E-Commerce Logistics Demands, COVID-19 Empower Ocean Alliances

Although there is still a slim chance that the fourth quarter produces some rate compression – or a downturn in the need for e-commerce logistics. When freight levels are at an all-time high, there is little motivation for the three major shipping alliances to drop rates significantly during the remaining calendar year.

Shippers looking to 2021 would be wise to consider contingency budgeting – especially if you are a major importer competing in a supply chain environment that continues to be affected by ongoing growth in online sales and e-commerce logistics.

Likewise, there has never been a more important time to reassess your entire import supply chain to validate compliance with evolving trade regulations. Emerging pinch points in the international supply chain are elevating risk for shippers who must be prepared to address traditional risk areas that carry a financial impact.

As we have stated since early 2019, contingency planning must be the part of your monthly and sometimes weekly business plans. Diversification in foreign sourcing has never been more critical, particularly in an election season that has pushed global trade forward as individual candidates differentiating issue.  

Close review of the international transportation landscape can lay the groundwork for developing strategies that mitigate that risk heading into 2021.

Alliances Take Control Amid E-Commerce Boom

Consumer behaviors are shifting the traditional retail models, and the unchecked growth of e-commerce is keeping the global supply chain packed with product. 

Credit some of that international freight volume to the rapid production and movement of Personal Protective Equipment (PPE) in response to a global health crisis. At the same time, retail supply chains have been irreversibly impacted by the functional success of e-commerce. Until some of the demand cycles in both realms stabilize, predicting ocean shipping rates will be a challenge.

More importantly, the three major shipping alliances response to COVID-19 demands the attention of organizations that rely on global commerce and e-commerce logistics. Vessel operators have shown remarkable discipline by matching supply to demand volatility.

During the first half of the year, the three alliances (2M, Ocean Alliance and THE Alliance) constricted supply by canceling dozens of scheduled voyages with the intent to remove excess capacity. However the net effect was scarcity of space, i.e. rates were increased monthly or bi-weekly and started to build. Representing 21 ocean vessel operators and roughly 10 million 20-foot equivalent units (TEU), these alliances have maintained rate discipline as the retail supply chain began to open in July in August. 

In the past, increased demand for service and the prospect of rate increase motivated operators to add sailings. With a strategic approach that ensures vessels are filled before others are added, ocean carriers keep upward pressure on rates that are roughly 80 percent higher in a year-over-year comparison to 2019.

This strategy supports a more dependable service for international shippers as it creates more reliability for in-country logistics operators, but if the alliances maintain this discipline, plan for rates to stay elevated. Solid bookings will continue through October and contingency budgeting should be a focus for major importers.

Persisting Pinch Points Create Risk

As we approach what has traditionally been a calm period at the end of the e-commerce logistics peak season, the ports of Long Beach and Los Angeles are at capacity. Historically higher volume for this time of year will undoubtedly spur downstream challenges deep into Q4 and into 2021. 

Finding available chasses to support container movements will continue to be a problem into December. As these containers and chasses (to a lesser degree) move in country and on the rail, it is hard to balance the need for equipment during a disruption-filled year like we’ve had. Vessels hoping to expedite movement for the last wave of peak season freight to North America are now waiting for containers to come back to port so that have something to load and ship. 

We know there will be an end to this kind of imbalance, but we have not gotten there yet.

The timing has never been greater for organizations to assess their entire import and export supply chain. Look for places to increase efficiency. Identify pinch points that elevate risk that emerges in times of global volatility. At this point, organizations should have complete awareness of the supply chain challenges arising during COVID-19 and address their preparedness for the next global disruption, both economically and around traditional risk areas. 

Trade Regulations and Tariff Battles Require Eye on Compliance

Plaintiffs representing a diverse set of industries are suing the U.S. Trade Representative (USTR) for relief from China 301 tariffs. The argument: tariffs implemented without sufficient advanced notice caused unfair and improper financial harm to their organizations. Many shippers have been negatively impacted, some to a crippling point, and they are looking for any dollars they can get.

These organizations – including some of the world’s largest brands – will not likely get complete relief, but their actions demonstrate that businesses will not sit idle when trade laws are put in place, as they argue, without warning.

Meanwhile, implementation of the trade regulations intended to replace the North American Free Trade Agreement continues to carry some unexpected consequences.

