The Supply Chain is a wonderful thing; it sits behind the efforts of all companies from the smallest to the largest and attempts to make the company look great in the eyes of the customer.
It is unassuming and often considered just a ‘cost’ of doing service. Yet, without a good supply chain the whole purpose of a company can fall apart or it may just be pushed to the wayside, not by its competitors as many assume and suggest but by its customers!
Whether you are a large company or a small one, if you use freight carriers you need to be reviewing the price you are charged and the service you receive on a regular basis. Best case scenario: this would be happening with all your suppliers.
Carriers, as with most suppliers, will over time become complacent, the service you are receiving slowly gets behind the rest of the market and your costs as a percentage of sales are not as good as they once were.
A review of your suppliers and a comparison with the market will tell you how much more you could be saving; then again it could also show you how much you are already saving (although this happens a lot less).
In my blog, I will explain the steps you too can follow to improve your costs and service.
This process can be informal by just requesting a quote or formal, using a detailed RFP process. Either way it is about stopping the leakage, it is also about improving the relationship you have with your service providers. So until next time, start reviewing what information and history you have now or where you can get it from.