The global manufacturing of products, whether they’re to be sold B2C or B2B, has come under much pressure lately to deliver on the new standards of timeliness and efficiency.
Nate Young, VP of global innovation at Newell Brands states, “People don’t want to inventory anything. They don’t want to hold any assets longer than they have to hold them. It puts a lot of pressure on the manufacturing to delivery process.How can I get what I want to sell only when I can sell it?”
This shift goes agains the grain of the traditional supply-demand paradigm; production, shipping, storage, and sales were all equally important and necessary portions of the manufacturing process. The ideology of ‘just in time’ manufacturing is a tactic that business have used for a little more than a decade to reduce storage times, streamlining the actions of manufacturing directly to retailing for sales. However, manufacturers, today, have become more aggressive in the variation of their products creating shorter production volume runs, putting pressure on the manufacturer to retailer efficiency.
Variation in production of this kind has allowed web-based stores to trend as brick-and-mortar has seen a decline in recent years.
In order to combat the new ideals of manufacturing and delivery times, companies globally are paying closer attention to optimizing their logistics’ strategies. Speeding up delivery processes is a quite simple ideology when you look at it from the outside perspective. However, the complexity involved in optimizing production-to-sale times is a very complicated process reliant upon multiple moving parts, which could easily turn catastrophic for both parties due to unforeseen logistical risks.
3PL services have made a push in the recent years, alike with warehouse management, inventory management and IoT tech worktools. Focusing on logistics efficiency is a strategy reliant on a willingness to accept technological advancements and the help of 3PL providers. This surge has already, and will continue to grow in a marketplace, that just a decade ago, was rather small.
Best put by a report from PricewaterhouseCoopers LLC, ““Both individuals and businesses expect to get goods faster, more flexibly, and — in the case of consumers — at low or no delivery cost. Manufacturing is becoming more and more customized, which is good for customers but hard work for the logistics industry. Add it all up and the sector is under acute and growing pressure to deliver a better service at an ever lower cost."