How can businesses build an inventory strategy that minimizes unexpected air freight? Begin by looking at your holding rate, defined as your holding costs divided by your inventory value. “If your holding rate is low, it’s not that expensive to keep inventory in your fulfillment centers,” said Sanne Manders, Flexport’s President of International Revenue. In those situations, “we recommend ocean freight because you can stock up a little more. But if your holding rate is high, we recommend air freight.” Watch the full Eliminating Air Freight from Your Supply Chain here: https://flx.to/elim-air-LI

Tarik Wang

Global Supply Chain Director at Blue Yonder | Driving AI-Powered Logistics & Sustainability for Fortune 500 Success

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