Mercado | How to Optimize the First Mile of the Supply Chain

How to Optimize the First Mile of the Supply Chain

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How to Optimize the First Mile of the Supply Chain

Tags:
First Mile, Optimize, Global Supply Chain, International Trade
Dallas-based startup empowers businesses to optimize international trade.
We’ve long heard the importance of the Final Mile (also known as the Last Mile) within international supply chain and logistics. From procurement to sourcing to delivery, the Final Mile is often heralded as the Rosetta Stone of supply chain success. And that makes sense, since for every $10 USD of additional cost incurred by international importers, consumers are only willing to pay $1.4 USD (Statista, 2020). That leaves a large shortfall that companies either have to pass on to consumers anyway, else take the hit internally.

What’s missing in this equation however, is why those costs are incurred in the first place. Many issues that are identified during the final stages of the supply chain are in fact as a result of issues that arose way further up-stream – during the first 120 days that are known as the First Mile.

Optimizing the First Mile starts by understanding the 3 areas it touches: the people involved (both internal employed and departments, as well as external 3rd parties); the processes that have been created (how Purchase Orders are created and managed along the end-to-end supply chain); and the tools that are used to manage those processes.

  1. The People involved in the First Mile
    With the average Purchase Order touching 6 businesses entities (including suppliers, factories, and carriers) and 9 departments (including planning, sourcing, procurement, and distribution), it’s no wonder information gets lost in transit.

    International importers today have to engage across each function and department in order to successfully ensure that the products ordered are those that are received at destination.

  2. The Processes created for the First Mile
    To manage this, the international supply chain has created thousands of processes to manage vital product and inventory data across different entities and organizations. The result however, is a tangle of different people and tools engaging across different languages, lingo, and agendas.


  3. The Tools used to manage the First Mile Despite being in the 21st century, email and spreadsheets remain the typical tools for most importers to manage tens, sometimes hundreds, of thousands of dollars worth of inventory every day.

    Lost comments, misunderstood communications, and a total lack of transparency has resulted in high rework costs and long delays for most, if not all, importers every year.

"Optimizing the First Mile starts by understanding the 3 areas it touches: the people involved... the processes that have been created... and the tools that are used to manage those processes."

Optimizing the First Mile starts and ends with the Order

At Mercado, we know that your products are the lifeblood of your business. If you can’t be sure you’re going to get what you ordered, then...well, you’ve got problems. The Mercado Platform is designed to put your goods at the heart of the process. That means digitizing the Purchase Order (PO) so everyone involved is working from the same information. Any changes or decisions are updated live and in real-time.

Milestones ensure there are clearly articulated steps to follow from the moment a PO is placed to its arrival at destination, with relevant sign-offs and verification checks needed before the next step can begin.

And with the ability to upload and share documents, you can ensure regulatory and social compliance standards are adhered to every step of the way.
ABOUT MERCADO

At Mercado Labs, we know your product is the lifeblood of your business. And yet managing your imports has become increasingly complex over recent years, with products taking on average 4 months to receive, suppliers located thousands of miles away, and external forces – from trade wars to global pandemics – creating extreme uncertainty. Most of the process is analog and takes far too long. So we wanted to change that.

The Mercado platform helps importers to better manage their orders from source to store. By focusing on the First Mile – the initial 120 days of an order – we help businesses optimize their global trade, eliminating pain and mitigating risk across the supply chain.


Get in touch and find out what Mercado can do for your business.

                       

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Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
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Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency
                       

Terms of Service   |   Privacy Policy
From us to you...

Thank you for using Mercado. Our goal is to empower businesses to better navigate the complex world of importing. We know data security is of paramount importance, so we place high standards on ensuring it is safely and respectfully secured. We are committed to following and continuously evolving best practices to support this principle. Your data is yours, and we guard it closely. We do not sell any of your information, and we will always be fully transparent on how we collect and use your data. That's a promise.
Copyright © Mercado Labs
Made with    by studionine.agency