Articles
Commentary
Reducing the Risks of Global Trade: Software is Not Enough
In recent years, a growing number of American companies have expanded business operations to a global scale. This increased interest in global trade has created a huge demand for products and services aimed at assisting companies with their import/export operations. Not surprisingly, many companies have turned to technology as a fast solution for gaining global […]
Read MoreMaintaining Profit Margins in Food Service Distribution
Inbound freight programs, onboard computers, computerized routing systems, warehousing management systems, real-time radio frequency, incentive pay programs, global positioning systems, activity-based costing. What do these have to do with food service distribution? The answer is everything. Food service distribution is a highly competitive industry with relatively low margins. Many refer to it as “a penny […]
Read MoreCarriers, Customers Confront Costs, Capacity
Motor carriers are struggling with several issues as they strive to keep customer service levels high and costs low. But two main concerns rise to the top, according to carriers and their customers: escalating costs and the current capacity crunch. Escalating costs. There’s no uncertainty about which way fuel and insurance costs are headed. Prices […]
Read MoreAn Undertaking of EPC Proportions
It is great to have identification tags on everything. But unless those tags communicate to workers, supervisors, or managers, they are purely decorative and costly. This is the rationale behind the emergence of the Electronic Product Code (EPC) Network and both its industry support and its network and code standardization. First, let’s be clear as […]
Read MoreOptimize Your Transportation Program for Greater Efficiency
Transportation is usually the largest cost in a company’s logistics budget. In fact, two-thirds of the spend is often for the movement of raw materials and finished products. Managing these costs has become increasingly complex because of radical changes within the transportation industry. Some variables that have a major impact on the cost of transportation […]
Read MoreTruckers Get Aggressive with Cargo Security
The transportation industry has never been without challenges. It is an industry that is extraordinarily complex and vital to the economy. For the last three years, warnings of terrorist attacks via biological, chemical, and strategic weapons have been a fact of life, with the attacks of Sept. 11, 2001, a frightening reminder that no industry […]
Read MoreAchieving Optimization with Closed-Loop Transportation Management
Today’s transportation managers face conflicting challenges and pressures. Regulatory mandates and security compliance create productivity and capacity issues. Companies are moving toward smaller and more frequent orders. Globalization continues to expand. While all these factors drive up logistics costs, a competitive economic climate puts downward pressure on pricing, even as shareholders seek improved profit margins. […]
Read MoreReducing the Cost of Cross-Border Compliance
In a global economy, the cost, speed, and certainty of crossing borders are all vital to maintaining competitiveness. Falling tariff rates and vanishing trade barriers create the illusion that customs compliance is now simpler. In reality, complex procedures, innumerable conditions set by free trade agreements, stringent security regulations and stricter enforcement, among other issues, result […]
Read MoreFlynn’s Folly
I am on my supply chain security rant again, but it’s not my fault. Someone recommended I read a new book that is touted as “riveting, chilling and gripping” by a segment of the media. America the Vulnerable: How Our Government is Failing to Protect Us from Terrorism was written by Stephen Flynn, a retired […]
Read MoreBracing for an End to Terrorism Insurance
Q: What’s the latest word on terrorism insurance? I keep hearing that this insurance might not be available soon. What does this mean to the transportation industry? A: The terrorist attacks on Sept. 11, 2001, dealt a serious financial blow to the insurance industry. In the aftermath of the attacks, the industry retrenched itself by […]
Read MoreReconsidering the Role of RFID
Is RFID the best thing since sliced bread, another Y2K, or something in between? Is it yet another technology fix on top of all the others or is it a new and essential tool for doing business? Is it a go or a no go? Regardless of your attitude toward RFID, the talk surrounding it […]
Read MoreOutsourced Manufacturing Changes the Face of 3PLs
The debate over outsourcing American manufacturing jobs to overseas workers continues to stir controversy in politics and business. Economists argue that offshoring is the only way to save American industry; the money saved frees capital for research and development and creates top paying jobs. The political entities, in the interest of both the already and […]
Read MoreMaking a Bid for Real Estate Auctions
Over the past several years, millions of square feet of manufacturing and distribution space have been rendered obsolete as technology advances create the need for new production facilities, and the economy continues consolidation and repositioning of corporate-owned real estate. Consequently, the need to accelerate the sale of large surplus assets has created a surge in […]
Read MoreIT Doesn’t Matter? Better Run That By Wal-Mart
In his May 2003 Harvard Business Review article, “IT Doesn’t Matter,” Nicholas Carr famously claims that information technology, much like the railroad and the electricity grid before it, has become an infrastructure tool that doesn’t confer any strategic benefit. Carr’s main point is that because IT is ubiquitous and increasingly less costly than in previous […]
Read MoreEasing Your LTL Carrier’s Burden
Managing transportation costs is more important today than ever before. With the new Hours-of-Service rules, shippers will likely look to LTL carriers to play an increasing role in their supply chains, particularly handling a portion of their previously truckload multi-stop shipments. These volume shifts will likely lead to LTL capacity issues, and shippers may find […]
Read MoreTraveling the 3PL Continuum
Grab your Star Trek mug and take another look at this magazine’s cover. Then come back because I want to talk to you about parallel 3PL continuums. Yikes! Back? What did you see? Don’t worry, the cover is not a Rorschachian intrusion into your childhood. Rather it is meant to represent the continuing evolution—from infancy […]
Read MoreAchieving Success with AS/RS
Storage is one area of the supply chain that can provide increased efficiency, cost savings, and other benefits. In fact, automated storage/retrieval systems (AS/RS) can eliminate the need for physical inventory, according to Jurgen Conrad, CEO and president of Viastore Systems Inc., which develops and implements AS/RS and other automated material handling systems. “Correlating equipment […]
Read MoreThe Logistics of Doing Business in China
Earlier this year, one of the United States’ most famous apparel manufacturers closed its last U.S. manufacturing facility. Like many companies, it now relies on plants in countries across the world for manufacturing. At least one is likely to be in China. China already accounts for a vast amount of the world’s production, including 75 […]
Read MoreRethinking the Role of Public Incentives
When you consider changing a logistics center location, or expanding an existing logistics network, a myriad of crucial factors influence and shape the decisions your logistics team makes. Traditionally, the availability and applicability of local and state incentives is not a make-or-break factor in logistics placement decisions, but perhaps the time has come to elevate […]
Read MoreFinding a Demand Forecast You Can Trust
A forecast is like a flight plan. How far off do you want your trajectory to be when you come in for a landing?
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