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This Week in Logistics News (August 4-8, 2014)

Talking Logistics

The bodega and building as it appears today (source: Google Maps). ARI and Fidelitone Logistics Partner to Deliver Unified eCommerce and Supply Chain Solutions. HighJump Software announced enhancements to its Retail Inventory and Point of Sale Management software, RETAIL vantage. Talking Logistics is taking its summer vacation next week, so Ill be charging my batteries under the sun, with my laptop and iPhone off.

Insights from Ryder Innovate 2014

Talking Logistics

I have long argued that third party logistics providers (3PLs) should set themselves apart from the competition by fully harnessing the power and value of their customer and employee communities. Sustainability and Green Initiatives in Transportation and Logistics. Source: “Sustainability and Green Initiatives in Transportation & Logistics,” Jason Mathers, EDF, Ryder Innovate 2014. Transportation and Logistics Industry Trends.

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Healthcare Logistics

LeanCor

Healthcare Logistics: A Network Design Case Study. 23 million dollars in total healthcare logistics cost savings; how would that make you feel? Constructing a total cost model and performing a Greenfield analysis to identify optimal distribution center locations and transportation network allowed the LeanCor engineers to identify $23M total healthcare logistics cost savings for a healthcare product distributor. Improved service levels with overall inventory reduction.

Can Your Inventory Control System Support Seasonal Demand?

LeanCor

How can companies calculate the right inventory quantity and send it to the right place at the right time with such seasonality involved? Don’t be fooled by the scary mask – it is possible through rigorous supply chain planning, a sufficient inbound and outbound logistics network, and a supporting inventory control system. Here are 3 tips to help you develop an inventory control system based on flow to the customer: 1. Where will you keep the inventory?

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Inbound Logistics

LeanCor

Planning a Lean Inbound Logistics Strategy. At LeanCor, we refer to our inbound logistics solutions as lean logistics engineering. The lean logistics engineering process incorporates several complex factors including volume fluctuations, sourcing changes, and lead, window, and service times to determine transportation modes, sourcing locations, freight consolidation, trailer loads, route combinations, and freight sequences.

Logistics Management

LeanCor

The Art of Logistics Management. How is it that supply chain and logistics management can make such a difference? After all, isn’t logistics “merely” a company’s management of material, product, and information flows in the supply chain? Those who work in the field of logistics recognize difficulties associated with getting the right product to the right place at the right time in the right quantity and condition at the lowest possible cost.

26 Best Practices in Lean Warehousing

LeanCor

Many organizations see logistics functions as a way to gain competitive advantage and bring value to the customer. The use of facilities for inbound material logistics and outbound finished goods distribution are the bridges that connect all the imbalances and lack of flow in the entire stream. Warehouse strategy is driven by inventory strategy. Quality at the Source. Many people may think the term “lean warehousing” is an oxymoron.

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All Signs Point to Mexico Playing a Greater Role in Supply Chains

Talking Logistics

It’s one of the most common questions I get these days from third-party logistics providers (3PLs), especially this time of the year as they’re finalizing their strategies for 2015 and beyond. The study highlights the opportunity for 3PLs this way: The growth of logistics services plays a crucial role in rendering Mexico’s businesses cost competitive as compared with similar ventures globally. Significantly INCREASE our manufacturing, sourcing, or operations in Mexico.

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How to boost relationships between shippers and 3PLs

DELMIA Quintiq

With growing consumer expectations for faster delivery, shippers are expecting value-added logistics services from 3PL operators. This increases the urgency for 3PLs to leverage on the best market trends to increase logistics flexibility. I had an interesting conversation about this with Frank Tinschert, Business Unit Director Logistics at Quintiq, and below are his answers. So how will logistics planning and optimization technology help 3PLs to overcome these challenges?

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The Next Great Disruption Coming to Supply Chains

Kinaxis

I watched a TED Talk video by Philip Evans, from Boston Consulting Group and shuddered to think that all our traditional fulfillment and inventory models can be drastically transformed by the “consumer”. 3PL’s, Contract Manufacturing, Suppliers, Logistics providers…. Sure, we’re concerned, and in some cases stocking more inventory at local distribution centers. They want to assure the sourcing meets their “sustainable” expectations.

Use these management strategies to build a great supply chain…

The Network Effect

To leverage cross functional measurement improvements, perhaps pull together a chat session to discuss inventory positions and show the various departments the effects their decisions are having on quarterly cash flows and customer service levels, without becoming negative and turning the conversation adversarial based on the usual “lack of visibility” issues.

Experts Discuss How to Streamline Global Supply Chain

Supply Chain Opz

Whether you''re a manufacturing company in China, a sourcing agent in London or a world''s leading company in Silicon Valley, we''re all in a global supply chain networks. However, commonly used KPIs used by supply chain executives are usually focused on logistics performance (e.g., Reducing lead times from suppliers can help turn inventory faster, freeing up cash and ultimately satisfying customers.

