2014 is almost over. This is the time of the year when many companies celebrate their numerous accomplishments from the past 12 months. It is also the time of the year when many companies look at their supply chains and notice all of the mistakes that they made. The sign of a good company is to correct these mistakes. Here are three supply chains mistakes to avoid and to fix in 2015:
1) Mismanaging Transportation
To improve planning for shipping, some companies purchase Transportation Management System software. If your company gets this software, it is important to know exactly how the software works with today’s mobile technology and if it improves your supply chain. Keep in mind that better software doesn’t always mean better results.
2) Bad Shipping Services
Supply chains that are looking to cut expenses often begin with transportation. They receive low freight shipping rates and assume that everything is perfect. The problem is that lower rates might mean subpar logistics services. The lower prices could mean that the trucking company might delay your shipment. That is why companies should look beyond a good price and instead seek a good value when it comes to shipping. A lower short-term transportation rate might equate to inventory savings that you are missing out of in the long-term.
3) Expensive Shipping Rates
Likewise, other companies are paying way too much for their shipping. For many supply chains, transportation costs should be under 5%. If you are looking for a better shipping deal in 2015, speak to a trusted freight forwarder. Since freight forwarders work with carriers throughout the US and the World, they can provide outstanding rates for great shipping services. After speaking to them, you will be amazed about how much money you can save with them.