This Week in Logistics News (November 10-14, 2014)

Talking Logistics

September 2014 Freight Transportation Services Index (TSI). Cass Freight Index Report – October 2014. As reported in the Financial Times : Under the most eye-catching plan – known as Synchronised Delivery Solution – a package due to be delivered to a given address will wait for others coming from other sources, which will then be delivered with it. . The post This Week in Logistics News (November 10-14, 2014) appeared first on Talking Logistics with Adrian Gonzalez.

This Week in Logistics News (June 30 – July 4, 2014)

Talking Logistics

I encourage you to read the full article for all the details, but here are some interesting excerpts (emphasis mine): A source familiar with the company’s plans says senior Google execs have set aside as much as $500 million to expand the service nationwide …“You can very much expect that we are putting a lot of money into this and we’re excited and willing to sustain that investment over time as this gets going,” said Tom Fallows, head of Google Shopping Express. .

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Getting Down to Brass Tacks: Can We Really Collaborate?

Supply Chain Shaman

Source Wikipedia. It needs to be an accurate signal reflecting real-time changes as orders are shipped throughout the day. Definition: Brass tacks are a type of pin or nail. The phrase to come (or get) down to brass tacks is sometimes used idiomatically to consider the basic facts of a situation. In the 1990s suppliers had channel power. The formula for success seemed foolproof. A new product was launched, the ads ran on national TVs, and “poof” a new brand was created.

Innovative Approaches to Supply Chain Risk

Kinaxis

This key supplier had been identified and sure enough, you have a second source primed and ready to go. We have a problem.” The alternate source uses the same supplier in Taiwan. Adding to this challenge is the reluctance of suppliers to share their sources with their customers for competitive reasons. Supply chain risk management practice advises us to source additional suppliers and plan additional strategic inventories as mitigation strategies.

Steel Fabrication and General Manufacturing Tips and Tricks for 2015

Cerasis

As manufacturers continue to increase profitability and increase their share of the overall GDP, in order to sustain and survive long-term, they need to focus on these key areas for logistics efficiency: Use Readily and Easily Deployed Transportation and Freight Technology : A survey by ARC revealed that 23 percent of respondents using a transportation management system would see a 10 percent increase in total freight costs if they stopped using the system , the source reported.

Throwing Down the Gauntlet

Supply Chain Shaman

This includes the decision to build, the digital definition of the product, the decision of when and where to ship, and the decisions of which materials to put into which products. This is the clear articulation of when and how to make, source, and deliver for the community. “We live in a world where supply chains, not companies, compete for market dominance.

Google Will Acquire a 3PL – And Other Supply Chain and Logistics Predictions for 2015

Talking Logistics

Brent crude oil prices Dec 2009 – Dec 2014 (Source MoneyAM.com). For related commentary, see Insights from Ryder Innovate 2014. — Adrian’s Supply Chain and Logistics Predictions for 2014. Shipping and delivery capabilities become even bigger competitive weapons. Trade agreements, protectionism, and threat of port strike will dominate global trade news in first half of 2014.

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How to Use Big Data to Improve Supply Chain Visibility

Talking Logistics

According to a July 2014 supply chain research study from Accenture focused on Big Data and supply chain risk management, most organizations have high hopes for using big data analytics in their supply chain but many have had challenges in deploying it. Thanks to changes in technology and digital storage capabilities, companies are now able to collect and amass a huge amount of data from many disparate sources.

The Next Great Disruption Coming to Supply Chains

Kinaxis

Consumers used multiple devices, internet of things, etc, to check FGI (finished goods inventory) /sub-assembly and raw inventories, build plans, and sourcing options, as they are considering a purchase! Then, they check online for deals and shipping dates. They want to assure the sourcing meets their “sustainable” expectations. Test scenarios that would optimize inventory costs, postponement options, shipping costs, etc….

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. Work with your broker to see if you can get priority on unloading the ship and inland transport. Companies of all sizes have been capturing the value from Global Supply Chain to increase the economies of scale and scope for years.

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How Big is the Same-Day Delivery Market?

Talking Logistics

The folks at BI Intelligence published a report this week, and they estimate that about $100 million of merchandise will be ordered via same-day delivery in 2014, generating about $20 million in shipping fees (the analysis covers just 20 U.S. billion of merchandise will be ordered via same-day delivery (a 5-year CAGR of 154 percent), generating a little over $1 billion in shipping fees. Source: [link].

How Lean is your Warehouse?

