NYSHEXBlog
What is Allocation Management Software?
With 29% of U.S. Consumers saying they’ll shop online more after the COVID-19 Pandemic, according to FreightWaves, it’s becoming clear that the pandemic boom in eCommerce is here to stay. Though the boom in business has been good for online retailers, shippers and businesses are scrambling to meet the rising customer demand for fast, affordable logistics. Also, according to FreightWaves, “About […]
How to Be Proactive, Not Reactive, With Your Allocation Management
With 69% of customers saying they won’t shop with a retailer again if their package isn’t delivered within two days of the expected date, according to SupplyChain24/7, it’s more important than ever for businesses to deliver packages on time. However, antiquated logistics technology can make it difficult for businesses to stay on top of their allocation management, causing expensive missed […]
The Cost of Reactively Managing Your Allocation
Poor allocation management solutions can lead to massive cost increases across the supply chain. Despite these costs, many companies still rely on legacy processes and inefficient means of managing data. As reported by McKinsey & Company, “Close to three-quarters of supply-chain functions rely on the simplest method [of managing allocation]: spreadsheets.” Working with old-fashioned spreadsheets […]
The Importance of Standardization When Managing Allocation Across Multiple Ocean Contracts
Proper supply chain optimization begins with standardization. The frantic growth of the supply chain and congestion of trade lanes has made it more difficult than ever for logistics businesses to manage their contracts and allocation effectively. Even with a set number of ocean carriers operating, shippers can quickly lose track of their total contract allocation, whether that allocation is being […]
4 Strategies to Improve Your Allocation Utilization and Prevent Contract Shortfalls
Allocation management remains a challenge for many shippers. According to Inbound Logistics, 48% of shippers rate their forecasting technology as average to very poor. While that statistic may have improved, current forecasting solutions leave much to be desired.
3 Reasons Shippers Struggle to Manage Their Allocation
For BCOs, managing their allocation has always been a struggle due to the many variables that can result in shortfall and missing out on containers they contracted for. As explained by McKinsey & Company, the “ability to forecast demand and determine how to meet it has been further challenged by supply chains’ increasingly global scope. And supply-chain leaders haven’t done themselves any favors […]
The Pitfalls of Using Excel to Manage Your Allocation
The global supply chain continues to endure massive challenges, including lacking capacity and failure to utilize such capacity fully. According to the Drewry World Container Index, rates declined in early June 2022 to $7,625.56 per 40ft container (FEU). While that’s a positive movement, it’s still radically higher than the five-year average of $5,214. Meanwhile, demand for oil only continues to […]
Causes of Poor Contract Utilization and What to Do About It
Though the World Container Index has dipped slightly in recent weeks, it’s important to note the large-scale growth the WCI has seen in recent years. According to Drewry, on May 12th, 2022, “The composite index decreased by 0.9% […] but remained 33.7% higher than a year ago.”
What’s Limiting the Ability of Shippers to Fully Utilize Their Allocation and How Integration Helps
The recent delays surrounding ocean cargo capacity can be traced back to early 2019 and the onset of COVID-19 when customers across the globe fueled a higher-than-ever demand for containerized goods.
