Hawaii and Alaska represent unique markets for shipping and logistics. In these markets, shippers are often responsible for managing supply chains on behalf of clients. Despite the convenience, it is usually a bad idea for companies to set up their logistics in this way. This is because shipment routing for these situations often takes 10 to 30 days, which is simply unacceptable.
Due to the long shipping times, it is common for invoices to actually arrive before the goods do. This is a serious problem, and it is incredibly frustrating for the clients!
Understanding the problem
When shippers manage supply chains in Alaska and Hawaii, inventory management and accounting become significantly more complicated and difficult. Further, companies have an extremely hard time promoting products efficiently because they do not know when the products are actually going to be there. This creates an enormous amount of stress as well as unnecessary risk.
Another key problem with this situation is that if you pay your invoices before the products arrive, you could end up paying full price for an order that is either late, incorrect, or damaged. This puts a further burden on you.
Are there any other options for supply chain management in Hawaii and Alaska?
Yes, companies have other options for having their supply chains managed in these stats. Most deals in Hawaii and Alaska are structured like this:
- FOB to Destination Gateway + Consolidator Stock Rates.
Shipping times are the slohttps://goatrocksgroupconsulting.com/wp-content/uploads/2022/01/placeholder-vertical-1.webpt for this method and costs are the highest. Another structure exists:
- FOB Origin – Consolidator coordinate the transport from the Shipper to their Consolidation facility and they apply their negotiate rates
However, although this option can be favorable in some circumstances, costs are still too high and shipping times are still too long. So, it also, is not great.
So, what is the optimal solution?
To keep costs as low as possible and shipping times as quick as possible, the ultimate best choice is to partner with GRG Consulting. We can manage all of your supply chain deals. When we take over your supply chain management, we will make sure the transportation is optimized so that sailing dates will be hit and the best possible rates for over-the-water shipping are realized. We will either work with your preferred consolidator or we will scan the market to find ideal rates and shipping times.
Here at GRG Consulting, we know how to set up deals in order to get our clients the best possible deals in terms of price and transit times. We have extensive experience and have created impressive results for countless clients. If you work with us, we guarantee that we can get you a better shipping situation than you have now.
Ready to start paying less for shipping?
If you’re ready to start saving money on shipping and getting faster shipping times, then we want to hear from you. We will even review your process for free and give you recommendations based on what we find. Get in touch today to get started.