Felecia Stratton

SCM Stew

This issue features a diverse collection of articles that spotlight best practices and logistics challenges readers face—globalization, the importance of supply chain and inbound logistics practices, and a growing strategic, high-level executive management involvement in logistics. The editorial lineup kicks off with Lisa Harrington’s inside look at what’s behind the drive for velocity as global […]

Speeding Global Shipments

The increasingly complex nature of supply chains makes velocity imperative in the global air/expedited freight sector. From port congestion to increased security measures to demand for visibility, here’s an inside look at what’s driving the need for speed.

CLM 2004: Following The Leaders

What are the hot logistics topics for 2005? IL sat down with a number of different logistics solutions providers and practitioners at this year’s Council of Logistics Management conference to track the latest buzz in global supply chain trends.

Drew Alexander: Building Logic and Discipline Into the Supply Chain

You could say Drew Alexander grew up with Wal-Mart. As a boy in Bentonville, Ark., he worked at a local pancake house where Sam Walton sometimes ate. “I never got a tip from Sam,” he says. Throughout his teens, he loaded trucks at a Wal-Mart distribution center. And he later took a job in the […]

RedPrairie Sees RFID Forest for the Trees

As the RFID implementation pace quickens, the race will be won by the fast and the nimble. One fast and nimble player is RedPrairie, Waukesha, Wis., a founder of the RFID Center of Excellence. In the last few months, the company has developed four RFID initiatives: “Bolt-on” RFID EPC compliance An RFID laboratory RFID-enabled supply […]

Mission Possible: Expand Business Without Adding DCs

Suppose you are in charge of supply chain management for a retailer with 1,150 store outlets, eight distribution centers, and a network of 600 vendors. You are tasked with building the optimal supply chain to support three times the current business volume seven years from today. The DCs are already jammed with inbound shipments and […]

Selecting an International Freight Forwarder

Price, security, and compliance rank high on the list of criteria for selecting an international freight forwarder. Auctions have gained popularity, with freight contracts going to the lowest bidder. But choosing on price alone can leave a company shortchanged. In the decision-making process, factors such as value, IT support, and service capability should be considered […]

Warehouse Networks Keep You Close to Customers

Both new trends and familiar old factors are driving the development of American supply chains and warehouse networks. These trends and factors include: Time sensitivity. Our comprehensive, pervasive sensitivity to time stands as the single most important trend driving supply chain development today. We are a connected society. Wireless connections, e-mail, voice mail, pagers, PDAs, […]

Software by Subscription: Pay for What You Need When You Need it

Companies can achieve great efficiency gains by getting real-time visibility into their transportation activities, such as last-mile deliveries. Peering real time into the delivery process to track delays, report exceptions, and measure performance can have a major impact on overall operations, and the bottom line. The challenge, however, lies with gathering data cost effectively and […]

The Question? Globalization. The Answer? SCM

Mention globalization to a group of Inbound Logisticsreaders and be prepared to get an earful, as we did at a recent logistics conference. Globalization challenges vary based on company, trading partners, and markets, but many readers share key areas of convergent concern. Their top three globalization issues are: China. Capacity and infrastructure issues top the […]

Going Global: 3PL or Solo?

As companies expand their global reach, they are increasingly leveraging the infrastructure, resources, networks and expertise of third-party logistics providers to enhance capacity while minimizing risk.

Maritime Security: Open to Risk?

The U.S. maritime sector offers an attractive target to terrorists. But the ocean community is taking steps to help protect maritime trade from catastrophic events.

Smooth Sailing: Managing Ocean Transport by Lane

Are your ocean shipments moving via the most efficient and cost-effective method? The type of goods, time of year, and ultimate destination of your cargo are just some factors to consider when contracting with ocean carriers. Here, a best-practices guide for managing ocean shipments and ensuring cargo arrives on time, intact, and under budget.

China: The Dragon Awakens

Chinese cities are teeming with manufacturing initiatives, prompting numerous expansions of the country’s transportation and logistics infrastructure.

Peter Kelly: Engineering A Nimble Response

Imagine each of your customers requires an entirely customized product. It take eight weeks to make, but when buyers need to replenish their supplies, they want to place orders today and take delivery tomorrow. Keep too little on hand and you’ll upset your market. But “if I have the wrong ones in stock, I run […]

Steering Clear of Roadside Risk

Q: I recently made arrangements with a trucker to transport a co-loaded trailer from the Midwest to the East Coast. The trailer jackknifed on the highway and overturned, causing an accident with another car. I’m worried because I received a letter holding me responsible for any injury and property claims that may result from this […]

Oracle Divines the Future of SCM

Supply chain management continues to post good growth numbers. AMR Research predicts SCM will grow by five percent in 2004, and to a total business of approximately $5.5 billion. Those supply chain management service providers who are secure in the business will make aggressive moves to stay ahead. Oracle is surely one of these key […]

Service Parts & Logistics: Should You In-source or Outsource?

