Bridging the manufacturer logistics divide with supply chain agility - AITechTrend
Bridging the manufacturer logistics divide with supply chain agility

Bridging the manufacturer logistics divide with supply chain agility

Supply chain agility is becoming increasingly important for logistics companies that provide services to manufacturers. This is due to several factors, including the rise of e-commerce, increasing global competition, and the need to respond quickly to changing market conditions.

One of the main drivers of this trend is the growth of e-commerce. With online sales expected to reach $4.9 trillion by 2021, logistics companies are under pressure to deliver goods faster and more efficiently. 

According to a study by McKinsey, e-commerce is increasing the number of deliveries by up to 60%, and this trend is expected to continue. To meet this demand, logistics companies need to be able to respond quickly and efficiently to changes in demand.

Another factor driving the need for supply chain agility is increasing global competition. With more companies entering the market and more goods being traded internationally, companies need to be able to adapt quickly to changing market conditions. This includes being able to respond to changes in demand, as well as being able to quickly adapt to disruptions in the supply chain.

In addition, the COVID-19 pandemic has highlighted the need for supply chain agility. With lockdowns and supply chain disruptions, many logistics companies have had to quickly adapt to new challenges. According to the World Bank, the pandemic has resulted in the largest contraction of global trade since the Great Depression. Logistics companies that were able to quickly adapt and respond to these challenges were better positioned to weather the storm.

The need for supply chain agility is also being driven by customer expectations. According to a survey by Accenture, 64% of consumers expect delivery within two days or less. Logistics companies need to be able to meet this demand in order to remain competitive.

Evidently, supply chain agility is the need of the hour for logistics companies providing their services to manufacturers. The rise of e-commerce, increasing global competition, the need to respond quickly to changing market conditions, the impact of the COVID-19 pandemic, and customer expectations are all driving this trend. Logistics companies that are able to adapt quickly and efficiently to these challenges will be better positioned to succeed in today’s fast-paced and ever-changing market environment.

TECHNOLOGY TO THE RESCUE

Technology plays a vital role in helping logistics companies provide supply chain agility to their manufacturers. By leveraging technology, logistics companies can optimize their supply chain operations, reduce costs, and improve responsiveness. Here are a few ways in which technology can help logistics companies to provide supply chain agility to their manufacturers:

Automation: Automation can help logistics companies to improve efficiency and reduce errors. For example, automation can be used to automate tasks such as order tracking, inventory management, and transportation planning. This can help logistics companies to respond more quickly to changes in demand and reduce costs.

Real-time tracking: Real-time tracking technology can be used to track the location of goods in real-time. This can help logistics companies to quickly identify and respond to disruptions in the supply chain. 

For example, if there is a delay in the delivery of goods, logistics companies can quickly identify the cause of the delay and take appropriate action.

Predictive analytics: Predictive analytics can be used to predict future demand and optimize the supply chain accordingly. For example, logistics companies can use predictive analytics to predict future demand for goods and adjust their inventory levels accordingly. This can help to reduce costs and improve responsiveness.

Internet of Things (IoT) : IoT can be used to gather real-time data from various devices and sensors in the supply chain. This can help logistics companies to improve visibility into their supply chain and make more informed decisions.

To enhance their supply chain agility for their clients, logistics companies should keep a check on their current capabilities and identify areas for improvement. Some pointers that logistics companies should keep in mind include:

Assess your current technology infrastructure: Logistics companies should assess their current technology infrastructure to ensure that it is robust and scalable. This includes evaluating the current systems and processes in place to determine if they are still relevant and effective.

Identify areas for improvement: Logistics companies should identify areas for improvement in their supply chain operations. This includes identifying bottlenecks, inefficiencies, and areas where technology could be used to improve efficiency.

Invest in technology: Logistics companies should invest in technology that can help them to improve their supply chain operations. This includes investing in automation, real-time tracking, predictive analytics, and IoT.

Collaborate with partners and suppliers: Logistics companies should collaborate with partners and suppliers to share data and insights. This can help to optimize the supply chain and improve visibility into the supply chain.

Continuously monitor and evaluate: Logistics companies should continuously monitor and evaluate their supply chain operations to identify areas for improvement and ensure they are meeting their clients’ requirements.

Overall, technology plays a vital role in helping logistics companies provide supply chain agility to their manufacturers. Logistics companies can leverage technology such as automation, real-time tracking, predictive analytics, and IoT to optimize their supply chain operations, reduce costs, and improve responsiveness. To enhance their supply chain agility for their clients, logistics companies should keep a check on their current capabilities and identify areas for improvement, invest in technology, collaborate with partners and suppliers, and continuously monitor and evaluate their supply chain operations.

