In today’s reality the logistics industry faces significant challenges from both the demand and supply side. For example, global disruptions cause bullwhip effects with higher peaks and dips in warehousing demand, while at the same time it is getting more difficult to find the right personnel when these peaks arise. Due to increasing inbound-outbound imbalances, occupancy has structurally increased and it is harder to find additional storage space. Consequently, logistics warehousing operations cannot be executed as efficiently as in the past. Some logistics companies now even confront their customers with additional ‘occupancy surcharges’ when occupancy exceeds certain levels.
The logistics industry seems to be in a similar situation as many of their manufacturing and retail customers were in few decades ago: facing a clear need to embrace forecasting and planning. High-quality forecasting and planning can absorb the imminent demand and supply pressures without the need for heavy capacity investments or uncontrolled short-term costs. Simply by preventing short-term issues before they arise. For example, securing enough additional flex workers for a foreseen peak in demand, or freeing up storage space prior to an expected increase of overall stock levels.
The good news is that it does not have to take decades to make a step up in this area. Logistics can profit from the proven forecasting and planning best practices that have been developed for their customers throughout the years. EyeOn Planning Services has bundled these best practices and related data science capabilities in recurrent services for its customers. This allows logistics companies to immediately harvest the benefits, while following a steep learning curve on how to effectively acquire actionable insights in ‘what happened’ and how to accurately forecast and plan ‘what is coming’.
Frontrunner logistics companies recognize the need to absorb best-practices in forecasting and planning. They see that now is the moment to plan further ahead and get ready for the years to come. By doing so these companies will experience more control and efficiency, ensuring a smooth operational process on the short-term, and preventing the need for costly firefighting.
This will give them a clear competitive advantage compared to industry peers sticking to old habits!