In a challenging economic environment, leading retailers are turning to their supply chains to improve inventory management, control costs and maintain first-rate customer service, according to the Retail Industry Leaders Association (RILA) and Auburn University’s 2009 State of the Retail Supply Chain study.
The recently released report underscores the critical role of supply chain management in today’s challenging retail environment. Executive interviews and a national survey gathered information in three primary areas:
* The strategic role of SCM in retail companies
* Supply chain challenges that are of great concern to the retail industry
* Capabilities must retailers develop and leverage to achieve supply chain excellence
The study found that best-in-class retailers:
* Leverage strong distribution networks that are capable of supporting high volumes
* Create flexible capacity to adjust supply chain infrastructure and support unanticipated fluctuation in demand
* Align inside and outside the organization to break down silos and manage processes more holistically
* Continually develop the internal talent pool to enhance the quality of the workforce
For more news related to logistics, please visit our site!
Thursday, December 3, 2009
Wednesday, November 4, 2009
Outsourcing and respect
The idea of outsourcing often comes about when the CEO, controller, or another member of senior management reads an article—or has been speaking with a 3PL—about saving a minimum of 10 percent or more of their logistics costs by turning to a third party. However, I've found that these “savings opportunities” are often purely theoretical and are only supported by management due to their lack of logistics knowledge or their lack of confidence in the ability of its logistics team to efficiently manage its processes.
Of course, there are other times when the outsourcing conversation is sparked by the urgent need to reduce headcount.
The transportation teams that feel especially threatened are those that lack the experience, leadership, talent, knowledge, process excellence, and contingency strategies to guide their companies through today's global market. They often fail to anticipate and prepare themselves for tomorrow's challenges. And it often takes just one unpleasant and costly surprise to jumpstart the outsourcing movement in teams like these.
When I hear transportation leaders tell me that their companies keep reminding them that they're just another cost center, I tell them that it's their fault that management doesn't see them as a value-add to the organization. This tends to lead into the question: How do I get some respect?
The answer is simple. It's all about education and managing expectations—neither of which start in the middle of a crisis. Earning respect starts with your knowledge and command of the marketplace and your transportation governance, and it ends with programs that you have created to educate senior management and other organizations on a regular basis. As a quick reminder, I define transportation governance as “the direction and control associated with creation, administration, oversight, and enforcement of your company and supply chain's policies, regulations, and procedures related to the legal, safe, efficient, and service-effective movement of freight it controls either directly or indirectly.”
Read the rest of the logisticsmgmt.com article here.
Of course, there are other times when the outsourcing conversation is sparked by the urgent need to reduce headcount.
The transportation teams that feel especially threatened are those that lack the experience, leadership, talent, knowledge, process excellence, and contingency strategies to guide their companies through today's global market. They often fail to anticipate and prepare themselves for tomorrow's challenges. And it often takes just one unpleasant and costly surprise to jumpstart the outsourcing movement in teams like these.
When I hear transportation leaders tell me that their companies keep reminding them that they're just another cost center, I tell them that it's their fault that management doesn't see them as a value-add to the organization. This tends to lead into the question: How do I get some respect?
The answer is simple. It's all about education and managing expectations—neither of which start in the middle of a crisis. Earning respect starts with your knowledge and command of the marketplace and your transportation governance, and it ends with programs that you have created to educate senior management and other organizations on a regular basis. As a quick reminder, I define transportation governance as “the direction and control associated with creation, administration, oversight, and enforcement of your company and supply chain's policies, regulations, and procedures related to the legal, safe, efficient, and service-effective movement of freight it controls either directly or indirectly.”
Read the rest of the logisticsmgmt.com article here.
Wednesday, October 7, 2009
New Study Highlights Role of Third-Party Logistics Providers in Helping Shippers Adapt to Economic Challenges
The fourteenth Annual Third Party Logistics (3PL) Study examining the current global market for logistics outsourcing was recently released. The study surveyed shippers and logistics service providers in North America, Europe, Asia Pacific and Latin America. Key findings included:
* The economic downturn has created significant challenges for both shippers and third-party logistics providers (3PLs) – 82% of shippers are employing cost-cutting tactics and 60% are rethinking their supply chains and relationships with 3PLs
* 88% of shippers feel that IT-based logistics services are important, but only 42% are satisfied with the capabilities of their provider – as a result of this IT capability gap, shipper respondents reported a lack of the key performance indicators, alerts and visibility required for an adaptive supply chain and 3PLs reported similar difficulties in getting the data and commitment they need from shippers
* There are significant differences between how 3PLs evaluate their role in the supply chain and how they are viewed by shippers – 59% of shippers feel their use of 3PLs has a positive effect on customer service compared to 88% of 3PL respondents
* Shipper respondents devote an average of between 47% (in North America) and 66% (in Europe) of their total logistics expenditures to outsourcing and this is expected to increase in the next five years.
“Shipper-3PL relationships are being impacted significantly by the prevailing uncertainty and economic volatility in global markets,” said Dr. C. John Langley Jr., Professor of Supply Chain Management, Georgia Institute of Technology. “It is very important for 3PLs to mitigate or reduce any financial risk or service level impact that this may cause.”
Economic uncertainty and the use of 3PLs
Economic volatility has challenged shippers and 3PLs alike to contend with factors such as unpredictable demand, instability in fuel costs and currency valuation, and excess inventory. In response, not only are shippers attempting to cut costs, 77% are also seeking to improve forecasting and inventory management.
Cost reduction and improved reliability in services are the main factors likely to increase shipper respondents’ use of 3PLs. This includes converting fixed to variable costs (59%), expanding to new markets or offering new products (56%), and restructuring the supply chain network to improve financial performance (48%).
Read the rest of the mhia.org article here.
* The economic downturn has created significant challenges for both shippers and third-party logistics providers (3PLs) – 82% of shippers are employing cost-cutting tactics and 60% are rethinking their supply chains and relationships with 3PLs
* 88% of shippers feel that IT-based logistics services are important, but only 42% are satisfied with the capabilities of their provider – as a result of this IT capability gap, shipper respondents reported a lack of the key performance indicators, alerts and visibility required for an adaptive supply chain and 3PLs reported similar difficulties in getting the data and commitment they need from shippers
* There are significant differences between how 3PLs evaluate their role in the supply chain and how they are viewed by shippers – 59% of shippers feel their use of 3PLs has a positive effect on customer service compared to 88% of 3PL respondents
* Shipper respondents devote an average of between 47% (in North America) and 66% (in Europe) of their total logistics expenditures to outsourcing and this is expected to increase in the next five years.
“Shipper-3PL relationships are being impacted significantly by the prevailing uncertainty and economic volatility in global markets,” said Dr. C. John Langley Jr., Professor of Supply Chain Management, Georgia Institute of Technology. “It is very important for 3PLs to mitigate or reduce any financial risk or service level impact that this may cause.”
Economic uncertainty and the use of 3PLs
Economic volatility has challenged shippers and 3PLs alike to contend with factors such as unpredictable demand, instability in fuel costs and currency valuation, and excess inventory. In response, not only are shippers attempting to cut costs, 77% are also seeking to improve forecasting and inventory management.
Cost reduction and improved reliability in services are the main factors likely to increase shipper respondents’ use of 3PLs. This includes converting fixed to variable costs (59%), expanding to new markets or offering new products (56%), and restructuring the supply chain network to improve financial performance (48%).
Read the rest of the mhia.org article here.
Wednesday, September 2, 2009
New Member of AWI Advisory Board
AWI (Associated Warehouses Inc.) is pleased to announce that Mark A. Andrews, Vice President Sales & Business Development at Bonded Logistics, Inc., in Charlotte, NC has joined the Advisory Board.
The AWI advisory board is made up of executives from several of the companies who are part of the AWI logistic services network. This group provides leadership and insight on the strategic direction of the organization and service offerings.
Materials handling: U.S. Department of Agriculture seeks public comment on potential changes to wood packaging regulations
The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) is seeking information from the public on potential approaches for dealing with the interstate movement of wood packaging material (WPM). WPM includes crates, dunnage, wooden spools, pallets and packing blocks used in domestic trade.
Currently, APHIS regulates the movement of logs, lumber and other unmanufactured wood articles due to the presence of wood pests such as the Asian long-horned beetle (ALB) and the emerald ash borer (EAB) within specific areas of the United States. The artificial spread of these pests has been linked to the domestic movement of WPM, and poses a potentially serious threat to U.S. agriculture and forests. APHIS is looking at ways to protect the environment without placing an unjustified strain on domestic commerce and shipping requirements.
“We recognize this is an area that requires additional information,” said Andrea McNally, assistant director of public affairs at the APHIS. “We are in the initial stages of a fact finding mission that will help the APHIS determine whether or not to generate a proposal to modify the current regulations.”
Wood packaging materials are used to ship nearly every type of commodity or product shipped domestically, including the 1.2 billion wooden pallets that are currently in circulation in the United States. Nearly 93% of all goods move on pallets, according to the National Wooden Pallet & Container Association (NWPCA), the trade association that represents the pallet industry.
International commerce is already regulated. In 2004 APHIS adopted ISPM 15, an International Plant and Phytosanitary Standard that requires all imported wood packaging to be fumigated or heat-treated before it is admitted into the United States.
One option under consideration is to apply that same regulation to domestic commerce, a move that is supported by industry groups like the NWPCA, according to Bruce Scholnick, president of NWPCA. “We believe that some kind of regulation is inevitable and it’s preferable to the state-by-state, piecemeal approach in place now,” Scholnick said. “It’s confusing to pallet users and is unfair to wood packaging companies in quarantine states.”
Read the rest of the logisticsmgmt.com article here.
Currently, APHIS regulates the movement of logs, lumber and other unmanufactured wood articles due to the presence of wood pests such as the Asian long-horned beetle (ALB) and the emerald ash borer (EAB) within specific areas of the United States. The artificial spread of these pests has been linked to the domestic movement of WPM, and poses a potentially serious threat to U.S. agriculture and forests. APHIS is looking at ways to protect the environment without placing an unjustified strain on domestic commerce and shipping requirements.
“We recognize this is an area that requires additional information,” said Andrea McNally, assistant director of public affairs at the APHIS. “We are in the initial stages of a fact finding mission that will help the APHIS determine whether or not to generate a proposal to modify the current regulations.”
Wood packaging materials are used to ship nearly every type of commodity or product shipped domestically, including the 1.2 billion wooden pallets that are currently in circulation in the United States. Nearly 93% of all goods move on pallets, according to the National Wooden Pallet & Container Association (NWPCA), the trade association that represents the pallet industry.
International commerce is already regulated. In 2004 APHIS adopted ISPM 15, an International Plant and Phytosanitary Standard that requires all imported wood packaging to be fumigated or heat-treated before it is admitted into the United States.
One option under consideration is to apply that same regulation to domestic commerce, a move that is supported by industry groups like the NWPCA, according to Bruce Scholnick, president of NWPCA. “We believe that some kind of regulation is inevitable and it’s preferable to the state-by-state, piecemeal approach in place now,” Scholnick said. “It’s confusing to pallet users and is unfair to wood packaging companies in quarantine states.”
Read the rest of the logisticsmgmt.com article here.
Wednesday, August 5, 2009
Why 3PLs need to build their brand
Over the past several years, the global third party logistics (3PL) industry has changed dramatically. While the demand for 3PL services has grown steadily, the major logistics service providers have expanded their geographical reach and broadened their service offerings. At the same time, the structure of the industry has changed not only through mergers and acquisitions, but also through new market entry by many companies, including some funded by private equity investors. 3PL company reorganizations and name changes have become commonplace.
These changes have fostered a degree of buyer confusion in the marketplace, and many large 3PLs fear a possible “commoditization” of their services in the eyes of those who currently buy their services or are considering doing so. If this is indeed occurring, existing and potential customers will become increasingly indifferent when choosing between logistics service providers. And this, in turn, will intensify the price compression pressures that already plague the 3PL industry.
A key question that needs to be asked here is: What are executives of those 3PL companies doing in response to these market developments? Specifically, what steps have large 3PLs taken in recent years to differentiate their service offerings in the marketplace while strengthening their brands? Further, is there more that those executives should be doing in those areas?
This article addresses the typical steps that companies should take in building, refining, and strengthening their brands—and in particular examines recent attempts by major 3PLs to do so. Branding literature forms the basis for discussion of the general case, and the branding steps taken by large 3PLs were documented through data generated during 2006 and 2007 in surveys of the CEOs of major 3PLs operating in three geographic regions: North America, Europe, and the Asia-Pacific region. (For more on the surveys, see accompanying sidebar). We conclude with suggestions for 3PL industry executives concerning their future branding efforts—and the potential positive implications of these efforts on the buyers of these services.
Read the rest of the scmr.com article here.
These changes have fostered a degree of buyer confusion in the marketplace, and many large 3PLs fear a possible “commoditization” of their services in the eyes of those who currently buy their services or are considering doing so. If this is indeed occurring, existing and potential customers will become increasingly indifferent when choosing between logistics service providers. And this, in turn, will intensify the price compression pressures that already plague the 3PL industry.
