Subscribe to our free, weekly email newsletter!


Logistics Management: Shippers will invest in “mission critical” options

With an increased number of natural disasters, both abroad and here in the U.S. in recent months, businesses need to consider developing contingency plans, noted Saia Inc.
By Patrick Burnson, Executive Editor
July 06, 2011

With an increased number of natural disasters, both abroad and here in the U.S. in recent months, businesses need to consider developing contingency plans, noted less-than-truckload (LTL) carrier Saia Inc.

As reported in LM earlier, Saia Inc. found that shippers responding to its “National Trends in Small to Medium-sized Businesses” had a variety of concerns. But chief among them is having a “Plan B.”

“Small to midsize businesses have a lot they are concerned about, most pressing is the economy,” said Saia President and CEO Rick O’Dell in an interview. “I was surprised and pleased to learn that they are increasing their supply chain spending this year.”

And a substantial part of that that will be invested in failsafe operations.

In the event of a major business interruption or emergency event, respondents said their company:

• Has alternative suppliers for key materials and parts (38 percent)
• Maintains safety stock (36 percent)
• Has a business continuity plan already in place (25 percent)
• Plans for contingent shipping arrangements (20 percent)
• Accelerates shipments as needed (21 percent)
• Carries business interruption insurance (17 percent)
• Implements a crisis communications plan with key vendors (14 percent)
• Monitors product transportation paths (13 percent)
• Taps into onsite emergency preparedness plans and onsite tools (8 percent)

“Even with the concern many executives are feeling, not all companies are cutting costs at every corner,” said O’Dell. “In fact, when it comes to their supply chain, many companies are increasing their budgets this year. Nearly half of those surveyed say they are increasing their less-than-truckload budget.”

With regard to shipping, executives say their 2011 budgets are increasing when it comes to:

• Less-than-truckload (46 percent)
• Truckload (20 percent)
• Expedited Shipping (19 percent)
• Guaranteed Shipping (18 percent)
• Distribution (15 percent)
• International (13 percent)
• 3PL (2 percent)

When it comes to carrier measurements, executives were asked which measurement they valued most. On-time delivery leads the way hands down (65 percent) followed by pick-up performance (11 percent) and claims-free service (9 percent).

Nearly half of all executives (41 percent) say they are unfamiliar with the federal government’s Comprehensive Safety Analysis (CSA) program. Of those expressing familiarity, more than half (54 percent) are concerned the program will impact their supply chain.

For related articles click here.

 

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


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

Non asset-based third-party logistics (3PL) services and logistics technology services provider Transplace said today that Brooks Bentz has joined the company in a newly-created role as president of Transplace Consulting in conjunction with the launch of the company’s new North American consulting services practice.

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

When an industry is changing rapidly, companies must adapt in order to survive. In this whitepaper, a global publisher was seeking a partner that could mitigate risk and build a platform flexible enough for their shifting customer expectations. The solution enabled the company to rewrite their operations game plan and transform their supply chain.

Global trade management technology provider Amber Road (formerly known as Management Dynamics) said this week it has acquired ecVision, a cloud-based provider of global sourcing and collaborative supply chain solutions.

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA