For most shipping managers today, the two most significant challenges involve addressing shipping exceptions and overcoming supply chain disruptions. Identifying, addressing, and overcoming exceptions within the shipping network chain is essential for maintaining effective handling and processing. But what does it mean?
According to Supply Chain 24/7, “Exception management means knowing how to respond when to respond, and the best way to respond, to eliminate the risk of disruption, and handle adverse events. Even changes within capacity can require exception management, rerouting shipments, and redefining the loads accordingly – moreover, the issue of capacity weighs largely on the minds of today shippers.” So, in a sense, it all boils down to creating a more collaborative supply chain that can accommodate changes and stay agile throughout the disruption.
The Challenge of Siloed Systems and Managing Exceptions
Shipping exceptions are a common issue for shipping managers. These are the things that go wrong at any point during the shipping process and entail what companies need to do about them. It’s essential for management teams to realize the existence of these exceptions and acknowledge that if they happen while in transit, the entire process will be affected. Higher freight spend rates, increased accessorials and fees, and additional equipment costs are just some of the things that shipping exception management can help prevent. Little things can quickly add up, and many shipping managers find themselves nickeled and dimed to death as fees from exceptions go unaddressed. Traditional methods of managing expectations are not enough for today’s shipping industry. It’s even harder to find and address those problems when the systems do not communicate, meaning people cannot see past each system.
Collaborative Shipping Exception Management Depends on Real-Time Data, End-to-End Transparency, and Context
Exception management has existed as long as the transportation of goods across city and state lines has existed. However, what has changed is how shipping exceptions are identified and dealt with in the modern supply and shipping chain network. Today the world operates predominantly with mobile technology and digital tools. Shipping management and exception mitigation is best accomplished through automated notifications and real-time data processes.
Real-time data means seeing what’s happening in the here and now with up-to-the-minute data and information. Context is key to dealing with exception management. It is critical to know what to do about exceptions, what unique contributing factors arose, and how to resolve them.
Additional Benefits of Collaborative Exception Management
All good managers know that even with careful planning, shipping exceptions will occur now and then. But with true collaboration, the effects and frequency of anomalies can be reduced. The benefits of collaborative exception management are much more significant than many realize. For example, consider these added benefits and how they improve operational excellence:
- Reduced freight spend rates with more savings overall. With collaborative teamwork, it is easier to deal with shipping exceptions and remedy them before affecting profits across the board.
- Fewer customer complaints and issues with deliveries. With more eyes on the orders, more input to address problems, and more brain power working on solutions, supply chain leaders efficiently address complaints and quickly overcome issues.
- Improved customer service levels and better customer retention. Customers appreciate open communication and accurate updates, especially when things are going wrong, and collaborative management makes it possible.
- Proactive inventory management and organization. Dealing with exceptions and managing them in real-time are critical aspects of inventory management and organization. That, in turn, often relies on a collaborative effort to be successful today.
- Ability to offer lower rates to customers. These savings are best presented in cost reductions to price points—where the customers see savings immediately in less money being paid out initially for shipping services.
- Less confusion over the dock schedule and who’s arriving when. Many of the shipping exceptions that arise for managers come from scheduling and backlogs that can easily be remedied with collaborative planning.
Enable Collaborative Logistics With Turvo-Powered Processes
Collaborative logistics and management make it easier to deal with shipping exceptions when they arise. Identifying, addressing, and overcoming exceptions within the shipping network chain is essential for smooth operations and successful growth. Managing expectations is key to making this happen. Contact Turvo to learn more about how to increase value and prioritize exception handling now.