China and Asia-Pacific are the world’s manufacturing workshops. As companies expand sourcing in Asia, they introduce longer, more complex supply chains with increased transit time variability. If not properly managed, higher costs from inconsistent global supply chains can quickly consume the savings gained from offshore sourcing.

In this webcast David Hoppin, managing director at MergeGlobal Inc., James Gray, executive vice president at Con-way Freight, and William Villalon, vice president of contract logistics and product development at APL Logistics, shared the lessons learned from managing these challenges. The trio then introduced an emerging hybrid transportation service network that provides cost-saving alternatives to airfreight, while delivering new reliability and speed to ocean/truck service for inbound LTL cargos.

Reminding attendees that inland transportation networks are only as strong as their weakest link, Hopping discussed the way in which shipments rely not only on ports, but also on inland rail networks that take multiple years to build. “We see rising import growth bumping up against the reality of infrastructure constraints,” says Hoppin, who expects challenges like congestion and delays to get worse before any improvements happen.

Villalon then discussed hybrid networks and the creation of a new product from APL and Con-way as a solution to the problem. He says key factors considered during development included listening to the market (what the customers need is and solving an identified problem); finding the right partners (who share a common vision and approach); engineering the opportunity (operationalizing the idea and simplifying the process and managing of inbound cargoes); and launching to market (lessons learned and feedback).

The answer came in the form of a hybrid network that responds to the market and fulfills a customer need through the time-certainty of airfreight; optimized transportation network (fewer delays and handoffs, resulting in reduced risk); service reliability and constant shipment visibility (consistent, defined transit times minimize SC risk for inbound U.S. LCL shipments from Asian suppliers); day-definite service (eliminates variability, enables reliable inventory, production and sales planning); and lower logistics inventory costs and working capital (better landed costs projections, reduces need for safety stock).

“This solution combines premium ocean transportation with an expedited truck network,” says Villalon, who sees the hybrid network as a win-win for all involved. “That translates into single custody, with one party coordinating the shipment, Web-based tracking, simplified pricing, and a money-back guarantee.”

The following links offer a synopsis of the seven individual Webcasts that made up this year’s GSCC.