Margherita Bruno, Editor, Port Technology International, Interviewing Brendan Heegan, Founder and CEO, Boxzooka
In today’s dynamic landscape of maritime logistics and shipping, the role of multi-carrier delivery options extends far beyond merely enhancing customer satisfaction. This interview delves into how these strategies are revolutionizing the way online retailers manage their supply chains, ensuring not only the efficient movement of goods but also significant cost savings and operational agility.
In the context of maritime logistics and shipping, how do you see multi-carrier delivery options benefitting online retailers beyond just customer satisfaction?
BH: Transportation logistics and expenses are a major portion of online retailers’ budgets and, therefore, require resources and intelligent planning. We have all witnessed the disruptions in the global supply chain and retailers have to balance those challenges with satisfying customers. Obviously, having multi-carrier delivery options is important for retailers and finding the right partners at each stage of the supply chain is essential. Retailers have a long list of necessary action items to mitigate their supply chain challenges, including:
- Planning ahead and forecasting product demand accurately.
- Diversifying suppliers to avoid single points of failure.
- Leveraging technologies for visibility, demand planning, routing and sourcing.
- Building contingency plans.
- Monitoring and communicating in real-time.
“HAVING MULTI-CARRIER DELIVERY OPTIONS IS IMPORTANT FOR RETAILERS AND FINDING THE RIGHT PARTNERS AT EACH STAGE OF THE SUPPLY CHAIN IS ESSENTIAL”
From your experience, how can the integration of diverse carrier networks streamline operations for e-commerce businesses, especially when dealing with global shipping and port logistics?
BH: Many, if not most, online retailers are sourcing products from overseas and the inbound merchandise is destined to become the revenue that drives everything in the business. Transportation Management Systems effectively match the best carrier with the route and method needed to deliver the goods. There are numerous options available to help streamline operations from origin to destination and here are a few to consider:
- Smaller production runs can help reduce transit time and expense.
- Less than Container Load, LCL, creates more options for transport
- Some shippers provide storage options at origin at a lower cost to help schedule shipments.
- Streamlining receiving operations with proper labelling, cartonisation, and palletization.
Retailers need to pick good partners with the experience and creativity to customize solutions for their business and supply chain dynamics.
“TRADE ROUTE DISRUPTIONS AROUND THE GLOBE IN RECENT MONTHS HAVE SERVED AS AN IMPORTANT REMINDER IN THE WORLD OF LOGISTICS OF THE IMPORTANCE OF BEING READY FOR ANYTHING.”
Could you elaborate on specific challenges online retailers face with limited delivery options, especially in terms of port terminal access and shipping routes?
BH: Retailers face numerous challenges today with the choices for bringing products into America from overseas. We have all witnessed a surge in pricing levels based on capacity issues from Asia to the US along with the disruption in some of the trade routes. The Panama Canal is low on water this year, limiting the throughput and forcing some shipping lines to take the long way around South America to the east coast. This condition has also limited the size of the container ships that can safely pass through the canal.
The geopolitical turbulence in the Middle East has been disruptive to container ship transit in the Suez Canal and the Persian Gulf. The shipping routes around the Cape of Good Hope in South Africa are adding time and expense to every container. Planning even further ahead has become the norm for retailers to avoid these supply chain delays. Unfortunately, the additional costs end up being passed on to the end customer.
Trade route disruptions around the globe in recent months have served as an important reminder in the world of logistics of the importance of being ready for anything.
In maritime regions with varying infrastructure capabilities, how do multi-carrier strategies ensure reliable and timely delivery, thus optimising supply chain efficiency for online retailers?
BH: The Key Bridge damage in Baltimore is a dramatic example of an “infrastructure challenge” that led to disruption in that port. Naturally, the volume of inbound container ships had to be re-routed and delays occurred. Baltimore has a significant amount of RoRo volume with automobiles and some of that volume was transferred to Newark incurring additional costs and rerouting to land-based deliveries.
Brands and retailers that have experienced such issues develop contingency plans that weigh the options and alternative transit modes to keep their products moving. Multiple carrier choices might include an “accelerated” ship method on a smaller, faster container ship which costs more and delivers faster. Airfreight can be an expensive option but may become viable with the right product mix.
Having good partners with great technology is important for strategy development and decision making. It helps to pick carriers and ports that have the capacity and capabilities to manage the entire process including the customs brokerage and delivery via domestic carriers.
“PROVIDING RETAILERS WITH DASHBOARDS AND REAL-TIME INFORMATION IMPROVES DECISIONMAKING AND PROVIDES VISIBILITY ACROSS THE SUPPLY CHAIN.”
Considering the intersection of port operations and multicarrier delivery, what are some innovative approaches or technologies that are enhancing shipment visibility and delivery predictability for e-commerce companies?
BH: Technology Driven Fulfilment is our tagline and a core methodology for fulfilment and transportation services. We build systems that easily integrate with multiple carriers and transportation service providers. Retailers cannot afford to lose visibility of their products on the journey from production facilities to carriers to ports and to fulfilment providers.
Leveraging technology such as Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to enhance inventory management, visibility, traceability and efficiency in the supply chain. These systems can provide early warnings that can prompt proactive resolutions.
Providing retailers with dashboards and real-time information improves decision making and provides visibility across the supply chain. Getting quotes quickly and booking carriers in seconds helps get products moving. Those technology tools build out business analytics and help develop insights for future planning.