The U.S.-Mexico-Canada Agreement (USMCA) is having the largest effect on businesses close to the automotive supply chain, but many companies were lulled into thinking there would be limited changes in the new agreement. Updated documentation is required to execute cross border entries. Make sure to review your international trade compliance processes to avoid this type of needless risk caused by what seems like a simple change in regulations. 

E-commerce Supply Chain: 6 Challenges

The e-commerce supply chain challenges this year will be as long a family’s shopping list.

Here are the top 6 challenges to consider during the holiday peak shipping season.

  1. The traditional holiday peak converges with elevated online demand due. E-commerce sales will match or surpass brick-and-mortar. Consumers have multiple ordering channels to tap. E-commerce supply chain fulfillment and delivery operations need to respond to this decentralized − and unprecedented − demand-pull.
  2. Many supply chains remain out of kilter, one of the pandemic’s many legacies. U.S. inventories are at their lowest levels in five years, according to several analysts. Stock-outs have been common. U.S. imports are spiking. However, those goods may not reach store shelves or distribution centers in time to satisfy peak consumption needs.
  3. Parcel networks have been overwhelmed by demand since March 2020. This has led to inconsistent delivery performance across the board. National and regional parcel carriers have maxed out their fulfillment and distribution infrastructures. Late deliveries mean that consumers will be forced to accept holiday service levels that are beneath their expectations. If there is good news, it’s that e-commerce consumers are aware of the problems and will be more tolerant of slower delivery. What they demand, and should expect, is access to real-time information about any service issues.
  4. Consumers may order goods earlier than usual, allowing the supply chain to spread out delivery timetables to create a “load-leveling” effect. That would be positive news, but it should not automatically be counted upon.
  5. Warehouse space is severely constrained. Retailers with brick-and-mortar exposure need to position stores as “forward fulfillment” nodes. This allows orders to be pulled from store inventory and delivered over relatively short distances. Store networks will also support what is expected to be major demand spikes for in-store and curbside pickups of online orders. Pure-play e-tailers without store networks need to get creative.
  6. FedEx and UPS are levying meaningful peak surcharges on volumes from their largest customers. The U.S. Postal Service imposed the first peak surcharge in its history. Carriers say the fees are needed to offset their higher costs to serve. That is true, up to a point. Demands on delivery networks will be unprecedented, and carriers are pricing their services accordingly. Companies will have to consider this in their free shipping strategies to maintain profitability.

THE CLOCK IS TICKING

Retailers relying on the e-commerce supply chain are racing the clock and capacity constraints during holiday peak season.

Is it too late for shippers and retailers to get their holiday house in order?

Not necessarily, but it will take fast action and deep e-commerce supply chain planning. The challenges, as we’ve laid out, are immense. One key is to get ahead of the “demand curve.” When shippers gain visibility into end demand, they can prepare and execute a plan that enhances customer satisfaction and does so profitably. After all, meeting customer demands while losing money in the process is the hollowest of victories.

Managing the upstream channel is just as critical. Calibrating inventory flows with replenishment needs is a year-round challenge, and especially so during peak. The challenge is magnified this year with the headwind of COVID-19. Retailers need a clear line of sight into supplier production so they can forecast their inventory replenishment. In normal times, lack of visibility can lead to costly over-ordering to ensure adequate buffer stock. This season, however, over-ordering may be an adequate response, given how and where the inventory is positioned. 

During CSCMP’s EDGE 2020 Virtual Conference, Target Executive Vice President and Chief Supply Chain and Logistics Officer Arthur Valdez advised to “not be afraid to overreact.” That may sound counter-intuitive, but it can be an appropriate step during this peak. Target will be investing heavily in transportation services with a focus on improving delivery timing, Valdez said. Again, that appears to run against the grain as transport is considered a cost center. Yet it will be less costly than failing to execute deliveries because capacity is not available. A seasoned logistics partner can map out a strategy to leverage a customer’s existing assets, as well as to bring in outside capabilities that profitably meets customer demands.

This is especially important as shippers encounter an increasingly complex surcharge environment constructed by FedEx, UPS and, to a smaller degree, USPS and regional carriers.  High-volume FedEx and UPS customers could be looking at surcharges as high as $4 to $5 per piece. These are by far the most expensive surcharges we have ever seen. They can spell the difference between peak season success and failure, even if everything else breaks right. Any shipper expecting to tender significant traffic to either or both must be able to navigate those surcharges all within the framework of their logistics execution.

