LONDON — Manufacturers, retailers and others involved in buying global transport are asking for new services and products as part of their attempts to reduce costs.
“The description ‘value-added’ has been much abused,“ says Anna Warren, Supply Chain Solutions Manager, Virtualized Logistics, “but it is true that there are many potential savings – in reduced inventory and waste, as well as cutting time to market, that the extra services a sophisticated supply chain provide.
“Companies which have been happy to use the basic freight forwarding services to transport their goods are now demanding the cost savings and efficiencies that greater visibility and control can bring.”
Virtualized Logistics, which was set up as a the supply chain consultancy arm of freight forwarder SBS Worldwide, has uploaded a series of Product Guides in its Knowledge Center (http://www.virtualizedlogistics.com/en-gb/knowledge-center/product-guides/) to help freight buyers understand the benefits they can gain from the (extra) services available.
And it goes much further than just visibility, says Ms. Warren. “Some companies are beginning to realize that working with supply chain partners who can, for instance, provide help with sourcing and monitoring the quality of raw materials or bespoke products, will also pay huge dividends.”
The initial advantages of sourcing from countries with lower labor costs can be significantly enhanced through establishing distribution centers in those countries to facilitate shipments direct to destination, rather than using a central warehouse somewhere else in the world.
“We keep finding companies which have taken the huge step of outsourcing production to China and then they do not follow that up by re-assessing their supply chain and looking for improvements there as well,” explains Ms. Warren.
“Some commentators are predicting the demise of sourcing abroad as labor and transport costs rise, but we know that there are many ways we can take costs out of the supply chain to maintain the competitive advantage.”