Updated on July 04, 2023
It has become essential for businesses across industries to optimize supply chain performance in today's fiercely competitive business environment. Customer satisfaction, on-time delivery, and cost-effective operations are all guaranteed by effective supply chain management. Leveraging the Law of Marginal Gains is one efficient method for improving supply chain performance. This idea, which gained popularity in the sports world, emphasizes the cumulative effect of small, gradual improvements.
This article will examine the use of the Law of Marginal Gains in supply chain management, with a focus on ocean freight shipping and the use of online freight exchanges to reduce the cost of shipping goods by sea.
1. Understanding the Law of Marginal Gains
According to the Law of Marginal Gains, frequently credited to Sir Dave Brailsford, a former performance director for British Cycling, significant overall progress can be made by making small, continuous improvements in some different areas. The idea acknowledges that a single big idea cannot revolutionize supply chain performance. Instead, the importance of consistently looking for small improvements in every aspect of the supply chain is emphasized.
2. Applying the Law of Marginal Gains to Supply Chain Management
3. Improving Sea Freight Rates with Digital Freight Marketplaces
Ocean freight shipping is essential to global supply chains, especially for businesses engaged in international trade. However, the costs of the entire supply chain can be significantly impacted by changes in sea freight rates. Organizations can increase their negotiating power and obtain favorable rates by utilizing digital freight marketplaces. Here's how:
A comprehensive strategy is needed to improve the supply chain's performance. Organizations can concentrate on implementing incremental changes in various facets of their supply chain management by adopting the Law of Marginal Gains. Using digital freight marketplaces is an important opportunity to improve supply chain performance in ocean freight shipping. Sea freight rates and overall supply chain efficiency are improved by having access to a larger market, transparent pricing, effective communication, and optimized routing. Adopting these strategies in today's dynamic business environment will enable organizations to maintain competitiveness, meet customer expectations, and achieve sustainable growth.
Utilizing digital freight marketplaces and applying the Law of Marginal Gains provide several additional advantages in addition to those already mentioned. These include better risk management, decreased paperwork, increased agility, and increased visibility. Thanks to real-time visibility, organizations can track shipments, foresee delays, and proactively handle any potential problems. Digital platforms reduce paperwork, streamlining administrative processes and lowering the possibility of mistakes or misunderstandings.
Developing backup plans to mitigate potential risks is crucial to improved risk management. Organizations can continuously assess risks and implement incremental changes to reduce disruptions and improve resilience using the Law of Marginal Gains.