With an upswing view of the reignited economy and the growing demand for diverse products, your supply chain network—manufacturing plants, warehouses and distribution centers—face challenges like never before. In light of increasing freight costs, global complexities, more demanding customer service requirements, new e-commerce challenges and risk management considerations, it has never been more important to navigate and execute supply chain strategy/operations.
Today's complex global business environment - with its rapidly advancing technologies, emerging world markets, and vastly extended supply chains, places increasingly critical decision-making demands on logistics professionals. In a world expanding global, the challenges of providing seamless supply chain solutions across geographical and cultural boundaries have continued to mount.
Those who invest in Lean Supply Chain Management can improve a company's competitiveness and overall profitability by identifying warehousing, transportation and trade compliance, while at the same time eliminating waste and non-value added activities. Given that as much as 80% of the operating costs are in logistics—freight, labor and inventory—it is critical to have a better understanding of your supply chain strategy.
It seems the 2019 theme is to continue building a supply chain network, working together to drive collaboration and reduce inefficiencies. It's important that both manufacturers and importers discuss better ways of communicating and sharing information with their partner retailers and distributors to help improve the customer experience.
Many companies have expressed interest in exploring different ways of servicing the customer, looking to become agiler by stepping out of their comfort zone—those even recently investing in their own manufacturing facilities, allowing them to be more flexible in their strategic decisions. Food & beverage manufacturers are examining the possibilities of setting up one or more distribution centers for limited shelf life items, which will allow them to provide better service to their customer base and help reduce overall transportation costs.
As new regulations hit the transportation industry, a common topic of discussion is how to better navigate the new Supply Chain landscape to continue to service customers more effectively; while proactive shippers continue to search for viable 3PL warehouse distribution centers to allocate inventory in markets closer to their customers, in an overall effort to mitigate delays.
While researching, keep in mind that there are three types of distribution centers available to you:
- Conventional - Material movement is performed by people and mobile equipment.
- Mechanized - Material movement is assisted by mechanized, conveyance and sortation systems.
- Automated - Material movement is performed in part or in full by machines or robotics.
While they all have great qualities, the biggest supply chain challenges faced today by manufacturers are controlling international supply chain visibility, lead times, and total landed costs - including inventory carrying costs, transport costs, and customer service.
It is critical to find the "perfect fit" 3PL partner to help you navigate through supply chain disruptions and keep your customers happy.
If you are experiencing costly roadblocks in your supply chain, contact Spartan Logistics to discuss how we can help you improve your regional distribution model, with a full range of implementation services.
Topics: Rise of 3PL Fulfillment Services