Amid the coming storm, it may be hard for folks to get a good fix on demand profiles beyond the holidays. But it pays to do so. For example, we may see another e-commerce surge early next year as fears of a combined COVID-seasonal flu cycle keep more consumers homebound. Already, we are seeing 2021 budget plans being adjusted to account for the lingering effect of COVID-19. We also expect similar peak season patterns for the next 3-5 years even after a coronavirus vaccine is approved and distributed. A strong logistics partner not only can help you get through 2020. It can prepare you for 2021, 2022, and beyond.

From NAFTA to USMCA: All Trade Agreements Are Not Created Equal

Furthermore, many companies focused on overcoming operational challenges of the pandemic have been able to delay response to a regulatory action that’s been outside the spotlight.

Until now.

On July 1, the United States-Mexico-Canada Agreement (USMCA) replaces the existing requirements of the North American Free Trade Agreement (NAFTA), with an exception for certain automotive products that will have a three-year transitional period. Many elements of NAFTA were retained in the new agreement; however, there are distinctions in the USMCA that require review and consideration by trade participants to ensure they effectively manage compliance during this program transition. According to a recent survey, there appears to be some confusion among supply chain managers on how to implement these changes and mitigate non-compliance risk to maintain company profitability.

Importers’ goods that qualified under NAFTA may also be eligible for USMCA; however, there are subtle changes that may impact those determinations. USMCA due diligence should be conducted by all trade participants as a demonstration of compliance, for all companies participating in North American trade between the United States, Mexico and/or Canada.

5 Differences Between NAFTA and USMCA

  1. Importers will no longer be required to complete a formal NAFTA certification document. A certificate of origin may now be completed based on information provided by the producer. U.S. Customs and Border Protection (CBP) is not mandating a standard format for certificates of origin as long as they contain all of the required data elements. A best practice is to have the certification in hand before making a claim. Previous NAFTA certificates and certification documentation under USMCA must be kept for a minimum of five years.
  2. The de minimis threshold increases. NAFTA’s threshold of 7 percent for FOB value increases under USMCA to 10 percent. The de minimis for textiles and apparel is different.
  3. The terms of the USMCA will remain in effect for 16 years, after which time the parties can choose to revisit and/or renegotiate those terms, or withdraw from the agreement altogether. The agreement is also subject to a review every six years, at which point the United States, Mexico, and Canada can decide whether or not to extend the agreement if they feel doing so would be beneficial.
  4. Merchandise Process Fee (MPF) refunds will not be made on post-importation claims. An importer who fails to claim preferential tariff treatment at the time of entry will not be able to recoup their MPF through a post-summary correction or reconciliation later.
  5. Changes were made to the Rule of Origin for various goods (e.g., manufactured goods, pharmaceuticals, healthcare products, textiles and apparel, agricultural goods, etc.). However there are significant changes within the automotive sector concerning eligibility based on regional value content. In general, USMCA now requires the total North American-based content of a vehicle to equal 75 percent (up from 62.5 percent). USMCA also requires that 70 percent of a vehicle’s steel and aluminum must originate in North America.

How should importers prepare for the USMCA transition to ensure compliance?

Importers should carefully review their imported goods to ensure they understand the new rules of origin and can verify that they qualify under the new agreement. Binding rulings that determine parameters of origin determination under NAFTA will be invalid, and a new binding ruling will be required for USMCA.

We also recommend performing a comprehensive review of imported goods through internal or external compliance means to demonstrate USMCA Compliance due diligence. For example, there may be cases where goods did not qualify under the terms of NAFTA but may now qualify under USMCA.

And above all else, it is imperative that importers maintain a proper record-keeping system. This means you must document where all of your goods originate, and you must have on file a detailed description of your sourcing, production and determination process that clearly defines that the goods qualify.

Our Experience is Your Compass

It is a grave error for importers to assume their goods qualify under USMCA, even if they were NAFTA eligible.

To help guide you through the necessary process to determine whether or not your products do meet USMCA rules, Transportation Insight’s team of international compliance consultants are ready to help you outline and execute a personalized scope of work plan to ensure your USMCA program is in full compliance.

While your focus today on maximum supply chain efficiency can improve your ability to meet arising market demands, a partner with expertise in international trade compliance brings you peace of mind – and so much more. We take over the work of helping you navigate through the change from NAFTA to USMCA so you can progress toward global supply chain mastery.

Make sure your trade compliance processes are updated to protect your business financial risk that emerges during the implementation of complex new regulations. Contact one of our global trade compliance experts today for a free consultation.

