Articles

Transportation Management

Kerry Loudenback
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Transportation Management: A Layered Approach

Q: Why bother managing the inbound aspect of the supply chain? A: Historically, organizations built their transportation management strategies and tactics around the outbound aspect of their supply chain. The gravity of customer revenue pulls the attention in that direction. This inattention in the supplier direction often leaves the inbound supply chain exposed to margin-draining […]

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Chuck Fattore
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How Freight Classification Changes Impact Shippers

Q: What are some of the recent and proposed changes to the National Motor Freight Classification (NMFC) used to determine the class for rating less-than-truckload (LTL) shipments? A: The most notable change—effective Dec. 1, 2012—was in classifying computer equipment. Under the new classification, this product type moved to a density-based rating with the lowest possible […]

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Cutting LTL Costs

Saving money on less-than-truckload (LTL) procurement is a laudable goal—except when operational problems eclipse savings gains. Shippers who prioritize securing the lowest price from carriers may actually end up paying more because of costs embedded in carrier expenses—resulting in problems such as service degradation and supply chain disruption. Danny Slaton, executive vice president of supply […]

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Transloading to Maximize Cost Savings

Transloading offers a cost-effective way to bring ocean containers inland to distribution centers. By transferring cargo without sorting the contents for shipment to a single destination, transloading services can reduce total landed costs, and—when combined with value-added services such as palletizing and shrink-wrapping—reduce handling at the destination. Jeff McCorstin, senior vice president of air and […]

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How to Find Savings Through Landed Cost Analysis
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How to Find Savings Through Landed Cost Analysis

As shippers adapt sourcing strategies to build redundancy, economy, and responsiveness into their supply chains, the complexity of drilling down total landed costs increases. Shippers often focus resources and attention on procurement, looking only at production and logistics spend. At a more granular level, a myriad of other factors can impact the total supply chain […]

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Ensuring Routing Guide Compliance

When vendors fail to comply with shippers’ routing guide instructions, all parties involved experience frustration. To improve compliance, shippers must provide clear and concise instructions about how they want their freight to move. Here is advice on ensuring routing guide compliance from Harold B. Friedman, senior vice president of global corporate development at freight payment […]

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