What Does a Bottlenecked Supply Chain Mean for the Last Mile?

by | Jul 29, 2022 | Blog, Industry Insights

What Does a Bottlenecked Supply Chain Mean for the Last Mile?

When most people think of the supply chain, they might picture a group of workers in a factory moving materials around assembly lines. But in reality, the supply chain is much more complex than that. It encompasses everything from the production of raw materials to the delivery of products to consumers– and it can be bottlenecked at any point along the way. A bottleneck supply chain is one that is not flowing smoothly because of some type of constraint.

What is Bottlenecking?

The supply chain can be bottlenecked at any point along the way from production to delivery. But what does that actually mean? Bottlenecking occurs when there is a constriction or limitation in the capacity of a particular part of the supply chain. This can be due to a number of factors, such as:

  • Insufficient resources: This could be a lack of raw materials, workers, or machines needed to complete production.
  • Inefficient processes: If a process is taking too long or is inefficient, it can cause bottlenecking further down the line.
  • Transportation issues: If there are delays in transportation, it can cause products to back up at different points in the supply chain.

Why is it Happening?

There are a few reasons why bottlenecking might be occurring more frequently nowadays. They are:

  • The increase in online shopping: With more people shopping online, there is an increased demand for products. This can put a strain on the supply chain, which was not designed to accommodate such high volumes.
  • The rise of new technologies: New technologies are always being developed and implemented, which can lead to disruptions in the supply chain. For example, the introduction of blockchain technology is currently causing bottlenecks in the supply chain as companies try to figure out how to best utilize it.
  • The COVID-19 pandemic: The pandemic has had a significant impact on the supply chain, causing delays and disruptions. For example, factories in China were shut down for a period of time, which caused a shortage of goods globally.

What are the Impacts on the Last Mile?

The last mile is the final stage of the supply chain, where products are delivered to customers. And as you can imagine, bottlenecking in the supply chain can have a major impact on the last mile. Some of the impacts include:

  • Increased costs: If there are delays in the supply chain, it can lead to increased costs for businesses. This is because they might have to pay overtime or use more fuel to get products to customers on time.
  • Customer satisfaction: Bottlenecks can also lead to customer dissatisfaction as they might not receive their orders on time. This can damage relationships with customers and lead to them taking their business elsewhere.
  • Inventory management: If there are delays in the supply chain, it can throw off inventory levels. This can be a major problem for businesses, as they might not have the right products in stock when customers need them.

How to Keep the Supply Moving in the Last Mile

Despite the challenges that bottlenecking can pose to the last mile, there are ways to keep the supply moving. One way is to streamline deliveries with our elite EXTRA’s Delivery network. We have a team of experienced and qualified drivers who can get your products to customers on time, even in challenging situations. We also use cutting-edge technology to track deliveries and ensure that they are made on time.

If you’re looking for a reliable delivery partner to help keep your supply moving, look no further than EXTRA’s Delivery. We have the experience and expertise to get your products to customers on time, even in challenging situations. Contact us today to learn more about our services!

Colton Ward

Colton Ward

Author

Colton Ward is our Strategic Marketing Coordinator and Marketing Video Producer. Get it? "Marketing Video Producer" = "MVP" (He came up with that title himself...). On a typical work day you can find him squashing website bugs (or being squashed by them) and swinging a camera around the office for the company's next video. When not at work, he enjoys boating and skiing his way around Wisconsin's beautiful lakes!

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