Articles
Commentary
Inventory…What a Waste
We all know that inventory is a necessity. When you fully understand its purpose and cost, however, you realize why lean practitioners consider it one of the Eight Wastes. Inventory can be among a company’s most expensive assets, representing up to half of total invested capital. The major reasons for carrying inventory are to decouple […]
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Nearsourcing to Mexico Improves Operational Efficiency
For years, Asia was the location of choice for low-priced manufacturing. The Asian shipping market was hit hard by the global recession in late 2008 and 2009, however, and the region became less appealing as a manufacturing site when labor costs began rising. Then, as the global economy improved, demand for product quickly outpaced supply […]
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Sharing Data Creates Optimal Supply Chain Visibility
In the past decade, analysts have written volumes about the value of supply chain visibility and execution systems. It’s hard to argue with the concept. When all supply chain partners’ systems work together to fulfill orders perfectly, execute on-time shipments, and provide early alerts to problems, life is good. Many companies have turned to on-demand […]
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Warehousing ‘Outside the Box’
Historically, warehousing was viewed as a function that exists inside “four walls.” Visibly, that’s true. But when you consider all the different parts and impulses that influence a distribution operation, it can no longer be cornered so conveniently. That’s why our May 2012 issue spotlights warehousing and distribution wall-to-wall—and beyond. For example, it’s easy to […]
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Load Boards Evolve Into Social Networking Tools
When you look at an Internet-based load board, it’s hard to believe how far the freight and logistics sector has come. It wasn’t long ago that carriers all over the country found much-needed backhauls by posting handwritten notes on truckstop bulletin boards, and brokers used those same boards to locate trucks. But technology—particularly the Internet—has […]
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LCL Plays Growing Role in Global Ocean Transportation
Demand for less-than-containerload (LCL) services is rising among global importers and exporters whose business models rely on cost, inventory control, and supply chain visibility. The shift to more LCL services in industries such as oil and gas (O&G), retail, and automotive can be attributed to several factors. Oil and gas fuels change: Running an end-to-end […]
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Benchmarking Keeps Logistics IT Outsourcing On Track
Logistics departments rely on technology to drive operational excellence. Benchmarking—analyzing an organization’s performance against the comparable activities of another or its own over time—has traditionally been applied to validate and/or improve a service contract’s value. In an economy characterized by unstable growth and eroding margins, optimal logistics IT performance is necessary for companies to remain […]
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IT: Advantage @Light Speed
A professor at a well-known university recently remarked at a logistics conference, "Information technology is not a source of competitive advantage. It makes good systems better, and bad systems worse. It allows companies to do stupid things at the speed of light." Maybe. But IT can be a change agent that will almost always open […]
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Preparing for an Ocean Capacity Crunch
Shipping lines are suffering from an oversupply of vessel capacity on key Transatlantic and Asia-Europe trade lanes. Normally, this situation would be good news for shippers, because it means they have plenty of access to capacity—and the upper hand in negotiations with ocean carriers. Shippers should be worried about the overcapacity situation, combined with rapidly […]
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The Journey to Continuous Supply Chain Improvement
For the past several years, businesses have focused on cutting supply chain and logistics costs. Their efforts have been partially successful, but they have left a lot on the table, not only in terms of cost reduction opportunities, but also productivity and quality. Applying lean manufacturing principles to supply chain and logistics operations is one […]
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