10 Oct 5 Key Issues Impacting Supply Chain, Logistics & Operations Leaders
Supply chain challenges continue to create havoc in many industries. Yet, solutions to resolve these challenges can be both elusive and expensive. At SSI, our core competency is global freight audit services. As such, we glean relevant shipping and supply chain insights from around the world that you may find beneficial. Further, our freight audit services provide enduring benefits, including substantial, recurring cost savings. To learn how we can help you save money in these tough times, contact SSI.
As we review recent news headlines, we see 5 key issues that are impacting logistics, transportation, and supply chain managers
1. Data Management
2. Disruptions
3. Resilience
4. Inventory Management
5. Inflation
As you deal with each of these issues head-on, SSI global freight audits yield benefits that help you work smarter and save money.
ISSUE #1: DATA MANAGEMENT
According to a recent article published by Logistics Management, nearly 70% of fleet managers and supply chain leaders still rely on spreadsheets, worksheets and paper logs as part of their shipment tracking processes.1 Transforming data into actionable insights has never been more important and that is why supply chain data analytics are increasingly important to the businesses we serve.
At SSI, a big benefit of our global freight audits is that large volumes of relevant supply chain data are captured and entered into a dedicated data storehouse. SSIconnect,™ our user-friendly, online platform allows customers to access relevant information and valuable analytics.2
Logistics and transportation managers love our customizable supply chain intelligence dashboards that empower them to discover and pinpoint the shipments and carriers that adversely affect costs. Armed with pertinent information, supply chain issues can be addressed at the root cause, resulting in real change by cutting shipping costs, improving logistical efficiencies, and reducing operating expenses.
ISSUE #2: DISRUPTIONS
In a recent report published by Deloitte Insights, shipping delays, part shortages and transportation delays were the top 3 issues that had the biggest impact on manufacturers’ supply chains in the last 12 to 18 months.3
With shipping and transportation providing so many headaches, it is more important now than ever before to choose a global freight audit provider. What sets SSI apart from others is that we ensure you recover all the refunds due to you on every freight invoice you receive worldwide. So, the savings add up fast as we perform a comprehensive service audit of invoices from global, regional and local carriers.
Regarding part shortages, SSI serves many high-tech companies, so the scarcity of semiconductors during the past few years has impacted our customers. The crisis led to an increase in air freight bills this year. What’s ironic about the chip shortage is that even the companies that make the equipment necessary for chip production are experiencing their own supply chain headaches.
On a broader scale, the chip shortage provides lessons to many businesses that rely on the same suppliers or other suppliers concentrated in the same region of the world. As we have all seen, a single disruption in one region or market can have a ripple effect across the world. As disruptions mounted, the need for supply chain resilience planning became clear.
ISSUE #3 RESILIENCE
As reported in Supply Chain Management Review, high levels of disruption in global supply chains have transformed existing notions of resilient operations.4
At SSI we believe that supply chain resilience planning actually highlights the need for automated, nimble, and scalable freight audit solutions. That’s why we encourage everyone to incorporate global freight audit and freight payment services into their programs.
SSI services are customized to meet the current requirements of shippers and our automated process easily adapts and scales to meet evolving supply chain needs.
Whether a shipper’s supply chain resilience planning involves re-shoring, near-shoring, or setting up regional webs of suppliers, multimodal freight audits deliver measurable savings that will offset some incremental costs associated with procuring goods from multiple sources. In fact, some SSI customers save up to 15% of their total transportation budget.
ISSUE #4: INVENTORY MANAGEMENT
Converging forces are creating inventory management headaches. Consumers are pivoting away from buying as many goods as before, which is leaving retailers with too much of the wrong stuff.5
Further, mounting supply chain challenges have resulted in businesses stretching out their buying cycles. This means supply chain managers have been bringing goods in earlier to ensure shelves are stocked when the goods are needed.
Freight audit solutions provide crucial savings to customers who, swamped with excess inventories and short on warehouse space, are navigating multiple inventory-management crises. A thorough freight audit process allows shippers to recover carrier refunds as goods get shipped across global supply chains and onward to warehouses and customers.
Also, there is a growing opportunity for shippers to gain more freight and parcel savings from reverse-logistics. Customer returns are a costly headache for businesses – especially those with e-commerce operations.
ISSUE #5: INFLATION
Inflation is hitting both businesses and consumers hard, but shippers are especially getting walloped. Last year, logistics costs rose by 22.5% to $1.85 trillion, according to the 2022 State of Logistics report that Supply Chain Management Review covered in a recent article.6
As recently reported in The Wall Street Journal, inflation in the U.S. has been hovering near a four-decade high. Higher costs prompted FedEx to announce a 6.9% GRI for next year, the highest increase on record by the parcel giant.7
Savvy business leaders are now looking for worldwide logistics and supply chain savings as costs continue on an upward trajectory.
At SSI, we think every business with a robust supply chain needs to have expert freight audit support. It is important because billing errors get magnified as invoice costs increase. Of note, our customers appreciate that freight audits provide a consistent flow of carrier refunds. We have some customers with global supply chains that recover tens-of-thousands of dollars a month.
MAKE SSI YOUR GLOBAL FREIGHT AUDIT PROVIDER
SSI serves the needs of supply chain, operations, logistics, shipping, and finance professionals.
To re-cap, we transform the complexity of global freight audit into cash savings and supply chain intelligence, providing actionable insights to maximize your profit potential.
- Customizable solution scales with your growing and dynamic business needs
- Automated freight audit drives savings to the bottom line
- Cutting-edge data visualization facilitates analysis
- Actionable business intelligence supports supply chain optimization and operational efficiencies
Whether you are ready to switch to SSI global freight audit services or you simply want to learn more, let’s talk.
Footnotes:
1. “How supply chain leaders are investing in new technology”, September 7, 2022, as published by Logistics Management.
2. SSIconnect is a trademark of Software Solutions Unlimited, Inc.
3. “Meeting the challenge of supply chain disruption”, September 21, 2022, as published by Deloitte Insights.
4. SCMR Staff, “Supply chain resilience reaches peak of inflated expectations”, September 13, 2022, as published by Supply Chain Management Review.
5. Nathaniel Meyersohn, “Here come the discounts at Walmart, Best Buy and Gap”, August 1, 2022, as published by CNN Business.
6. John D. Schulz, “U.S. logistics business costs rise by 22.4% to $1.85 trillion in 2021, new report says”, June 21, 2022, as published by Supply Chain Management Review.
7. Esther Fung, “FedEx to Raise Shipping Rates by 6.9% as It Combats Slowdown”, September 22, 2022, as published by The Wall Street Journal.
Post title:5 Key Issues Impacting Supply Chain, Logistics & Operations Leaders.