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If you were to tell me that your company had never looked at its supply chain costs and sought to deliver reductions, I would be mightily surprised. On the other hand, if you told me your company hasn’t been able to sustain any progress in supply chain cost reduction, I wouldn’t be surprised at all.
As you’ll know, if you follow our blog regularly, Logistics Bureau does a great deal of work related to supply chain strategy development and alignment. As a result, and as we’ve mentioned in several previously published articles, we’ve discovered that many companies lack a defined and documented supply chain strategy.
As a supply chain director, manager, or boss of a multinational corporation, where the supply chain is an integral part of your business, supply chain cost reductions are always at the forefront of your team’s mind. Vendor Managed Inventory Model for Supply Chain Cost Reductions. What is Reverse Marketing?
Lauren is a seasoned maritime attorney and the founder of Squall Strategies , a boutique maritime consulting and legal solutions company and offers a wide range of consulting services to serve a variety of businesses and clients. Beagen is a seasoned maritime attorney and the founder of Squall Strategies, LLC. About Squall Strategies.
Have you conducted a cost-to-serve (CTS) analysis for your enterprise? And that is the sole purpose of cost-to-serve analysis. If you were going to say, “What is a cost-to-serve analysis?” Only a complete cost-to-serve analysis will expose these underlying issues unless they happen to be discovered incidentally.
Supply chain strategy is critical to business success, but companies often underestimate its importance and hence pay it less leadership attention than other areas of operation. Supply Chain Strategy. In other words, the majority did not recognise the need for close alignment between supply chain and general business strategies.
Eliminate All Waste in the Supply Chain So That Only Value Remains. o Space—holding places for unnecessary inventory. o Inventory—inactive raw, work-in-process, or finished goods. o Energy-(Sometimes called the eighth waste): eliminate wasteful energy in the supply chain: minimize electricity, gas, utilities, etc.
Supply chain strategy is critical to business success, but companies often underestimate its importance and hence pay it less leadership attention than other areas of operation. Supply Chain Strategy. In other words, the majority did not recognise the need for close alignment between supply chain and general business strategies.
Let’s begin with a look at why, in general, retailers with multiple sales channels are more likely to experience difficulties in reducing cost-to-serve. Additional network complexity: It can be troublesome to juggle inventories for conventional and digital retail sales channels. Where to Start Looking for Cost-to-Serve Reductions.
Quality and Detail of Data and its Analysis In some of our earlier posts, weve stressed the importance of simplicity in distribution network design , and we will return to that topic later in this article. It’s not a short list, so we’ll set it down here as a summary to help you with plans for analysis.
Using RFID, companies can triple their order accuracy and reduce chargebacks. Measuring a sample of more than 1 million items from five leading retailers and eight brand owners, the study also found that when RFID was not implemented, 69 percent of orders shipped and received from brands to their retailer partners contained data errors.
Quality and Detail of Data and its Analysis In some of our earlier posts, we’ve stressed the importance of simplicity in distribution network design , and we will return to that topic later in this article. It’s not a short list, so we’ll set it down here as a summary to help you with plans for analysis.
A recent analysis by the American Trucking Associations (ATA) indicates that if existing trends persist, we could see a potential driver shortage reaching up to 175,000 by 2024. Read also: A Study of Unit Economics in Last Mile Delivery Is it essential to reduce last-mile delivery costs for vehicles?
For example, at one point, they modeled Brazil and factored tariffs and tax considerations into the total landed costs analysis. They only promise at most 50% of the savings shown by the analysis. In terms of resilience, the goal is to reduce lead times and increase service levels.
As youll know, if you follow our blog regularly, Logistics Bureau does a great deal of work related to supply chain strategy development and alignment. As a result, weve discovered that many companies lack a defined and documented supply chain strategy. A company without a supply chain strategy is at a competitive disadvantage.
By seamlessly integrating data from multiple sources across branches and business functions, organizations can eliminate data silos , ensure consistent and reliable information, and gain real-time visibility into operations. Missed opportunities: Businesses cant identify patterns or optimize strategies without cross-branch insights.
Recent studies have shown that among the challenges frustrating warehouse and distribution centre managers this year, rising energy and labour costs are two of the most often cited. We hope the tips and ideas in this article will help you make inroads into warehouse energy and labour cost reduction.
Many studies state that those who can manage the functions with the supply chain, they have a competitive advantage. However, with reduced life cycles, customer-driven innovative products and services have forced supply chains to be flexible and adaptable. One of these trends, in addition to inventory keeping, is dual/multi-sourcing.
My colleague Clint Reiser has completed a study on warehouse management system (WMS) boutiques. We are teaming up to bring you the coolest supply chain boutiques, listed alphabetically, that we identified through those studies. I’ve completed research on supply chain planning (SCP) boutiques. What is a boutique?
In a study of logistics providers conducted by Fraunhofer IML, only 36% of organizations reported that they had a clear overall plan for digital transformation. Fifty-two percent of respondents are working on individual digital projects but lack an overarching strategy that links all these efforts. A Positive Example.
Thats why its more important than ever to focus on strategies that work and make them part of your plan moving forward. Lets explore the key strategies that can keep your business ahead of the competition in 2025. Look into tools that help with inventory management or consider robotic process automation (RPA) for repetitive tasks.
Regardless of their size, companies are reassessing their global supply chain strategies. By diversifying suppliers across different regions, companies can reduce the impact of localized disruptions. and European companies to reevaluate their supply chain strategies. What are the benefits of supply chain risk diversification?
