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 utilized, and who is responsible for it. The same issues apply when working with multiple NVOCCs to source ocean capacity and manage allocation across them.
This process mirrors the need to review purchase orders and create forecast models that work regularly and accurately. As further noted by McKinsey & Company, “comparing month-to-month revenue does not generate as many insights as understanding what is affecting revenue, where, and how. Therefore, reviews should probably happen more frequently and with more granularity than in prior years. These reviews are not only to ensure accountability from teams but also to collect and learn from their feedback. Learnings from such reviews can help adjust model assumptions and identify the reactions and decisions that are working.” In other words, learning how to forecast demand and match it with allocated volume is critical.
Rather than reinventing the wheel with each load, shippers need a clearly defined, standardized process for managing allocation across multiple contracts. Standardization yields several core benefits that help shippers unlock scalability and cost savings in allocation management, and insight into their operations. Let’s take a closer look at these benefits and their implications in logistics.
Though the days of paper contracts and disorganized filing cabinets might be over, the need for an easily navigated, readily accessible contract interface is as present as ever. As with a filing system, simplicity is the key to any contract interface. What’s the point of using a contract platform if contracts, data, and other allocation management resources remain difficult to access?
By partnering with a user-focused allocation management platform, businesses can access all of their contracts through a single platform accessible across multiple devices. With this accessibility, it’s easier for enterprises to utilize existing frameworks for various transactions and avoid failed contracts; ultimately, businesses can easily create new client relationships and scale those they already have with unprecedented ease.
Having contracts easily accessible through a standardized platform means that shippers can go into ocean contract allocation with less stress than ever before. Allocation management is often the most difficult, not to mention expensive, aspect of the logistical process. Still, with standardization through a tech-driven committed contract platform, it doesn’t have to be.
Once a shipper has standardized its contractual processes, its daily operations become simpler. Instant access to the specific details of each contract makes it easy for shippers to keep track of even the smallest of details, making the often complicated process of allocation management simpler than ever. By integrating data into the process of ocean contract allocation, businesses can develop a real-time, dynamic understanding of their contractual obligations at any point throughout the logistics process.
These easily accessible, fully-standardized allocation protocols can allow shippers to deliver unprecedented reliability with their allocation, inspiring confidence from businesses tired of unpredictable delivery times and chaotic ocean contract allocation. Standardized, tech-enabled contract visibility solutions can give shippers an edge in an increasingly competitive logistics marketplace.
Through standardization, shippers can create sustainable business models that work for all of their carrier or NVOCC relationships. These improved relationships can quickly result in smoother workflows for shippers who must meet the ever-growing customer demand for smooth, reliable deliveries.
Easily accessible, fully standardized contract visibility across devices means that staff can access vital information with greater ease and reliability than traditional allocation methods could provide. With all members of a shippers team on the same page, workflows can glide forward without a hitch, ensuring that clients receive their deliveries on time, every time.
From simplicity to staffing, standardization in allocation management can help businesses create and maintain relationships with unprecedented ease. Shippers need to find a way to stand out in the competitive, high-stakes world of ocean contract allocation. By partnering with NYSHEX, a data-driven allocation management platform, shippers can offer their partners the best in ocean contract performance.
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