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In addition, the holiday shopping period between Thanksgiving and Christmas this year is 26 days—five days shorter than in 2023—potentially creating additional headaches for online vendors and their delivery partners attempting to fulfill a greater volume of orders in less time. billion in sales.
According to data from a recent research survey, the following were on top of the supply chain headaches not addressed by their current systems: Supply shortages due to supplier’s inability to meet expected performance targets. Network costmodeling. Data cleansing and data robustness.
“This report highlights the necessity for supply chain and finance departments to work more closely and adopt costing practices that are progressive and focused on informing internal decisions.”. Among those surveyed, supply chain managers agreed, on average, that the benefits of improving their costing systems exceed the investment.
In most industries, supply chain logistics account for 5% to 50% of a product’s total cost.” Measuring performance with transportation KPIs and freight data is getting easier. Budgeting and managing freight costs are critical to overcoming any disruptions and increasing profitability. Think about this.
The alternative, as I advocate all the time, is "should cost" modeling which means the buyer goes into the conversation with no preconceived notions established by the seller. The only thing the buyer brings to the table is costdata down to the lowest level possible. That starts the conversation.
Use Warehouse/3PL cross-functional teams to contribute Cost Savings Ideas: Lean initiatives alone will bring cost reduction and process improvements. Use Gainsharing so both the Warehouse/3PL and customer/shipper gain where cost reduction is found. Create a “win-win” partnership. KPIs Question 2.
Freightera is one of the only companies that has created a fixed costmodel with data directly from carriers. It has found a way to enter carriers’ rates from multiple modes in their data management system so shippers can compare rates from carriers of all sizes and transport modes in one place.”.
Overseas markets are becoming volatile, and the cost of labor in foreign countries is rising steadily. However, many countries still continue to have lower labor costs than the US, and so we still see offshoring by companies who are in the proverbial pursuit to the lowest costmodel.
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