Blog

The Importance of a Proactive Supply Chain & Logistics Network Over a Reactive One

Last modified: July 3, 2018

In today’s highly competitive global marketplace, many third-party logistics providers have lagged behind in technology and trends resulting in a reactive approach to transactional logistics rather than a proactive supply chain approach to strategic logistics. While the reactive method may be appropriate in limited circumstance, implementing a proactive line of attack will optimize the worldwide supply chain, now represented by multiple players across numerous borders.

Disadvantages of the Reactive Approach

With vast amounts of data being transmitted instantaneously, the reactive approach represents a significant competitive disadvantage as well as a method that can produce higher risks and threats. Moreover, this transactional process to logistics services frequently means that a service provider responds to client requests for piecemeal services. While the transaction-based 3PL may indeed provide effective and efficient responses, the identification of disruptions and development of solutions remains with the client. In addition, the service provider has a tendency to minimize its investment while the client works to benefit from improved processes. Thus, the service provider has no vested interest in the improvement process and becomes a subsidiary player.

The Proactive Supply Chain & Strategic Logistics Service Provider

Increasingly, the proactive supply chain and strategic approach to partnering with a 3PL results in added value and reduced waste in the entire supply chain. The service provider seeks out opportunities for improvements, examines each mission-critical point along the supply chain and maintains the dialogue with the client to implement strategies with value-added propositions.

As a result, the 3PL is driven to exceed expectations rather than simply satisfy client requirements. However, this innovative approach requires the 3PL to commit to continuous commercial and technical capabilities that allow it to initiate, develop, propose and implement proficient solutions as well as predict the likelihood of disruptions and mitigate the potential damage. Not all providers can do this. Through its comprehensive program, Flash Global establishes a partnership with its clients providing a proactive supply chain approach, and through collaboration, Flash Global provides its clients access to deep expertise and a proprietary supply chain modeling system for real-world scenario planning. Rather than reacting to disruptions and rushing to minimize losses, the Flash Global system offers:

  • An end-to-end worldwide supply chain platform customizable to individual needs.
  • A robust install process that includes the development of an individualized playbook for optimizing operations.
  • Scalability for quick expansion in the global marketplace.
  • Processes for achieving and exceeding ROI targets.
  • Increased visibility along the entire supply chain for both forward and reverse logistics.

Further, a partnership with Flash Global gives a client access to an ISO 9001:2008 certified company with 35 Six Sigma Green Belts and three Six Sigma Black Belts, each committed to actively seeking out opportunities in cost savings and streamlining mission critical logistics to benefit the client.

Thus, establishing a collaborative relationship with a proactive supply chain service provider means a continuous engagement between partners to uncover innovative methods for improving processes. Each trading partner along the network gains visibility into other partner’s supply chain network to drive down costs and enhance service levels. 3PLs proactively alert stakeholders to potential changes or disruptions in shipments giving partners along the line the information available to their clients and drawing them into the collaboration for solutions. Greater transparency and real-time data throughout the transaction means fewer surprises for the end receiver.

Strategic means Holistic: From Onboarding to Execution to Ongoing Analytical Iterative Improvement

Strategic logistics management looks at the entire supply chain in real-time, seeking out greater efficiencies, predicting disruptions and designing solutions that produce savings and exploit opportunities. For instance, integrating the onboarding process of a large number of carriers will reduce reactionary, manual interventions by creating a network that improves collaboration among partners. This strategic network enhances communication between trading partners and facilitates the sharing of critical information about capacities and rates across multiple modes, while providing insight into specific trends, risks and potential impact.

Using Flash Global’s FlashTrac system connects collaborative partners along the supply chain operating network, and organizations benefit from proactive, comprehensive practices that improves the flow of inventory, reduces costs, enhances quality and exceeds customer expectations.

Indeed, Flash Global’s proprietary system gives clients greater control over their worldwide supply chains. The system provides capabilities to capture transaction data across the network and translate that data into actionable information. Above and beyond that, Flash collaborates with its clients in designing integrated solutions that seek to exploit opportunities presented by risks.

Flash Global offers a wide array of global resources, innovative technology and compliance expertise. Flash optimizes cost savings, ensures compliance and maximizes operational efficiency, and its systems are implemented quickly and seamlessly, frequently in 45 to 60 days. Their integrated services include:

  • Trade and compliance.
  • Inventory management.
  • Asset recovery.
  • Order management.
  • Recycling.
  • Customized, flexible solutions.
  • Warehouse services.
  • Importer and exporter of record.
  • Robust reporting and big data analytics.
  • Field service.
  • Network modeling.
  • Transportation.

Ready to benefit from a collaborative relationship with a 3PL and realize the benefits of a proactive supply chain over a reactive one? Flash Global has presence in over 80 countries and the ability to implement its strategic programs and vision quickly and easily. If you are want to take your supply chain global, Flash is your partner. Contact us today.

Further Reading

Case Studies

GE Homeland Protection

May 17, 2016

GE Security’s Homeland Protection is a leading provider of products and services that defend personnel and property in airports, government building

Read More

White papers

Flash Global Capabilities

May 17, 2016

Knowing what's possible within the modern global service supply chain is the first step in the path to maximizing and optimizing your post-sales suppl

Read More

Blog

4 Key Areas for Managing Supply Chain Risk in the Global Supply Chain

Mar 11, 2015

Due to increasing customer demand and competitive pressures, many startups, small businesses and larger enterprises face restructuring their organizat

Read More