Five Ways to Optimize Supply Chains

Supply chain leaders face significant challenges as opportunities from the past transform into today’s hurdles, driven by fluctuations in customer demand, alterations in sourcing, and tariffs. The demand for supply chains to become faster, more responsive, and resilient has escalated. TSS offers assistance in addressing concerns related to cost, service, and risks, empowering the establishment of a more responsive, adaptable, and intelligent supply chain.

For small businesses, freight expenditure has seen a substantial increase in recent years. Navigating the dynamic freight and logistics market can be more daunting and costly than anticipated. Nevertheless, there are five essential steps that any small business can take to ensure the cultivation of efficient supply chains and logistics practices.

  1. Adoption of Technology: Utilizing technology is crucial for evaluating and enhancing the supply chain. Employing transportation and shipping software for tracking freight spend, shipment timing, and warehouse inventory is an immediate priority. Without robust data analytics, making process improvements becomes challenging. Shipment tracking is vital for informing customers of outbound load arrival and communicating expected inbound shipment dates to the warehouse team.

  2. Management of Supply-Side Spend: Companies often delegate inbound freight handling to suppliers, considering shipping costs as part of the purchase price. While this simplifies the process, opportunities for efficiency improvements at freight docks and in inbound freight exist. Engage with suppliers and logistics providers to discuss the costs associated with routing inbound freight. If substantial cost savings are evident, initiate a trial by moving some inbound freight, gradually expanding this process.

  3. Optimization of Warehouse Inventory Levels: Inventory holding costs and tied-up capital can accumulate significantly. Implement warehouse and inventory management software tools to gather necessary data for informed changes. Analysis often reveals that housing inventory in smaller quantities across several warehouses is more efficient and cost-effective than centralizing it.

  4. Balancing Modes of Transportation: Overreliance on a single mode of transportation is common among companies. While many favor over-the-road trucking, exploring alternative modes such as intermodal shipping can yield a 10-20% cost reduction over long-haul trucking. Diversifying modes ensures a robust supply chain, providing flexibility in case of issues in one mode.

  5. Establishment of Robust Processes: Small businesses sometimes overlook the importance of developing and utilizing processes. Documenting each step of inbound and outbound logistics and regularly reviewing these processes with collected data helps build an effective logistics framework.

Implementing these methods continually improves supply chains and freight movements. TSS plays a crucial role in optimizing solutions from sourcing to manufacturing to customer delivery. Redeure contributes to shaping the future of supply chains, emphasizing a deep understanding of products and services beyond technology and logistics.

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