Supply Chain Strategies

Supply Chain Strategies

Supply Chain Strategies

Your supply chain refers to the retailers, distributors, manufacturers, transport companies, and storage facilities that are involved in getting your product to market. Managing your supply chain is a full time job that requires a great attention to detail, problem solving, and advanced people management skills. Software helps to manage some of the chaos, but a good supply chain manager can make a huge difference in making sure that the products are produced and delivered to their final destination in a timely manner.

Once you've chosen a supplier or manufacturer, you will need to assess how you are going to get the finished product to the railway, air freight shipping company, or in the case of international shipping, the cargo ocean freight company. Products are generally first shipped by truck, or container, to the next destination.

When shipping by container, you will need to decide if it is more economical to ship a full truck load or a partial truck load. You might think that a full truck load would be cheaper, but that's not necessarily true. It is possible that the cost of inventory storage for your excess delivered product could outweigh the cost of making multiple partial load shipments.

Another thing to consider is that it may be cheaper to have one truck carrying a partial load go to multiple suppliers to fill the container before shipping it to the retailers. When figuring the cost of shipping multiple partial loads or full loads, calculate the cost of the entire voyage for each. Include warehousing, air and ocean cargo costs for shipping partial loads, freight forwarding service costs, and freight consolidation costs into your calculations. Being diligent about these calculations can save you a lot of money in the long run.

Managing your supply chain can be made much simpler if you use electronic services. E-mails, electronic forms, receipts and tracking are much simpler and less time consuming than paper notifications and phone calls. Your supply chain manager should figure the best ways for communicating with everyone involved.

One easy way to ensure that your freight forwarders, air cargo freight suppliers, container shipping companies, and ocean shipping companies are all working seamlessly together is to hire a professional logistics company that manages all of these modes of transport on one system. There are some ocean freight companies that manage truck lines, freight forwarding, air freight services, warehousing, financing or bonding, warehousing and railway shipping all at once.

Choose one that has a lot of international shipping logistics experience. The right company will help you to easily manage your supply chain with little interaction on your part. You should be able to electronically track your shipments, approve documents, and authorize changes electronically. International shipping has come a long way, and the intricacies of supply chain management have become more intense. Using a company that makes it easy will save you money and help you to get your product to market much faster than ever before.

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