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Cost to Serve: The measurement of cost factors that go into the servicing of a customer, or the production of a product. For companies involved in shipping freight, the combination of order-level management and cost to serve analysis can be a game-changer.
Efficiency begets costs savings, and let's be honest, we are all looking for ways to do that! A thorough analysis of Design for Manufacture and Assembly (DFMA) is just one tactic you can use to find success within the constructs of the chain. We wanted to see if DFMA could aid in other ways to save on total costs in the supply chain.
Carriers in the trucking industry and also shippers today are actively looking for ways to combat the rising costs of operating their businesses, but they often do not fully understand proper benchmarking, transportation costanalysis, and profit management are intertwined. Driver wages represent 26% of costs.
A thorough analysis provided by the Council of Supply Chain Management Professionals , (CSCMP) in its “ State of Logistics ” report, indicates that by 2017, shippers in the U.S. Noel Perry, economist and trucking industry expert, predicts a reduction in the nation’s trucking force by 700,000 drivers.
Speaker: Brian Dooley, Director SC Navigator, AIMMS, and Paul van Nierop, Supply Chain Planning Specialist, AIMMS
Want to build your internal capability, reducecosts and make better decisions? You may have recently had M&A activity, about to roll out a new product line or need to cutcosts. When you finally have the analysis, everything has changed, and it is no longer relevant. It's easier than you think.
Patrick gives us some insight into workplace efficiency and how to reduce waste. . The lean concept, itself, is a strategy created to simplify, organize and optimize a working environment. Targeting Workplace Efficiency and Reducing Waste . Any cuts made serve to engage more efficient channels of task accomplishment. .
So we thought we would impart upon all the shippers out there some tips on how to reduce overall costs for effective LTL Procurement. 10 LTL Procurement CostCutting Tips. Due diligence is a shipper's most important step in successful bid analysis. LTL procurement is something we do very well.
Across our many blog posts, videos, webinars, eBooks, and other shared content, you’ll find a wealth of information about various aspects of outsourcing in the supply chain. However, I can’t recall writing a general guide about exploiting outsourcing opportunities to improve your supply chain.
The webinar was titled “The Growth of E-Commerce and Its Freight Transportation Impacts” and was held on January 21, 2015 as part of the DOT/FHA’s monthly webinar series titled, “Talking Freight”. Those who wish to access and download the webinar may visit the FHA’s “Talking Freight” website here.
For manufacturers, having the right business intelligence on hand at the right time can eliminate the guesswork from decision making, offering real-time visibility into business processes so you can anticipate your next move. Data warehousing costs rise. Eliminate reporting inconsistencies and data redundancy. Human error.
The latest industry-pricing trend, dimensional weight pricing, or often referred as “DIM Pricing,” calls for LTL freight cost calculations using pounds per cubic foot of space occupied on the truck. This means more efficient use of space for the carrier and increased cost for shippers based on more accurate classifications.
This data may include invoice numbers, pick up and delivery dates, originating addresses, product descriptions, shipment weight, method of transport, destination address, rate of transport per haul, fuel charges, and the costs of loading and unloading the items at the distribution center. Shipping Strategy. Freight Spend Management.
Technology can help to simplify your supply chain management, which will enable your business to operate more efficiently, give you more visibility and control over your inventory, and help to reduce your operational costs. Computerized Shipping and Tracking.
The customer expectations define the purpose of a logistics system – it ensures the six rights of logistics, which are: the right product, in the right quantity, in the right condition, to the right place, at the right time, for the right cost. Outsourcing can alleviate the stress of growth while eliminating supply-chain hangups.
Thus, in the global supply chain, exploiting the opportunity presented by the Internet of Things technology can improve: revenue growth, asset utilization, waste reduction, customer service, profitability, sustainability, security, risk mitigation, working capital deployment, agility and. Predictive capabilities and modeling to reducecosts.
Transportation management is no longer a tactical approach to simply moving freight and doing it at the lowest possible cost. 10 Tips to Remain Competitive and Have an Effective Transportation Management Strategy. Working with carriers and all the freight you manage to create continuous movement strategies is a win-win approach.
Traditional segmentation strategies no longer work in a world characterized by complexity and constant change. Creating a cohesive back-end is an important first step, enabling companies to make real-time decisions, streamline production, and cutcosts. The Customer Owns the Empire. Embrace Digital Disruption.
As a transportation management third party logistics company, we know at Cerasis that transportation makes up a large portion of the costs and efficiencies of any supply chain. As pressure to improve supply chain cost performance increases for many companies, the evaluation and selection of competent suppliers becomes a key concern.
Supply chain executives must evolve from cost and service as the key objectives for optimal demand-supply balancing towards the “quadfecta” of cost, service, resiliency, and sustainability. What is the Cost to Serve for all the flows to the customer? Quantify the costs and risk to the business What revenue is at risk?
Today, warehouse managers have a wide array of technologies to choose from as they strive to reducecosts, improve efficiency and streamline operations. These technologies help automate warehouse processes and offer a more efficient and lower cost solution over manual picking methods. Lower cost operation. Higher ROI.
You will want to gain insight into what differentiates one 3PL from another, what core capabilities they offer and what skills do they have in developing strategies and thought leadership. From this vantage, a strategic 3PL partnership will form a collaboration with your company to fine tune a strategy to meet your needs.
There would be less breakage and loss of the delicate, high-tech equipment being hauled cross-country these days if the road and freeway surfaces were resurfaced and smoother to reduce vibration. Governmental Regulations – Currently there are no less than 20 laws threatening deep impact on transport costs.
