Choosing Your Supply Chain Strategy

There is little doubt that every shipper understands that their supply chain is critically important to their success. Yet recent research has concluded that 85% of shipping executives would only give their supply chain a rating of ‘average’ or below. Subpar supply chains cause multiple financial and operational challenges since companies need to deal with allocations of critical supplies and management of skyrocketing costs. The question becomes: how can companies develop an excellent supply chain, one that will fuel their growth?

The first step in evaluating your supply chain strategy is to assess whether your company has a transactional or strategic supply chain. Transactional supply chains tend to be focused on always putting out fires. There’s a belief that these supply chains are too chaotic and it’s impossible to ever ‘get ahead.’ Transactional supply chains are also too focused on the cost side of the equation, rather than focusing on the value provided by their supply chain partners. Finally, transactional supply chains exhibit a lack of awareness on their suppliers and customers patterns and how those impact their business.

On the other side there are strategic supply chains which tend to: look at the supply chain holistically, and are able to see how everything works together. They also focus on how the patterns of customers and suppliers impact their supply chain activities. Finally they operate with a proactive ‘fire-prevention’ approach, always evaluating their processes in response to changing market conditions. Now the question is: how can a company become more strategic?

Companies that are more strategic take the time and effort to create a written strategic supply chain and/or transportation management plan that defines how activities are managed and quantifies the investments that must be made to address their requirements. They also have written goals and objectives for their supply chain/freight activities as well as supply chain/transportation Key Performance Indicators (KPIs) that are reviewed on a monthly/quarterly basis. Taking the time to develop, write and incorporate your supply chain partners into your strategy will keep your business strong in the long run and allow your business to achieve incredible performance.

Here at Zip Xpress, we understand the importance of a dynamic supply chain strategy. Our services were designed to help companies meet their objectives and surpass their expectations, no matter the current operating environment. Our level of service and experience can help you devise a supply chain strategy that will help your business grow. No matter what challenge you’re facing, we have a custom carrier solution that will work for you. To see for yourself, start today with Zip Xpress!