Executive Commentary |
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RK Logistics Group
James Bryant
Chief Operating Officer www . rklogisticsgroup . com
Supply chains deal constantly with a raft of never-ending challenges . Securing quality facilities , hiring and retaining skilled workers , investing in equipment and services , keeping up with rapidly changing technology , controlling costs while delivering quality service , and finally , balancing risk and flexibility .
Supply chains are more fluid and
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subject to change today than ever before , as evidenced by the growth of nearshoring and reshoring as sourcing and production shift from Asia to sites closer to end users in the US . For third-party logistics providers ( 3PLs ) that operate warehouses , it ’ s an opportunity , but also a risk .
Ideally , a 3PL warehouse lease is timed to expire with the client ’ s contract . In today ’ s market , landlords typically demand five-year leases , which also provide the best price . Yet as supply chains shift and relocate more frequently , shorter leases ( one to three years ) are in demand .
Therein lies the problem . Landlords typically won ’ t grant short-term leases . Or if they do , the cost is prohibitive . Yet the downstream partner — the 3PL — must make longer-term investment decisions , such as hiring and retaining people ,
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“ Shippers should recognize that facility leases are a long-term investment partnership with their 3PL .”
James Bryant
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investing in equipment , or building out capacity . And shippers still want flexibility to move at a moment ’ s notice , leaving the 3PL holding the bag for the lease .
It ’ s an unsustainable situation . Now the 3PL must find another paying customer to cover the cost of that lease .
Such short-term decisions also have risk for the shipper . A year down the road , a client may find they still need the space they left , but it ’ s no longer available . So , they are stuck securing space — if they can find it — at a much higher rate than they had previously .
Shippers should recognize that facility leases are a long-term investment partnership with their 3PL . By falling prey to short-term thinking and abandoning that partnership , they are placing an unsustainable and unfair risk on their 3PL .
Samsung SDS
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Shiperone
Sarjak Sheth
Founder www . shiperone . com
Supply chain visibility and predictability will emerge as essential components of competitive advantage in 2025 . In a landscape marked by uncertainty , the ability to monitor and predict movements within the supply chain is no longer optional but a necessity .
Visibility will evolve beyond mere tracking of goods . It will encompass a holistic , real-time perspective across the entire supply chain ecosystem . With advancements in internet of things , blockchain and digital twins , companies will gain insights into every process and partner . This level of visibility will empower businesses to respond with agility , addressing challenges before they escalate into crises .
However , visibility alone is insufficient . The true differentiator will be predictability . By leveraging AI and machine learning , future
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supply chains will expect rather than react . Advanced , predictive algorithms will analyze vast datasets to forecast demand fluctuations , production delays and potential disruptions . This proactive approach will enable data-driven decision-making , allowing companies to reroute shipments or adjust production schedules based on projected market trends .
The evolution of supply chains will hinge on integrating these technologies and fostering collaboration across the ecosystem . Companies must embrace a culture of transparency and trust , where every stakeholder — from suppliers to logistics providers — works together as part of a unified network . Those who can transform data into actionable insights and empower their teams with realtime information will lead the industry .
In a world where uncertainty reigns , the winners will be those who not only see their supply chains but can also anticipate their every move .
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“ Merely possessing data is insufficient . Data must be meticulously cleansed , processed and analyzed to yield valuable insights for strategic decision-making . ”
Kooil O .
“ Those who can transform data into actionable insights and empower their teams with realtime information will lead the industry .”
Sarjak Sheth
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Kooil O .
Logistics Business Division Leader www . samsungsds . com
Recent global events such as geopolitical tensions , natural disasters , labor strikes , etc . have highlighted the need for enhanced visibility and predictability in logistics . Interestingly , “ visibility ” and “ predictability ” are often used interchangeably or without clear definitions due to their inherent interdependence . In other words , having high visibility into a supply chain can enable better predictions about future events , while predictive analytics can increase the accuracy of visibility into the present state of the supply chain . An instance of this is how real-time visibility provides precise knowledge of stock levels in transit and storage , subsequently impacting near-term forecasts .
Nevertheless , it is significant not to conflate these two indispensable components . Viewed in this way , predictability refers to the ability to consistently measure and manage disruptions and uncertainties , enabling effective preparation and response . Visibility , on the other hand , measures a company ’ s capacity to access necessary information about its supply chain operations , providing
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