Subscribe to our free, weekly email newsletter!



Is your supply chain over-served?

By Mike Regan, Chief of Relationship Development, TranzAct Technologies
March 26, 2014

At the recent Stifel Transportation and Logistics Conference, I moderated a panel discussion that included representatives from Wal-Mart, Dell, Under Armour and Clorox. One topic they covered that I found especially interesting was that some companies were entertaining the idea of slowing down their supply chain. Why would they do that?

First, decisions affecting logistics and supply chain costs are increasingly being made “up the food chain” at the C-Level. Executives looking at the bottom line are always interesting in cutting costs, but only recently have many started to look at new ways to save when it comes to their transportation spend. Additionally, companies are starting to look at whether the customer service they are offering in terms of supply chain speed is actually paying dividends.

For example, the Dell representative highlighted the savings associated with their decision to slow down its Supply Chain from 58 hours to seven days. With Dell’s (some would say) legendary dedication to speed and customization, that was a big change. But as Dell incorporates/combines a “made to stock” with their traditional “made to order” model, they are changing their supply chain.

Given the significance of this change, I asked how long it took Dell to make this decision? The answer: Two weeks. Afterwards, the individual from Dell told me with the slim margins in the PC/Tablet/Electronics industry, the savings associated with slowing down their supply chain are vitally important in Dell’s ability to compete.

It was interesting to note that the other shippers on the panel had their own stories about what their companies were doing to manage their costs. Whether it’s looking at packaging, sourcing from Asia, or working with carrier to address inefficiencies, it was obvious that when it comes to managing and reducing logistics and supply chain costs, everything is on the table.

One of the reason, I find these conference so valuable is because you can get a wealth of valuable information in a couple of days. You can hear from the top executives and learn what they are doing and how it will affect your operations. And that’s why I’d like to challenge you to attend NASSTRAC’s annual meeting in Orlando Florida on April 13-16, 2014. They have put together an outstanding education and networking event and in three short days, you’ll get more useful information than you can imagine. You can learn more by going to NASSTRAC.org.

 

About the Author

image
Mike Regan
Chief of Relationship Development, TranzAct Technologies

Mike helped grow TranzAct Technologies to become one of the largest privately held logistics information and freight audit and payment companies in the United States. He is extremely active in and participates on numerous boards of industry specific organizations and is a highly sought after speaker for transportation related topics across the country. 


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Article Topics

Blogs · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA