Should you say “yes” to every request a customer makes? Yes. No. And maybe. That’s crystal clear, right? In truth, it really depends on the customer and their individual demands. The key is in knowing your customer and knowing your own operations. Perhaps you can support the customer’s demand now or with only a few minor adjustments. Either way, can you confidently provide the return on investment in executing on the request? Because increased distribution sales without increased profit rarely works out in the long run. Sometimes you may need to say “no.”
Today, distributors are faced with greater complexity challenges — coupled with increase in delivery speed and constant market changes — and it is easy to see why paper-heavy or unintegrated systems don’t stand a chance in dealing with the many forms of complexity.
In order to take on greater levels of supply chain distribution complexity and build greater profits as a result of added capabilities, you need the ability to identify the true cost to serve your customers. With the right data that strategically supports the requests, you’ll then find yourself being able to confidently tell more of your customers, “Yes, I can.”
Tecsys, a global provider of supply chain solutions, is sharing four reasons why you should embrace complexity in your operations and three things you need to do it successfully.
Two days. Next day. Free delivery. Free returns. Total visibility. Perfect order. Cost stability. Unpredictable order mixes. Last mile. Omnichannel. Anxious yet?
3PLs face these competitive pressures due to higher customer expectations, higher costs and lack of available people, transportation and space resources. As Mark Richards, vice president at Associated Warehouses said, “At AWI, our consortium of 3PLs has been seeing labor and space constraints leading to more 3PLs embracing automation.”
The good news is that many clients are looking for longer-term 3PL partners rather than just temporary relief valves. However, being a longer-term partner means 3PLs have to up their game to provide greater responsiveness, visibility and accuracy while being cost competitive. Oh, and 3PLs need to do that while trying to serve multiple types of customers with variations in competitive strategies. Bruce Welty, CEO of the 3PL Quiet Logistics, said that, “Technology is changing everything, but the inertia for many companies makes it difficult to shift from the push driven world to one that provides constant change in order mix by the minute.”
Tecsys, a global provider of supply chain solutions, is sharing are six reasons why 3PLs need to embrace technology in order to gain, retain and even delight customers.