PR LOGISTICS is pleased to be able to provide you with an accurate and timely rate for the shipping of your goods.

Use the form below to send us all information pertinent to your shipment.

To insure a prompt and accurate rate, please provide us with all the following information:

 

Skip to Content

About: yamilfalcon

Recent Posts by yamilfalcon

The Role of Software in Optimizing AutoStore Performance

March 18, 2019 · By Andreas Compeer 

Automated Storage & Retrieval Systems

Automated storage and retrieval systems deliver extremely dense storage, improve productivity by supporting goods-to-person (or robot) picking, and deliver outstanding flexibility through its modular architecture.

But not every AutoStore user gets the same value out of their system.

The software that controls AutoStore makes a difference.

Here are six ways the right software can help you get the most out of AutoStore.

Extensibility

Most AutoStore control software operates as a stand-alone system outside of the primary WMS.

This can limit the ability to fully integrate AutoStore with other warehouse systems and processes and force operators to continually adapt to different user interfaces depending on what system they are supporting.

By contrast, the AutoStore Director in the SynQ WMS functions as a module within the SynQ platform.

This provides the flexibility to implement the module as a standalone control system that integrates with an existing WMS or to use SynQ as the primary WMS with AutoStore Director operating within the larger platform.

The latter option is often the best for applications where AutoStore is supporting other warehouse processes as it creates tighter integration across those processes, eliminates the need to integrate various warehouse software platforms and ensures end-to-end product visibility.

Versatility

Different AutoStore applications require different workstation configurations and not all AutoStore software is versatile enough to accommodate special business for pick-and-pass, pick-and-pack or all-in-one.

The architecture of SynQ allows for a multitude of workstation setups as well as the ability to connect conveyor systems to AutoStore to move products downstream for picking, packing and shipping.

SynQ also provides the versatility for an operator to change the bin layout or for example, switch between picking, put-away or cycle counting on the fly.

In addition, Swisslog has the expertise in house to extend AutoStore Director further, whenever required by your business.

Manageability

Warehouse control software can play a key role in AutoStore management.

For example, SynQ offers a 3D Visualizer for AutoStore that provides an overview of the system at any point in time.

SynQ also makes it easy to add business intelligence tools, such as Cockpit Manager, which provides a dashboard view of KPIs, and Availability Manager, which monitors system health.

AutoStore Automated Storage and Picking System

Performance Optimization

Optimizing the performance of AutoStore requires the ability to balance loads across workstations to maximize picks per workstation and overall system throughput. SynQ includes smart algorithms and strategies, honed over more than 130 AutoStore implementations, to intelligently orchestrate bin delivery to balance capacity and support just-in-time picking for operators picking multiple orders.  

Usability

Operators should receive exactly the information they need to pick accurately and quickly and nothing more. And, when operator interfaces are standardized across various warehouse systems training requirements are reduced, workforce flexibility increases, and operator efficiency is improved.

Because the SynQ platform supports multiple warehouse control modules, it enables the use of a universal user interface across the warehouse. Swisslog’s experience supporting AutoStore has also resulted in optimized AutoStore user interfaces that deliver exactly what operators need to pick quickly and accurately.

Support for Emerging Technologies

Item-picking robots represent an important part of the future of AutoStore. However, integrating robotic picking into an AutoStore system presents challenges from a software perspective. Processes such as cubing, order allocation, workload balancing and exception handling all need to be updated to leverage this technology. The SynQ AutoStore Director module is the first AutoStore control software to integrate robot item picking capabilities.

AutoStore continues to gain traction in the market by delivering high-density storage, outstanding application flexibility, and unrivaled reliability. But experience matters, both in how the system is configured and in the maturity of the software that controls it.

Related White Paper

Download the Paper

Optimizing Performance of the AutoStore Goods-to-Person Storage System
AutoStore continues to gain traction in the market by delivering high-density storage, outstanding application flexibility and unrivalled reliability. Download Now!

Article Topics Best Practices  Warehouse|DC  Automation Automated Storage and Retrieval System PickingSoftware Warehouse Management Systems All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

 Latest Warehouse|DC NewsSmart, Digitized Sorting and Tracking Ensures Success of Your OperationsMarch 11, 2019 ·         For all the strategy that goes into E-commerce success, ultimately it comes down to moving the right items and packages to customers quickly and efficiently.
Supply Chain Management Interest for a Cloud-Based Warehouse Management System on the RiseMarch 10, 2019 ·         The benefits of a Warehouse Management System in the cloud solves the challenges of a traditional WMS by moving the implementation, maintenance, and use of a WMS from an on-premise solution to web-based…
Take Your Business Global With a Warehouse Management SystemMarch 6, 2019 ·         A global business needs software that can meet global needs.
5 Ways to Increase Efficiency with a Warehouse Management SystemMarch 6, 2019 ·         Bill Gates once said, “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an…
 More Warehouse|DC

24|7 Pro Team Picks

Automating Transportation Procurement Leads to Sustained Savings for Carriers, Shippers and 3PLsTaking a Look at Why Amazon Is Bringing Logistics In-HouseUS Transportation Secretary Launches Council to Support Emerging Transportation TechnologyIndustry Experts Discuss the Strategic Management of Ecommerce LogisticsPreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

With more than 1,300 customers worldwide, Logility is a leading provider of collaborative supply chain optimization and advanced retail planning solutions that…

Supply Chain: Your Brexit Competitive AdvantageAs the official notification for Brexit gets closer, there are many unknowns for businesses in terms of how changes may affect them as well as…PreviousNext

24|7 Resources

Research & DownloadsThe Impacts of e-Commerce: Fulfillment Challenges and Improvement…As labor shortages, costs and productivity challenges persist, many operators are introducing…

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
Honeywell Intelligrated

Honeywell Intelligrated is a leading single-source provider of automated material…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

Industry Experts Discuss the Strategic Management of Ecommerce Logistics

March 12, 2019 · By Patrick Burnson · 

Ecommerce Logistics: Leverage New Thinking

The rapid growth of ecommerce is driving deep changes in logistics and transportation management, from tightening up trucking capacity to elevating the importance of final-mile delivery processes.

To respond, logistics managers now need to leverage diverse systems and new ways of thinking in an effort to improve carrier partnerships and increase speed and efficiency.

This month, Logistics Management rounds up three logistics and transportation thought leaders to share advice and suggest some tools that savvy managers can implement now in order to meet evolving requirements and shifting operational constraints.

Roundtable Participants:

Nick Vyas (pictured left), executive director of the Center for Global Supply Chain Management at the Marshall School of Business at the University of Southern California.

Jonathan Gold (pictured center), vice president of supply chain and Customs policy for the National Retail Federation.

Steve Osburn (pictured right), managing director at Kurt Salmon, a part of Accenture Strategy specializing in the supply chain.

Ecommerce Logistics Q&A

How is ecommerce changing the way we approach logistics/distribution network strategy?

Jonathan Gold: By eliminating the physical constraints of how much merchandise will fit into a physical store, ecommerce allows a retailer to offer a virtually unlimited selection of merchandise. However, by offering more merchandise, shippers are faced with more challenges. As retailers expand into options like selling products that are drop-shipped directly from the manufacturer to the customer or selling their products through third-party online marketplaces like eBay or Amazon, the complexity is even greater. Delivery and opening the box also take on added importance.

Steve Osburn: Indeed, ecommerce customers in the United States are becoming increasingly demanding. A recent study from Accenture Strategy found that 62% of U.S. consumers expect orders – with free shipping – to arrive within three days. Many retailers are struggling to deliver on this expectation. Therefore, rethinking inventory placement is key to gaining a competitive advantage. Networks are shifting from one or two big central distribution centers to multiple distribution centers closer to the customer allowing goods to get to them faster – which is now a key differentiator.

Nick Vyas, executive director of the Center for Global Supply Chain Management at the Marshall School of Business at the University of Southern California
“Historic tribal and domain knowledge will become obsolete and managers will have to adapt to new trends and drive network decisions in rapid ways to adapt to new environments”Nick Vyas, executive director of the Center for Global Supply Chain Management at the Marshall School of Business at the University of Southern California

Nick Vyas: Both Jonathan and Steve make good points, but also consider this: The increased demand for ecommerce and omnichannel markets has created an immense focus on last-mile delivery. As high-density population growth in Tier 1 cities and vertical residential complexes challenges the delivery of parcels to individual units within large complexes, the importance of the last 100-feet has directly increased. This consumer-driven demand has made replenishment and dynamic visibility of inventory pivotal in new network design.

Any insight on how logistics networks will change in the coming years?

Vyas: What the micro/macro trends of emerging technology in supply chains show us are that artificial intelligence, machine learning, blockchain, robotic process automation, and advanced robotics will play a crucial role in the supply chain. The data-driven intelligence will augment future supply chain leaders’ ability to make decisions and drive strategy for logistical decisions. Historic tribal and domain knowledge will become obsolete and managers will have to adapt to new trends and drive network decisions in rapid ways to adapt to new environments.

Gold: Focusing on delivery time, customer satisfaction and supply chain transparency are going to become increasingly important for retailers and brands. Our research has shown that customers not only want their online purchases delivered quickly but also insist on being able to track a package or know when it’s going to arrive.

Osburn: Agreed. Networks will become much more sophisticated. Retailers do not have enough inventory to get all SKUs close to the customer, so companies will have to differentiate SKUs by velocity and take a more thoughtful approach to distribution instead of keeping inventory all in one location.

Labor availability – from warehouse workers to truck drivers – will also continue to be an issue, driving companies to explore new technologies that enable automation. Furthermore, capacity constraints, particularly around the holidays, will continue to be a challenge. So, with all this said, logistics managers need to build flexibility into everything they do. The market is changing quickly, and networks cannot be the reason that prevents companies from keeping up.

How is ecommerce changing the way shippers approach carrier relationships?

Gold: The relationships and partnerships between shippers and carriers are becoming increasingly important. As previously noted, the ability to provide services including last-mile delivery is crucial.

Osburn: That’s right, Jon. Companies used to negotiate with shippers once every three years to five years where they would select a partner and manage the relationship. This ‘set it and forget it’ model is dead. Today, shippers need to constantly re-evaluate to ensure that the current set of partners they work with can deliver on the needs of the business and monitor projections and volumes by lane to ensure that there are no unexpected surprises.

There’s an enormous amount of talk around it, but how important is data and information to logistics professionals as they work to improve ecommerce delivery efficiency?

Jonathan Gold, vice president of supply chain and Customs policy for the National Retail Federation
“The data is incredibly important to properly plan inventory and additional resource”Jonathan Gold, vice president of supply chain and Customs policy for the NRF

Gold: Data collected through ecommerce sales is critical to help retailers plan their supply chains down to the customer level. The data is incredibly important to properly plan inventory and additional resources.

