to ramp up and down as the market shifts. Penske also has a wide selection of used trucks, tractors and trailers to fit customer needs.
Through Penske Logistics, shippers can also access a large pool of trucking carriers, and leverage them quickly to take advantage of new opportunities or help mitigate supply disruptions.
In addition, outsourcing transportation to third-party logistics providers like Penske enables companies to control costs and while focusing on their core business needs.
For Customers
As we all continue to live and work in these unprecedented times, businesses must change and adapt quickly. Penske has been updating our processes and shifting gears to offer safe, timely service, no matter what you need. We're here and ready to help.