The COVID-19 pandemic has created multiple impacts on supply chain activities, which warrants quick re-engineering to meet the change in demand. The key difference between typical disruptions such as hurricanes, earthquakes and COVID-19 are from regional vs global standpoint. Hence, redefining supply chain operations focusing on domestic opportunities becomes crucial. Transportation planning and execution plays a vital role in the SCM.
Supporting supply chain focusing on domestic and international opportunities requires redefining transportation planning, carrier identification, and execution processes. The following are the key challenges to carrier identification, which directly influence the cost of goods sold (COGS) as well as on-time delivery, in turn affecting customer satisfaction.
To overcome the above challenges, the customer has to relook at existing shipment transportation planning and execution. Transportation planning should relook at geography where inbound and outbound operations are performed or have been allowed to perform. Existing planning and consolidation parameters need to be revisited to optimize consolidation, pooling and optimum floor space of the truck. This reengineering will help customers save freight cost during this difficult time and help to keep COGS in a healthy state.
While the customer revisits their transportation planning to achieve consolidation and pooling, the success of this process lies in identifying the right carrier to execute. The pool of carriers presently engaged to support the supply chain may not be able to execute the refined transportation plan due to the non-availability of network, demanding higher price, reduced workforce etc. Hence, the carrier selection process should be relooked considering the following elements:
In conclusion, COVID-19 warrants not only lifestyle changes but also a closer look at logistics operations to keep COGS, customer on-time delivery KPIs healthy.
Senior Architect – Cloud Enterprise Platforms at Wipro
Agathian Sannasi is a Senior Architect – Cloud Enterprise Platforms at Wipro, and is involved in a wide range of consulting and transformation assignments in Oracle Cloud Logistics. He has more than 20 years of industry experience, providing supply chain and solutions in Telecom, Hi-Tech & Manufacturing, Retail and 3PLs. Agathian manages the Oracle Logistics Cloud competency at Wipro and is a certified Oracle consultant. He can be reached at Agathian.email@example.com to discuss more if interested about the solution.