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…organizations need to be proactive and intentional about talent management. For instance, only 60% of respondents believe their organization is doing an “above average” or “excellent” job of identifying required skills and competencies, while only 51.7% believe they are “effectively planning” for future talent needs. Fewer than half (49.2%) believe that their organizations have implemented an effective strategy to attract, retain, and develop talent. Adopting such an indifferent approach to talent is a risky strategy for an industry burdened by negative perceptions. For the second year in a row, a mere 19% of professionals are highly likely to encourage their…
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…Battle Against the Ecommerce Titans The editors of Logistics Management have put together a group of feature articles to help shippers better understand some of the more prevalent challenges ushered in by the “e-commerce effect.” Download Now! Seven Practical Tips to Eliminate Hidden Shipping Costs Many companies have significantly reduced their shipping costs by implementing a multi-carrier shipping solution that allows them to compare carrier rates and automate document production, however, you can realize even greater savings by ensuring that your shipping system is configured to pre-empt many common issues that result in hidden freight costs. Download Now! The 3PL…
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…billion acquisition of Norbert Dentressangle SA. Last week, United Parcel Service Inc. said it would buy Coyote Logistics for $1.8 billion. Mr. Kletzel said that while the industry has seen a larger share of “mega deals” than usual, plenty of smaller mergers and acquisitions are happening as well. That’s particularly true in trucking, where many founders of family-owned companies are reaching retirement age and looking to sell. Private-equity firms are also getting in on the action, drawn in by rapid growth in logistics spending. “It’s a blend of big and small [deals],” he said. Source: Wall Street Journal PwC Intersections…
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…sector: airline, bus, freight forwarding, postal/CEP (courier, express, and parcel), rail, shipping, trucking, and contract logistics. Key Findings The through-cycle capital market performance of the transportation and logistics sector is below investors’ requirements. Over the last ten years, the companies in our sample have generated an average total return to shareholders (TRS) of 7.2 percent, a figure well below the sector’s cost of capital (10.5 percent). Although the sample did produce average to above-average revenue growth at a compound annual growth rate of 3.6 percent, the sector’s return on invested capital (ROIC) of 7.5 percent was lower than in most…
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…Alibaba have shown what is possible with supply chain management and operate their own distribution businesses. Private wireless networks, starting with 4.9G (super-charged 4G) and migrating to 5G as business needs emerge, bring a number of enablers - ultra-low latency, high bandwidth, wide-coverage, and mobility - which, combined with simple deployment of IoT devices provide the perfect platform on which logistics businesses can drive digital transformation. For instance, cost pressures can be managed by automating processes and using robots. These require low latency which can’t be provided by WiFi but can be delivered on private wireless networks. Digital twins of…
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…to the happy customer or dropped off at a parcel carrier for the last mile delivery. In Supply Chain Utopia, retailers would always have ample capacity, raw materials, and labor to meet periods of average and peak demand. Inventory optimization would be taught in The History Of Supply Chain 101; inventory managers would bore their grandchildren with stories about distribution centers, stocking points, and back-of-the-store storage rooms from the good old days. Related: 7 Principles of Supply Chain Management Redux Unfortunately, Supply Chain Utopia is a myth. The truth of today’s competitive markets is that customers want instant purchase gratification…
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…Amazon does,” says Robert Lieb, professor of supply chain management at Northeastern University who has surveyed 3PL CEOs for nearly 25 years. “They are trying to respond with an omnichannel solution to maintain brick-and-mortar stores, but also be competitive in e-commerce.” “Because a lot of retailers - particularly small ones - can’t afford to put together their own stand-alone e-commerce business with the geographic and inventory positioning capability to meet same-day/next-day delivery expectations, they’re asking 3PLs to help,” Lieb adds, noting it’s become the fastest growing part of the 3PL business in the last five years. “Last year, of the…
