Executive Briefings

Parcel, LTL Freight Shipping Seen as Key to Successful Supply Chains, Survey Finds

Views of parcel and LTL freight shipping have been elevated in the minds of supply chain executives, according to a survey released by Kewill.

In the past, these were perceived as having little strategic importance in the overall demand-driven supply network. But today, difficult global economic conditions are driving companies to maximize their operational excellence and step up their customer service levels, putting supply chain firmly in the spotlight. Parcel and LCL shipping is now being viewed as a strategic component of the supply chain, and excelling in execution an important contributor to overall business goals.

But despite the increased need to execute shipping flawlessly, many companies are still managing many aspects of their shipping processes manually, increasing the possibility for errors and delays. For example:

"¢ 44% are still manually entering data for all of their shipments.

"¢ 30% manually review their paper invoices to prepare for carrier rate negotiations.

"¢ 33% are managing trade compliance manually.

"¢ More than a third of respondents are using manual processes to screen for restricted/denied parties and embargoed countries.

"¢ Nearly half of respondents manage license determination for shipments manually.

According to Aberdeen's November 2011 study, Global Trade and Supply Chain Management: The Global Imperative, on-premise or on-demand software from a global trade management solution provider is an important enabler for global trade management, and is most likely to be used by best-in-class supply chain organizations. Best-in-class organizations are 1.4 times more likely than others to automate government reporting and 1.9 times as likely to automate security regulations/programs such as AEO.

Supply chain management is not going to get simpler; the longer these shippers persist in maintaining these manual processes, the farther they fall behind those leveraging technology. A careful assessment of the gap between current capabilities and the best practices described in this report is a valuable first step toward attaining the world-class capabilities essential to meet the demands of today's high-pressure supply chains.

Source: Kewill

In the past, these were perceived as having little strategic importance in the overall demand-driven supply network. But today, difficult global economic conditions are driving companies to maximize their operational excellence and step up their customer service levels, putting supply chain firmly in the spotlight. Parcel and LCL shipping is now being viewed as a strategic component of the supply chain, and excelling in execution an important contributor to overall business goals.

But despite the increased need to execute shipping flawlessly, many companies are still managing many aspects of their shipping processes manually, increasing the possibility for errors and delays. For example:

"¢ 44% are still manually entering data for all of their shipments.

"¢ 30% manually review their paper invoices to prepare for carrier rate negotiations.

"¢ 33% are managing trade compliance manually.

"¢ More than a third of respondents are using manual processes to screen for restricted/denied parties and embargoed countries.

"¢ Nearly half of respondents manage license determination for shipments manually.

According to Aberdeen's November 2011 study, Global Trade and Supply Chain Management: The Global Imperative, on-premise or on-demand software from a global trade management solution provider is an important enabler for global trade management, and is most likely to be used by best-in-class supply chain organizations. Best-in-class organizations are 1.4 times more likely than others to automate government reporting and 1.9 times as likely to automate security regulations/programs such as AEO.

Supply chain management is not going to get simpler; the longer these shippers persist in maintaining these manual processes, the farther they fall behind those leveraging technology. A careful assessment of the gap between current capabilities and the best practices described in this report is a valuable first step toward attaining the world-class capabilities essential to meet the demands of today's high-pressure supply chains.

Source: Kewill