Proactive and Reactive Supply Chain Solutions

Updated: Oct 18, 2021





Chip shortages, transportation jams, and rising shipping container costs are only a few hiccups in the current global supply chain juggernaut.


Eighteen months into the pandemic, and here we still are facing crippling supply chain issues. Signs are not positive that problems will be easing soon.


Companies seeking relief and ways to satisfy their customer demands have to solve for two main factors: product cost and product availability.


When we discuss supply chains, we talk about them moving. They can be vertical, lateral/horizontal, just-in-time, proactive, and reactive to name a few.


The type of chain and its flow depends on the industry, such as manufacturing where an item is made or retail, where a finished item is sold.


A traditional proactive supply chain uses technology to gather data and make educated predictions about potential future changes. Predictive models allow for accurate schedules, labor spend, and cost estimates. Surgere’s Interius software suite includes powerful data gathering tools that support proactive operations.


A reactive supply chain is ready to adapt to change, consider a retailer needing to restock a popular item or a manufacturer needing fulfill those orders.


Interius features modules that allow manufacturers, retailers, and supply chain and logistic professionals visibility into the supply chain. The ability to track items and parts, know what is inside the shipping container, and manage the quality of finished goods while they are idle due to transportation delays.


In today’s environment, it is important to be both proactive and plan for future events, and reactive and adapt.


 

Navigating the Cost Containment


An essential need is cost containment. Inflation at the wholesale level was 8.3 percent higher in August 2021 than in August 2020. The Bureau of Labor Statistics report in early October that food prices inched 0.4 percent in August compared to July. Consumers feel these increases directly in their wallets. But, price increases are creeping in other places, mainly transportation. The 2020 cost of a 40-foot shipping container was $1920, today it is $14,000 and up. With ports now jammed with ships, there is also a shortage of containers. Some manufacturers and retailers are shipping via air adding even more to costs.


Manufacturers and retailers must find ways to control their costs or risk losing customers, disappointing shareholders, and seeing reduced profits.


Cost savings can come from supply chain visibility. When you know where parts and finished goods are physically located, you can proactively direct logistic changes. If you can see where products are stuck enroute, you can make changes to your workforce, delivery estimates, and transportation. Supply chain visibility tracks waste and helps reduce lost parts and materials. At a time when it can take weeks to replenish raw materials waste is no longer tolerable.


Surgere offers a variety of cost, time, and labor saving technology solutions to solve supply chain problems, from costly paperwork to precision product tracking.