The uncertainty of today’s supply chains tends to pressure buyers into accumulating replenishment inventory as a protection mechanism against supplier’s wavering fulfillment, lead time, or information.
If you are the logistics manager responsible for keeping a production line running, your stocking and replenishment strategy will be heavily influenced by the dependability, timeliness, and quality of the information you receive from suppliers. The same holds true in retail.
While many companies have implemented systems to manage their outbound-to-customer fulfillment, managing inbound-from-suppliers is more complex. This is because fulfillment occurs at the supplier’s location, and the supplier normally manages the carrier relationship – plus, there is no in-process status reporting.
Reduce Cost Through Freight Management Services
Sourcing to experienced freight managers is one proactive method to help keep your replenishment orders and outbound shipments flowing on time. Freight management is as much an inventory strategy as it is a transportation strategy. We keep an eye on inbound, identifying any supplier delays before they shut you down. On the outbound side, the Wavepoint team will optimize loads and, route planning and load tendering for potential savings of up to 40%. In addition, we’ll increase your trailer optimization and reduce your billable carrier miles. As a transportation buyer moving high freight volumes, Wavepoint 3PL has excellent buying power in the carrier marketplace.
- We’ll make it simple from the private TMS portal to your point of contact.
- Our negotiated rates are often lower than most smaller shippers can hope to achieve.
- You’ll have transparency into rates, capacity, carriers, and documentation.
- All modes: inbound, outbound, multi-temperature, parcel, standard, expedited
- All services: from rating to scheduling, track and trace, exceptions, and audit
Save Costs and Time by Controlling Inbound
Buyers often schedule receipt just prior to the need for the material they ordered. If the order is late or incomplete, taking corrective action is significantly more difficult when the time to react is short.
There is a better solution to increasing lead time dependability without resorting to artificial inventory reduction programs. The buying organization assumes the right of routing at the suppliers’ dock instead of passively awaiting receipt of those shipments. Once you assume control, they can: optimize the overall shipment plan, assign their core carriers, control the carrier relationship from planning through proof-of-delivery, and monitor compliance-to-plan.
Our transportation team can uncouple your inbound freight costs and get the most out of your inbound trucks. Allowing Wavepoint to manage your inbound opens the door to:
- Reduce costs through negotiated rates
- Integrate with dedicated or private fleets
- Serve JIT or Vendor Managed Inventory programs
- Improve scheduling
- Relieve the burden of assuring on-time delivery
Move Closer to Your Customer with Vendor Managed Inventory
Vendor Managed Inventory (VMI) is an opportunity for a vendor to push inventory closer to the point of consumption, which in most cases is either a retailer or a manufacturer. In today’s supply chain turmoil, being able to fulfill customers’ needs for raw material, components, or finished goods is not just an inventory strategy; it’s a customer service strategy.
With VMI, you can manage re-supply by monitoring your customer stock levels and forward demand that optimizes inventory costs with expected service levels. This gives suppliers better visibility into forward demand, allowing them to produce, ship, and store more efficiently. As a result, customers have a smoother supply of products delivered at the right time and do not have to worry about stock-outs.
With VMI, you can leverage a 3PL warehouse location adjacent to or closer to your customer facility. Consider the benefits:
- Streamlined process that can minimize how vendor parts are ordered, delivered, stored, and replenished from VMI.
- Lower customer’s total cost of ownership through streamlined vendors and less obsoletion
- Enhanced stock visibility and a better understanding of plant inventory and consumption levels
- Improved productivity through streamlined communication and immediate delivery to the production facility or production line. Having fewer steps saves time and money.
- Stronger partnership between supplier and manufacturer
Obviously, these high-level strategies offer differing views of benefits, based on where you are positioned in the supply chain. Ask a supply chain professional at Wavepoint 3PL how you move toward optimal inventory management.