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 PMI, the ISM’s index to measure growth, increased 1.8 percent to 57.1 in July. This is 1.8 percent higher than the 12-month average of 55.3. The PMI has grown in 18 of the last 20 months, with economic activity in the manufacturing sector expanding for the last 14 months as the overall economy was up for the 62nd consecutive month.

YRC Worldwide, whose regional and long-haul units provide the second-largest LTL capacity in the trucking industry, narrowed its second-quarter loss to $4.9 million on $1.32 billion revenue, compared with $15.1 million loss on $1.24 billion revenue in the year-ago quarter.

With NFL training camps in full swing, it stands to reason that Congress must be replete with football fans, given how it basically has elected to punt on federal transportation funding yet again, with the Senate yesterday signing off on a ten-month bill to keep federal surface transportation funding intact through May 2015 through a nearly $11 billion stopgap measure.

Carload volumes were up 4.3 percent at 306,988, and intermodal volume for the week ending July 26 was up 3.3 percent at 264,809

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