Toward a Simpler Supply Chain
Supply chains have the potential to become too complicated over time with shifting markets, new product launches and promotions. Even the most streamlined supply chains face growing congestion, limited capacity, and fuel and driver uncertainty. Add to that the variability of regional distribution systems, getting the right products to the right place with the right balance of cost and service is a daily challenge.
Often supply chain variability results in mismatches between supply and demand, and may even cause damaged customer relationships. And the longer the supply chain, the greater the risk of variability.
Certain complications in a supply chain are, however, avoidable. ?Much supply-chain variability is self-inflicted, the result of inadequately informed planning and needless complexity in processes, products, and portfolios,? (Harvard Business Review). By creating a shorter, more efficient and more visible supply chain, companies can begin to reduce variability.
So the message is: the simpler the better, and one solution is having fewer and more centralized distribution centers. For example, processors and growers in the western U.S. could consolidate multiple eastern distribution centers into one larger DC with cost-effective reach to customers throughout the Midwest, Northeast Southeast.
With the Hanson Logistics Velocities? Multi-Vendor Consolidation program, these processors can ship via truckload or rail into the crossroads of the central states, and then deliver scheduled orders to customers from there. This win-win strategy leverages Hanson technology, truck fleet and shared outbound to all major DCs.
Increased efficiency, reduced variability?a better and smarter supply chain benefits all who are involved.