6 Ways to Make Must-Arrive-By Dates Work for You
If you’ve shipped into big box retailers in the past 15 years, you’ve undoubtedly encountered Must-Arrive-By-Dates (MABDs), the protocol implemented by Walmart, Target, and others during the early days of retail’s data revolution. MABDs allow shippers to meet time-sensitive demands with confidence, while avoiding unpleasant fines. Additional non-compliance on shipments can also lower your overall scorecard, leading to being downgraded as a supplier.
While MABDs started in the big box world, they didn’t stay there for long. Once they were shown to be effective at trimming costs and enabling precision buying, MABDs began to spread, initially to grocery and pharmacy, then to healthcare and schools. The next frontier will be manufacturing, as operations are increasingly systematized and automated.
Retailers love MABDs because they enhance predictability, and improve accuracy and precision. They also allow retailers to optimize sell-through to maintain margins and return on shelf space. With MABDs, when these carefully calibrated systems are disrupted, they are compensated with fines and fees.
Rather than bemoan MABDs’ increasing ubiquity, shippers are better served by finding ways to work with them. Ultimately, by spending slightly more up front to become MABD-ready, shippers often end up spending less overall. Here are six ways to make MABDs work for you.
1. The freedom to flex.
In a just-in-time world, opportunities may come along at the last minute, putting a premium on carrier flexibility. Working with a carrier that keeps enough play in their systems to accommodate short-notice requests allows you to respond quickly when the wind blows in your favor.
2. People power.
The world is increasingly becoming digitized. Yet, when the unexpected happens, you want to be sure you can speak with a live person by phone.
3. Traceability is key.
Disputes with consignees about whether a shipment arrived on time are common. Make sure your transportation partners have strong traceability and accountability systems so you have what you need if an unexpected charge comes your way.
4. Electronic bills of lading.
eBOLs streamline the shipping process, from speeding transaction and processing times, to reducing errors and improving visibility. Adopting eBOLs is the easiest and most effective step shippers can take to match the precision of the retailers they work with.
5. Digitize the rest of your value chain.
Companies that digitize their internal operations can realize even more benefits. Once back-end systems are fully digitized, API/EDI integration becomes far easier to accomplish, conferring additional efficiency benefits. Managing manufacturing, inventory, and shipping on the same system provides new levels of visibility into your processes, allowing you to find efficiencies across your company’s entire value chain.
6. Ship with experienced, flexible carriers.
If you take the time to push your systems to the limit, make sure you work with carriers that match your commitment and quality. On-time delivery is a great indicator of a carrier’s operational excellence, but not all carriers manage MABDs the same.
Through research, testimonials and historical performance data, you can find the best carrier for you and benefit from their expertise.