When the silicon wafer fabrication machine breaks down and computer chip manufacturers face costly losses, how long will it take until those machines are running again? In today’s lean business environment it may seem that only those companies with boundless resources can maximize the up-time of their critical business equipment. Thanks to innovations in the […]

Choosing Your Next Forklift Truck or Fleet

If buying forklift trucks were as simple as comparing truck features, performance statistics, and prices, then you might be able to buy them over the Internet. But it’s not that simple. Lift trucks are complex, application-specific products and you need to choose carefully to meet your business and warehouse needs. The right lift truck can […]

Scarcity as a Strategic Imperative

Jeff Immelt succeeded Jack Welch as CEO of General Electric on Sept. 7, 2001. His world, and ours, changed dramatically four days later. With a new CEO and a post-Sept.11 world, it was a given that GE’s corporate strategy would change. The only question was, how? Immelt recently laid out his strategy: GE will invest […]

Help Your Carrier; Be a Better Shipper

When employing a carrier to move loads, shippers often do not realize how big a part they actually play in the delivery of the shipment. When shipping loads, it is incumbent on all involved parties to provide accurate, complete, and detailed information to ensure the end customer receives the shipment in a timely manner. If […]

Reducing the Risks of Global Trade: Software is Not Enough

In recent years, a growing number of American companies have expanded business operations to a global scale. This increased interest in global trade has created a huge demand for products and services aimed at assisting companies with their import/export operations. Not surprisingly, many companies have turned to technology as a fast solution for gaining global […]

Maintaining Profit Margins in Food Service Distribution

Inbound freight programs, onboard computers, computerized routing systems, warehousing management systems, real-time radio frequency, incentive pay programs, global positioning systems, activity-based costing. What do these have to do with food service distribution? The answer is everything. Food service distribution is a highly competitive industry with relatively low margins. Many refer to it as “a penny […]

Carriers, Customers Confront Costs, Capacity

Motor carriers are struggling with several issues as they strive to keep customer service levels high and costs low. But two main concerns rise to the top, according to carriers and their customers: escalating costs and the current capacity crunch. Escalating costs. There’s no uncertainty about which way fuel and insurance costs are headed. Prices […]

Marilyn Necak: Making Freight Pay

For Marilyn Necak, success lies in the details. In her job as disbursement manager for General Electric’s Client Business Services Inc. (CBSI), she monitors the service providers that handle freight payments and accounts payable to make sure they process each invoice correctly and hold vendors to the terms of their contracts. More and more, she […]

An Undertaking of EPC Proportions

It is great to have identification tags on everything. But unless those tags communicate to workers, supervisors, or managers, they are purely decorative and costly. This is the rationale behind the emergence of the Electronic Product Code (EPC) Network and both its industry support and its network and code standardization. First, let’s be clear as […]

Optimize Your Transportation Program for Greater Efficiency

Transportation is usually the largest cost in a company’s logistics budget. In fact, two-thirds of the spend is often for the movement of raw materials and finished products. Managing these costs has become increasingly complex because of radical changes within the transportation industry. Some variables that have a major impact on the cost of transportation […]

Avoiding Transportation Chargebacks

Chargebacks are a fact of life that manufacturers have to deal with. For many of these shippers, how they get the product to their customers’ door is no longer under their control. Consignees and their routing guides are king. If shippers don’t comply with routing guide instructions, they pay, and pay big. Between five and […]

Truckers Get Aggressive with Cargo Security

The transportation industry has never been without challenges. It is an industry that is extraordinarily complex and vital to the economy. For the last three years, warnings of terrorist attacks via biological, chemical, and strategic weapons have been a fact of life, with the attacks of Sept. 11, 2001, a frightening reminder that no industry […]

Achieving Optimization with Closed-Loop Transportation Management

Today’s transportation managers face conflicting challenges and pressures. Regulatory mandates and security compliance create productivity and capacity issues. Companies are moving toward smaller and more frequent orders. Globalization continues to expand. While all these factors drive up logistics costs, a competitive economic climate puts downward pressure on pricing, even as shareholders seek improved profit margins. […]