A key question that needs to be asked here is: What are executives of those 3PL companies doing in response to these market developments? Specifically, what steps have large 3PLs taken in recent years to differentiate their service offerings in the marketplace while strengthening their brands? Further, is there more that those executives should be doing in those areas?
This article addresses the typical steps that companies should take in building, refining, and strengthening their brands—and in particular examines recent attempts by major 3PLs to do so. Branding literature forms the basis for discussion of the general case, and the branding steps taken by large 3PLs were documented through data generated during 2006 and 2007 in surveys of the CEOs of major 3PLs operating in three geographic regions: North America, Europe, and the Asia-Pacific region. (For more on the surveys, see accompanying sidebar). We conclude with suggestions for 3PL industry executives concerning their future branding efforts—and the potential positive implications of these efforts on the buyers of these services.
Read the rest of the scmr.com article here.
Tuesday, July 7, 2009
ISM: Non-Manufacturing Continues Upward Climb
It is highly likely that signs of growth and possibly economic recovery will be visible by the end of this year, according to the results of the latest non-manufacturing industry survey by the Institute for Supply Management (ISM).
The ISM has been making such a prediction for some time now, and the report on business activity in the non-manufacturing sector in June indicate the economy is definitely headed in that direction, said Anthony Nieves, chair of ISM’s non-manufacturing business survey committee.
“The report is encouraging,” he said.
Overall, the non-manufacturing index went up three percentage points in June to 44 percent. Technically, anything under 50 percent is considered to be “contracting,” but Nieves said the trend over the last few months has been a positive one, indicating that the index is creeping steadily upward, indicating a gradual improvement in the overall non-manufacturing sector.
“I think we’re seeing the signs of the leveling off,” he said.
Nieves said he was especially encouraged by the business activity and new orders indexes. Business activity leapt up 7.4 percentage points to 49.8 percent, while new orders went up 4.2 points to 48.6 percent.
Nieves said he will be watching both indices over the next few months, especially new orders, to verify that the growth trend overall is continuing.
The employment index, which typically lags behind everything else, also took a jump in June. According to the report, it went up 4.4 points to 43.4 percent, but despite this increase, Nieves said employment tends to be the slowest to react to changes, even positive ones, in the overall sector.
Read the rest of the scmr.com article here.
The ISM has been making such a prediction for some time now, and the report on business activity in the non-manufacturing sector in June indicate the economy is definitely headed in that direction, said Anthony Nieves, chair of ISM’s non-manufacturing business survey committee.
“The report is encouraging,” he said.
Overall, the non-manufacturing index went up three percentage points in June to 44 percent. Technically, anything under 50 percent is considered to be “contracting,” but Nieves said the trend over the last few months has been a positive one, indicating that the index is creeping steadily upward, indicating a gradual improvement in the overall non-manufacturing sector.
“I think we’re seeing the signs of the leveling off,” he said.
Nieves said he was especially encouraged by the business activity and new orders indexes. Business activity leapt up 7.4 percentage points to 49.8 percent, while new orders went up 4.2 points to 48.6 percent.
Nieves said he will be watching both indices over the next few months, especially new orders, to verify that the growth trend overall is continuing.
The employment index, which typically lags behind everything else, also took a jump in June. According to the report, it went up 4.4 points to 43.4 percent, but despite this increase, Nieves said employment tends to be the slowest to react to changes, even positive ones, in the overall sector.
Read the rest of the scmr.com article here.
Wednesday, June 3, 2009
Transportation funding: Highway Trust Fund is again in need of more capital
WASHINGTON—A lack of capital for the Highway Trust Fund (HTF) is looming, with up to $7 billion to keep it solvent through the remainder of 2009, according to various reports.
The HTF is the federal government’s primary source for financing highway, bridge, and transit projects, and it is largely funded by the motor fuel federal tax, which is 18.4 cents per gallon for gasoline and 24.4 cents for diesel and has not been raised since 1993. One main reason for the HTF’s dwindling financial resources is that Americans are driving fewer miles, as evidenced by Americans driving 90 million fewer miles year-over-year in fiscal 2008.
California Senator Barbara Boxer said at a hearing yesterday that the HTF is estimated to have insufficient cash by August 2009 to make good on prior commitments, with $5-to-$7 billion needed.