We conclude our ongoing series in talking about effective KPI management by giving you a real live Logistics KPIs management case study from Whirlpool's engagement with a logistics service level provider. We hope the following case study shows you the proverbial proof in the pudding of effective Logistics KPIs management. .
Efficient inventory management, layout organization, and operational strategies are key to meeting customer demands while minimizing costs and maximizing profits. One of the most powerful tools employed in this endeavor is the ABCD Analysis.
Efficient inventory management, layout organization, and operational strategies are key to meeting customer demands while minimizing costs and maximizing profits. One of the most powerful tools employed in this endeavor is the ABCD Analysis.
7 min read Maximizing Warehouse Efficiency: Unleashing the Potential of ABCD Analysis In the dynamic world of supply chain management, optimizing warehouse operations has become an indispensable factor for businesses. One of the most powerful tools employed in this endeavor is the ABCD Analysis.
Accurate data forecasting requires accurate data, robust data analysis tools, and people who understand how to use them. If you’re not careful, the costs of forecasting can outweigh the potential savings in inventory costs. All of them rely on data, whether you’re using historical data or new findings gathered from consumer research.
Thus, businesses should develop a flexible shipping strategy that will provide enough visibility to enhance the ultimate leg of the supply chain – last-mile delivery. Better inventory management. Timely order fulfillment and proper inventory management play a key role in the frictionless shipping process.
Logistics, transportation, and supply chain management plans and strategies can always be updated to suit the ever-changing needs of your organization, your partners, and your suppliers. Their ongoing challenge is to create an efficient and differentiated transportation solution that supports their supply chain strategy in both markets.
Logistics costs have increased substantially for Amazon as it delivers on its promise to cut Prime shipping times in half, while keeping delivery free for shoppers. The necessity to increase inventory levels. The need to move inventory around and adjust networks to be closer to customers. Is One-Day Shipping a Step Too Far?
In some cases, human intervention and input will be completely eliminated. Take a look at how the IoT supply chain is changing the landscape in terms of equipment functionality, shipping processes, invoicing and payments, and analysis of trends. Analysis of Trends and Recommendations. IoT and Machine Functionality.
According to the “The Total Economic Impact of Blue Yonder Luminate,” a commissioned study conducted by Forrester Consulting on behalf of Blue Yonder , Blue Yonder’s SaaS-based solutions do just that. The financial analysis from the study found that companies had a net present value (NPV) of $59.79m and a return on investment (ROI) of 394%.
In fact, a recent study , in partnership with Edelman Data & Intelligence, found a broad increased level of confidence from supply chain leaders despite peak season disruptions among those that have successfully implemented data-driven, third-party resources to manage heightened activity levels. Remote Tendering and Shipment Execution .
One study shows that one in three companies in the United States has jobs that are taking nine to 12 months to fill. Another study reveals that the demand for supply chain talent exceeds supply by 6 to 1. You could be particularly numerate, or into analysis. It was seen as an unglamorous, little-understood niche field.
Too much leads to resources being monopolised on gathering tons of data and a subsequent risk of “paralysis by analysis” Cost to Serve (CTS) is an approach that helps you avoid both extremes. In other words, it often makes sense to see how you can transform unprofitable customers into profitable ones, rather than cutting them off.
Of course, it wouldn’t be a business strategy if there weren’t a couple more acronyms to learn. SRM is more than a one-and-done analysis. Taking a collaborative approach with suppliers can help your business innovate, find better products and solutions, reduceinventory costs, and work around future problems.
Similarly, a 2021 study from McKinsey showed that just 19% of companies that had adopted Industry 4.0 Inventory is another huge headache. But at the same time, if you’ve got excess inventory, that unnecessarily increases costs. Ensuring we had enough, but not too much inventory was always a stressful guessing game.
Relationships are critical to the overall success of end-to-end supply chains, and the 2025 Annual Third-Party Logistics Study found that 89% of shipper respondents said their relationships are successful, a decrease from 95% in the previous study. 3PLStudy.com. Past publications can also be accessed as well.
Before the pandemic, in a study of logistics providers conducted by Fraunhofer IML, among those embarking on digitalization initiatives, only 25% of logistics providers in the Fraunhofer IML survey are leveraging digital technologies to think outside the box and reinvent their foundational delivery model. It should also be shared downstream.
Another round of stimulus has passed, inventories remain decimated and economies are recovering as states reopen. Reduced 2020 traffic gave back drivers billions of hours. If 2020 was good for anything, it was good for reducing city traffic. According to an Inrix study, Congestion fell almost 50% across major U.S.
Zebra Technologies Corporation today released the findings of its 2023 Global Warehousing Study, which confirmed 58% of warehouse decision-makers plan to deploy radio frequency identification (RFID) technology by 2028 which will help increase inventory visibility and reduce out-of-stocks.
In this Case Study, we’re discussing the successes of the partnership and the tools and methodology that will fuel continued success in Europe and other regions. The Company found a strategic partner in CLX Logistics, and together, the companies have focused on increasing efficiencies, cutting spend, and improving transportation performance.
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. We’ve conducted brand preference studies of manufacturers.
In this Case Study, we’re discussing the successes of the partnership and the tools and methodology that will fuel continued success in Europe and other regions. The Company found a strategic partner in CLX Logistics, and together, the companies have focused on increasing efficiencies, cutting spend, and improving transportation performance.
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