Reducing the Cost of Cross-Border Compliance

In a global economy, the cost, speed, and certainty of crossing borders are all vital to maintaining competitiveness. Falling tariff rates and vanishing trade barriers create the illusion that customs compliance is now simpler. In reality, complex procedures, innumerable conditions set by free trade agreements, stringent security regulations and stricter enforcement, among other issues, result […]

Flynn’s Folly

I am on my supply chain security rant again, but it’s not my fault. Someone recommended I read a new book that is touted as “riveting, chilling and gripping” by a segment of the media. America the Vulnerable: How Our Government is Failing to Protect Us from Terrorism was written by Stephen Flynn, a retired […]

Consumer Products Logistics: Driving Shoppers to the Mall

Today’s consumers are demanding. They want lower prices, higher product availability and easier returns. Meanwhile, retailers continue to push inventory and costs back to the manufacturers. Consumer products logistics professionals meet these tough consumer and retailer requirements by developing supply chain innovations and breakthroughs that keep store shelves stocked and customers coming back for more.

Apple of Your IT: Technology at the Core of Food Logistics

Food retailers and manufacturers are struggling to cut costs as they battle various channel service requirements, customer demands, and excess inventory. Here’s how a steady diet of electronic commerce, data synchronization, electronic product codes and RFID is serving up savings.

Cargo Crossroads of the World: Alaska

Throughout history, Alaska has been the crossroads of human migration and exploration. When coastal tribes first ventured over from Siberia into present-day Alaska more than 10,000 years ago, they marked the first evidence of human habitation in North America. Since the discovery of petroleum reserves in Prudhoe Bay in 1968, and the completion of the […]

Curtis Brewer: Master of the Schedule

As he works toward his MBA, it’s no wonder Curtis Brewer focuses on international logistics. Since his days as a college intern, Brewer has kept his eye on the supply chain challenges inherent in global trade. In fact, his biggest career challenge so far came during that internship, when a customer’s needs collided with a […]

Bracing for an End to Terrorism Insurance

Q: What’s the latest word on terrorism insurance? I keep hearing that this insurance might not be available soon. What does this mean to the transportation industry? A: The terrorist attacks on Sept. 11, 2001, dealt a serious financial blow to the insurance industry. In the aftermath of the attacks, the industry retrenched itself by […]

Reconsidering the Role of RFID

Is RFID the best thing since sliced bread, another Y2K, or something in between? Is it yet another technology fix on top of all the others or is it a new and essential tool for doing business? Is it a go or a no go? Regardless of your attitude toward RFID, the talk surrounding it […]

Outsourced Manufacturing Changes the Face of 3PLs

The debate over outsourcing American manufacturing jobs to overseas workers continues to stir controversy in politics and business. Economists argue that offshoring is the only way to save American industry; the money saved frees capital for research and development and creates top paying jobs. The political entities, in the interest of both the already and […]

Running an Effective VMI Program

One way to reduce capital outlay within the supply chain is through deferred ownership of inventory—letting vendors manage the inventory of their products in your distribution center. With a Vendor Managed Inventory (VMI) program, vendors receive stock information from their customers, then calculate what product they should ship to maintain adequate inventory levels at the […]

Making a Bid for Real Estate Auctions

Over the past several years, millions of square feet of manufacturing and distribution space have been rendered obsolete as technology advances create the need for new production facilities, and the economy continues consolidation and repositioning of corporate-owned real estate. Consequently, the need to accelerate the sale of large surplus assets has created a surge in […]

IT Doesn’t Matter? Better Run That By Wal-Mart

In his May 2003 Harvard Business Review article, “IT Doesn’t Matter,” Nicholas Carr famously claims that information technology, much like the railroad and the electricity grid before it, has become an infrastructure tool that doesn’t confer any strategic benefit. Carr’s main point is that because IT is ubiquitous and increasingly less costly than in previous […]

Easing Your LTL Carrier’s Burden

Managing transportation costs is more important today than ever before. With the new Hours-of-Service rules, shippers will likely look to LTL carriers to play an increasing role in their supply chains, particularly handling a portion of their previously truckload multi-stop shipments. These volume shifts will likely lead to LTL capacity issues, and shippers may find […]

Traveling the 3PL Continuum

Grab your Star Trek mug and take another look at this magazine’s cover. Then come back because I want to talk to you about parallel 3PL continuums. Yikes! Back? What did you see? Don’t worry, the cover is not a Rorschachian intrusion into your childhood. Rather it is meant to represent the continuing evolution—from infancy […]

From Tactical to Strategic: The 3PL Continuum

Outsourcing operational functions is often the first step for companies testing the 3PL waters. As they gain more confidence, however, these outsourcers move further along the 3PL continuum, shifting from tactical to strategic relationships. Here’s a look at how companies travel the 3PL continuum, and optimize their outsourcing relationships.

