As retailers grapple with elevated inventory levels in an uncertain electronic market, Best Buy Co. says that freight transportation costs are easing.
According to Chief Executive Corie Barry, the high transportation costs that strained budgets in the first place came from tight capacity in the shipping container. This was mainly because large retailers were rushing to backfill and replenish inventories that had gone dry due to the pandemic. As containers and trucking sectors are lowering their max capacity they are now being overstuffed, some retailers like Best Buy are finding it easier to navigate the freight space once again.
This relief is mainly being seen in international markets and is slowly trickling into domestic markets. What is more than just affecting the electronics market; transportation costs across U.S. supply chains are receding ahead of peak season. However, what initially seems like a lower cost actually comes at a higher price.
As rates continue to lower, retailers may find now the perfect time to clear out stagnant inventory in preparation. However, the costs of these shipments won't just magically go away; energy costs still remain high, and fuel charges can fluctuate by the day. With a market that's constantly changing and pushing back against the norm we've seen in previous years, it's safe to say that the new "normal" isn't really normal at all.
When the conditions of the market change, you need to be ready for them. Having a strategic partner at your side can help you redefine the way you think and operate your supply chain. That way, when shipping conditions change rapidly, you are never left behind.
Morgan's supply chain experts keep you aware and prepared for any market shifts and changes. We have over 30 years of experience running operations across the world's manufacturing and distribution hubs and assisting our clients create a smooth supply chain operation.
Our custom-tailored approach can be applied to your supply chain control towers, taking your visibility beyond monitoring with a generalized software program. Our ChronosCloud technology is built to integrate seamlessly with your solutions, meaning minimal deployment time and faster visibility. From there, we leverage our team of experts to bring the tech to life, looking out for any opportunities for efficiency in your existing network, or provide you with the connections to better optimize a new network of carriers.
Our industry-leading technology and experts provide a comprehensive approach to control towers that automatically discover best-fit solutions.
Reach out to our experts today to experience Morgan's end-to-end approach to your supply chain.
