The only thing that’s a given when it comes to gas prices is that they are in a constant state of flux, supplies are unpredictable and therefore new models have to be considered. Companies can be proactive, though, when it comes to their supply chain strategies. It is critical to have a dynamic, rather than static supply chain strategy in a time of rising oil prices.
Annual revenues of U.S.-based 3PL providers are $60 billion, and the good news is that figure is projected to grow, as 3PL providers increase their service offerings. The next logical step from there is for them to improve customer service. As technology continues to rapidly change, 3PLs “must focus on management and relationship processes, global offerings, comprehensive solutions for the entire supply chain and information technology,’’ says Pamela Gabor, group manager, Logistics Sales, at SPS Commerce.
Once an order leaves a warehouse, it’s anyone’s guess what happens to the goods and when they will arrive at their final destination. At least, that’s how it goes for many retailers right now.
I help my buddy Buzz select articles for the Supply Chain Buzz page every week (our motto: “we read ‘em so you don’t have to!”). We review a range of stories and blogs on the subjects of supply chain, electronic commerce, ERP, continuous improvement, and general management. Since there’s a great diversity of jobs, departments, and company sizes among our readers, not all will be on target. However, we noticed a few themes that cut across nearly all jobs and organizations. Let’s take a look at a prominent one: risk.
The world is changing, and consumers’ ability to get information and buy products from their mobile devices anywhere, anytime, is having a trickle down effect on the supply chain—they want their items delivered quickly and at a competitive price. So retailers now have to re-examine how they are sourcing their products and where to get them cheaper in order to bring something more to the table.