Articles
Viewpoint: Logistics & Supply Chain Analysis
Easing the Pain of Product Proliferation
Product proliferation—the explosion in the number of individual stock-keeping units (SKUs) that has occurred over the past decade—poses a major challenge to supply chain managers and adds millions of dollars to logistics costs. In large part, product proliferation stems from the trend toward mass customization—providing consumers with custom-designed, personalized products at affordable prices. Other trends […]
Read MoreGlobal Sourcing: The Path to High Performance
Leading organizations on the path to high performance are those that accelerate global sourcing strategies, drive aggressive cost reductions, and look to contract manufacturing to leverage and expand the value of their brand. Most significantly, these organizations plan to double their spend on low-cost country sourcing in the next three years. High-performance businesses are masters […]
Read MoreHow Do You Spell Transportation Budget Relief? TSM
The increasingly complicated nature of global shipping, coupled with a shift in transportation budgeting from basic transportation costs to a base plus accessorial charges billing standard, has made managing transportation budgets extremely challenging. The good news? This cloud has a silver lining—it is called Transportation Spend Management (TSM). TSM is the practice of targeting specific […]
Read MoreThe Six Hidden Costs of Reverse Logistics
Due to both human nature and training, logistics professionals tend to be forward focused. They are learning, however, that their companies can realize dramatic cost savings by applying forward-focused processes and automation to optimize reverse logistics operations. Reverse logistics is no small matter in the supply chain. Industrial equipment return rates are approximately 4 percent […]
Read MoreU.S. Manufacturers: Have Logistics, Will Prosper
For generations, small and medium-sized manufacturers have been vital to the innovation and productivity of America’s economy. These manufacturers—defined by the National Association of Manufacturers (NAM) as those with fewer than 500 employees and fewer than 2,500 employees, respectively—underpin our nation’s success in international markets, and play a critical role in the future of America’s […]
Read MoreWinning the War Against Inventory Fluff
Nothing is more frustrating for DC managers than seeing unused, dust-covered pallets wasting away in a prime picking zone. Those 10,000 talking Pee Wee Herman dolls your buying department purchased a decade ago, for example, take up valuable space. Being greeted by Pee Wee every morning for the past 10 years is a reminder that […]
Read MoreTaking the Bite Out of Crunch-Time Staffing
Seasonal hiring is one of the biggest challenges an operational manager is likely to face. Finding enough workers with the right skills to get the job done when projects are due, orders are set, and deadlines are looming can be daunting. How did seasonal hiring become such a challenge? Chances are, “human resources expert” was […]
Read MoreCarriers Face Challenges, Shippers Pay the Price
Unless shippers have just returned from Mars, they are aware that motor carriers have been hit with severe cost and capacity issues during the past three years. At the same time, however, if they haven’t been visiting other planets, they also know shippers are paying a heavy price. Shippers first became aware of serious industry-wide […]
Read MoreSecuring Truckload Capacity While Reducing Overall Costs
The motor freight industry continues to be plagued by cost pressures that keep truckload capacity tight and drive shipping costs to record-high levels. Currently, motor freight carriers are struggling with: The growing driver shortage. The lack of long-haul drivers is the fifth-largest position shortage in America—195,000 drivers less than the existing need. Hours-of-Service (HOS) rules. […]
Read MoreWarehousing Bounces Back, Shows New Vitality
More than 100 years ago, Mark Twain said rumors of his death had been greatly exaggerated. As a veteran supply chain management professional, I see a parallel between Twain’s quote and erroneous reports about warehousing’s decline. During the late 1990s and early 2000s, as information systems grew more advanced, pressure to eliminate or minimize the […]
Read MoreOptimize ‘Obnoxious Freight’ With DC Bypass
Companies must continually think of ways to improve supply chain and distribution networks to bolster the bottom line and enhance service levels. With so many products today manufactured overseas, the ability to maintain a streamlined network, despite market volatility, is a key competitive edge. These challenges are magnified for retail and consumer package goods companies […]
Read MoreFuel Surcharges: True Financial Assistance Or Sheer Profit Center?
As the news media continues to report on the rise in world oil, gasoline, and diesel prices, as well as the effects of a devastating hurricane season, you might be forgiven for thinking that fuel surcharge announcements by less-than-truckload (LTL) and small package carriers are justified. Not so forgiving are manufacturers, retailers, and industrial shippers […]
Read MoreBuilding a China Strategy
Every manufacturing company needs a strategically focused business plan for outsourcing supply chain activities globally. Too often, near-term pressures to reduce product costs or increase overall profitability precipitate outsourced or supplier recruitment activities in product design, manufacturing, and logistics. The decision to source value chain activity in China is certainly no exception. While the pressures […]
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 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 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 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 MoreThe Service Supply Chain: Turning Potential into Profit
A growing number of CFOs and manufacturing executives have discovered the profit potential buried in their service business. The big challenge, however, is transforming that potential into profit. While after-sales service on average represents 24 percent of revenue, it generates a whopping 45 percent of profit, according to a recent AMR Research study. Why? As […]
Read MoreAutomate, Optimize, Audit for Smart Supply Chains
While politicians argue about the domestic effects of outsourcing manufacturing operations, logistics professionals know the practice only increases our responsibilities. The frenetic pace of global trade, coupled with the impact of outsourced manufacturing around the world, has transformed delivery of products into a complex engineering task that is quickly creating new jobs. Academia is already […]
Read MoreAir Freight Needs New Business, Fresh Thinking
Let’s tear our eyes away from China. During the past decade, the China market’s enormous growth has hypnotized the airfreight industry. The vast scope and volume of goods winging their way across the Pacific has blinded many in air cargo to negative trends elsewhere. Almost all of air cargo’s other international lane segments—Europe, Latin America, […]
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