Results of “New Normal” Supply Chain Service

A recent article in Chain Store Age reported the results of a survey for 3PL provider GlobalTrans, and authored by Edelman Data and Intelligence.  They surveyed 200 US based supply chain leaders on what they considered the “New Normal” to be.  The results were very interesting with over 90% of the respondents claiming they were convinced that their 3PL partners will effectively meet their needs in 2021. The respondents also felt that the latest Federal Government Stimulus packages, would benefit their operations and revenues.

While these comments were certainly positive, there were some results however that were not as positive.

• 37% were sure they would be dealing with higher transportation costs in 2021
• 31% were concerned that they would have workforce challenges to meet their customer’s demands
• 24% reported that poor handling of home deliveries will remain a challenge in 2021
• 76% claimed they still have concerns that their small package carriers will continue to struggle with on-time deliveries
• 33% of respondents felt that their top concern was ensuring they have enough inventory on hand to meet their customer’s demands

To be perfectly frank, we were a little surprised with at least one of the survey results.  How is it possible that only about a third of respondents believe they will be dealing with higher freight costs in 2021.  As of today, we continue to see shipping expenses on the rise with really no end in sight.   Are these companies a little over-confident, and if they are, will they be facing the music with their “C” level executives if they are severely over budget at year end.

Our advice to all supply chain executives is to keep a close eye on shipping expenses and don’t take anything for granted.  Continue to test the market and look for alternative service options, even if there is no intention to change service providers.  Knowing the market each and every day of the year is critical for every supply chain executive.  Seek expert advice from logistics consultants that have the ability to benchmark a company’s current expenses against other competing businesses.  This is an exercise that just cannot be successfully accomplished with merely in-house resources.

Need help keeping a close eye on your shipping expenses?  Consider reaching out to us today to learn more.