Articles

Viewpoint: Logistics & Supply Chain Analysis

Distribution Takes Center Stage

A paradigm shift has occurred within the supply chain, and distribution is taking center stage. In the midst of a total revival from its undistinguished past, distribution is now more instrumental than ever to an organization’s success. Traditionally, distribution took a back seat to manufacturing and other supply chain activities—not surprising given its historical perception […]

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Turning Returns Into a Competitive Advantage

Growth of direct-to-consumer sales through catalogs, television, and the Internet continues to explode. Business-to-consumer retail e-commerce sales in the third quarter of 2003 totaled $13.3 billion, a 27-percent increase over 2002, according to the U.S. Census Bureau. While direct shopping makes it easy and convenient for customers to buy merchandise, it does not allow them […]

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Uncle Sam to Food Importers: Register

This past August, Friday the 13th meant more than just bad luck for food importers. Those companies not registered under the Food and Drug Administration’s (FDA) new Bioterrorism Act faced a slew of problems—including delayed deliveries, fines, and heavy scrutiny of all cargo—by failing to meet the Aug. 13 registration deadline. Set forth in February […]

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Maintaining 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 […]

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Reducing 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 […]

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Easing 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 […]

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C-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 […]

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Forging Industry-Academia Partnerships

Economic pressure derived from reduced state and federal funding has fueled escalating tuition costs. As a result, government, taxpayers, parents, and business practitioners are paying closer attention to the activities of business faculty. Critics contend that higher business education is breaking down, that the system is churning out irrelevant academic research and training students to […]

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The Full Cost of Cargo Losses

All too often, supply chain managers do not properly calculate all the elements of cargo loss. As a result, they minimize the full impact on their bottom line. Most look only at cargo theft or damage to determine the financial impact on their company. Many other factors, however, need to be considered when calculating the […]

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Integrating Multi-Channel Retail Systems

Many multi-channel retailers didn’t start out that way. As new channels grow, it becomes necessary to integrate them to provide a unified customer experience. Unfortunately, this integration effort often encounters organizational, technological, and process problems that are the result of single-channel-focused solutions, or companies never imagining that they would serve more than one channel. Most […]

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Evaluating the True Cost of Overseas Manufacturing

United States manufacturing continues to decline. Since 1970, manufacturing employment has dropped 22 percent—nearly nine percent of that drop in the last 10 years alone. Low-cost labor from Asia and Latin America has created extreme price pressure, and manufacturers are especially hard hit, experiencing brand erosion due to private label growth of major retailers. Many […]

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Getting a Grip on Service Parts Operations

Companies have been under tremendous price and volume pressure in the finished goods business for quite some time, but services and parts is the logical next opportunity to improve revenue, boost profits, and directly impact customer satisfaction. In fact, Piper Jaffrey U.S. Bancorp estimates that spare parts represent $700 billion in spending and eight percent […]

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Is It Time to Jettison JIT?

Manufacturers, retailers, and suppliers have come to rely on Just In Time inventory management, or JIT, as a way to reduce costs and improve efficiency. There is no doubt that JIT management has improved companies’ bottom lines and saved manufacturers billions of dollars. While JIT offers the potential to create significant savings for firms, it […]

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Building Security Into the Supply Chain

Prior to Sept. 11, 2001, the term “security” primarily addressed cargo theft. Now the term addresses the broader set of security requirements and challenges associated with the increasing terrorist threat. Historically, competition has heightened information-sharing tensions among regulatory agencies, manufacturers, freight forwarders, carriers, and retailers—they have “protected” their piece of the information technology system. The […]

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