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” Traditional planning models optimize functional processes to improve cost and customer service. The problem is that the reduction of costs within one function does not necessarily drive value. In today’s architectures and functional metrics, value optimization does not exist. You are right.
However, as carbon taxes and emissions reporting requirements continue increasing, supply chain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics. Freight transportation makes up over 10% of total global carbon emissions.
For senior leaders, understanding and integrating the three pillars of sustainability—environmental, social, and economic—into supply chain strategies is essential. Transportation, warehousing, and manufacturing collectively contribute significantly to carbon emissions, making these areas critical for meaningful change.
The transition to renewable energy and the adoption of sustainable practices are now essential for reducing environmental impact, ensuring regulatory compliance, and maintaining competitiveness. Businesses face heightened uncertainty in managing costs and securing stable energy supplies.
Reducingcost was the primary objective, and most operational decisionsfrom sourcing to fulfillmentreflected that mindset. Political instability has disrupted transportation corridors. Sudden tariff increases can quickly make a cost-optimized procurement strategy untenable, leaving companies scrambling to adjust.
is redefining transportation by integrating IoT sensors into vehicles, fundamentally shifting fleet operations. This integrated approach enables Summit to reduce idle time and fuel wastage, aligning with its goal of net-zero emissions by 2050. The Evolution of Connected Fleet Ecosystems Fleet Management 2.0
Many large organizations have multiple systems for order, warehouse, or transportation management that are barely integrated frequently not at all. Standard sizes and categorizations play a crucial role in determining the costs associated with shipping products that meet standard criteria in fulfillment centers.
Creating a data-driven supply chain tracking important transportationmetrics helps shippers respond and adapt as quickly as possible to known and unknown events. Why Monitor TransportationMetrics. Transportationmetrics provide visibility that helps drive operative and competitive advantages.
Functional Metrics and the Lack of Alignment to Strategy. Process-based companies continue to focus on manufacturing efficiency (OEE) and discrete on procurement (PPV) without designing the supply chain to balance transportation, manufacturing, and procurement to a balanced scorecard. The Lovefest with Shiny Objects. Guess what?
Supply chain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times.
Now for the Do’s & Don’ts In the dynamic world of FMCG, your Route to Market (RTM) strategy and distributor partnerships can make or break your brand’s success. Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Ensure margins are fair and sustainable.
We trudge on with our top posts from our main blog categories by page view for all of 2014 from the Cerasis blog by featuring another area Cerasis is an expert in: Transportation. These tips include how you yourself can better manage your transportation department and maximize resources. Read the Full Blog Post.
He is responsible for driving strategy, customer engagement, and industry analysis. Data-Driven Decision Making: By leveraging DAT’s data and analytics, businesses can make data-driven decisions to improve efficiency, reducecosts, and enhance customer satisfaction.
The company is operationalizing this target by reducing emissions as much as possible, increasing use of carbon-free electricity, and removing the emissions that remain. Supporting hypergrowth while reducing supply chain logistics emissions is not an easy feat. This of course generates carbon from transportation activities.
This unlocks enormous value as you eliminate time lags, lower costs, and slash inventory buffers across the network. This strategy enables companies to achieve four critical objectives: Unlock value trapped in the supply network that is due to poor data quality and communication. The Downfall of Enterprise-Centric Technology.
Balancing increased demand with consistent quality and controlled costs is difficult but essential for manufacturers looking to expand. Understanding Scaling Manufacturing The manufacturing business relies on scalability to increase production output efficiently without a proportional increase in costs.
System Integration and Data Visibility Orchestration requires connecting warehouse systems, transportation platforms, and ERP data so that status updates, inventory levels, and shipping exceptions are visible without needing to log in to separate systems. This doesnt eliminate those systems, it organizes the data they produce.
Cloud-based transportation management offers a variety of benefits for businesses that operate in the global supply chain. But there are times when it becomes necessary to outsource the entire process thoroughly, which many refer to as transportation as a service. Why Outdated Approaches to Transportation Management Can Fall Short .
Shippers need to reevaluate their existing last mile logistics processes and devise an effective last mile logistics strategy that aligns consumer and business expectation. In fact, an effective last mile logistics strategy must consider these nine key points. Planning Is Essential To Have an Effective Last Mile Logistics Strategy.
The global freight sector faces growing pressure to balance cost-efficiency with environmental responsibility. With freight transport accounting for a significant share of global emissions, efforts to improve logistics now extend beyond operational metrics to include resilience, regulatory compliance, and climate performance.
You’ll learn how to leverage data to streamline operations, reducecosts, improve efficiency, and exceed customer expectations. Various supply chain optimization techniques, such as detailed planning, assessing current practices, and automating processes, can significantly enhance efficiency and reducecosts.
This team controls what’s bought, from where, and at what cost for the entire organization. These benefits aren’t just about lower prices; they’re also about reducingtransportation and inventory costs, which can really add up over time. They also continuously track supplier performance.
Search engine optimizations is one of the best digital marketing hacks out there for your industry since it helps buyers hunting for a transportation and logistics company find you online – and you don’t have to pay for PPC advertising. It enables the users to monitor the websites’ paid and organic traffic, keywords, and traffic costs.