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Why the supply chain should be more social

The Network Effect

Or a personal health situation arises like a batch of peanut butter becoming contaminated with salmonella or children’s toys being contaminated with lead paint, where the regulators have difficulty identifying the source of the problem several tiers upstream in the supply chain. It is increasingly common to find that the company whose brand name is on a product never actually takes inventory of the item before it is sold to a customer.

Supply Chain Planning

LeanCor

Written by Michael Burchett, Lean Logistics Specialist at LeanCor. When a dealership opens its doors, it knows inventory will be more tightly controlled on the corporate level than its competition. The manufacturer needs to make sure it has enough finished goods inventory to act as a buffer in order to level its flow, or, increase outbound shipments. Additionally, quality at the source and error-proofing are necessary in effective process development.

Why “Distributed Order Management” is a top retail trend and why you should care

The Network Effect

The best way to achieve this is to provide a single, global view of all inventory available in order to intelligently source the line item components of that order, ensuring that the business can meet both current and future customer demand while optimizing inventory, logistics, and asset utilization. This of course limits inventory visibility as well as the options companies have in fulfilling their items.

How the cloud and counterfeiting are affecting the pharmaceutical supply chain

The Network Effect

Number 3: Optimized Execution in Operations, Logistics, and Distributions. Given all the complexities related to regulation, compliance, contract entities, and the global nature of supply chains, pharmaceutical logistics and distribution becomes a critical differentiator, especially so given the multiple changes taking place in the industry. Note: This is part of an ongoing series on the top ten trends affecting the pharmaceutical supply chain.

GM Supplier Factory Explosion: Thoughts on Supply Chain Visibility and Responsibility

Talking Logistics

In a statement on Sunday, GM was quick to note that it did not have a direct relationship with Zhongrong , which it described as a Tier 2 supplier, and added that Tier-1 suppliers such as Dicastal are “required to source from Tier-2 suppliers who must meet both in-country environment and safety standards as well as quality standards.”. This past Saturday, an explosion at the Kunshan Zhongrong Metal Products factory in China killed at least 75 workers and injured at least 185 others.

Throw Back Thursday: Remembering ‘Meeting Customer Demand in a Complex Industry’ from Kinexions

Kinaxis

In this video hear, Gary Dietz, Manager, Global Logistics and Supply Integrated Supply Chain and Logistics, Kennametal, as he discusses the challenges his company faces in gaining full visibility of supply and demand, and in dealing with increasing supply chain volatility. The challenge is becoming even more daunting as Kennametal moves into the developing world, its most promising source of new business. by Melissa Clow Kinexions is in 26 days!

Supply Chain Case Study: the Executive's Guide

Supply Chain Opz

There are two things Boeing and Airbus have in common, utilization of lean manufacturing system and strategic sourcing concept. However, the overall implementation of strategic sourcing is a bit different between the two companies. The result is that the forecast accuracy is improved because a demand planner has an additional source data to make a better decision. The answer is that they use the multi-echelon inventory model to solve the problem.

How “Process Robots” are Enabling Supply Networks

The Network Effect

Think about an electronic workforce of process robots designed to count your inventory items in real time, on demand, with no mistakes made. They even alert you to any issues related to orders, inventory levels, or shipments, taking action to reorder items when they drop below minimum thresholds. Falling back to sourcing options, you determine that you could hire the 20 FTE’s in the US for $1.5M

Supply Chain Management Services

LeanCor

When sourcing supply chain management services, think about the provider’s approach to people and processes. Focus on total logistics cost reduction (transportation, warehousing, and inventory). Whether you are looking f or supply chain management services or have had experience with a third party logistics provider (3PL), you may have realized that finding the right partner isn’t easy. 3 Tips in Choosing Supply Chain Management Services.

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A Case Study in Closed-Loop Operational Management

Talking Logistics

As I’ve said before, the biggest challenge facing supply chain and logistics executives today is not managing change, because that’s always been the norm in supply chain management, but managing the rapid pace of change. When you look at the potential benefits in inventory savings, freight savings, and on-time fulfillment improvements, it’s not that difficult to build the business case. This lead to high inventory carrying costs at some stores and out-of-stocks at others.

Mexico Back in the Supply Chain Spotlight

Talking Logistics

A lot of companies set up operations and sourced from Mexico back in the 90s, then the focus shifted to China and other Asian countries, and now Mexico is back in the spotlight. I asked Troy Ryley, Managing Director of Transplace Mexico, that question in a recent episode of Talking Logistics , and here’s an excerpt of what he said: Asia was the buzzword for many years, and it still is the buzzword in many respects. It seems like we’ve come full circle with Mexico.

