can take time to effect and realize a return on investment (ROI) easily or without a price tag. The AFS service offers nancing and places inventory near customers’ points of consumption or distribution. The 3PL purchases the inventory from the supplier, thereby accelerating the supplier’s cash position and, according to Dyer, “providing mutual value to them.” The customer (buyer) pulls the inventory through AFS as needed, “and the customer enjoys assurance of supply without deploying increased levels of working capital,” he says. FINDING THE SILVER LINING If supply chain managers are looking for the silver lining after more than two years of operating during a pandemic, there are several—from new forecasting tools and practices to additional 3PL service options to greater supply chain resiliency and enhanced collaboration. “During these uncertain times, we have become much more collaborative with our providers and customers,” says Lin. “We all want our products to reach the end user in the most ef cient and cost-effective way, without disappointing our customers or losing sales. “While some of these changes have been the result of necessity,” he says, “greater collaboration throughout the supply chain is a positive move for all parties.” n
Strategically located in central California, Musco Family Olive Company, a leading olive processing plant and ripe-olive packer, partners with a 3PL to handle product transportation.
must have the capacity to transport it and have visibility,” says Lin. “In this environment, it is important to leverage every piece of information available. “There are many systems that support historical ERP planning, production, and forecasting,” he adds. “The challenge is having visibility once a product is on an ocean carrier or multi-modal train. “While trucking companies offer some degree of visibility regarding where a truck is and the estimated time of delivery, they still do not make it easy to determine if your shipment is the rst for delivery or the last, based on how the trailer is loaded,” Lin notes. “The situation is even more challenging with ocean carriers. “We count on AFS to handle our transportation,” he says. “While we manage inventory levels based on factors such as increased demand for certain products, AFS provides expertise to determine the most ef cient and cost- effective ways for us to move products. They evaluate modes and model the best way for us to serve our customers.” 3PL S DEVISE NEW SOLUTIONS Transportation management is only one example of how 3PLs help companies adapt to a supply chain that is still highly disrupted. “3PLs enable
inventory ef ciencies through visibility, reliability, and sense-and-respond technologies,” Dyer says. “Knowing what you have, where, with con dence that it can move where you need it, reduces the need for high inventory stock levels.” Additionally, 3PLs like AFS have developed supply chain assurance programs that allow customers to have access to nearby inventory without the high working capital requirements. As companies look at sourcing products from different locations, often a necessity due to transportation challenges, a change of this magnitude
Third-party logistics provider AFS develops supply chain assurance programs for customers such as Musco Family Olive Company. The programs provide access to nearby inventory without high working capital requirements.
January 2022 • Inbound Logistics 255
Powered by FlippingBook