3 New year’s resolutions to kick-start your supply chain 22 January 2018

Most New Year’s resolutions barely last a month. But these 3 resolutions will benefit your supply chains well into the year and beyond. In the next 60-seconds, we will show you how.

 

Stop best-guessing, start forecasting
2017 we saw accelerated growth in the global economy which, according to the World Bank will see growth of around 2.7 per cent*. As a result, stock markets reached record levels**. The consequence for supply chains are clear – increased need for faster transit times and record levels of demand for traditional airfreight services. This has left many businesses with higher than budgeted freight costs.  It also highlights the importance of matching supply / demand cycles, and allocating inventories to the right channels and markets.
 
There are two valuable lessons we can learn from this and apply in 2018. The first is to get earlier visibility on peak demands; the second is to combine local market demands with your production schedules. With the WTO estimating global trade growth of 2.4% for 2017 (an increase of 1.1% on 2016) now is the time to start improving supply-chain forecasting power.  
  
At Damco, our supply chain experts have a range of ideas and solutions to help build forecasting power. To find out how, click here and read more about how our workshops can help find new ways to better manage your inventories all year round.
  
Add Rail to your Modal Mix
Airfreight typically makes up around 5 to 8 per cent of the mix of transport flows for lifestyle brands. In many cases, this is a deliberate strategy usually taken to launch a product in the market. But it also remains the default choice to expedite distressed ocean services.  This is where we can add rail to your modal choices.  Rail services provide an immediate solution that offers competitive transit times compared to traditional ocean freight, and a competitive pricing compared with airfreight. Want to know how to get the balance right with your modal mix? 
 
Click here to read more about our Rail Services and contact us to find out how we can help you get the right mix.
 
Hit the Fast-Fashion Accelerator
For apparel businesses with supply chains that source from the Far East, the pressure to cut lead times is not only real, but increasing. The accompanying need for speed is being fired up by fast fashion models seen in a number of high-street stores which can achieve best-in-class operating margins.  With Damco, you not only have access to an accelerator, but a reliable source that can help you cut leadtimes, speed up your supply chain and improve efficiencies.
 
Contact us to start the acceleration process.

Christopher Cook   |   Global Vertical Head - Lifestyle   |   christopher.cook@damco.com

 

Reference links

Global Economy in 2017: Hope and Uncertainty. The World Bank Opinion, February 15, 2017.

** Stock market ends at record levels after extending win streak. MarketWatch, October 4, 2017.