June 21, 2024

Why Supply Chain Visibility Doesn’t Equal Operational Efficiency

If you’re a BCO or shipper, you know there are many choices for supply chain visibility solutions on the market. They all promise accuracy, excellent reporting, and increased container supply chain visibility. In most cases, they deliver what they promise. However, they won’t impact your bottom line unless you have the expertise to analyze supply chain visibility and convert it into best practices for your operation.

Why Expertise Matters

In a recent survey of 450 Senior Supply Chain Decision Makers (InterSystems Creative Data Technology, 2024), 41% reported that one of their biggest challenges in demand sensing and forecasting was the lack of real-time visibility along the supply chain. Also, 30% admitted to being unable to analyze data promptly. Operational expertise provides service above and beyond visibility to help customers make sense of their data.

I don’t just need visibility. I need operators,” said one of our clients in an initial discussion of her needs.

She had subscribed to one of the most significant supply chain visibility suppliers on the market and was getting boatloads of shipment data. However, the data itself did not save the company money. Her company needed someone with expertise who could translate supply chain visibility data into actions to improve operations. She needed someone with experience to understand the entire import operation, manage the dray fleet, keep the warehouses informed, and leverage relationships with ports and shipping lines. She found that expertise with AV Logistics, using them as a one-stop solution for managing her containers from foreign origin to empty return.

AV Logistics augments supply chain visibility with cost-saving management for operational efficiency. We think based on data and take responsibility for making tough decisions. We do this in five ways.

We Integrate Information for Action

The same survey referenced above asked supply chain decision-makers, “What is holding you back from achieving full orchestration of your supply chain?”  46% of respondents said that “limited to no integration of disparate sources of data throughout the supply chain, including systems and applications,” is holding them back. (InterSystems Creative Data Technology, 2024). AV Logistics recognizes that supply chain managers are inundated with information to analyze and direct operations. It’s daunting, but it’s what we do at AV Logistics.

We begin by taking a step most others don’t take. We verify your supply chain data. We find and correct supply chain errors so that the data we’re working with is as accurate and up-to-date as possible.  We then consider our customers’ operations and make appropriate recommendations for streamlining deliveries. These solutions might include better supply chain visibility or programs to reduce operating costs. Whatever you need, we outline a plan to create efficiencies that will integrate your data into systems and applications to increase your profitability.

We Manage Your Dray Fleet

One of our largest clients approached us to address their slow delivery times and rapidly rising accessorial costs. They wanted to improve supply chain visibility and utilize data to make better decisions. They trusted the management of their entire fleet to the experts at AV Logistics and quickly began seeing results.

With our operational expertise, we made the right decisions at the port, gained better rail and port traffic control and reduced turn times. We managed their containers based on free time to avoid demurrage and per diem costs. We also made decisions regarding bobtailing and off-site storage. We even tracked their fleet to identify underperforming drivers and address their issues.

We Reduce Costs

One hallmark of having someone with expertise handle your logistics is lower accessorial costs, including demurrage and per diem. For one client, we successfully lowered their per diem and demurrage costs by 65% in the first year we worked with them. Other clients have told us that their demurrage charges have all but disappeared since AV assumed management of their logistics.

We also strive to develop technology tools our customers need to operate more efficiently. For example, our per diem management program simplifies per diem invoices. With our program, once a per diem invoice is uploaded, our technology reviews the invoice to verify accuracy. Often, per diem invoices have errors or incomplete data, so we act as liaisons with the shipping line to correct or waive invoices on your behalf. The result is often a reduction in per diem charges.

We Keep Warehouses Efficient

We hear repeatedly from clients that our container management “eliminates surprises” in the warehouse. This ability comes from the expertise of the AV Logistics team in conjunction with Coreviz our visibility platform. Both are needed to keep warehouse managers up-to-date about schedule changes because they need to be informed to prepare!

Our capabilities free the warehouse manager from the tedium of tracking the movement and ETA of every container. Warehouse managers also have access to Coreviz and container status, but the AV Logistics team is attuned to how new data affects the entire supply chain. Our container management keeps warehouses informed when containers will hit the ramps.

Our Relationships are Your Relationships

As an established player in port logistics, we have worked with the major shipping lines and ports rimming the United States for more than 20 years. Our relationships matter when we work on behalf of our customers. We maintain a vast network of cooperating supply chain partners who regard us as a reliable, trustworthy company with integrity. They are receptive to our requests because we believe in helping others grow with us. Working together, we can bring savings to our customers and support our supply chain partners.

Isn’t it time to take charge of your operation with a partner who offers supply chain visibility as well as expertise? Contact us at 888-209-3524 for a presentation on how we can make a difference in your company today.