{"id":1907,"date":"2021-12-17T13:00:00","date_gmt":"2021-12-17T13:00:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/supply-chain-velocity\/"},"modified":"2025-09-15T21:32:31","modified_gmt":"2025-09-15T21:32:31","slug":"supply-chain-velocity","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/supply-chain-velocity\/","title":{"rendered":"Supply Chain Velocity In Today\u2019s World"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is supply chain velocity?<\/a><\/p>\n\n\n\n

Importance of supply chain velocity in today\u2019s world<\/a><\/p>\n\n\n\n

Roadblocks to achieving velocity<\/a><\/p>\n\n\n\n

Tips for achieving supply chain velocity<\/a><\/p>\n\n\n\n

Elements of well-optimised supply chains reaching velocity<\/a><\/p>\n\n\n\n

Achieve supply chain velocity with ShipBob<\/a><\/p>\n\n\n\n

Supply chain velocity FAQs<\/a><\/p>\n<\/div>\n\n\n\n

In the ecommerce industry, speed is the name of the game. Customers expect to receive accurate orders<\/a> fast \u2014 but quick last-mile logistics<\/a> alone are not enough to keep up with this expectation.<\/p>\n\n\n\n

To consistently provide the swift delivery that customers want, a retailer\u2019s entire supply chain must move at a high velocity.<\/p>\n\n\n\n

Maintaining a high supply chain velocity has many benefits. Not only can increased supply chain velocity improve customer satisfaction, speeding up supply chain processes can also reduce shipping times and costs, create a better inventory tracking<\/a> system, and make your operations more lean and cost-effective.<\/p>\n\n\n\n

In this article, we will discuss what supply chain velocity is, why it\u2019s important for retailers, how you can increase supply chain velocity, and how a 3PL<\/a> like ShipBob can transform the retailer experience for customers.<\/p>\n\n\n\n

What is supply chain velocity?<\/h2>\n\n\n\n

Supply chain velocity refers to the speed at which activities within the supply chain are completed, as well as the speed at which orders move through the supply chain, from processing to arrival on the customer\u2019s doorstep.<\/p>\n\n\n\n

Supply chain velocity takes into account the speed of every supply chain phase and process, including purchasing from a manufacturer, production lead times, warehouse receiving, inventory management, order processing, picking<\/a>, packing, shipping, and last-mile logistics.<\/p>\n\n\n\n

High supply chain velocity shortens order cycle time, minimises lead times<\/a>, and streamlines supply chain processes. Overall, high supply chain velocity means that customers receive orders with relatively little turnaround time between order placement<\/a> and delivery.<\/p>\n\n\n\n

Importance of supply chain velocity in today\u2019s world<\/h2>\n\n\n\n

Having high supply chain velocity is both a competitive advantage for your business and a vital necessity for its longevity. Here are just a few of the reasons why a healthy supply chain velocity matters for business owners.<\/p>\n\n\n\n

1. Increases customer satisfaction, brand loyalty, and repeat purchases<\/strong><\/p>\n\n\n\n

As mentioned above, online shoppers today want their orders delivered to them quickly. According to one study, 67% of shoppers<\/a> expect 2-day delivery, and 46% of consumers<\/a> value fast delivery more since the COVID-19 pandemic began.<\/p>\n\n\n\n

This need for speed hugely impacts a consumer\u2019s decision to buy (with 85% of shoppers<\/a> saying they are more likely to buy when 2-day delivery is offered), as well as customer satisfaction levels.<\/p>\n\n\n\n

If your supply chain runs smoothly enough to get finished goods<\/a> into a customer\u2019s hands in 2 days, that customer will be more likely to recommend your business, leave positive reviews, and purchase from you again \u2014 all of which build brand loyalty and ultimately bolster your business\u2019s bottom line.<\/p>\n\n\n\n

2. Boosts profitability & cost-savings<\/strong><\/p>\n\n\n\n

On the sales front, being able to quickly move products along the supply chain can result in more sales and higher revenues.<\/p>\n\n\n\n

Internally, more streamlined and efficient supply chain processes almost always decrease operating and labour costs, and get more work done in the same amount of time. Saving money on operations helps small businesses<\/a> increase their profits, or allocate additional funds elsewhere.<\/p>\n\n\n\n

3. Prepares operations for unexpected challenges <\/strong><\/p>\n\n\n\n

An agile supply chain<\/a> \u2014 one with a quick order turnaround time and lean operations \u2014 is more adaptable than a sluggish supply chain. This means that, in the face of variability, high velocity supply chains are easily transformed<\/a> to circumvent threats and take advantage of opportunities.<\/p>\n\n\n\n

If your supply chain is strong enough to support high velocity operations, it usually also has enough supply chain resilience<\/a> to withstand unforeseen delays or roadblocks.<\/p>\n\n\n\n

Roadblocks to achieving velocity<\/h2>\n\n\n\n

With unexpected global supply chain crises and a growing focus on supply chain sustainability<\/a>, achieving velocity is easier said than done.<\/p>\n\n\n\n

