Tough times can force efficiency on any supply chain.
Take FedEx, which made headlines earlier this month when it announced it’s finally combining its Express and Ground businesses. Ever since his company bought the former Roadway Package System (RPS) parcel service and rebranded it as FedEx Ground, FedEx founder Fred Smith has argued that operating the two networks independently helps drive individual success. But, that means FedEx Express and Ground trucks frequently drive the same routes and neighborhoods, duplicating costs for operations.
We see similar examples frequently in client networks. Multiple carriers arrive each day at the same dock—some of them serving the exact same routes, and nearly all at less than full capacity. When we create custom-tailored transportation networks, we look for inefficiencies like this. A full truck with a single carrier usually costs less and is easier to manage than several partial truckloads. As added benefits: Less dock congestion and better sustainability.
Current FedEx Express CEO Richard Smith, the founder’s son, said FedEx drivers across all divisions will drive 3.4 billion miles in the company’s current fiscal year, equal to 100 trips to Mars. “What I’m saying is, we want to make fewer trips to Mars.”
That’s a good punch line, but it turns out that finding opportunities for supply chain optimization is actually a bit of rocket science. For instance, a duplicate truck run might be hidden inside a door-to-door air movement. Or, maybe it’s controlled by another procurement group.
Optimizing across an entire network requires both the right data and the right expertise. Multi-party visibility and analytics platforms, like our own ChronosCloud, make a huge difference. But, data review can start with something as simple as gathering recent transportation RFPs.
It’s equally important to have the right eyes on your information. Artificial intelligence offers stunning insights, but it also still takes a little human intelligence to manage and customize an entire transportation network.
At Morgan, we have more than 30 years’ experience working in complex, outsourced transportation supply chains. We have walked the docks, crunched the numbers, solved the bottlenecks and found ways to maximize efficiency in countless assignments. If current conditions are causing you to redouble your supply chain optimization efforts, we would be glad to review your challenges and goals at no initial cost. Reach out to our team today.
