Headload Service

The Hidden Costs of Damaged Freight

Every shipper, receiver, and carrier will be affected by damaged freight at some point in time. While it may seem like you simply need to replace the damaged product and move on, there is more to it than that. Lost product is not the only cost that is incurred when a shipment shows up with damage. In fact, there are several ways that damaged freight can be financially harmful for everybody involved in the supply chain.

If a replacement is required, manufacturers incur the costs of making new product and shipping it to the destination. The receiving warehouse will lose funds since they will be unable to sell the damaged product. All of these coordination efforts require the attention of customer service reps and warehouse workers, consuming hours to replace an order rather than make new sales. Employees need to be paid, and that lost productivity is has a hidden cost as well. Whenever a product shows up damaged, the multiple steps taken to replace it take time away from other more pressing tasks. Even if a company employs OS&D specialists, they are spending money for the sole purpose of fixing issues that arise from lost or damaged freight, not with generating revenue.

In addition to the traceable costs incurred from shipping damage, there are even more hidden costs in the form of relationships. One damaged product can often be forgiven, but if it is a regular occurrence, customers will start blaming the carrier or the manufacturer. Whether they believe it is due to poor packaging or subpar equipment, they will begin to question if it is worth the effort to maintain the relationship. This lost trust can lead to a customer switching to a competitor, and the attrition will hurt any company’s bottom line. This is why it is so important to minimize damage and to have a solid, efficient process to follow when the inevitable problems occur. To see how we can prevent damage with your next shipment, get started with Zip Xpress today!

manufacturing shipping

Handling Mergers and Acquisitions in the Supply Chain

One of the biggest trends we’re seeing in the manufacturing industries is an uptick in mergers and acquisitions. When one company acquires or merges with another, it has a significant effect on the employees, departments, and strategies of both organizations involved. It is important for these companies to have a solid plan to seamlessly integrate their supply chain operations. Each entity brings with them different techniques, responsibilities, and even corporate cultures. The executives and employees alike must do everything they can to work together during this newly formed partnership in order to maintain order and continue to provide high levels of customer satisfaction.

Supply chain managers need to be involved in every major decision during the merger or acquisition process. They need to be aware of any change in organizational structure or strategy so that they can work to streamline their operations and explain the changes to their employees. It is imperative for supply chain workers to get to know the processes and systems with which they will be working. Even if both companies previously operated with the same supply chain software, there are bound to be differences in culture and requirements between the two. Employees from both companies should be trained on what to expect and the changes that need to be made moving forward. Zip Xpress prides itself on being integrated with this process, as we work so closely with our customer’s supply chain that we can develop a standardized process between the two entities and bring them together as one.

Customers should also be kept in the loop throughout the entire process. It is the responsibility of the supply chain manager to let their customers know that there are changes being made and that the organization is doing everything in their power to keep things running smoothly. However, it is likely that mistakes will be made, and it is better for a customer to be prepared for these rather than being blindsided or left in the dark. Mergers and acquisitions can cause confusion, delays, and even chaos for both the shipping team and customers, so communication is key, and teamwork needs to remain a central focus throughout the transition. We know the importance of collaboration and communication here at Zip Xpress, and we can provide the stability you need to guide your business growth. To see how we can help you navigate your growing supply chain, get started with Zip Xpress today!

supply chain talent

The Importance of People in the Supply Chain

As technology continues to progress at record paces, people are beginning to worry about their own place in the workforce. Robots have taken over certain manufacturing jobs and computers are beginning to take over in the service industries. Those who work in logistics have expressed concern about technologies such as self-driving trucks and rideshare programs. These are valid concerns, but the truth is that people are always going to have a place in the supply chain and are vital in developing and maintaining relationships.

Logistics is an industry that has always adapted to change, and newer technologies will never change that. In fact, there will be even more opportunities for humans in logistics as we begin to harness the power of these technologies. Someone will have to maintain the newer, more advanced trucks, and people are always going to have to interact with the customer. No matter how far artificial intelligence comes, it will never replace the value that an experienced professional person brings to the table. Vendors, suppliers, and customers all value the relationships that they have with each other, and robots are not going to change that. At Zip Xpress, we understand that these technologies are designed to assist on the delivery end, and that nothing can replace the keen eye of a well put together dispatch board. Everyone in the company knows about every shipment, and every single person can provide a customer with a quote.

Instead of worrying that computers are going to take over our positions, we should ask ourselves what we can do to maximize our presence in the supply chain. Technology should be seen as a tool to help us become more efficient, not as a threat to our livelihood. If we can use technology to improve our personal relationships with our customers, then we are taking a step in the right direction. Logistics professionals should not make the mistake of letting computers take over for them, instead they should be using these technologies as supplemental devices that are simply there to let humans focus on our most important tasks and ideas, like figuring out how to make an impossible shipment happen for a customer. To connect with one of our human experts, get started with Zip Xpress today!

Zip Xpress

Wishing You a Very Happy 4th of July

It’s that pinnacle time during summer where we celebrate our independence. As you enjoy fun in the sun and backyard barbecues, we hope that everyone has a safe and wonderful holiday. Remember all of those who have helped make this country great as we celebrate the birth of this wonderful nation!