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Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer. These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management.
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. This shift reflects a broader transition toward data-driven, performance-based management of freight networks.
Creating a data-driven supply chain tracking important transportation metrics helps shippers respond and adapt as quickly as possible to known and unknown events. Why Monitor Transportation Metrics. Transportation metrics provide visibility that helps drive operative and competitive advantages.
billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions.
Three months into 2025, we have seen a barrage of on-again, off-again tariffs that have supply chain and logistics teams reeling, as they must rethink everything from next weeks shipping route to their foundational network models. They are also limited by their supplier, carrier, and trading partner networks. billion to $23.07
Businesses are now managing goods and information across multiple locations, time zones, and partner networks. Dell Factory Optimization Using Edge Computing Dells factories use edge computing to process production data locally, without relying on a central cloud platform. The system also contributes to better forecasting accuracy.
He had a load full of cotton bales, and while idling away hours at a shipyard watching stevedores load other cargo onto ships he dreamed up containers that transformed global supply chains. Containerization eventually reduced shipping and loading costs by at least 75%.
But between rising costs, complex logistics, and the constant struggle to optimize space and labor, staying ahead can feel like an uphill battle. That’s where warehouse optimization comes in. Here’s what you can expect: A clear definition of warehouse optimization and its core components. Ready to get started?
billion rate data points monthly to provide the most comprehensive view of the market, helping you identify savings opportunities and make data-driven decisions.
As companies across industries have discovered, a well-optimized supply chain can drive significant improvements throughout their operations. We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency.
As consumer spending fell, the days of escalating ocean freight and extreme shipping variability eased this year. For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Yes, better optimizers are a blessing, but now, focus small to visualize and align on alternatives.)
But the sheer complexity of supply chain networks, and the impact design decisions have on operational performance, makes supply chain inventory management aligning inventory investments with on-time customer delivery and margins a major challenge. Implementing inventory optimization. Single vs. multi-echelon inventory optimization.
When you track transportation metrics and KPIs like transit time, on-time pickups, and percent of truckload capacity utilized across your carrier partners, you can identify trends and opportunities for streamlined OTR transportation management. Analytics provides visibility into your transportation network and operations. a shipment?doesn’t
You’re expected to ship more orders, faster, with fewer errors — all while managing rising costs and shrinking labor pools. These strategies optimize warehouse performance and reduce costs. Warehouse operators are under constant pressure to do more with less. Think about it: How much time is wasted hunting down misplaced inventory?
Using less-than-truckload for medium-sized shipments is one of the great innovations in shipping. It produces results at a fraction of the cost of full truckload (FT) or small package shipping. Optimization for All Employees’ Duties. Contract negotiation is becoming a major factor in shipping. Contract Negotiation.
The warehouse I ran just completed a consolidation of three shipping centers. The analysis, based on networkoptimization assumed average loading, and did not account for the swings. So, I was always struggling on a daily basis to establish a feasible plan to ship 180 trucks out of 22 doors in a twenty-four-hour operation.
A network design model figures out where factories and warehouses should be located. The key solutions are demand forecasting/inventory optimization, supply planning, and network design. The key solution for this is network design. Supply and network design models are constraint-based models. No plan is.
As the state of the trucking market evolves and innovations improve , OTR freight management technologies and logistics service providers offer transportation management optimization to help businesses avoid significant supply chain disruption. Rapid Scalability and Leveraging the Collective Buying Power of a Large 3PL .
For retail and consumer packaged goods (CPG) companies, the busy shipping season came early. Inventory strategies are increasingly focused on optimizing stock locations — what to hold and where, especially for inventory not immediately sold. The peak inbound season typically starts around this time of year.
Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability. They implemented a simple planning technology with an outside-in channel-centric model (Ship to model definition).
This architecture deliberately pushes beyond visibility to enable action and automation, ultimately working toward what project44 describes as “self-optimized logistics” through “adaptive, automated actions at scale.” This extensive connectivity has resulted in impressive metrics: 1.2
But companies often have diverging incentives and interests from their supply chain partners, so when they independently strive to optimize their individual objectives, the expected result can be compromised. ”. I think about this discussion with Keith often as I work on the Supply Chain Index and edit the chapters of Metrics That Matter.
Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. This includes optimization and discrete event simulation. It allows companies to evaluate the design of the network. Metrics Alignment. They lack cohesion.
Given these disruptions, supply chain resiliency will be a critical factor in ensuring the success of your network. Introduce your company and your unique shipping needs. Include questions about their business history, coverage area, network size, and any relevant certifications. 10 Freight RFP Components for Success.
