Global freight can be difficult to predict, but not impossible to master.
In this webinar, Emma Borochoff, Head of Marketing US at 8fig, and Judah Levine, Head of Research at Freightos, discuss the state of global freight and how SMBs can better manage inventory for 2023 and beyond.
Beginning with the state of global freight, Judah notes that while global volatility is calming as the pandemic wanes, it’s still important for sellers to monitor short and long term global freight projections. International events, seasonal ebbs and flows, COVID outbreaks and more have all made for relatively uncharted territory the past couple years, and may continue to have unexpected impacts on freight in the future.
Reviewing the Freightos Baltic Index — an index of spot rates for ocean shipping containers on different major trade lines — Judah pointed out that shipping rates are falling and import volumes are decreasing, but relative 2019 and other historic marks, both are still quite high. For sellers, this means a shift away from a strategy of buying as much inventory as early as possible to a more strategic ordering plan based on ports and goods.
When it comes to building a stronger supply chain, Emma suggests shopping around for freight and logistics partners to gather quotes and diversifying your logistics chain. Not only will this process help sellers determine if they are getting the best price, building relationships with other suppliers helps ensure resiliency if a primary supplier relationship breaks down.
Inventory management is also directly linked to cash flow, Emma argues, and sellers that can plan their inventory at least 3-6 months in advance and still have cash on hand to market their products and scale their business will be the most profitable. 8fig’s supply chain planning technology partnered with their continuous funding model is a simple way for sellers to combine inventory management strategy with cash flow liberation.
So, what are the key takeaways for sellers that our experts recommend?
Diversify your logistics chain
Stay on top of changes in logistics to optimize your logistics choices
Plan your inventory at least 3-6 months in advance
Free up your cash flow to expect the unexpected and still grow
Make sure to watch the full event for even more robust insights into the state of freight, and practical tips for sellers headed into 2023.