Articles
3PL
Offshoring vs. Right-shoring: How to Decide
For more than a decade, companies have used offshoring as a primary strategy for maximizing value in the global manufacturing supply chain. The advantages of offshoring are eroding, however, due to rising wages in overseas locations, volatile fuel costs, global security concerns, and the worldwide economic crisis. In response, some U.S. manufacturers and parts suppliers […]
Read MoreBrokering Change
W hen I started in this industry in 1978, transportation companies were known as truck brokers. They primarily moved shipments of agricultural products under rates that were exempt from Interstate Commerce Commission regulation—that is, negotiable according to supply and demand. In 1980, truck transportation was deregulated. The term “property broker” was defined, and the industry […]
Read MoreWhy You Don’t Want an Obedient 3PL
What is an obedient third-party logistics provider (3PL)? It is one that doesn’t share responsibility for its customers’ success and simply does what it is told. It keeps quiet when it knows the shipper’s request is misguided, and doesn’t offer new ideas for re-thinking project goals. When a shipper views its 3PL simply as a […]
Read MoreCultivating Healthy Carrier Relationships
Developing robust relationships with your carriers can be challenging, but it’s essential to establishing well-defined expectations. Capacity shortages and other carrier-related service issues will inevitably occur, so you and your carriers must work together to sustain a mutually beneficial relationship when times get tough. The following best practices can help you maximize value within your […]
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Incoterms Let Importers Control Their Destiny
Global import and export merchandise trade is currently valued at nearly $12 trillion, according to the World Trade Organization, some 75 times more than in the mid-1960s. Despite this growth, many companies still use the same trading contract terms and structure that were prevalent decades ago. As a result, importers are missing a major opportunity […]
Read MoreChoosing a 3PL: Safety First
When negotiating transportation services with a third-party logistics provider (3PL), you may find that they emphasize efficiency, customer service, competitive pricing, and timeliness. Safety is rarely a selling point and may go unmentioned during discussions. When shopping for 3PL services, however, a good safety record should be at the top of your checklist. Contracting with […]
Read MoreLogistics Managers Earn Job Security
As recently as a decade ago, most U.S.-based companies’ supply chains were predominantly domestic, and providing manufacturing support to U.S. factories was a booming business. Today, however, global supply chains dominate and the number of U.S. plants to support is dwindling. As a result, many North American supply chain professionals are concerned about how their […]
Read MoreManaging the Mess on the High Seas
Logistics managers have given much thought to streamlining land and air transportation. But water transport still lags behind – and the fallout can have significant impact on even the best laid logistics plans. This is especially critical in a world where overseas sourcing has become the norm rather than the exception for North American companies. […]
Read MoreCo-Sourcing: Two Companies Acting As One
You might worry about outsourcing your company’s entire supply chain—not enough control, too many unknowns, not worth the risk. But you can focus 100 percent of your attention on your core business functions and still keep a close connection with your supply chain through co-sourcing, a custom-tailored system designed to provide the logistics and supply […]
Read MoreHow to Find The Right Outsourcing Solution
MORE TO THE STORY: PICKING YOUR PARTNER As the rules of engagement for operating in a global world continue to shift and expand, businesses increasingly find that the myriad pressures of running a core business do not lend themselves to doing all things well. In the interest of doing what they do best and providing […]
Read MoreSix Essential Strategies for Selecting a Global 3PL
Today’s complex global business environment – with its rapidly advancing technologies, emerging world markets, and vastly extended supply chains – places increasingly critical decision-making demands on logistics professionals. In a world gone global, the challenges of providing seamless supply chain solutions across geographical and cultural boundaries have increased exponentially. Overall logistical requirements, vendor choices, and […]
Read MoreTake a Deep Breath Before Diving Into Global Outsourcing
Over the past two decades, production pioneers at automotive and high-tech companies turned outsourcing into a baseline capability, significantly enhancing profitability and productivity. Today, manufacturers of all sizes in every industry are properly exploring outsourcing options as they grapple with the urgent need to reduce costs, enhance profitability, and increase competitiveness. This is especially true […]
Read MoreShortcuts Sound Appealing, But at What Cost?
I recently facilitated a panel discussion at an industry conference that many of you probably attended. The topic was: How 3PLs and their customers can develop and maintain the right relationship. I asked three Total Logistic Control (TLC) customers—all household-name companies—to answer a series of questions about how they worked with their 3PLs, and how […]
Read MoreThe Seven Abilities of Highly Effective 3PLs
The right logistics provider can bring you convenience, cost savings, and competitive advantage as you work to deliver the right product to the right place at the right time at the right price. Execution is the key, central to responding to fluctuating pressures of production schedules, capacity, weather, or other influences on your strategic supply […]
Read MoreFirst-Time Outsourcers Can Keep Customers Happy
Companies that are considering outsourcing warehouse operations for the first time should keep several issues in mind. Most important is ensuring that customer service is enhanced, rather than diminished, in the process. Another important consideration is what logisticians call Optimized Network Design—or, more simply, “Where should I locate my outsourced warehouse, and how many should […]
Read MoreLast Mile Logistics: Key to Competing in the Retail Race
For U.S. retailers with broad global supply chain operations, “last mile”—the portion of transit from the final delivery center to the customer’s door—is really the last hundreds of miles from the destination port to the store. This crucial part of logistics, which accounts for the majority of a shipment’s cost and complexity, is becoming increasingly […]
Read MoreFreight Payment: Getting Back to Basics
At the beginning of the new millennium, many freight payment companies added the latest “whiz bang” gadgetry to their information systems or freight payment products. Now, those companies’ disappointed customers want their providers to get back to basics. Although information tools remain important, freight payment basics are now the priority. Today, shippers seek a freight […]
Read MorePremium Freight Makes JIT Fit
Just-in-time (JIT) manufacturing is a tremendous advantage—when everything works perfectly. But what happens when the supply chain falls out of sync—when an overseas supplier has equipment problems, environmental factors delay deliveries, or defective parts are discovered on the assembly line? How do suppliers avoid chaos and keep JIT production rolling? One solution is premium freight—last-minute […]
Read MoreMinimize Total Landed Cost: Strategize, Model, Act
Total landed cost is the sum of all costs associated with making and delivering products to the point where they produce revenue—usually your customer’s door. So, if you employ tactics to reduce costs in all discrete functions from manufacturing through delivery, you’ll have a lower total landed cost, right? Theoretically, yes. But in the real […]
Read MoreSelecting a Logistics Supplier? Think Supple
We all know why companies outsource logistics functions—outsourcing should allow them to save money and focus on their primary goals. “Should,” however, is the operative word. To turn “should” into “does,” companies need to partner with a supple supplier. What is a supple supplier? One that has no set ideas on best practices when providing […]
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