Vyas: There’s no doubt that advanced data analytics models along with predictive and prescriptive algorithms are capable of assisting resource requirements much ahead of actual demand. The challenge for ecommerce lies in the capture, synthesis, and management of the vast forms of data required to synchronize and draw various informed decisions.

Osburn: I couldn’t agree more. Data analytics, predictive technologies and increased communication up and down the chain are key. Not just within the shipper’s company, but with the shipper’s partners as well. Today and tomorrow, accurate projections are the key to success.

Now, let’s look at the downside. What are the major risks for logistics managers embracing an ecommerce strategy?

Osburn: Inflexibility is a major risk in ecommerce. There are so many unknowns because the customer is now the true driver of the workload, and flexibility is the real key to success. Companies need flexible networks that can rise to meet the high demand, but still, process low demand economically as well as a flexible workforce – something that’s becoming harder to achieve in a demand-driven environment.

Vyas: Ecommerce is so new, and we need to keep in mind that the Internet itself is nascent compared to the age-old trade systems of the past. Very little oversight from regulatory agencies has been applied, thus resulting in minimal restriction for large players. It has also become difficult for new players to viably compete in the ecommerce market due to barriers of entry. This trend will continue unless regulatory bodies or government intervention were to restrict the growth of monopoly of the market.

How is ecommerce changing the way logistics managers need to apply software and technology?

Osburn: The bottom line is simple: Technology is the glue that holds the ecommerce logistics network together. Having integrated systems is important for shippers and their partners, as is predictive technologies that can help preempt demand and returns and improve the preparedness of a company.

Has technology reached a level of maturity that certain key players such as ocean shippers, industry clearinghouses and public-private partnerships will step up and fully optimize the tools available to them?

Osburn: Yes, and there will be big rewards for those that step up. However, many of these companies are operating at full capacity and running at full speed just to keep up with current business demand. This leaves a gap for new players to develop solutions that can help solve problems that shippers are not currently focused on.

teve Osburn, managing director at Kurt Salmon, a part of Accenture Strategy specializing in the supply chain
“Tracking productivity per worker is not a new thing in the industry, but with the increased investment in automation, there’s certainly renewed focus from logistics operations”Steve Osburn, managing director at Kurt Salmon

Gold: Indeed, we’re seeing technology continuing to evolve with ecommerce. It’s important that all players in the field work together to develop seamless and interoperable standards that will work across many different platforms.

Vyas: In many instances, we’re seeing new collaborations start up between ocean players and tech, like recent announcements by IBM and Maersk and GE and the Port of Los Angeles. These are important collaborations that will drive the next generation of data visibility and integration in the supply chain. Partnerships are a low-cost way to decrease barriers of entry for organizations and companies to enter the world of technology investments and developments.

How has the growth of ecommerce affected how the market manages labor?

Gold: Finding the right labor workforce has always been a challenge for retailers, and especially so right now in time with some of the lowest unemployment levels we’ve seen in decades. Ecommerce is certainly in a similar situation as far as the needed skillset for a continually expanding workforce.

Osburn: And because the labor challenge has been present for a few years now, this is driving the need for distribution center automation. Logistics operations also have to get more creative with their hiring and retention strategies and policies.

Will logistics managers start tracking productivity per worker in order to ensure ROI for new technology and worker investments?

Osburn: Tracking productivity per worker is not a new thing in the industry, but with the increased investment in automation, there’s certainly renewed focus from logistics operations. Activities such as training time required, machine downtime and shift ramp-up/ramp-down inside warehouse and DC operation are being managed much more closely.

Vyas: As Steve mentions, productivity tracking has already been in place for decades. New emergent technology and tracking activity software aim to further trace data increments to granular levels for productivity and quality of automatic processing. However, the ROI on new productivity tracking may be blue sky potential, because logistics operations face many more intrinsic problems such as seasonal labor.

As we wrap up, any thoughts about a sudden surge in ecommerce demand?

Vyas: Yes, and glad we’re ending this discussion with this question. During peak season, shippers become heavily reliant on seasonal labor, most of which is not well-trained or invested in the organization – thus high turnover and lack of morale become the linchpin of the shipper’s human resources dilemmas.

Though seasonal laborers do their best in each given situation, the workforce is untrained. Therefore, even if with sophisticated productivity tracking systems, they both have nothing to lose and very little to gain. Even if technology becomes more robust, the seasonality of demand creates a conundrum for itself.

Related: Ecommerce Logistics Leader Series, part 1 of 2 Navigating Ecommerce with Your Existing Supply Chain Relationships & Capabilities

Navigating Ecommerce with Your Existing Supply Chain Relationships & Capabilities

Related Resources

Download the Paper

Ecommerce Logistics Leader Series New!
Co-written by Adrian Gonzalez and Mike Glodziak, this ecommerce logistics leader series describes how you can get to market faster, by leveraging your existing network, resources, and relationships to their fullest potential as well as how you can use logistics as a competitive weapon. Download Now!


Download the Paper

International Transportation: Price Matters, But At What Cost?
This ebook is a comprehensive guide to international transportation, that will help logistics managers better evaluate and plan their; supply chain strategy, logistics infrastructure, and risk mitigation strategy. Download Now!


Download the Guide

Keeping Up with the Retail Consumer
6 supply chain disciplines retailers must master – developed by Adrian Gonzalez, founder and president of Adelante SCM and LEGACY Supply Chain Services, with a foreword from Rick Blasgen, president and CEO, CSCMP. Download Now!


Download the Paper

Rapidly Improve the Performance of Your Warehouse
The Rapid Performance Evaluation identifies opportunities and potential improvements in every aspect of warehouse operations; performance, productivity, service, quality, and systems. Download Now!


Download the Paper

Creating Superior Customer Experiences through an Optimized Supply Chain
This paper describes in detail the Jagged Peak ACES model and how it can be used as a methodology for measuring each element of the order lifecycle and its impact on customer experience. Download Now!


Download the Paper

Why Outsource Your Direct-to-Customer eCommerce Channel?
To better focus on their core competencies, more and more manufacturers recognize that outsourcing is an effective and economical way to manage their direct-to-customer (D2C) eCommerce channel. Download Now!


More LEGACY Supply Chain Services Resources

Article Topics Best Practices  Transportation  Transportation Management Ecommerce Omnichannel Retail All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Reviewmagazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at pburnson@peerlessmedia.com. Latest Transportation News4 Signs you Need a Transportation Management System for Parcel ShippingMarch 11, 2019 ·         A TMS can help you improve parcel shipping while controlling your costs.
2019 Outlook for Parcel ShippingMarch 7, 2019 ·         Consumers will Continue to expect fast, reliable delivery.
Simplifying Product Returns for Retailers, Etailers, and Consumers Using SEKO Logistics’ OmniReturnsMarch 6, 2019 ·         Chicago-based third-party logistics provider SEKO Logistics has launched a new OmniReturns service that improves cost and visibility for online etailers and retailers and aims to encourage satisfied consumers…
C.H. Robinson’s Acquisition of The Space Group Helps Boost its Global Forwarding ExpansionMarch 5, 2019 ·         C.H. Robinson continues to expand its global network with its announcement of the acquisition of The Space Cargo Group, a leading provider of international freight forwarding, customs brokerage, and other…
 More Transportation

24|7 Pro Team Picks

UPS Freight President Rich McArdle Discusses LTL Pricing, Regulations, Transportation InfrastructureDaylight Transport Sees Network Investment and Less-Than-Truckload Technologies as Keys to SuccessRetailers Urge Congress to Pass Tariff Relief Legislation | Tariffs Cost US $2.7 Billion per MonthEcommerce & Logistics Firms Dominate Largest Warehouse Deals in 2018PreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

Nulogy’s cloud-based Agile Customization Platform allows consumer brands to respond with ease and speed to a volatile retail and consumer environment while…

Building Strategic Partnerships Across North AmericaMenasha chose Nulogy’s Agile Customization Platform to standardize its operations and replace the differing systems being used across multiple…PreviousNext

24|7 Resources

Research & Downloads2018 Women in Supply Chain SurveyAWESOME and Gartner, have collaborated on research that sheds light on and tracks progress…

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
Honeywell Intelligrated

Honeywell Intelligrated is a leading single-source provider of automated material…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

UPS Freight President Rich McArdle Discusses LTL Pricing, Regulations, Transportation Infrastructure

March 5, 2019 · By Jeff Berman · 

Q&A: UPS Freight President Rich McArdle

Logistics Management’s Jeff Berman recently caught up with UPS Freight President Rich McArdle on a wide variety of topics, including LTL pricing, regulations, and what needs to happen to improve transportation infrastructure.

A transcript of their conversation follows below.

How do you view the general state of the freight economy as it relates to the general economy and on a macroeconomic basis?

The beginning point for that question is that it is all about trade, as it relates to uncertainty over trade policy.

What we feel from a macro perspective, whether it is our freight business or small package business, we will have a better idea by the end of this quarter about some clean direction between the U.S. and China on trade policy.

The forecasts have gotten softer for things like exports and GDP across major economies, and it largely goes back to the uncertainty over trade policy.

What about things from a freight perspective?

Beyond trade, as things relate to freight and freight hauling, things look really good for continued growth in the manufacturing and construction sectors.

The first quarter may end up being a little softer than a year ago, but we are expecting some growth.

How do you view the current state of the LTL market, as it relates to volumes, capacity, and other things?

There is some variability in terms of how the year has started off.

When the weather was fraught a few weeks back, it was unprecedented for many Less-than-Truckload (LTL) carriers, in our case having to close operations in Minnesota, Wisconsin, Chicago, and other places.

And the recent news regarding New England Motor Freight(NEMF) created some variability in regards to how things would settle.

Putting variability aside, things are somewhat stable. We do see the growth in the industry where we thought it would be. We are not in a concerned position; we see the growth and we see some stability.

Regarding NEMF, a lot of carriers, especially their direct competitors, want to secure NEMF’s capacity, which accounted for around 1% of the LTL market, but industry people say that is easier said than done, due to tight capacity and there not being enough drivers. That said, how would you describe that situation, as it relates to securing that capacity?

In the Northeast corridor, it has a much bigger impact where they ship.

The LTL sector is made up of many carriers and many shippers that are customers and dual-source with a variety of LTL carriers.

I think what we are all seeing is a bump certainly with shippers coming to us now, as they lost that option with NEMF.

Read the Article: What Can Shippers Learn From the New England Motor Freight Bankruptcy Filing?

There is also the opportunity for business we never had to look into. We are not alone in that space; our competitors are doing the same thing.

Those carriers that have capacity in the Northeast are going to have an opportunity to absorb the capacity that NEMF can no longer carry.

How do you view the current state of LTL pricing and rates?

Like last year, things are stable. LTL general rate increases (GRI) also came a little earlier this year than last year, with everyone seeming to be landing in that same space, in terms of published rate increases.