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…a company that performs rate invoice verification, mostly for parcel and less-than-truckload (LTL) clients. The company has several hundred customers who spend in excess of $3 billion on transportation, he says. “They need help in finding efficiencies, not merely auditing freight bills,” he adds. Today, freight payment is merely a fraction of what most of these companies do. Instead, computer-driven technology has taken the lead, trying to maximize efficiencies not merely through audits, but rather by close examination of a shipper’s freight trends and tendencies. “Today we’re competing against Oracle, SAP, as well as C.H. Robinson”Mike Regan, president of TranzAct…
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…two “mega” freight brokers to rival 3PL domestic transportation management (DTM) market segment leader C.H. Robinson Worldwide. “With other major competitors such as Total Quality Logistics and Echo Global Logistics growing rapidly as well, this intense competition will continue to heat up,” says Armstrong. “In the end, it will mean increased operational performance levels for shippers and further consolidation within the small freight broker ranks.” While the 3.5 percent year-over-year U.S. 3PL market growth in 2013 was sluggish, mirroring the overall economy, DTM led all 3PL market segments again in 2013, according to Armstrong’s research. Gross revenues were up, as…
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…to strike a delicate balance between service and cost. Parcel express providers have been ahead of the game for some time now, and are adding a new dimension to the scenario as volume cargo playing fields are reconfigured. Amazon, for example, may have startled many when it announced its intention to become a non-vessel operating common carrier (NVOCC), but some industry analysts saw it coming all along. “This gives Amazon a foothold in the $350 billion a year ocean freight business,” says Satish Jindel, president of SJ Consulting Group, a transportation and logistics analyst firm. “This makes perfect sense for…
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…the supply chain. This same drive also explains Amazon’s parcel drone-delivery efforts. The Non-Vessel Operating Common Carrier (NVOCC) play In this context, Amazon filing to function as a freight forwarder is as logical as it is bold. Amazon is entering a notoriously unautomated industry. Just getting pricing for freight quotes takes an average of more than 90 hours, and the industry is renowned for opaque pricing. But Amazon‘s international revenue growth has stagnated, falling to a 12 percent growth in 2014 - modest in Amazon terms. Easier and cheaper shipping to Amazon sellers globally can revive growth, reduce Amazon’s own…
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…research. In 1990, I submitted a proposal to United Parcel Service Foundation seeking support for a survey of the vice presidents or directors of logistics of the Fortune 500 manufacturers to determine the extent to which they were outsourcing logistics services - and if they were, how it had affected their operations. Integrated Solutions offer improved opportunities for the extraction of value The initial response from the Foundation was essentially: “Why should we care about that subject?” My response was that if the 3PL concept gained traction in the logistics marketplace, United Parcel Service would probably want to establish an…
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…packages to our homes. One of the world’s largest parcel delivery services, UPS generated a total of $74 billion in revenue in 2019 and delivered more than 5.5 billion packages and documents. Perhaps less well-known is UPS’s Supply Chain Services, or SCS, a $13 billion division that handles everything from freight forwarding to e-commerce fulfillment services targeted at the small- to mid-sized (SMB) business community. As with most providers of third-party services, UPS’s e-commerce fulfillment operations are balancing growth and transformation to adapt to a rapidly changing market. And while it’s simple to attribute the changes to the pandemic, many…
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…cross the $1 billion mark. MHS business units include Parcel North America, Lifecycle Performance Services and research and development offices in Mount Washington, Ky., as well as distribution and fulfillment offices in Atlanta. MHS acquired control system integrator Atronix in November 2017, global integrator VanRiet in May 2018, materials handling equipment integrator A2i in July, and sortation specialist OCM in August 2018. In early 2020, the company launched MHS Insights, a condition-based maintenance solution that monitors assets through IoT sensors and system data. John Sorensen, senior vice president of Lifecycle Performance Services for MHS: “By not leveraging data, warehouses and…
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…delivers the carts to the right work area. Warehouse management system (WMS) and enterprise resource planning system (ERP): Grob integrated a new WMS with SAP to manage storage locations and synchronize activities in the logistics center. Since going live at the end of 2013, “the pick quality is excellent and the throughput rate is significantly higher than before,” Lisiecki says. Find out “How the System Works” Dealing with Inefficiency Family-owned Grob Group has been serving industry since its 1926 founding in Munich to produce a stationary heat engine. Burkhart Grob, Margret Grob, Christian Grob (from right to left) The company…