Articles
Viewpoint: Logistics & Supply Chain Analysis
Carriers 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 […]
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