Changes in consumer behavior are having an effect on how consumer product manufacturers and retailers manage their supply chains.
More than ever, consumer product manufacturers and retailers need to rely on transportation logistics to meet the ever-changing requirements of customer-focused industries. Without adjusting to the broad-sweeping changes affecting supply and demand, many companies risk the loss of customers, profits, and competitiveness within their industry. Striking the perfect balance between managing costs, delivering on-time, and providing fulfillment services requires a multi-pronged approach through logistics and distribution. Often, meeting fulfillment demands means leveraging the abilities of a third party transportation company.
Risks Threatening Your Supply Chain
The only way to mitigate logistical transportation risks is to recognize which risks can threaten control over your operations.
Utilizing global production and distribution networks directly affects your competitive position within your industry. Although capitalizing on reduced manufacturing costs abroad increases profit margins, transportation logistics for consumer product manufacturers can easily become complicated due to extended lead times associated with production.
Shipment delays can be avoided by working with third party logistics and distribution companies. These companies employ a suite of logistical transportation solutions including:
- Bulk distribution and consolidation
- Cross-dock service
- Foreign trade zone
- Land, air, and water transportation
Adjusting to shifts in demand is always a priority for senior management within any retailer. With more customers becoming increasingly less loyal to brands and more focused on peer reviews, predicting sales volume for your business is becoming more difficult.
By utilizing the warehouse management of a transportation logistics provider, you can maximize your product life cycle so that your products are readily available when they are highly demanded. These logistic and distribution strategies are scalable, allowing you to adjust your supply chain when the demand for your products changes.
The growing consumer desire for personalized products means that every new product, product differentiation, or change in the delivery of a product affects your logistics. In fact, if you do not manage your supply and demand, mass customizations can erode profit margins and threaten your product portfolio’s competitive advantage.
The solution is to incorporate more technology to streamline logistics and distribution. Logistics technology allows businesses to capitalize on mass customizations by reducing communication costs. Customer service remains your core focus, but it becomes easier to manage.
Understanding savvy customers is critical in the world of transportation logistics for consumer product manufacturers. Armed with tons of information they learned on the Internet, many customers make purchases only after thoroughly researching their options.
Oftentimes, how and when they receive their purchase affects whether they will purchase from you now and in the future. Delays in delivery are not simply only unfavorable, but with the power of social media platforms, they become public news as customers broadcast their problems with their package.
Using a third party transportation logistics company to manage all of your shipment needs allows you to decrease delivery times and eliminate complex logistics.
How to Circumvent Logistical Transportation Risks
There are numerous threats to your supply chain that can negatively affect your bottom line. Fortunately, mitigating these logistical risks is possible by utilizing the services of RCX Solutions.
By partnering with RCX Solutions, you can utilize strategies that transform your supply chain from end-to-end. Contact RCX Solutions to learn more about our transportation logistics management options that can fit your manufacturing or retail distribution needs by calling 866-336-9697 today.