7 FAQs Answered with Supply Chain Visibility

“They have better visibility into the structure of their supply chains. Instead of scrambling at the last minute, they have a lot of information at their fingertips within minutes of a potential disruption. They know exactly which suppliers, sites, parts and products are at risk, which allows them to put themselves first in line to secure constrained inventory and capacity at alternate sites,” concludes Arizona State University professor of supply chain management Thomas Y. Choi.

Peeling into the physical layers (where is my shipment?) and virtual layers (which customer/SKU combinations are profitable?) of supply chain visibility, business leaders can uncover data evidence to drive network decision-making. Combined, information gathered through both layers of visibility answers questions that improve cost control and service to customers.

Where and when?

At its most basic, supply chain visibility gives you physical location of a product in the supply chain. This can include where an inbound shipment is, where you have inventory, or when a shipment will arrive at a customer. When you have this type of visibility, you can make decisions around production scheduling, facility/customer alignment and proactive communication to customers for delivery expectations. Visibility allows the awareness needed to provide the highest level of customer service while maintaining cost control.

Where are the suppliers?

Understanding your suppliers’ geographic location is critical not only to executing a robust network design but also in mitigating risk. Understanding the production and shipping locations of your suppliers during a period of disruption allows you to execute contingency plans developed during modeling exercises.

For instance, when an overseas disruption affects a foreign supplier, maintaining a geographical awareness of primary supply chain partners is vital. Combine location information with advanced understanding of alternative sources and you can facilitate a rapid crisis response that protects customer experience and prevents other breaks in the supply chain.

Where are the customers?

Your customers and their demand drives everything about your supply chain. From the locations of your distribution centers to the shipping options available to meet customer service requirements, having a detailed understanding of the concentration of demand means you can work backwards to develop efficient and reliable options to keep them happy.

Take for example an emerging market in a different region of the country. Customer expectations for delivery are very high. Not providing a high level of service is not an option. Options exist to leverage expedited freight but may make the price point too high or erode the margin on the product. A partner warehouse may be a good option to position inventory to meet service levels without investing in owned brick and mortar.

Where is the inventory?

Your physical assets connect the vendor and customer locations. These assets allow you to position inventory to mitigate risk while providing the service customers expect. Having complete visibility to where and how much inventory you have is critical to making smart sourcing decisions:

  • From which location can I fulfill the order?
  • Is it cheaper to consolidate or split the order?
  • Can I drop ship?

Understanding all of the inventory options available enables you to leverage your vast web of connections throughout your supply and customer base to delight your customers.

Can I access all my data?

Your supply chain generates a tremendous amount of data. Accessing all of it is not easy, especially when you are working across multiple vendors, customer segments, product categories or transportation modes. Consolidating your information across disparate systems and sources is the first step toward gleaning actionable improvement opportunities from your supply chain data. The more access to information you have, the more it can impact your bottom line.

An expert partner with significant technology capabilities can compile disparate data in an accessible repository and provide it in personalized dashboards, as well as apply experience-inspired analysis. Accessing that analysis in the same platform as operational data and tactical execution activities is critical to supporting quick, evidence-based decision-making.

What is cost to serve?

For each product and customer, executive leadership needs to understand cost to serve, which reflects all the activities and costs incurred as movement and conversation occurs from vendors through your network out to the customer. Cost to serve metrics provide actionable information by enabling visibility into the profitability of individual customers and products, and finding a fulfillment configuration that balances service and margin.

By utilizing actionable data derived from historical shipment information and running what-if scenarios with regional data and characteristics, you can develop the most responsive and efficient supply chain that meets customer demand for the best cost.

Why is my cost going up/down?

Leveraging robust score cards can provide insight into the factors that are driving your financial performance. Not all drivers are completely controllable. You cannot make your customer order from a different location or change what they want to buy. There is an old adage “you cannot change how other people act, only how you react to them.” The same holds true for the supply chain.  Develop plans to react to supplier performance and customer behavior to set up your company for success.

It is absolutely critical to have an unbiased party developing and interpreting the scorecards and information produced. You want objective viewpoints that highlight all options available to contend with dynamics in the marketplace. Not only do you want a view into your data but also what is going on within the market. In the new environment, it is more critical than ever to leverage every bit of available information across the marketplace.

Combine Layers for Master Vision

Physical visibility to shipment, service and costs can be accessed through very basic solutions that exist in the marketplace, some at low or no initial cost. Customization often requires additional investment, and visibility is black and white based on data made available by vendors, clients or carriers. A basic Transportation Management System provides tactical visibility to all of the connections in the supply chain, and it can enable cost savings.

Virtual visibility to all the activities that drive cost, service and reliability allows you to delve into the “what” and “why” around supply chain performance systematically and regularly. This requires investment in people, process and technology. The return on that investment: an enhanced ability to react to supply chain changes that impact performance. You also improve service to partners and customers.

Visibility does not just happen, and it is not free. Corporate alignment from the top down is required to achieve a complete solution. You want knowledgeable resources with broad experience to help guide you.

We created Mastering Your Supply Chain: Layers of Visibility to give you greater clarity into your end-to-end network. Read it today and uncover information you need to drive competitive advantage.

Supply Chain Visibility Needs Determined by Business Objectives

However, in the wake of a global pandemic where both short- and long-term effects are still emerging, there’s limited value in a rear-view look. This is especially true as North America emerges from a stay-at-home state. Organizations need a rear-view look, as well as in-depth awareness of current activity and the financial implications. Add contingency scenarios to requirements for companies pursuing supply chain visibility that can support the emerging “whack-a-mole” recovery where product demand and service requirements vary widely for customers across different geographies, depending on ebbs and increases in COVID-19 infection and business closure.

COVID-19 brought greater attention to the value of end-to-end supply chain visibility. Solutions for achieving that visibility are widely available, but not all solutions are equal. And not all visibility is the same. Your business objectives determine the level of visibility you need to make the best decisions.

What is Supply Chain Visibility?

Supply chain visibility means different things to different people. It covers everything from the physical “Where is my shipment?” to the virtual, like “Which customer/SKU combinations are profitable?” Depending on your role in an organization, you may be more concerned with the operational aspects of visibility or the more strategic. Either way, you need the information you need when you need it.

Beyond physical and virtual visibility separation, there’s the difference between real-time data and real-time access to data. When it comes to data, there is a lot of it, and it is coming from a growing diversity of sources – often separated within your organization by operational and functional silos.

An expanding list of technology-driven solutions offer varying degrees of visibility, and you can gain improved supply chain clarity through internal efforts and external partners. In weighing these options, it is important to consider:

  • Which solution is best for your business objectives?
  • How do you leverage information in business decisions?
  • What investments provides the greatest return?

Supply chain visibility can be complicated. It doesn’t have to be.

Peeling back layers of visibility, you gain an understanding of the information you need to plan and execute your day-to-day activities as well as adjust your strategy; react to changes that impact performance; and enhance your service to partners and customers.

Visibility, Mapping Key Disruption Planning and Continuity

The U.S. Armed Forces are a role model for logistics, and planning is critical to the military’s risk management focus. To quote General Dwight Eisenhower “Plans are useless, but planning is indispensable.” Companies have to be in a continuous planning mode, as we move through the recovery to account for these shifts in demand.

Effective planning, like military leadership during crisis, relies on visibility to a single source of information. When you have to go to multiple places to piece a story together, it takes time, and time can be costly.

Organizations that map their end-to-end supply chain create one foundational information source that can support business operations through disruption. As noted by Dr. Yossi Sheffi, director Massachusetts Institute of Technology Center for Transportation and Logistics, this requires supply chain mapping that goes beyond identifying company suppliers. It requires physical locations of supplier plants and warehouses. “For large and complex enterprise with thousands of suppliers around the globe, mapping is a massive exercise that cannot be done on the fly,” he says.

Likewise, mapping cannot be accomplished without awareness to all activities across your supply chain.

Mastering Supply Chain Visibility

Deep, multi-layered visibility is a fundamental ingredient in elevating your supply chain to its optimal performance. We created Mastering Your Supply Chain: The Layers of Visibility to help you uncover ways that your supply chain information can have a transformational impact on your bottom-line performance and your customer service.

Inside differentiate visibility options in the marketplace to help you identify solutions that best fit your needs. Read it today to learn more about how individualized technology solutions give you visibility to rate savings, optimization opportunities and behavioral changes across the organization that reduce cost.

The Logistics of Valentine’s Day: Signed, Sealed and Delivered

February 14 marks the most romantic day on the calendar: Valentine’s Day. It’s certainly not a cheap endeavor: The National Retail Federation estimates Americans will spend a record $27.4 billion on their showcases of love this year, with an average spend of $196.31 per person. 

