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” Traditional planning models optimize functional processes to improve cost and customer service. For example, if I improve the cost structure in transportation, procurement, manufacturing and sales independently, what decision support framework decides the right trade-offs? You are right.
Many large organizations have multiple systems for order, warehouse, or transportation management that are barely integrated frequently not at all. Optimizing fulfillment requires a series of steps to get a shipment from its source to the end customer.
Political instability has disrupted transportation corridors. Sudden tariff increases can quickly make a cost-optimized procurement strategy untenable, leaving companies scrambling to adjust. Finally, rigid fulfillment networks compound the problem. These tools dont need to cover the entire network to be useful.
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.
There are many working parts, network partners, and opportunities for things to go wrong that some are often overlooked. Additional opportunities can be reached through transportationoptimization whether using a 3PL or 4PL. Defining TransportationOptimization.
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. The Ukraine-Russia conflict is ongoing. Tensions flare in the Middle East without warning.
Road freight alone accounts for approximately 7% of global CO2 emissions, with maritime and air transport further amplifying the environmental burden. Key strategies include: Electrification of Transport: The use of electric vehicles (EVs) for freight and last-mile delivery reduces emissions and operational costs.
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.
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 .
is redefining transportation by integrating IoT sensors into vehicles, fundamentally shifting fleet operations. Similarly, UPS uses its ORION system, which integrates real-time and historical data to optimize delivery routes, saving fuel and enhancing delivery reliability.
Forget static network designs and gut-feel decisions. By harnessing the power of data science and analytics, you can gain end-to-end visibility across your entire network, breaking down information silos and optimizing every stage of your operations. Ready to get started? Let’s dive in.
Key Takeaways: Taking the Uncertainty and Risk Out of Freight Network Integrity Unit:DAT has a dedicated team, the Network Integrity Unit, which works around the clock to monitor the network for suspicious activity, investigate potential threats, and enforce security measures to protect users from fraud and cybercrime.
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.
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 transportationnetwork and operations. Across OTR Transportation Modes.
The traditional metrics of excellence cost efficiency, on-time delivery while still important, are no longer sufficient in an era defined by volatility, complexity and political changes. The convergence of artificial intelligence and digital networking technologies is fundamentally reshaping our operating models.
Samuel Parker and Joe Lynch discuss DAT iQ: the metrics that matter. Key Takeaways: DAT iQ: The Metrics that Matter In the podcast interview, Samuel Parker gave a freight market overview based on DAT’s database of $150 billion in annual market transactions. He lives in Denver, Colorado with his wife and son.
We are trying to assess the value of a network in managing contract manufacturing.) Use of Supply Chain Descriptors Most organizations are locked into functional silos driven by functional metrics. Stuck in a rut, supply chain leaders try to punch their way through a set of conflicting metrics and priorities each day.
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.
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?
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. As companies across industries have discovered, a well-optimized supply chain can drive significant improvements throughout their operations.
These virtual replicas of physical assets, processes, or systems allow leaders to simulate, analyze, and optimize real-world performancewithout incurring real-world risks. This article explores how digital twins are being deployed in transportation, warehousing, and network design.
Managing transportation — the ebb and flow of rates, capacity, fuel and regulations — is an ongoing challenge for many companies, especially those still using spreadsheets and fax machines to plan and execute shipments. How will you establish and manage electronic communication with carriers and other trading partners?
Third, they align the interests of all the firms in the supply network so that companies optimize the chain’s performance when they maximize their interests. Reward teams for cross-functional metrics. Focus functional metrics to improving reliability. For more on this topic, read the book Supply Chain Metrics That Matter.
Yes, we have achieved greater normalcy in transportation. For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. During the pandemic, companies struggled with planning systems turning off the optimizers, and using the technology as a system of record. What is normalcy?
In a hyper-connected scenario of the future, entire networks can proactively sense and respond to potential supply chain disruptions. Optimize supply chain execution and minimize both delivery time and costs. Analyzing real-time insights and historical performance using AI, delivers key metrics on availability and service levels.
