5 Ways to Conquer Supply Chain Chaos

5 Ways to Conquer Supply Chain Chaos

It’s like deja-vu all over again: just as the supply chain industry is anticipating a recovery from the last two years of pandemic-fueled chaos, another storm could be forming on the horizon. China is locking down to prevent the spread of COVID-19, and the combination of its clogged ports and shipping delays with the war in Ukraine poises the industry for yet another summer of uncertainty.

At KINEXO, we know change is inevitable and constant. We go beyond the basics of supply chain efficiency and build agility and responsiveness into our customers’ supply chain strategies to support their overall business objectives.At the end of the day, companies must learn how to swim in the current or risk drowning.

We’ve identifiedfive ways to help our customers survive– and even thrive–any storms ahead:

1. Work smarter.Our customers have to address rapidly changing consumer demands and evolving tastes. This evolution will present serious challenges to supply chain teams not equipped to handle such complexity. Supply chain companies must find the ability to manage even the most challenging market conditions. Supply chains will rely more on positioning inventory in strategic locations to take advantage of production runs, reduce response times, and improve supply reliability.

2. Embrace “Co-op-etition” -or in this case, the commingling of freight, is a tactic we’ve encouraged in the last few years, as it helps offset capacity issues and leverages costs at the same time – advantageous for all parties. I expect to see more chains willing to explore this, as it is an effective supply chain strategy for appropriate customers, products, and routes.

3. Strengthen Relationships. We’ve seen success in relying on dedicated fleets in specific markets. Companies must be able to rely on certain counterbalances: ours is our deep and long-standing relationships with the nation’s most respected carriers. These relationships allow us to explore new initiatives with confidence while ensuringwe uphold regulations.Having a vast network of trusted carriers means expanding this model and ensuring reliability for over-the-road lanes, knowing when to pivot from the spot market and contracted freight lanes.

"Companies must learn how to swim in the current or risk drowning"

4. Invest in Innovation.Because we believe they are paramount to the success of our supply chain strategy, we invest in the industry’s most advanced technology offerings, giving us the data we need to consistently provide customized supply chain solutions for our customers. The speed of insights and transparency are also critical drivers of our technology strategy. Our proprietary customer portal allows customers to receive up-to-date information on their business so they can quickly act on market trends.

5. Trust in your Teams. Technology and an abundance of data only go so far – the foundation of KINEXO’s business success is our team of experts who can interpret and act onboth. Our network engineers, strategists, and analysts are a knowledgeable and trustworthy team. They work closely with our forward-thinking customers to take their data and transform it into tailored programs that fit their needs and drive results.

The global health crisis had a massive impact on the way businesses operate, some of which is still yet to unfold. Rather than fighting against it, supply chain companies are better going with the flow of change.

ABOUT KINEXO

KINEXO strategically propels companies forward by providing highly customized supply chain solutions proven to reduce costs, improve transparency, maximize operating efficiency, and increase profitability. Part of the Berkshire Hathaway portfolio of companies, KINEXO is one of the most trusted partners in supply chain management. For more information, visit gokinexo.com.

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