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  • Writer's pictureJeremy Conradie.

Supply Chain Discussion: Mining the Hidden Gems in Domestic Transportation

Courtney Davis is the director of logistics at CoreTrust. They are the leading commercial sourcing agency delivering contract savings to large corporations in the United States via an aligned membership and thus, scale. Similar to Nucleus, Nucleus also runs the logistics operations of our clients. He details how domestic transportation leaders overcame challenges presented by the global supply chain crisis.

He also talks about "the hidden gem savings", which are savings caused by process and operational improvements.

“With every solution comes a process. When you improve the process, you take steps out of it, and that's quantifiable. That’s a savings. You can help part of the operation to optimize the way they move product, and that can help an operation.”

The second gem that he talks about is information availability.

"On the internal side, it can help you level load your inventory. Having real-time, accurate fresh information helps you understand who's ordering, where they're ordering from, and [how to] better place your inventory.

At Nucleus, we agree. We can measure the baseline cost savings for our customers, but it can be harder to quantify the savings delivered through process improvements. But in our experience, we have found our 4PL process to result in savings of over 10% of operating costs. And since we run the operations of customers, the optimization isn't so much a single event or action, but an ongoing work in progress.

The third gem he talks about is sticking to a strategy.

“When you start making tactical knee-jerk reactions to stimuli in the supply chain environment, you lose your consistency. It creates confusion within your organization. So creating a long-term strategy is the best policy. I like to call it strategic mediocracy. If you look at anything, like investing or anything that utilizes a longer-term strategy in order to optimize whatever you're working on, if you stay consistent within the top three, not number one all the time, over a period of time, you always end up on top. That strategy works well throughout business as well.”

Source: Supplychainbrain

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