Articles
Commentary
States 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. […]
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‘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 MoreGoing Mobile: The Time is Right
In today’s fast-paced world, with online stores, just-in-time inventory, and micro-managed supply chains, near real-time supply chain event reporting is critical. Consumers who shop online from the comfort of their bedroom—or in front of the TV with wireless access to a home shopping network—are not satisfied waiting in the dark wondering when packages will be […]
Read MoreNon-Asset-Based IMCs: Adapting Yet Again
BNSF Railroad’s decision to eliminate rail-owned intermodal equipment by June 2006 is easy to understand. By only accepting private trailers and containers for transit, BNSF’s cost savings and bottom line should swell. Both Wall Street and shareholders applaud the railroad’s move. Will traditional non-asset-based intermodal marketing companies (IMCs) be a casualty of BNSF’s decision? Strong […]
Read MoreMore Lift, Less Drag
There is an inexplicable failure on the part of many in Washington, D.C., to understand that airlines are in business to make money, according to Air Transport Association of America President James May. May’s recent comments to The Wings Club of New York piqued my interest as I sometimes get the impression that our airline […]
Read MoreProtecting High-Value Cargo
Q: My company moves sensitive, high-value instruments throughout North America for hospitals, universities, and government facilities. Because these instruments are difficult to handle, we use special riggers to install them. Given these instruments’ specialized nature, when damage occurs during transit and the instruments must be repaired or replaced, it means significant costs and delays. We […]
Read MoreERP and SCM: Making the Marriage Work
Once a cozy nook for enthusiasts, supply chain management has turned into a major focus for enterprises worldwide. That’s why IFS North America has extended its services from pure Enterprise Resource Planning (ERP) to offer component supply chain software. “ERP and supply chain management need to work hand-in-hand,” notes Cindy Jaudon, president of IFS North […]
Read More7 Tips for Negotiating Small Parcel Contracts
Small businesses are the cornerstone of the U.S. economy, representing 99.7 percent of all U.S. employers, according to the U.S. Small Business Administration’s Office of Advocacy. A vast amount of small package freight moves throughout the United States on behalf of these companies, and in most cases, parcel carriers such as FedEx, UPS, and the […]
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Not-So-Friendly Foreign Liability Laws
The United States may be the largest trading nation in the world, but U.S. importers do not always dictate the rules by which imports are governed. This is especially the case when it comes to establishing carriers’ liability for lost, damaged, or delayed shipments originating in foreign countries. Some foreign nations have adopted novel rules […]
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