By Rafael Granato, VP of Marketing, YMX Logistics

Transforming Yard Operations: A Strategic Imperative

Key Takeaways:

• Yard inefficiencies are strategic risks: Delays and bottlenecks affect margins, costs, and customer satisfaction.
• Technology without process falls short: Yard Management Systems (YMS) need well-defined processes and trained teams to be effective.
• The Yard Operating System (YOS) as a solution: Companies adopting YOS frameworks can significantly enhance yard performance and sustainability.

The yard often takes a back seat in discussions of supply chain transformation. While advanced technologies find their way into warehouses and transportation, yard operations languish on outdated processes. However, they are the critical junctions for inventory flow, affecting both operational costs and customer relationships.

The Hidden Costs of Neglecting Yard Operations

Many organizations see the yard as an inconsequential part of their operations, yet inefficiencies here lead to inflated costs:

• Idle assets: Trailers can remain inactive for up to 80% of their cycle time, strangling cash flow.
• Penalties for delays: A 2.5-hour hold-up can cost $50 to $100 per load, adding up to millions over time.
• Bottlenecks: Congestion at docks exacerbates existing labor shortages.
• Product integrity risks: In food sectors, delays can lead to spoilage and lost sales.
• Safety issues: Accidents impact not just costs, but also brand reputation and trust.

Why Technology Alone Won’t Solve the Problem

While Yard Management Systems offer greater visibility, they often reinforce existing fragmentation:

• Inconsistent playbooks vary across sites, limiting scalability.
• Disconnected systems obscure the full flow of information.
• Untrained personnel generate alerts without actionable insights.
• Neglect in sustainability measures leads to compliance issues.

Technology can provide value, but only when integrated with disciplined processes.

The Yard Operating System: A Strategic Framework

Companies are now embracing the concept of a Yard Operating System (YOS). This framework elevates yard operations to a strategic level, turning them into influential players within an organization’s supply chain.

Key elements of YOS include:

• Unified playbooks: Develop standardized SOPs and KPIs across facilities.
• Integrated visibility: Ensure smooth coordination between yard, transportation, and warehouse data.
• Outcome-based partnerships: Relationship metrics that prioritize safety and sustainability over mere headcounts.
• Continuous improvement: Use real-time insights to prevent minor issues from escalating.
• Designed sustainability: Implement emissions tracking as a core operational habitat.

Getting Started with Yard Transformation

Changing yard operations requires time and focused strategy. Executives looking to expedite results should prioritize these five steps:

1. Audit existing conditions: Assess dwell time, safety records, and compliance statuses.
2. Establish standards: Create SOPs that can be scaled across locations.
3. Revamp partnerships: Shift from transactional contracts to outcome-driven accountability.
4. Deploy technology wisely: Use it to support existing processes rather than mask deficiencies.
5. Measure critical metrics: Focus on safety, sustainability, service, and ROI instead of just cost.

Partnering for Enhanced Yard Operations

Not every business possesses the internal resources to transform yard operations fully. Collaborating with a yard logistics partner that already integrates a Yard Operating System can significantly fast-track your progress.

Such partners offer more than equipment and labor; they bring process discipline, trained personnel, and cutting-edge technology that ensures consistent performance across various sites, focusing on outcomes rather than activities.

For executives, this partnership means fewer distractions and assurance that yard operations become a vital performance lever rather than a weakness in the supply chain.

Rafael Granato, VP of Marketing at YMX Logistics, leads initiatives in brand strategy and positioning, emphasizing innovation and excellence in yard operations and logistics.