Articles
Commentary
Macro? No, Micro Economics
“The economy is bad so we’d better make cuts that hurt customer service.” OK, no business would set out with this goal, but often the results are the same. And the consequences of poor service in today’s economic climate are irrevocable. While the macro economic news is bad, customer service is all about managing micro […]
Read MoreManaging Data One Byte at a Time
Increasing connectivity, largely a result of the Internet and the facility with which we collect data, has changed the pace and relationships of business. To a great extent, local business no longer exists, as all commerce and trade is tied together by information. This is evident as the world’s economy stumbles. Business is, quite simply, […]
Read MoreSuccessfully Managing Long-Tail Inventories
The concept of the long-tail retail environment refers to the extended downward slope of a unit sales curve that, when illustrated graphically, depicts a “long tail” as demand wanes toward zero. Introduced by Wired Editor in Chief Chris Anderson in 2004, the term originally described Internet-based companies, such as iTunes or Amazon.com, whose environments are […]
Read MoreGreen Transportation: On the Road to Sustainability
In the past, transportation efficiency concerns primarily focused on areas such as route optimization, capacity planning, and partner collaboration. Today, efforts to improve service and reduce costs include an additional element: environmental impact. As new and aggressive social, environmental, and political pressures evolve, shippers and carriers must adopt and act upon “green” opportunities. Failure to […]
Read MoreGetting All, Like, Demand-Driven
Did you know that a 16-year-old girl in Spain is the logistics genius behind one of the most sophisticated and effective retail supply chain operations on the planet? Neither does she. The typical Zara demand signal—to buy or not to buy—sets in motion a demand-driven process that has the global apparel chain retailer, based in […]
Read MoreSigned, Sealed, Delivered…But to Whom?
Q: I am a warehouse operator. An insurance company recently refused to provide me with coverage for the wrongful delivery of goods stored in my warehouse, citing the Uniform Commercial Code as the reason. Can you explain the problem? A: The Uniform Commercial Code (UCC) is a body of law that has been accepted, with […]
Read MoreCurve Appeal
The efficient delivery of goods requires a thoughtful way to negotiate curves and arcs to find the optimal route.
Read MoreCan You Afford to Ignore Supply Chain Risk?
As companies gravitate toward a “build anywhere, source anywhere, sell anywhere” mind-set, supply chain risks—entering into long-term contracts at unfavorable prices or sub-optimal quality, excessive dependence on one geography or supplier, lead time variability, and supply disruptions caused by natural disasters—assume greater proportions. Any supply chain setback could negatively impact average operating income and return […]
Read MoreCommunity Service: Supporting Logistics Education
Manufacturing jobs are leaving American shores at an increasing rate. While this presents challenges for manufacturing companies, it also boosts demand for distribution and logistics professionals. Because many products manufactured overseas are ultimately consumed in the United States, the need for warehouses and distribution centers to move those materials from port of entry to point […]
Read MoreBoeing, Boeing Gone?
When times get tough, supply chain/logistics redeployment grows increasingly important. Part of evaluating site locations for your manufacturing and logistics facilities involves considering fundamentals such as proximity to sources and customers, and transport infrastructure. But there is a “softer side” of site selection. As I write this, Boeing is in the midst of a strike […]
Read MoreDiagnosing Complexity
Complexity can be a concern wherever it arises. More often than not, it is perceived as a burden rather than a virtue. Simplicity, on the other hand, has shown great value in science and engineering. Yet even in these areas, complexity still persists. When complexity runs wild it becomes chaos. Some gurus tell us to […]
Read MoreHazmat Education Is the Best Response
Today’s logisticians need to be well-grounded in many areas of hazardous materials (HM) management and alert to the prevalence of these regulated materials throughout the supply chain—in the workplace, in the work process, and in distribution. HM falls into two categories and three broad applications. The two categories are materials inherently hazardous and materials that […]
Read MoreReal-Time Location Systems Cover Your Assets
The ability to track assets in a broad geographic area, typically outdoors, is key to transportation management. Satellite and cellular network-based technologies are often used for real-time asset tracking outdoors. But to track assets indoors—in factories, warehouses, or other controlled environments—Global Positioning Systems (GPS) and cellular-based systems lack sufficient signal strength. Alternative techniques employing low-cost […]
Read MoreThe Short Loop is Better
Suppose, for some unknown reason, the hot/cold water valves for your shower were installed in the basement, next to the water heater. When you wanted to take a shower, you’d have to go to the basement, turn the water on, then walk upstairs to the bathroom. If you needed to adjust the water temperature or […]
Read MoreA Behind-the-Screens Look at Air Cargo
Q: I am an air consolidator and arrange to ship cargo to domestic and international destinations. I understand that the Transportation Security Administration is developing a system to subject 100 percent of domestic and international cargo to security screening. Are you familiar with this initiative, and how will it affect my operations? A: Last year, […]
Read MoreKeeping Our Heads Above Water
Water is one of the world’s biggest challenges. There is plenty of it, but it is often in the wrong place (favored industrialized nations), at the wrong time (a hurricane or flood), and in the wrong form (polluted or invaded by salt). Poor logistics, supply chain, and financial management, with some political issues thrown in, […]
Read MoreCultivating Healthy Carrier Relationships
Developing robust relationships with your carriers can be challenging, but it’s essential to establishing well-defined expectations. Capacity shortages and other carrier-related service issues will inevitably occur, so you and your carriers must work together to sustain a mutually beneficial relationship when times get tough. The following best practices can help you maximize value within your […]
Read MoreCustomer Service: The Two Percent That Matters Most
Evidence abounds that American industry’s customer service system is broken. For example, 80 percent of companies believe they provide superior customer service – yet only eight percent of their customers report having received superior service, according to a recent Bain & Company survey. A business that is unaware of its customers’ perceptions is headed for […]
Read MoreE-Commerce Tools Can Speed Ocean Trade
In the days before e-commerce, the only way to orchestrate an ocean container shipment was to call and fax every party to the shipment. This world still exists, but it’s fast being superseded by e-commerce tools that free shippers to manage supply chain risk and efficiently serve customers instead of chasing down details and coping […]
Read MoreAll the Low-Hanging Fruit Have Not Yet Been Picked
Many retail logistics practitioners who are good at their jobs will swear to you that all the low-hanging fruit on their optimized logistics tree has already been picked. Sure, one way to face today’s challenges is to cut transportation and logistics costs. But what’s hanging on the other side of the tree in the orchard […]
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