Every business will face supply chain challenges eventually, but many of these challenges are surmountable if you prepare for them. Here are a few common challenges that businesses encounter in their supply chain management<\/a>.<\/p>\n\n\n\n

Supply chain disruptions<\/h3>\n\n\n\n

Supply chain disruptions can occur at any time, and recent events have demonstrated just how intensely and acutely they can impact the supply chain. Whether it is an isolated incident, such as the Suez Canal blockage, or a prolonged global supply chain disaster like the COVID-19<\/a> pandemic, disruptions make it difficult to maintain supply chain velocity.<\/p>\n\n\n\n

Even with a lean supply chain, unforeseen disasters can stop goods or orders from moving through your pipeline, with delays in one stage affecting the entire supply chain.<\/p>\n\n\n\n

Infrastructure\/inventory shortages<\/h3>\n\n\n\n

Shortages cause bottlenecks, making it difficult to maintain supply chain velocity when a particular resource runs out.<\/p>\n\n\n\n

Lack of available warehousing space, a freight container shortage that causes freight forwarder pricing to spike, limited raw materials, or insufficient buffer inventory<\/a>, and other shortages cause product flow to grind to a halt and force businesses to spend valuable time and resources finding creative solutions.<\/p>\n\n\n\n

Growing demand<\/h3>\n\n\n\n

Increased customer demand for your new products is every business\u2019s dream \u2014 but growing demand becomes a problem when it outpaces your operation\u2019s capacity to keep up.<\/p>\n\n\n\n

If there is an unexpected run on your products, you could easily burn through your safety stock<\/a> and experience stockouts<\/a> and backorders<\/a> before replenishment<\/a>. These issues damper your business\u2019s success, cause you to miss out on potential profit, and might even discourage customers from returning.<\/p>\n\n\n\n

Holidays and busy seasons<\/h3>\n\n\n\n

Even the most streamlined supply chains experience predictable delays and shortages around certain holidays and seasons. Because of the increase in order volumes and labour needs, it can be difficult to keep supply chain velocity high around the winter holidays \u2014 at least in the US.<\/p>\n\n\n\n

Many businesses also fail to take foreign holidays (such as the Chinese New Year Shutdown<\/a>) into account, causing further delays and supply chain disruptions.<\/p>\n\n\n\n

Tips for achieving supply chain velocity<\/h2>\n\n\n\n

With so many moving parts in a supply chain, it can be difficult for business owners to know how to increase their supply chain\u2019s velocity, or where to target optimisation<\/a> efforts. Here are a few best practices that your business can implement to improve your supply chain velocity.<\/p>\n\n\n\n

Use your data to forecast demand<\/h3>\n\n\n\n

Anticipating future demand is essential to preparing your supply chain ahead of time and ensuring that you\u2019re timing replenishment to meet customer needs.<\/p>\n\n\n\n

While you can\u2019t predict the future with 100% accuracy, historical sales data is the best tool in your arsenal for demand forecasting<\/a>. By tracking what sells when and where over time, you can begin to plot trends that will help you better time purchase orders, prepare for busy seasons, improve decision making, avoid stockouts or overstocking, and keep everything running smoothly.<\/p>\n\n\n\n

Audit<\/a> your suppliers & distribution partners<\/h3>\n\n\n\n

Third-party partners such as suppliers and distributors play a vital role in supply chain velocity. Good supply chain management<\/a> involves effectively coordinating with all relevant parties to ensure a seamless operation.<\/p>\n\n\n\n

So it\u2019s important that you take a fresh look at your suppliers and partners to see which of them are underperforming (and therefore need to be replaced) and which are adding a lot of value and increasing supply chain velocity (and with which you should cultivate stronger relationships).<\/p>\n\n\n\n

Upgrade your tech stacks<\/h3>\n\n\n\n

Having outdated technology \u2014 or worse yet, managing everything by hand \u2014 is a sure-fire way to slow information flows to a crawl. On the other hand, the right technology can significantly improve velocity by enhancing supply chain collaboration, control, and efficiency<\/a>.<\/p>\n\n\n\n

Consider investing in updated and intuitive technology platforms with built-in capabilities such as order management, inventory management<\/a>, and data and analytics. This provides supply chain visibility<\/a>, allowing you to identify and resolve problems or bottlenecks quickly.<\/p>\n\n\n\n

To further streamline operations, utilise supply chain technology<\/a> that will help you automate different aspects of your operations, make accurate demand forecasts, and provide suggestions on improving delivery times.<\/p>\n\n\n\n

Have backup plans for possible disruptions or changes<\/h3>\n\n\n\n

A resilient and agile supply chain has contingency plans. Supply chain planning<\/a> allows you to prepare for disasters so that, if they do come, your supply chain velocity is able to bounce back quickly.<\/p>\n\n\n\n

While there are some challenges you cannot prepare for, there are some material steps you can take to strengthen your supply chain so that it can maintain its velocity:<\/p>\n\n\n\n