Articles
Viewpoint: Logistics & Supply Chain Analysis
The 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, […]
Read MoreKeeping 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 […]
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