In these uncertain economic times, it might seem daunting to adjust your supply chain. However, with our experience serving over 7,500 retail customers and a global team of logistics experts, we understand the challenges of inflation and other market dynamics. The period before the retail peak season is an optimal time to uncover hidden savings in your supply chain.

Here are three key strategies to consider:

1. Refining Smaller Order Logistics Retailers are increasingly opting for smaller, more frequent orders due to economic uncertainties and a focus on managing inventory levels. Often, retailers depend on their suppliers to manage the logistics of these orders, which can lead to higher costs and inconsistent service levels. A better approach is to collaborate with a single logistics provider that offers fulfilment capabilities and scale economies, thus streamlining the process and reducing costs.
2. Revamping the Supply Chain for Loss Leaders With inflation impacting the cost of goods, it’s challenging to maintain the affordability of loss leaders. While sourcing adjustments might offer limited savings, significant efficiencies can be gained in the downstream supply chain. Consider engaging with a logistics provider that specializes in supply chain engineering to optimize your transportation strategy, potentially reducing costs by utilizing different ports or more effective distribution methods.
3. Anticipating and Preparing for Tightening Trucking Capacity Current market trends indicate a shift towards a balance in trucking capacity, with potential for undersupply in the future. Now is the time to review and strengthen relationships with high-performing logistics providers. Using technologies like Procure IQ, retailers can analyze freight data to identify optimal bidding strategies and align distribution needs with carrier networks. This proactive approach can lead to more competitive rates and avoid the extra costs associated with unplanned freight in tight market conditions.

By employing these strategies, retailers can discover significant savings in their supply chains, even during times of market flux. Leveraging the expertise of a skilled logistics provider and using advanced analytical tools can make a substantial difference in optimizing supply chain operations and controlling costs.