After a tumultuous and challenging 2021, 2022 is shaping up to be another tough year for shippers as they contend with several issues that are likely to drive up their freight costs.
Faced with escalating freight rates and deteriorating service levels that have slowed down the supply chain circulatory system, savvy shippers in 2022 will be focused on three key areas that will be crucial to supporting their supply chain activities.
First, visibility will top the list of “must-have” tools that shippers will need to manage the flow of inventory into their organizations and orders being delivered to their customers. Shippers will need to know where their freight is so they can plan accordingly.
Second, companies will be looking at “big data” and artificial intelligence (AI) capabilities that extend their view into their customers’ environment and improve their forecasting and planning capabilities. This data will also be used to gather data to support discussions that shippers will be having with their customers to explain adjustments in pricing based on an individual customer’s requirements and buying behaviors.
Finally, look for shippers to move beyond key performance indicators (KPIs) and increasingly focus on key performance predictors (KPPs), issues that are likely to occur that could result in supply chain disruptions.