Things are stable and consistent with what we thought based off what the market did last year and what we think it will do this year.

How far out is the LTL sector from turning to dimensional pricing?

The general belief is that it (dimensional pricing) is still several years away from any type of widespread adoption. It is not because carriers don’t want it.

There have been significant investments we have made, as well as many in the industry have, for dimensional machines. Those investments are laying the foundation for the transition to dimensional pricing to happen sooner than later but it is hard to say exactly when.

Carriers are doing things to incentivize customers to go to dimensional pricing and density-based rating. We are moving in that direction, and we know the industry is moving in that direction.

What are some of the things that have you optimistic about 2019, not just from a pricing perspective but also from a freight matching perspective, too?

I think there is a general sentiment, as it relates to pricing, that shippers with the right freight, or freight that matches up well with an LTL carrier’s network, are more likely to get a better rate, whereas shippers’ freight that does not match up well may need to be renegotiated rate-wise.

That interaction will continue this year as well. As carriers like UPS Freight look deeper and deeper into how freight is flowing through our network, where the opportunities are, and where the capacity is and is not, we are also thinking about it in terms of how dynamic it is.

We are looking at our data a little bit deeper and closer, and that is one of the things all of the [LTL] carriers are doing. This is managed through where the opportunities are. This is not the approach for one region; it is for the entire country.

How do you view the possibility, or chances, of Twin 33-foot trailers getting the green light to get on the nation’s highways? What type of production and efficiency gains would Twin 33s bring to the LTL sector?

As for where this is going, there are still headwinds we are facing, for this issue, within the industry. When you break the industry down between LTL and truckload, those headwinds vanish, given the [arguments] on both sides.

There are headwinds outside the industry, with the railroads, for example, being very concerned about Twin 33s. About a year ago, Michael Ducker (former CEO of FedEx Freight) and I both supported Twin 33s in a Wall Street Journal opinion editorial, and we will continue to make this one of the things we push for in making it a very easy way to reduce some of the congestion on the roads without adding safety concerns.

Adding five feet to trailers brings more stability. There is a 10-mile per hour difference when you are on the road. So if you are in a car passing a twin-33 versus a twin-28, with a 10-mile per hour differential, it takes less than one second, 0.7 seconds, to do so.

We are going to continue to push for it, and we need more than the 20 states that allow it right now. We are looking for a nationwide network solution, and are continuing, for now, on a patchwork solution, which is state by state by state.

Shifting gears to transportation infrastructure, there continue to be the same challenges, especially when it comes to funding and a viable plan, or model, to move forward. What, in your opinion, needs to happen to move things along on this front?

At a high level, the Highway Trust Fund (HTF) is really the bridge to the future in how we how we have to ensure we fund and pay for infrastructure.

We absolutely agree it should be a user fee or user go type of system. Something immediate has to be done as to how we fund the HTF, as just last year the HTF spent $55.2 billion and only collected $43.4 billion, leaving $11.8 billion coming out of the U.S. general fund.

Watch Video (top-right): Rich McArdle address the House Transportation and Infrastructure Committee

That means that the general fund is not doing the things it is supposed to be doing because it is bailing out the HTF. Those numbers are only going to get bigger as time goes on. Over the last ten years, the HTF has borrowed $144 billion from the general fund.

The key thing is the most immediate, as it costs a penny on the dollar to administer and won’t add a dime to the deficit and shores up the HTF and stops drawing down from the general fund. We need to raise the federal gasoline tax and make that happen right now.

What about other possible funding sources, aside from raising the gas tax?

We are not opposed to the vehicle miles tax (VMT), but it is not ready for prime time. You would need to register about 280 million vehicles, with around half of them being U.S. taxpayers.

A foundation needs to be built for this, and it needs to be tested and looked at…as there are privacy issues that need to be addressed. And they need to test the evasion rates, as people will look for ways to avoid it or get around it.

The next highway bill needs to have a placeholder for VMT and the HTF needs to be indexed, otherwise, future generations will be facing the same situation.

Looking at cross-border freight, USMCA, or the new NAFTA, still has a bit to go before becoming official. Do you think it represents an improvement over NAFTA and what are the potential impacts for UPS Freight, in terms of its cross-border business?

One of the differences is that United States-Mexico-Canada Agreement (USMCA) addresses ecommerce and digital concerns that were not around back in the 1990s. It is a more modern Customs policy, which is so important.

We view this as a positive. It is not the physical crossing the border that is the barrier, as much as it is the paperwork and the Customs processing.

In this day and age, when data can be harnessed and transferred and evaluated, long before goods can ever get to the border, it is very exciting where this new policy can go.

We think it is going to take some costs and complexity out of the freight between the U.S., Mexico, and Canada so we view this as a positive.

What, in your opinion, has the tax reform legislation done to help UPS Freight and, by extension, the LTL and trucking sector, in general?

What we have seen is that it has created an opportunity to grow within the U.S. economy, and we are seeing an economy that continues to move forward.

It is helping all companies, not just UPS, with free cash flow. Businesses of all sizes are able to reinvest in themselves and create opportunities. It has been a positive for us and our customers.

The current state of trucking regulations is not as “hectic” as it has been in the past, it seems. That said, which ones are you keeping a close eye on?

We were supportive of Electronic Logging Devices (ELD). We would like to see the truck size and weight move beyond a patchwork approach, with a nationwide twin-33s effort.

UPS Freight is working with the ATA on an effort to lower the Commercial Driver’s License (CDL) from 21 years old to 18 years old. There are 48 states that allow a CDL at the age of 18, but cannot drive over the state line. There is a program out there targeting veterans that have been trained to operate this type of equipment to have under 21-year-old drivers move interstate commerce.

We are at the table and hope to see some language from the House and Senate to help support a younger interstate driving age. But it is not just a change in age.

There is a tremendous amount of training that comes with it, as well as miles traveled and travel times monitored. This could help to alleviate the driver shortage situation and create opportunities for younger men and women.

How does UPS Freight view the last-mile logistics sector? Does the company plan to expand its presence within that space?

We certainly see the trajectory continuing with more demand coming from consumers for more and more products outside of the normal parcel size to be delivered to them.

We are focused on growing our B2B business, but, at the same time, have invested in our existing network and our assets and to provide those last mile services and will continue to do that.

Read THE FUTURE OF DELIVERY: Walmart CEO Marc Lore’s Vision

We are doing it more quietly than others are right now, but we agree that is where the industry is going. UPS has the ability to develop or has solutions that both our small parcel-type customers and LTL customers are using.

Can you touch upon how UPS Freight leverages intermodal and how it views that market?

We still have a strong relationship with all the large Class I railroads and services have gotten better.

They want to hear what our challenges are, and they want to work with us and want to provide strong service.

They are a key partner for UPS small package and UPS Freight.

Related Article: Daylight Transport Sees Network Investment and Less-Than-Truckload Technologies as Keys to Success

Daylight Transport Sees Network Investment and Less-Than-Truckload Technologies as Keys to Success

Achieving Transportation Excellence by Focusing on Daily Improvement

In this white paper white paper, you will learn a strategic approach to managing operations and applying an OGSM (Objectives, Goals, Strategies, and Measurements) model.

Download Achieving Transportation Excellence by Focusing on Daily Improvement

Download the White Paper: Achieving Transportation Excellence by Focusing on Daily Improvement

Article Topics Trends  Transportation  Transportation Management Infrastructure Plan Less-than-TruckloadTransportation Regulations All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics ManagementModern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman Latest Transportation NewsC.H. Robinson’s Acquisition of The Space Group Help’s Boost its Global Forwarding ExpansionMarch 5, 2019 ·         C.H. Robinson continues to expand its global network with its announcement of the acquisition of The Space Cargo Group, a leading provider of international freight forwarding, customs brokerage, and other…
UPS Freight President Rich McArdle Discusses LTL Pricing, Regulations, Transportation InfrastructureMarch 5, 2019 ·         Logistics Management’s Jeff Berman recently caught up with UPS Freight President Rich McArdle on a wide variety of topics, including LTL pricing, regulations, and what needs to happen to improve transportation…
Daylight Transport Sees Network Investment and Less-Than-Truckload Technologies as Keys to SuccessMarch 1, 2019 ·         Daylight Transport, an expedited, domestic less-than-truckload carrier servicing the long-haul industry, discusses how it is investing in transportation technologies to provide unique and valuable services…
Danny Slaton: A Lifetime of Less-than-Truckload TechnologyMarch 1, 2019 ·         During his 34 years at SMC³, Danny Slaton was lucky enough to experience seismic shifts in the logistics and supply chain industry – first on the front lines of the computerization of the supply chain…
 More Transportation

24|7 Pro Team Picks

AVETTA & BROWZ Merge to Form One of the World’s Leading Providers of Supply Chain Risk ManagementFedEx Unveils Future Autonomous Delivery RobotSelecting Software for Supply Chain Network Design Doesn’t Have To Be DifficultUS Retailers Receive Some Good News on Trump Easing China Trade Tariff TensionsPreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

Landstar’s network of independent agents and transportation capacity providers offers greater flexibility and a local presence that has a global reach. The…

Landstar Hauls Heavy/Specialized FreightFrom the statue of Abraham Lincoln, a batmobile replica, a viking ship, and a sculpture of Marilyn Monroe… Landstar is called to transport…PreviousNext

24|7 Resources

Research & DownloadsThe State & Driving Forces of the WMS MarketIn this white paper, you’ll learn about the state of the warehouse management systems…

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
SEKO Logistics

SEKO provides complete Supply Chain Solutions, specializing in transportation,…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

Retailers Urge Congress to Pass Tariff Relief Legislation | Tariffs Cost US $2.7 Billion per Month

February 28, 2019 · By 24/7 Staff · 

Excluding Tariffs on $200 Billion Worth of Chinese Imports

The National Retail Federation called on Congress to pass legislation introduced today that would require that a process is established to exclude some items from the Trump administration’s tariffs on $200 billion worth of Chinese imports.

“We are encouraged by the progress made between the United States and China, but tariffs are still taking a toll on hardworking Americans across the country,” NRF Senior Vice President for Government Relations David French said.

“Establishing a timely and efficient tariff exclusion process is the least Washington can do for American businesses that have no alternative supplier and for working families that rely on everyday products. We are grateful for the bipartisan, bicameral leadership of Senators Lankford and Coons and Representatives Kind and Walorski, and we urge Congress to move swiftly in approving this commonsense legislation.”

The first two lists of tariffs on Chinese imports, imposed last summer under Section 301 of the Trade Act of 1974, included exclusion processes, allowing American importers to apply for tariff relief.

However, the third list, which took effect last September and targeted $200 billion of Chinese goods, including many consumer products, does not have an exclusion process.

