Articles
Commentary
Not Your Father’s Airfreight Forwarder
“We’ve been using airfreight forwarders since the beginning of time,” says Andy Bordash, head of the logistics and operations team at Bayer Health Care. Many IL readers can say the same thing, but times have changed. As we report in The Plane Truth About Airfreight Forwarding, written by Leslie Hansen Harps, smart forwarders, both large […]
Read MoreMaking Sense Out of Transportation Insurance Policies
Q: I am a freight forwarder, providing freight transportation services to my customers. I use all modes of transport to all parts of the world. I operate a small warehouse, own two trucks, and when necessary, partner with other operators to give my customers a complete intermodal service. Can you help guide me through the […]
Read MoreThrow Off Your Chains, Take Up Nets
Driving business these days is the production of increased profit to the enterprise. Other drivers—globalization, outsourcing, customer satisfaction, RFID—pale in comparison to a positive profit picture. So, how can we look at the supply chain from a profit perspective? First, we must ask ourselves, where is the profit in the supply chain? This sounds like […]
Read MoreStreamlining Truck Visits at the DC
While the full impact of the Hours of Service (HOS) ruling is yet to be determined, it is obvious that truck drivers need to manage their time more carefully to minimize any loss to productivity. Under the new regulations, a driver’s idle time counts toward the maximum allowed 14 hours on duty. Shippers can mitigate […]
Read MoreDoes Your 3PL Have an Effective Hazmat Program? Here’s Why it Should
Safe handling and management of hazardous materials has come a long way since logistics providers crossed their fingers and hoped that an incident involving hazmat wouldn’t happen. And if it did, they hoped that the carrier would do a good job of handling it. Gone are the days when simply complying with a dizzying array […]
Read MoreSomeone is After Your Job…
And they want it to relocate it—no, not to Mumbai or China, but right here in the United States. Cities, states, and regions are increasingly competing to attract logistics and transportation jobs. Why? Because U.S. manufacturing jobs, and more recently, service sector jobs, continue to migrate to lower wage, lower tax, lower liability, lower regulation […]
Read MoreProspective RFID Users Face Supply Chain Challenges
Although radio frequency identification (RFID) technology is not new to logistics or the supply chain, interest—and the need for interest in it—has skyrocketed. Alarms set off by the Department of Defense and Wal-Mart, among others, has many a supply chain manager in a tizzy. The DoD and Wal-Mart now mandate that all cases and pallets […]
Read MoreKnowing What and When to Outsource
Anyone who has visited Kansas City to savor down-home cooking and fried chicken will recognize the tag line, “We Choke Our Own Chickens” as belonging to Stroud’s restaurant. Marketers say that you have to be on the edge to cut through all the clutter, and I think you will agree that Stroud’s slogan has done […]
Read MoreCreating Competitive Advantage With Service Parts Logistics
After-sale customer service operations are a strategic part of every business. Not only is service a key differentiator, the difference between revenue contribution of service operations and total revenue can be as large as 40 to 60 percent. Many companies today are even willing to pay more for high levels of service. While most companies […]
Read MoreWhy Motor Carriers are Turning To Pallet Position Pricing
Here are two scenarios that involve the same freight market. In the first instance, a truckload carrier looks for freight to fill out a three-quarter load from Los Angeles to Atlanta. If the carrier can add a quarter load, the revenue on the load suddenly jumps to a highly profitable level. But there may not […]
Read MoreIT Does Matter
Arguably the most important development impacting transportation, except for the invention of the wheel, has been the application of information technology. Yes, I know, the nationwide rail network, the excellent interstate highway system, the containerization concept, the Panama Canal … But the reason I think logistics IT is preeminently important is because it impacts everyone […]
Read More8 Steps to Lower Insurance Premiums
Q: I have experienced big increases in my insurance premiums. Why has this happened and what can I do about it? A: Like all commodities, insurance is subject to the laws of supply and demand. Its cost is determined by the amount of capacity available in the world’s markets. In the 1990s the world experienced […]
Read MoreIntegrating SCM with Product Lifecycles
All manufactured products move through a cycle of creation to maturity to decline. There are exceptions—a dairy product such as milk, for example—but the general rule is that product evolution is a stark reality within the manufacturing enterprise. Product Lifecycle Management (PLM) software recognizes this. Let us look at the process of product lifecycle management […]
Read MorePenetrating the U.S. Market With No Warehousing Investment
Warehousing just got a major facelift in the global supply chain world. Companies are starting to globally expand their product markets without the added weight of materials management, warehousing and distribution costs—and without adding staff in new markets. An excellent example of this new logistics trend is a Middle East manufacturer of ready-to-assemble consumer PVC […]
Read MoreBreaking the Size Barrier in Global Logistics
The last three years have brought a whirlwind of activity to global sourcing, which eliminated many traditional manufacturing jobs in the United States. The Bureau of Labor Statistics estimates that the manufacturing workforce in the United States shrank by two million production jobs between 2000 and 2003. Headlines appear weekly with news of more outsourcing […]
Read MoreInventory Optimization: The Last Frontier
Two opposing forces are at work in business today: the need to reduce costs and the need to improve service levels. Bolstering one almost certainly causes the other to suffer. For example, lower your inventory to reduce costs and it becomes difficult to meet varying customer demand. Increase safety stock to meet peak demands and […]
Read MoreC-TPAT: Staying Ahead of the Curve
John, the newly appointed Ohio Valley plant manager, arrived at his desk 6:30 a.m. Monday with a plan to organize the week. He was surprised when almost immediately the phone rang. It was a freight forwarder in Hong Kong wanting to speak with the plant’s logistics manager, Barbara. The forwarder told John that some electronics […]
Read MoreThe Politics of Fear
Media-amplified hysteria and politicization of homeland security in certain circles may be driving security policies toward unreality. Some believe that the only way to protect good people from bad people is to lock down the good people instead of aggressively sanctioning the bad. Are we over-emphasizing security at the expense of interdiction in the war […]
Read MoreInner City Direct-to-Store Delivery: Complex but Improving
Last month’s column dealt with the problems associated with transportation and logistics in an inner city environment. The staff and manager of a New York City supermarket, in their attempt to receive a shipment, were faced with numerous challenges such as parking restrictions and limited access to delivery doors. The problem of receiving, however, is […]
Read MorePlease Don’t Squeeze the 3PL
When is it practical to develop a cost-plus relationship? Many companies that outsource spend up to 60 percent of their logistics management time defining, selecting and negotiating the 3PL agreement yet do not fully realize the total benefits available from the outsourced relationship. The cost-plus agreement must allow the outsourcer to maximize the ROI from […]
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