Articles
Commentary
Take a Deep Breath Before Diving Into Global Outsourcing
Over the past two decades, production pioneers at automotive and high-tech companies turned outsourcing into a baseline capability, significantly enhancing profitability and productivity. Today, manufacturers of all sizes in every industry are properly exploring outsourcing options as they grapple with the urgent need to reduce costs, enhance profitability, and increase competitiveness. This is especially true […]
Read MoreBouncing Back When Disaster Strikes
When natural disasters strike, businesses often must frantically search for essential items to deliver to beseeching customers. Adept use of sophisticated information tools can help retailers and suppliers “weatherproof” their supply chains. Diverting shipments, moving inventory to forward locations, and anticipating potential spikes in demand, can help moderate the effects of natural disasters. The following […]
Read MoreCreating an Agile Transportation Enterprise
Due to an increasing number of enterprises involved in global logistics, and a growing number of logistics processing points, supply chains have become less agile. In response, manufacturers and retailers are developing demand-driven supply chains, in which suppliers manufacture products in the shortest possible time using the least amount of inventory. To achieve this goal […]
Read MoreHitting the Infrastructure Snooze Button
Folks in our business didn’t need the Minneapolis I-35 bridge collapse to serve as a wake-up call; we talk about maintaining infrastructure constantly. Just one morning before the collapse, I exchanged e-mails with Doug Grane, president of Central States Trucking, who, in a recent guest editorial, wrote: “Most trucking company owners would agree that as […]
Read MoreSeeing the Value in ‘Seaworthy’ Packaging
Q: My company is a logistics service provider. We recently shipped a container of machine parts to Brazil under an arrangement that included the packing and stuffing of six crates. We received instructions from the customer that the packaging needed to be “seaworthy,” and we hired a subcontractor to perform the packaging and stuffing. When […]
Read MoreComplex Technology Optimizes Basic Concepts
As supply chains continue to increase in scope and complexity, the technology powering those supply chains likewise becomes more complex, specific, and compartmentalized. Some companies, however, are realizing that in the quest for ultimate technology sophistication, they may be overlooking some very basic business concepts. Take working capital, for instance. A business can boast cutting-edge […]
Read MoreReal Estate, Logistics, and Politics Converge
Legendary baseball philosopher Yogi Berra once said, “90 percent of the game is half mental.” In the development world, 90 percent of real estate is half logistics. As shippers increasingly examine ways to make their global supply chains reliable and diversified, they look to infrastructure improvements to support their plans. Because globalization has added length […]
Read MoreSqueaky Wheels Get Political ‘Oil’
In March 2007, I was fortunate to travel to Washington, D.C., as a delegation member of the Illinois Trucking Association. I spent several days discussing issues such as diesel prices, alternative energy, taxes, and toll roads with members of Congress. In every instance, these issues directly correlate with the financial well-being of the trucking industry. […]
Read MoreVisibility: Seeing is Believing
Take a look at this list of avoidable logistics problems: Time wasted manually scheduling shipments and tracking products from channel to channel. Missed opportunities from not knowing the exact quantity of inventory in transit and stock availability. Strained relationships after shipments fail to make their destination on time. The common element is a lack of […]
Read MoreGetting Government to Understand The New Science of Transportation
A freight transportation revolution has taken place in the past 25 years. Consumer demand, technology, expanding population centers, and vast global enterprises have combined to make intermodal the international standard for moving goods. Unfortunately, when it comes to U.S. government policy-making, ignorance of intermodal freight transportation is almost universal. The nation’s government agencies have not […]
Read MoreMid-Size 3PLs: What Does Not Kill You Makes You Stronger
Ah, conventional wisdom. Not long ago, observers of the third-party logistics segment predicted the demise of many Tier II and Tier III 3PLs. Smaller players could not keep up with the increasing complexity required to serve customer demands, they said. In addition, they predicted merger and acquisition activity would create a pool of large 3PLs […]
Read MoreRFID: A Tale of Two Cities
The current market for RFID supply chain applications reminds me of the opening line of Charles Dickens’ A Tale of Two Cities. According to RFID vendors, the market is poised for strong growth as active RFID solutions pick up speed, equipment prices begin to drop, and the industry continues to make progress adopting global standards. […]
Read MoreSourcing in a Seller’s Market
Rising commodity prices, growing global consumer demand, and increased political instability have put an end to the buyer’s market in procurement. Today, buyers are just as likely to be “fired” by their suppliers as they are to experience supply chain shortages or out-of-stock notices. So what is this new “seller’s market” like? And is the […]
Read MoreSailing Into the New World
The Spanish and Portuguese sailed into the New World half a millennium ago seeking fame and fortune. Today, a new breed of intrepid business explorers is finding safe anchorage in Latin America, targeting the area’s abundant potential for manufacturing and logistics activities in hopes of achieving fame and fortune of their own. Inbound Logistics first […]
Read MoreBuying Insurance: Domestic or Foreign?
Q: I am a logistics operator who handles inbound and outbound shipments for partners around the world. I am currently reviewing insurance options to ensure that my cargo and company are protected against accidents or damages that may occur during transit. My broker recently sent a proposal that fits my needs, but I feel uncomfortable […]
Read MoreWhat Are Your Tech Vendors Up To?
Twenty-five years after its initial launch, the annual Distribution Computer Expo is still an important event for previewing the latest in logistics and supply chain technology. The conference is a one-stop shop for catching up with the various providers that power supply chain technology. Here are highlights from my meetings with technology companies that attended […]
Read MoreSite Selection: Think Globally, Act Locally
The globalization of commerce has created a new infrastructure that is fast becoming the backbone of our information economy. This change also affects worldwide logistics operations. Because of the global economy, companies have a greater need to operate their supply chains at maximum efficiency. To achieve these results, many Fortune 500 corporations—along with small and […]
Read MoreTransportation as Corporate Change Agent
For many years, transportation was considered the backwater of the business world. Over the last decade, however, forward-thinking companies have identified transportation as a driving force for change. As a result, they realized increased profits and improved customer service throughout the supply chain. Wal-Mart, for example, uses its distribution savvy to dominate the retail field—and […]
Read MoreRestricted Party Screening: Who Are You Doing Business With?
Exporters and financial institutions historically used Restricted Party Screening (RPS) solutions to determine whether the names and addresses of their consignees appeared on any “denied parties” lists. Today, companies recognize that they may not deal in any way with certain blacklisted parties. Since Sept. 11, 2001, regulatory agencies have made clear their expectations that companies […]
Read MoreForklift Fleet Cost Management: It’s a Question of Time and Savings
Abundant questions and costs surround forklift fleet management; finding the answers and controlling those costs can be illusive. Many forklift fleet managers have a difficult time providing accurate answers to the myriad questions that need to be addressed (see sidebar, below). But accurately answering these questions can mean the difference between saving tens of thousands […]
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