Transportation Logistics: On-Premise vs. SaaS and Cloud-Computing Solutions

In today's lean and mean transportation logistics markets, many companies are fueling their supply chains and transportation management systems (TMS) with some form of Software-as-a-Service (SaaS), or cloud-computing software platforms. But how do you know what's right for your organization? And will the choice you make today be suitable long-term as your business needs change due to acquisitions, expansion or contraction? Let's take a look at the three transportation logistics technology solutions currently available in the marketplace and the pros and cons of each:

No. 1 in a Webzine Series on Demand Forecasting 2.0

Lost sales, increased costs and poor customer service due to inaccurate forecasts can wreak havoc with a company's bottom line. Not too many companies can remain profitable by writing off hundreds of thousands of dollars worth of merchandise on an annual basis or sitting idly by as their customer bases erode due to inadequate service. But in honor of Valentine's Day, this first installment in the Demand Forecasting 2.0 series of webzines talks to the love-hate relationship that businesses have with demand forecasting. Continue Reading "Are you giving demand forecasting the love it deserves?"

Take Inbound Shipments From Chaos to Cash with a Prepaid-to-Collect Conversion

America's 114 million households, 7.6 million business establishments and 88,000 government units fuel a massive economy that revolves around the movement of freight.1 But, the movement of goods from point A to point B often comes with a hefty price tag.

Tracking Products From Pasture to Plate Challenges the Food Industry

On March 16, 2009, the U.S. Department of Agriculture's Country of Origin Labeling (COOL) program went into effect. As the name implies, this requires that most meats, wild and farm-raised fish and shellfish, fresh and frozen fruits and vegetables, macadamia nuts, pecans, ginseng and peanuts clearly indicate the countries where they were produced, processed and manufactured. Exempt are processed foods that have "undergone specific processing resulting in a change of character" (e.g., bacon) or foods that have "been combined with another food component" (e.g., breaded chicken tenders or fish sticks).

Use Inventory Optimization to Jumpstart Your Business in a Sluggish Economy

Wholesale inventories are goods held by distributors who generally buy from manufacturers and sell to retailers. Slowing retail sales have generated major shock waves up and down the supply chain as wholesalers find themselves in the precarious position of trying to clear out excess stockpiles of inventory and/or rapidly reducing the number of goods they supply due to manufacturers' decreased production levels.

As a result, retailers that don't have a handle on their inventory could quickly find themselves struggling to correct both overstocked and out-of-stock store shelves.

Optimizing Freight Spend Through Shipper-Carrier Collaboration

Shippers facing razor-thin operating margins are spurred on to renegotiate their transportation rates, knowing that carriers are facing an especially adverse environment which is forcing them to quote unsustainably low rates. It is understandably tempting for shippers to negotiate rates to the smallest levels that carriers are willing to take to stay in business. However, smart shippers would do well to resist that temptation and, instead, form longer term relationships with carriers and foster an operating partnership where both parties can work profitably.

Distributed Order Management Benefits Retailers and Customers in the Cross-Channel Environment

Sales used to be relatively simple. Customers walked into your store, made a purchase and if they had a problem they came back to you for service or returns. Things got more complicated once retailers started using catalogs, which, with the help of technology, evolved into online sales.

See-through Vision: Supply Chain Intelligence that Builds Business Transparency

In most companies, the supply chain is viewed as a mission-critical system. In the very best performing companies, the supply chain is seen as a strategic weapon with which to club the competition and drive shareholder value. The type of meltdown experienced in the financial sector should have companies begging the question: Are we getting all the necessary intelligence from our supply chain system to make the best decisions for our business?

Four Ways to Minimize the Impact Returns Have on Your Business

Return rates average 6 percent and can reach as high as 30 percent for some product lines, such as fashion apparel, according to the Reverse Logistics Executive Council. Associated costs of returns can often reach as high as 10 percent of total operating expenses. In addition, returned merchandise comes back unexpectedly, is difficult to plan for and is often returned in poor shape in sub-optimal packaging.

Survival in a Soft Freight Economy: Staying Profitable in a Buyer's Market

Even in an Industry-wide Downturn, Technology Can Help Carriers Save and Make Money

As if trucking companies needed reminders, the signs of a slumping economy are everywhere. The U.S. Department of Transportation showed a Freight Transportation Services Index that had dropped 0.4% in March of 2008 compared to the preceding year. This was the third straight March-to-March decline and the lowest level for March in five years. The American Trucking Association reported a 3.3% drop in tonnage for the same month.

Is your supply chain agile enough to take on new business

Deal-driven 3PLs that plan for growth are virtually unstoppable.

The current economic environment, with its volatile fuel and transportation costs and constricted credit availability, presents a mixed blessing to 3PLs. Many are thriving as businesses focus on their supply chains. But these same growth opportunities bring infrastructure and scale challenges.

The Eco-Business of Supply Chains: Putting a "W" in Both Columns

"Going Green" carries more clout these days as companies realize the blend of business with eco-friendly initiatives involves more than social responsibility. In today's ecologically sensitive consumer environment, going green also makes good business sense.