The Import Tax Relief Act, introduced today by Senators James Lankford, R-Okla., and Chris Coons, D-Del., and Representatives Ron J. Kind, D-Wis., and Jackie Walorski, R-Ind., would require the administration to provide an exclusion process for the third tariff list and any future tariffs under Section 301.

Under the legislation, exclusions would be required to be granted for imports that have no commercial availability outside of China, those for which a tariff would cause an increase in consumer prices for low- and middle-income families, and those that do not directly benefit from China’s non-market policies, including elements of its “Made in China 2025” program. 

According to data released by Tariffs Hurt the Heartland – a campaign backed by NRF – recent tariffs imposed by the administration cost U.S. businesses $2.7 billion in November 2018 alone.

Tariffs Hurt the Heartland

Tariffs Hurt the Heartland, a nationwide campaign against recent tariffs on American businesses, farmers and consumers, today released new data that shows American businesses paid an additional $2.7 billion in tariffs in November 2018 – the most recent month data is available from the U.S. Census Bureau due to the government shutdown.

This figure reflects the additional tariffs levied because of the administration’s actions and represents a $2.7 billion tax increase and a massive year-over-year increase from $375 million in tariffs on the same products in November 2017.

The historic tax increases come despite overall imports being slightly lower. The data, compiled by Trade Partnership, also shows that U.S. export growth hit its lowest level of 2018 in November, thanks in part to a 37 percent decline in exports of products facing retaliatory tariffs.

“This data shows that Americans, not our foreign competitors, are the big losers in the trade war,” Tariffs Hurt the Heartland Spokesman and former Congressman Charles Boustany said.

“U.S. businesses are being hit by a double whammy of historic tax increases in the form of tariffs and declining exports as farmers and manufacturers lose opportunities in the overseas markets they rely on for their livelihoods. As U.S.-China trade talks resume, we hope the administration will heed the concerns of the thousands of American companies facing unprecedented tariff costs while making further progress toward an improved trading relationship and an end to the trade war. The proposed March 1 tariff increase should be completely off the table as American businesses are already facing billions more in tariffs every month.”

The November 2018 data shows that retaliatory tariffs, in particular, have had an immediate and severe effect on US exports. In November 2018, US exports of products subject to retaliatory tariffs declined by $4.1 billion, or 37 percent, from the previous year.

Export Growth on Products Targeted For Retaliation Nosedives

Export Growth on Products Targeted For Retaliation Nosedives

Other key takeaways from the November data:

  • Despite $426 million in monthly steel import tariffs and the Trump administration targeting even allies like Canada and Mexico with tariffs, steel imports actually INCREASED in November 2018. 
  • China Section 301 tariffs cost American companies approximately $2.1 billion in November. Products subject to the Section 301 remedies faced $2.5 billion in tariffs in October, compared to just $363 million in November 2017. Tariffs on most of these products could rise from 10 percent to 25 percent unless the U.S. and China reach a deal in the coming weeks.

Source: Tariffs Hurt the Heartland

Related Article: ​US Retailers Receive Some Good News on Trump Easing China Trade Tariff Tensions

Related Paper

Download the White Paper

How to Mitigate the Fallout of International Trade Relations New!
As global trade evolves further and newer tariffs come to the fore, procurement teams need to be mindful that complacency comes at high costs. Waiting to react to a policy change or delaying technology implementation can have serious implications for organizations engaging in cross-border trade.Download Now!

Article Topics Trends  Supply Chain  Global Trade Avetta Tariffs All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

 Latest Supply Chain NewsRetailers Urge Congress to Pass Tariff Relief Legislation | Tariffs Cost US $2.7 Billion per MonthFebruary 28, 2019 ·         As President Trump claims that billions are flowing into Treasury from tariffs, new data shows it’s coming from American companies – The National Retail Federation is calling on Congress to pass legislation…
AVETTA & BROWZ Merge to Form One of the World’s Leading Providers of Supply Chain Risk ManagementFebruary 28, 2019 ·         Avetta and Browz, two providers of SaaS-based supply chain risk management software, have merged forming a formidable combined company focused on delivering the best in supply chain risk management services,…
Selecting Software for Supply Chain Network Design Doesn’t Have To Be DifficultFebruary 27, 2019 ·         Network design as a discipline is complex and most organizations struggle to answer network design questions or test hypotheses in weeks, let alone days, and certainly not hours, but it doesn’t have to…
US Retailers Receive Some Good News on Trump Easing China Trade Tariff TensionsFebruary 27, 2019 ·         The Retail Industry Leaders Association, the National Retail Association, and the Association for Supply Chain Management welcomed President Trump’s decision to delay the March 1st China tariff hike on…
 More Supply Chain

24|7 Pro Team Picks

Ecommerce & Logistics Firms Dominate Largest Warehouse Deals in 2018AVETTA & BROWZ Merge to Form One of the World’s Leading Providers of Supply Chain Risk ManagementFedEx Unveils Future Autonomous Delivery RobotSelecting Software for Supply Chain Network Design Doesn’t Have To Be DifficultUS Retailers Receive Some Good News on Trump Easing China Trade Tariff TensionsWhat Can Shippers Learn From the New England Motor Freight Bankruptcy Filing?Providing a Digital Solution for the Truckload Capacity CrisisReducing Supply Chain Complexity & Reverse Logistics with a Single-Use $29 TrackerPreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

Nulogy’s cloud-based Agile Customization Platform allows consumer brands to respond with ease and speed to a volatile retail and consumer environment while…

Building Strategic Partnerships Across North AmericaMenasha chose Nulogy’s Agile Customization Platform to standardize its operations and replace the differing systems being used across multiple…

DMLogic helps clients reach the highest levels of productivity and efficiency within the four walls of the warehouse from design to implementation to support.…

Implementing a Serialization Project Post DSCSAThese 3 papers; Implementing a Serialization Project Post DSCSA, Fighting Counterfeit Drugs, and Customer Success Stories, detail both what to…PreviousNext

24|7 Resources

Research & DownloadsHow to Mitigate the Fallout of International Trade RelationsThis paper describes how the tariff wars can be credited for having achieved one thing:…

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
Transplace

Transplace is a non-asset, North America-based third party logistics (3PL) provider…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

AVETTA & BROWZ Merge to Form One of the World’s Leading Providers of Supply Chain Risk Management

February 28, 2019 · By 24/7 Staff · 

AVETTA & BROWZ Merger

Avetta and BROWZ, two leading providers of SaaS-based supply chain risk management software, have announced they have combined to form a new, market-leading organization focused on delivering the best in supply chain risk management services to companies worldwide.

The transaction further solidifies Avetta’s position as a world-class organization, innovator and thought leader, expanding the company’s global network to 85,000 customers in over 100 countries in the fast-growing $14 billion global marketplace for supply chain risk management solutions.

Avetta and BROWZ combine more than three decades of experience in making industries safer, more sustainable and compliant by vetting and qualifying the suppliers that support their global clients.

Avetta and BROWZ’s 450 combined clients include blue-chip companies in industry verticals such as energy, chemicals, manufacturing, utilities, construction materials, facilities management, communications, transportation, logistics & retail, mining, aerospace & defense and food & beverage.

Better Visibility into Supply Chain Risks

These industry leaders require better visibility into supply chain risks, such as workplace health & safety, sustainability, modern slavery, data privacy, anti-bribery & corruption, regulatory and insurance compliance.

Together, the companies’ market-leading technology platform and products strengthen sustainable connections between clients and suppliers, while streamlining and simplifying the engagement process for both parties.

Avetta and BROWZ share a common vision of putting customers first and a belief that the solutions offered to their clients should be configurable to address the specific needs and requirements of their client base across industries and geographies.

John Herr, CEO of Avetta
“Companies within our network significantly outperform industry averages in safety and sustainability statistics”John Herr, CEO of Avetta

John Herr, CEO of Avetta, will lead the combined company, which will retain the Avetta name. Mr. Herr stated;

“Together, Avetta and BROWZ create a simplified supplier management solution designed to elevate safety and sustainability in workplaces around the world. The streamlining of solutions in this market sector is one of the most common requests we hear from the customers we serve. Our customers will be delighted to learn about the benefits this combined global network will create for them. Our combined expertise of 30+ years in the industry will help both clients and suppliers achieve the highest standards of quality and safety.”

Reducing the Risk of Workplace Accidents

Of utmost importance, Herr added, is the role Avetta’s solutions play in reducing the risk of workplace accidents.

“Companies within our network significantly outperform industry averages in safety and sustainability statistics. We are proud of the social and economic impact we have created through the promotion of safe and sustainable workplaces and mitigation of environmental risks. We help our clients make informed sourcing decisions to create safer work environments. That, in turn, helps people get home safely to their families at night.”

According to Tom Cecich, past president of the American Society of Safety Professionals, “The use of technology-based prequalification tools such as those provided through Avetta and BROWZ is a proven way to mitigate risk, save money and drive safety and sustainability outcomes that are nearly impossible to achieve with an in-house, manual process. The combination of these two great companies makes the decision to use a third-party safety platform simpler and easier.”

Peter Sturm, past president of the Canadian Society of Safety Engineering and leading industry expert in health, safety and risk consulting, added, “Avetta’s supplier qualification platform has long been an industry leader in helping great organizations manage the risk in their supply chains. They have made a positive difference in achieving safer workplaces in Canada. The addition of BROWZ will make them even stronger.”

Elaine Beitler, CEO of BROWZ
“Our industry was created to provide a simpler process for managing supply chain risk”Elaine Beitler, CEO of BROWZ

Elaine Beitler, CEO of BROWZ, said, “BROWZ joining Avetta will strengthen and enhance capabilities for BROWZ’s customers and employees. Our industry was created to provide a simpler process for managing supply chain risk.”

“This combination furthers our ability to provide an easier way for suppliers to share their compliance information, and a simpler, larger network for our customers. We will bring our technical expertise and customer service excellence to lead the industry at Avetta. This is a great combination, and we’re very excited about the future.”

According to Val Hale, executive director of the Governor’s Office of Economic Development for the State of Utah, “It is exciting to have two of the world’s most innovative supply chain risk management software companies unite in Utah’s Silicon Slopes. Utah’s business-friendly climate has allowed Avetta to flourish, and in return, its success has elevated the state’s technology industry. Headquartered here in Utah, this innovative company continues to save lives and prevent workplace accidents.”

Merger Financing

The combination was financed through investments by Avetta’s three major shareholders: Welsh, Carson, Anderson & Stowe (WCAS), who remains the majority owner; Technology Crossover Ventures (TCV); and, Norwest Venture Partners (NVP). BROWZ’s existing shareholders, Melkonian Capital, and Long Ridge Equity Partners are rolling over a portion of their investment into the combined company.

