Five Strategies in Logistics and Supply Chain that will Boost ROI in 2022
We live in a world of fast-changing consumer behavior. Gone are the days when supply chain was viewed as a mechanical part of a company’s process; effective supply chain management is now regarded as one of the most crucial factors for companies to gain a competitive edge in a post-COVID-19 world. The Covid-19 pandemic forced logistics and supply chain management to evolve quickly as companies sought to stay profitable in a world of delayed shipments and supply shortages.
In 2021, several organizations shifted from low-cost supply chain planning to more efficient and agile frameworks. This brings the question, “what trends should supply chain and logistics leaders expect in 2022, and which ones are crucial to greater supply chain efficiency and increased revenue?”
Utilizing Data to Get Consumer Insights.
Inadequate or non-existent forecasting can lead to millions in revenue losses. Running out of stock means customers buy from your competition and having too much means you are paying unnecessarily inventory costs. Apart from working with a credible freight management company to move raw materials, finished products, or machinery, It’s important to keep the right amount of product in stock. For instance, how do you respond to sudden changes in demand? To do this supply chain and logistics managers need to predict consumer purchase behavior and this is only achievable through forecasting.
Supply forecasting: Supply forecasting helps you aggregate data on your suppliers to project the volume of materials they can make available and at what lead times. This helps you decide how much you need to order and when — to avoid shortages and overstocking your warehouse.
Demand Forecasting: Demand forecasting looks at changes in cultural trends, seasonality, consumer behavior, and even advertising to determine how many products your customers will want within specific time periods. For instance, studies have shown that the demand for alcoholic beverages reduces during long fasting periods like Ramadan.
Demand forecasting is so pivotal because it enables supply chain and logistics managers to set correct inventory levels, understand when to increase or reduce production, price products correctly, and how and where to expand.
Tracking and Visibility.
When moving cargo to another port or moving products to warehouses or distributors, it is advisable to utilize technology or work with a trucking or freight company whose processes are automated to avoid unwarranted surprises. The absence of real-time access to important information can disrupt the entire chain and lead to a loss for the business especially for time-sensitive deliveries.
Technology is crucial to accessing real-time data, measuring performance, closing gaps quickly, and creating transparency within your supply chain’s transportation value chain.
Getting real-time updates on shipments drastically cuts costs, allows for faster decision-making, and improves a company’s performance in the area of service delivery and at a time when organizations are adopting remote work conditions, it’s even more critical to leverage reliable, real-time data to keep your transportation costs low and your supply chain running smoothly and profitably. At MVX, for instance, we have successfully engineered a tech-powered freight management system that gives businesses access to real-time cargo updates.
Smarter Warehouse Management with IOT Technology.
Warehouse management inefficiencies increase operational costs. Poor warehouse management can affect the efficiency, and productivity of your entire supply chain process and limit the growth of your business as a whole. The worst part is; these issues are often only identified after the damage has been done. IoT systems are networks of automated warehouse devices and sensors that can receive information, monitor, detect and report issues to ensure that warehouse inefficiencies are tackled in real time. For instance, to help reduce redundancy in order picking, barcode technology can be used to ensure the accuracy of items that have been picked for delivery and notify the user of any duplicates.
Warehouse management technology can also be used to organize your warehouses. For instance, some systems use 3D technology to optimize inventory storage areas. Examples of internet-enabled devices that can scan, store, and share, are beacons, drones, RFIDs, sensors, etc.
In an increasingly unpredictable world, supply chains are constantly at risk due to political and environmental events and more recently, pandemics. This is why it is important to take strategic steps to identify, assess and mitigate the risks within your supply chain. Can you pinpoint what the biggest potential threats could be? For instance, if you are sourcing raw materials from a geographical area that is politically unstable, you could start searching for other areas where you can source those raw materials from or alternatives to substitute for that material in the event of supply disruptions. Being proactive rather than reactive gives you an edge over competition and helps you thrive in uncertain times.
Choosing the Right Freight Management and Logistics Partner.
At MVX, we are revolutionizing freight forwarding by providing simplified freight management services for businesses like yours. If you enjoyed this post and would like to know more about our offerings, visit www.mvx.trade, call us or click here to chat with Tania on WhatsApp.