Living in an age of consumerism and globalization, whoever can deliver (and fastest), wins. History shows us that at one time, outsourcing the transportation function was the first real step in the modern evolution of supply chains. That way of thinking may have reduced manufacturers’ capital costs but poor communication between outsourced transporters and warehouse operators were all too evident. Customers became unhappy and outsourcing represented one step forward and two back.
For the last decade or so, the integration of all logistics functions has been the focus for supply chain practitioners. Eighty-five percent (85%) of potential logistics cost savings come from integrating the supply chain, but optimization also positively affects cash-to-cash cycles, customer service and loyalty and sales.
Demand cycles are increasingly volatile, driven less by product advantage than by logistics advantage. To master the modern supply chain environment, the concepts of speed and agility must be understood.
Speed and Agility
Only by getting the right goods to the right place at the right time can you give a product a chance to compete and to succeed. Being able to respond timeously and effectively to fluctuating demand helps to prevent lost sales, and also to reduce write offs of excess stock.
On the other hand, a lack of speed or agility can lead to excess stock as trends and fashion change, or out of stocks and the sure knowledge that an organization never knew the potential of a product.
Being able to move goods quickly to high-demand areas and withdraw stock from low-demand areas is vital. Keeping tabs on demand patterns and the efficiency of reverse logistics systems also contribute to agility and flexibility.
ProShip improves the ability to fulfill orders from any inventory location. This includes traditional warehouses, stores, and retail replenishment locations, as well as directly from vendors. By utilizing inventory that is the closest to the customer, shipping costs can be minimized while decreasing transit time to customers.
Speed and agility are at the forefront of what makes ProShip a top software solution in the shipping business. With no limit to scalability, ProShip can handle over one million transactions an hour on a single system server, while supporting the most complex shipping methods, procedures and business rules.
As the market continues to change at pace, an agile, flexible and responsive supply chain can open the way to clear competitive advantage. Partnering with a logistics expert who understands this as well as the environment that you operate in, is clearly the only way to ensure and sustain success.
Sources: “Speed is the New Supply Chain Differentiator”, Supply Chain Update