Managed Transportation vs. Managed TMS: Which Do You Need?
There’s a lot of talk about how the mid-terms, inflation, fuel prices, and the ongoing Iran War will affect both supply chains and consumer demand in the coming weeks and months. But one thing is certain: Peak season is just around the corner for many shippers. That means you must be ready to bob, weave, and pivot right now, even as economic and geopolitical conditions continue to evolve.
But there’s a central challenge that, in our opinion, isn’t being talked about enough. Strong, resilient supply chains are built on people. And there’s an extreme shortage of supply chain talent right now. Human talent is needed not only to fulfill and move orders, but also to make and execute informed decisions at the speed of change. That’s putting many supply chains at a serious disadvantage as we head into peak season.
Here are just a handful of sobering statistics about the U.S. logistics workforce:
- We’ve seen a 31% year-over-year increase in demand for supply chain talent in 2026.
- There will be a driver shortfall of 174,000 positions by the end of the year.
- Logistics costs are growing by 22% based solely on labor market competition.
- Among U.S. supply chains, 76% report they’re facing significant staffing shortages.
Amid the crippling talent shortfalls in the U.S., Amazon is actively recruiting for over 300,000 part-time, full-time, and seasonal roles — and promising health care coverage and grocery discounts from day one. That makes it hard for other supply chain teams to compete. The online shopping giant reports that it’s hiring 50,000 more peak-season workers than last year, who will focus on order picking, packing, sorting, shipping, and delivery. Those important skillsets are being diverted from other supply chains, including yours.
Let’s face it. Even if your supply chain somehow manages to deliver successfully through Thanksgiving, Black Friday, Christmas, Hannukah, and Kwanzaa, you’ll still be facing the same demand volatility challenges and staffing uncertainty in January, February, and beyond. Market instability, talent shortages, and wage inflation have become year-round problems.
Three Keys to Building a Supply Chain That Flexes, Not Breaks
Uncertainty is the only real certainty, especially when it comes to talent shortages and other resource constraints. That’s why Redwood recommends optimizing your operations so they’re working at peak efficiency not just during seasonal peaks, but every day of the year.
By increasing speed, maximizing accuracy, and minimizing manual effort, you’ll need fewer workers and face fewer resource constraints. Redwood can also help you build resilience and responsiveness into your operations by leveraging on-demand resources instead of making permanent investments. The result is a supply chain that flexes as market conditions and talent needs evolve, instead of breaking.
- Work smarter, not harder, across the supply chain.
- Scale up your operations, flexibly and cost-effectively.
- Sudden surprises? Minimize their impact.
Advanced digital solutions are a proven way to reduce human workforce demands and manual labor, while also making and executing fast, optimal decisions. From traditional WMS and TMS solutions to AI agents, robotics, and automation, advanced technology is no longer optional, but imperative in your daily operations.
Even when they’re navigating very complex conditions — including extreme demand shifts and seasonal peaks — modern digital solutions help supply chains pivot immediately, automatically, and intelligently, with computational speed and data-based precision. AI-enabled solutions can not only make the right decision in mere seconds, but execute the response autonomously, with little to no human intervention. Because technology far exceeds human cognition in both speed and scope, your supply chain can turn talent shortages from a constraint to an advantage with the right digital strategy.
In today’s environment of labor shortages and wage inflation, technology amplifies the efforts of human logistics workforce and ensures scarce resources are maximized. Think about it. Shorter routes, consolidated orders, and optimized loads mean fewer drivers. Robotic picking means greater speed and accuracy, while scarce human talent is allocated to higher-value, more strategic work. The possibilities are literally endless. As a modern 4PL with a deep understanding of both the digital and physical supply chain, Redwood is optimally suited to help maximize efficiency across your operations by leveraging advanced technology and associated best practices.
Hundreds of customers rely on Redwood’s managed services in distribution and transportation to flexibly add capacity during peak periods. Why add permanent physical resources and staffing to master capacity challenges that might be short-term or seasonal in nature?
If transportation capacity is the constraint, Redwood offers dedicated, world-class logistics expertise, flexible and affordable capacity, and physical assets — providing immediate access to 435,000 pieces of available equipment and 34,000 carrier partners. Redwood also operates six expansive, fully staffed, and digitized warehouses to add flexible distribution capacity, without the need for high capital investments.
Redwood’s managed services are delivered via an affordable, flexible cost structure that’s much more attractive than adding to your own fleet or workforce. You can scale your operations up and down easily by partnering with Redwood, without adding costly in-house resources.
While Redwood helps optimize your supply chain for long-term flexibility and efficiency, there are always bound to be surprises. Redwood is also perfectly equipped to minimize the financial and customer service impacts of those surprises.
As a top North American freight broker, Redwood connects you with the best and most affordable option, in seconds, for any expedited shipments. If your shipment is stuck at the border, our international experts can help you navigate the complexities of tariffs and customs. If there’s an equipment breakdown along the route, we have the deep physical resources to get you back on track.
Redwood is in it for the long haul. But we also deliver boots-on-the-ground support when the unexpected occurs. During peak season or any season, Redwood provides the immediate resources you might otherwise struggle to access.
’Tis the Season to Build Resilience
With peak season looming, we’re about to see a range of responses to talent shortages and general uncertainty. Unprepared shippers will pay the price in terms of sky-high hourly wages, frequent expediting, and low on-time, in-full (OTIF) delivery performance.
For those shippers who have already invested in creating smarter, more efficient operations, Black Friday and Christmas Eve are just business as usual. They’ll be prepared to make and execute the right decisions on the fly, automatically, while also scaling their capacity up and down seamlessly.
Which list would you rather be on? Contact Redwood to turn talent scarcity from a deal-breaker to a non-starter. Build a supply chain that performs at its peak year-round, not just in November and December.
