The Top 3 Supply Chain Bottlenecks Killing Your Margins and How to Fix Them

Warehouse worker

Supply chain bottlenecks are more than operational hiccups in eCommerce today; they’re significant threats to profitability. From delayed deliveries to inflated costs, these disruptions can erode margins and damage customer satisfaction. Understanding and addressing these challenges is crucial to maintain a competitive edge.

According to [McKinsey]), 90% of supply chain leaders encountered significant challenges in 2024*
Businesses with real-time visibility reduce supply chain costs by 15-20%

Warehouse worker organising

1. Inefficient Inventory Management

Overstocking ties up capital and increases storage costs, while understocking leads to missed sales and dissatisfied customers. Striking the right balance is essential.

90% of supply chain leaders encountered significant challenges in 2024 1

The Fix:

Implement advanced inventory management systems that provide real-time visibility across your supply chain. Utilising predictive analytics can help forecast demand accurately, reducing excess stock and preventing stockouts. Integrating these systems with your delivery management solutions ensures synchronised operations and improved logistics efficiency.

2. Limited Carrier Options

Relying on a single carrier can expose your business to risks like service disruptions, capacity constraints and lack of flexibility. This dependency can lead to delayed shipments and increased costs.

Events like weather conditions, labour strikes or unforeseen circumstances can cause delays. For instance, if a primary shipping partner faces delays due to such issues, the entire supply chain can be thrown into disarray. 2

The Fix:

Adopt a multi-carrier strategy to diversify your shipping options. This approach allows you to select the most efficient and cost-effective carrier for each shipment, enhancing delivery performance and customer satisfaction. Our managed multi-carrier delivery solutions offer seamless integration with multiple carriers, providing the flexibility needed to navigate today’s complex logistics.

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Delivery tracking

3. Lack of Supply Chain Visibility

Without end-to-end visibility, identifying and addressing issues promptly becomes challenging. This opacity can lead to inefficiencies, increased costs and compromised customer service.

Real-time visibility cuts emergency shipping costs by 30% or more by providing advance warning of potential shortages. 3

The Fix:

Implement technologies that offer real-time tracking and analytics across your supply chain. Enhanced visibility enables proactive decision making, allowing you to address potential disruptions before they impact your operations. Our checkout experience solutions provide customers with transparent delivery options, improving satisfaction and trust.

Turning Bottlenecks into Opportunities

Addressing these supply chain bottlenecks is not just about mitigating risks — it’s about unlocking opportunities for growth and improved margins. By enhancing inventory management, diversifying carrier options and increasing supply chain visibility, businesses can achieve greater logistics efficiency and customer satisfaction.

At GFS, we specialise in providing comprehensive solutions tailored to your unique challenges. Explore our customer success stories to see how we’ve helped businesses like yours overcome supply chain obstacles and thrive in a competitive market.

Ready to optimise your supply chain and protect your margins? Contact our experts today to learn how we can support your business goals.

1 https://www.mckinsey.com/capabilities/operations/our-insights/supply-chain-risk-survey
2 https://hrfraternity.com/manufacturing-excellence/overcoming-shipping-capacity-constraints-strategies-to-prevent-future-disruptions.html
3 https://pallitegroup.com/en/news/real-time-supply-chain-visibility