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Managing a global supply chain network requires the ability to manage and control both globaltransportation execution and the associated freight spend. In a constantly shifting and competitive global trading environment, it is increasingly important to control all costs across the entire supply chain.
Two major shifts are changing the face of globaltransportation management as we know it: Supply chains are becoming increasingly complex, relying on partners and data beyond the four walls of the enterprise; The very definition of globaltransportation management is broadening and expanding well beyond the traditional TMS scope.
There are 4 fundamental areas where globaltransportation is challenged. Three of these challenges are variants on traditional transportation challenges and the last is relatively new but growing in importance. Transportation Cost Management. It is an important part of an effective and efficient global supply chain.
In today’s turbulent trading environment, strong globaltransportation management capabilities deliver exceptional benefits and value. Massive shifts in supply chains are underway because of trade turmoil increasing the complexity in global supply chain management and related transportation management.
Globaltransportation is at the forefront of sustainability efforts. A coalition of countries is pitching a plan to the United Nations’ International Maritime Organization (IMO) to require global shipping companies to raise funds for an effort to deploy widescale fleets of zero-carbon emission cargo ships within a decade.
I’ve worked in the supply chain for 30+ years, working for major retailers including Kmart, Michaels and Five Below, as well as on the 3PL and logistics side with companies including FedEx, where I was Vice President of GlobalTransportation, and UPS, where I worked as Vice President of Supply Chain Design. Image source: Bloomberg.
Instead of having to deal with an ineffective point-to-point communication system like EDI and the complexity of reconciling multiple data sources with multiple permission models, Distributed Ledger Technology (DLT) provides a singular mechanism to securely integrate, harmonize, and synchronize data for all participants.
As the calendar now moves to the second half of 2022, it is important to focus on rapidly changing developments including a marked escalation in geopolitical tensions that impact global supply chain strategies. Restoring More Direct Control in Materials Sourcing. Mid-Year Assessment. For those businesses located in the U.S.,
Here I want to share eight key procurement challenges that we and consultants are facing in today’s globalsourcing world. As time goes by, more and more companies find that the supply chain issues associated with an outsourcing program have often been under-estimated.
Managing a global supply chain network requires the ability to manage and control both globaltransportation execution and the associated freight spend. In a constantly shifting and competitive global trading environment, it is increasingly important to control all costs across the entire supply chain.
The idea of a supply chain control tower emerged in 1990’s, triggered by the need to view and control the movement of goods in factories, distribution centers and pipeline inventories. Recently, SRS (an umbrella group for twenty European retailer groups, selected GT Nexus to deploy a globaltransportation control tower.
In a prior published commentary, we provided highlights of March and Q1-2022 global production indices along with their implications. We now add highlights of March and Q1-2022 key globaltransportation and logistics indices. Trucking disruptions in these areas threaten the flow of inbound and outbound inventory. .
In today’s turbulent trading environment, strong globaltransportation management capabilities deliver exceptional benefits and value. Massive shifts in supply chains are underway because of trade turmoil increasing the complexity in global supply chain management and related transportation management.
Demands on the transportation teams are growing as political posturing ramps up causing rapid disruption to global supply chains. A global TMS solution provides an automated and systemic way of addressing the challenges that are the reality for most organizations that sourceglobally. Execution Control.
Changing customer expectations, globaltransportation disruptions, labor shortages, and climate change are just a few ongoing challenges faced by the industry. This will enable businesses to dynamically optimize resources and capacity like inventory, workforce, and transportation.
The aerospace industry plays a critical role in globaltransportation, defense, and economic growth. It underpins the globaltransportation network, enabling the movement of people and goods across vast distances. Offline Functionality for Uninterrupted Operations: In the aerospace sector, downtime is unacceptable.
An example of supply chain resilience A basic example of supply chain resilience is building in redundancy through dual sourcing: having an alternative supplier for important parts or ingredients. Their Head of Supply Chain, Daniel Bull-Clearie, initially sourced their raw product entirely from their own coastal farm.
The premise of this advisory is that supply chain leaders need to embrace geopolitical supply network strategies to better support global-wide business objectives. It is a process that should address likely sources and frequency of product demand globally, regionally, and domestic in-nature.
To achieve full efficiency, the supply chain needs secure, accurate and timely data on the inventory status and condition of its products. The CMR-6100 is easy to install and maintain, requiring only connecting it to an AC or DC power source – or even a solar power source – and attaching RFID antennas.
Many supply chain management case study curriculums include the notions of how this retailer initially pioneered “ fast fashion ” and extraordinary sales and inventory turnover. Leveraging practices of fast design coupled with localized production sourcing that is able to design and produce products in a matter of days.
Benefits of Machine Learning in Supply Chain Management One of the most potent applications of machine learning lies in inventory management. In today’s volatile market, companies often grapple with the issue of maintaining too much or too little inventory. Europe, China, and Singapore.
According to published reports from both Bloomberg and The Wall Street Journal , the company will now source its hardware customer fulfillment needs to third-party logistics providers in an effort to reduce product delivery costs by up to half. Inventory Glut of Bicycles. That was the classic inventory bullwhip effect, alive and well.
Our initial analysis has identified less than 10 drugs for which Pfizer’s North Carolina plant is the sole source for the U.S. However, the disaster that occurred in North Carolina adds fresh evidence to the fragility of domestic manufacturing sourcing, depending on what the overall impact turns out to be over the coming weeks and months.