LeanCor

The assessment covered safety, customer focus, stability, standardization, visibility, quality at the source, flow, teamwork and collaboration, and continuous improvement. What we found as areas of opportunity are: Stability, Continuous Improvement, Quality at the Source, Standardization and Flow of Materials. We have to be careful, however, with simply calculating without going to the warehouse, the receiving, shipping dock or the put away process – aka to the GEMBA.

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Avoid These Parcel Shipping Mistakes to Reap Big Benefits

BluJay Solutions

What if I told you I could help your company save thousands of dollars in parcel shipping costs? In the webcast we covered five of Rob’s top 10 mistakes, which were based on Rob’s recent article in PARCEL Magazine , “Top 10 Mistakes Parcel Shippers Continue to Make in 2014.” In a single carrier environment, you limit your ability to find the best shipping option. Having a multi-carrier shipping solution solves this first mistake.

Outbound Logistics

LeanCor

Shipping Produce via Rail Can Be Lean. The perfect order is determined by the “8 Rights” – we want to deliver the right product, in the right quantity, to the right place, at the right time, in the right quality, from the right source, at the right price by providing the right service to our downstream customers. Outbound Logistics: Think Outside of the Trailer. By Susie Sterling, Supply Chain Solutions Director at LeanCor.

How to boost relationships between shippers and 3PLs

DELMIA Quintiq

With regards to handling global manufacturing operations, let’s take a look at a situation where sourcing is done, say, somewhere in China and then shipping is carried out for selling in European markets. 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.

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Healthcare Logistics

LeanCor

Suppliers were faced with difficulties resulting from the large number of distribution centers to which they were required to ship material. LeanCor also developed the material flow and inventory strategies from sourcing to the forward distribution centers. Healthcare Logistics: A Network Design Case Study. By: Leeanna Thomas – Manager Business Development. $23 23 million dollars in total healthcare logistics cost savings; how would that make you feel?

Five Major Changes Happening Right Now in Industrial Distribution

The Network Effect

Experience also includes mobile, order history, personalization, workflow management system, and free shipping and returns. You can do this by offering products for which you do not stock inventory, but rather pass the order onto your marketplace partner who drop- ships the product to your marketplace customers. Another price reduction avenue is to cut out your supplier and go directly to the source and offer your clients private label.

The Messy Reality of Cross-Border E-commerce (Thoughts on UPS Acquiring i-parcel)

Talking Logistics

Source: Pitney Bowes (click to enlarge). On Amazon.com, for example, there are several discussion forums dedicated to i-parcel, including one called “ i-parcel Questions and Answers ” (1,000 posts, as of today) and another called “ i-parcel the worst shipping carrier ” (953 posts). If you read through the posts, you’ll find many frustrated and confused Amazon customers like these: Source: Amazon.com (click to enlarge). Source: Amazon.com (click to enlarge).

What Role Does Global Trade Data Play in Today’s Supply Chains?

Talking Logistics

With so much buzz today around e-commerce, international shipping has been a historically challenging area for online retailers. There’s also a lot more visibility than there ever was in the past, whether you’re shipping a container or a sweater overseas. That includes trade agreements and sourcing (i.e., Global Trade Data (aka “trade content”) is one of the “3Cs” of Global Trade Management , but its value extends well beyond facilitating import and export processes.

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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. Moreover, products can be shipped to stores in-time then lost sales is minimal.

3 Components to a Complete Lean Transportation Management System

LeanCor

We start with customer demand and consider overall value when sourcing carriers, instead of transportation rates alone. We issue web-based advanced shipping notices (ASN) to our customers. When we hear “transportation management system” at LeanCor, we don’t just think of software. We think of the people, processes, and technology that work as a whole to move materials and information.

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Lost in Translation-Incorporating Consumer Demand into your Supply Chain

The Network Effect

Her sources of information discussed, among other things, what might theoretically happen if the renminbi were allowed to float – and this is what she wrote in her column. The process that has emerged serves as universal translators, taking forecasts of true consumer demand at the point of consumption – product by product and store by store – and automatically generating projections of inventory, shipping and resource needs all the way back to the manufacturing plant.

Can Your Inventory Control System Support Seasonal Demand?

LeanCor

Understand the difference between shipping/cycle stock, buffer stock and safety stock. Separating inventory into buffer stock (to absorb customer variation) and safety stock (to absorb supply variation and special cause variation) aids in problem solving by identifying the source of the cause of abnormal inventory (overstock and understock). Have you noticed? Halloween/All Saints Day/Dia de los Muertos is just around the corner!

