Learn how SpendEdge can keep your supply chain healthy by managing risks and complying with safety standards, even with uncertainty in global border crossings.
Transportation Industry Overview
With regulations compelling companies in the transportation and transportation procurement sector to comply with newer safety standards, along with the emergence of sophisticated technologies, enterprises need to constantly procure advanced technologies that involve various supply chain risks. Focusing on helping transportation procurement clients gain a competitive edge, SpendEdge’s procurement market intelligence solutions help procurement managers stay updated on developments in the supply market and freight procurement sector make informed decisions. Our transportation services procurement experts also closely monitor trends in the supply market, supply-demand status, and supply chain dynamics and help clients mitigate inventory risks, while ensuring compliance with safety standards.
Freight and Logistics
In addition to the need to deliver instant delivery services, logistics service providers are also faced with the increasing demand for flexibility and visibility in transportation procurement. Since logistics providers serve customers with operations that are spread out across the globe, they need to effectively manage the supply chain and identify associated risks through transportation industry analysis. With an in-depth look at market conditions, SpendEdge’s transportation procurement market intelligence experts offer effective solutions that will help clients optimize their sourcing strategies and freight procurement to help them reduce operational costs.
Transportation Equipment
From constant technological innovations to the changing demands of the consumer, transportation equipment manufacturers are constantly dealing with a number of short- and long-term sourcing and transportation procurement challenges. With a team of experienced category and commodity specialists with expertise across various industrial sectors, SpendEdge provides several procurement market intelligence services that help buyers identify appropriate supply markets and develop robust freight procurement strategies.
Travel
Being an industry completely driven by the preference of customers, the travel industry always needs to maintain a balance between offering competitive pricing and delivering brand experience. With frequently increasing labor and material costs, cost management is a key challenge for the industry. By identifying various cost elements and understanding the contribution of each cost element to the total cost structure, procurement market intelligence specialists at SpendEdge offer granular market- and category-specific insights that help clients make better purchasing decisions.
The process is very transparent, there were multiple touchpoints and feedback sessions arranged to meet our exact expectations and the report has turned out to be very helpful for our category teams.
Thank you for delivering such comprehensive reports; these are well done. You’ve adequately addressed our questions.
COVID-19 Impact on Freight and Transportation Industries
The freight and transportation industry is punctuated with dampened demand from key buyer industries such as manufacturing and e-commerce. Effective government intervention may lead to a revival of the transportation sector within a medium-term period. This will directly depend on the revival of key buyer industries such as manufacturing, e-commerce and construction.
The global economy is in a state of paralysis as the novel coronavirus impact has forced countries to take extreme measures for the well-being of their citizens. The pandemic has exposed global value chains irrespective of industry, even as companies continue testing the resilience of their operations.
The distinct sub-segments of freight and transportation ecosystem will go through critical changes and disruptions in the short term. SpendEdge presents a quick dashboard that summarizes the impact on the industry so far and what to expect in the next 2-3 months.
The coronavirus impact on the freight and transportation industry is translating into a significant reduction of freight demand from all the key user sectors as well as reduced corporate travel demand. Such a shortfall has led to minimal usage of resources by transportation suppliers. This may lead to substantial layoffs of human resources by such suppliers to protect their financial stability.
Suppliers aim to work in a collaborative fashion with government agencies to solve the key macro-economic problems they are facing. Travel and transportation suppliers hope to receive financial aid from multiple government agencies to overcome the negative coronavirus impact on the freight and transportation industry.
Home/remote working norms adopted by corporates have resulted in a sharp demand decrease for commercial transportation services across most countries. The airline industry has been hit the worst due to global operations shutdowns. This will lead to major layoffs and cost optimization initiatives once operations resume. From a procurement standpoint, buyers need to arrive at forward contracts with suppliers to ensure normalization of supply after the COVID-19 crisis.
Uncertainties loom large and the will swing between extremes as the coronavirus impact makes its presence felt in the global economy. Executives around the world are examining their supply chains with a microscope to find risk elements. Companies that can proactively identify or anticipate the bottlenecks in their supply chains will be closer to finding solutions for supply chain risk mitigation. Note that these solutions will have to be extremely customized for the sector, location and government responses and it is impossible to develop a “one-size-fits-all” solution. Still, there are elements that are common to any resilient risk mitigation plan. We recommend a few of these below for immediate results.
Buyers and suppliers should work in collaboration to identify issues associated with transportation activities. One of the major areas where buyers and suppliers can collaborate in an effective manner is in constantly monitoring new areas where quarantine measures are being deployed and identify alternate travel routes effectively.
Buyers should make use of transportation and warehouse optimization software to streamline the procurement process. Usage of such software will ensure that buyers and suppliers optimize delivery routes and reduce fuel-related costs. Warehouse optimization software will provide insights to buyers regarding space availability within warehouses, enabling buyers to plan transportation activities based on their ad-hoc, medium-term, and long-term requirements.
Develop relationship with vendors from countries that have a lower count of COVID-related cases or are still working in a relatively normal environment. However, buyers must also be aware of increased prices in these geographical regions due to increases in demand.
It is not enough to only look at production centers: buyers must also evaluate the logistics-related risks associated with the delivery of essentials and develop a procurement strategy accordingly.
Buyers need to be up-to-date on global developments as well as country-specific trends. Lockdown situations can change suddenly in locations that are of importance from a supply chain perspective. Buyers also need to monitor emerging success case studies and learn
from them.
Supply chain disruptions have created logjams at cargo hubs and warehouse facilities. It is expected that shipments will remain stuck at various places for an unknown duration and massive delays will occur across the entire supply chain. It is imperative that software solutions being used for supply chain management, inventory, warehousing, and shipment tracking are updated regularly. Complete visibility and accurate communication in the supply chain are important to drawing alternative plans and minimizing the loss of shipments in transit.
SpendEdge can keep your supply chain healthy by managing risks and complying with safety standards, even with uncertainty in global border crossings.
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Transitioning your category procurement strategy beyond cost-saving and into a strategic function of the organization.
Over recent years, there have been various industry developments that served as or caused trends in procurement. These procurement trends include technology changes, novel strategic approaches, new processes, and necessary adaptations to change. As supply chains become increasingly complex, procurement has become highly crucial and influential in the production process and continues to grow.
Supplier risk assessment and major procurement pain paints for the medical devices industry. Request a Free Proposal to know how we can help you.
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