These are challenging times for everyone—suppliers and distributors alike. Chinese factories are still in lockdown. Fuel pricing is affecting ocean transport. Airlines that would usually fly over Russia are rerouting to avoid conflict zones. Planning and executing a resilient supply chain is critical. Although the holidays are months away, it’s time to prepare for peak season.
These bottlenecks, along with inflation, will continue to cause higher transportation, labor, and material costs. It’s also likely that there won’t be enough warehouse availability to support inventory associated with the holidays.
Review supply challenges
Preparing for peak season should start with a thorough review of raw material suppliers. Localizing supply could raise costs in the short term, but in peak season, local sources may be crucial for guaranteeing the provision of services to clients.
Globalization stalls every winter that the world experiences a COVID-19 spike, so shippers need to respond to limited movement proactively. By combining production and distribution on the same continent, disruptions can be mitigated.
Increase transit times
Preparing for peak season means ensuring a buffer in increased transit times if and when delays arrive. Look back at the previous peak season: Patterns for lead times and capacity management needs are likely to be similar this year and into 2023.
COVID-19 is a somewhat unknown factor in demand forecasting, but its effects continue. Increase your leads and manage customer expectations now rather than later.
There are many factors shippers can’t control, so ensuring invoices are robustly audited is essential to strengthening supply chain resiliency for peak season. When shippers move hundreds of containers in preparation for holiday shopping, tracking routes and filing claims becomes an increasingly burdensome and error-prone process.
Strong logistics management is necessary for managing the accuracy of freight invoices. It can also determine which partnerships are more reliable than others.
CTSI-Global’s Honeybee TMS allows shippers to manage large contracts and compare rates as they prepare for peak season. When a carrier bills a shipper, the system automatically tracks payments as they are coded and reported. This process of tracking and coding helps shippers recover loss and damage claims and avoid duplicate payments.
Identify reliable carriers
Distributing volume with fuel shortages and limited driver reliability is a challenge shippers experience on a global scale. If a shipper typically only uses one carrier and the carrier experiences a seasonal capacity shortage, the shipper will need to find enough carriers to move their freight.
It’s smart to guarantee access to strong partners early. Relationships with multiple carriers are vital to mitigating risks as you prepare for peak season.
Honeybee TMS can help with carrier selection. The platform provides a load optimization tool that allows for dynamic modeling of shipments, route optimization, and access to over 20,000 carriers.
Real-time tracking also allows for transparent carrier communication and real-time tracking of shipments. When the Honeybee TMS is combined with CTSI-Global’s robust logistics management services and predictive analytics, shippers can prepare for if and when delays arrive.
The time to prepare for peak season is now. Contact CTSI-Global to discuss how your company can build a more resilient supply chain.