She added that White House officials have estimated that an additional $8-to$10 billion is needed to pay immediate cash needs of the HTF program is to be maintained at current funding levels through the end of fiscal 2010, which is when Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the current highway, transit, and highway safety authorization, expires.
“The administration is working closely with Congress to solve this difficult problem and ensure that states have the resources they need to maintain our roads and highways,” Department of Transportation Spokeswoman Jill Zuckman told the Associated Press.
Read the rest of the logisticsmgmt.com artilce here.
Wednesday, May 6, 2009
Logistics and business manufacturing: ISM report calls for good and bad news for 2009
TEMPE, Ariz.—Experts from the Institute for Supply Management (ISM) remain cautiously optimistic about a possible economic recovery later this year, as two key ISM reports released today offer both a snapshot of the current situation and a forecast for the rest of 2009.
Norbert Ore, chair of ISM’s manufacturing business survey committee, and Anthony Nieves, chair of ISM’s non-manufacturing business survey committee, both talked to SCMR about ISM’s report on the non-manufacturing sector for April, and ISM’s semi-annual economic forecast for 2009.
According to the April report, the Non-Manufacturing Index (NMI) rose 2.9 points to 43.7 percent. Like the PMI in ISM’s manufacturing report issued on Friday, the NMI is edging toward 50 percent, above which it won’t be considered “in decline.”
Still, while he acknowledged the rate of decline is slowing, Nieves was cautious about celebrating too soon, as the NMI still shows a decline. With only a month of positive change, Nieves said “It’s still premature” to declare the economy in recovery.
Nieves said he and Ore both believed some sort of recovery would take place in 2009, but Nieves won’t be satisfied it’s actually happening until the NMI goes above 50.
It also needs to stay there. Nieves pointed out that in January and February of 2008, the NMI showed a decline, and it then went above 50 in March, only to drop back down in April, and it hasn’t recovered since.
Read the rest of the article from logisticsmgmt.com here.
Tuesday, April 7, 2009
Will Cost Pressures Drive more Companies to Outsource Logistics Functions?
In tough economic times, will companies be increasingly tempted to outsource logistics and distribution operations?
The answer may be Yes, especially given the many hungry 3PLs that may be tempted to dangle low ball prices to pick up the business.
In some cases, the strategy may be not only to outsource a part of logistics operations, such as management of individual DCs, but actually to outsource the entire logistics function.
That’s in fact what tech giant IBM recently did, announcing in December that it was hiring Geodis, a French logistics services provider (LSP), which IBM was already using for some logistics operations, such as service parts delivery and reverse logistics, to manage its entire logistics network globally.
In the relationship, Geodis will serve as a “lead logistics provider,” sometimes also called a “4PL,” and will provide management services for IBM’s already largely outsourced logistics function. In other words, Geodis will become an outsourced manager of other logistics outsourcers. Combined, IBM now spends approximately $1.3 billion on global logistics management.
Read the rest of the story here.
Wednesday, March 4, 2009
What is a Warehouse Management System
A comprehensive warehouse management system, Accuplus features the ability to manage multiple warehouses, customers, products, rates, and much more. A wide variety of management and customer specific information is available through traditionally installed operating systems (i.e. Unix) including inventory, activity, sales volume and analysis.Bonded currently operates Accuplus in house as a standard WMS system. We also integrate custom systems through EDI, direct connect to customer host system or through flat file transfer.
Accuplus is also delivered via an Internet application service provider (ASP) model through Logview. Customer service, sales, logistics personnel and management have constant access to shipment and receipt status. Information is updated continuously every 15 minutes, so your information is real-time. Logview provides you with information required for managing your business.
(source: www.bondedlogistics.com/warehouse_management.asp)
Thursday, January 8, 2009
About Bonded Logistics
Bonded Logistics is a third party logistics company located in Charlotte, North Carolina. Bonded provides 3PL and warehousing management services to the Southeastern United States. Bonded Logistics specializes in high volume, LTL business.
Some of our extra services include contract packaging, shipment packing, supply chain execution, fulfillment, and full freight brokerage to Charlotte, North Carolina and the entire Southeast.
Contact us if you are interested in our 3PL services
Some of our extra services include contract packaging, shipment packing, supply chain execution, fulfillment, and full freight brokerage to Charlotte, North Carolina and the entire Southeast.
Contact us if you are interested in our 3PL services
Subscribe to:
Posts (Atom)