Rising costs, supply chain chaos, and economic swings put businesses under enormous pressure to protect their margins. According to McKinsey & Company, procurement accounts for 50% to 80% of a company’s cost base. That’s why organizations zero in on strategies to achieve procurement costreduction.
For logistics professionals, this translates to smarter warehouse layouts, more accurate transportation planning, proactive maintenance scheduling, and a new level of resilience through cost-to-serve optimization. This article explores how digital twins are being deployed in transportation, warehousing, and network design.
Additional opportunities can be reached through transportation optimization whether using a 3PL or 4PL. It's important to understand how transportation optimization can work well with managed transportation service providers to attain that goal. Defining Transportation Optimization.
We remain committed to growing our business with prudent investments and cost discipline to build the premier network and technology for logistics-intensive businesses." Issuances of common shares, net of issuance costs 3.6 Once completed, Descartes anticipates annualized cost savings of approximately $15 million.
Misaligned priorities, siloed systems, and unclear ownership can directly impact key performance indicators like cost savings percentage and procurement cycle time. Discover how Ivalua’s Supply Chain Collaboration solution empowers you to work more closely with suppliers, reduce risk, and build a more agile, connected supply chain.
But between rising costs, complex logistics, and the constant struggle to optimize space and labor, staying ahead can feel like an uphill battle. By maximizing space utilization, improving inventory control , and boosting workflow efficiency, you can unlock significant cost savings and elevate your customer service game.
Second, they adapt over time as market structures and strategies evolve. We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups.
The client leaned across the table and asked, “Is a customer-centric supply chain strategy the same as a demand-driven supply chain strategy?” Drawing from the Whiteboard: Building Customer-Centric Supply Chain Strategies. Cost-to-Serve. Cost-to-Serve. It had been a long night. ” I smiled.
A disruption at any point in the global logistics network including the average of 12 touch points from shipment packaging to final delivery can prove disastrous for profits, service levels, customer loyalty, and other key metrics. With the global e-commerce market predicted to reach $8.1 That is the beauty of a platform enabled by AI.
Rising costs, geopolitical tensions, and tariffs demand a strategic and holistic approach to maintain profitability and competitive advantage. There are many ways an organization can cut supply chain costs. For many large enterprises, procurement makes up a large part of a company’s total costs.
Samuel Parker and Joe Lynch discuss DAT iQ: the metrics that matter. DAT iQ provides freight intelligence to inform your budget and procurement strategies so you can navigate market volatility with greater confidence and agility. Samuel is Director of Product Marketing at DAT Freight & Analytics ‘ Shipper segment.
Managing OTR transportation through disruption is a complex process. We’re sharing seven best practices to improve OTR transportation management, enabling shippers to stay competitive in the face of disruption. Analytics provides visibility into your transportation network and operations. Across OTR Transportation Modes.
These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. On the transportation side, a cloud-based TMS integrated with IoT capabilities can help you make lower-carbon transportation choices. Start with your supply chain.
Currently Vice President of Information Security at DAT Freight & Analytics, she leads the vision, strategy, and execution of advanced security protections. Data-Driven Insights: DAT offers advanced analytics, providing shippers with actionable insights to optimize transportation decisions and mitigate risks. Erika holds a Ph.D.
In parallel, I started working on a project to eliminate the secretarial pool. Within a year, we eliminated the typing pool. I would never have eliminated the secretarial pool by asking them their opinion. We explore the concept of holistic inventory strategies focused on the form and function of inventory. The So What?
However, building such a supply chain requires smart strategies , the right partners, andmost importantlythe ability to adapt quickly when things go wrong. In this article, well explore proven strategies to safeguard your supply chain, minimize risks, and keep your business running smoothly, no matter what obstacles lie ahead.
Supply chain reports are data-driven documents that provide key metrics and insights into various aspects of your supply chain, including: Inventory Levels Tracking stock levels in real-time to ensure adequate inventory to meet demand while minimizing holding costs. truck, rail, air, sea) to identify the most cost-effective options.
Automation in supply chain planning is not new, but traditional automation efforts have often been narrowly focused on costreduction and efficiency. Instead of treating automation as a checkbox item, organizations must embed it into their core strategy, leveraging it across various dimensions of planning.
When it comes to the logistics industry, whether it's transportation management contracts or warehouse contracts, there are a million moving parts, and as many questions. And our client engages with 3PL by open book cost plus contracts and gain share and pain share incentive. Customer metrics. Who doesn't love a good contract?
The issue is that when companies optimize functional metrics, they throw the supply chain out of balance and sub-optimize value. The most efficient supply chain (in terms of lowest cost) is not the most effective. Automation of traditional planning taxonomies focused on costreduction sub-optimizes market capitalization/employee.
An efficient supply chain strategy is one that takes every aspect of your supply chain into account, from inventory management and warehouse design to freight tendering and transport optimisation. Supply chain efficiency focuses on improving your processes whilst also reducingcosts. What is Supply Chain Efficiency?
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