In dynamic slotting, goods for which there is high demand are located nearer to the shipping docks to minimize travel. It is better to receive inventory on a loading dock, take the inventory needed for a hot shot shipment, and move that inventory through the DC to a shipping dock where it is loaded on a truck. Let me explain this.
This can result in a messy supply chain network and flows that adversely impact cost-to-serve as can be seen in figure 1 in case of a distribution intense company we worked with. This network evolved over a period of time as the company went through significant shifts such as acquisitions and launching of several new products.
This is especially prevalent in organizations that have experienced growth through mergers and acquisitions and now need to reconcile multiple ERP, WMS, shipping, and transportation systems. Plus, accurate inventory information is the key to optimal decision-making. How do they achieve this? Looking to Get Started?
The increasing need for constantly analyzing these trade-offs across the supply chain networks has highlighted the need for digital twins and what-if capabilities in network design solutions. This means continuously assessing the trade-off between the total cost to serve and meeting customer demand and minimizing lost sales.
The second phase involved Mohawk extending their new supply chain improvements out to its distribution network. Mohawk continues to fine-tune its S&OP process to optimize inventory in the planning system. They also cut inventory levels, grew sales and resolved capacity issues.
Transportation Networks and Modal Shifts A good transportation strategy is one of the best ways to reduce emissions. Through networkoptimization. This means consolidating shipments to max out load factors, using route optimization algorithms to minimize distance travelled, and shifting to lower emission transport modes.
When a manufacturer’s product normally moves through the supply chain network, it is to reach the distributor or customer. The manufacturing firm would then have to organize shipping of the defective product, testing the product, dismantling, repairing, recycling or disposing the product. Managing return logistic can be challenging.
Transportation Metrics That Matter Most to Track and Improve Performance : How do you measure logistics efficiency and transportation metrics performance indicators when you are already doing the best job possible? Let’s take a look at these trucking industry trends and what kind of facts they provide. Read the Full Blog Post.
The company can connect all aspects of the execution process, including labor cost and capacity, warehouse capacity, and shipping, and then integrating all of this data into their data cloud platform for a holistic view of OMS, TMS, and WMS. Manhattan also spoke about returns, as they use their routing optimization engine for returns.
Financial reengineering focuses on the optimization of short-term results that are usually based on a functional analysis of source, make, or deliver. Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. Cash-to-cash is a compound metric. Reflections. Tonight I am in Frankfurt.
We have found that supply chain metrics are gnarly and complicated.During Eight years ago, we started with a focus on Total Delivered Cost (TDC) and elevating our cost savings program performance, as well as eliminating sub-optimized cost efforts that might have helped in one specific area, but hurt our overall performance.
This critical aspect of optimization is often overshadowed by flashier supply chain trends. By ensuring optimal stock levels where demand exists, businesses can minimize holding costs, prevent lost sales due to stockouts, and ultimately, keep customers happy. The problem lies in effectively balancing inventory across the supply chain.
The energy crisis in China and the European conflict are bringing additional chaos in the form of production shutdowns, raw material shortages and blocked shipping lanes. This allows all transportation resources to be leveraged in creating a response, including the extended carrier network.
To achieve these goals, corporate leadership must focus on two key areas: shift from internally focused supply chains to collaborative supply networks and actively design their supply chains. With expansion of supply chains into supply networks globally, there is an increased chance of disruptions caused by various kinds of risks.
You must implement the proper controls needed to optimize all of the processes throughout your global network. With these blind spots, organizations are unable to drive the proper metrics to manage day-to-day operations and generate significant business value.
To monitor supply chain performance, stakeholders of successful companies typically define supply chain metrics that are relevant to the given business and track these KPIs regularly. By setting benchmarks for metrics, analysts can recognize unsettling trends and take preventive measures on time.
While I like his optimism, I’ll believe it when I see it. Amazon achieved its fastest-ever global shipping times last year but isn’t resting on its laurels. The fall came as airfreight rates were under pressure last year due to flat demand and increasing capacity as networks were re-established following the Covid pandemic.
I also shared with them my view that companies will ultimately find opportunities for supply chain innovation at the intersection of Software, B2B Connectivity, and Social Networking — a trend best illustrated by the rise of Supply Chain Operating Networks (SCONs). Supply Chain Operating Networks Accelerate Business Cycles.
Transportation’s explosive growth, the complexity of the networks and frequent capacity constraints have created an environment that requires a true digital operating platform for transportation. Users should also be able to access a carrier network to find cost effective capacity when needed.
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