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Global Supply Chain Performance Erosion

As trade has grown into a global business, ocean transport has grown in importance. At the same time, the shipping landscape has continued to change. The result is that performance and service levels are inconsistent, unpredictable, and eroding. Despite this, there are corrective actions shippers can take to ensure smoother sailing and a more consistent delivery of their product.

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This is an excerpt of the original article. It was written for the November 2013 edition of Supply Chain Management Review. The full article is available to current subscribers.

November 2013

Sales & Operations Planning is both a science and an art. Like any science, it relies on principles, rules, methodology, and specific measurable outcomes. But an S&OP implementation also calls for creative, incremental thoughts to address challenges.
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Shoreline erosion does not happen overnight. The changes creep up little by little over time. They may not be apparent until you look back and realize that this year’s shoreline is different from last year’s shoreline.

A gradual erosion of performance has also occurred in global supply chains, especially in those that rely on ocean carriers to deliver the goods. We describe it as erosion creep because, like the shoreline, there is not one big, obvious change that hits a shipper between the eyes. Instead, a variety of events, such as longer shipping windows, unpredictable shipping schedules, bigger ships that can be handled in fewer ports, and new regulations, have gradually led to inconsistent and less reliable service levels.

These actions affect importers, exporters, and their supply chains. Retailers that miss a shipping window may end up with extra costs and lower margins to carry unsold inventory. Multi-national companies with global facilities and suppliers in multiple trade lanes feel the effects even more as they synchronize the flow of goods that feed production facilities, distribution pipelines, and customer distribution centers.

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From the November 2013 edition of Supply Chain Management Review.

November 2013

Sales & Operations Planning is both a science and an art. Like any science, it relies on principles, rules, methodology, and specific measurable outcomes. But an S&OP implementation also calls for creative,…
Browse this issue archive.
Access your online digital edition.
Download a PDF file of the November 2013 issue.

Download Article PDF

Shoreline erosion does not happen overnight. The changes creep up little by little over time. They may not be apparent until you look back and realize that this year’s shoreline is different from last year’s shoreline.

A gradual erosion of performance has also occurred in global supply chains, especially in those that rely on ocean carriers to deliver the goods. We describe it as erosion creep because, like the shoreline, there is not one big, obvious change that hits a shipper between the eyes. Instead, a variety of events, such as longer shipping windows, unpredictable shipping schedules, bigger ships that can be handled in fewer ports, and new regulations, have gradually led to inconsistent and less reliable service levels.

These actions affect importers, exporters, and their supply chains. Retailers that miss a shipping window may end up with extra costs and lower margins to carry unsold inventory. Multi-national companies with global facilities and suppliers in multiple trade lanes feel the effects even more as they synchronize the flow of goods that feed production facilities, distribution pipelines, and customer distribution centers.

SUBSCRIBERS: Click here to download PDF of the full article.

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About the Author

Sarah Petrie, Executive Managing Editor, Peerless Media
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I am the executive managing editor of two business-to-business magazines. I run the day-to-day activities of the magazines and their Websites. I am responsible for schedules, editing, and production of those books. I also assist in the editing and copy editing responsibilities of a third magazine and handle the editing and production of custom publishing projects. Additionally, I have past experience in university-level teaching and marketing writing.

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