Advantage of a Supply Chain Solution | Supply Chain Management | SCM Provider

Posted & filed under Supply Chain Management.

According to Logistics Management, 55 million tons of goods are transported through the U.S. freight system daily. This number is expected to grow nearly 42% by 2040. As for jobs in the manufacturing industry, CNBC reported that a record-breaking 284,000 jobs were offered in 2018. This growth trend in U.S. manufacturing and shipping is encouraging and will hopefully continue. The question is, how do you keep up?

Today’s companies are transporting and delivering goods more efficiently than ever before. The secret? Utilizing supply chain management (SCM) services. With access to new technologies through SCM providers, companies can stay ahead of the competition. These technology services offer detailed information throughout the shipping process, enhancing the shipping experience for all parties.


Essential or Justified?

Real-time shipment visibility is universally desired by shippers, carriers and customers. However, the ROI is rarely discussed. Visibility in real time often remains as a nice-to-have rather than a need-to-have. You may assume that it’s having a positive impact on business, but it’s easy to overlook the measurable benefits such as reduced freight cost. SCM providers can offer top of the line transportation management system (TMS) capabilities, which analyze options for optimizing your freight.


Savings Through Supply Chain Management

Visibility on its own isn’t enough. It’s common to hear about manufacturing companies facing large expenses after a late delivery. Suppose a truck is scheduled to arrive at a receiving dock at 2:00 p.m., but is going to be an hour late. Having a SCM team become aware of this in advance with real-time visibility means the shipment can be rescheduled for a delivery time that suits the customer. This reduces waiting time and assists in customer relationships.

SCM services have also increased efficiency among track and trace teams, delivering measurable cost savings. In the scenario mentioned before, a SCM team would reduce the need for excess manpower. Professionals in transportation and customer service departments would be more fully utilized on other projects.


Most retailers keep a careful performance score for suppliers, including on-time delivery. These penalties can amount to 1-3% of invoice in retail. However, in other industries such as construction and manufacturing, penalties can be much higher. This is due to the related factors such as holding up complex projects or production lines. However, if notice is given, they can often avoid chargebacks.


Real-time updates from a SCM team also aids in avoiding freight claims on temperature-sensitive products. Data is available from temperature monitors attached to the truck or cargo, safeguarding each shipment. A customer could reject a shipment that has gone outside of accepted temperature ranges. This data allows you to show there was compliance for the whole trip.

In the end, contracting a SCM provider has different advantages for different people, but there are certainly measurable benefits. There’s more need than ever to leverage the competitive edge that comes with utilizing a supply chain management solution.




The England Logistics’ Supply Chain Management (SCM) division is dedicated to assisting shippers with all aspects of their logistical needs. SCM utilizes tools that offer enhanced visibility, efficiency, and profitability. Our team is dedicated to providing the best service and creating a customized strategy for your company’s needs. Reducing costs while increasing profitability is our goal, and we’ll work hard to see your business grow.