Author: Paul Tessy, Senior Vice President, Purolator International
The global pandemic continues to drive uncertainty throughout supply chains, resulting in trade restrictions, supply shortages, logistics capacity constraints, and fluctuating demand for companies. These trends will continue to plague manufacturers and retailers as they struggle to secure raw materials, transport finished goods to customers and consumers, and manage unpredictability in the marketplace. The ability to leverage logistics partners that can deliver your time critical shipments will be an important element to combat that uncertainty.
There are many examples of the challenges that manufacturers face when sourcing raw materials and base components during the pandemic. With numerous companies relying on just-in-time processes to build efficiencies in their supply chain, missing one part of that puzzle can have significant consequences. The most obvious example is the lack of microprocessors available to industries such as auto manufacturing and consumer electronics, which has exposed critical vulnerabilities in their supply chains.
Currently there are record backlogs at several US ports, especially the ports of Los Angeles and Long Beach, California, due to surging demand for imports. These two ports alone are responsible for 40% of imports into the US so there has been a bottleneck effect on rail transportation which extends transit times on top of a stressed network. The knock-on effects of these situations extended lead times which directly impacts pricing and customer satisfaction.
Maintaining strong relationships with suppliers and managing expectations with customers in a proactive way can be an important step to handling this uncertainty. Understanding operational processes and having flexibility in the supply chain to acquire certain elements of production considered mission critical can also be a boon for companies. In fact, a survey conducted by Bain & Company found that 53% of companies are “planning to increase investments in flexible operations.” Meanwhile, 56% say they expect to increase investments in predictive planning and demand forecasting.
Like acquiring raw materials, getting finished goods out to customers and consumers can be challenging these days. Getting goods to market requires that same flexibility in the supply chain, including partnering with solution providers that can adapt quickly.
An outcome of these trends is a clear need for more premium, rapid transportation service options to minimize the impact of business disruptions. Companies are increasing their use of expedited services and incorporating them into existing supply chains as a planned feature and not just an emergency tool. Services like Purolator Mission Critical, which combines existing networks as well as off-network resources, provide ultra-flexible ultra-fast solutions that can be adjusted as conditions warrant. These options include bypassing congested regional hubs and going directly to an end destination using the fastest available air routings. The dedicated Mission Critical teams use state of the art technology to ensure maximum visibility 24 hours a day, including weekends and holidays. For industries like healthcare and industrial product manufacturing and distribution, there is no substitute for the efficiency and peace of mind provided by this level of service.
This uncertainty we are seeing in current market dynamics isn’t going away any time soon; companies are quickly learning and adapting to value flexibility and partners who can adjust with them. Selecting a logistics partner that can reliably provide a broad range of express services is vital for success, no matter what new disruption awaits us.
For more information, please visit https://www.purolatorinternational.com.