Analyst Insight: Logistics accounts for the bulk of humanitarian relief expenditures. Application of technologies and frameworks used in commercial supply chain activities can reduce costs, increase velocity and save lives during crisis. - Kathy Fulton, Executive Director, American Logistics Aid Network
Global container ship capacity is expected to increase by 4.6 percent in 2016, the slowest growth rate in more than 25 years, giving some relief to an industry hammered by oversupply, consultancy firm Alphaliner forecast on Tuesday.
Proposed regulations mandated by the Sanitary Food Transportation Act and the Food Safety Modernization Act hold powerful implications for the future of the cold chain industry. The business environment is shifting, and the proposed rule is just one piece of this changing landscape, as the industry experiences an overall increase in regulations, customer-required audits and augmented public pressure from food recalls.
Van and reefer load availability increased for the third consecutive time, for the week ending Aug. 15, but so did the availability of equipment, contributing to lower national average spot market rates for van, refrigerated and flatbed loads, according to DAT Solutions, which operates the DAT network of load boards.
Small to mid-sized companies are better positioned than large corporations to take advantage of cloud-based solutions because they have not made big investments in enterprise systems, says Yogesh Pathak of Technoforte. The supply chain is one of many areas where cloud solutions promise to change the game, Pathak says.
Oh, sure, go on and do it by yourself. Just try to run the company without any help. Treat suppliers like you don't need them. Go on! If there's a recipe for disaster, that's probably it: acting like you don't need anybody else's cooperation, input or ideas. The reality is quite a bit different though, isn't it? No company, no supply chain, exists in a vacuum. We do rely on each other, because no one of us can do it all, successfully, by ourselves. We need partners. Ah, but which partners – which ones are right for you?
When Esquire Express got into the same-day delivery market 25 years ago, it primarily moved documents for law firms, says President Steve Howard. The internet killed that business, but it also created a new market in same-day delivery of tangible goods. Esquire has thrived by partnering with 3PLs and their retail clients to deliver the same day.
Today's supply chains are so complex and change so rapidly that optimization efforts often are overtaken by events, says Mike Comstock of Grand Canal Solutions. Planning needs to become much more dynamic, with analytics adapted to make optimization a continuous process, he says.
The goal for 3PLs always is to negotiate a win/win contract with existing and new customers, says Mike Bautch of Universal. He offers insights and examples on how to create win/win relationships that keep improving over the years.
Supply Chain operations increasingly are impacted by corporations' quality assurance and quality control programs, says Laurel Nelson-Rowe, managing director of the American Society for Quality. She discusses the importance of these programs in protecting brand reputations and ensuring customer satisfaction.