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Retailers Vaccinate Supply Chains Against Coronavirus

Parcel shipping technology helping retailers cost-effectively shift supply chain inventory

In response to the coronavirus outbreak, many retailers have closed stores and factories in China, disrupting their supply chains – on top of transportation restrictions already limiting travel to and from the country. Supply Chain Dive details how Gucci’s parent company and Logistyx client Kering recently closed 50 percent of its store network in mainland China and is leveraging Logistyx to reallocate its inventory in an attempt to mitigate the impact of the virus. Other brands like Apple, Ralph Lauren and Starbucks are following suit by closing retail operations in China.

However, as Supply Chain Dive points out, retailers will have to determine the best way(s) to move inventory out of China to stores in other regions, which could prove increasingly difficult as demand for various modes of transportation grow and cargo capacity becomes more limited.

Many retailers’ supply chains are already starting to feel the strain of mandated quarantines and store closings from the coronavirus outbreak. While many brands build a buffer inventory into their supply chains, now’s the time to initiate a contingency plan for redirecting inventory to retail stores in other regions to diminish any further fallout.

So how can brands move inventory quickly at the least expensive cost? By staying nimble, and a Transportation Management System (TMS) for parcel shipping can help. A TMS for parcel shipping enables retailers to quickly scale their shipping operations while keeping costs in check by automating processes to easily measure actual transportation costs and identify opportunities to deploy optimal parcel delivery strategies.

TMS for parcel shipping solutions offer a software-as-a-service (SaaS) delivery model and advanced features that enable retailers to be more agile and make rapid, cost-effective inventory shifts. Logistyx’s TMS for parcel shipping empowers retailers to automatically incorporate best practices for parcel transportation management, including:

Parcel consolidation

For retailers needing to shift inventory and ship large amounts of orders to various regions of the world, there’s no need to pay the highest price for every parcel. Parcel consolidation can help keep parcel shipping spend in check. Once retailers move large quantities of product from China to other countries, smaller parcels will ship to different stores to achieve the right inventory mix across the retailer’s global footprint. Retailers utilizing a TMS can save on shipping costs by consolidating parcel shipments and finding the best rate across carriers for any destination.

Mode shopping

With airlines increasingly cancelling flights in and out of China, retailers are left to consider other modes of transport. A TMS for parcel shipping allows retailers to uncover the ideal shipping method to achieve the best value for each shipment and parcel. Leveraging various carrier-compliant routing tools for parcel, less-than-truckload (LTL), truckload (TL) and regional parcel carriers enables retailers to shop for the optimal mode of parcel transportation.

Tapping into a broad network of global carriers

An expanded global carrier network provides scalability with the ability to compare rates between carriers and the individual services they offer, giving retailers the best value for every destination, delivery time and product.

Cross-border compliance

Moving goods from closed stores in China undoubtedly means retailers will be making international shipments in high volumes, so to rapidly make these inventory shifts, they’ll need to ensure they have a solution provider that guarantees cross-border compliance. A TMS for parcel shipping can help retailers automatically generate accurate and complete labeling and documentation for every shipment to avoid lulls in delivery or unexpected delays at customs, saving time and money.

To discover how Logistyx can cost-effectively help brands manage unexpected inventory reallocation and scale shipping volumes, contact us today.