SUPPLY CHAIN AGILITY – A THING OR TWO TO LEARN FROM

One example of a logistics company that has demonstrated supply chain agility for their clients is DHL Supply Chain. DHL Supply Chain is a leading provider of logistics and supply chain solutions. The company has a global network of warehouses and transportation hubs, and provides services such as warehousing, transportation, and distribution.

One of the key ways in which DHL Supply Chain has demonstrated supply chain agility for their clients is through the use of technology. The company has implemented a number of technology solutions to improve efficiency and responsiveness in their operations. This includes the use of automation, real-time tracking, and predictive analytics.

For example, DHL Supply Chain has implemented automation in its warehouses to improve efficiency and reduce errors. The company has also implemented real-time tracking technology to track the location of goods in real-time. This allows the company to quickly identify and respond to disruptions in the supply chain. In addition, DHL Supply Chain uses predictive analytics to predict future demand and optimize its supply chain accordingly.

One example of a client that DHL Supply Chain has provided supply chain agility for is Samsung. DHL Supply Chain partnered with Samsung to provide logistics and supply chain services for the company’s mobile phone business. The partnership helped Samsung to reduce costs and improve responsiveness. DHL Supply Chain implemented automation in Samsung’s warehouses and used real-time tracking technology to track the location of goods in real-time. This helped Samsung to quickly identify and respond to disruptions in the supply chain.

Things to learn:

  • The implementation of automation and real-time tracking technology in the warehouse and logistics operations can improve efficiency and reduce errors
  • The use of predictive analytics can help to predict future demand and optimize the supply chain accordingly.
  • Collaboration with partners and suppliers can help to optimize the supply chain and improve visibility into the supply chain.
  • Continuously monitoring and evaluating the supply chain operations can identify areas for improvement and ensure that clients requirements are met.

DHL Supply Chain has demonstrated supply chain agility for their clients through the use of technology such as automation, real-time tracking, and predictive analytics. The company’s partnership with Samsung is a great example of how these technology solutions can be used to improve efficiency, reduce costs, and improve responsiveness. Logistics companies can learn from this case study how to improve their supply chain agility by implementing automation and real-time tracking, using predictive analytics and continuously monitoring and evaluating their supply chain operations.

How can manufacturers choose their logistics partner today?

Manufacturers rely heavily on logistics companies to ensure that their products are delivered to customers in a timely and efficient manner. Choosing the right logistics partner is essential for manufacturers to ensure that their supply chain runs smoothly and that their customers are satisfied. In this mini-buyer’s guide, we will discuss the key factors that manufacturers should consider when choosing their logistics partner.

Services offered: Manufacturers should consider the services that the logistics company offers. This includes services such as warehousing, transportation, and distribution. Manufacturers should ensure that the logistics company can provide the services they need to run their supply chain smoothly.

Network coverage: The logistics company should have a wide network coverage to ensure that they can deliver products to customers in a timely manner. Manufacturers should ensure that the logistics company has a network that covers the regions where they need to deliver their products.

Technology: Manufacturers should consider the technology that the logistics company uses. This includes technology such as automation, real-time tracking, and predictive analytics. 

Manufacturers should ensure that the logistics company uses technology that can help them to improve efficiency and responsiveness in their supply chain.

Financial stability: It is important for manufacturers to ensure that the logistics company is financially stable. This will ensure that the logistics company will be able to meet its financial obligations and provide services to the manufacturer over the long term.

Reputation: Manufacturers should consider the reputation of the logistics company. This includes the company’s reputation for customer service, reliability, and on-time delivery. 

Manufacturers should ensure that the logistics company has a good reputation in the industry.

Cost: Manufacturers should consider the cost of the logistics company’s services. This includes the cost of warehousing, transportation, and distribution. Manufacturers should ensure that the logistics company’s services are cost-effective and that they provide value for money.

In conclusion, manufacturers should carefully consider the services offered, network coverage, technology, financial stability, reputation, and cost when choosing their logistics partner. By considering these factors, manufacturers can ensure that they choose a logistics partner that can help them to run their supply chain smoothly and meet the needs of their customers. By choosing the right logistics partner, manufacturers can improve efficiency and responsiveness in their supply chain and ensure that their customers are satisfied.

Chandrima is a Content and Marketing strategy executive with 6 years of experience in managing internal and external collaborators to deliver marketing assets that are coherent with the brand voice and strategy. Thrive on building relationships with thought leaders and nurturing brands while gathering knowledge of industry trends. Proficient in the ability to collaborate with digital teams to gather business requirements and translate them into effective, user-centered interactive approaches.