2017 Is Coming (Here’s Your Supply Chain Prediction)

“According to a recent study, the top issues concerning global supply chains next year will be shorter lead times, time to deliver and risk minimization.

In the Global Trade Management Agenda 2017, a survey from AEB, 72.9 percent of experts surveyed consider the trend toward faster and faster speeds to be an important or even very important challenge in the coming year.” –SupplyChainDigital.com

 

    I agree with the above view. I think that SupplyChainDigital and AEB nailed a bulls eye with this prediction. We are in a state of high-risk logistics and lower turnover in outbound and inbound Supply Chain practices. The reason being that there is more volume via eCommerce rather than Brick and Mortar. So why high risk on logistics and slower turnover? One word, Production. Companies are now having to produce goods either in house or by 3PLs. In addition, goods have to be shipped.The turnover is one dimensional in a Brick and Mortar as goods are already produced.

       Companies are now looking to budget more money toward production costs and freight costs so that service level is maintained. Those costs in 2017 could be toward Technology, Packaging, and or Freight Optimization. This will increase speed and efficiency.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s