Articles
Commentary
Automation Grows, But We Still Need People
One endless debate in space exploration is whether, and to what degree, humans can contribute. Do we send more robots to Mars or should we concentrate on a manned mission? While the cost of human space exploration is mind-boggling, it is hard to believe that human perception and inquisitiveness is of no use. It is […]
Read MoreMission-Critical Service Parts Logistics: Making the Impossible Possible
Mission-critical service parts logistics requires sound processes, precision, and an organizational commitment to make the seemingly impossible possible. After all, guaranteeing expedited delivery within 90 minutes to four hours anywhere in the world can be a daunting challenge. This is the reality that manufacturers and service providers face, however, particularly for high-tech equipment. With demanding […]
Read MoreDoes Your Cargo Insurance Deliver?
Cargo theft amounts to $25 billion in direct merchandise losses each year, estimates the National Cargo Security Council. Full truckload theft in 2008 increased 13 percent over the prior year, reports FreightWatch International. Considering that 675,000 registered interstate motor carriers move 65 percent of the freight in the United States, the odds are good that […]
Read MoreWrong Street Journal?
A recent Wall St. Journal article, “Clarity is Missing Link in Supply Chain” (May 18, 2009) wrongly defines just-in-time (a small and strictly defined subset of demand-driven logistics), then concludes that practicing JIT in a recession makes things worse. The article opens with the CEO of chip designer Zoran Corp., Sunnyvale, Calif., wondering why his […]
Read MoreSustainable Network Design: The Right Tools Make All the Difference
Until recently, supply chains were designed to deliver goods on time and at the lowest possible cost. This is still the focus for many companies, but as consumer pain increases due to rising energy costs, and environmental concerns such as global warming achieve greater awareness, forward-thinking businesses realize green issues are here to stay. These […]
Read MoreIs Dedicated Fleet Service Right for Your Company?
Implementing a dedicated fleet—assigning a group of tractors, trailers, drivers, and other resources exclusively to carry out operations for a chosen set of facilities or lanes in any transportation network—offers a number of potential advantages. Among the benefits shippers may derive are improved on-time delivery performance, guaranteed capacity, and reduced freight transportation costs. Relying on […]
Read MoreFrom Sow’s Ear to Silk Purse
Turning adversity into opportunity is standard practice for logistics professionals, but it seems everyone is taking that approach in today’s economic climate. Like most businesses, warehouses and third-party logistics providers (3PLs) are feeling the pinch. The part of their business based on creating value for customers, and sharing in that, is doing OK. But for […]
Read MoreC.H. Robinson Case: Brokers Learn Liability Lesson
Q: I read about a recent case in which a jury awarded $23.7 million against a transportation broker who hired a motor carrier that was involved in a fatal automobile accident. As I understand it, the transportation broker did not own or operate the truck that caused the accident. How is it possible that the […]
Read MoreMaking Supply Chain Data Dynamic
Today’s supply chain managers are hot for more data and greater integration. Their motive is simple. They recognize that they can wring profit by reducing complexity or isolating actions. It is hard to argue against this point of view, especially when companies integrate data with the goals of cutting costs, reducing working capital by holding […]
Read MoreOffshoring vs. Right-shoring: How to Decide
For more than a decade, companies have used offshoring as a primary strategy for maximizing value in the global manufacturing supply chain. The advantages of offshoring are eroding, however, due to rising wages in overseas locations, volatile fuel costs, global security concerns, and the worldwide economic crisis. In response, some U.S. manufacturers and parts suppliers […]
Read MoreFrom Click to Curb: Earning and Keeping E-commerce Customers
For consumers who want to avoid dealing with overzealous salespeople and crowded stores, online shopping offers the perfect alternative. U.S. online sales are expected to grow from $132 billion in 2006 to $271 billion in 2011, according to a study by Forrester Research. The same report estimates that the e-commerce market segment could soon claim […]
Read MoreFinding New Value in Truck Leasing
Back when the economy was humming along, business logistics managers turned to leasing for their transportation programs because it enabled them to focus energy on their core business. Today, logistics managers’ priorities have changed dramatically, but leasing still makes sense. Now, with all eyes on the bottom line, businesses choose leasing because it’s a viable […]
Read MoreSaaS: A Distribution Model For Tough Times?
The lead article in our annual technology issue 15 years ago featured Barbara Barnhill, transportation supervisor for Elizabeth Arden. She excitedly shared the details of her company’s “revolutionary” inbound transportation program, which racked up million-dollar savings by using the latest technology—a fax machine. Times have changed since the fax machine and its dial tone were […]
Read MoreThe Evolving Supply Chain Manager
Managing today’s complex supply chain requires the skills of a C-level executive, plus the special knowledge of supply chain disciplines including forecasting, purchasing, transportation, inventory management, quality, warehousing, channel costing, and technology. Fifty years ago, nobody managed a supply chain. Departments and individuals teamed up to obtain supply certainty and efficiency. But conflicting departmental and […]
Read MoreA Speaking Truth to Power
In a monumental case of bait and switch, the current White House administration is set upon a course that will handicap every U.S. worker and business, and give global economic advantage to all who are not lucky enough to live here. Energy policy—specifically, the carbon offset cap and trade plan—will transfer wealth to the government […]
Read MoreHelp Wanted: Seeking Qualified Logistics Professionals
Q: As a logistics provider, I find that hiring qualified staff has grown increasingly complicated with the rise of demands such as regulatory compliance, security initiatives, and constantly changing industry standards. Why is this? What can the supply chain and logistics sector do to attract a younger generation of professionals to this field? A: One […]
Read MoreBuy American, Transport American?
For the past decade or more, conducting business globally—outsourcing manufacturing abroad, shipping through foreign flags, and sourcing parts worldwide—has been the rule, and for many practical reasons may stay the rule. While national borders stay in place for politicians, they have essentially disappeared for the business community. But the cry to keep business in America […]
Read MoreCutting the Fat from Equipment Redundancy
During a recent tour of a major logistics company, I was amazed at the emphasis placed on honoring commitments to the shipper. At every step of the process, the company had contingency plans in place to ensure that objectives were accomplished and shippers were satisfied. Then our guide indicated some idle equipment and explained it […]
Read MoreA New World of Logistics Enlightenment
Our annual education issue honors the importance and value of logistics education. Acing logistics basics helps practitioners master supply chain complexity. It’s practical to the core and strategic when it needs to be. But it isn’t static. The challenges of globalization continue to present new ways and means to engage learning. In this sense, history […]
Read MoreBrokering Change
W hen I started in this industry in 1978, transportation companies were known as truck brokers. They primarily moved shipments of agricultural products under rates that were exempt from Interstate Commerce Commission regulation—that is, negotiable according to supply and demand. In 1980, truck transportation was deregulated. The term “property broker” was defined, and the industry […]
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