Freight Advisory
GSCM Services
In today’s world, businesses face great challenges ensuring product and material flows smoothly around the world. Those businesses are facing unprecedented challenges in the face of a combination of international crises – challenges like the Russia-Ukraine conflict, the COVID pandemic, and trade conflicts.
The COVID pandemic has led to a global shortage of shipping containers and vessel capacity, which has in turn led to skyrocketing shipping costs. Trade conflicts have further exacerbated the situation, as companies strive to source materials from countries where trade agreements are in place.
Meanwhile, the Russia-Ukraine conflict has led to disruptions in the flow of goods between these two countries and the rest of the world. This has forced businesses to juggle conflicting demands and priorities. In addition to ensuring that goods are delivered on time and within budget, they must also ensure that goods are sourced from reputable suppliers, and that supply chains are not disrupted.
Importers and exporters are dealing with multiple priorities, including cost-effectiveness, timely delivery, and customer satisfaction. In addition, they must be prepared to adapt to changes in both the marketplace and supply chains. As the world economy continues to evolve, supply chain professionals will need to stay ahead of the curve to ensure their companies can compete in a global market.
The Challenge
Today we’re seeing supply chains dealing with –
Lead-Time Volatility
Lead times for shipments have increased significantly, with some goods taking 60 days or more to arrive when previously they would take 25. This causes major disruptions to the supply chain and results in higher prices for consumers.
Supply Scarcity
Supply chains are feeling the squeeze as raw materials, components, and finished goods become increasingly scarce. Disruption to traditional supply chains and escalated trade tensions, caused by a variety for factors including the pandemic, have led to shortages of certain key materials.
Businesses now must scramble to find new suppliers and source materials from unexpected places. This often results in longer lead times and higher costs. In some cases, businesses are even being forced to discontinue certain products due to the scarcity of key ingredients. While the situation is challenging, it also provides an opportunity for businesses to rethink their supply chains and build resilience in their operations. In the long run, this may help them weather future disruptions and emerge even stronger.
Increasing Energy Costs
Supply chains are feeling the pinch as energy prices continue to rise. Fuel costs have doubled in recent years, and now make up a quarter of all freight expenses. This has put immense pressure on supply chain managers to find ways to reduce fuel consumption.
Unhappy Customers
Supply chains are under pressure as customers demand faster deliveries, greater visibility, and quicker response times. Supply chains are struggling to keep up with the demands of customers. Customers are not willing to tolerate bottlenecking, which is a problem for the supply chains.
Reduced Labour Pool
A supply chain is only as strong as its weakest link, and today that weakest link is often the labour pool. With skilled workers in short supply, manufacturers are struggling to meet scheduled shipping days. The result is a domino effect that can cause delays and disruptions all along the supply chain. The good news is that there are steps companies can take to mitigate the impact of this trend. By investing in automation and other forms of technology, manufacturers can reduce their reliance on manual labour. In addition, companies can outsource part of their supply chain management, retaining the knowledge and access to a vast level of functions and capabilities.
Unkept Promises
It’s a supply chain’s job to ensure that an organisation has the materials it needs to operate and that those materials are delivered when and where they are required. Unfortunately, we’re now seeing supply chains around the world struggling to meet their obligations. Carriers are not fulfilling their volume contract obligations, and agreement terms are being broken. This is causing material shortages and delivery delays that are severely impacting businesses.
Heightened Tensions and International Regulations
Supply chains are becoming increasingly complex, partly due to increased international tensions and regulations. As a result of this complexity, manufacturers face a number of challenges, including increases in the cost of duty, noncompliance fines, customs delays, and higher-cost countries of origin. These challenges are likely to have a significant impact on the bottom line. To stay competitive, manufacturers must find ways to manage these challenges effectively. Supply chain management software can help streamline processes and improve visibility into the supply chain. sing such software can give manufacturers a better understanding of their supply chains and assist them in making informed decisions about where to source materials and how to optimize their operations.
What’s The Answer?
An end-to-end transportation and logistics upgrade.
With so many moving parts affecting supply chains, getting a handle on transportation and logistics can seem daunting. It needn’t be. At Saving Point, we take a comprehensive approach to these issues, bringing them into line for our clients and making their transportation and logistics systems best in class. Our goal is to improve every aspect of your logistics operation’s effectiveness to keep your customers happy while reducing overall costs.
We have a team of experts who analyze your specific needs and develop customized solutions that optimize your supply chain. Our solutions are based on best practices and our deep experience in the logistics industry. We work with you to implement the changes necessary to improve your supply chain’s performance and make it more efficient and cost-effective.\
Our services offerings can run virtually every aspect of your operations:
First, we evaluate the maturity of your present logistics operations to identify how to make best in class
Next, we benchmark your costs to see how they compare with your peers to determine if you're getting the best value. We also evaluate your on-time-in-full performance and how it affects customer satisfaction
We conduct lane and load factor analyses to assess your carrier and facility selection, your costs, and the quality of the service you're receiving
Finally, we also evaluate your freight bill and audit procedures and how you resolve exceptions and conduct transportation analytics
Logistics planning and execution
Customs and global trade
Audits and controls
You’ll See Positive Results, Immediately!
Saving Point’s all-inclusive approach to transportation and logistics helps businesses overcome these challenges. Our comprehensive services cover every aspect of the supply chain, from strategic sourcing and category planning to transportation management and execution. We work closely with our clients to understand their specific needs and objectives, and we tailor our services to meet those needs. The result is a streamlined, efficient supply chain that reduces costs, maximizes savings, and uses resources efficiently.
What You’ll Experience
With auditing and improved control, you’ll achieve a 10% minimum reduction in transportation costs.
Improved international visibility of the shipping process with both outbound and inbound shipments.
You’ll achieve between a 10 and 35% reduction in negotiated rates.
With process automation, you’ll experience somewhere between a 20 and 25% reduction in labour costs, due to the elimination of manual tendering, booking, and track and trace.
You’ll also experience up to a 10% reduction in the number of necessary loads or trips, solely through improved capacity planning.
SAVING POINT
We’re here to help!
If you’re looking for ways to improve your supply chain, Saving Point is the right choice to make. Saving Point’s unmatched experience and expertise in supply chain management can help your business achieve its goals. Contact us today to learn more about our services and how we can help you optimize your supply chain.