Christopher Hooper, General Partner at WCAS, said, “We believe this strategic combination of Avetta and BROWZ allows both organizations to better serve their global blue-chip clients and the expansive network of over 85,000 suppliers and contractors. We and our fellow institutional investors are all highly supportive of the Company’s ambitions to bring technology and software to bear to improve safety, sustainability and compliance outcomes across industries and geographies.”

Related Article: The Emerging Business of Supply Chain Risk Management

The Emerging Business of Supply Chain Risk Management

Related White Papers

Download the Paper

Preparing Your Workplace for Cannabis
The increasing legal and social acceptance of cannabis raises thorny questions about work safety, impairment, and use on premises, learn about upcoming developments and some ways you can prepare your supply chain for the changes. Download Now!


Download the Paper

Why Risk Management Needs to Be a Key Initiative
Contractor verification is a win-win process for both you and the contractors you employee, and it’s essential in effective supply chain risk management. Download Now!


Download the Paper

Four Steps to Building a Global Chain Risk Management Platform
In this white paper from Avetta, you’ll learn the keys to successfully managing your supply chain, protecting it against avoidable situations, and recovering from unforeseen disasters. Download Now!


More Avetta Resources

Article Topics Trends  Supply Chain  Risk Management Software as a Service All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

 Latest Supply Chain NewsAVETTA & BROWZ Merge to Form One of the World’s Leading Providers of Supply Chain Risk ManagementFebruary 28, 2019 ·         Avetta and Browz, two providers of SaaS-based supply chain risk management software, have merged forming a formidable combined company focused on delivering the best in supply chain risk management services,…
Selecting Software for Supply Chain Network Design Doesn’t Have To Be DifficultFebruary 27, 2019 ·         Network design as a discipline is complex and most organizations struggle to answer network design questions or test hypotheses in weeks, let alone days, and certainly not hours, but it doesn’t have to…
US Retailers Receive Some Good News on Trump Easing China Trade Tariff TensionsFebruary 27, 2019 ·         The Retail Industry Leaders Association, the National Retail Association, and the Association for Supply Chain Management welcomed President Trump’s decision to delay the March 1st China tariff hike on…
Reducing Supply Chain Complexity & Reverse Logistics with a Single-Use $29 TrackerFebruary 26, 2019 ·         Tive, Inc., a leading provider of in-transit supply chain tracking solutions, has announced the release of its new real-time visibility tracker product: the Tive Solo™.
 More Supply Chain

24|7 Pro Team Picks

Providing a Digital Solution for the Truckload Capacity CrisisReducing Supply Chain Complexity & Reverse Logistics with a Single-Use $29 TrackerHow Blockchain Data Will Help Truckers Stay HOS Compliant and Remain CompetitiveStamps.com Ends Exclusive Partnership with US Postal ServicePreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

With its 35 years of global leadership as an original design manufacturer, Advantech iLogistics

In-Vehicle Management & Logistics System: Stability, Flexibility, Ease of UseThis case study paper details how Advantech-DLoG helped build the required high-quality in-vehicle management systems for SPAR, one of the leading…PreviousNext

24|7 Resources

Research & DownloadsNulogy’s Agile Customization Ecosystem ToolsFind out how you can manage your external supply chain with Nulogy’s agility platform.

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
SICK

SICK is a leading manufacturer…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

US Retailers Receive Some Good News on Trump Easing China Trade Tariff Tensions

February 27, 2019 · By Patrick Burnson · 

Shippers Express Relief

As the Retail Industry Leaders Association (RILA) convenes this week for its annual Retail Supply Chain Conference, shippers expressed relief that President Trump has called for a delay for increasing tariffs on Chinese Goods.

Had the President made good on his threat, as much as $200 billion in Chinese imports would have gone into effect on March 1st.

“We commend the President’s decision to delay the tariff increase on thousands of everyday products that millions of American families want and need. These ongoing negotiations have been hanging over America’s retailers causing uncertainty throughout our supply chain” said Hun Quach, vice president of international trade for RILA

“The President has made the right decision to delay the tariff increase on $200 billion worth of goods. We look forward to continuing our work with Congress and the Administration to quickly find a path forward that removes all tariffs on everyday consumer products.”

National Retail Federation

The same sentiment was also expressed by the National Retail Federation’s President and CEO Matthew Shay this week.

The National Retail Federation issued the following statement from Matthew Shay after the administration delayed a tariff increase on Chinese goods set to take effect this week.

“We welcome the progress made between the U.S. and China and commend the administration for its efforts to address unfair trading practices. The decision to avoid a tariff hike is a positive development, and we encourage the administration to build on this momentum and reach a resolution that will eliminate uncertainty for American businesses and consumers. We look forward to continued progress and an agreement that will end tariffs and achieve a more fair and balanced trading relationship.”

According to data released by Tariffs Hurt the Heartland – a campaign backed by NRF – recent tariffs imposed by the administration cost U.S. businesses $2.7 billion in November 2018 alone. Tariffs Hurt the Heartland also released a report prepared by Trade Partnership that found American workers would lose nearly one million U.S. jobs if tariffs on $200 billion of Chinese imports increased from 10 to 25 percent.

Read: NRF on the Current State of Ecommerce Supply Chains

Avoid Hard Hits from Tariffs and Global Volatility

Christine Barnhart, Director of Industry Solutions Strategy, Manufacturing and Supply Chain at Infor wrote on behalf of APICS, that global economics can sideline any company that’s unprepared for aggressive competition and drastic shifts in pricing.

Christine Barnhart, Director of Industry Solutions Strategy, Manufacturing and Supply Chain at Infor
“Even when the current political hailstorm subsides, the global landscape will still be subject to dramatic shifts”Christine Barnhart, Director of Industry Solutions Strategy, Manufacturing and Supply Chain at Infor

Even long-standing networks are starting to crack under pressure, as manufacturers, distributors, top brands and retailers struggle to grasp the impact of these pressures on their business models. It is more important than ever for organizations to prioritize supply chain agility and adapt to make changes as quickly and effectively as possible.

In a recent study, two-thirds of economists surveyed reported that trade tensions or tariffs are the biggest risks to their economic growth forecasts. Some companies plan to pass increased costs to customers, whether they are consumers or other businesses. Some are considering possible design changes, evolving product specs or rerouting resources through different suppliers.

As companies react, a domino effect builds momentum, bringing more and more companies into the disruption. Consequently, predicting outcomes becomes more difficult.

Even when the current political hailstorm subsides, the global landscape will still be subject to dramatic shifts. Population migration, consumer trends, regulations, resource availability, and innovations will cause large-scale fluctuations. Continuous change is the new normal. Companies that want to play in the global arena need to rewrite their playbooks.

Resilience requires out-of-the-box thinking and problem-solving. Technology can support this innovative approach. As products today tend to be highly complex, with computerized components and subassemblies coming from multiple countries, the big picture can include multiple partners and suppliers, adding to the need for well-thought-out strategies.

Modern solutions, such as predictive analytics and artificial intelligence, help make sense of multi-tiered networks and what-if scenarios. Careful planning ensures elements converge in the right place at the right time, so highly personalized customer orders can be fulfilled as needed.

Proactive Responses

Fortunately, supply chain planning and execution technologies have made huge strides in the last decade. Software providers have begun applying cloud computing, big data, business intelligence, machine learning, predictive analytics, and artificial intelligence to solutions. Such tools can help optimize inventory, meet customer demands, identify patterns and spot early warning signs of potential problems – before it is too late.

Abe Eshkenazi, the chief executive officer of the Association for Supply Chain Management
“Any new tariffs can create challenges for companies that engage in global trade”Abe Eshkenazi, the chief executive officer of the Association for Supply Chain Management

Analytics must look to the past, as well as the future, to enable companies to predict likely outcomes. This requires a unified system that underpins the entire network, providing a digital connection for collaboration and strategic planning.

When all parties in a supply chain are plugged in, information that was once locked away in data vaults can be accessed and consumed. Updates from the outer nodes of the network are made in the system and are instantly reflected in this virtual depiction of reality.

Data that falls outside of established parameters can alert users to issues or automate responses, such as putting a hold on a payment to a supplier that misses agreed-upon delivery dates.

Supply chain systems can process data from weather forecasts and automatically adjust expected delivery dates, calculate fines for late delivery or notify carriers of changes that need to be made to logistics contracts. Workflows can be created that push data to users, aiding in decision-making.

Previous solutions and possible alternative scenarios can be presented in dashboard-like views. Because the user experience is highly intuitive, even recently on-boarded personnel can play an active role in strategic execution.

A Window Into The Future

The current political storm is shining a spotlight on the importance of modern supply chain planning and execution solutions. Volatility is not going away, even when political conflicts are resolved.

Supply chain success will require network-like connectivity that engages all parties. Customers, carriers, third-party logistics providers, banks and suppliers all benefit from visibility and windows into the future.

Sharing data, while protecting the security and intellectual property, is essential when working in a global landscape and forging new relationships.

A Complex Global Trade Market

Association for Supply Chain Management

Abe Eshkenazi, the chief executive officer of the Association for Supply Chain Management (ASCM), formerly APICS writes that any new tariffs can create challenges for companies that engage in global trade.

For supply chain managers, this will increase the complexity of global trade management, which the APICS Dictionary defines as;

“The management and optimization of shipments across international borders to improve operating efficiencies and cash flows; includes ensuring compliance with all international regulations and documentation and streamlining and accelerating the movement of goods.”

The APICS Certified in Logistics, Transportation and Distribution (CLTD) designation program helps professionals prepare for the nuanced world of global trade.

APICS CLTD content includes global logistics considerations, which emphasizes an understanding of customs clearing and documentation requirements as well as how free and foreign trade zones influence duties paid and total landed costs.

Coordinating these international trade elements is an essential skill set for today’s logistics professionals.

Related Article: Defining Industries for the Global Supply Chain Economy

Defining Industries for the Global Supply Chain Economy

Supply Chain Management: Beyond the Horizon White Papers

Download the eBook

Managing the Complexity Paradigm
This paper offers insight into managing supply chain and product complexity by providing background into the complexity’s sources, a framework for understanding its drivers, and methods to manage it  Download Now!


Download the Paper

Supply Chain Issues: What’s Keeping Supply Chain Managers Awake at Night?
Although some of the themes presented in this paper may not be surprising, it is valuable to note that the executives interviewed, who represented more than 50 different firms, shared a common perspective about issues disrupting their businesses. Download Now!


Download the Paper

Creating Value Through Procurement and Sourcing Efforts in Integrated Supply Chains
As part of the ongoing collaboration between Michigan State University’s Eli Broad College of Business and APICS Supply Chain Council, the Beyond the Horizon research project is investigating how the supply chain management discipline is evolving into the future. Download Now!


Download the Paper

Realizing Supply Chain Success
This white paper presents initial research insights from the Beyond the Horizons project and introduces a conceptual model, named the bridge model, which can guide supply chain strategy development and decision making. Download Now!


