07 Apr Supply Chain Disruption Risks Mount
Supply chain disruption risks are a hot topic of discussion amongst C-level executives and their Operations, Supply Chain, Logistics, and Shipping team members. As the US economy shows signs of a robust recovery, enterprises with global and regional supply chains are still navigating through strong headwinds. While the potential for increased revenue growth and higher profits are within reach, a host of supplier network and freight transportation issues are delaying critical goods that impact production, distribution, and sales.
SUPPLY CHAIN DISRUPTIONS PROLIFERATE
The recent Suez Canal fiasco intensified an already colossal global supply chain stressor: shipping delays.1
In fact, companies have been grappling with freight delays and supply chain disruptions since the Covid-19 outbreak began. As cargo demand gyrated a year ago, ocean carriers continued to cancel sailings even as Asian factories were kicking back into gear. Further, an imbalance in container availability led to box shortages and port-congestion issues worldwide that continue to this day.
Currently, tens-of-thousands of containers laden with goods are stuck offshore. Since January 1st, more than 30 container ships per day have been anchoring in Southern California’s San Pedro Bay, awaiting berths in the ports of Los Angeles and Long Beach.2
Ironically, even as freight transportation service deteriorates, shipping costs are increasing.3 Businesses are getting hammered with higher contract and spot rates for ocean, air, trucking, rail and parcel shipping. Because of this, many North American business leaders anticipate that a resurgence in reshoring is likely.4 Yet, for most companies, a drastic change to their supplier network will take time.
Amidst these and other supply chain disruption risks, freight audit services from SSI help you save money as we verify that your global freight carriers are delivering on their contractually obligated promises.5
SSI FREIGHT AUDIT SOLUTIONS PROVIDE VALUABLE SAVINGS
For global shippers, across all modes of transportation, SSI applies a thorough, automated freight audit process. As you effectively manage supply chain risk, there are 4 key benefits from SSI that are relevant to you.
- Customization – Our freight audits are custom-designed to meet your unique shipping requirements. Further, as you adapt your supplier or transportation network to address supply chain issues, our freight audit solution scales and adjusts to your dynamic business needs.
- Verification – SSI performs a comprehensive audit of each freight bill across all modes of transportation used in your global supply chain. Our methodology ensures that all charges are in compliance with the established rules and contractually agreed-to parameters within your carrier contracts.6 Validating the rate charged is essential and of course, so is verifying whether the charge itself should have been assessed in the first place.
- Savings – Our time-proven solutions help many SSI clients recover tens-of-thousands of dollars in audited savings every month.
- Data Insights – Managed analytics resources provide data visualization dashboards to help you glean actionable data insights for peak operational, supply chain, and financial performance.
The costly risks associated with supply chain disruptions can be mitigated as you recover significant savings with SSI freight audit solutions. Please fill out the form on the bottom of this page or contact SSI to learn more.
OTHER SERVICES FROM SSI
SSI is committed to helping our customers save money and improve efficiencies. Ask about these other valuable services available from SSI.
- Global freight payment services
- LTL cost management
- Transportation management services
- Service level optimization analysis
- Claims management
- “Suez mess adds to global economic, supply-chain stress”, March 29, 2021 as posted on Supply Chain Brain.
- Greg Miller, Senior Editor, “Demand boom on collision course with ocean transport ceiling”, April 2, 2021 as published by American Shipper.
- Zach Strickland, FreightWaves Market Expert & Market Analyst, “Transportation costs keep rising as service deteriorates”, March 27, 2021, as published by FreightWaves.
- “Do you expect a resurgence in reshoring to the United States? Why or why not?”, February 28, 2021 as published by Inbound Logistics.
- & 6. Note: Excluding carriers that do not allow audits on select services.