Ways to decrease logistics costs during supply chain crisis

This year, supply chain crises hit massively everywhere in the world. Companies in 2020/21 are getting struck mostly due to pandemics of the coronavirus, port closure, but also floods and container shortage. While supply chain logistics are always developing, challenges in 2021 remained a tackle for logistics services Saudi Arabia and many more. It’s expected that supply chain challenges will persist, moved by online shopping and the growth of e-commerce. Logistic companies like Four Winds Saudi Arabia are accommodating to these changes by working smarter, not harder to meet the customer demand and to decrease logistics costs during supply chain crisis.

Major challenges in 2021

All over the globe, companies are facing disruption of the supply chain that is causing productivity decrees. These are quite unforeseen and new barriers for businesses to overcome. Some of them are freight prices that are considerable and higher than ever. Worldwide lockdown affected ocean freight to Saudi Arabia as the need for container shipping has grown. E-commerce has reached its all-time high, so supply chains must accommodate and get flexible. Customer experience and satisfaction remain a top priority.

Tucks on parking lot
Global economies are hit massively, but logistic companies found ways to evolve and decrease logistics costs during supply chain crisis

Logistic companies are facing port congestion, where they cannot load or unload because the port has hit its capacity. Like a domino effect, a new problem can appear in warehouse in Saudi Arabia. Warehouses are left stranded as their forecasts are no longer viable.

Ways to lower logistics costs during the supply chain crisis

In the years to come, there will be a need for logistics companies to adapt, combine and use a couple of technics to fight upcoming issues.

  • Change your strategy
  • Partner with a freight forwarder
  • Find alternative shipping ports
  • Improve forecasting to decrease logistics costs

We recommend for your business geographically widen its range of sourcing to increase sources. This is a key to a brand’s success. Many companies had changed their operational strategies in order to retain their customers. Remaining flexible and being able to adjust to the all changing market helps fight issues that started in early 2020. In order to track and manage the shipment of your goods, we recommend partnering with a freight company, or a couple of them. They will be responsible for the transportation of goods, they can negotiate the best prices and find faster routes. It’s also important for supply chain headmen to embrace a holistic point of view with artificial intelligence in the years to come. AI is the future of many industries, helping them analyze and use data in the best way possible.

A man struggling to decrease logistics costs during supply chain crisis
A way to fight crisis is to be flexible and accommodate new challenges

As one of the focus points is to decrease logistics costs during a supply chain crisis, we recommend finding alternative shipping ports. This way once your good passes Saudi customs clearance you will stay on schedule and accommodate a spike in customer orders. In conclusion, the pandemic has amplified the necessity of supply chain optimization. Once your business has revitalized, it’s important for companies to keep their customer base. Use what you have learned in the past to improve and fight off supply chain challenges that may come.

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