More Resources from APICS

Article Topics Trends  Supply Chain  Global Trade APICS China Retail Tariffs All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Reviewmagazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at pburnson@peerlessmedia.com. Latest Supply Chain NewsUS Retailers Receive Some Good News on Trump Easing China Trade Tariff TensionsFebruary 27, 2019 ·         The Retail Industry Leaders Association, the National Retail Association, and the Association for Supply Chain Management welcomed President Trump’s decision to delay the March 1st China tariff hike on…
Reducing Supply Chain Complexity & Reverse Logistics with a Single-Use $29 TrackerFebruary 26, 2019 ·         Tive, Inc., a leading provider of in-transit supply chain tracking solutions, has announced the release of its new real-time visibility tracker product: the Tive Solo™.
Do More Global Shipping with Less Work by Implementing Blockchain Resources & TechnologiesFebruary 25, 2019 ·         When you think about all the players involved in a single shipment’s journey, it is really no wonder how often there are issues and inconsistencies in the supply chain, however, shipping on the blockchain…
Full-Scale Supply Chain Solution for Large Canadian RetailerFebruary 20, 2019 ·         One of Canada’s largest retailers partnered with LEGACY Supply Chain Services to develop a full-scale, custom supply chain solution – supporting the client’s growth and enabling rapid expansion into…
 More Supply Chain

24|7 Pro Team Picks

What Can Shippers Learn From the New England Motor Freight Bankruptcy Filing?Providing a Digital Solution for the Truckload Capacity CrisisReducing Supply Chain Complexity & Reverse Logistics with a Single-Use $29 TrackerHow Blockchain Data Will Help Truckers Stay HOS Compliant and Remain CompetitivePreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

PINC is the number-one provider of yard management system, finished vehicle logistics solutions, and aerial inventory robotics (drones) to the world’s leading…

The Rise of the Digital YardIn this white paper we explore the rise of the digital yard and show how technology is enabling significant efficiencies, productivity gains,…PreviousNext

24|7 Resources

Research & DownloadsNulogy’s Agile Customization Ecosystem ToolsFind out how you can manage your external supply chain with Nulogy’s agility platform.

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
SICK

SICK is a leading manufacturer…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

Reducing Supply Chain Complexity & Reverse Logistics with a Single-Use $29 Tracker

February 26, 2019 · By 24/7 Staff · 

The Tive Solo™

The Tive Solo is a low-cost single-use tracker which provides real-time visibility across the supply chain while eliminating reverse logistics challenges. 

For manufacturers and shippers who rely on Tive to maintain end-to-end visibility into their in-transit goods, the Solo is a great solution to reduce hassles associated with return logistics.

The Tive Solo measures temperature every fifteen minutes, reports that data together with the shipment location every hour, and offers a dependable 30-day battery life.

Tive provides sensor and software solutions that allow supply chain managers to track and analyze the location and condition of their shipments in real time.

The company’s proprietary long-lasting sensors use cellular connectivity to shed light on the in-transit location and condition of shipments.

Supply chain managers access this data and analysis through the Tive software platform, where they can set up custom alerts like ETA warnings, temperature deviations, or geofences.

They can also use the Tive API to pull data into external Supply Chain Management (SCM), Transportation Management System (TMS), or Enterprise Resouce Planning (ERP) systems, and gather insights into their supply chain like never before.

Single-Use Tracker

Tive’s newly developed single-use tracker is sold for a one-time fee of $29 per tracker.

All Tive tracker packages include unlimited access to the software platform, data, and customer support.

This newly developed single-use tracker never has to be returned, so it’s perfect for last-mile deliveries to destinations where collecting and returning trackers would be difficult.

In addition to reducing operational complexity and reverse logistics with single-use trackers, Tive is committed to sustainability, offering a rebate program that encourages and rewards the return of single-use trackers to Tive for recycling.

“With our new Tive Solo tracker, we have significantly lowered costs and eliminated the complex return logistics associated with many tracking solutions,” said Tive CEO and Founder Krenar Komoni.

“As Tive continues to grow our product offerings and simplify implementation, we are committed to ensuring a smooth, seamless supply chain visibility experience for our customers.”

If you’re interested in learning more, request a trial with Tive and get started with the Tive Solo right away.

Request a Trial

About Tive

Tive helps companies achieve real-time in-transit visibility of their goods around the globe. Our clients include Fortune 500 shippers and logistics providers that work with us to track and monitor the condition of their goods-in-transit. Over time, proprietary data generated by our sensors allows our clients to proactively optimize their shipments, improve their customers’ experience, and unlock supply chain insights that they would not otherwise be able to access. Based in Cambridge, Tive is backed by Accomplice, NextView, Bolt, and Hyperplane.

Related Article: How the Internet of Things & Big Data Are Accelerating Supply Chain Management

How the Internet of Things & Big Data Are Accelerating Supply Chain Management

Related White Papers

Download the Paper

Beyond Visibility: How to Build a Supply Chain That Thinks
This white paper details how end-to-end visibility will bring about a cognitive, predictive and digital supply chain, in which the flow of goods, resources, and people are mapped by an equivalent flow of information. Download Now!


Download the Paper

The Digital Supply Chain: Meeting Rising Expectations in the Age of Amazon
This white paper details how manufacturers must leverage new technologies to develop a digital supply chain, in which real-time tracking and advanced analytics enable end-to-end optimization and an all-around superior customer experience. Download Now!


Download the Paper

Data Loggers vs. IoT Enabled Real-Time Services for Supply Chain Visibility
Learn how to optimize your supply chain processes and eliminate inefficiencies with the help of supply chain visibility solutions and cargo tracking and monitoring. Download Now!


Download the Paper

How Enterprise Sensor Integration Is Enabling the Internet of Things
This white paper details how Tapestry Solutions, Inc. has addressed the IoT challenges with its Enterprise Sensor Integration (ESI) technology, ESI is an innovative integration platform that connects disparate sensor technologies. Download Now!


MoreSupply Chain Visibility

Article Topics Best Practices  Supply Chain  Supply Chain Optimization Last Mile Delivery Supply Chain Visibility All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

 Latest Supply Chain NewsDo More Global Shipping with Less Work by Implementing Blockchain Resources & TechnologiesFebruary 25, 2019 ·         When you think about all the players involved in a single shipment’s journey, it is really no wonder how often there are issues and inconsistencies in the supply chain, however, shipping on the blockchain…
Full-Scale Supply Chain Solution for Large Canadian RetailerFebruary 20, 2019 ·         One of Canada’s largest retailers partnered with LEGACY Supply Chain Services to develop a full-scale, custom supply chain solution – supporting the client’s growth and enabling rapid expansion into…
National Retail Federation on the Current State of Ecommerce Supply ChainsFebruary 18, 2019 ·         Jonathan Gold, Vice President, Supply Chain and Customs Policy for the National Retail Federation shares his insights and observations on how ecommerce is changing the way we approach logistics and distribution.
Reconfiguring Nanostore Retail Supply Chains to Combat the Nutritional Food DesertFebruary 13, 2019 ·         Urban populations in emerging economies often buy their nutritional food supplies, called food deserts, from small, mom-and-pop retailers called nanostores, a nanostore is defined as a small, family-owned…
 More Supply Chain

24|7 Pro Team Picks

What Can Shippers Learn From the New England Motor Freight Bankruptcy Filing?National Retail Federation on the Current State of Ecommerce Supply ChainsFedEx Surprises Wall Street with Resignation of President & COO David J. BronczekImpact of Automation & Artificial Intelligence on the WorkforcePreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

Landstar’s network of independent agents and transportation capacity providers offers greater flexibility and a local presence that has a global reach. The…

Landstar Hauls Heavy/Specialized FreightFrom the statue of Abraham Lincoln, a batmobile replica, a viking ship, and a sculpture of Marilyn Monroe… Landstar is called to transport…PreviousNext

24|7 Resources

Research & DownloadsShipChain | INTELLIGENT. DECENTRALIZED. SECURE.This whitepaper describes how the blockchain can improve the transportation of commodities…

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
Saddle Creek Logistics Services

Saddle Creek is an omnichannel supply chain solutions company providing a variety…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

Stamps.com Ends Exclusive Partnership with US Postal Service

February 22, 2019 · By 24/7 Staff · 

Ending Exclusive Partnership

As reported by MarketWatch, Stamps.com Inc. revealed Thursday afternoon that it is ending its partnership with the U.S. Postal Service, helping to explain a disappointing forecast provided earlier that sent shares plunging.

The explanation did not help, as shares continued to dive and were recently down nearly 48% in after-hours trading.

“We will no longer be exclusive to the USPS and that’s non-negotiable,” Chief Executive Kenneth McBride said of demands his company made in negotiations to renew their revenue-sharing agreement.

“The USPS has not agreed to accept these terms or any other terms of our partnership proposal. So at this point, we’ve decided to discontinue our shipping partnership with the USPS so that we can fully embrace partnerships with other carriers who we think will be well-positioned to win in the shipping business in the next five years.”

McBride later stressed that Stamps.com will still be able to sell stamps. “Note that our decision to discontinue our exclusive partnership with the USPS does not in any way impact our regulatory relationship with them or the products and services we are able to offer our customers.”

McBride further stressed that the move is an effort to service other carriers such as FedExUPS and Amazon.com Inc.

Stamps.com Stock Plunges 50%

Bloomberg reports that Stamps.com Inc. forecast full-year profit that was nearly half of the average of analysts’ estimates, as it ended a crucial partnership with the U.S. Postal Service.

Shares plunged over 50 percent in post-market trade.

The company (Stamps.com) said the discontinuation will result in some short term pain, and now expects 2019 adjusted profit to be in the range of $5.15 to $6.15 per share, while analysts had estimated earnings of $10.79 per share for the year.

Revenue forecast also disappointed, with Stamps expecting a range of about $540 million to $570 million, compared to analysts’ estimate of $689 million, according to data compiled by Bloomberg.

Related: How A Multi-Carrier Parcel Shipping System Can Help You Combat Rising Distribution Costs

How A Multi-Carrier Parcel Shipping System Can Help You Combat Rising Distribution Costs

Related White Papers

Download the Paper

The Other Half of Your Net Landed Cost of Goods
This educational paper highlights ways to reduce your net landed cost of goods, by revisiting your company’s CoD costs, find out how you can get better control by focusing on common areas of cost overages. Download Now!


Download the Paper

Wholesale Marine Streamlines and Accelerates Order Fulfillment
Wholesale Marine utilizes dimensional pricing software to eliminate costs and reduce labor-intensive processes. Download Now!


Download the Paper

Reduce Shipping Costs with a Transportation Management Execution System
Transportation Management Execution Systems can evaluate all aspects of a shipper’s business to help increase savings and performance. Download Now!


