As we approach the holiday season, the supply chain disruptions that have plagued most of the world for the better part of two years have gone from industry news to front-page news. And everybody has the same question: how are we going to get the supply chain back on track? From what we know and see as a third-party logistics provider, the solutions won’t happen overnight, but they may be far-reaching enough to prevent a crisis like this from happening again in the future.
For consumer-packaged goods (CPG) companies, efficiency is the name of the game. Your online customers expect faster delivery, while your retailer KPIs continue to multiply and grow in importance. Understandably, many CPG companies struggle to keep up with these increasing demands. In this article, we’ll examine where many companies are falling short, and show you how third-party logistics providers (3PLs) can be invaluable allies in overcoming CPG supply chain inefficiencies.
If you’ve been following operations at the Ports of Los Angeles and Long Beach in recent years, the trend looks something like this: the Ports continually break new volume records, truck turn times remain high, and officials vow to speed things up. The calls for speed reached a fever pitch in Q1 of this year as freight piled up at the Ports in the wake of U.S.-China tariff announcements. Fortunately for shippers, enhancements are in place to speed container drayage in Los Angeles and Long Beach now and in the future.
Many companies will choose to have their ocean carrier perform “port-to-door” drayage services. While this approach may be convenient, it can also be detrimental to your port-to-market distribution speed as it’s easy to become a small fish in a big ocean carrier pond. When you turn to an asset-based carrier such as a 3PL provider for drayage, its assets are as good as yours.
There’s a new supply chain mantra in the post-Amazon era, and that mantra is SPEED.
Whether you are delivering to retailers or consumers, or both, customers want products faster in a more predictable time window.
If you import from Asia, your company has made a strategic decision to lengthen its supply chain to lower actual product costs. While you can’t control this decision, you can control how goods are transported and what happens once a container hits U.S. shores. It’s here that you can make a real difference to your company’s financial health by reducing supply chain cycle time and shrinking the cash cycle.
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