The year featured continual component shortfalls, explosive inbound materials cost increases and continuous globaltransportation disruptions. By Q4, major European manufacturers were exploring alternative sources to produce energy-intensive products such as chemicals and fertilizers, with the U.S. Current Year 2022.
Further reported was that about two-thirds of the company’s inventory was still in-transit at the end of the most recent quarter. In 2021, Nike experienced discernable production and transportation disruptions for products sourced in Vietnam as suppliers struggled with Covid-19 lockdowns, labor and transport shortages.
The Wall Street Journal reported this week ( Paid subscription or metered view ), that fashion and apparel retailer Macy’s has managed to avoid the significant excess merchandise inventory levels that are challenging other retailers. We recommend that our readers have a view of this report.
Excellent sales, operational, and inventory planning involves collaboration within and outside an organization. Advanced Analytics let you share complex data and collaborate with critical stakeholders to improve forecast accuracy, better respond to consumer demand, reduce inventory, improve production, and grow profits. Omni-Channel.
In a previously published Part One look back commentary , we noted how outlooks for the global economy and for business uncertainties have significantly changed at the mid-year mark as the global economy shows definitive signs of uncertainty and lowered momentum. Mid-Year GlobalTransportation Assessment.
We answer all these questions and more – including how inventory management software will help you manage your supply chain for your freeport warehouse or factory. This helps to improve cash flow cycles and facilitate just-in-time inventory control. In this 2022 guide to freeports: What is a freeport?
As we noted in our specific 2023 prediction focused on the globaltransportation industry sector , entering 2023, industry perspectives were on the ability to be able to maintain higher rates by basis of multi-year signed contracts executed at the height of shipping rates. percent decline in global trade.
Here we help you answer these questions with an overview of the B2B landscape, including: How B2B marketplaces work The pros and cons of B2B marketplaces The range of types of B2B marketplace The top B2B marketplaces around the world Read more: Try the eCommerce inventory management software that unleashes your growth What are B2B marketplaces?
Further reported was the highest profitability performance in a decade in the midst of high inflation and disrupted globaltransportation and logistics networks. That was counter to Inditex’s prior stance to operate a very lean inventory levels. All of that stated, the global fast fashion retailer faces continued challenges.
Background Within our research arm’s January 2023 published advisory, 2023 Predictions for Industry and Global Supply Chains , we included a prediction that manufacturers would seek more direct control and added resiliency of their component or outsourced production supply networks in 2023. We pointed out that in 2022, more U.S.
Benefits of Machine Learning in Supply Chain Management One of the most potent applications of machine learning lies in inventory management. In today’s volatile market, companies often grapple with the issue of maintaining too much or too little inventory. Europe, China, and Singapore.
Supply chain logistics B2B platform provider project44 produces a series termed Supply Chain Insights by project44 which extracts select data from the provider’s tracking of globaltransportation and logistics flows. A July edition provided two reports that responded to the question- Are Global Supply Chains Recovering ?
The Logistics Managers Index for May indicated that inventory costs are now one-third higher than they were last year. CFO ’s, if they have already done so, will be calling for a comprehensive inventory management analysis, especially if prior decisions were made to take on added inventory as a supply network risk mitigation measure.
Assessment of inventory levels. Having an accurate assessment of your inventory is expected, but it’s important to understand how restrictions on imports from China will impact your current inventory and regular shipping cadence. How are existing inventories compared to sales projections? Backup sourcing options.
Source: S&P Global Intelligence and compiled by The Ferrari Consulting and Research Group 2024 Select Regional and Country Highlights Eurozone Manufacturing Contraction Continues The HCOB Eurozone Manufacturing PMI® report for September was headlined with euro area manufacturing activity falling at its steepest pace thus far in 2024.
The Supply Chain Matters blog highlights February global manufacturing and supply chain indices and challenges relative to product demand and supply network imbalance levels in the first quarter of 2022. Of particular concern was the Inventory level index, which rose 9.1 percentage points to 80.2 to an all-time high.
Despite past lessons from 2003’s SARS outbreak and 2011’s Fukushima tsunami about the hidden weaknesses in their supply chains, companies are challenged to manage logistics concerns stemming from sourcing strategies and risk management. This can help further diversify the value chain. Lesson two: Apply risk management principles in advance.
Outlook for the Remainder of Year We especially call our readers’ attention to today’s published report by the global business broadcasting network CNBC. With global demand and production levels contracting over most of 2023, there were multiple opportunities to negotiate lower contract prices.
Similarly, raw material inventories are accumulating due to the sudden and unexpected drop in production volumes.”. . The August S&P Global Taiwan Manufacturing PMI® remained rather concerning, with firms reportingly indicating continued rapid falls in output and new orders. Bob Ferrari.
Morgan indicated: “ The global manufacturing PMI saw output and new orders lost further ground in September, suggesting that global industrial production is slipping into recession. The orders-to-inventory ratio fell to another multi-year low last month as excess capacity continued to build at factories. up from a value of 53.7
Robots can safely handle multiple tasks, including moving boxes and pallets, simple assembly, inventory counts, maintaining equipment, and product testing. AI and ML can be applied to inventory management, demand forecasting, freight route planning, and much more.
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