Innovation of necessity

Innovation of necessity       What many supply chain managers have learned in the past eight to 10 months is that what good times can give, bad times can quickly take away.
      The new mind-set emerging among today's shippers, both large and small, is how to be more innovative with existing freight volumes and remaining logistics resources. At this point, there's hardly any money left in the budget for shippers to hire consultants, buy new technology, or further outsource inefficient activities.
      On top of this, companies involved in international trade must contend with a slew of existing and new federal regulations, including '10+2,' food and consumer goods import quality standards, and export controls. Neglect of these compliance obligations could result in severe penalties and negative publicity.

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      Shippers must revisit the basics of freight logistics and make the best use of their existing tools. Surely, there are plenty of low-cost improvements that can still be made to transportation management and contracting, computer systems, and workplace performance simply by taking a closer look at these activities. A few pennies saved here and there are just as important now as the potential dollars earned tomorrow.
      An honest dialogue with carriers and intermediaries, such as customs brokers, freight forwarders and non-vessel-operating common carriers, which is centered on service rather than pounding down rates, could also lead to more cost-effective improvements in how products are shipped.
      Taking advantage of this downtime to make these types of nitty-gritty supply chain improvements will surely make for a stronger foundation for many shippers to build upon when the global economy does finally resurface.