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Editor’s Note: This is a guest article from Laura Jelen with negotiations.com who discusses some useful tips on how companies can negotiate freight rates a bit better. Shipping costs are a significant part of the supply chain expense.
They integrate AI into demand forecasting, inventory optimization, and logistics operations to improve efficiency, reduce costs, and mitigate risks. Companies must react after the fact, often incurring higher costs and reduced service levels. AI-driven logistics optimization has resulted in faster and more cost-effective deliveries.
The 25% tariffs on Canadian and Mexican imports and 20% tariffs on Chinese goods are expected to increase production costs, disrupt logistics networks, and force companies to rethink supply chains. Vehicle production costs in the U.S. Negotiating supplier contracts for localized parts production in the U.S.
Businesses are facing greater volatility as tariff changes wreak havoc on supply chains, operational costs, and overall profitability. In addition, remaining proactive through supply chain diversification, accurate tariff classification, and strategic supplier negotiations further empowers businesses to adapt to changing trade policies.
Pledges capabilities automate the collection and exchange of shipment data from logistics suppliers to facilitate accredited and traceable emissions calculations across all transport modes, including air, inland (e.g., truck, rail, barges), and sea.
Rather than acting as a full replacement for human decision-making, AI is being implemented in targeted areas where large data volumes, repeatable processes, and pattern recognition enable meaningful gains in accuracy, speed, and cost efficiency. These systems can adjust plans mid-route in response to delays or congestion.
Knowledge Graphs are emerging as an important tool for building advanced AI capabilities. These agents can communicate, negotiate, and collaborate to solve complex problems. The risks associated with chemical manufacturing include the storage and transportation of raw materials, finished products, and waste. They must be.
Vetting 3PLs and transportation management services providers is a complex topic and shippers may not know where to begin. To find the right logistics transportation services partner for your unique business needs, shippers should consider these five crucial characteristics. . Focus on Carrier Procurement and Management.
Dive into our curated list of the top 12 blogs from 2024 that will elevate your supply chain knowledge and give you a competitive edge. However, it covers key differences between purchasing and procurement, explores common contract types, and emphasizes the importance of strategic sourcing, supplier relationships, and risk management.
What Is Strategic Sourcing? A Complete Guide Strategic sourcing is a data-driven approach to securing the best value for your organization from its strategic suppliers. It is called strategic because it replaces traditional ad hoc approaches to sourcing, which were almost entirely focused on cost savings, item by item.
Leveraging Your Bargaining Power in Logistics Service Provider Negotiations by LSCMS Shippers’ Council The logistics industry is a complex and constantly evolving ecosystem that plays a vital role in the global economy. Shippers have until quite recently been faced with a daunting challenge when it comes to negotiating with LSPs.
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 .
In logistics, simplification was supported by reducing the number of physical distribution nodes and improving the execution layer by adding a transportation management system and digitization in the form of better electronic connectivity to all partners across warehousing and transportation. Visibility also promotes this.
As businesses strive to enhance efficiency, resilience, and sustainability, the demand for skilled supply chain professionals has never been higher. This blog explores how MTSS platforms can be strategically utilized to build the competencies necessary for success in supply chain management.
New technologies revolutionizing transportation are creating tremendous opportunities but also unprecedented challenges for tire manufacturers. Supply chain optimization is essential to achieve this and can help tire manufacturing companies deliver significant reductions in supply chain costs and improvements in service levels.
SCMDOJO Academy elevates your procurement and supply chain skills through its extensive course library. Continuous learning is crucial for professionals to stay ahead of the curve and enhance their skill sets. SCMDOJO offers a diverse range of courses to cater to various learning needs. Here are 10 of their top-rated courses: 1.
Matt Silver and Joe Lynch discuss the power of partnerships in the logistics and transportation space. Matt is the VP of Strategic Partnerships with Greenscreens.ai , a technology that provides predictive pricing recommendations for maximum broker margins. Pricing that is more accurate and more likely to win profitable business.
Nick is Co-founder of Sync Logistics Training is a joint venture between Metafora + Kinetic, a Learning Management Software that gives brokerages the power to transfer years of industry knowledge to new hire employees in an engaging and effective platform. Increase speed of knowledge transfer through engagement.
GlobalTranz’s main service lines are freight brokerage – less-than-truckload and truckload – and managed transportation services. Robinson’s last quarter earnings in North American Surface Transportation, up 10.8% – which many companies would be delighted with – seem paltry in comparison. Managed Trans is Strategic.
Richard is Vice President of Strategic Accounts at Intelligent Audit , a cutting-edge logistics and supply chain technology company, dedicated to revolutionizing how businesses manage their shipping and transportation processes. Richard Perry and Joe Lynch and discuss the importance of freight bill audit.
Re-implement demand planning, trade promotion management, and revenue/price management together to improve the baseline demand signal. Initially, the output was published to procurement to design strategic buying strategies. The focus of the transportation suites was on cost mitigation and pricenegotiation.
