In today’s dynamic business environment, companies are continuing to face the rising costs of raw materials, labor and transportation. This puts pressure on CPG business leaders to reevaluate their supply chain strategies to increase their bottom line and maintain margins.
In response to recent global disruptions, nearshoring – or relocating production and manufacturing facilities closer to the primary market, such as Mexico or Canada – has emerged as a strategic business solution for companies looking to optimize their supply chain sustainability. According to Deloitte, 54% of companies plan to nearshore part of their operations within the next two years. Nearshoring aims to reduce transportation costs, shorten lead times and enhance operational efficiencies. The volatility in global logistics and consumer behavior has forced suppliers to consider 3PLs that have transportation hubs strategically located in close proximity to these nearshoring locations.
In today’s inflationary market, suppliers face the daunting challenge of navigating ever-evolving landscape retailer compliance requirements. According to McKinsey, CPG penalties due to increased retailer compliance requirements could exceed $5B annually. The ability to meet these retailer requirements has become not just a matter of a competitive advantage, but a key driver for business success and profitability.The complexity of these standards imposed by different retailers have made it increasingly challenging for suppliers to keep up. Whether it’s packaging and labeling or inventory management and delivering On-Time and In-Full, failing to meet retailer compliance requirements can result in decreased in-stocks and loss of market share, ultimately impacting your bottom line.
That is why the time is now to partner with a 3PL that can serve as your compliance authority to produce a more efficient, resilient supply chain while increasing in-stocks.
Compared to Less-than-Truckload (LTL), where products are handled at multiple stops from supplier warehouses to retailer distribution centers, our Retail Consolidation Services combine shipments with other brands to streamline the transportation footprint and drive cost savings. Suppliers achieve a more cost-effective and efficient retail supply chain and benefit from consistently increased in-stocks and sales.
The shift in rising inflation rates, higher consumer expectations and significant supply chain disruption have made the selection of an integrated retail logistics partner a strategic business decision.
Partner with The Retail Logistics Experts to drive operational excellence, increase profit margins and accelerate business resilience.
Partner with The Retail Logistics Experts to drive operational excellence, increase profit margins and accelerate business resilience.