Many industries realize that expedited shipping services are a good fit for their regular supply chains. In many instances, businesses find that the advantages of expedited shipping – lower inventories, special handling, security, personalized attention, and dedicated customer service – can justify the higher costs. Amongst the industries making regular use of expedited logistics:
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Retailers
“Keeping shelf incumbency is very competitive for CPG (consumer product goods) companies. There is a lot of competition for space on store shelves, so CPG companies see a need to expedite. Specific retail categories – fashion, consumer products, electronics – are critically dependent on speed to market to ensure the on-time introduction of new products, guard against stockouts, and minimize the risk of damage or theft.
In addition, with retailers generally operating within tight delivery windows, the additional cost of an expedited service with a guaranteed delivery time can easily offset the cost of chargebacks for missing a delivery promise.
Some fast fashion retailers also count on prompt deliveries and high service levels commensurate with expedited transportation. Supply chains for such companies usually involve an expedited air cargo solution to move new fashion pieces from Asian manufacturing centers to U.S. retailers. This approach allows brands to renew their collections almost weekly. Plus, retailers count on service providers for extras, including placing items on hangars, labeling, and bagging.
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Pharmaceutical Industry
Few shipments necessitate the attention and care – or regulatory compliance – inherent to pharmaceuticals. So, it is no surprise that expedited service is the preferred logistics option for the pharmaceutical industry. But unlike many industries that depend on expedited service, speed is not the overriding goal for pharmaceutical companies. Security, product integrity, and regulatory compliance are top priorities.
Pharmaceutical businesses also gravitate toward expedited service because of its high degree of customer service and ability to secure the supply chain. A lot of customers will necessitate team drivers on a load that will only go 250 to 300 miles. That is not about hours of service or expediting a shipment. It is about redundancy and mitigating risk by layering on security.
Temperature control is one more vital concern. So much so that the temperature-controlled sector of the expedited market has increased markedly in recent years.
Another challenge for pharmaceutical businesses is the highly restrictive environment in which they operate because of regulatory compliance mandates. Cost-saving options available to other industries are often off-limits. Of particular concern, for instance, is finding better last-mile delivery solutions for temperature-controlled products and ensuring that an expedited shipping company has adequate monitoring and tracking devices to detect any mid-shipment changes in temperature, light, vibration, or humidity.
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Aerospace
Substantial revenue and earnings growth for the global aerospace sector has been predicted. It is largely driven by the demand for next-gen aircraft and growing passenger traffic. This is primarily in the Asia-Pacific and Middle East regions. The industry’s global supply chain faces challenges to meet increasing requirements for capacity, throughput, quality, on-time delivery, and pricing. These challenges may lead to a transformation within the aerospace supply chain – marked by consolidation of parts suppliers and increased pressure on OEMs to increase productivity and control costs.
OEMs will likely react to the manufacturers’ requests for more competitive pricing by asking their suppliers for price concessions. This, in turn, will result in leaner inventories and the need for precision-like part replenishment.
The aerospace manufacturers are adjusting to this “new normal.” For this, a trusted and experienced shipping provider will be necessary to ensure critically needed components arrive on schedule. Failure for a single part to arrive could shut down an entire assembly line. And the part in question could be coming from anywhere in the world because of the industry’s highly exacting and precise nature. A reliable provider can put the gears in motion. All this at the snap of a finger, to move the necessary part and make sure its on-time arrival.
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Automotive Suppliers
The Toyota Motor Corp. pioneered expedited shipping within the auto industry. And with an estimated 80,000 unique OEM part numbers introduced each year and an aftermarket inventory of more than 4 million parts, it is no wonder the industry continues to count on guaranteed, premium service.
Another factor to consider is the growing number of technology-based car components. Microprocessors, sensors, cameras, radar, and other technologies are being added at exponential levels. At a time when manufacturers – and repair centers – keep bare-bones inventories, often with no more than a few hours of inventory on hand at any given time, expedited, precision service is an integral part of the supply chain.
Component suppliers are increasingly budgeting for higher-cost expedited services, operating under the assumption that costs will be borne out by:
- Minimizing the risk of a part shortage, and
- Lower inventory carrying costs.
The rise of omnichannel has also affected the sale of auto parts, with a growing number of consumers buying parts online. This caused parts manufacturers and suppliers to adjust their supply chains to ensure seamless integration of online and physical store processes.
Expedited services are a key to customer satisfaction.
As competition continues to heat up for online customers, businesses will have no choice but to invest in better service options to secure customer loyalty. Customer experience is evolving into the key battleground for attracting and retaining customers. It results in expedited services to allow a business to distinguish itself from competitors.
Contact C5 Expedite
At C5 Expedite, we deliver custom, innovative solutions to our customers. Our extensive network enables us to provide time-sensitive shipments, including emergency next-day deliveries.
Are you looking for a reputed company that offers same-day shipping services in Wisconsin Rapids, WI? To find out how we can help you, please call us at 715 887 3500 today! Do not hesitate to get in touch with C5 Expedite.