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Mistaking a Cog for the Whole Machine

LeanCor

As an individual that works for a lean 3PL company, I have gotten completely numb to the common response from those that hear that I work in logistics and say, “Oh, do you work for UPS”? Kudos for UPS’ branding team, but the word “logistics” doesn’t mean “UPS”. However, there are people surprisingly close to the work that have that same terminology recognition problem with the terms “logistics” and “supply chain management.” By: Clint McCrystal. link].

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Raise a Toast to Digital Business!

Supply Chain Shaman

At the end of 2014, many leaders that I work with are preparing their 2015 strategies. Here are some insights from our recent research: Digital Path to Purchase: In a study on trade promotion management in early 2014, we find that 60% of marketing teams within consumer packaged goods companies are working on a digital path to purchase strategy. Too few companies understand the differences between syndicated data sources and the use of channel data.

The Benefits of Evolved Vendor Managed Inventory Model Led by Web-Based VMI

Cerasis

So why do we feature content related to Vendor Managed Inventory? In a VMI model, part of the equation is the inbound & outbound flow of the inventory. Inventory is then put on pallets and shipped as freight. Distributors will inbound to a manufacturer the inventory needed and transportation management, especially inbound freight management, efficiency is paramount to an effective vendor managed inventory model. We never ran out of or had too much inventory.

Global Luxury Management “Lifestyle” brands require push supply chain design customization

Supply Chain View from the Field

In this environment, the supply chain and logistics task becomes even more complex, as it involves delivering and fulfilling product and service support to deliver a lifestyle “vision” around the world. This is a challenging sourcing base, and global luxury brands must also pay attention to general labor and supply chain compliance policies.

SCRC Student Project Lineup Off to a Great Start…

Supply Chain View from the Field

Students will learn core processes around initial exploration and assessment of supply chain relationships, establishing metrics/expectations for the relationship, crafting and managing contracts, and sustaining continuous performance improvement in sourcing, logistics and operations. We will have speakers from John Deere, Excel Logistics, GSK, NSA,, and others coming in this semester.

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Do No Harm…

Supply Chain Shaman

Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. Recently, I spoke to a major European retailer that lost 5% of their grocery revenues to Amazon in the first quarter of 2014. These tools allow us to look at sell, source, make, and deliver together.

3D Printing Set to Streamline the Retail Supply Chain Through Reduced Lead Times and Inventory

BluJay Solutions

The attractiveness of 3D printing for manufacturers and retailers/distributors centers around reducing both lead times and the risks involved in holding inventory. In reality, retailers routinely pass the inventory risk to their suppliers, particularly since the phenomenal growth of multi-channel retailing, with direct dispatch (or drop ship) suppliers bulking up retailers’ online offerings without requiring a financial commitment or warehousing space.

Handfield’s Supply Chain Analytics Predictions for 2014

Supply Chain View from the Field

I’ve had the good fortune to be presented with opportunities for compelling discussions with a significant group of leading thinkers, senior executives in procurement, logistics, and technology management over this past year. As 2013 comes to a close, here are some of my thoughts regarding the supply chain trends we are likely to see emerge in 2014. With globalization, the need to partner with local logistics service providers becomes an imperative.

Vendor Managed Inventory Model for Supply Chain Cost Reductions

Cerasis

Below I will outline how a vendor managed inventory model, in conjunction with reverse marketing, value analysis, and collaboration will achieve supply chain cost reductions. Vendor Managed Inventory Model for Supply Chain Cost Reductions. A means of optimizing Supply Chain performance in which the manufacturer is responsible for maintaining the distributor’s inventory levels. The distributor maintains the inventory plan.

Logistics KPIs Case Study: Whirlpool’s Supply Chain and Logistics Success Driven by Effective KPI Implementation

Cerasis

We conclude our ongoing series in talking about effective KPI management by giving you a real live Logistics KPIs management case study from Whirlpool's engagement with a logistics service level provider. The Reiterated Importance of Understanding and Managing KPIs in Business and Logistics Management. We hope the following case study shows you the proverbial proof in the pudding of effective Logistics KPIs management. . What core Logistics KPIs would you track?

An Interview with Reshoring Initiative’s Harry Moser

CH Robinson Transportfolio

That article, from August 7th, 2014, What It Takes to Reshore Manufacturing Successfully , begins, “Rising labor costs in China and other emerging economies, high supply chain and logistics costs, and wide differentials in the costs for electricity and natural gas in different parts of the world are provoking a fresh round of relocation of manufacturing and production.”. There are many names for it: localization, near-shoring, reshoring, and onshoring.

Impact of Macro Trends on Supply Chains: Diversification of Sales Channels

Supply Chain @ MIT

At the 2013 MIT Center for Transportation & Logistics Annual Crossroads conference*, UPS’s Randy Strang described this evolution from single-channel (traditional brick & mortar) to multi-channel (siloed operations) to cross-channel (where some integration of inventory occurs) and finally to omni-channel (where the consumer experience is a blend of all channels). The inventory in the stores is now fair game for fulfillment within other channels. Hard sell.

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