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COLLECT DATA INSIGHTS. 2021 was a frenetic year for manufacturers, retailers, and distributors specifically related to logistics and freight procurement. And arguably nothing has caused more headaches than truckload capacity. From rising costs, increased tender rejection, poor on-time delivery, and lack of data transparency, it should be no surprise that shippers are struggling to maintain transportation key performance indicators (KPIs). And unfortunately, it doesn’t look like things will get any easier in the short- to medium-term in 2022. With that said, a growing push in the logistics and freight industries around data transparency, coupled with a long-overdue digital transformation that automates old processes, will help ensure shippers have the sophisticated tools necessary to gain real-time visibility into the capacity market, and actionable data to make data-driven decisions.
LIQUIDATE & LIMIT YOUR SKUs AND GIVE E-COMMERCE CUSTOMERS VISIBILITY INTO ORDER STATUS.
Warehouse vacancy rates are still historically low. Storage rates have doubled—and in some areas, tripled—over the past year. Because warehouse operations have become so complex, it’s highly unlikely that new facilities will be off the ground in time to increase capacity any time soon. We have record levels of inventory coming into the country and record levels of inventory already here, sitting on warehouse shelves. Some merchants are holding on to inventory that hasn’t moved in over a year. At current and projected storage rates, those merchants will soon be upside down in their investments. Savvy merchants will do three things to overcome this capacity issue. First, they will look to immediately liquidate anything that has been sitting on a shelf eating up margins. Second, they will narrow their SKU catalog to only their fastest-moving SKUs. Finally, a leaner SKU catalog allows merchants to contract a smaller footprint within the warehouse, reducing storage fees and creating exibility to more easily distribute their inventory for faster time in transit on nal- mile deliveries.
Jaimie Kowalski VP, Marketing, Sleek Technologies
Steve Denton CEO Ware2Go, a UPS company
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TAKE BOTH A BIRD’S EYE VIEW AND A GRANULAR LOOK AT DATA.
The pandemic has both shaken and slowed supply chains across industries so dramatically, requiring professionals in the field to take a keener look at every single step of the process, and recognize the important role technology plays in making this possible. It’s no longer just you and your supplier—in fact, it’s more critical now than ever before to have both a bird’s eye view of the entire system, and granular insight into each step along the way. This kind of visibility is going to be key to shipping and receiving products in a timely fashion—and in a way that remains compliant in 2022. As such, we see innovative and forward-thinking supply chain leaders integrating and investing in software that provides this kind of critical visibility into every component of the supply chain for more timely and streamlined outcomes.
The state of the global supply chain is forever changed—and that’s a good thing. Over the past 20 months, retailers, suppliers, and vendors’ traditions became obsolete, forcing them to address long-term pain points exasperated by the immense disruptions brought on by the port bottlenecks and shipping delays. In a time when delays have become commonplace, retailers need to take their tail out from between their legs and realize over-communication is key. Those succeeding are the ones with visibility into their suppliers and warehouses, and the ones who communicate product listings, cart status, and tracking by text and email afterward. Transparency before, during, and after the order process is critical as we enter 2022, and retailers guaranteeing this transformation establish trust with their customers.
Krish Iyer VP of Industry Relations and Partnerships Auctane
Suzanne Offerman Senior Proposition Manager ONESOURCE Global Trade, Thomson Reuters
224 Inbound Logistics • January 2022
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