Articles
Viewpoint: Logistics & Supply Chain Analysis
Keeping an Eye on RFID Challenges
In The Prince, savvy politician Machiavelli asserts, “there is nothing more perilous to conduct, or more uncertain in its success, than taking the lead in the introduction of a new order of things.” That 16th-century admonition should serve as warning to those who espouse the advancement of RFID. The swirling hype, promises of opportunity, and […]
Read MoreDistribution 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 […]
Read MoreTurning 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 […]
Read MoreUncle 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 […]
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 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 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 MoreNurture, Don’t Neglect, Our Waterways Infrastructure
For logistics professionals who already see the rising costs of the nation’s traffic congestion reflected in their bottom line, it is troubling to know that the Federal Highway Administration estimates use of the nation’s highways for freight transportation will increase by 40 percent over the next 10 years. It is clear that the saturation point […]
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 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 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 MoreForging 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 […]
Read MoreThe 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 […]
Read MoreIntegrating 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 […]
Read MoreFinding the Real Silver Bullet for Cargo Security
Cargo security is becoming a commonly used term defined and discussed differently depending on group or audience. But what is the real “silver bullet” needed to secure cargo? One answer rests in the capability to ensure the integrity of each container’s contents. With more than six million containers entering U.S. seaports annually, aboard more than […]
Read MoreEvaluating 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 […]
Read MoreGetting 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 […]
Read MoreIs 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 […]
Read MoreBuilding 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 […]
Read MoreThe Blocking and Tackling of Site Selection
As a company’s space needs change, selecting the appropriate site for its distribution centers becomes increasingly important to the bottom line. Here are some practical ideas and tips that can help you along the way. Logistics Audit. When considering a new DC, the first step is to survey your present situation and address decreasing cycle […]
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