When you're managing a fleet or a warehouse, there are a lot of moving parts. Equipment and labor inefficiencies can slow you down and cost your company time and money. One way to identify areas where you can improve your supply chain and operations, is by measuring and tracking key performance indicators (KPIs).
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Each year, according to the CDC, 48 million people in the US (about 1 in 6) get sick and 128,000 are hospitalized due to foodborne illnesses. On top of that, foodborne illnesses cause as many as 3,000 deaths per year.
The Food and Drug Administration (FDA) is making strides in mitigating and controlling this problem that affects many Americans each day. The Food Safety Modernization Act (FSMA) gives the FDA a legislative mandate requiring comprehensive, science-based preventive controls across the food supply, expressly aimed at reducing foodborne illness.
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Warehouses are no longer pure storage facilities or storehouses. In today’s supply chain, your warehouse needs to contribute to the overall efficiency, productivity, and cost-effectiveness of your business. If it’s not doing that, it may be time to reevaluate. To further streamline your supply chain, the functions of a warehouse need to shift to include inventory control and cost management.
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When it comes to managing a supply chain for your organization, the stakes are often high. Not only is your freight valuable, but so are the relationships between you and your suppliers, distributors, and any other involved parties. Your ability to ensure that your goods make it to their destination on time and in good condition can make or break your reputation in your industry. It’s important to get it right as much as possible.
Unfortunately, there are so many aspects of the transportation process that are outside your control. Weather patterns, delays due to traffic congestion, problems with infrastructure, and other factors can put a dent in even a well-developed logistics plan. While these obstacles typically aren’t the fault of any one party, and often aren’t preventable, the fact remains: your goods still need to get where they’re going, safely and as close to the original schedule as possible.
So how can you ensure that unexpected logistics hiccups don’t destroy your schedule, budget, or reputation?
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When you are looking for a logistics partner to help your supply chain run efficiently, finding the right partner can be a tall order. There are many factors to consider, and common industry jargon often creates more confusion than clarity.
For instance, the terms “freight broker” and “third-party logistics” (or 3PL) are sometimes used interchangeably. However, there are a few key differences between these two services, and when you’re looking for a new logistics partner, it’s helpful to know what they each do.
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Moving your freight requires more than loading a shipment on a truck and hoping everything arrives on time and in shape. As a supply chain manager, you want to be sure you’ve got the best method of transportation for your freight, whatever it may be. There’s been a lot of back and forth over the years about whether it’s better to transport freight using railroads or trucks. Ultimately, the method of transportation you use depends on the specific needs of your freight and your business. We've broken down the main domestic shipping options to help you understand and make the right choice for your cargo.
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If you’ve been managing your supply chain entirely in-house, and are ready to start working with a third-party logistics provider, it can be tough to know where to start your search. There are so many factors to consider, and so many providers to choose between.
When looking at potential logistics partners, in addition to considering their reputation, cost, and areas of expertise, one factor may come up: do they have their own equipment or not? An asset-based 3PL owns some or all of the equipment needed to manage your supply chain, whereas a non-asset based logistics provider (or broker) gets your goods moved entirely through a network of trusted partners.
Is it preferable to use an asset-based player or a non-asset-based one? Let’s take a look at how they each stack up on convenience, cost, and stability:
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It’s a supply chain manager’s nightmare. You need to get your goods from point A to point B but capacity is tight and demand is high. Instead of having carriers compete for your business, you’ve got to compete for a carrier to choose your freight. And that’s not something you planned for.
When capacity is tight and demand is high, rates increase and carriers become more selective about the freight they accept. Don’t get stuck with your goods or pay over-the-top amounts to get your goods where they need to be. With a little planning and communication, you can work toward securing capacity, so you’re not paying the price of high demand. Follow these steps to get the transportation capacity you need, when you need it.
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Moving goods from point A to B? Sounds easy enough, but we all know that managing supply chain and logistics can get complicated. There’s warehousing, transportation, and distribution to consider. On top of the actual plans for shipping, there are also things like regulations, licenses, truckers, and taxes to worry about. Did we mention unexpected shipping costs?
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For supply chain managers with large operations, having a working knowledge of where all goods are at all times is crucial. But unless everything runs on a predictable and precise schedule— and it occasionally doesn't— this can be difficult to maintain. Managing a supply chain from end-to-end involves more expertise and visibility than most people are capable of handling on their own.
That’s why instead of handling the entire process in-house, many supply chain managers choose to work with third-party logistics providers (3PLs) to help them ensure the successful transportation of their goods.
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CAI International 2015 Annual Report
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