How companies to navigate supply chain complexities while still serving their customers & growing their business?

Disruption has been the name of the game for more than a year as supply chain leaders have been dealing with changing buyer behaviors, inventory management challenges, labor shortages, weather and pandemic-related uncertainty, cyber security threats and capacity constraints that continue to create significant supply chain volatility. With peak shipping season approaching, companies continue to face supply chain risk as the pressure increases to meet customer and delivery expectations without adding cost.

A traditional inventory replenishment strategy, such as ordering based on historic patterns, is no longer effective in today’s world. Traditional inventory management strategies were designed with all supply chains being linear, reflecting a manufacturer to retailer to end-user process in accordance with reverse logistics. Advancements in technology and the proliferation of e-commerce have created a somewhat cyclic supply chain that can route orders from anywhere.

The increased strain on available resources and the growth of e-commerce creates a greater need to manage by exception. Rather than trying to manage each shipment manually, today shippers can leverage technology to enable true management by exception. For instance, the capacity that is needed per shipment like the 2021 produce season transportation capacity outlook. Exceptions are the one-off issues that arise that may require human intervention to resolve.

There was a time when management by exception and manual management were almost identical. But automation and sequential tendering processes within an advanced transportation management system (TMS) have given rise to the ability to manage by exception.

According to a recent survey fielded by Edelman Intelligence, 94% of supply chain leaders say partnerships with supply chain logistics companies are necessary to get through peak season successfully. The survey also found that 9 in 10 supply chain leaders are seeking 3PLs with a consulting offering that provides guidance in setting up their company’s supply chain.

The evolving supply chain and buying options for consumers is an advantage in the modern world, but without visibility on all inventory throughout a company’s network, it grows more difficult to track. As a result, carrying costs spiral out of control, and stockouts become more likely which means an easier conversation about supply chain risk management.

The modern world of freight management is growing more complex, and finding success depends on around-the-clock scalability, insight into specific market granularities, clear data and visibility, and understanding how to stay strategic. It’s increasingly difficult for companies to plan, source, manage and navigate supply chain complexities while still focusing on what they do best: serving their customers and growing their businesses

Source: https://logisticsviewpoints.com/2021/09/16/supply-chain-risk-management/