Download the Paper

Seven Practical Tips to Eliminate Hidden Shipping Costs
Many companies have significantly reduced their shipping costs by implementing a multi-carrier shipping solution that allows them to compare carrier rates and automate document production, however, you can realize even greater savings by ensuring that your shipping system is configured to pre-empt many common issues that result in hidden freight costs. Download Now!


More Shipping Resources from Logistyx Technologies

Article Topics Trends  Warehouse|DC  Packaging & Labeling Shipping USPS All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

 Latest Warehouse|DC NewsBrexit Impact on Distribution, Warehousing & Supply ChainsFebruary 21, 2019 ·         We’re all sick of hearing about it, but for business leaders, warehousing and distribution operational managers, Brexit is posing tough questions and threatens to derail many supply chains.
Advantages of Using Automation Technology on Manned ForkliftsFebruary 21, 2019 ·         How automation technologies can improve operating efficiency and reduce collisions on manned forklifts.
Boost Efficiency in your Retail Distribution Center with RFIDFebruary 20, 2019 ·         RFID technology offers a long list of proven benefits to retailers seeking to enhance their supply chain.
Impact of Automation & Artificial Intelligence on the WorkforceFebruary 15, 2019 ·         A new Brookings report forecasts automation’s sizable impacts on the American workforce through 2030, the authors find demographic and geographic variation in susceptibility throughout the United States…
 More Warehouse|DC

24|7 Pro Team Picks

The Evolution of In-Vehicle Management & Logistics SystemsFull-Scale Supply Chain Solution for Large Canadian RetailerWhat Can Shippers Learn From the New England Motor Freight Bankruptcy Filing?National Retail Federation on the Current State of Ecommerce Supply ChainsFedEx Surprises Wall Street with Resignation of President & COO David J. BronczekImpact of Automation & Artificial Intelligence on the WorkforceCMA CGM Reiterates Commitment to Acquiring CEVA LogisticsC.H. Robinson Announces Bob Biesterfeld to Replace John Wiehoff as CEOPreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

In Swisslog’s Americas region, we share a passion for designing, developing and delivering logistics automation systems and software that drive customer…

Optimizing Performance of the AutoStore Goods-to-Person Storage SystemAutoStore continues to gain traction in the market by delivering high-density storage, outstanding application flexibility and unrivalled reliability.PreviousNext

24|7 Resources

Research & DownloadsIn-Vehicle Management & Logistics System: Stability, Flexibility,…This case study paper details how Advantech-DLoG helped build the required high-quality…

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
ShipLilly

Shipping your goods around the globe doesn’t have to be complicated or expensive.…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

Full-Scale Supply Chain Solution for Large Canadian Retailer

ebruary 20, 2019 · By 24/7 Staff · 

Retail Customer Portfolio

One of Canada’s largest retailers has been on a consistent growth and expansion path for nearly 100 years.

The company’s portfolio includes many of the country’s top retail, grocery and private label brands, and they proudly employ over 200,000 people across their expansive retail network. (for purposes of this client success story, this large Canadian retail client will be referred to as LRC.)

LRC was faced with an opportunity to expand into new market sectors, including apparel, general merchandise and ultimately into the online shopping world.

They needed a partner to add value in their dynamic supply chain and provide scalable solutions to help support their growth and expansion objectives.

The client sought LEGACY based on strength of the relationship with their vendor network and proven ability to service other well-known companies in the retail space.

Ultimately the third-party logistics (3PL) partner selection was driven by LEGACY’s expertise in developing supply chain solutions, combined with system enablers as it relates to a warehouse management systems (WMS) platform, order management, back end infrastructure, and integration.

New Expansion Opportunities

LRC was a long-standing expert in the grocery business and was looking to expand for the first time into new markets.

Supply Chain Engineering

At the time, they were not equipped to serve market growth with their existing distribution network, technological systems, labor model & transportation network.

The seasonality of retail also created challenges. LRC needed a supply chain focused third-party logistics provider to partner and grow with.

Overcoming Supply Chain Challenges: Speed to Market, Technology & People

Systems & Technology Limitations: LRC’s technology environment did not allow for multidimensional SKU inventory management, or the ability to reserve & allocate inventory to individual store locations – ultimately limiting their ability to enter the rapidly growing online fulfillment arena of retail.

Exceeding Performance

Distribution Network: Existing facility locations were not optimized either geographically or within each facility operationally to service this new market growth. A high level of network redundancy existed due to the utilization of satellite distribution locations.

Non-optimized Labor Model: this retailer’s labor model was not equipped to expand & contract in alignment with the seasonal demands of the new market. A need for a more flexible, scalable, & cost-effective model was required to support expansion.

Collaborative Retail Solution

LEGACY took a highly collaborative & consultative approach to build a full-scale supply chain solution – including network design & facility location engineering, systems & technology, labor optimization and eventually eCommerce enablement.

LEGACY leveraged its experience in the high volume, fast-moving Retail & Consumer Package Goods (CPG) supply chain segments to create value and support the client’s aggressive path for growth and expansion into new markets.

Developing a Customized Retail Supply Chain Solution

Capital investments – Real Estate & Infrastructure: Existing distribution centers within the network had to be redesigned to accommodate new product lines. A network study was conducted that resulted in a realignment of regional DCs, and overall network consolidation.

Technology Investment: LEGACY invested heavily in a custom technology solution designed around LRC’s dynamic retail business. The WMS solution integrated seamlessly with the client’s ERP to provide real-time inventory visibility, and support accounting & invoicing process requirements.

The solution provided automated shipping mode optimization and also integrated with couriers & postal services to provide shipment in-transit visibility, reducing costs and enabling efficient order fulfillment.

Labor Optimization: LEGACY’s labor solution included a flexible labor model with cross-trained personnel that can be redeployed in alignment with the seasonality of volume, as well as across product lines.

Transportation Consolidation: Rapid market growth had created an enlarged transportation network and multiple distribution sites, as a result, stores would receive several shipments per day including vendor direct deliveries.

Transportation synergies were created by consolidating inbound deliveries to store locations. This new collaborative design consolidated LRC’s distribution & transportation network, reducing the number of deliveries and labor handling requirements at the store level.

Planning & Forecasting: Marketing and promotional programs were incorporated to allow for proactive planning. The solution was developed with both the client’s supply chain and business units in an effort to support business strategy as it related to product release (dates, times), along with corporate marketing and promotional events.

Communication: LEGACY’s solution starts with mirroring & alignment across all levels of the client’s business. LEGACY’s President, VP of Operations, General Managers & Supervisors – all are involved in developing & implementing solutions, as well as being actively engaged in managing the business at all levels.

Omni-Channel Logistics Leaders: Top 5 Inventory Insights

A collaborative monthly business review was instituted to ensure on-going dialogue between customer & 3PL leadership on all critical areas of the business, including:

  • Operational metrics performance (quality, service, productivity, inventory)
  • Financial metrics performance
  • People & culture indicators
  • Continuous improvement & cost-out project decks
  • Safety & compliance performance
  • Planning initiatives: including upcoming promotions & forecasting

Value & Results

Speed-to-Shelf = Sales Performance: The client was able to establish brand recognition and superior sales with the support of the LEGACY supply chain solution, ultimately becoming one of the top brand names in Canada.

The improved speed-to-shelf performance allowed LRC to achieve better in stock positioning in stores, thus improving sales and overall product visibility among consumers.

Cost Reduction: Client was able to drive down carrying costs by reducing on-hand inventory requirements for approximately 10,000 individual SKUs. DC network realignment and removal of redundancy resulted in the reduction of the overall footprint by ~20% – significantly lowering real estate, labor and operating cost structures in their network.

Technology Enablement = Increased Efficiency: As a result of technology enablement, enhanced operational processes, and labor optimization – the client has seen marked improvement across many levels of their supply chain.

New Market Opportunity: Ecommerce Fulfillment

6 years into the relationship, LRC approached LEGACY to partner with them to help scale the rapidly growing online segment of their business. Much like the initial expansion into new markets, the client was looking for a partner to develop the custom technology & operational platform to support their online business expansion.

Reducing Cost Per Case

Technology Enablement: LEGACY developed a custom ecommerce fulfillment solution, which integrated with client’s back-end inventory management and front-end online storefront.

This integrated solution provided real-time product availability to the online consumer while allowing LRC to meet the ever-tightening service level requirements faced by online retailers today.

Enhancement of Existing Distribution Operation: the beauty of the eCommerce fulfillment solution was that it was able to be developed within the existing framework of LRC’s network. No new locations were required, nor were massive investments in equipment & infrastructure.

While the technology solution solved new challenges the client faced around visibility & service – LEGACY’s deep knowledge of their brick and mortar retail business & supply chain network proved invaluable through the expansion into online order fulfillment.

Building eComm service requirements into existing operations allowed the client to increase the efficiency at which inventory was deployed across online and in-store delivery channels while existing integration with major courier and postal services further enabled eComm fulfillment success.

In addition to the successful expansion into the online shopping world – the client has since implemented many LEGACY operational best practices into other DC’s in their North American network, including enhanced flow and reverse pick processes.

The true testament to the successful 10 years plus partnership between LRC and LEGACY can be summed up in a quote from LRC’s VP of Operations;

“When we engage in new areas & markets, LEGACY is partnered to bring forth the solution expertise, development and ultimately execution.”

Related Article: How to Manage Warehouse Inventory and Drive Efficiency Across the Supply Chain

How to Manage Warehouse Inventory and Drive Efficiency Across the Supply Chain

Related Retail Papers

Download the Guide

Keeping Up with the Retail Consumer
6 supply chain disciplines retailers must master – developed by Adrian Gonzalez, founder and president of Adelante SCM and LEGACY Supply Chain Services, with a foreword from Rick Blasgen, president and CEO, CSCMP. Download Now!


Download the Paper

Evolving a Large U.S. Retailer from Good to Great
LEGACY executed a comprehensive startup project plan to fully transition operational control of LSR Inland Empire operations, discover how this solution was executed with zero disruption to the business. Download Now!


Download the Paper

Omni-Channel Logistics Leaders: Top 5 Inventory Insights
This research paper provides several valuable insights ranging from current challenges & best practices, characteristics of companies considered high performers, and opportunities for improvement from companies lower on the omnichannel performance curve. Download Now!


