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Geopolitical instability, extreme weather, labor shortages, and fluctuating consumer demand regularly impact global logistics. They integrate AI into demand forecasting, inventory optimization, and logistics operations to improve efficiency, reduce costs, and mitigate risks.
How CPG leaders can reduce costs without hurting supply chain performance fbaker Tue, 06/03/2025 - 09:18 In the consumer packaged goods (CPG) industry, SG&A (Selling, General, and Administrative) costs have long been a go-to target for improving margins. But today’s market is anything but typical.
Gartner reports that companies using data-driven strategies can achieve a 20% increase in sales by aligning inventory with current market trends. Inefficient inventory management often leads to last-minute rush orders that inflate logistics costs. Is this the strategy you want to pursue? What are you waiting for?
Companies now must make strategic decisions regarding pricing, shipping, supply chains and overall logistics. Below, we provide nine tips to optimize your shipping and tell you how a third-party logistics (3PL) provider can help you during these difficult times.
The onus is on ecommerce retailers to control the controllables, and focusing on eliminating uncertainty from the consumer fulfillment process and optimizing the last mile is a smart approach. Are they meeting consumers’ home delivery expectations, whether that’s affordable delivery, specific time windows, or sustainable options?
In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. Additionally, we’ll discuss best practices for optimization and strategies for balancing efficiency with resilience. Automate supply chain processes to enhance efficiency and accuracy within logistics operations.
Spare parts supply chains, however, come with their own set of complexities, requiring targeted strategies and specialized tools to meet these unique demands effectively. This optimal inventory positioning leads to increased customer satisfaction, reduced downtime for clients, and improved brand reputation.
Shipping freight doesn't always fit neatly into less-than-truckload (LTL) or truckload (TL) categories. Whether you're scaling your business, shipping bulky items or simply looking to avoid overpaying for unused trailer space, partial truckload shipping gives you the flexibility and cost-efficiency you need.
In the past, tracking a shipping container across continents or monitoring the temperature of a pharmaceutical package in a rural warehouse came with trade-offs: cost, power drain, or unreliable coverage. And that practicality is unlocking a new standard of visibility across logistics networks. This is changing.
Subscribe 6 Techniques to Reduce Last Mile Delivery Costs! Managing shippingexpenses is crucial for the success of any online business. With the rise of e-commerce, especially in Brazil, consumers expect fast, affordable shipping, which often puts pressure on businesses to absorb the costs or pass them on to customers.
If your business depends on freight shipping, you've likely felt the effects of a world that seems to change overnight. From port congestion and fuel surcharges to weather events and labor shortages, the threats to your shipping network are real and growing. Even businesses that ship only within U.S. The good news?
But between rising costs, complex logistics, and the constant struggle to optimize space and labor, staying ahead can feel like an uphill battle. In this comprehensive guide, we’ll explore the key elements of warehouse optimization and provide actionable strategies you can implement today.
Intermediary costs Third-party auditors, banks, and brokers drive up expenses. Logistics & Shipment Tracking Tracking shipments across multiple jurisdictions is difficult. Today, logistics firms rely on RFID tags, barcode scanning, and centralized tracking systems, which are vulnerable to tampering and inefficiencies.
Navigating these charges can be challenging for businesses, but understanding them is critical for cost-efficient shipping. This guide will break down the various elements of freight tariffs, providing insights into how businesses can manage and predict shipping costs more effectively. What Are Freight and Cargo Tariffs?
Because logistics are tightly woven into production, fulfillment and the customer experience, the impact of a transit issue, like a delayed shipment, can quickly ripple across the whole business. based manufacturer that ships engine blocks through several U.S. This shipping method can offer faster transit with fewer handoffs.
The logistics landscape is evolving rapidly as more manufacturers relocate production closer to domestic markets. For logistics professionals, understanding how these changes impact freight networks is critical to staying ahead. Investments in rail networks to reduce emissions and support sustainable logistics.
Last year, the MIT Center for Transportation & Logistics and the Council of Supply Chain Management Professionals (CSCMP) published a report entitled The State of Supply Chain Sustainability 2023. He explains, “Sustainability has been moved out of the strategy function and relegated to the lawyers and accountants of compliance.
This system offers several advantages over traditional methods: Real-time data access: Instantly view accurate stock information, eliminating manual updates and ensuring all users have the latest data. By utilizing mobile inventory management, businesses can make informed decisions, reduce errors, and improve overall efficiency.
Economic downturns can disrupt the flow of goods, increase operational costs, and reduce profit margins. These disruptions can occur due to decreased consumer demand, supplier instability, or logistical challenges. Recession-proofing a supply chain doesn’t mean eliminating all risks.
But while customers expect returns to be a part of their purchase process, the reverse logistics process can be a challenging cost center for retailers, enterprises, and businesses alike. However, many businesses haven’t yet fully mastered the reverse logistics process. Mastering reverse logistics isn’t just about cutting costs.
What begins as a convenient and capital-efficient fulfillment strategy can quickly become a strain on operations and create further complications downstream as end consumers face rising shipping costs, longer delivery times, customs delays and surcharges, and limited return options. For example, a U.S.-based
Subscribe Shipping Containers! Infographic) Shipping containers have left a mark on the supply chain industry and beyond. Learn more about how shipping containers revolutionized the supply chain industry in this blog. Supply Chain Optimization Shipping containers played a pivotal role in optimizing supply chains.
