The majority of 2020 was a struggle for many in the shipping and transportation industry. It was a year of change, adaptation, versatility, and discovery. No place showed this more clearly than in supply chain integration and collaboration.
Many of the trends and processes that became the norm during the COVID pandemic will continue to be embraced and built upon. And shippers need to realize the six top reasons why the current supply chain conditions demand greater emphasis on supply chain integration and collaboration.
1. Companies Are Ripe for Supply Chain Integration and Collaboration
Technology and automation remain essential for businesses of all types. The increased demands of e-commerce and virtual shopping will only grow. Mobile and contactless delivery will remain in high demand. Carriers, shippers, managers, and customers alike expect a better experience. And it’s easier to manage returns and monitor shipments when supply chain integration is embraced rather than resisted.
2. Innovative Strategies Follow Integration and Collaboration Among Freight Management Parties
The supply chain needs upgrades to embrace integration and collaboration better. A traditional supply chain network has a narrow focus and a range that may no longer remain effective or viable. Supply chain integration and innovative management will remain essential in the years to come. For instance, more companies will leverage robotics process automation (RPA) and other capabilities to build on collaboration and leverage the newest technologies.
3. Collaboration Empowers Shippers and Carriers With Data and Informed Decision Making
Modern supply chains have specifically designed aspects that must stay efficient while remaining multi-faceted. The focus on contemporary advances in technology, automation, communication, and analytics is key to success. Furthermore, automated systems and updates allow for informed decisions when problems arise. Monitoring the transactions and the supply chain movement can be made easier with supply chain integration. It’s that simple.
4. Supply Chain Integration and Collaboration Allows Managers to Do More With Less
Supply chain integration focuses on opening doors to new opportunities. According to Business2Community, “[nearly] 44% of online customers who bailout of a purchase say that high shipping costs are the number one reason, and 24% of customers cancel orders due to slow delivery speeds. With 73% of ecommerce shoppers expecting cheap and swift delivery, [shippers will respond and] will [be] more likely retain customers.”
This focus of integration should remain what managers and supply chain networks gravitate toward.
5. Carriers Maintain Control Over Pricing; Meaning Integration Is Core to Reducing Total Landed Costs
Many factors come into play when looking at the various benefits possible with supply chain integration. A critical one for freight carriers and logistics managers remains the control they can maintain over pricing. The ability to influence costs and shipping services make a difference in customer interaction and retention. This is especially true in light of e-commerce logistics and shipping requirements.
6. The New Normal Means Future Disruptions and Lockdowns Are Possible
Supply chains must work to find a way to establish and sustain a competitive advantage within their markets. Supply chain integration is the foundation of this future. It has saved many supply chains during the tumultuous year that 2020 presented. This also can help ensure the survival and growth of shippers in 2021 and beyond as future disruptions remain likely. In turn, more brands will turn to integrated platforms and connected resources to stay future-ready.
Be Ready With Supply Chain Integration and Collaboration Via an Enterprise TMS
A lot has been learned from the COVID-19 pandemic. Changes, adaptation, and innovations keep many supply chains afloat. This has ensured the survival of the shipping and transportation industry. Many of these changes remain a barrier to efficiency. However, the right solution can help and enable supply chain integration and collaboration throughout your global network.
Very Good Article on freight auditing analytics and software.