Articles
Commentary
Managing Global Complexity: The Right Tools for the Job
Henry Ford is popularly quoted as saying that his customers could have any color Model T they wanted—as long as it was black. For years, global logistics professionals using optimization could relate to Ford’s quote, because they could apply this highly respected engineering practice to virtually any shipping challenge they faced—as long as they were […]
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Green Leadership for Lean Times
Current economic conditions are cooling enthusiasm for green initiatives in some quarters. But not in Bentonville, Ark., where Walmart recently released its 2012 Global Responsibility report. Someone once said, "as Walmart goes, so goes the nation." I don’t know if that’s true, but despite lean times, the retailer is providing leadership in supply chain sustainability. […]
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CNG Fuels Trucking Sustainability Efforts
Nearly 55 percent of U.S. executives report their organization now has a formal sustainability strategy in place, according to a KPMG International corporate sustainability study. One development gaining momentum in the trucking industry is investing in vehicles that run on alternative fuels. Companies are exploring a variety of options, including electricity, ethanol, biodiesel, liquefied natural […]
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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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The Three Pillars of Effective Returns Management
Returns management presents both challenges and opportunities for inbound logistics. Waste management regulations and non-compliance penalties are increasing. Rising commodity prices and a growing secondary marketplace, however, create an opportunity to recover value from used and scrapped materials. A cost-effective reverse logistics program connects the incoming supply of returns with the product information and demand […]
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Universities Produce Supply Chain Management Talent
Where do companies find their supply chain talent? Does that talent match their needs? Are supply chain management skill requirements the same across all industries? Firms, universities, and professional associations have struggled with these questions for years, and there are no one-size-fits-all answers. Universities are similar to manufacturing companies in that, to survive and prosper, […]
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3PLs: Going Beyond Savings to True Value
Although shipping is an integral and expensive part of daily operations, other considerations often take priority. This may result in unhappy customers, increased shipping costs, and time wasted resolving issues. Companies looking to increase efficiency and maximize shipping dollars often turn to third-party logistics (3PL) providers, one-stop resources that facilitate shipping and logistics needs. 3PLs […]
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5 Ways to Excel in China
China and the wider Asia-Pacific market present an incredible opportunity for businesses seeking to manufacture products, source suppliers, or tap into end markets and sell products to consumers. But a strategic business shift into China takes careful consideration, especially when it comes to supply chain, warehousing, and distribution decisions. Here are five strategies for successfully […]
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Getting in the Zone: FTZs Fuel Improved Logistics
For decades, America’s foreign trade zones (FTZs) have provided a valuable platform for U.S. companies competing in global export markets. The FTZ program was established in 1934 to expedite and encourage foreign commerce. The nation’s 500 zones and subzones are secured areas, often near or adjacent to U.S. ports of entry, and are considered outside […]
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Managing Supply Chain Disruptions
These are challenging times for supply chain managers. During the past few years, a range of events and natural disasters has severely disrupted global supply chains, causing far-reaching effects across diverse geographies and markets. Yet today’s logistics landscape also holds huge potential for supply chain technology developments that help organizations better manage catastrophic events, as […]
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The Fifth P of Marketing
Why are the four Ps of marketing—Product, Price, Promotion, Place—important to logistics practitioners? Collaborating with suppliers and being tightly wired to customers and their demand signals helps craft the right Product. Reducing inventory, touches, and supporting infrastructure helps keep any Product’s Price lower. And when your Promotion materials arrive where they need to be, and […]
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