Mega DCs: How Big is Big Enough?

Establishing a network of centrally located, mega DCs has its advantages—proximity to the customer, lower inventory, less building overhead, and cost savings driven by economies of scale. But setting up a big-box warehouse network can also bring big challenges. Here’s some advice on siting and sizing your distribution center network.

U.S. and Canada: Partners in Trade

Canada’s world-class infrastructure and easy access to North American markets offer U.S. companies strategic logistics opportunities for goods distribution. Beauty, eh?

Putting 3PLs in Perspective

Here are the results of Inbound Logistics’ latest survey of the 3PL market. The information 3PLs provided will help interpret market trends, and assess the current state of the market as you attempt to match your specific logistics challenges with a 3PL’s expertise.

Intermodal Shows its Mettle

Congestion in the intermodal network puts unprecedented stress on shippers and receivers. Intermodal operators are responding with innovative solutions that keep freight moving.

John Gilmour: Going With the Flow

Change is inevitable; flow with it,” says John Gilmour, citing one of the mottos that guide his career. Named vice president of distribution and logistics at Musicland Group in January, Gilmour has been managing the flow for the national retailer during a particularly intense period of change. A former unit of Best Buy Co., Musicland […]

Achieving Success with AS/RS

Storage is one area of the supply chain that can provide increased efficiency, cost savings, and other benefits. In fact, automated storage/retrieval systems (AS/RS) can eliminate the need for physical inventory, according to Jurgen Conrad, CEO and president of Viastore Systems Inc., which develops and implements AS/RS and other automated material handling systems. “Correlating equipment […]

The Logistics of Doing Business in China

Earlier this year, one of the United States’ most famous apparel manufacturers closed its last U.S. manufacturing facility. Like many companies, it now relies on plants in countries across the world for manufacturing. At least one is likely to be in China. China already accounts for a vast amount of the world’s production, including 75 […]

Successful RFID Implementation

The good news is that Radio Frequency Identification (RFID) will be one of the best things to happen to the supply chain. The bad news is that the road to implementation is sure to be bumpy. Jon Chorley, senior director, Oracle Inventory and Warehouse Management, offers 10 tips for successful RFID implementation. 1. Get educated. […]

Rethinking the Role of Public Incentives

When you consider changing a logistics center location, or expanding an existing logistics network, a myriad of crucial factors influence and shape the decisions your logistics team makes. Traditionally, the availability and applicability of local and state incentives is not a make-or-break factor in logistics placement decisions, but perhaps the time has come to elevate […]

Nurture, Don’t Neglect, Our Waterways Infrastructure

For logistics professionals who already see the rising costs of the nation’s traffic congestion reflected in their bottom line, it is troubling to know that the Federal Highway Administration estimates use of the nation’s highways for freight transportation will increase by 40 percent over the next 10 years. It is clear that the saturation point […]

Not Your Father’s Airfreight Forwarder

“We’ve been using airfreight forwarders since the beginning of time,” says Andy Bordash, head of the logistics and operations team at Bayer Health Care. Many IL readers can say the same thing, but times have changed. As we report in The Plane Truth About Airfreight Forwarding, written by Leslie Hansen Harps, smart forwarders, both large […]

The Plane Truth About Airfreight Forwarding

Once it was enough for airfreight forwarders to move cargo on time from A to B. But with new security regulations, technology tools, and capacity reductions, forwarders today have to meet a full range of logistics needs.

Who’s Who in Airfreight Forwarding:

Large forwarders handle the bulk of airfreight volume but a small, niche player might be just what you need. Here’s a list of some leading forwarders—both large and small—to help launch your search.

Florida: Gateway to the Americas

Florida boasts easy access to every business center in Central America, South America, and the Caribbean, rich cultural ties to those regions, and experienced service providers to smooth your transactions with Latin American partners. Add a strong transportation infrastructure, with intermodal connections that are growing even better as we speak, and for companies that thrive on Pan-American trade, Florida is clearly the place to be.

Forklift Facelift: Making Over DCs from the Inside Out

As important as lift trucks are to tactical activities in today’s high-tech warehouses, their strategic value is becoming equally apparent. Businesses are looking at the long-term advantages of investing in lift trucks to revamp and streamline their warehouses and DC facilities to better utilize storage space and increase throughput.

Get a Lift

Looking to streamline your material handling operations? Consider beginning with your lift trucks. Here’s a snapshot of the industry’s leading manufacturers and some of their newest solutions.

Daniel Pigott: A Chemical Equation That Produces Profits

With the new Hours of Service rules in effect, truck capacity is at the top of everyone’s mind, says Daniel Pigott, director of NAFTA distribution for BASF Corp., BASF Canada, and BASF Mexicana in Orange, Conn. One of Pigott’s major accomplishments during his years in logistics has been developing a command center to help the […]

Making Sense Out of Transportation Insurance Policies

Q: I am a freight forwarder, providing freight transportation services to my customers. I use all modes of transport to all parts of the world. I operate a small warehouse, own two trucks, and when necessary, partner with other operators to give my customers a complete intermodal service. Can you help guide me through the […]

Throw Off Your Chains, Take Up Nets

Driving business these days is the production of increased profit to the enterprise. Other drivers—globalization, outsourcing, customer satisfaction, RFID—pale in comparison to a positive profit picture. So, how can we look at the supply chain from a profit perspective? First, we must ask ourselves, where is the profit in the supply chain? This sounds like […]

How to Source Transportation

Identify and prioritize sourcing of your carriers and you will contain transportation costs as well as meet customer service levels. Pete Stiles, vice president of LeanLogistics, a provider of web-native transportation management systems, offers these tips on how to design and execute a market-specific bid process to foster better relations with carriers, ensure an optimized […]

Streamlining Truck Visits at the DC

While the full impact of the Hours of Service (HOS) ruling is yet to be determined, it is obvious that truck drivers need to manage their time more carefully to minimize any loss to productivity. Under the new regulations, a driver’s idle time counts toward the maximum allowed 14 hours on duty. Shippers can mitigate […]

Does Your 3PL Have an Effective Hazmat Program? Here’s Why it Should

Safe handling and management of hazardous materials has come a long way since logistics providers crossed their fingers and hoped that an incident involving hazmat wouldn’t happen. And if it did, they hoped that the carrier would do a good job of handling it. Gone are the days when simply complying with a dizzying array […]

Someone is After Your Job…

And they want it to relocate it—no, not to Mumbai or China, but right here in the United States. Cities, states, and regions are increasingly competing to attract logistics and transportation jobs. Why? Because U.S. manufacturing jobs, and more recently, service sector jobs, continue to migrate to lower wage, lower tax, lower liability, lower regulation […]

Bruce Cutler: Selling Style, Price and Global Expertise

In the mid 1990s at Compaq Computer, Bruce Cutler crossed the gap between international marketing and international logistics. “I didn’t have logistics experience, but I knew the people in the subsidiaries, and I knew how to run a project in multiple countries,” he says. His first logistics assignment sent Cutler and a small team to […]

Prospective RFID Users Face Supply Chain Challenges

Although radio frequency identification (RFID) technology is not new to logistics or the supply chain, interest—and the need for interest in it—has skyrocketed. Alarms set off by the Department of Defense and Wal-Mart, among others, has many a supply chain manager in a tizzy. The DoD and Wal-Mart now mandate that all cases and pallets […]

Knowing What and When to Outsource

Anyone who has visited Kansas City to savor down-home cooking and fried chicken will recognize the tag line, “We Choke Our Own Chickens” as belonging to Stroud’s restaurant. Marketers say that you have to be on the edge to cut through all the clutter, and I think you will agree that Stroud’s slogan has done […]

Selecting a Load and Route Optimization System

It doesn’t matter if you utilize local route and delivery carriers or nationwide truckers to move your goods. Load and route optimization software systems offer an efficient way to find the best delivery routes and schedules. The key is knowing how to get to the right vendor and picking the best system for your business. […]

Creating Competitive Advantage With Service Parts Logistics

After-sale customer service operations are a strategic part of every business. Not only is service a key differentiator, the difference between revenue contribution of service operations and total revenue can be as large as 40 to 60 percent. Many companies today are even willing to pay more for high levels of service. While most companies […]

Why Motor Carriers are Turning To Pallet Position Pricing

Here are two scenarios that involve the same freight market. In the first instance, a truckload carrier looks for freight to fill out a three-quarter load from Los Angeles to Atlanta. If the carrier can add a quarter load, the revenue on the load suddenly jumps to a highly profitable level. But there may not […]

IT Does Matter

Arguably the most important development impacting transportation, except for the invention of the wheel, has been the application of information technology. Yes, I know, the nationwide rail network, the excellent interstate highway system, the containerization concept, the Panama Canal … But the reason I think logistics IT is preeminently important is because it impacts everyone […]