NEWS

Improvements of the global cargo supply chain

Thursday, February 28, 2019

eCommerce has caused a great increase in worldwide shipping volumes, but with more demand, there is also more pressure, and this pressure is to implement omni-channel compliance to send the packages anywhere, from anywhere, and achieve rapid delivery while controlling the cost of “free” shipping. All this because the end consumer becomes day by day more demanding, loyalty practically does not exist, if you make a mistake  it is very unlikely that the customer will buy from you again. Therefore, being constantly improving, looking for new implementations for the supply chain in order to make processes more efficient is essential.

The “chains of load” cover from the collection in the first mile, the cross-border consolidation and the des-consolidation in networks of parcel of last mile. Omni-channel demands on global shipments have to do with the choice of the customer, their choice of brands, choice of products and choice of service. This demand will require the management of more products, in more facilities and in more regions.

Senders are asked to comply with more complex requirements and provide more value-added services. There is a greater demand to divide pre-assigned orders for both stores and distribution centers to reduce handling costs and accelerate service.

To survive, costly assets such as warehouses and trucks have to be reduced, resulting in greater cooperation between companies to share supply chains. Retailers and large corporations can configure supply chains similar to 3PL to serve multiple brands with a greater focus on service costs and profitability throughout the supply chain and not just on the retail side.

Each stretch of the cargo chain has its own unique nuances that cannot be handled as a set of business rules. The rules specific to the mode help eliminate manual solutions, higher costs and service problems. LTL (national consolidated cargo) is not an exception. Integration is key, the ability to connect and share important data elements is essential to provide an automated workflow. Often, LTL is misinterpreted in terms of what is required for integration and, if not properly managed, can have an impact on costs and service.

And we also have the technological challenge, first, the package is not like the load. The plot lacks standards related to qualification, documentation and monitoring. The packet volumes are usually 20 times higher than the load volumes, so integration and automation are a priority. The speed processing speeds of seconds are mandatory.

Also, 3PLs must take into account the specific automation requirements of the customer, such as integration, business rules, rates and documentation. They will need a TMS (transportation management system) platform that can adapt to the needs of each client and change as their needs change, without having to manage or customize multiple platforms. A federated TMS architecture provides a unified point of control, but diverse when it comes to customer requirements.

As we can see the trade every day becomes a little more complex, and shaking hands with business partners is essential to make more efficient processes as mutual support helps the company stay afloat. In DICEX we have a consultancy business unit in which we support our clients and suppliers in all types of issues related to foreign trade with the aim of supporting them to continue growing and operating in the best way.