Logistics Management

Shipper and Brokers need to be alert to the real challenges facing the motor carriers around the issue of fuel and health care insurance both of which are placing many carriers in the red; and political leaders should not be interfering in the free enterprise system by proposing legislation that would mandate that brokers pass on the actual fuel surcharge paid by shippers to the Brokers.

Shipper and Brokers also need to be cognizant of the time lag between when the carrier is paying for the fuel and when they are being paid for the shipment; and the frequency of their DOE EIA updates.  With carriers unable to offset sizeable health care cost increases, the never ending waves of daily fuel spikes have brought carriers to the point where they just don't have the cash to bridge the cost and time differentials.

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In a special news conference yesterday, the Easter Bunny, recognizing the need to hop around faster and more efficiently, formally endorsed the use of model contracts and the discipline to consistently execute them.  With new carriers presenting opportunities daily and shippers and 3PLs constantly on the lookout for chances to meet their 2008 productivity goals, 'Bunny' made a compelling argument that adminstration of these new opportunities requires a strong contractual model and the discipline to execute it with the minimum investment in precious human resource hours.

Over the past few years, shippers and 3PLs have been working to develop model agreements.  Specifically, the National Industrial Transportation League (NITL) and the American Trucking Association created a model for shippers and carriers to use; and just a fe...Read More

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Do you remember when either your teacher or parents told you to ‘just sit there and be quiet’?  And sometimes we really had something important to say, but were told to be silent?  Do you think it is the fault of our coaches, teachers, drill sergeants, and or parents when we see something we know is wrong and under the right circumstances could be harmful, that we remain silent and say it’s really someone else’s responsibility not ours?

Let’s take load securement for example.  Just the other day I saw a flatbed that passed me going in the other direction on a ramp with a load that did not have the proper securement on the front and back pallets; and I bet that many of us have seen the picture of sheet rock loaded on the roof of a small car. These are two great examples of the loaders and drivers being guilty of simple or gross...Read More

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One of our website readers wrote in with an interesting question regarding developing a career in logistics. Firas writes:

“I am a young IT Supervisor in a small financial services company and am interested in moving to the Logistics sector. I would appreciate your advice on how to plan for a career path as an IT Executive in Logistics in regards to what knowledge is crucial to gain for this field, recognized certifications, and essential training.”

There are a few things that you should do if you want to go into logistics. First, it’s all about understanding Logistics. I define it as the backbone of a company encompassing the disciplines of Material planning, Transportation, and Warehousing. It begins with inbound materials needed for production or redistribution; the storage and handling of those materials ...Read More

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In our haste to hit our annual productivity goals we inevitably take the fastest and least resistant approach….Mr. Carrier - Cut that rate!   While I subscribe to competitive rates that pay a carrier a fair rate of return, often the bigger savings can be found in how your product is being packaged for transport and subsequently stored by DCs and customers.

 
In a presentation last fall at CSCMP Jack Ampuja Executive Director – Niagara University Center for Supply Chain Excellence spoke on the impact of packaging design on supply chain cost.  He gave some excellent examples on box design which illustrated how poor package design negatively impacted its cost to produce, cube size, and in-transit damage.

From a transportation perspective pac...Read More

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The National Academies of Science, Transportation Research Board meets next week to discuss issues facing all modes of Transportation within the U.S.  The Committee on Size and Weight will be discussing what other countries are doing and what the impact would be on our Roads and Bridges. 

Some theorists say that Intermodal shipments are the answer and keeping heavier ‘permitted’ vehicles on state roads is the way to solve the issue of congestion and at the same time allow us to avoid costly changes to the Interstate Highway system which still restricts us to 80,000 lbs GVW (20,000 lbs behind other developed and competing countries).  Intermodal has not been proven to be effective under 700 miles both in terms of cost, time...Read More

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From time to time I watch companies conduct bids that in the end do more damage to their reputation than good. Generally it's because the shipper has been inwardly focused only on the end result....lower costs!

First let me say that there is absolutely nothing wrong with searching for freight savings....that's what shippers are supposed to do!  The real question is - How are the savings to be obtained? Are they to come from productivity generated by the company in conjunction with the carrier? From the adjustment or redeployment of carriers' capacity? Or solely from rates? And when we talk about "rates" is it because we have not tested the marketplace in a few years or because we have chosen not to have a good face to face converstation with our business partners.

Well, let's assume that you have not tested the market place for a few ...Read More

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Dysfunctional Risk Management Syndrome (DRMS) is striking at an alarming rate.  This time it is the 'lack of Due Diligence".  Whether it is toys, patent research, or vendor qualification....Due Diligence is all about the active protection of your customer and your company from both obvious and hidden issues.

It is not the Government's job to protect your customer! It is your responsibility and you must charge yourself and your team with that accountability.

For example - It is of the utmost importance that your team understands all the critical elements of and spends enough time on Due Diligence to ensure that all of your carriers and or 3PLs are completely qualified and maintain that qualification and a certain level of competence; and that your team aggressievely oversees and pr...Read More

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