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Recent research across 50+ procurement professionals found them most concerned with the impact of external factors on operations, with rising costs ( 55% ), geopolitical disruptions ( 45% ) and capacity constraints ( 38% ) at the top concerns. Why Rate Refresh?
As supply chains readjusted to the environment, both logistics and transportation were significantly impacted by shifts in capacity, high demand, and other constraints. Here’s a rundown of our top-ranked blogs from 2020: #1) A Focus on Health and Safety in the Warehousing Environment.
Logistics is the prime example of a changing industry – colossal, ripe for disruption and utterly opaque. Enough to go through every single article published in the top tech blogs – Techcrunch, Verge, Mashable and Recode – since 2007 to count how often articles about logistics startups, freight or cargo were published.
Consumer buying behavior has tightened capacity in all modes of transportation. What This Blog Is About: Shipper’s top concerns for their supply chain. Leveraging different modes of transportation can support specific delivery expectations during times of tight capacity. To read the entire blog visit BlueGrace Logistics.
Shippers are feeling the effects of scarce carrier capacity. The driver shortage is affecting available trucking capacity. With luck, the shipper may find and contract with another carrier that has available space despite the driver shortage and scarce capacity. Scarce available trucking capacity leads to higher shipping costs.
The reasons for a carrier to reject the load tender are: 1) lack of trucking capacity; and 2) the rate is too low. A change in reefer trailer capacity can also help explain why capacity, in general, has changed, as those reefer trailers are not available for other types of freight. As load volumes increase, capacity tightens.
The SONAR Lane Score is now available in Descartes Macropoint Capacity. Direct access to SONAR Lane Score within MacroPoint Capacity helps brokers maximize efficiency by bringing in useful data into one platform. Descartes’ MacroPoint Capacity allows a broker to see assets throughout the U.S. freight markets by lane.
This begs the question: Even if the industry gets more truck drivers, just how much is enough to relieve the strain on trucking capacity? Below, Jason shares his insights and offers recommendations for what shippers can do to obtain capacity and plan for the coming months.
To look at what risks will affect the supply chain in 2018, Rob Savitsky of AIR Worldwide ( a member of the MIT Center for Transportation & Logistics Supply Chain Exchange program), wrote a blog for MIT discussing three broad categories of supply chain risk. Savitsky points to the example of a potential disruption that was averted.
In this edition of “SONAR Indices & Insights,” readers will learn about FreightWaves SONAR’s Weighted Rejection Index (WRI) to monitor trucking capacity in the freight market and the impact rejections have on shipping rates. For example Atlanta’s OTMS value is 4% and outbound rejections increased from 3% to 5% over the past seven days.
Parade’s approach to capacity management is different from the rest in several ways. Parade is considered the top capacity management solution by most of the supply chain industry. What they don’t say in so many words is that that wider capacity network may come from access to the networks of other brokerages on the platform.
Here are 10 shipper of choice tips to help enterprises secure capacity and improve relationships with carriers, not to mention transportation brokers. The best examples of shippers of choice provide services along several trucking routes. Focus on dock experiences for drivers. Provide driver shipping route choices.
However, those hopes are at risk due to the severe capacity reductions plaguing regions across the US. However, producers that take the time to think about the reality of the situation are better equipped to recognize the value of a strategic partnership to find capacity. What Are Shippers Doing to Find Capacity in a Tightening Market.
If youve followed our blog over the years, youll know that weve shared lots of information about distribution network design, why its vital to get it right, how long it should take, the importance of reviewing the network every so often, and various elements of design such as determining the number of warehouses and where to locate them.
Strong Carrier Relationships : Our long-standing relationships with ocean carriers ensure that we secure priority space for your shipments, even when capacity is tight due to hurricane-related rerouting or congestion. By building flexibility into our logistics strategies, we can redirect shipments to less-affected ports, minimizing delays.
The examples below show you how to do this in AIMMS SC Navigator Apps, but we encourage you to study these scenarios in the tools you have at your disposal. . Companies may not be able to adequately ramp up capacity and lose sales. Capacity shutdown in S&OP Navigator. Understand Exposure .
Blog " * " indicates required fields Email * Comments This field is for validation purposes and should be left unchanged. Here, again, ocean freight is looking to examples from other industries for tested solutions to recurring problems. And Red Sea diversions are leading to rolled containers for shippers right now, once again.
Using AIMMS S&OP Navigator, you can quickly simulate the impact of capacity shutdowns and study other resource utilization scenarios to ensure resource requirements. These are just two among many examples of how scenario planning can bolster S&OP decision making.
Blog " * " indicates required fields Email * Name This field is for validation purposes and should be left unchanged. With demand stable in those months though, carriers still had just enough capacity and equipment to keep the market balanced and rates elevated but level. But things started to change dramatically in May.
Blog " * " indicates required fields Email * Name This field is for validation purposes and should be left unchanged. The port is reactivating an out of use terminal to increase capacity and help get to the more than forty vessels currently waiting as many as seven days for a berth. America and Europe.
For example: we have the traditional warehouse and the cold storage warehouse. Using automated picking systems, for example, can speed up the product-picking process compared to manual picking, reducing the time needed to prepare shipping orders. Which Type of Logistics Warehouse is Right for Your Business?
For example, initiating a recall is streamlined through blockchain by showing all movements of affected shipments. For example, an e-commerce warehouse using a blockchain-based system like a smart contract could automate payments processing. Payment Management Forms Another Key Freight-Use for Blockchain-Based Systems.
Discover capability gaps and create sourcing events Seek and discover what capabilities the organization may be lacking, such as vulnerabilities or inefficiencies in transportation or supplier capacity. Supply chain design can help identify and flag such capacity and capability gaps.
The significance of this region’s having the most elevated rejection rates is simply that it is breaking a multiyear pattern of relatively loose capacity conditions and minimal volatility. While capacity remains abundant in the domestic freight market, the flow of freight is not balanced. throughout the year.
LTL freight refers to the shipment of items that cannot occupy a full trailer container due to their weight, packaging structure, or shipping capacity. For example, less-than-truckload shipping requires 12 linear feet and pallets ranging from one to six, with a maximum of 10 pallets per truck. Such as electronics and precision devices.
Our customers have built prescriptive solutions for strategic business planning , tactical planning ( S&OP ), logistics and warehouse optimization , capacity planning , maintenance planning , production scheduling , crew planning, asset optimization, price optimization, and other applications. . Download your copy here.
Today, shippers are demanding more availability, time and capacity, and truckers are struggling to meet these demands. For example, according to Geotab.com , this has an additional implication for tracking detention time and pay. billion in 2015, reports TechCrunch.
It helps that we have both, but we’ll save that for another blog). 0–25 = Most Difficult to Cover 26–40 = Difficult to Cover 41–59 = Neutral 60–75 = Easy to Cover 76–100 = Easiest to Cover Think of it like your confidence in whether to be aggressive or not (like asking for another card in our fun blackjack example).
For example, consider the following benefits of blockchain in the supply chain : Traceability allows for the corruption-proof means of tracking goods, raw materials or shipments in real-time. Faster processing applies to payment management, securing available freight capacity, load planning and more.
For example, the longer it takes to complete specific process cycles in the supply chain, the more resources are required to execute those cycles. For example, ocean freight is often the only option for moving large shipments (container loads) of goods internationally. Why is lead time important?
Maybe we’re underperforming where you have this capacity to level up as well. You were the one who said, “Joe, you need to start blogging.” ” I eventually started the show as a blog and built a big following. A mentor is a good example of somebody who might bellow the energy a little bit like that.
Blog " * " indicates required fields Email * Name This field is for validation purposes and should be left unchanged. Asia and Africa lanes, which may likewise indicate that more capacity is becoming available across networks as a result of easing conditions on the main trade lanes.
Blog " * " indicates required fields Email * Comments This field is for validation purposes and should be left unchanged. Red Sea-driven congestion and decreases in ocean capacity out of India have pushed air cargo demand up and export rates to twice as high as at the beginning of the year. America rates climbing 14% to $2.88/kg
Traditional manufacturing favored long production runs of the same product because retooling machines to produce different products could cost time and resources, and waste capacity. Capacity takes a back seat to production flexibility as the key performance indicator for factory managers.
For years, shipping companies have been consolidating with alliances or mergers so that they have some kind of control over capacity and pricing. In many articles on this blog, we have covered how the economies of scale forced shipping lines to order bigger ships over the last decade. East Coast ports as well.
Blog " * " indicates required fields Email * Phone This field is for validation purposes and should be left unchanged. Despite these efforts, to date the attacks continue, pushing most major carriers representing over 60% of global container capacity, to alter their routes.
Blog " * " indicates required fields Email * Comments This field is for validation purposes and should be left unchanged. The degree to which December’s rate increases will stick though, will depend on the carriers’ ability to reduce capacity to current demand levels.
A blog from Atlassian explains that “until about 2013, companies usually built enterprise software by constructing applications as single units with large codebases, a monolithic architecture. Blue Yonder, for example, has created a microservice for transportation optimization. Much of that investment is at the platform level.
An interesting example of this is the capability AIMMS has provided in the utility grid business for the last 15 years. You’ll find the same with operations when they provide a capacity statement. The post Intelligence…Sometimes Artificial appeared first on AIMMS SC Blog. AI can then be a powerful solution.
For example, in a bakery business, using the right tool with the BOM, the overall capacity of the oven and fridges could be monitored, and improvements as to how best to use ability could be suggested to reduce electricity costs, capacity constraints and workforce. This all improves customer satisfaction in the organization.
Blog " * " indicates required fields Email * Phone This field is for validation purposes and should be left unchanged. Transpacific prices increased 3% to the West Coast to about $1,600/FEU, 12% higher than in 2019, and 7% to the East Coast to $2,357/FEU, a level still 14% lower than pre-pandemic.
In this blog, we’ll take a walk through what chemical manufacturers are currently facing and how they can better manage their operating expenses. For example, raw agricultural materials have increased 117 percent since 2000 , rubber has seen an increase of 359 percent, and steel is up 167 percent. Rising Raw Material Costs.
Shifts in freight volumes tend to cause changes in capacity, applying upward or downward pressure to carrier rates. An increase in freight volumes on a particular length of haul could tighten capacity for that lane, increasing carrier rates, whereas a decline in freight volumes could loosen capacity, causing carrier rates to fall.
General Average applies liability for the loss proportionally to all shippers according to the percentage of the overall ship’s capacity. Some examples of incidents that may cause loss of cargo include: Fire. Read our last Blog: Common Problems Shippers and Forwarders Experience Uncovered and Explained by Dedola. . Contact Us.
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