supply chain management
No matter what size your business, reducing unnecessary supply chain costs can result in a significant savings – assuming you can accurately identify and efficiently address the weak links.
Anyone who works in Cleveland supply chain management service knows that all for-profit companies are going to incur a “cost to serve.” But is your company’s “cost to serve” reasonable? Can you lower it without risking a major blow to quality or customer satisfaction?
Supply Chain Loopholes Vary by Industry, Service, Location
The answer will depend a lot on the type of product or service you provide. For example, let’s say your Cleveland supply chain involves the packaging and delivery of building products to construction sites. Not only are you managing a complex schedule thanks to the heavy equipment and various contractors involved – your deliveries MUST be precise and on time. Certain materials like mixed cement can be totally wasted if there aren’t workers on site. If elements like weather are consistently a problem in one region, you may need to consider whether you can re-route around that area altogether. If you are in the grocery or restaurant industry, it will be critical that your deliverables be properly packaged, sometimes limited to one product-per-pallet and that delivery dates and times are accurate to the minute – otherwise the shipment could be unusable.
Understanding not just your industry but also your customer base is priority No. 1. You need to be able to serve their needs, but also make sure the cost of doing so is still sensible. One analysis in the International Journal of Production Economics found in supply chain cost reviews by 30 companies in 10 different industries, most were falling short when it came to the estimated standard supply chain cost compared to actual cost.
One of the best ways to cut your Cleveland supply chain costs is to work with a dedicated third-party logistics partner. On Time Delivery & Warehouse 3PL providers can help you better pinpoint what exactly in your chain of supply is causing you the biggest headaches and cost bleed-out. Despite wide variances between industries and companies, there are a few supply chain our third-party logistics professionals have seen consistently cause problems. If any of these issues sound familiar (or you’re having trouble identifying exactly which supply chain loophole is costing you most or what to do about it), a third-party supply chain management team can be an invaluable resource.
Some think of logistics and supply chain management as simply moving goods from one place to the next. In reality, it’s a complex and dynamic trillion-dollar industry, with outsourcing proven to be mission-critical for companies edging out competition.
Reliable supply chain management partners know it’s always been a challenging field, though it’s true lately many of us are facing down some tough realities. Those include higher rates, capacity shortages and now a pending trade war and import/ export uncertainties. This tightening of the market (especially in ground transportation) means those of us on the front lines need to be innovative now more than ever – while also holding true to the best practices and relationships that allowed us to ride out past tumult.
If you depend on Cleveland supply chain management, you may be interested in these surprising statistics offering insight into the industry – and where it’s headed.
In our increasingly global economy, intermodal shipping and effective supply chain management is essential. Staying ahead of competitive pressures and keeping pace with growing customer demand has meant businesses of all sizes are discovering greater opportunities by going global.
When you want to optimize profits, sourcing from regions with the lowest costs for procurement, assembly and manufacturing makes sense. So too does commercializing your products in areas with high demand.
However, it’s not without risk. Global supply chains with intermodal shipping (some combination of air, sea, truck and rail) are inherently more complex. Anytime there is the flow of goods, services, information and payments across international boundaries, business leaders must be sure there is skilled coordination of these efforts. This is where a Cleveland intermodal shipping and 3PL service like On Time Delivery & Warehouse proves especially beneficial.
Managing the global supply chain in-house is too often more trouble than it’s worth, even under ideal conditions. Throw in a natural disaster, political unrest or fluctuating oil prices, and companies quickly become overwhelmed scrambling for alternatives. Contracting with an experienced 3PL that has a comprehensive risk management strategy already mapped helps largely alleviate your headaches.