In this candid interview, Mark shared a few thoughts about how it is possible for any comparatively smaller company to h
ADVERTORIAL
Go Big
How to Ship like A Large-Retailer – And Why You Should
In recent years, Australian wholesalers and retailers have faced a number of formidable challenges such as aggressive pricing competition, the ongoing arrival of highly powerful global players, and the need to spread inventory across multiple channels. The bad news is many of these issues are not going to go away. However, the good news is you can still flow products like a large-retailer by using a smart solution, which targets Asia sourcing and origin management into Australia. “When it comes to importing from Asia, Australia’s largest retailers have excelled in trimming their supply chain costs, increased flexibility of product flow and reduced inventory dwell time. The Australian market has shifted, it is now more aligned with consumer demands, thus resulting in a shift from push to pull inventory supply models ,” said Mark Haslam, Director Oceania of APL Logistics Australia. In this candid interview, Mark shared a few thoughts about how it is possible for any comparatively smaller company to have the same dynamic supply chain that enables large retailer-like logistic landed costs.
When you talk about trimming first-mile shipping costs and timelines, what are some of the key things that come to mind? Many large-retailers’ supply chain efficiencies are fueled by high volumes. Among other things, these volumes make it possible for them to simultaneously do two important things. Firstly, build economies of scale enabling high utilisation and consolidation of products, and secondly, product placement being aligned to consumers‘ demands. Advantages include having better inventory flow, reduction of mark down’s, reduced handling and logistics costs, better forecasting and flexibility to react to the market.
Why is shipping in a timely fashion so important? Today, the average Australian can look forward to shorter lead times as various retailers try to differentiate themselves via better speed and service, and greater adoption of e-commerce.
So what exactly can companies do? After all, they cannot just snap their fingers and instantly develop higher volumes. These companies cannot replicate large-retailers’ volumes. However, they can align their supply chain capabilities by using the same principles, like late allocation of inventory, ability to manage multiple flows, and visibility tools to enable flexibility and dynamic decision making.
Your company recently introduced a service that is designed to do just that - the China-Australia retail box. Tell us how that service works. APL Logistics’ China-Australia retail box helps companies with smaller shipping volumes to collaboratively combine their compatible retail shipments and destinations in order to develop more advanced supply chain models .
So they can take advantages of smaller and more frequent shipments to align with the customer demands, like what large retailers are currently doing? Precisely, that is just one of the advantages. APL Logistics Australia retail box also offers project customisations and other value-adding services performed upstream in China instead of Australia, where labour costs are considerably higher. It also enables local Australian companies to step into the global market place by holding inventory in upstream hubs.
Those advantages are highly helpful for cost-containment and flexibility – which can help companies manage their bottom line or be more price competitive. But what about timing and service? When companies consolidate their shipments collaboratively, it creates a steady flow of shipping volume that enables each company to cost-effectively ship small quantities of freight more often. Shipping via full container load (FCL) also means goods move faster because FCL containers do not have to be opened and reworked, unlike less than container load (LCL) containers at special hub ports. In fact many FCL shipments can go direct to stores or nearby distribution centers, and help to speed up orders fulfilment to customers.
No discussion of staying competitive would be complete without addressing the elephant in the room – or more accurately, the elephant that will soon be entering the country. How will Amazon’s upcoming presence change things – and how can this service be of help? The trend for faster deliveries will be accelerated; as will the need for omnichannel proficiency. Long order cycles will not cut it to the Australian marketplace of the future – and neither will uncompetitive prices. In order to remain competitive, companies are going to have to think smarter across every link of their supply chain, from beginning to end. Services like this could ultimately be a real game-changer.
Contact APL Logistics Australia at
[email protected] or
[email protected] Visit us at www.apllogistics.com and follow us on Facebook, LinkedIn and Twitter to get updates on our service offerings A member of the
Group