More LEGACY Supply Chain Services Resources

Article Topics Best Practices  Supply Chain  Retail Ecommerce Omnichannel Supply Chain Solutions All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

 Latest Supply Chain NewsNational Retail Federation on the Current State of Ecommerce Supply ChainsFebruary 18, 2019 ·         Jonathan Gold, Vice President, Supply Chain and Customs Policy for the National Retail Federation shares his insights and observations on how ecommerce is changing the way we approach logistics and distribution.
Full-Scale Supply Chain Solution for Large Canadian RetailerFebruary 18, 2019 ·         One of Canada’s largest retailers partnered with LEGACY Supply Chain Services to develop a full-scale, custom supply chain solution – supporting the client’s growth and enabling rapid expansion into…
Reconfiguring Nanostore Retail Supply Chains to Combat the Nutritional Food DesertFebruary 13, 2019 ·         Urban populations in emerging economies often buy their nutritional food supplies, called food deserts, from small, mom-and-pop retailers called nanostores, a nanostore is defined as a small, family-owned…
Navigating the Complex Regulatory Environment within Healthcare & Pharma PackagingFebruary 11, 2019 ·         A survey by the Contract Packaging Association revealed that 70% of contract packaging and contract manufacturing companies are concerned that the regulatory environment could negatively impact business…
 More Supply Chain

24|7 Pro Team Picks

National Retail Federation on the Current State of Ecommerce Supply ChainsFedEx Surprises Wall Street with Resignation of President & COO David J. BronczekImpact of Automation & Artificial Intelligence on the WorkforceCMA CGM Reiterates Commitment to Acquiring CEVA LogisticsPreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

Zebra offers technologies that give a virtual voice to an organization’s assets, people and transactions, enabling organizations to unlock greater business…

DHL Supply Chain Streamlines Warehouse Operations with High-Quality Thermal LabelsDHL Supply Chain’s strategic labeling initiative streamlines ordering, optimizes printer performance and virtually eliminates chargebacks.PreviousNext

24|7 Resources

Research & DownloadsHow Logistics Technology Will Shape Shipping in 2019This white paper, How Technology in Logistics will Shape Shipping in 2019, is a must-read…

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
ShipStation

ShipStation is a web-based ecommerce shipping platform that will streamline and…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

What Can Shippers Learn From the New England Motor Freight Bankruptcy Filing?

February 19, 2019 · By Adam Robinson 

Bankruptcy Filing

New England Motor Freight (NEMF), the 19th-largest LTL carrier in the U.S., filed for bankruptcy on February 11, 2019.

The filing opens Pandora’s Box to LTL carriers. NEMF cited the “severe driver shortage,” as a primary driving force in the filing, but according to William B. Cassidy, Senior Editor at the Journal of Commerce, real reasons lie below the surface.

The company simply could not fulfill its obligations, resulting from banks’ refusal to extend credit to the 101-year-old Less-than-Truckload (LTL) carrier.

The filing will have significant implications for carriers and shippers seeking to escape the NEMF bankruptcy maelstrom. In my analytics-driven mind, I see several critical issues in the filing that shippers and carriers need to consider in redeveloping shipping strategies in a post-NEMF era.

What Exactly Caused the NEMF Bankruptcy?

The NEMF bankruptcy is the result of the severe driver shortage and inability to meet financial obligations.

Now, the driver shortage is an odd topic. Yes, it exists, but it is not merely due to a lack of qualified drivers.

Often, the causes of the shortage go back to pay rates and working conditions. If drivers’ needs are not met, the effect is a capacity shortfall. There are instances where a lack of qualified drivers does exist, but better pay and conditions are the key factor attracting, hiring, and retaining drivers.

Since NEMF cites the shortage as a reason for bankruptcy, as well as inability to pay the bills, truckers at the company may have been feeling the effects of low pay and poor working conditions for a while.

Of course, the HOS regulations and ELD mandate also placed a financial burden on the company and its drivers. There’s not a definite answer yet, but that’s what initial filing and reports suggest to me.

Peering Into the Vortex Created by the Filing

The NEMF bankruptcy filing created a vortex in the LTL industry. This is on the heels of the Teamsters-UPS LTL shutdown, pending a union contract, from Q4 last year. The LTL market is unstable at best, and seeing a carrier with more than $402 million in annual revenue fail is going to have a lasting change on the market.

LTL Carriers Are Not Too Big to Fail

William Cassidy brought to a light an issue in reviewing the NEMF bankruptcy filing; how many carriers are struggling with the same financial problem as NEMF? The answer is uncertain, but one thing is clear. Carriers are not too big to fail, and even those with an established network and a century of experience will face trouble at some point. The instability creates an elevated risk for shippers, especially as e-commerce expands.

Deficit Ratings Are Now Under a Bigger Microscope

The LTL industry suffers from a problem of deficit ratings. Fragile carrier-shipper relationships lead carriers to accept “bad” freight, meaning freight that is not worth the time and costs to ship. In addition, carriers rate freight to provide shippers with the lowest costs, even if it comes at the expense of carrier efficiency and profitability.

The bankruptcy filing alludes to carriers that will be on the lookout for excess deficit ratings, so the cost of shipping LTL may increase for shippers. Instead of trying to give shippers the best rate by rounding up weight classes, they will be more likely to bill based on actual weight or dimensional weight. This could be a similar practice that led to NEMF’s demise.

Spot LTL Freight Rates Will Soar

The immediate reduction in freight capacity following NEMF bankruptcy will spur increases for LTL spot rates. Shippers will pay higher costs for spot rates, and in response, more shippers will look to negotiate contracts with carriers and avoid the added spot rate charges.

Download the White Paper

At the same time, the decrease in available capacity will result in additional refusals from existing carriers for spot freight, especially those that were prior NEMF shippers.

Carriers May Charge a Premium to NEMF Shippers

The demand following NEMF’s departure will also affect NEMF shippers in an additional way. Carriers may charge premiums to NEMF shippers to fulfill their freight needs.

At the same time, NEMF still has three weeks to get shipments out. Therefore, freight could be stuck in the supply chain, waiting on NEMF, and shippers may not have the available freight to fulfill new contractual obligations. In other words, the NEMF bankruptcy will require shippers to eat the cost of freight in transit with NEMF right now, recouping the cost upon delivery and moving to a new carrier.

NEMF May Help Other Carriers Hire Drivers, Increase Fleet Size and Fill the Sinkhole

The bankruptcy filing will also affect other carriers. Laid-off drivers and employees will be ready and willing to work for other carriers. More drivers will give carriers an advantage in augmenting capacity, and as NEMF liquidates its assets, fleet size will increase for carriers that purchase trucks and trailers.

Such actions will be good news for shippers, hoping to secure new capacity with other carriers. Unfortunately, the delay in hiring means any growth of carrier capacity from NEMF-liquidated assets and terminated drivers will not affect shipping rates for several weeks, if not months.

Pandora’s Box Is Open to Shippers; Only a Diverse Army Can Defeat It

Like the story of old, Pandora’s Box cannot be closed. The only hope lies in overcoming the challenges and effects released from its opening; the same is correct following the NEMF bankruptcy.

As an industry, we must work together to absorb the loss of this 100-year-old company. As shippers, we must diversify our carrier network and relationships.

As 3PLs, we must expand our horizons to offer more value and encourage shippers and carriers to work together. A diverse supply chain is the only thing strong enough to defeat the contents of Pandora’s Box in LTL shipping.

Related Article: State of Logistics Industry: Recent Reports Indicate Logistics to Excel in 2019 in Key Ways

State of Logistics Industry: Recent Reports Indicate Logistics to Excel in 2019 in Key Ways

Related Less-than-Truckload White Papers

Download the White Paper

How Logistics Technology Will Shape Shipping in 2019 New!
This white paper, How Technology in Logistics will Shape Shipping in 2019, is a must-read for shippers looking to improve their shipping practices & reduce costs.Download Now!


Download the White Paper

The Evolution of LTL Shipping Best Practices New!
This exclusive, & educational white paper is for shippers who are accustomed to shipping LTL freight or are starting to ship more LTL freight, it addresses capacity woes, use of last-mile delivery, and how to choose the right LTL carrier.Download Now!


Download the White Paper

Current Factors Driving the Less Than Truckload Pricing Market New!
This white paper is a must-read for shippers who are seeking information on the less than truckload pricing market in order to plan for 2019.Download Now!


More Resources on Shipping

Article Topics Best Practices  Transportation  Transportation Management Less-than-Truckload Shipping All topics

Comments Be the first to post a comment. 
You must be logged in to post a comment. Login

 Latest Transportation NewsWhat Can Shippers Learn From the New England Motor Freight Bankruptcy Filing?February 19, 2019 ·         The recent New England Motor Freight bankruptcy filing, along with ten related entities, has opened a Pandora’s Box to Less-than-Truckload carriers – the only thing strong enough to defeat the contents…
As Amazon Air Expands, UPS, FedEx, USPS Could Lose OutFebruary 19, 2019 ·         With Amazon handling up to 26% of its own shipping, FedEx, UPS and the U.S. Postal Service are losing a significant portion of Amazon’s logistics and delivery business.
How Landstar’s Pricing Tools Serves Agents and CustomersFebruary 18, 2019 ·         Promoting efficiency and increasing productivity with Landstar’s new technology.
CMA CGM Reiterates Commitment to Acquiring CEVA LogisticsFebruary 13, 2019 ·         CMA CGM is aiming for Ceva Logistics to break even this year, said its finance chief this week, as the French shipping group opened a share offer to cement its control of the Swiss freight specialist.
 More Transportation

24|7 Pro Team Picks

Reconfiguring Nanostore Retail Supply Chains to Combat the Nutritional Food DesertNavigating the Complex Regulatory Environment within Healthcare & Pharma PackagingThe Logistics of Canadian eCommerceUsing a Single Third-Party Logistics Provider to Support Worldwide Supply Chain OperationsPreviousNext

NextGen Supply Chain Conference

Attend the premier educational conference that answers the question “What’s next in supply chain management?” NGSC is dedicated to preparing executives for the coming technologies that will have the most transformative effects on business. Learn more or register.This year’s
conference focuses onRoboticsArtificial
IntelligenceBig DataSave
the date!April 16-17at the landmark
Chicago Athletic Associationin Chicago

24|7 Company Profiles

We are driven by our customers, people and our commitment to quality in every part of our business.  We excel at listening to your challenges and turning…

Transportation Solution for High Value and Time Sensitive ProductsSephora, a premier national cosmetics chain, was in need of a reliable, flexible and secure transportation solution for the delivery of its high…PreviousNext

24|7 Resources

Research & DownloadsHow Logistics Technology Will Shape Shipping in 2019This white paper, How Technology in Logistics will Shape Shipping in 2019, is a must-read…

Special CoverageSpecial:
Autonomous Vehicles
Autonomous vehicles have great potential for improving existing, high-demand transportation services, moving everything from passengers to packages. While most attention is focused on cars and…

Company ProfilesCompany Profile:
ShipStation

ShipStation is a web-based ecommerce shipping platform that will streamline and…

Photos & MediaSATO Launches Next-gen IoT Mobile PrinterNew rugged mobile combines high speed and expandability optimized for retail, logistics and more.

0 Continue Reading →

 

Recent Comments by yamilfalcon

    No comments by yamilfalcon