During this time of continued market instability and uncertainty, warehouse managers and supply chain directors seek a more reliable method of improving fulfillment resiliency. Innovative tools, technology, and improved managerial processes bring the focus back to diverse carrier networks and better warehouse asset management. Having more reliable options usually translates into enhanced returns in the transportation and shipping industry. Proper warehouse management is critical for supply chain adaptability.
Diverse freight carrier networks and warehouse assets can significantly boost fulfillment resiliency. According to Boston Consulting Group, a recent study on supply chain resilience analyzed “1,800 US companies from 1995 to 2020, assessing their resilience by measuring the relative total shareholder return (TSR) of each company as compared with the average of its industry during crisis quarters—quarters in which that industry’s TSR saw a peak decline of at least 15% from the start of the quarter.” During periods of stability, the average TSR sat around 16%, but TSR doubled to 30% during the crisis. This clearly indicates that resilience amounts to more profitability, but it’s equally important to understand why a diverse freight carrier network amounts to fulfillment resilience.
Diverse Freight Carrier Network Can Absorb Demand Shocks
Proper management and warehouse asset utilization enable a diverse freight carrier network to adapt to and roll with shocks and disruptions. Resilient companies do this by relying on built-in buffers and strategic inventory planning. Responding to disruptions by shifting modes, moving to other transportation methods, or shifting carriers can keep the supply chain moving even during highly volatile markets.
A Diverse Carrier Network Reduces Delays in Drayage
Proper management of warehouse assets can help improve services at the beginning as well as the end of the transportation process. Keeping a diverse carrier network on hand allows for faster response times and greater adaptability when additional shipping services are needed to handle drayage and other specialized transportation situations.
Nearby Warehousing Lowers Turnaround Time to Reduce Stress on Ports
Warehouse assets can also take the form of the actual warehouses and their location. Utilizing storage near major ports and distribution hubs can significantly lower turnaround time to improve the flow of goods into and out of ports. This reduces the stress on the local ports and can go a long way toward avoiding bottlenecks and delays. Detention and demurrage fees also become less frequent with proper warehouse management.
Diversity Safeguards Against the Uncertainty of Many Types of Disruptions
Protecting and managing warehouse assets empowers management to be strategically preemptive in mitigating or even avoiding the many types of disruptions that are common in modern supply chains. These uncertainties include theft, counterfeiting, cybersecurity attacks, extreme weather impacts, government regulations, local conflicts and civil unrest, trade disputes, man-made disasters, economic crisis, and more.
Centralized Control and Collaboration Reduce Stress Too
Rather than onboarding multiple systems and bringing them under one unifying platform, a centralized platform for warehouse control and collaboration can make things much easier and more streamlined. Utilizing a single freight broker to handle short hauls and manage warehouse assets in one central service can reduce stress and improve overall performance and workforce efficiency.
Reap the Rewards of Fulfillment Resiliency by Choosing the Right Transportation Partner
For years, the primary focus of warehouse asset management was on eliminating redundancy and promoting efficiency. However, greater fulfillment resiliency often reduces flexibility, adaptability, and scalability within the supply chain network itself. Now managers seek to avoid that tradeoff, using innovative capabilities and technology to focus on diverse carrier networks and better warehouse utilization to improve responses to disruptions and volatility. It’s a difficult balance to achieve, but the benefits can add significant value to the supply chain during times of normalcy and significant disruptions. Contact PortCity today to learn more and reap the benefits of having the right transportation partner.