{"id":2270,"date":"2017-10-05T12:42:42","date_gmt":"2017-10-05T12:42:42","guid":{"rendered":"https:\/\/cantruck.ca\/elds-will-put-pressure-on-jit-supply-chain\/"},"modified":"2025-01-10T16:48:56","modified_gmt":"2025-01-10T16:48:56","slug":"elds-will-put-pressure-on-jit-supply-chain","status":"publish","type":"post","link":"https:\/\/cantruck.ca\/fr\/elds-will-put-pressure-on-jit-supply-chain\/","title":{"rendered":"ELDs Will Put Pressure on JIT Supply Chain"},"content":{"rendered":"<p>Just-in-time delivery \u2013 the North American supply chain inventory strategy aimed at receiving goods only as they are needed in the production process \u2013 is expected to come under pressure once the ELD mandate takes effect in the U.S. and, later Canada.<\/p>\n<p>Shippers can expect JIT delivery costs to increase significantly once the ELD mandate hits, simply because they will no longer be able to pressure transportation providers to bend hours of service compliance to meet the tight freight scheduling demands of JIT-based supply chains, reports Fleet Owner.<\/p>\n<p>In a presentation last month, John Larkin \u2013 managing director and head of <a href=\"http:\/\/www.stifel.com\/institutional\/investment-banking\/industry-coverage\/transportation-and-logistics\">transportation capital markets research<\/a> for <a href=\"http:\/\/www.stifel.com\">Stifel Capital Markets<\/a>, says analysts are already seeing the effects of a capacity crunch ahead of the Dec. U.S. mandate, especially in light of the recent hurricanes Florida and Texas.<\/p>\n<p>\u201cHere we are; there aren\u2019t enough trucks, turned-down loads are way up, spot rates are astronomical in some parts of the country, [and] trucks are flocking to the high rates \u2013 which [is] leaving other parts of the country with too few trucks,\u201d he pointed out. \u201cI think this is the wakeup call that shippers needed, especially those that were so harsh on everyone back in 2015 and 2016.\u201d<\/p>\n<p>That\u2019s going to have some impact Larkin believes, but more regarding the elimination of what he calls \u201cmarginal carriers\u201d than it will be on reduced productivity of those that don\u2019t have ELDs now.<\/p>\n<p>He says bluntly: \u00a0\u201cThe way some carriers have competed is to cheat \u2026 They\u2019re running 14 hours when they\u2019re supposed to be running 11 hours.\u201d<\/p>\n<p>Thus the time required to legally carry freight shipments by truck is going to expand \u2013 and it will and cost more to conduct such shipments. The end result, however, is drivers getting paid more while also operating more safely at slower speeds.<\/p>\n<p>All in all, says Larkin, an evolutionary change to our supply chain practices is in the making, placing a higher value on compliant transportation services.<\/p>\n<p>Full Fleet Owner story <a href=\"http:\/\/fleetowner.com\/blog\/elds-will-put-supply-chains-vise-and-maybe-s-good-thing\">click here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Just-in-time delivery \u2013 the North American supply chain inventory strategy aimed at receiving goods only as they are needed in the production process \u2013 is expected to come under pressure&#8230;<\/p>\n","protected":false},"author":2,"featured_media":753,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[16,62],"tags":[30,73,433,33,223,75,1034,319,24],"class_list":["post-2270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-conditions","category-operations-safety","tag-capacity","tag-elds","tag-electronic-logging-devices","tag-freight-market","tag-hos","tag-hours-of-service","tag-just-in-time","tag-manufacturing","tag-supply-chain"],"acf":[],"_links":{"self":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/2270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/comments?post=2270"}],"version-history":[{"count":0,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/posts\/2270\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media\/753"}],"wp:attachment":[{"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/media?parent=2270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/categories?post=2270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cantruck.ca\/fr\/wp-json\/wp\/v2\/tags?post=2270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}