End-To-End Supply Chain Planning and Its Benefits

Supply chain methods, frameworks, and approaches are numerous. Some are more effective, some less. But what is the best way to optimize supply chain management, lower operative costs, and minimize disruptions? With end-to-end supply chain planning.
So what is end-to-end supply chain planning? What are the benefits? How is it different from traditional supply chain management? This article will answer all of these questions and explain the different links in a supply chain. So let us start from the basics.
An end-to-end (also referred to as E2E) supply chain encompasses all the processes of a product’s lifecycle, including product design, material procurement, manufacturing, storage, and delivery to the end customer. Depending on the situation, it can also include after-sale services and reverse logistics.
Consequently, end-to-end supply chain planning necessitates integrating all of these stages, from product design to delivery, into a holistic, comprehensive plan of action for a product’s entire life cycle. E2E supply chain management should also include advanced technologies for tracking, monitoring, and data analysis.
On the surface, an end-to-end supply chain and a traditional supply chain look the same. However, the difference is in the management approach. In a traditional supply chain, each stage is segmented, planned separately (although communication is still necessary), while end-to-end supply chain planning necessitates a comprehensive approach.
Every E2E supply chain includes 5 stages:
Each phase of a supply chain is complex in its own right and includes many substages, particularly in large operations. Consequently, even minor mismanagement or unpreventable disruption at any stage can have a ripple effect on the entire supply chain. The purpose of E2E supply chain planning is to minimize these issues.
An end-to-end supply chain can have two additional stages, based on the business needs:
Because end-to-end supply chain planning deals with a product’s entire life cycle, certain tools, techniques, and methods need to be utilized for it to be effective. The foundation of effective E2E supply chain planning is:
Let us illustrate (and simplify) a common issue in supply chains that do not utilize end-to-end planning.
A clothing retailer is ordering items for the fall/winter season. Because they could not meet last season’s demands, they overestimate this year’s demand and order more than necessary by a significant margin.
The manufacturer, seeing this large increase, orders even more textiles from their supplier, anticipating an increase in demand from other retailers. The supplier orders even more textiles from the raw material producer.
This effect can expand depending on how many links there are in the supply chain. When small fluctuations at the retail level cause larger disruptions all the way to the raw materials level is a common occurrence in supply chains; it even has a name – the bullwhip effect. This further leads to warehousing and other logistics issues.
And this is only a simplified version of a common problem in supply chains. More complex operations, with more links, can face much larger issues. End-to-end supply chain planning integrates all stages of a supply chain and prevents these kinds of problems from occurring.
We have illustrated a common issue that can happen in a supply chain that does not utilize end-to-end planning, but what are the benefits?
Every link in a supply chain is important, but it all rests on highly-effective logistics. UNIVAL Logistics can efficiently handle the logistics side of your operations so you do not have to. We deliver packages safely and on time to your customers.
All vehicles in our fleet are equipped with real-time tracking devices, so you always know where your packages are located. You can also integrate your website's functionality with our API to ease the fulfillment process. On top of that, you can get full-value insurance for high-value items at premium rates.
If you need more information or want to work with a reliable partner, contact UNIVAL Logistics.
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.105 per ton-mile. Reducing truck transport and opting for the optimal rail transload facility can help increase expense savings through rail.</p> <h2>Rail Freight and Intermodal Strategy</h2> <p>Intermodal is the use of two or more freight transporting modes. When combining rail and road, trains are utilized for the long-haul chunk of the transport. Trucks are used to ship loads from the origin to the terminal and then from the terminal to the recipient, known as drayage.</p> <p><strong>Using rail freight as part of an intermodal strategy has many benefits</strong>, which you can discover below.</p> <h2>Rail Freight Is Eco-Friendly</h2> <p>Given the current state of our environment, caring for it is imperative. From an ecological point of view, rail freight is a great transport alternative compared to air, sea, and road freight. <strong>The biggest advantage of rail freight is the reduction of CO2 emissions</strong>. Compared to other transport modes, rail freight leaves the smallest carbon footprint.</p> <p>For example, air freight consumes 138 tons of CO2, and the combination of air and sea consumes approximately 76 tons of CO2. However, rail freight consumes only 5 tons of CO2 over the same distance. That’s why, now more than ever, rail freight deserves more attention.</p> <h2>Rail Transportation Is Safe and Efficient</h2> <p>Railway safety has notably improved over the past couple of decades. Now, <strong>rail transportation is one of the safest shipping options</strong>. With steady investments in railway infrastructure, routings, tracks, terminals, and border crossing stations, there’s a significant enhancement in the performance of rail freight.</p> <p>Moreover, GPS tracking in trains prevents theft and losses, protecting the goods in transit. Since carriers can locate their customers’ shipments and follow up on milestones, they can deliver information on container position and detect if something unexpected happens during the transportation.</p> <h2>Rail Freight Is Fast and Reliable</h2> <p><strong>Rail freight is a fast and reliable shipping mode</strong> with shorter lead times when compared to sea freight. Although not always possible, there are many situations when rail freight is a more optimal choice than other transport modes.</p> <p>For instance, one of the biggest challenges for companies with production in China is the long lead times to northern Europe when shipping by sea. Sea shipping from China to that part of Europe typically takes around seven weeks.</p> <p>With rail freight, the shipping times can be cut in half, significantly reducing the lead time. Shorter lead times can make it easier to predict business operations and costs, positively impacting capital binding.</p> <p>In addition, rail freight transport is a <strong>punctual mode of transport</strong>. Compared to sea and road freight which can be subjected to bad weather and congestion, not much can hinder the rail path, reducing the risk of unexpected delays.</p> <h2>Are There any Drawbacks of Rail Transportation?</h2> <p>Intermodal containers experience a lot of movement during transit that can damage their contents. There’s a risk of a denied claim if cargo isn't appropriately blocked and braced by rail standards.</p> <h2>Rail Freight Shipping Can Be Your Optimal Choice</h2> <p>Rail shipping has many benefits and very few drawbacks. Apart from being extremely reliable, rail freight is also cost-effective. On top of that, it leaves the smallest carbon footprint compared to other shipping modes.</p> <p>With rising challenges in sustaining our environment, it’s vital to do everything we can to reduce CO2 emissions and reduce the impact of global warming. For those reasons, using rail freight as a part of intermodal strategy can be an optimal choice for many companies that wish to see improvement in our environment.</p> <p><a href="https://unival-logistics.com/">Unival Logistics</a> provides end-to-end logistic solutions and we always choose optimal routes, so that your packages arrive on time and cause the least amount of pollution. You can also take out <a href="https://unival-logistics.com/package-insurance">full-value insurance for high-value goods</a>, track your packages in real-time, and integrate your business with Unival’s API.</p> <p>If you need a logistics partner that combines traditionally effective methods of transport with modern solutions, contact Unival Logistics.</p> <script type="application/ld+json"> { "@context": "https://schema.org", "@type": "BlogPosting", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://unival-logistics.com/rail-freight" }, "headline": "What You Need to Know About Rail Freight", "description": "Rail freight is reliable, fast, and green and can be an excellent choice for various businesses. Learn more about it on this page.", "image": "https://dev.unival-logistics.com/img/train-on-tracks.jpg", "author": { "@type": "Organization", "name": "Unival Logistics", "url": "https://unival-logistics.com/" }, "publisher": { "@type": "Organization", "name": "Unival Logistics", "logo": { "@type": "ImageObject", "url": "https://unival-logistics.com/theme/Unival1/images/unival-logo-new.svg" } }, "datePublished": "2022-07-01", "dateModified": "2022-12-01" } </script>
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