OTR freight represents a long-standing aspect of supply chain operations and transportation management. M odern transportationnetworks and supply chains continuously adapt to market volatility and transitions. M odern transportationnetworks and supply chains continuously adapt to market volatility and transitions.
Here are the Top 5 Do’s and Don’ts to help you build a high-performing RTM model and distributor network: ✅Top 5 Do’s Do Align RTM Strategy with Consumer Behaviour : Design your RTM based on where, how, and why your consumers shop. Urban vs. rural, modern trade vs. traditional trade—each requires a tailored approach.
This configuration screen shows how Solvyouo maps transportation constraints. A network design model figures out where factories and warehouses should be located. Here the savings are based on transportation and facility cost savings. The key solution for this is network design. This would be a three-way tradeoff.
V2X allows vehicles to exchange data with their environment: other vehicles, traffic signals, the cloud, 5G networks, and pedestrians. Track KPIs, Not Buzzwords Evaluate V2X based on tangible logistics metrics: fuel savings, delivery times, accident rates, and emissions. Focus on what drives profit and safety, not just innovation.
I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. In my work on the Supply Chain Index , I see that companies I recognize as doing network design well are rising faster on the list of the Supply Chain Index work.
However, over-the-road transportation costs remain low. Inventory strategies are increasingly focused on optimizing stock locations — what to hold and where, especially for inventory not immediately sold. In the past month, imports — both ocean and air — surged as disruptions exacerbated congestion at the ports.
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. Transport Fleet Optimization Fleet optimisation is one of those areas where companies leave money on the table.
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
Given these disruptions, supply chain resiliency will be a critical factor in ensuring the success of your network. Include questions about their business history, coverage area, network size, and any relevant certifications. Include technology, managed transportation capabilities, reliable capacity, and value-added services.
With gasoline prices reaching record highs , transportation managers must make smarter decisions that minimize road miles and associated costs. They enable logistics teams to identify disruptive events such as transportation roadblocks, missed incoming deliveries, asset downtime and labor shortages.
Quickly Analyze Large Data Sets : AI can process and compare vast amounts of information in real time, identifying patterns and optimizing decision-making in ways humans simply cannot. This company leverages AI and automation across multiple layers of its supply chain, including forecasting, replenishment, and transportation logistics.
There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. While it is the best system of record in the industry, the optimizer and the planning software overall is not equal to best-of-breed solutions. ” Yes, I said.
Mapping of demand streams by demand characteristics and frequent adjustment of the demand engines to improve optimization. Management and planning of the entire network against a value network strategy. Integration of corporate social responsibility metrics in planning. Tactical Supply. Focus is on a feasible plan.
TransportationNetworks and Modal Shifts A good transportation strategy is one of the best ways to reduce emissions. Through networkoptimization. Some have achieved up to 30% reduction in transportation emissions through product redesign. How to Reduce Carbon Emissions in Your Supply Chain 1.
In the current supply chain technology community, companies have focused on TMS applications, but it is no longer enough to simply integrate transportation processes and technologies in a TMS. Users should also be able to access a carrier network to find cost effective capacity when needed.
This week, at Supply Chain Insights LLC, we published our 11th report in the series titled Supply Chain Metrics That Matter. Active management of value networks and scenario planning makes a difference. When companies look at singular metrics (labor costs or inventory), they have moved backwards. Aligning metrics matters.
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.
From Tropical Storm Hilary, which dumped over a foot of rain on California in August, to Hurricane Idalia, which came aground in Florida 10 days later with windspeeds of 125 miles per hour, these disasters wreaked havoc with ports, transportation routes and carefully laid logistics plans. But most companies do end up paying in other ways.
To keep customers like my dad satisfied, RGD and Quick-commerce companies need to invest in new technologies to optimize the supply chain and logistics operations. Inventory Optimization. Inventory Optimization involves decisions about the inventory level, the location, and the mix of products. Route Optimization.
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