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Global Supply Chain Visibility is No Easy Task

Talking Logistics

Let us take a look at how visibility in your supply chain can extend from the sourcing of raw material all the way to the delivery of finished goods to a consumer. First look at sourcing, then the purchase order process, order management, track and trace, all the way through to reconciliation. Prior to Kewill, he was the co-founder, CTO and COO of Pointandship Software where he led the design and development teams for their Shipping Expense Management software.

Distribution Logistics

LeanCor

Allows merchandise to be tracked from its source to the present location. Provides a very organized shipping system that assists in time and cost saving. Distribution logistics includes a wide range of activities. These all focus on achieving efficient distribution and movement of finished products. This takes goods from the end of a production line to reach consumers. Aside from that, it provides a wide set of optimization methodologies and tools.

Apple: Still a Penny Wise and Pound Foolish?

Talking Logistics

For example, here are a couple of the contract terms he references in the declaration: - The pricing for sapphire [which GTAT was to produce] was the lesser of (i) the price agreed between the parties, (ii) the “not to exceed” price listed on a schedule, (iii) 95% of the lowest price offered by GTAT to any of its customers or (iv) 99% of the quoted price in a bona fide offer to Apple from another qualified source.

Mistaking a Cog for the Whole Machine

LeanCor

Lambert, articulates this very truth on his first page: “In fact, many people using the name supply chain management treat it as a synonym for logistics…” In reality, this confusion demonstrates an outdated view that still puts logistics in a box (or perhaps a shipping container) as a silo’d activity meant to get material transported in or out of the plant. By: Clint McCrystal. link].

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How Cummins Power Generation Used Lean Six Sigma to Achieve Significant Transportation Savings

Talking Logistics

Subsequently, LSS projects were developed to address waste in several key areas: contract carrier freight rationalization, ship day alignment, Asia-to-US / Asia-to-Europe container optimization, CNG truck costs and impact. After gathering and comparing data from multiple sources – something they couldn’t do before due to previously inefficient processes – they uncovered potential issues with their freight audit system due to deadhead miles.

Inbound Logistics

LeanCor

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. This should include: Supplier shipping locations. From this, you can create a map that was used to identify and plan milk-runs and shipping-consolidation opportunities.

Drop Shipping: A Perfect Fit for Supply Chain Operating Networks

Talking Logistics

As reported last month by Jennifer Smith in the Wall Street Journal , “A growing number of retailers are relying on suppliers to ship online orders directly to customers, a strategy they hope will help them compete with e-commerce rivals without spending more on inventory. The practice, known as drop shipping, lets retailers offer more products for sale on their websites—such as multiple colors of the same sweater—without having to keep those items in stock.

Warehousing and Logistics

LeanCor

Warehousing and Logistics – Quality at the Source. In warehousing and logistics the goal is minimizing cost and fulfillment times, and initiating quality at the source is key to fulfill these goals. To develop a quality at the source implementation map, draw from the “perfect order” in logistics management. With this definition in mind, we need to ensure that we have equality at the source or mistake-proof methods in place to realize the perfect order.

Multimodal 2015 – Advanced Supply Chain Management and Logistics for Cargo Owners

Supply Chain Movement

Date: 28 – 30 April 2014. In 2014, more than 7,000 high-calibre visitors attended. Shipping Managers, Procurement Directors, Distribution Managers, Traffic Managers, Logistics Directors, SCM Directors, Sourcing Managers, Transport Managers and Supply Chain Directors from: Major High Street and Online Retailers. To see the list of companies that visited in 2014, please click here. Multimodal 2015. Venue: NEC Birmingham. Organiser: Clarion Events.

Modular production requires comprehensive optimization

DELMIA Quintiq

They incur considerable logistic cost and effort; products for the world’s markets are produced and shipped from only two or three facilities. And instead of having either a small or large facility, modularization lets companies build production containers that are flexible for set-up wherever they are needed – for example, near the customer or near the procurement sources for upstream products. We are seeing many developments in the chemical industry.

Unlocking the Value of Global Supply Chain: the Case Studies

Supply Chain Opz

In order to control its supply chain, they use a central warehouse to Germany to receive and ship products to local distribution centers in different countries. Under this program, they source products directly from small or medium-sized farmers. Global supply chain is a very challenging subject in supply chain management because it involves different customer''s requirement, more complex operations/collaboration and unforeseen risks.

SCM World 2014 Chief Supply Chain Officer Report: A Conversation with Kevin O’Marah – Part III

Supply Chain Nation

Certain industries, and retail in particular, are under unbelievable pressure to say yes to everything every customer can think of—buy online – ship to home; buy online – ship to store; return to store when bought online. In our final post in this series, launching November 20, O’Marah will discuss how the current trend toward vertical integration will impact out-sourcing.

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