There is a big risk for manufacturers as order cancellations loom large presenting a potential challenge in the near future. Consumerism built on 1-2 day delivery cycles is struggling as consumers look at big-ticket items with timelines pushed 2 to 4 months out. Sourcing locally or foregoing a purchase could slow manufacturing in the next six months.
Raw material and component shortages are forcing manufacturers to re-think their production models, rolling to a build-to-order model with a confirmed inventory of raw materials and components required to produce a finished product.
Sourcing products, components and parts are evolving to mitigate risk exposure. Development of procurement strategies will be needed to evaluate the risk to the supply chain as another key element alongside cost and quality.
Traditionally a mix of non-asset providers delivers small carrier capacity to shippers. The challenge: how to ensure your non-asset strategy is not inflating already higher index rates used to price spot market truckload rates.
Implementing Supply Cycle Design: Managing the supply chain from an end-to-end perspective has to give way to understanding the dynamics of equipment capacity, congestion points and market-rate triggers to embrace resiliency in your supply chain. In addition to the supply cycle, supply chain strategies must encompass a broader view that includes the source and movement of your raw materials, components and finished goods.
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Brad’s journey into logistics began as a Marine Officer and transitioned from the LTL docks to the non-asset side within the logistics service provider arena. As a co-founder of Rockfarm, Brad drives our business development efforts and delivery of our promise. An Arizona native, Brad enjoys spending time outdoors in his home state with his wife and family.
“Our approach to the market allowed us an opportunity to push forward in 2008 and enable our mission, “lower the cost to serve” to stand as a cornerstone to our company today.”
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