C. H. Robinson: Differentiate routes, reducing costs and observing key indicators are points to consider.
According to Mike Short, president of C. H. Robinson, “Today, depending on the region, shippers face new and ongoing challenges to sailing, such as inland congestion, geopolitical changes, overflowing warehouses, port delays, cancellations in the itineraries and more”.
- Not all routes and markets are the same. Demand for capacity has declined on most global trade lanes in recent months, but this is not the case for all types of markets. He notes, “Rely on your supply chain partner´s market insights and experience to stay up-to-date on the nuances of each region, mode and trade lane”.
- Cost reduction will be a top priority. According to a survey of large retailers in 2022, 65 of them said that the pressure to cut supply chain costs is critical, not seeing any change in 2023. “Even if you don’t have the ability to do a major overhaul of your strategies, sometimes simple changes can result in big savings”.
- Pay attention to the economic indicators. Managing inventories based on economic indicators and locating them closer to the final user will be paramount, especially in the increasingly complex logistics environment.
He further notes that there is not a single answer in logistics, “the best thing to do is meet with your supply chain partner to identify the right strategies and opportunities based on your business goals”.
