Articles
Viewpoint: Logistics & Supply Chain Analysis
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 […]
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 […]
Read MoreVendor Compliance: What Doesn’t Kill You Makes You Stronger
You just landed your first big customer. No more selling to mom-and-pops. You alert your suppliers and increase your raw materials inventory. You step up production and increase your finished goods inventory, anxiously awaiting the purchase order. Then suddenly it hits you: in order to get the purchase order you have to comply with a […]
Read MoreTechnology Is Not a Cure-All
It isn’t always about technology. That sounds a bit heretical to modern ears. Technology has done so much to alter our world, make our lives easier, and provide answers to decades-old business problems. We have come to depend so heavily on the value of technology that our first response to most business problems is investing […]
Read MorePackaging Automation Delivers What Customers Demand
“The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment,” writes author Warren G. Bennis. Well, not quite. But automation is certainly the watchword as today’s manufacturers face […]
Read MoreCycle Time Reduction Gives Life to Productivity
Manufacturers that can’t deliver on time won’t keep their customers happy—or keep them at all. This reality is all the more reason why small and mid-sized manufacturers need to get their products into customers’ hands as quickly as possible. Often, however, bottlenecks in the production process make this impossible. The following scenarios of lost productivity […]
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