How to Handle Must-Arrive-By-Dates with Precision

A tremendous amount has changed in logistics over the past 15 years—communications are faster and more efficient than ever before, technology has transformed the way warehouses are run, and the adoption of ecommerce by consumers has caused businesses to follow suit. Meanwhile, advanced analytics are enabling increasingly accurate predictions of consumer behaviors.  

These changes have all contributed to a macro-level trend: the steady increase in the number and type of retailers who require freight to be delivered within highly specific time windows. These requirements, commonly referred to as Must-Arrive-By-Dates (MABDs), have helped retailers be more efficient with staffing and inventory management, but they can also have serious noncompliance fees for shippers who fail to meet their terms. 

“We first saw it with customers who were dealing with the big box stores,” says Kelly Caudell, Manager of Special Projects at Old Dominion. “Since then, more of our customers are asking for MABD services. Today, a very large portion of our Expedited customers are using some level of guaranteed delivery.” 

MABDs started appearing around 15 years ago, as Just-In-Time inventory models became more popular, and big-box retailers looked for ways to improve efficiency at their loading docks. By knowing exactly when a shipment would arrive, they could make sure they had staff on hand to unload, while preventing bottlenecks.  

“Everyone wants to know what’s coming in and when so they can act on it immediately,” says Jerry Aaron, Director of Specialty Services at Old Dominion. “They want to be able to manage labor and adjust accordingly if they need additional hands to receive it, put it in inventory, or stock it.” 

MABDs are Spreading to Other Sectors

When MABDs were shown to be successful, they quickly spread to other industries. Pharmacies, hospitals, and grocery stores have all seen significant adoption of the practice. In recent years, restaurants, hotels, and even schools have begun to introduce these requirements. 

“We think it may well expand into manufacturing over time,” Aaron says. “That side is pushing efficiency too. There’s more pressure than ever to get things made on time, which means they need everyone on the same page, and that includes their shipments.”

With retailers across the board increasingly digitizing their operations, and brick-and-mortar sellers contending with online-only retailers, this trend shows no signs of slowing down.

“When you’re dealing with seasonal or promotional products or events, there’s not a lot of room for error,” says Caudell. “When you have an endcap or register agreement with a big retailer, every day your product isn’t there represents significant lost potential sales.”

Increased efficiency is not a bad thing, of course. But that doesn’t mean MABDs aren’t a challenge for shippers. Companies that request MABDs typically enforce them through fines for noncompliance. Missing a delivery window can tack hefty fees onto shippers after the fact, an unwelcome surprise that eats into profits and causes accounting challenges. 

For Strong MABD Support Use an Experienced Carrier

With so many variables and intangibles, from weather to road closures to traffic, it’s all too easy for freight to get hung up between the shipper and the loading bay. In these cases, working with an experienced carrier can make all the difference. 

Carriers who have relationships with specific retailers often have priority status. The stronger and more consistent their relationship is, the more second nature the handoffs can become. 

In addition, while getting there on time is important, being able to prove you were there on time is essential. “Our technology allows us to show precisely when our drivers arrived at any given destination,” says Caudell. “If there’s a dispute or the receiver tries to penalize them, the shipper can go through our chargeback research portal to prove they fulfilled their end of the deal.”

The same digital technology that has spurred so many freight receivers to start adopting MABDs can be used to shippers’ advantage. Electronic bills of lading streamline the shipping process, and back-end API integrations make it easy to set the parameters for a shipment. 

Digital integration isn’t required for MABD shipments. But technology does tend to make things easier for both sides of the shipping equation. Digital bills of lading significantly streamline planning and improve visibility, and digital processes are inherently faster than manual ones.