Articles
Commentary
Choosing 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 […]
Read MoreThe RFID Revolution: Desperately Seeking Standards
Radio frequency identification (RFID) is about much more than Wal-Mart. The world’s largest retailer may have singlehandedly caused the intense publicity that surrounds the technology, as it forced suppliers around the globe to scramble to comply with its strict RFID mandate. The real issues, however, extend far beyond Wal-Mart’s four walls. RFID is fundamentally changing […]
Read MoreSourcing in China? Give BLPs a VIP Role
As global sourcing continues to lengthen the inbound supply chain, companies are placing more focus at the beginning of the chain, where product originates. The growing number of manufactured products originating in Asian countries such as China presents challenges for manufacturers, wholesalers, distributors, and retailers that are sourcing inventory there. Companies have not fully developed […]
Read MoreHere Comes the Judge; There Goes Your Business
Judicial activism impacts all business. Not content to legislate from the bench on social issues, the courts have now gone off the legal reservation and applied the activist and collectivist bias to business, your business. Whether or not you agree with the results of an activist decision is not the point. The point is that […]
Read MoreThe Care and Feeding of Your Global Supply Chain
When an enterprise goes global, the nature of its supply chain has to change—not once, but continually. Nationwide may be big but worldwide is much, much bigger, with more factors exponentially governing the health of an enterprise operating a complex global supply chain. Scaling up to manage a global supply chain means dealing not just […]
Read MoreThe Five Inventories: Invisible to Customers, Crucial to the Bottom Line
Investment sage Warren Buffett once described business as a vehicle in which the rear-view mirror is always clearer than the windshield. He was right, and mismanaged logistics is the reason for the mud on the windshield. Failure to see and manage global supply networks in response to demand makes for muddy business indeed. In the […]
Read MoreWringing Benefits from New Hazmat Regulations
With the Transportation Security Administration’s (TSA) Hazmat Threat Assessment Program firmly in place, motor freight carriers and drivers face a new reality. While the program itself grew from provisions in the federal Patriot Act, and requires states to impose tighter oversight of security risks, the ultimate responsibility for fulfilling its demands falls squarely on carriers […]
Read MoreExpect the Unexpected: 5 Steps for Retail Supply Chain Preparedness
Unpredictable consumers, demand for low prices, and an ever-quickening pace make the retail/consumer package goods supply chain difficult on a good day. Large-scale interruptions—such as the recent dock workers’ strike and overactive hurricane season—further exacerbate an already challenging landscape. While many interruptions are unavoidable, manufacturers and retailers can—and should—take steps to create more agile supply […]
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