As manufacturing firms evolve towards an integrated approach to supply chain management, it is important to consider the role of third-party logistics in the value chain as well as the enabling technologies that support this evolution. A new report from IDC Manufacturing Insights, Perspective: Use of Mobility Tools in the 3PL Industry, examines the role of mobile technology in supporting integration and performance improvements in the 3PL industry.
Analyst Insight: Speed is a game-changer. Leaders are enabling faster fulfillment and reaping real bottom line and competitive advantage benefits. The key is balancing potential revenue gain or service level improvement against the investment and operating costs required to deliver on the promise. Choosing the right strategy depends on understanding the impacts, not just within the distribution center, but across the entire organization. – Helgi Thor Leja, Industrial Distribution Leader, Fortna Inc.
Chemical tanker shipping faces another challenging year of falling freight rates in 2015, but the trade is expected to recover next year, according to the latest edition of the Chemical Forecaster, published by global shipping consultancy Drewry.
Analyst Insight: The pharmaceutical industry is finally sharpening its focus on profitability and efficiency. 2014 saw continued mergers and acquisitions, but more importantly, the acceleration of business focus on core sectors. Now that the impacts of the Affordable Care Act are better understood, the ability to streamline operations into sectors is driving spin-offs, sell-offs and renewed operational pressures. Two key drivers this year involving supply chains will be inventory reduction and control and lean cost reduction. – Brian Hudock, Partner, Tompkins International
Analyst Insight: When it comes to supply chain management, logistics has long been something of an afterthought. As companies look for more ways to win in the marketplace, and customers step up their demands for better service and delivery transparency, superior logistics is becoming a competitive differentiator. – Brett Cayot, Principal, PwC Advisory Practice; Sandra H Gosling, Director, PwC Advisory Practice; Thornton Hughes, Principal, Strategy&
LPG shipping earnings are forecast to remain buoyant on the back of low oil prices and the absence of fuel substitution, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry.
The global lubricants market is estimated to reach a demand totaling 44,165 kilo tons by 2020, up from 39,140 kilo tons in 2013, according to a report from Transparency Market Research. The increase is based on growth rates of 1.72 percent between 2014 and 2020.
Analyst Insight: Customers of 3PLs face fundamental market transformation impacting their supply chain operations and initiatives. Connected commerce drives basic changes to fulfillment operations. Change is occurring at internet speed. 3PLs haven't traditionally been known for "anticipating" customer requirements changes. They have, however, been exceptional in responding to customers' requirements when the changes become apparent. In today's fast-paced markets, responding to change may not be enough. Vested relationships based on innovation are the new 3PL imperative. – Rich Sherman, author and founder at Gold & Domas Research
Analyst Insight: Implementation time-lines for transportation management outsourcing continue to shrink thanks to cloud-based systems, process standardization, and features like automated carrier contract management. This is not the case for facility start-ups. With 10+ key milestones, hundreds of key tasks and sub-tasks, time-line slippage and cost overruns can quickly extend the time to value for both 3PLs and shippers. – Valerie Bonebrake, Senior Vice President, Tompkins International
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, slid to an all-time low on Monday as sluggish cargo demand - especially from China - battered sentiment.