Most logistics departments have limited visibility into their transportation capacity needs beyond just a few days of orders. This lack of visibility and proactive transportation planning is a serious risk for logistics because it leaves shippers in a constant state of reaction. Each time there is a seasonal or promotional surge, they are left scrambling to find the capacity they need, often having to turn to more expensive transportation options to get their goods moved, or missing the sale if the goods are not able to make it to stores in time.
Communication and demand sensing and planning is key to avoiding just being proactive in transportation planning. By working with carriers far in advance, brands can grab better rates, ensure capacity and save money on transportation costs.
In this second part of a three-part video series with Sourcing Journal, Gary Barraco of E2open answers questions about how planning and relationships play a big role in whether brands and retailers can accurately time their product deliveries, including:
- How much pressure do impatient consumers place on supply chains?
- What is the solution for retailers and brands to mitigate transportation-related issues?
- How does the lack of planning impact the amount of money spent on transportation?
Want to learn more? E2open’s Transportation Forecasting application can help you reduce costs, improve service levels and relationships with your carriers.