While it’s not unusual to be loved by anyone, making sure every rose, heart-shaped chocolate box and sentimental card takes an unusual amount of effort. Valentine’s Day is the second busiest time of the year for shippers, behind only the Christmas season. And just like for Christmas holiday shipping, the logistics of Valentine’s Day highlights how the right supply chain network is needed to delight every end customer – no matter what product you’re providing.

We love and care for supply chains. That’s why I wanted to share some thoughts on the logistics of Valentine’s Day – so you can understand how suppliers and shipping companies ensure everything arrives on time – before the last candlelight dinner ends.

Flowers, Chocolates, and Cards: Managing Valentine’s Day From Multiple Fronts

With the shortest shelf life of all traditional Valentine’s Day gifts, fresh-cut flowers depend on the cold chain for success. Over 80% of flowers are imported, with most coming from Colombia. 

The International Trade Centre estimates over 500 million tons of flowers are sent for Valentine’s Day. After the flowers are harvested, the blooming buds are cooled to 35 degrees and loaded onto both commercial and freight aircraft for transport to the United States. 

At each point of entry, U.S. Customs and Border Protection officers thoroughly inspect every shipment for pests, disease and contraband. Once they clear Customs, it’s back to near-freezing temperatures for the flowers as they go to the warehouse, then the distribution center, before finally arriving at the florist. 

But what if there is a problem clearing Customs? Or a network disruption impacts a climate-controlled facility? Without the proper logistics processes – and contingency plans – one problem can quickly spoil the Valentine’s Day bouquet.

Many of these bouquets are accompanied by exquisite German chocolates. According to the UN Comtrade Database, 5.6% of all the chocolate imported into the United States comes from Germany. Getting the sweet treats to the United States poses an equally daunting task. 

While the chocolates can take an intermodal route into America, they have to be transported very carefully. After packaging, each load must be protected from moisture, humidity and temperature changes. The German Transport Information Service recommends all chocolates be transported in refrigerated containers to maintain the cold chain from start to finish. Doing that requires a lot of visibility to the product and its transit across the supply chain.

And what would these gifts be without the written words of love to accompany them? Hallmark estimates over 145 million Valentine’s Day cards are exchanged across the United States. The mid-February tradition is the second largest holiday for greeting cards, trailing only behind the Christmas season. 

As with anything you send through post or parcel service,  planning ahead is vital for mailing chocolate and gifts Based on the 2019 USPS holiday season estimates, sending gifts to APO, FPO and DPO addresses can take up to six weeks to arrive!If your loved ones are in America, you can still get away with Priority Shipping within the continental United States four days in advance. For those extreme procrastinators, a parcel carrier like UPS can guarantee delivery even if you are shipping on Feb. 13 – but it will cost you hundreds of dollars. 

Understanding the characteristics of your shipment – size, weight, destination and delivery timing – can help you avoid some of those costs, while still warming a heart at the end of the love line.

Tying The Logistics Knot 

In every stop, each of these gifts face unique challenges in their supply chains. Matching them all together requires an intricate dance that depends on every stage of the transportation process going nearly perfect. One mis-step in the supply chain, like exposing chocolates to moisture or keeping flowers outside a cold environment, results in a product that is unsellable.

Without proper planning and coordination of all the moving parts, your items could either arrive too early, or too late. Valentine’s Day gifts aren’t as effective on Feb. 13, and they’re completely useless on Feb. 15. 

The good news is that many of these situations can be mitigated using modern technology. While all the pieces are dependent upon each other to make Valentine’s Day pass without a hitch, technology plays a critical role in avoiding broken hearts.

To maintain quality, companies use robust logistics monitoring, modelling and execution tools. This supports planning for the most effective port of entry, warehouse and distribution center locations, and network reach. Often an enterprise logistics company helps analyze all these factors to determine the best route forward. Supply chain data combined with analysis supports  real-time decisions if there is disruption in the chain. 

Enterprise logistics providers also offer insightful observations when there are unique breaks in the supply chain. It is important to be able to trace and track every transportation activity in the best scenarios, just in case a contingency – or official record – is needed for the worst.

In those cases, the solution for wilted flowers is not the same as the solution for ruined chocolate. Sometimes it helps to have a partner that has experienced challenges in other just-in-time supply chains. They can bring an objective viewpoint to tie everything together and determine solutions if one piece breaks in the overall supply chains. 

We’ve created a map of your Valentine’s Day rose bouquet from the time it arrives in the U.S. to its last mile delivery to your door.