Q&A: How do Bypass Solutions contribute to an improved supply chain performance?

Mr. Boelicke, what do Bypass Solutions mean in the context of logistics?

Ralf Boelicke: Dynamic market requirements, fluctuating customer demand, an early sale or the conflict in the Red Sea – as part of supply chain management, Bypass Solutions relate to process-oriented strategies and operational adjustments in the supply chain. With the help of these solutions, it is possible to flexibly control the flow of goods and grant access to certain goods or shipments before the final delivery to the originally intended destination. The early access to the goods enables a faster delivery to the end customer. Thanks to active redirection, the goods no longer need to pass through a central interim warehouse, for example. Transport and processing times are thus significantly reduced. This usually takes place at the port of destination, where goods that have already been sold are withdrawn and delivered directly to the buyers.

How does direct goods access work in practice?

Ralf Boelicke: To enable direct access to the required goods, the logistics systems and processes must be designed in such a way that they allow certain shipments to be quickly identified and separated as soon as they arrive. For example, when a ship arrives at the port of destination, the goods concerned that have already been sold, are immediately identified using advanced technologies such as RFID or QR codes. In this way, they can be assigned to their new destination quickly and without errors. In the next step, these goods are extracted from the overall shipment and rerouted accordingly. Port authorities, freight forwarders and end customers need to be well coordinated in order to ensure a timely and smooth handover.

What challenges can arise when implementing Bypass Solutions?

Ralf Boelicke: Integrating Bypass Solutions into your own SCM strategy requires a high degree of planning and the adaptation of existing processes. This includes the need for high-level IT integration and data analysis in order to efficiently control the flow of goods and ensure transparency: the exchange of real-time data on stocks, shipment tracking and customer requirements is a key aspect in this context. The harmonization of data formats, interfaces and communication protocols between stakeholders is complex, but essential to achieve the flexibility and efficiency promised by Bypass Solutions.

In addition, such solutions require close cooperation between the supply chain partners involved, both in terms of coordinating logistics processes and contractual agreements. Supply chains must therefore be redesigned in order to create direct routes for the flow of goods: Only through seamless coordination and IT integration between manufacturers, retailers and logistics service providers can shipments be reliably recorded and delivered, even in the event of spontaneous changes.

Another important aspect is ensuring the quality of the goods during the changed transportation routes. In general, rerouting freight requires effective risk management to minimize potential delays, disruptions or additional costs.

What effect do Bypass Solutions have on customer satisfaction?

Ralf Boelicke: The ability to access goods before they reach their destination can have a significant impact on customer satisfaction – Bypass Solutions ensure faster delivery times, as well as a more flexible order processing. Customers benefit from transparent and on-demand delivery, which can be a decisive factor for success, especially in times of high expectations of e-commerce logistics. The elimination of redundant storage and handling processes not only accelerates distribution processes, but also helps to reduce delivery delays and makes it easier to track shipments. By demonstrating their ability to recognize and proactively address individual needs, companies build trust and satisfaction with their customers – this level of personalization promotes a positive perception of the services offered.

However, the prerequisite for achieving this goal is the smooth functioning of the Bypass Solutions and the assurance of delivery quality at all times. For this to succeed, companies should choose their international logistics partner carefully and rely on specialized know-how. At Hermes International, we support our customers in managing their goods and implementing Bypass Solutions effectively thanks to our many years of experience and expertise in SCM and freight forwarding. We use advanced technologies and leverage our extensive network of transportation and warehousing capabilities – thus allowing companies to respond flexibly to changing market conditions or requirements without having to invest in their own, often costly, logistics resources and infrastructure. Above all, our global reach makes it easier for our customers to operate in international markets, serve their customers efficiently worldwide and thus promote long-term growth.

Mr. Boelicke, thank you very much for the interview.

Further Q&As relating to logistics and supply chain management:

• What advantages does the China – Europe rail link offer for the transportation of goods?
• How does Supply Chain Visibility contribute to the optimization of logistics processes? 
• Loading and packaging – what to do with oversized consignments? 
• How can freight rates be structured transparently and in line with the market in volatile times?