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Major advances in technology over the last decade have seen the global economy pass through a period of rapid growth. The transformation has been compared severally with the industrialization that occurred in the 19th century although some believed that the digital revolution is moving at an even faster pace. Various sectors of our economies are being altered and our ways of living and thinking have been significantly changed.
Mobile connectivity, data gathering, and analytics have improved tremendously leading to the emergence of new business models as well as new products and services. Development and manufacturing, e-commerce, as well as logistics have also seen significant changes. But then, there’s even more to come. Industries of all types from healthcare to finance, to energy and governments, will have to adapt to the rapid wind of change.
Supply chain in the digital age
The realities of the modern age and the digital revolution demand that businesses adapt to the changing environment. This will, however, have far-reaching implications to the general approach to logistics and supply chain management. For supply chains, organizations have to begin a proper re-evaluation of their networks.
The supply chain management teams have to move operations to the ideal point, to find a trade-off between cost-efficiency and service levels. The modern organization needs to either reduce or find a way to optimize logistics cost through a proper assessment of their transportation, service, facilities, and inventory, among others. Supply chain management will have to be made as efficient as possible to reduce costs and increase profitability.
But then, how can organizations do this?
Optimizing your supply chain network
Optimizing your supply chain may involve a complete network redesigning.
It should, however, start with determining the project scope with regards to the resources, timeline, requirements, and project plan. The plan should emphasize the benefits and demerits of having an in-house network or using a third party provider. While you may enjoy some freedom and flexibility with an owned network, a third-party logistics provider might be able to provide greater service at a lower cost, ultimately bringing scale that may have been impossible with an in-house network.
When optimizing your supply chain network, there are certain factors that should be importantly considered. These include sourcing and manufacturing, distribution and delivery, as well as fulfillment and returns. Transportation modes, route optimization, warehouse design, as well as business processes will have to be thoroughly evaluated.
Again, sustainability and visibility should also be considered. Factors such as carbon footprints, end-to-end visibility of the supply chain, ease of web integration, and billing solutions. All of these factors will have to be carefully evaluated in relation to customer service level commitments as well as cost-efficiency.
Bottom Line
Businesses have to adapt to the changing dynamics of today’s markets brought on by the rapid digital revolution. Globalization, along with increased service expectations has put supply chains and logistics under increased pressure. Change is therefore inevitable. To successfully make this shift in a cost-efficient manner, supply chains would have to look towards incorporating digital technology along with smart network design and optimization.
BYEXPRESS Worldwide
BYEXPRESS Worldwide is one of the world’s largest marketplaces making it easier for businesses as well as global importers and exporters to connect with some of the most credible air and ocean logistics providers. This offers an unlimited opportunity for individuals, businesses, and organizations concerned about value and service efficiency.
You can easily log on to our website at www.byexpressworldwide.com with details of your shipment to get free quotes from multiple carriers at very competitive prices. You can contact us at info@byexpressworlwide.com for additional information. We are always committed and dedicated to the success of your shipments and your entire supply chain.
