Throughout the UK, companies are faced with a myriad of challenges to optimise their Contract Logistics operations. Here, Ian Brunt, Dachser UK’s General Manager Northampton, explains the key to fulfilling retailers’ and manufacturers’ stringent requirements lies in integrating their supply chains via global interlocking services and solutions.
Consumer demands are ever more stringent and those seeking to provide the best product value, delivery service and reliability of supply need to simulate where the most appropriate contract logistics location may be. They must also have a trustworthy and efficient logistics partner. These challenges have always existed, but external forces are always at play altering the market environment.
Initially, post-Brexit, the main focus of the logistics operator’s customers was on getting their products to their own customers during difficult times of transition. Now, as a relative level of normality is returning, the focus has rightly turned to not only a high-quality service but also an expectation of faster lead times and a cost-effective solution. Now the industry has many solutions in place. At Dachser we believe this is where logistics companies which have integrated networks and services are able to offer advantages in the future.
Having a connected network that can adapt with the varying business requirements as market forces change has distinct advantages. Sourcing of product and/or materials can be from across multiple countries with variable volumes from each. There may be requirements to relocate stock holding from one location, or indeed country to another at short notice. New products may be introduced, and market growth may demand rapid changes in levels of supply and inventory. All these eventualities can be accommodated.
An integrated service provides synergies beneficial to production, transit times and cost profiles. Such a service offering develops customer confidence in the logistics provider and securing financial benefits which can then be part of the customer’s package to its customers.
In addition, the current contract logistics market in the UK is very competitive with a lot of available warehouse space. This is leading to a very aggressive pricing position, which is not sustainable in the long term.
Coupled with higher employee and energy costs across all industries, the situation will become increasingly challenging in the future from a cost stability perspective. Logistics providers will therefore have to offer more value to customers to win their business. A so-called interlocked service solution will be advantageous to logistics operators in attracting and retaining customers long-term.
At Dachser we can truly offer our customers an interlocking option. We have the ability to combine our Road, ASL (Air & Sea Logistics) and Contract Logistics activities into one seamless platform delivering for our customers a truly end-to-end supply solution.
Our network gives a guarantee of high-quality pan-European road connectivity with contract logistics abilities at our warehouses throughout the continent. Added to this our Air & Sea Logistics locations are strategically positioned across the globe.
For UK customers we have a market leading export offering via our Smart Border Connect solution, which seamlessly connects the UK with Europe. As more and more exporters choose to minimise the impact of post Brexit trading conditions on their EU customers by shipping on DDP Incoterms, Dachser has developed a scalable, cost-effective solution, to meet this growing demand to level the playing field for UK manufacturers up against EU-based competitors.
A final advantage of the integrated logistics approach is an in-house bespoke IT platform which interconnects with all Dachser locations. Such a unified system avoids data slippage and errors in messaging that can occur from system-to-system interfacing.
Truly integrated logistics therefore can provide the customer with transparency, reliability, flexibility and beneficial synergies on cost and efficiency in processing data as well as delivering goods on schedule.
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