Strategies for Integrating Inventory in International Transportation Modal Choices

The global supply chain industry has been in the spotlight as companies navigate complex challenges to maintain efficiency and resilience. At the ProMat 2025 event, a record 52,223 manufacturing and supply chain professionals gathered to discuss these pressing issues and explore innovative solutions. Central to these discussions was the topic of integrating inventory into air versus ocean transportation modal choices, a critical consideration for effective supply chain management.

Digital Transformation in the Agricultural Supply Chain

In response to climate change, tariffs, and operational inefficiencies, companies within the agricultural supply chain are increasingly turning to digital tools. These technologies aim to enhance clarity and resilience, allowing for better decision-making and streamlined operations. The Food Safety Modernization Act (FSMA) Rule 204 underscores the significance of digital traceability, further pushing the industry toward adopting digital solutions.

The importance of a robust digital infrastructure is echoed by transportation management systems (TMS) evaluated in the 2025 Gartner Magic Quadrant. Companies like McLeod Software have announced partnership updates to improve TMS capabilities, while other firms such as CtrlChain and NewCold are working together to build a fully integrated supply chain solution. These advancements aim to provide greater visibility and control over transportation decisions, enabling firms to adapt to changing market conditions.

Temperature-Controlled Logistics: A Growing Opportunity

The temperature-controlled logistics sector is experiencing rapid growth, driven by advancements in cold storage technologies. This evolution is creating new career opportunities and reshaping how companies approach the transportation of temperature-sensitive goods. Companies are increasingly considering both air and ocean freight options to optimize costs and ensure the quality of their products.

The decision between air and ocean freight is complex, involving an analysis of inventory carrying costs, inventory investment data, and the risks of potential disruptions. Despite the subsiding of recent crises, the risk of supply chain disruptions remains a critical factor in decision-making. A mixed-mode transport strategy, which combines both ocean and air freight, is often evaluated as a viable alternative for optimizing transportation efficiency.

Evaluating Transportation Modal Choices

When deciding on transportation modes, firms must employ a comprehensive decision-making methodology that considers all associated costs, not just freight expenses. This analytic approach is crucial for companies deploying inventories across multiple continents, where transportation costs can significantly impact the bottom line.

Research indicates that ocean freight tends to be more cost-efficient for certain product lines, while air freight proves more economical for others. The September-October 2024 edition of Supply Chain Management Review offers an in-depth analysis of these findings, providing valuable insights for supply chain professionals.

In addition, the decision to ship products via air or ocean involves a careful examination of inventory carrying costs and investment data. Companies must weigh these factors against potential benefits such as speed, reliability, and risk mitigation to determine the most suitable transportation strategy.

Building Resilience Through Strategic Partnerships

In late 2023, President Joe Biden announced the formation of the White House Council on Supply Chain Resilience, highlighting the strategic importance of building robust and resilient supply chains. This initiative aligns with industry efforts to strengthen partnerships and enhance collaboration among key stakeholders.

For instance, Grasshopper has introduced a new white-label digital branding solution, allowing companies to customize their supply chain interfaces and improve brand recognition. Similarly, the BuilderNation podcast has launched a procurement insights series aimed at tech visionaries, fostering dialogue and knowledge exchange among industry leaders.

These strategic partnerships and initiatives are essential for addressing the ongoing challenges faced by the supply chain industry. By leveraging advanced technologies and collaborative approaches, companies can better integrate inventory management into their transportation modal choice strategies, thereby enhancing efficiency and resilience in an ever-evolving marketplace.

The full article discussing supply chain resilience and the integration of inventory in transportation decisions was published in the September-October 2024 edition of Supply Chain Management Review.