It’s no secret that the global supply chain is something that is going to have issues for years to come. As 2023 approaches, many brands are eager to save money and improve the efficiency of their supply chain practices.
Unfortunately, many practices and industry issues can fly under the radar and create revenue leaks that immensely slow down profitability.
Let’s examine some of the most common revenue leaks to look out for in 2023 and how GFS Logistics can help your team plug the inefficiencies.
Sneaky Supplier Increases
Over time, the prices of goods from your suppliers may increase. While most suppliers will have the integrity to let you know about an increase ahead of time, some may gradually increase costs or keep costs the same while slowly decreasing the amount of supply you receive.
Any form of sneaking cost increases leaves zero room for you to financially plan until it’s too late. Suppose you’ve noticed revenue costs increasing but need help determining the rate of increase over time. In that case, a logistics team like GFS Logistics can review your supplier’s actions, your supply chain costs, and help you determine whether or not it’s time to look for a new, more trustworthy supplier.
Overuse of Expedited Orders
Promising expedited shipments may give the appearance of a quick supply chain that can compete with Amazon and other next/same-day carriers.
However, keeping up with the costs of doing so can result in massive revenue leaks, especially if you send said orders out on a Friday or the weekends.
While it’s great to give your clientele the option of expediting an order, work with your logistics team to create a threshold for expediting fees that curbs instant expedite approvals and saves your supply chain a lot of money and hassle in the long-term.
Being Reactive to Late Deliveries
If you’re losing money because deliveries are continuously late, work with your logistics team to steer away from reactive actions regarding delivery delays. Oftentimes, there are hidden patterns that could cost you money even if you switch up delivery options. From suppliers not having your packages prepped on time to consistently overloading carriers and slowing them down, a qualified logistics team can help you track down where your delivery process failed, where it consistently fails, and how your supply chain can remedy the situation.
If your brand has suppliers, it likely has multiple contracts set to auto-renew every year. While this can be a convenient way to keep business flowing, it can also be a massive revenue leak. When suppliers increase annual costs, those increases are usually outlined in your contract. When a contract auto-renews, you gain that increase on top of other annual practice changes that could impact your bottom line.
Supply Chain Optimization with GFS Logistics
If you’re concerned about revenue leaks impacting your brand’s shipping success in the new year, it’s time to connect with a new logistics partner.
GFS Logistics has helped brands large and small take control of their logistics process, streamline practices, and mitigate financial loss in difficult times.
We’re ready to help you become a beacon in your industry. Contact us today to learn more about our services!