If you have one issue that is common to all the supply chain services your company uses, it is getting the best value from those services. And a big part of solving that problem is knowing that you’re measuring “apples to apples” when you’re shopping around.
There’s no better example of what we mean than transportation management. If you are a shipper, you have many different options to move freight, including by road, rail, sea and air, or any combination of two or more of them. But that’s just the beginning of the choices you can make.
Each transportation method, and route, has its own issues for your scheduling, freight handling, and overall costs. And with inter-modal transportation options, which can use a combination of transportation methods and techniques, like cross-docking, suddenly you have a virtually limitless number of options.
So how can you tell you’re moving your goods as cost-effectively as possible?
A Supply Chain Optimization Analysis can do more than shop for the lowest cost to move your goods. It focuses on your entire supply chain and looks at the total cost including accessorial and penalties for late deliveries. Working with a company that performs Supply Chain Optimization Analysis will help your supply chain.
The Benefits of Supply Chain Optimization
Often a service offered by third-party logistics companies, Supply Chain Optimization can offer a number of advantages.
1. Cost Reductions
This is the “best price” solution. Supply Chain Experts have extensive knowledge of the best ways to move your cargo, store it, prepare orders, handle deliveries (including last-mile) and even execute reverse logistics. And do it all according to your specifications.
2. Instant Flexibility & Scalability
You could keep things in-house and maintain your own Supply Chain services. But, if you experience selling cycles, like around holidays or slow seasons, you’ll be either scrambling to add capacity, or paying for capacity you’re not using. A Supply Chain Experts will help you anticipate cycles and fluctuations, and ensure your supply chain is optimized to manage them.
3. Fewer Headaches
Even if you’ve managed to build solid relationships across your supply chain, extraordinary circumstances can still cause disruptions. Serious disruptions can affect your business.
From extreme weather to societal upheavals and even viruses, they have all contributed to an ever-increasing number and types of risks in your supply chain.
Unless your in-house network can handle the unexpected, and do it immediately, you’ll need a Supply Chain Expert. One that is responsible for keeping your business moving come what may.
For other options to help with transporting your freight, check out our post “4 Benefits of Transportation Management Systems”.