Pickers then locate each SKU, verify quantities, and stage items for packing and shipping. In many operations, picking accounts for over 50 percent of labor expenses and up to 60 percent of total process time, making it the prime lever for cost reduction, throughput gains, and accuracy improvements.
In today’s complex logistics landscape, shippers are demanding more than just periodic tracking updates. End-to-End visibility —once a buzzword—is now a business imperative, unlocking the power of data analytics to improve performance, reduce costs, and manage risk with confidence. Which lanes are underperforming?
Its direct, expensive, and increasingly hard to plan around. Tariffs are reshaping sourcing strategies, forcing tech upgrades, and making inventory planning a lot more complicated. Tariffs are reshaping sourcing strategies, forcing tech upgrades, and making inventory planning a lot more complicated. Another trend?
Nonetheless, a smooth and effective post-purchase experience is essential to the success of any e-commerce venture, and domestic shipping is a vital component of this procedure. Shipping affects a customer’s opinion of your brand and level of happiness from the minute they click “purchase” until they receive their goods.
Supply chain automation refers to the tools and technologies we can use to make manual tasks automated, reducing the need for human workers. These smart robots talk to the WMS to optimise picking routes and cut order fulfillment time in half. Supply chain automation brings various benefits to your logistics process.
Cross Country Shipping Guide: Everything You Need to Know! Before logistics providers send goods over to their destinations, they conduct a pre-shipment inspection. According to industry research , shipping errors occur on 2% of the average merchant’s packages. Can pre-shipment inspections cut this error rate?
Just as your body needs multiple defense mechanisms to fight off illness, your supply chain needs various strategies to handle disruptions, whether they’re local supplier issues or global crises. Let’s look at five proven strategies that can help you create a more resilient supply chain.
There are many ways an organization can cut supply chain costs. While there are no short-term fixes, enterprises should prioritize areas where they can make the quickest gains to reduce costs. This is a short term strategy, and one that can ultimately damage relationships with key suppliers.
Parcel shipping is an expensive business. Customers are rarely willing to pay high delivery charges, so maximizing logistics return on investment is critical. You need to get the most customer satisfaction at the lowest shipping costs. This is vitally important when you ship to customers around the world.
In an increasingly globalized world, logistics and transportation have taken center stage in the successful operations of businesses worldwide. Emerging from the shadows of standard methods, custom logistics and transportation platforms are shaping the future of the supply chain industry.
If you serve customers across a limited geographic area, this may be a more cost effective shippingstrategy. However, if your customers are dispersed around the world, the best way to control global logistics and international parcel shipments is to leverage multiple carriers. This adds complexity to the shipping process.
Cost, Proximity and Speed Freight cost per container from Asia to North America has risen by nearly 60 percent since 2020, driven by port congestion and shipping-line rate hikes. border hubs remains stable at a fraction of that expense. The Lázaro Cárdenas terminal expansion aims to double capacity by 2028, reducing dwell times.
Freight shipping for plastic products is a critical component in maintaining profit margins and delivering value to customers. Effective freight management can reduce costs, streamline operations, and overcome logistical challenges, creating a more resilient supply chain. Penalties from missed delivery windows.
Allianz Commercial recently released its annual Safety and Shipping Review, discussing trends and risks impacting the global shipping sector. Increased cost-of-living expenses create an incentive to steal everyday items. This can be supported by GPS trackers for the most vulnerable products or routes.
This allows businesses to track expenses, costs, and payments against the appropriate financial accounts. By automating this process, you reduce errors and improve financial reporting accuracy. In VRM systems integrated with Kechie ERP software, you can assign vendors to specific general ledger accounts.
Supply chain strategy is critical to business success, but companies often underestimate its importance and hence pay it less leadership attention than other areas of operation. Supply Chain Strategy In 2014, a survey by Tompkins Consortium delivered a shocking revelation.
When we talk about volume leverage in logistics, we’re essentially looking at how we can use higher volumes to create advantages across different areas of the supply chain. What might seem too expensive for smaller volumes suddenly becomes cost-effective when you’re dealing with larger quantities.
In this article, we’ll delve into the challenges of stock balancing, explore effective strategies, and examine how this often-overlooked practice can significantly impact your bottom line. Inventory balancing, therefore, becomes a crucial strategy for reducing costs, increasing efficiency, and ultimately, satisfying customers.
Parcel shipping is expensive. Despite that, customers expect low cost — ideally free — shipping and rapid delivery. As a result, many are leveraging multi carrier shipping software to reduce costs without reducing customer service. Multi-carrier shipping lets your business better manage returns.
The global logistics industry undergoes transformative change because of technological developments which enhance delivery services from last-mile operations to worldwide freight management. The Need for Customization in Logistics The IMARC Group predicts the global logistics market will achieve $15.5 trillion in value by 2027.
Transportation costs: Freight rates, fuel and labour costs, and other transportation expenses. Labour productivity: Efficiency and productivity of picking, packing, and shipping activities. Competitor intelligence: Distribution strategies and network designs of your competitors.
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