Having a focus is essential for an organization to avoid the negative consequences that can arise from a lack of it. What are the key areas you should focus on in your supply chain? First and foremost, conducting a cost to serve analysis is vital. This analysis helps identify and address profit and cash leaks within your supply chain…
One of the most common mistakes is not allowing enough time. Organizations often wait until contracts are close to expiring, leaving only a few months to find new providers. In the current market, many 3PL providers are incredibly busy, making it harder to find the right fit. Rushing the process can lead to poor choices and long-term issues…
Have you ever found yourself wondering what the future holds for the world of international logistics and ocean freight? A key challenge lies in port infrastructure, which hasn’t kept pace with shipping demands. Some ports are starting to use automated guided vehicles (AGVs) to move containers, but with massive 22,000 TEU vessels, balance is a concern, making full automation tough…
The pandemic drastically disrupted the shipping industry, with skyrocketing demand, especially in e-commerce, driving ocean freight rates up by as much as 50% between 2020 and 2021. Service reliability also took a hit. However, we’re now seeing stabilization, with rates moving closer to pre-pandemic levels. Experts predict that rates will return to something similar to 2019, with minor fluctuations based on market conditions…
We’ve reached a major milestone on our channel – 200 videos! And to celebrate, I’ve got a special thank-you gift at the end of this video, so stick around. After four or five years of content creation, it’s fantastic to see that we’ve hit 200 videos. We’ve built a wonderful community in our channel, Supply Chain Secrets…
Outsourcing your logistics is a lot like dating. Treat outsourcing like a long-term relationship. Get your data in order, avoid unnecessary demands, and take your time to find the right partner. With the right 3PL, you’ll build a reliable, lasting partnership…
Logistics outsourcing can be tricky, especially if you’re unfamiliar with the process. Without the right preparation, mistakes are almost inevitable, and these can result in wasted time and resources. The first mistake is failing to provide enough accurate data. Whether you’re outsourcing warehousing or transportation, the 3PL needs precise information to create an efficient solution…
Trent explains that many people set KPIs at targets like 98%, but the reality is that we’re paying for—and expecting—100%. For instance, in supply chain management, businesses strive for the perfect order every time. But when we set KPIs below 100%, we’re accepting that 98% or even 95% is good enough. Trent makes an important point: aiming for 100% service level is the right approach, even if we know that not everything will go perfectly…
A question I hear all the time is: How many suppliers should you include in a logistics outsourcing tender? It’s not always straightforward. Open tenders, common in government and large corporations, allow any supplier to bid. While this ensures impartiality, it often attracts an overwhelming number of responses, many of which are unsuitable. Closed tenders, where a select group of suppliers is invited to bid, are far more focused and efficient…
At its core, SRM is about building meaningful partnerships with suppliers. It’s not just about tracking performance or ensuring deliveries arrive on time. While those are important, SRM goes deeper, aiming to create a relationship where both the company and the supplier benefit…