What steps can you take right now to build resilience in your logistics? Eliminate costly inefficiencies with these tips!
While supply chain concerns seem to be easing slightly, it’s going to be a while before things settle down. The ripple effect continues globally with continued backups at many U.S. ports. One of the world’s largest shipping companies, Maersk, says they do not anticipate major improvements in 2022. Other experts agree: we’ve got a long way to go.
So, what should shippers like you: manufacturers, fulfillment centers, retailers, and 3PLs be doing in the meantime? While waiting for relief to come, now is the time to reassess your workflow and focus on preventing future pain.
Amid a crisis, it can be tempting to cut back and pare down operations. The companies that emerge the strongest will be the ones that invest now in solving inefficiencies that will allow them to grow.
This isn’t just theory. Studies done over the years since as far back as the 1920s show time and time again that companies re-investing in their business during crises significantly increased market share. Similarly, after the recent 2008 economic downturn, a Gartner study showed that companies that made selective investments to firm up core capabilities recovered faster and grew faster than their competitors.
Not only did these companies excel once things returned to normal, but they maintained gains. By comparison, the companies that lost ground, struggled to recapture market share — less than a third could make up losses.
In a 2021 Gartner study surveying 1,300 supply chain professionals, 87% said they planned to invest in solutions to improve supply chain resilience.
Most organizations report that their supply chain management was originally designed to minimize costs but not to manage resiliency, which they found handicapped their ability to manage supply chains effectively during times of disruption. Organizations also found that it cost them more in the long run because of inefficient systems.
The right Transportation Management System (TMS) can make a world of difference in managing inefficiencies. But not all TMS tools are created equal. With FreightPOP, for example, you have total visibility into your entire supply chain in one centralized platform. You can shop, ship, track, audit, and analyze every stage of your supply chain.
And for those shippers not even using a TMS and still using staff to quote shipments, track through carrier websites, and stay on top of customers without logistics technology, you must stop and invest in a TMS. As much as 20% of employee time is wasted weekly due to manual and inefficient systems.
Research firm IDC says inefficient systems cost companies as much as 20% to 30% of their annual revenue. FreightPOP allows you to automate shipping management tasks and bring data into one platform to streamline all aspects of your logistics.
Introducing such efficiency allows you to adjust and adapt more quickly during times of uncertainty. Rather than scrambling to find the best rates or routing, worrying where your containers are and when they will arrive, or pouring through spreadsheets or calling carriers, everything you need is available with one click.
When will things return to normal? Almost all the experts agree it will be a bumpy ride for years to come. You cannot afford to wait for things to shake out to make changes to your systems and processes. Companies that wait are falling behind their competitors and may not regain momentum even when supply chains improve.
To succeed right now, you have to be ruthlessly efficient in everything you do. Efficiency allows you to take advantage of shifting priorities quickly and make faster, better business decisions. As supply chain concerns ease, this will better position you for more rapid growth.
Want to learn more about managing your logistics and operations more efficiently? Get our latest whitepaper: New Solutions to Improve Your Capacity and Access to Carriers for 2022.