Logistics Efficiency through Stem Reduction
Taking costs out of the supply chain is the goal of every manufacturer. Logistics efficiency is more important than ever and is much more than just cost reduction. While technology is a driving element for efficiency, your supply chain operations and movement are at the forefront.
Since transportation is the vast majority of supply chain expenses for any manufacturer, anything you can do to impact those costs by reducing stem miles is a benefit to the supply chain.
So how can you impact stem miles? Use a Single Source Logistics Provider like MILAN.
Full array of service offerings in Warehousing, Inventory Management, Transportation and Value-added provides services all under one roof by one provider. Transportation costs are eliminated of transferring product from multiple facilities and suppliers. All services including postponement needs can be handled before product goes to your customer.
Get closer to your Customer. Keeping inventories closer to the end user can reduce inventory transfers to meet demand and allow quick order turnaround and delivery. Last mile deliveries have higher performance and can be managed better should issues arise.
Tighten up your supply chain network. Look to create inventories at facilities that can handle key markets. Mega facilities may not be the right solution for your organization. Shorter distances with additional facilities will reduce stem and develop a more dynamic and flexible network environment.
Establish consistent delivery times. Working with a 3PL will allow you to develop consistent delivery appointments to your customers. This allows opportunities in freight consolidation and improved routing.
A single point of contact can improve logistics efficiency. Having one company who can manage and communicate all aspects of the supply chain to your transportation providers can aid in improving your and your carrier’s efficiency. Transportation providers who have consistent contacts and communication can plan and execute more effectively and eliminate any stem waste as needed.
MILAN Supply Chain Solutions is a single source logistics provider in western Tennessee. They distribute products from their facilities in Milan and Jackson supporting the southeast and midwestern logistics activities of a their clients in areas of Food & Beverage, CPG and Automotive. MILAN’s asset-based transportation division and brokerage division provides customers with the best solution based on their needs.
We understand that BUSINESS MOVES FAST. Make your move with MILAN.