Ben Franklin included his version of an even older proverb in his famous Poor Richard’s Almanac. It starts out, “For the want of a nail, the shoe was lost,” then progresses in a downward chain of events to “For want of a battle, the kingdom was lost.” This, in a nutshell, encapsulates the (relatively short) domino effect caused by a lack of critical parts in manufacturing, leading to a costly line down event. If ever there was a perfect use case for leveraging expedited transportation, avoiding this worst-case scenario surely is it.
A line-down event in manufacturing has serious financial and operational ramifications, including lost productivity, penalties, and a negative impact on customer relationships, some of which may be severed permanently.
When companies consider ways to access expedited transportation to get critical parts delivered ASAP, a trusted third-party logistics (3PL) partner becomes their key ally.
The Cost of Line Down Events in Manufacturing
Line down events lead to a series of both direct and indirect costs to a manufacturer. First, there are lost production hours and/or entire shifts, including the labor cost of idle workers and the hit to the production schedule.
Then comes financial losses from missed deadlines and deliveries, as well as penalties from customers for breach of contract. Inventory balance is disrupted, and when production starts up again, increased labor costs from double shifts and overtime to make up the shortfall.
According to a 2024 report from Aberdeen Research, 82% of companies surveyed said they experienced unplanned downtime during the past three years, with costs hitting as high as $260,000 an hour. Aerospace, automotive, and electronics industries are among the hardest hit in terms of economic impact, especially considering many operate on a just-in-time (JIT) sourcing model.
For all these reasons, it makes sense to take a proactive approach and implement a strong expedited transportation strategy. This includes finding a reliable 3PL solutions provider to help you execute it.
The Role of Expedited Transportation in Avoiding Line-Down Events
Expedited transportation is a delivery service focused on rapid delivery, as opposed to more economical ocean freight operations. For manufacturing, this includes everything from expedited freight to a small order of parts flown in or driven by courier. Urgent shipments of parts or components are prioritized in order to minimize or eliminate production downtime. Next-day or same-day air or priority ground transport are two key modes for expedited transportation.
While it comes at a higher cost than standard shipping, expedited transportation is nonetheless crucial to maintaining a seamless, efficient manufacturing process. And considering the high cost of a line down event of any kind, it’s a relative bargain.
Expedited transportation bridges the gap when unforeseen disruptions occur, such as supplier delays, inventory shortages, or transportation breakdowns. Executing it takes a high degree of agility, logistics acumen, and a strong, reliable carrier network.
Leveraging 3PL Solutions for Expedited Transportation
This is where an experienced 3PL can come into play as a real solution provider. They offer specialized expedited transportation services that can be tailored to address the urgent needs of manufacturers.
The benefits of partnering with a 3PL in this scenario include access to their established network of carriers offering expedited transportation services — including priority access to capacity — their deep industry expertise, and the ability to quickly put together an action plan.
How 3PLs Mitigate the Risk of Line Down Events
An important component of making expedited transportation happen is the ability to provide real-time tracking and monitoring of shipments to ensure timely delivery of critical parts. Communication transparency between manufacturer and 3PL is key, so that adjustments can be made on the fly if delays or issues arise. This includes regular updates on shipment status, its location, and when it’s arriving. In cases where there are unforeseen delays, this should be communicated immediately.
Speaking of that, it’s important to work out contingency plans in advance with your 3PL partner. This can help you quickly pivot to re-routing or re-booking if an earlier flight opens up. A 3PL’s flexibility and access to different carriers, modes and routes can significantly reduce the risk of an expedited shipment failure turning into a line-down event.
Another important factor is a 3PL’s ability to use predictive analytics based on real-time data from multiple sources to assess risks and surface insights in order to refine and optimize an expedited strategy.
Benefits of 3PL-Managed Expedited Transportation
Leveraging a 3PL can help companies control their costs even with expedited transportation by balancing urgency with pricing and service options. Volume discounts, strong carrier partnerships, and efficient logistics management are all ways they work to keep costs down.
With a reduced burden on the in-house logistics team, manufacturers are freed up to focus on core operations rather than crisis management. The timely arrival of parts and materials keeps production schedules intact. And the company avoids the poor outcomes of penalties, lost business, and damaged customer relationships from a line down event.
Start Planning Now to Guard Against the Risk of a Line Down
Event
A line down event is something no manufacturing company ever wants to have to deal with. The expense, in terms of immediate hard-dollar costs, long-term reputation damage and the potential for lost business, can be significant.
In addition to establishing collaborative supplier relationships, having a solid expedited transportation strategy in place is an excellent way to mitigate the line-down risk. With so much at stake, bringing in a team with the expertise and carrier relationships in expedited shipping is a prudent investment.
COGISTICS Transportation, a 3PL with more than 30 years’ experience in land, sea and air freight, has handled thousands of expedited shipments for manufacturers across a range of industries. Our attention to detail, advanced technology, and 24/7 on-demand expertise helps ensure accurate, timely deliveries. We have the skills, connections and know-how to execute against your goals, provide visibility, and manage every detail of your expedited shipments. Get in touch with us today to learn more.
