It’s rumored that Home Depot is in discussions about acquiring XPO, a $9 billion company that offers logistics services for retailers. Home Depot is considering this acquisition to further expand its delivery and shipping capabilities—and to ensure that rival Amazon doesn’t purchase the company instead.
In today’s fast-paced business world, maintaining a competitive advantage is crucial for success, especially when it comes to logistics. Yet only 38% of executives say they are extremely or very confident that their supply chain partner has the capabilities they need. Learn how to ensure your company’s logistics are a competitive advantage with our no-nonsense guide below.
Review the logistical capacities of competitors
The goal of supply chain management is to move inventory at greater speeds in a cost- effective manner, but focusing on these metrics alone doesn’t lead to an automatic advantage over competitors. The companies that truly stand out are agile to sudden changes in supply and demand, adapt over time to the evolving marketplace, and align with the interests of each firm in the supply chain.
Look for these traits from direct competitors and leaders across industries by reviewing data from relevant research firms, such as Gartner’s report on the top 25 supply chains of 2017. Beyond evaluating original research and data, consider partnering with an advisory firm that specializes in benchmarking to highlight where you are compared to your competitors.
Identify the tech worth adopting in logistics
Brands with world-class logistics pay attention to the new technologies available for supply chain management and let their customers know which they decide to adopt. Focus on communicating how the adoption of new technology benefits your customers and highlighting the potential for better results.
Remain aware of changing consumer expectations to find technology solutions that address any challenges. For example, more than half of e-commerce consumers now browse by the availability of shipping choices since they can get similar products from multiple websites. Recognizing what customers demand from brands should help you prioritize which changes to make in your existing supply chain network.
Position your inventory capabilities to meet customer demand
Even with a solid logistics strategy, challenges and unexpected changes will arise that require the support of a partner to assist with the storage and moving of inventory.
That’s where our solutions at PODS come in — we offer flexible options for storage and logistics to help address any sudden inventory management issues.
For example, capitalize on seasonal revenue opportunities by partnering with PODS to quickly transfer slow-moving merchandise to better performing stores. Purchasing behaviors around the holidays are predictable, but not all revenue opportunities can be accounted for ahead of time—which requires swift action and agility from retailers.
There’s no need to maintain multiple warehouses since PODs can act as your centralized storage and distribution center. This eliminates the need for store associates to drive, unload and reload any inventory, which is an added cost-savings.
Conduct risk and resilience assessments
A key differentiator of an agile supply chain is the ability to identify issues and alter the company’s logistics strategy in small or significant ways quickly. It’s not possible to predict everything, but by planning ahead any company can identify a list of potential issues and how to minimize their impact.
Building an innovative logistics framework across your organization is a complex task, but it’s achievable. By putting our recommendations into action and making the most of the expertise offered by our specialist team, your company can nimbly change directions in logistics as new situations come to light. Go to PODS for Business to find out more about our services, or call 877-BIZ-PODS today for a free quote.