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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.
Why Transformation Is a Boardroom Priority Supply chain management is now a core strategic concern for business leaders. The Shift from Cost-Cutting to Resilience For years, supply chains prioritized cost reduction over resilience. Companies that fail to integrate these technologies risk inefficiencies and higher costs.
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.
Understanding the key differences between these services can help you make a more informed decision, streamline your operations, reduce shipping costs and ultimately improve customer satisfaction. Instead, they coordinate between parties to ensure goods are transported efficiently.
Shippers that rely on imports have obviously been among the first to feel the financial strain as rising costs disrupt supply chains and profitability. Companies now must make strategic decisions regarding pricing, shipping, supply chains and overall logistics. The newly implemented 2025 U.S.
When tariffs rise, fuel prices spike or international trade agreements shift, those cause ripples across all freight modes — truck, air, rail and ocean. They offer flexible service and cost-effective pricing, especially for domestic shipments. But that speed comes at a cost — and not just financially.
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.
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 .
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.
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.
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.
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.
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.
Misaligned priorities, siloed systems, and unclear ownership can directly impact key performance indicators like cost savings percentage and procurement cycle time. When decisions for either procurement or SCM are made in isolation, organizations can miss out on cost savings, end up with excess inventory, or experience delayed deliveries.
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.
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.
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.
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.
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.
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
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. Are new cost Savings methods being investigated?
The Factory Gate Pricing (FGP) and Primary Freight (PF) strategies, as adopted by major grocery retailers, are causing a shudder up the spine of many retail suppliers. What are Factory Gate Pricing and Primary Freight strategies? The product pricing therefore becomes ex works. Now, the issue.
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.
One of the main responsibilities of this manager is to minimize the cost and maximize the effects of the company’s supply chain. Impressive Communication Skills. They have to possess the skill of articulating complex concepts in a way an outsider or a worker on a lower level can understand. Writing Skills. Tech Skills.
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.
Keeping the supply chain operation at peak efficiency requires efficient and economic transportation of goods. This all starts with an eye to detail towards the most effective transportation management practices. A Brief on Freight Classification. The shipment’s NMFC code establishes the carrier’s shipping charges.
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.
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.
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.
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.
Such activism was demonstrated in labor contract negotiations and more aggressive tactics on the part of labor unions. Labor activism in the form of labor contract negotiations among U.S. The year 2023 brought increased labor activism in the form of labor contract demands for higher wages and added benefits. Presidential election.
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