BLOG: The Secret to Maintain Supply Chain Competitive Advantage.
One thing remains constant, whether you've achieved a supply chain competitive advantage, or you're seeking it, the need for continuous improvement. Chances are your competition is heavily invested in getting their products to market faster, more efficiently, and more economically than you. So what can you do during these unprecedented times to ensure your goods keep moving?
You've probably implemented new technologies and evolved old processes throughout the chain. But there is one critical process that seems to fly under the radar. It’s your freight procurement process. Needless to say, if your company has not optimized how it sources and books freight, your supply chain may find it hard to maintain, or gain, its advantage.
Once primary, secondary and tertiary carriers have systematically passed on your loads, your transportation team is forced to use freight brokers who are unresponsive, and accept loads without assets (talk about risk). This practice leads to massive freight rate hikes, distribution bottlenecks, and late sales orders for your end customers.
New software has reinvented the traditional way to procure freight. It's helping shippers become much more efficient by empowering shippers to lock in preferred pricing (based on current supply & demand), and then dynamically opens high-quality, asset-based capacity when needed most. Shippers gain 100% visibility to ALL rate and carrier data, hidden by brokers, so they now have actionable rate data to make better, informed decisions.
So if you're looking to maintain, or gain, your competitive advantage look into smart technology that will update how your company is sourcing and booking freight. If your company is still using the old, static way there is room for improvement that could potentially save millions in truckload cost and help get your products to market more efficiently.
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Successful manufacturers are always on the hunt for ways to reduce cost of goods sold to help drive margin growth. The supply chain offers a smart place to start because it is one big, connected machine that impacts every part of the business. Usually when one element goes off track, consequences are felt throughout. Time and money have been spent to optimize supply chain processes to mitigate risk and limit the slowdown of goods produced and moved.
But there is one critical supply chain process that has remained unchanged and inefficient. Unfortunately, this process is not equipped to handle today’s market volatility. Manufacturers across the US continue to use this old, rigid process because no other options exist to replace it- until now!
We are talking about the freight procurement process.
Continuous improvement, fueled by technology, within the supply chain is how manufacturers remain agile. But one critical process remains unchanged and is not equipped to handle today's market volatility. Ask yourself, does your company rely on primary carriers and overpay once they reject your loads? Does your company remain at the mercy of freight brokers and the spot market to keep goods moving?
If you’ve answered yes, then your freight procurement process is not optimized, and your supply chain is at risk. The traditional way to procure freight is too rigid and static, paving the way for massive budget overages, poor OTD, distribution bottlenecks, and unhappy customers. Learn how shippers are now leveraging software to overcome increased freight procurement challenges.
Supply Chain Experts from Sleek Technologies & 101 Solutions examine:
1. How freight capacity impacts the supply chain.
2. What shippers are doing to achieve 95.5% OTD & up to 20% TL savings in today's volatile market.
Looking to solve for something else?
How to Make Freight Procurement Agile, Saving Millions in Freight Spend & Penalties
How Freight Procurement Will Help Avoid Distribution Bottlenecks
How to Effectively Manage Freight Spend & Budget Overages in Any Market Condition
How to Effectively Manage Freight OTD & OTIF