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New Ways to Plan Your Transportation Mode to Balance Speed and Cost Mix

International logistics is currently in turmoil. The ocean market is suffocated with demand at max limit. There is a shortage in capacity, and transit times are significantly long. Airfreight can give immediate relief in congested areas, but it is costly.

The ideal speed-to-cost ratio is what customers must focus. Consider the life cycles of your products when deciding which to prioritize. Then, match your shipment methods to the sales options available to your firm. Actually, this is the perfect opportunity to fine-tune your modal blend.

When Time is of the Essence

When it comes to delivery, faster is usually better. When your competitors are late or demand is uncertain, being speedier could help you win.

Determine how fast your shipments must be based on the life cycles of your products. This strategy allows you to capitalize on sales demand while reducing inventory expenditures.

Here are a few examples of when your organization could be willing to pay more for delivery in
exchange for speed and reliability:

  • Airfreight is ideal for new products. Faster freight arrivals make it easier to stick to launching, meet the early surge in demand, and gain consumer trust.
  • Seasonal items are also a viable option for airfreight. As a limited time is available for seasonal products, during peak demand air can be used. Then, as demand declines, you might return to ocean transportation.
  • Fashion products are also perfect fit to air. When popular product categories are provided as soon as possible, they perform best. Fast fashion, rising tech items, or the newest kid’s toy may all have untapped potential.

Getting Rid of Fluctuation

Faster shipment can also help you get the most out of any products that are exposed to fluctuating market conditions. For the past year and a half, many businesses have been on a roller coaster, relying on tremendous agility to stay afloat.

Now that airfreight capacity is returning in tandem with passenger travel, it may be worthwhile to invest in speedier transportation. Companies who saw a surge in stay-at-home orders may want to take advantage of the last wave. Also, for those anticipating the release of cooped demand should be prepared to act quickly if a surge occurs.

Creating Your Own Modal Mix

It’s not an either-or situation when it comes to your modal mix; it’s not just air vs ocean. Even if you go back to the ocean later, you could select air in the short run.

Determine when and how to adjust your transportation modes based on your business to put that hard-won adaptability to good use.

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Author: Forceget

 
 
 

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