Are you getting any second thoughts ahead of supplier negotiations? This might be a case of the 'tender season' jitters. But we can help!
Xeneta is pleased to share the top five tips for BCOs going into the tender season to help you map relevant and accurate targets while building a disruption-proof resilient supply chain.
This peak season will be different, so act upon it.
Changes in the global supply chain have been ongoing over previous weeks, months and years, but be alert to swings in your consumer demand and transportation needs this upcoming peak season. It will be different. You will need to be vigilant and prepared to act.
For the first time ever, we’re most likely to see volumes on a general scale go down in the second half of the year compared with the first half of the year. That will create challenges, but it will also offer new leads. Stay focused on the opportunities that lie ahead.
You should monitor your own demands, as you will need to be on top of your own business needs and capacities going into this tendering season.
The more you know about your own business, the more you will know about your own consumers. Armed with all that information about your own business, combined with the market intelligence and benchmarking abilities that we offer at Xeneta, you will be very well placed going into contract negotiations for the coming months, quarters and even years ahead.
You should also be aware that knowing more about your own business gives you the advantage of positioning yourself as a preferred customer for carriers.
That knowledge will help you perform with more predictability and reliability, with higher volumes, and will enable you to leverage your business towards your preferred carriers.
Strike the right balance between spot and long-term contracts when tendering is necessary. Identify your non-essential cargoes and leave those to the spot market versus long-term deals with a duration of a quarter, half or full year. Seek flexibility to tip the scales in your favor.
Finally, even the best-laid plans built on the strongest foundations can be shaken by factors outside of your sphere of influence.
As economies around the world battle to stave off recession, it also looks like industrial action and multiple strikes are looming. These factors will test your management strategies and resilience.
It is wise to build in contingencies to your models and plans, so have a Plan B ready for when the next port or terminal is hit by strike action, as seen by the recent dock workers’ strike in the UK. Preparation can mitigate cargo flows being disrupted. Aim to strengthen resilience in your supply chain if possible and to find more reliability.
Taking these recommended steps should ease your voyage across some choppy seas as the global network of container shipping normalizes over the year - well, the coming year, at least.
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