Articles
3PL
First-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 […]
Read More3PLs Deliver on the Global Promise
Businesses need many qualities to succeed in today’s global market, but uniformity, consistency, and flexibility are the most critical. Strong organizations leverage these qualities to capitalize on the economic benefits of worldwide sourcing and distribution, while satisfying their customers’ needs—whether the customer is around the block or across the ocean. Best-of-breed 3PLs share the same […]
Read MoreThe Five Inventories: Invisible to Customers, Crucial to the Bottom Line
Investment sage Warren Buffett once described business as a vehicle in which the rear-view mirror is always clearer than the windshield. He was right, and mismanaged logistics is the reason for the mud on the windshield. Failure to see and manage global supply networks in response to demand makes for muddy business indeed. In the […]
Read MorePremium Freight: Costly Expense or Strategic Initiative?
Today’s lean manufacturing environment, shaped by just-in-time stocking and razor-thin margins, has made the use of premium freight a daily reality for manufacturers. Though once used only on occasion to protect plants, shipping goods via premium freight is now a regular occurrence. While this shipping method can be expensive, manufacturers that incorporate premium freight as […]
Read More8 Steps to Protecting Against Parcel Fraud
Parcel fraud is currently one of the most disregarded crimes in American business. But with an estimated $400 billion in losses per year due to employee theft, parcel fraud should not be overlooked. The most obvious type of parcel fraud occurs in the workplace, with crimes ranging from the seemingly harmless—shipping personal packages on a […]
Read More5 Best Practices to Boost Import Efficiency
In today’s heightened security environment, where cargo entering the United States faces ever-increasing scrutiny, importers must tackle many challenges to keep goods flowing through international trade. The complexity of moving commerce in a safe, quick, efficient, and compliant manner is frequently overlooked. The processes behind importing often cause confusion and frustration for all parties involved, […]
Read MoreIt’s Capacity Crunch Time. Can Multi-Shipper Collaboration Help?
Everyone knows a hot commodity when they see it—demand is high, supply is low, and price is no longer an object. So what is currently the hottest commodity in the motor freight industry? Capacity. Forgive me for stating the obvious, but capacity is tight. Trailer and driver shortages, the uncertainty surrounding the new Hours of […]
Read MoreMission Possible: Expand Business Without Adding DCs
Suppose you are in charge of supply chain management for a retailer with 1,150 store outlets, eight distribution centers, and a network of 600 vendors. You are tasked with building the optimal supply chain to support three times the current business volume seven years from today. The DCs are already jammed with inbound shipments and […]
Read MoreService Parts & Logistics: Should You In-source or Outsource?
When the silicon wafer fabrication machine breaks down and computer chip manufacturers face costly losses, how long will it take until those machines are running again? In today’s lean business environment it may seem that only those companies with boundless resources can maximize the up-time of their critical business equipment. Thanks to innovations in the […]
Read MoreOptimize Your Transportation Program for Greater Efficiency
Transportation is usually the largest cost in a company’s logistics budget. In fact, two-thirds of the spend is often for the movement of raw materials and finished products. Managing these costs has become increasingly complex because of radical changes within the transportation industry. Some variables that have a major impact on the cost of transportation […]
Read MoreOutsourced Manufacturing Changes the Face of 3PLs
The debate over outsourcing American manufacturing jobs to overseas workers continues to stir controversy in politics and business. Economists argue that offshoring is the only way to save American industry; the money saved frees capital for research and development and creates top paying jobs. The political entities, in the interest of both the already and […]
Read MoreThe Logistics of Doing Business in China
Earlier this year, one of the United States’ most famous apparel manufacturers closed its last U.S. manufacturing facility. Like many companies, it now relies on plants in countries across the world for manufacturing. At least one is likely to be in China. China already accounts for a vast amount of the world’s production, including 75 […]
Read MoreKnowing What and When to Outsource
Anyone who has visited Kansas City to savor down-home cooking and fried chicken will recognize the tag line, “We Choke Our Own Chickens” as belonging to Stroud’s restaurant. Marketers say that you have to be on the edge to cut through all the clutter, and I think you will agree that Stroud’s slogan has done […]
Read MorePenetrating the U.S. Market With No Warehousing Investment
Warehousing just got a major facelift in the global supply chain world. Companies are starting to globally expand their product markets without the added weight of materials management, warehousing and distribution costs—and without adding staff in new markets. An excellent example of this new logistics trend is a Middle East manufacturer of ready-to-assemble consumer PVC […]
Read MorePlease Don’t Squeeze the 3PL
When is it practical to develop a cost-plus relationship? Many companies that outsource spend up to 60 percent of their logistics management time defining, selecting and negotiating the 3PL agreement yet do not fully realize the total benefits available from the outsourced relationship. The cost-plus agreement must allow the outsourcer to maximize the ROI from […]
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