But companies are finding that going green requires more than a simple change in marketing or sloganeering. Meticulous consumers and a host of experts, analysts and pundits are combining to truthfully evaluate which companies are making serious efforts to go green — beyond their advertising claims.

Food Shortage? Supply Chain Optimization Reduces Impact on U.S. Stores

When Sam's Club and Costco rationed the amount of rice individuals could purchase at their stores this spring in response to a global shortage of the grain, the move signaled to many commentators and consumers that the food shortage affecting much of the developing world could be coming to U.S. shores.

Buying for Profit: Selling Generates Revenue, but Intelligent Buying Generates Profit

Retail and wholesale distribution merchants facing increasing pressure from competition and today's economy can take some advice from their local real estate agents: Whenever possible, make money when you buy, not just when you sell.

As merchants know, the first place profit margins often suffer is on the sell-side of the business where sell-price competition is increasingly fierce. Many times finding additional profit on this side of the business, in an intensely competitive environment, can be like trying to squeeze blood out of a turnip.

Waiting for Profit: Dynamic Network Allocation

From "the early bird catches the worm" to "first-mover advantage," everything from proverbs to dot.com clichés have advised us to act early in order to have an advantage and be successful. For supply chain managers, however, it often pays to wait when it comes to inventory deployment decisions.

Accelerating expense due to rising fuel costs?

The price of crude oil rose to $135 a barrel in May, up 35% from January of this year and 270% from January 2007. Companies at all points in the supply chain are struggling amid the astonishing run up in fuel costs—and transportation logistics has emerged as the primary weapon in defense of corporate profits.

Tweaking isn't enough

The minor adjustments in transportation practices made as prices rose gradually from roughly $30 per barrel in early 2003 to $50 per barrel at the beginning of last year, helped reduce the impact of the incremental change in fuel prices:

Stock-Outs Mean Walk-Outs

Consumers are often fickle and increasingly less loyal, so retailers don't want to give them any excuses to shop elsewhere. And, many times, an out-of-stock item is all the reason they need.

Change is Big in Politics, But Wait 'Til You See What Can Happen to Your Supply Chain

Grammy award-winning singer and songwriter Sheryl Crow once crooned "A Change Will Do You Good." And, it seems as though each presidential candidate is marching to the same beat. However, when it comes to managing change within the supply chain, many professionals can quickly find themselves caught off guard in a complicated and suddenly shifting landscape.

Putting the Green Back in Returns

The best return is one that never happens.

However, it's unrealistic to think you can eliminate all returns. There are simply some that just cannot be avoided. It's a part of doing business, especially in the retail world.

Twenty percent of everything sold around the world is returned. And, retailers have known for years that product returns cost them billions of dollars each year. However, most companies are more focused on the forward supply chain.

Armor Up: Tips to Recession-Proof Your Business

As the economy begins to sputter, companies across the country should be evaluating how safe their business is if the United States experiences a recession this year.

While an official recession can only be confirmed in hindsight, a strong downturn in the economy for 2008 has been the talk from Capitol Hill to Main Street. Although no one can say for certain, most economists believe all the ingredients are there.

Retailers plot to get tax rebate checks

With a single pen stroke, President Bush’s signing of the 2008 Economic Tax Stimulus plan will put $120 billion in tax rebates into 130 million American households. The hope is that they will spend it to boost a faltering U.S. economy and increase consumer spending confidence.

The Forecast for Spring: Retailers Turn to Climatologists for Help

When the temperature starts to climb, consumers want short sleeves, outdoor gear and sunscreen—now! And they may not be back to stock up again. If spring arrives a week or two earlier than expected, retailers could be stuck with unsold seasonal inventory. As the twin pressures of a tight economy and impatient consumers reduce the number of opportunities stores have to get their goods in the hands of buyers, timing the change of inventory has become increasingly important.

RFID Compliance, Act II: Just When You Thought It Was Safe

It looks like Wal-Mart has come back for a second act to gain the efficiencies of RFID.

Wal-Mart set the stage for RFID compliance back in 2003. Suppliers objected to the requirements and the company proved to be fairly tolerant of non-compliance. It looks like the company has come back for a second act to gain the efficiencies of RFID, but this time through its Sam's Club subsidiary.

Why a Recession May Be Good For You

Sure, losing at baseball builds character. Just like a recession builds market share for retailers. Turns out, both are true—at least for some players.

Mike Ullman III, Chairman and CEO of JC Penney Co., announced last week that the retailer would be consolidating its buying and marketing operations for store and online sales. Why? "The precipitous drop in sentiment in the fall is what we feel we need to deal with going forward," Ullman said in the Wall Street Journal on January 31. "We're assuming no improvement in the trend in 2008."

Introducing SCOPE: A Systemic Approach to Optimizing Your Supply Chain

Leading experts and journalists across the globe are telling the same story: As the deployment of supply chain management techniques grows more streamlined and responsive, supply chains have moderated the peaks and valleys of global economic cycles and brought new speed and efficiencies to markets worldwide.

Five Resolutions Every Supply Chain Pro Should Make for 2008

If 2007 is any indication of what's to come, then executives should expect a business environment driven by a number of issues that could disrupt global supply chains, sidetrack sourcing strategies and squeeze the flow of working capital.

Issues such as: