Knowing how to effectively manage fuel costs is an important skill for 3PL providers, particularly in the current environment of volatile and spiking oil prices, says Skip Wendel, global vice president for consumer and retail at UTi Worldwide.
With all of the advances in forecasting technology and software, it's tempting to conclude that people don't need to play a direct role in the process anymore. But the opposite is true, says Jonathon Karelse, vice president of corporate development and strategic planning with Wholesale Tire Distributors.
Strength is returning to the market for mid-sized warehouses, though vacancies remain high for facilities of 100,000 to 200,000 square feet, says Rob Wheeler, vice president for industrial services at Cresa Chicago. Cresa Chicago is a real estate firm that works only with tenants. With 55 offices in North America, it is "the biggest real estate firm you've never heard of," Wheeler says.
There are two major challenges that companies face today in forecasting, says Bob Leonard, vice president of sales with Forecast Pro. One is the push to drive down to more detail, including smaller time buckets. The other is the need to treat forecasting as an analytical task, instead of just clerical work.
Global enterprises increasingly want consistent service wherever they operate in the world and that extends to services required to maintain buildings, says Michael Raphael of Jones Lang LaSalle, a leader in industrial real-estate management.
Avnet provides leading-edge supply chain visibility solutions to OEM customers that have extended global supply chains and significant contract manufacturing operations. These supply chains often are highly complex and very geographically dispersed.
For owners and managers of commercial truck fleets, real-time information on vehicle and driver performance not only helps manage operations and reduce costs, but also ensures compliance with new safety regulations, says Bobby Miller, vice president of product strategy and industry relations at Ortec.
The demand for vendor-managed inventory programs in warehouses behaves "as a pendulum swinging back and forth between supplier and retailer," says John Mayer, vice president of sales with Park City Group. Over the last six to 12 months, he says, it has swung back in the direction of favoring VMI. Mayer has seen particular interest in the technique in the grocery industry.
Downstream demand signals have been available in the retail world for some time now, but it has taken a while for suppliers to take full advantage of them. Mark Kremblewski, global business expert in demand planning with Procter & Gamble, likens the situation to the mining industry, which trades in deposits of both high- and low-grade ore. The latter type is more plentiful, but it's the first that offers the biggest payback from a better use of demand data in unpredictable situations.
Sysco Corp. has operated very successfully for many years as a decentralized company, distributing $40bn annually in food and associated products to restaurants, schools and other meal-serving organizations. The company felt that it could do better in terms of logistics, however, and decided to centralize inbound transportation operations that previously were distributed among its 70 business units.