Articles
Commentary
Identifying Products: It’s Not Just About RFID
Not all issues surrounding proper identification of products involve RFID. Companies must address some core challenges to reap the maximum benefits of product identification and visibility. In this age of RFID research, development, hype, good works, pilots, case studies, claims, ever-evolving standards, and the force of the big gorillas—super-retailer Wal-Mart and the Department of Defense—it’s […]
Read MoreSelecting a Logistics Supplier? Think Supple
We all know why companies outsource logistics functions—outsourcing should allow them to save money and focus on their primary goals. “Should,” however, is the operative word. To turn “should” into “does,” companies need to partner with a supple supplier. What is a supple supplier? One that has no set ideas on best practices when providing […]
Read More
Getting Time Limits on Your Side
Shippers are familiar with the rule that they must file claims against carriers in writing within the time limits defined in carriers’ bills of lading or tariffs, or in government statutes or treaties. But rules have exceptions. The Carmack Amendment, for example, states that a motor carrier, freight forwarder, or railroad may not limit the […]
Read MoreDoes RFID Pass the Return on Assets Test?
Proponents rarely discuss RFID without claiming dramatic inventory savings. These savings, however, require businesses to invest in RFID and wait to reap returns. When evaluating investments—such as RFID—aimed at reducing inventory and working capital, consider the impact on Return on Assets (ROA), a proven indicator of an investment’s financial impact. ROA is calculated as revenue […]
Read MoreFreight Damage Claims: Know, Act, Reap
The Latin phrase Ipsa Scientia Potestas Est may be the most quoted maxim of our information age—knowledge is power. In business we use the “knowledge is power” principle to shape our decisions so we can reap positive long-term rewards. One unsung area where properly applied knowledge yields power is comprehensive management of the freight damage […]
Read MoreDiversifying Your Supply Chain Portfolio
Diversification is a sound strategy for investors and logisticians alike. Just as those skilled in arbitrage hedge investments to mitigate risk and allow for modest portfolio growth by taking advantage of small value increases in other areas, supply chain practitioners diversify their proprietary and outsourced logistics assets—abroad and at home—to lay off risk, reduce costs, […]
Read MoreWorking on the Railroads
The recent fuel crisis emphasizes just how much we need our national rail system. The rails, with their efficient fuel usage, are a vital link in most supply chains; the only link in others. Rail hubs and intermodal transportation connect shippers to truckers, and to ocean and air carriers. But the fuel crisis has also […]
Read MoreStates Targeting Logistics Hit the Bull’s-Eye
How much do you know about state and local economic development policy? Here’s a quiz. Check which industry is most favored in terms of federal, state, and local tax incentives: Industry A, where national employment has grown by 12 percent over the last five years, and will continue to accelerate with the globalization of the […]
Read MoreDon’t Put All Your Eggs In China’s Basket
I recently gave a speech at a Trans-Pacific Air Cargo Conference in Los Angeles titled, “Don’t Put All Your Eggs in China’s Basket,” and I was practically booed offstage. The audience did not want to hear negative, derogatory, or dismissive talk about the booming China economy. My listeners were the economic counterparts of religious evangelists; […]
Read MoreDo You Need WMS Best Practices? 10 Telltale Signs
Most supply chain managers can share more horror stories than Stephen King. When you have to deal with demanding customers (aren’t they all?), and super-tight shipment schedules, every so often things are bound to get a little dicey. But if you’ve reached the point where just looking at your warehouse sends chills down your spine, […]
Read MoreSupply Chain Security: Fact vs. Fiction
Man has always been intrigued by transmutation—transforming one element into another. In days of old, we tried changing lead into gold. Today, some are trying to convert the public’s fear of supply chain vulnerabilities into political currency, or solid gold votes. While concern is warranted, some choose to grandstand by floating obviously impossible solutions against […]
Read MoreBuying Business Insurance? Dig Deeper
Q: It has been four years since the events of Sept. 11 caused the world’s insurance market to restrict coverage and raise prices. Now, many are wondering if Hurricane Katrina will have the same effect on insurance. What do forecasters predict? A: Insurers are still assessing Hurricane Katrina’s financial impact, gathering details on the magnitude […]
Read MoreInfrastructure: The Weakest Link
A supply chain is only as strong as its weakest links, which today are found in down-to-earth, practical transportation modes—rail, ocean, and trucks—and their support systems. Too many infrastructure links that enable supply chains to operate in the United States are old and antiquated. They are partly clogged with overcapacity, breaking down, or simply just […]
Read More3PLs Deliver on the Global Promise
Businesses need many qualities to succeed in today’s global market, but uniformity, consistency, and flexibility are the most critical. Strong organizations leverage these qualities to capitalize on the economic benefits of worldwide sourcing and distribution, while satisfying their customers’ needs—whether the customer is around the block or across the ocean. Best-of-breed 3PLs share the same […]
Read MoreChoosing a DC Location: Keeping Success in Site
The decision to build a distribution center comes with expectations that it will help a company reach key markets, hire an appropriate workforce, and maximize profitability while minimizing operating costs. Finding that ideal location in a community that embraces the company’s operations, however, is more difficult than merely choosing any site within a targeted region. […]
Read More
‘Model Contracts’ Not the Right Model
During the past few years, "model contracts" drafted by organizations representing shippers, carriers, and brokers have become common. Such agreements, however, are not in shippers’ best interests because, in drafting them, organizations bargain away some of shippers’ rights and remedies without their input. Recently, the American Trucking Associations (ATA)—which represented truckers during model shipper/trucker contract […]
Read MorePulling Back the Curtain on Logistics, Purchasing Practices
Logistics, purchasing, and inventory management can be thankless jobs when everything goes according to plan. No one applauds when manufacturing deadlines are met, quality products ship on time, and workers have the right supplies. But if deliveries arrive damaged, or low inventory halts production, executives pull back the curtain and discover who’s to blame. Bidding, […]
Read MoreShould You Sell or Outsource In-House Transportation Assets?
Many companies with in-house transportation capabilities in place to support core operations often explore outsourcing to cut costs and liberate capital. Shareholders of these companies—whether public or private—are often better served by viewing these assets as a standalone business for an eventual spin-off or sale as a going concern. Whether to sell, spin off, or […]
Read MoreWhatever the Obstacle, Truckers Come Through
While covering this industry for more than 20 years, I’ve learned a lot about the people who work in logistics and transportation. One thing that consistently stands out is their passion and dedication to moving our nation’s freight—and economy—forward. This passion and dedication became apparent yet again as we watched Hurricane Katrina play out. The […]
Read MoreAs the World Shrinks, The Supply Chain Grows
In Detroit, the good old days of General Motors viewing Detroit-based Ford and Detroit-based Chrysler as its main competitors are long gone. Even the days when Volkswagen and Japanese auto manufacturers became apparent competitors to the Big Three’s largely myopic corporate managers have disappeared. These were days of nostalgia and naivete; a great deal else […]
Read More