Think of volume leverage like having a stronger negotiating position when you’re dealing with larger quantities. Here’s where it gets interesting – volume leverage isn’t just about getting better prices (though that’s certainly part of it).
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.
Joe Lynch chats with Matt Harding, CTO of Greenscreens.ai, about harnessing the power of dynamic pricing, and data analytics to optimize shipping efficiency. He has also developed trucking market intelligence consortiums and transportation products for shippers and 3PLs. About Greenscreens.ai Greenscreens.ai
Maximize Revenues and Efficiency with Automated Billing An automated billing solution benefits both customer and 3PL alike, in that it captures all billable activities performed by the 3PL, while accurately reporting charges at the rates and conditions associated with each customer’s specific negotiated contract.
He is skilled in building and leading high-performing teams that thrive on inclusion, collaboration, and engagement. Corey is also proficient in product development and management, successful contract negotiations, continuous improvements, emerging technologies, and cultivating key relationships and partnerships.
Paul Brashier is Vice President Drayage and Intermodal at ITS Logistics , a third party logistics (3PL) company that offers creative supply chain solutions with an asset-lite transportation division that ranks #21 in North America, a top-tier asset-based dedicated fleet, and a Top 12 intermodal and drayage division.
Today’s article is from Open Sky Group and highlights the need for a smarter transportation management system. In the supply chain business, just as in dodge ball, agility marked the survivors of 2020 by their ability to shift in the face of lockdowns, plummeting oil prices, and a buckling stock market. Dodge ball. Transparency.
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 reducing transportation and inventory costs, which can really add up over time. They also continuously track supplier performance.
Consider transportation, warehousing, and distribution challenges. Cost to Serve: Cost Analysis: Calculate the costs associated with serving different market segments and regions. Include distribution, logistics, marketing, and sales support costs. Plan strategies to mitigate these challenges.
Resolving these issues can require extremely delicate negotiation, or even litigation if necessary. These training programs can give your employees a deep knowledge and understanding of any relevant legal frameworks and industry-specific regulations that they need.
There are many strategic initiatives that can be undertaken to reduce lead time, from contract negotiations, supplier rationalization, vendor managed inventory options, strategic network design and numerous others. How can you better manage lead time? To read the full article, click HERE.
According to the American Trucking Association, this is happening in an industry that already faced an average annual driver turnover rate of 99% in 2013, as well as hiring and training costs that range from $3,500 to $5,000 per driver, depending on experience. Negotiate Timely Payment Schedules.
In the age of e-commerce, maintaining the status quo will result in failure, disgruntled customers and added expenses, but shippers that leverage 3PL resources to apply transportation management best practices for e-commerce , as listed below, can navigate the issues that arise in e-commerce and achieve sustained profitability.
Brad is a Principal at Third Axiom Solutions , a quick and cost-effective solution for delivering AI-based transportation analytics to your company and customers. Third Axiom’s solution was built by transportation experts to solve the industry’s specific problems in less time, and with less expense, than other solutions.
Prior to 3PLex, Benjamin advised transportation and logistics clients at Mercer Management Consulting. Prior to Mercer, Benjamin worked in his family’s transportation business, AMI, where he helped the company expand its logistics operations. Greenscreens.ai’s dynamic pricing infrastructure built to grow and protect margins.
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 cost reduction.
Being integrated in the Freightos Enterprise solution offering benchmarking capabilities in combination with different procurement events and being able to book transportation perfectly fits the overall Vision we have in SHIPSTA, but also we in Freightos are believing in.
Introduction As global supply chains evolve, ensuring cost efficiency is crucial. One way to assess the cost performance of any function within the supply chain is through Cost Performance Index (CPI). What contexts can it be used in and how, as well as the benefits of using cost performance index in supply chain contexts.
Sarah is a Shipper Sales Manager at DAT , an online marketplace that connects shippers and carriers in the transportation industry. Established in 1978, DAT established itself as the go-to source for industry trends and market intelligence for transportation brokers, carriers, shippers, news outlets, and industry analysts.
Supply chains have experienced significant disruptions in the first half of 2022, from a global pandemic to wars, rising fuel costs, and a potential recession. Passing costs onto consumers is often not viable and, in some cases, has already occurred due to supply chain shortages.
The trouble today is finding authentic pairs which also do not cost an arm and a leg. This resulted in meaningful cost savings for our last mile delivery program overall,” he added. Serota said that both sides are “spending a lot of time at the negotiating table, and I am optimistic we will hear good news soon”.
The same holds true for their impacts on varying transportation modes. rely on these three dominant transportation modes, let’s look at how capacity crunches affect them. Although LTL shipping may appear more cost-effective, it is only as good as the volume used. Since shippers in the U.S. The Big Picture.
We Assumed that Transportation Would Always Be Available And That We Just Needed to NegotiatePrice. Lane RFPs focused on cost reduction, but few asked if they had a feasible plan. Without any penalties for failure for first-pass tender acceptance, carriers and shippers have played a shell game on price.
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