19 Dec Global Supply Chain Disruptions Highlight Need For Savings
Global supply chain disruptions will continue to challenge Operations, Logistics, Shipping, and Supply Chain leaders in 2023. That’s a key conclusion from an article in Logistics Management magazine which recently published a Supply Chain Disruptions Study.
Remarkably, more than 93% of professionals surveyed agreed that the supply chain pressures of last year will continue well into 2023. What’s their biggest headache? The performance of global freight networks. 92% of companies report they are either always, usually or sometimes a problem. 1
In light of these pervasive global freight challenges, now is the ideal time to connect with SSI. In addition to delays and congestion, one big frustration shippers deal with is carrier billing errors. These mistakes can add up to tens-of-thousands of dollars a month! However, when SSI manages your global freight audit and freight payment services, you can be sure of this: SSI will provide you with substantial savings as you receive a constant flow of carrier refunds worldwide.
Even if you are already working with another freight audit company, we urge you to request a demo of our services. First off, we can perform post-audit verification services to identify savings your current provider may be missing. Plus, we think you will be excited to learn how our process is customized to each customer’s needs.
In addition, what sets SSI apart from many other freight audit providers is that we ensure you recover all the refunds due to you on every freight invoice you receive worldwide. So, your savings will add up fast as we perform a comprehensive service audit of invoices from global, regional and local carriers.
GLOBAL SUPPLY CHAIN OPERATIONS ARE EVOLVING
The global challenges and events of the past few years have pushed 8 out of 10 companies to rethink their overall global supply chain operations. More than half of the respondents to the Logistics Management survey have been moving manufacturing or sourcing closer to home. 2
Mexico appears to be the primary beneficiary of this near-shoring trend. An existing network of manufacturing companies, known as maquiladoras, are already operating and expanding near the US border. The businesses can export the goods they produce to the US duty free.
A recent article in Supply Chain Brain sheds light on how Mexico is actively preparing for this growth. Here is an excerpt from the piece:
“Mexico has ambitious plans to expand its transportation and distribution infrastructure, including the overhaul of two major ports, improvements to the rails and creation of 10 industrial development zones. Included on the agenda is further expansion of the Port of Lázaro Cárdenas, Mexico’s largest seaport.” 3
As global supply chain disruptions necessitate supplier-network changes to meet existing and future challenges, SSI global freight audit and freight payment services are agile and can easily flex or scale to address your real-world needs.
MANY SUPPLY CHAIN COSTS ARE RISING
Even as maritime and air cargo rates drop, other costs are still rising. For example, FedEx and UPS recently implemented record-high 6.9% GRIs. Unfortunately, the vast array of fees, surcharges, zone charges and other accessorials that carriers tack on to a GRI makes it difficult for shippers to know the real-world impact of these costs. Many intelligent people make the mistake of underestimating how a general rate increase will impact their business.
If you have not already done so, request a GRI Analysis from SSI to get a clear view of recent parcel and freight-rate increases.
Another growing expense to prepare for in the year ahead is warehousing according to Prologis, the world’s largest owner, developer, and operator of logistics warehouses. The company recently reported that US warehouse development will fall to a 7-year low in 2023. Why? The higher costs of capital is dampening borrowing and subsequent construction activity. 4
US warehouse vacancy rates averaged just 3.3% last year and are forecast to move up a tad to 4% by the end of 2023. The paucity of space means rents are expected to rise by double digits. 5 Further, as interest rates continue to rise, new warehouse builds may be even less likely to emerge.
Thankfully, SSI freight audits provide a cost-savings solution that offsets these rising supply chain costs.
AS GLOBAL SUPPLY CHAIN DISRUPTIONS CONTINUE, SSI OFFERS VALUABLE SERVICES FOR SHIPPERS
SSI is committed to helping new and existing customers save money and improve efficiencies. Ask about these beneficial services.
- Freight audit services
- Parcel audit services
- Global freight payment services
- Freight rate benchmarking services
- Managed analytics with data visualization dashboards
- Post-audit verification services
- LTL cost management
- Transportation management services
- Service-level optimization analysis
- Claims management
Contact SSI to learn more.
1. , 2. Bridget McCrea, “2022 Supply Chain Disruptions Study”, December 8. 2022, as published by Logistics Management.
3. Robert J. Bowman, “Latin America’s Prospects for Trade and Logistics Development”, December 12, 2022, as published by Supply Chain Brain.
4. , 5. Mark Soloman, “US warehouse development to hit 7-year low in 2023, Prologis says”, December 8, 2022, as published by FreightWaves.