Discover how air freight can enhance supply chain optimization. Beyond speed, air freight offers agility in unpredictable times, streamlines inventory management, and significantly reduces lead times. In this article, we discuss what supply chain optimization is, why it’s important, and the benefits of improving supply chain performance.
What is supply chain optimization?
Supply chain optimization means improving how a supply chain works to make it as efficient as possible. The goal is to lower costs and improve profits while delivering products to customers at the best price. To do this, businesses must manage costs in areas like production, inventory, transportation, and customer service.
Optimizing a supply chain is a long-term process. It requires making small changes over time. Effective logistics management plays a vital role in achieving this. It includes:
- Managing inbound and outbound logistics.
- Choosing the most efficient mode of transportation.
- Optimizing delivery routes.
- Managing inventory levels to avoid excessive storage costs.
Here’s an example:
Let’s say you run an online clothing store. Balancing your inventory to avoid overstocking or running out of stock helps reduce storage costs and ensures products are available when needed. By choosing faster shipping for urgent orders and cheaper options for others, you can save money while still meeting customer expectations. Optimizing these areas helps you deliver quickly without high shipping costs, ultimately boosting customer satisfaction and improving your bottom line.
Read: What is supply chain visibility?
Why is it important to control the supply chain?
By improving logistics and supply chain optimization, companies can significantly reduce transportation and warehousing costs. This is especially important in today’s global economy, where transportation often makes up a large portion of total supply chain expenses.
While cost reduction is important, efficiency in logistics often matters more than cutting direct costs.
Here’s an example:
A company needs to ship a large quantity of products overseas. They might consider two options: shipping by air or shipping by sea.
Shipping by air is more expensive, but much faster. If the company opts for sea freight, they might save money upfront, but the goods could be delayed. This can cause stockouts and missed sales opportunities. In contrast, choosing air freight, ensures the products arrive on time, reducing the risk of lost revenue and unhappy customers.
This shows why a strong supply chain is important – focusing on the lowest direct cost may not always lead to the best outcome. It’s essential to balance cost with efficiency to maintain smooth operations and long-term profitability.
Planning to ship internationally? Read our guide to international shipping.
How to optimize the supply chain with air freight
Now that you understand what supply chain optimization is and why it's important, you’re probably wondering how your business can implement it effectively. One key area to focus on is air freight, which can significantly improve the speed, reliability, and overall efficiency of your supply chain.
Here’s a guide on how you can implement air freight to optimize your supply chain:
1. Identify time-sensitive and high-value products
Start by analyzing your product portfolio to identify time-sensitive items, high-value goods, or products that require fast delivery. This could include perishable goods, electronic components, or high-demand products.
Using air freight for these products reduces the risk of delays and ensures that you meet customer demands for quick delivery.
2. Analyze and optimize your inventory flow
To optimize your supply chain with air freight, start by analyzing customer demand to determine how much inventory you need. Adopt just-in-time inventory practices, ordering smaller quantities and only stocking what’s needed. This reduces warehousing costs. Invest in inventory forecasting tools to track demand more accurately and adjust stock levels as needed.
Finally, regularly review your processes to ensure air freight is helping reduce storage costs and improve efficiency.
3. Establish partnerships with reliable air freight providers
Choose a reliable air freight provider who offers flexible and cost-effective solutions tailored to your needs. Evaluate different carriers to select those offering fast delivery, security, and global coverage.
A strong partnership with the right providers ensures you have reliable and cost-effective shipping solutions that support your supply chain.
4. Consolidate shipments to reduce costs
Combine smaller shipments or orders from multiple suppliers to reduce the cost per unit of air freight. Consolidating shipments can make air freight more cost-efficient, especially for time-sensitive deliveries.
Consolidating multiple smaller shipments into a larger load can help minimize overall shipping costs while still providing the benefits of air freight.
5. Build flexibility into your supply chain
To optimize your supply chain, consider incorporating air freight as part of a broader transportation strategy – that also includes sea or land freight. Use air freight for critical or time-sensitive shipments, while relying on more cost-effective sea or land transport for less urgent goods.
By combining different shipping methods, you can create a flexible supply chain that balances speed and cost-effectiveness. This approach allows you to prioritize fast delivery when needed, without sacrificing efficiency or increasing overall costs.
6. Focus on customer experience and improve delivery precision
To enhance customer experience and improve delivery precision, implement air freight as part of your supply chain optimization. Make sure to clearly communicate delivery times to customers, so they know when to expect their orders. Shorter delivery times not only boost customer satisfaction but also foster greater loyalty – which is essential for staying competitive in today’s market.
7. Measure and evaluate freight performance continuously
Use a system that can track and measure the performance of your air freight operations. The data can be used to optimize your supply chain even more.
Continuously monitoring performance helps identify areas for improvement and ensures that your optimization is delivering maximum value to your supply chain.
A transportation management system is an excellent way to optimize your supply chain. Learn more about why your business should invest in TMS.
Benefits of supply chain optimization through air freight
You’ve likely already realized the many benefits of optimizing your supply chain with air freight. However, if you need a quick refresher, here are six advantages your business can gain from supply chain management optimization through air freight.
- Faster delivery times: Air freight is the fastest mode of transportation, reducing lead times for time-sensitive goods.
- Improved inventory management: Shorter transit times allow businesses to operate with leaner inventories, lowering storage costs and minimizing the risk of overstocking or stockouts.
- Greater flexibility: Air freight enables businesses to quickly adapt to changes in demand, urgent orders, or supply chain disruptions.
- Enhanced global reach: Air freight supports fast, reliable deliveries across borders, helping businesses reach international or remote markets with minimal delays.
- Improved customer satisfaction: Faster deliveries improve customer satisfaction and brand loyalty, especially in industries where speed is crucial.
- Reduced risk of disruptions: Air freight is less affected by disruptions like port congestion or road closures, ensuring a more reliable supply chain.
Discover more advantages of air transportation.
Explore the advantages of air freight with Bertling
Bertling’s fast and efficient air freight solutions help you with optimizing your supply chain. With our extensive global network and logistics expertise, we ensure your goods reach their destination quickly and reliably. Choosing Bertling for your logistics means more than just fast transportation – you gain a strategic partner dedicated to optimizing every aspect of your supply chain. Whether you're responding to urgent market demands or expanding your global reach, we're here to streamline your operations and help your business thrive.
We also provide tailored solutions by seamlessly integrating air freight with road, rail, and sea freight. At Bertling, we design customized logistics strategies that align with your specific needs, ensuring smooth, end-to-end supply chain optimization. Our expert team works to create efficient, flexible solutions that drive greater reliability and cost-effectiveness across your entire logistics network.
Read more about our air freight services, or contact us to get more information.
Unsure which solution is right for your business? Read: Which transport solution should you choose?