We are digging deeper into 10 areas of strategy that shippers can employ in order to maintain a competitive advantage. Furthermore, this will help reduce delays from issues in one type of fulfillment model. However, the amount of data makes this aspect of data collection and screening impractical for manual analysis.
While trucks have a smaller carbon footprint/kg/km than air freight, the enormous volume of truck freight explains why reducing the carbon footprint is a priority goal. Add in emissions from fork trucks, yard trucks, 3PLs and there’s almost no way for a shipper to assess, track and reduce their carbon footprint easily.
Understand where cargo can be consolidated to increase cost savings. Measure carrier cost structures to maximize efficiencies and lower costs. “Understanding how to create an overview of your supply chain is the very first step in measuring what your company is doing right now and what your current process looks like.
It’s Time To Take A Closer Look At Your Parcel Shipping Costs eCommerce is driving the demand for smaller, more frequent last-mile deliveries. Shippers large and small need to look more closely at parcel transportation costs as a step in preserving margins. 5 Parcel Shipping Trends to Optimize Shipping & ReduceCosts.
While trucks have a smaller carbon footprint/kg/km than air freight, the enormous volume of truck freight explains why reducing the carbon footprint is a priority goal. . Add in emissions from fork trucks, yard trucks, 3PLs and there’s almost no way for a shipper to easily assess, track and reduce their carbon footprint. .
Driverless vehicles will cut the costs of transportation. “The report represents a thorough analysis of the selection and contracting process of contract logistics from perspective of both logistics service providers and their customers – namely manufacturers and retailers” says event director, Haley Garner.
MaaS can lead to cost-minimization of transport services like public transportation, rental, and sharing offerings. Data Analytics This involves the collection of data reports from various fleet performance metrics, such as vehicle utilization, fuel consumption, and maintenance costs.
A Cloud-based supply chain management solution has several advantages over the traditional model of manual inventory analysis combined with local area purchasing. The wide market offered by Cloud-based supply chain management technology creates a highly competitive environment where the service user wins in terms of both features and cost.
With the rise of Amazon, consumers have also been able to access an endless product array at historic, record-low shipping costs. Furthermore, half of respondents cite need to decrease operational costs and improve profit margins as key to enhancing customer service. Better cost than your competitors. Free shipping.
There are, of course, tactical metrics for accounting functions like viewing open and paid invoices or the ability to identify when shipments are due, but also must include strategic metrics and reports for more in-depth analysis. Identify factors that impact your freight shipping costs. Lane Analysis.
Manufacturers must think about new ways to reduce overhead and eliminate downtime in their factories, such as creating proactive maintenance plans and better allocation of resources. This also helps to reduce overhead costs for these respective companies and encourages millennials to become a part of the manufacturing industry. .
However, robotics could eliminate any of these manufacturer concerns as the technologies become more widely used, affordable, and available. Robotics also impact the efficiency and analysis of supply chain processes. cost of sorting, picking and boxing an order. He estimated the robots may pare 20% to 40% from the average $3.50-to-$3.75
This is a must read for those are looking to reduce Full Truckload costs and optimize full truckload shipping in order to do more with less. Shipment data granularity and analysis are linked with better freight allocation, which means making use of the full spectrum of available shipping options, including full truckloads.
However, the cost savings and increases in efficiency have prompted most large companies to adopt these systems, giving them yet another edge over their niche competitors. That is allowing smaller shippers to take advantage of the great benefits that these systems can provide, in cost, data acquisition, efficiency, and communication flow.
event of 2022, my colleagues, Christina Carroll, vice president of LTL, Alan Rowlett, director of global operations and strategy, and I set out to offer exactly that. Many LTL carriers are diversifying their talent acquisition and retention strategies, as well as optimizing their linehaul jobs to deliver a more balanced employee experience.
Advances in disparate technologies have converged to push us past the tipping point, opening an opportunity for 3PLs to develop new, differentiating capabilities to further reducecosts and enable enhanced services for shippers. The cost, speed and reliability of mobile communications networks have improved greatly in the past decade.
Modern technology solutions such as AP automation software can automate the data entry process, which significantly reduces the potential for errors. With the help of AP automation software, you can reduce the amount of work required to process AP transactions.
However, return merchandise authorization may include several different aspects of service-after-sale, such as warranty management, service agreements, analysis of returns, and management of end-of-life equipment, vendor management, and replacement. Furthermore, many RMA policies may have subtle differences with these common interests.
We explore how predictive analytics and big data with human sentiments can add value and amplify their supply chain strategies. Approaching a demand analysis with historical data and seasonal variations is no longer competent. Every step of the way can use predictive analysis. billion by 2022.
Bottom line, it’s great to say you want to have a commerce-enabled site, but before jumping to the technology stage, what is your strategy? The Cerasis “e-commerce” blog category has great articles on developing your strategy. Conduct a customer analysis. Acquisitions / Consolidation.
By outsourcing to a transportation management provider, you can reduce your in-house expenses on shipping processes. This completely eliminates the risk to your business while showing you have nothing to hide, except your innovative formula for a new, eco-friendly cleaning product or piece of technology. Analysis of Big Data.
It is important to note that the above focus does not take into account short-term efforts to improve cost, quality or delivery issues with supplier(s) to meet companies’ expectations. Lead Time Reduction in Supply Chain. Supplier Development focuses on long terms systematic improvement to attain sustained performance.
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