Supply chain leaders are under immense pressure as yesterday’s opportunities are today’s challenges fueled by growth fluctuations in customer demand, sourcing changes and tariffs. Supply chains are required to be increasingly faster, more responsive and more resilient. Veritas Sourcing can help you answer the questions of cost service and risks while enabling you to build a more responsive, adaptable and intelligent supply chain.

Freight spend has risen substantially over the last few years for small businesses. Navigating the constantly changing freight and logistics market can be more intimidating as well as more expensive than you might think. However, it doesn’t have to be. Here are five ways that any small business should take to make sure they are fostering the most efficient supply chains and logistics practices.

Technology adoption

Technology is important to be able to review and improve your supply chain. If you’re not using some form of transportation and shipping software to track freight spend shipment timing and warehouse inventory then this needs to be an immediate priority. Without strong data analytics, it is difficult to create process improvements in your supply chain. Shipment tracking is also critical to your logistics plan because it allows you to quickly and easily let a customer know when an outbound load will arrive. It is also crucial to inform the expected inbound shipment date to your warehouse and dock team.

Supply-side spend can add up

Often companies let their suppliers handle the inbound freight. The cost of shipping is considered part of the purchase price of what they are providing. Although it simplifies the process, it also leaves the opportunities to improve efficiency at your Freight docks and inbound freight. Discuss with your suppliers and logistics providers about the costs involved in routing your inbound Freight. If there is substantial cost savings present, start a trial moving some of your inbound Freight. Then gradually, expand this as your inbound Freight processes.
Warehouse inventory Levels

Inventory holding cost and the amount of capital that has tied up in inventory can add up substantially. There are several warehouse and inventory management software tools available. Implementing them will provide you with the data you need to make the appropriate changes. As you analyze data you’ll realize it is more efficient and cost-effective to house inventory in smaller quantities at several warehouses instead of keeping it all in one central location.

Balance of modes

At times, companies overly rely on a single mode of transportation for their freight but this overlooks the efficiencies of alternative modes. While many small businesses rely heavily on over the road trucking, Intermodal is another option. Intermodal shipping will have a 10-20% of cost reduction over long haul trucking. Another advantage to moving a portion of your freight via intermodal is guaranteed capacity. A robust supply chain is built in a diverse group of services and carriers so if there is an issue in one mode, your business is still able to function.

Robust processes

Small businesses don’t always emphasize the use and development of processes throughout their business development. Logistics is an important aspect of business and a significant one when the inevitable issue arises. The most basic way to build a logistics process is to simply document each step you take for both inbound and outbound logistics. Periodically review these processes with the data you collect from step one.

Implementing these five methods will enable you to continually improve your supply chain and freight movements. A great proportion of the company’s revenues is spent on their distribution and transportation costs, changes in suppliers, business growth and customer demand. Veritas Sourcing will help drive a successful optimization solution from sourcing to manufacturing to customer delivery. Veritas Sourcing is playing its part in shaping the future of supply chains. We work diligently to gain a deep understanding of products and services and we look beyond technology and logistics to understand what matters.