The English language is full of potentially polarizing statements. But few are more likely to inspire mixed feelings among DC professionals than some facsimile of this: "Our facility is getting a labor management system."
Analyst Insight: While much has been written about demand driven, daily demand variability drives operations crazy. Most current inventory planning and optimization applications are disconnected from daily reality resulting in operations relying on custom spreadsheets and tribal knowledge to reconcile the gaps between plan and actual. In addition, the inventory planning applications are often disconnected from the optimization applications (if implemented at all), further exacerbating the operations conundrum. - Rich Sherman, Supply Chain Discipline Expert at Trissential
Analyst Insight: The worldwide logistics market has experienced a growth rate of approximately 7 percent annually, which is notable given logistics costs average about 12 percent of total revenues globally. Of this total, an average of 46 percent is spent through outsourced relationships, which drove total spend in North America alone to $134bn in 2011. Given this growth and the increasing complexities of global trade, selecting the appropriate services to outsource and structure mutually beneficial relationships with logistics providers is critical. - Aaron Pernat, Senior Manager, and Gary Allen, Executive Director, both in Ernst & Young's Supply Chain Advisory Practice
Now more than ever, the supply chain is being buffeted by forces nearly impossible to predict - making increased levels of efficiency and agility more important than ever before. But you can become a Supply Chain Top 25 Peer Voter and help rank manufacturers and retailers who are leading the way in supply chain.
Although mail, express and logistics companies are benefiting from the growth of e-commerce in Europe, to date few service providers have developed the sophisticated services which e-retailers demand.
Analyst Insight: The automotive industry is an orchestration of marketing, logistics and product development. This orchestration, which leads to higher complexity and demand, requires that many parts be available in manufacturing and services. And this global and complex way of looking at a problem drives the European automotive industry to operate in Asia, as well as localize their supply chains for sales in Asia. However, the logistics for Original Equipment Manufacturers (OEM) between these two continents sometimes become complex. - Thomas Wiedmann, Managing Director, Europe, Tompkins International
Analyst Insight: Pressure is mounting on logistics infrastructure in China due to increasing domestic consumption. As Chinese consumers become more sophisticated, distribution networks will have to respond with greater accuracy, efficiency and speed. The same supply chain principles that have been tried and proven in the West will, out of necessity, become more accepted in China. - Jim Serstad, Managing Director, Asia, Tompkins International
The CEO of Maersk Group toured Nigeria, Angola and Ghana in a bid to focus on African infrastructure improvements. As African economies boom, infrastructure improvements become more important to turning the growth into sustainable development, and Maersk is planning to take a role in this transition.
Analyst Insight: Simply stated, the marketing mission of any business is to profitably create "something" that a customer will buy. The operational objective of the business is to deliver the "something" to the satisfaction of the customer. The financial objective is to charge a fee equivalent to the customer's perceived value while generating a return on the capital investment the business made to create "something."
- Rich Sherman, Supply Chain Discipline Expert at Trissential
U.S. vessel imports are up from December by 6.9% and just above January of 2012 by 0.1%. The total TEU count for January was 1,518,851 and shipments were over 750,000. January imports have not been this high since 2007, which signals some steady rebounding growth for 2013.