Tag Archive: global logistics

Have You Thought of Crossing Borders Lately?

March 15th, 2018

There was an export panel at the Manufacturers’  Council of the Inland Empire 7th Annual Summit, and it brings to light the vast opportunity of export.  Additionally, I had a lunch with a top international attorney and an international research expert recently, and it opened my eyes further on the topic of export.  Why do we always think about import but forget to export?

Less than 1% of America’s 30 million companies export and less than 39% of US manufacturers export.  Of those that export, 58% export to only 1 country. Why? What is going on? In the same breath, the statistics show that  Made in the USA is a compelling proposition and there is VAST opportunity to sell products in other countries. You don’t even have to go far with Canada and Mexico at our borders.  

According to a study published by the Institute for International Economics, U.S. companies that export not only grow faster, but are nearly 8.5 percent less likely to go out of business than non-exporting companies. Are we not interested in profit????  This panel has found success in export.

 

 

For example, Kusum Kavia, president of Combustion Associates discussed the success her company has had in exporting to Africa as well as many other countries.  They were featured in the cover story in Global Trade Magazine as well as recognized by President Obama at a US-Africa Leaders Summit. She credits many collaboration partners in this success such as the Export-Import Bank and trade specialists at the US Department of Commerce.

Another Inland Empire manufacturer and APICS-IE supporter, Roy Paulson, president of Paulson Manufacturing has achieved great success with exports.  They have grown rapidly and significantly through export, and he has served on the president’s export council.  Why not get a boost to your sales revenues while providing value in other countries?

There is also far-reaching support for global logistics, banking and exchange rates and much more.  Why not look into whether your products might be of interest to other global markets? You might just discover a goldmine!

 

 



Logistics Innovation – Where is it Going?

November 10th, 2017

The global logistics industry will grow from its current hefty size of $8 trillion to $23 trillion by 2023 – what a sharp contrast!  Have you thought about how to be viable with these massive shifts going on?  If not, you sure should as it is coming and will just pass you by.

 

Key Aspects in Upcoming Logistics Innovation
What is noteworthy in logistics innovation?  Several keys to success include:

  1. Interestingly, blockchain arose again.  It could completely change the landscape, so it’s worth paying attention.
  2. Next generation technology and machine learning – there is more and more discussion on this topic everyday.  This gets into artificial intelligence, as well.   
  3. Autonomous vehicles – last we heard, it will be here by 2020.  Time flies – undoubtedly, it will be here before we realize it.  There is vast opportunity to address a critical component of speed in the supply chain – keep trucks moving more frequently to deliver goods more quickly in a safe and automated way with minimal human intervention.  It isn’t all theory; there are road tests being performed in Southern California in conjunction with governmental entities.
  4. Capacity aggravation / visibility – there is a large potential for this topic.  One example is in reviewing large amounts of data for carriers.  Convoy has built an app to match trucking companies with shippers that need to move freight.  The speaker talked about how they could even tell which trucker might be interested in a particular route or to get home for a special occasion.  Very interesting!

Disruption and Progress
There is vast disruption with emerging technologies in this rapidly growing $8 trillion dollar industry.  Perhaps we should pay attention.

 



Why Care About Rail?

May 8th, 2017

This past weekend, my APICS (premier association for supply chain and operations professionals) Inland Empire chapter had its spring executive panel and networking symposium on the topic of “Disruptive Innovations in Logistics”. We had an amazing panel of experts covering trucking, rail, import/ export, distribution and policy. It was clear that rail can have a profound impact on logistics, and there is much more involved in rail than obvious at first glance.

rail industry

For example, Union Pacific (represented on our panel) and BNSF are the two core freight rail lines supporting the U.S. There is an amazing amount of disruption and innovation going on in the rail industry to increase fuel efficiency, decrease emissions, enhance safety and improve outcomes for customers. For example, the new train configuration emits 15% less emissions/improves fuel efficiency. There are initiatives going on to stop any train from having an accident with any other train technologically. However, it is never as easy as it sounds. Will the tracks support it? Will the technology and satellites support it? Will the infrastructure support it? There is an amazing amount of money being invested as well. For example, a tier 3 locomotive costs around $1.5 million whereas a tier 4 environmentally-friendly locomotive that also maintains power and performance is double that amount.

What Should We Consider and/or What Impacts Could Arise?

You might wonder if rail matters to you. For the vast majority of companies, rail will impact the end-to-end supply chain in some manner which will impact them. On Friday, I met with a client who was re-evaluating their supply chain network. Rail is and will remain a key aspect of their network because it is an efficient way to transport goods across the country in combination with trucks, ports, etc. In this case, they transport finished goods; however, in many cases, it might not be that direct (and obvious). Many of our clients’ suppliers use the rail system extensively. When I was a VP of Operations and Supply Chain, rail was one of the modes of transportation we utilized (as it was lower cost and reliable, albeit a little slower), and of course, our suppliers definitely used it as well. Undoubtedly, it will impact you in one way or another.

Thus, it is helpful to be aware of what’s going on in the rail industry. Stay in tune with what issues are affecting your logistics system as these topics will impact costs, service and visibility at a minimum. Also, what disruptions are likely to occur? Are you ready for them? Are there risks associated with these areas? Certainly, natural disasters can have a profound impact, let alone strikes, accidents, etc. Within the last year, the freight rail systems largely came to a halt in Southern California due to fire. What backup plans do you have? And, do you understand how you are impacted by the rest of your logistics systems?

 



Lisa Anderson Earns New APICS Certificate

February 1st, 2017
Lisa Anderson

LMA Consulting Group’s Lisa Anderson earned an APICS Certificate in Logistics, Transportation and Distribution, which represents mastery in high level logistics, domestic and international.

Lisa Anderson MBA, CSCP, president of LMA Consulting Group has earned her APICS Certificate in Logistics, Transportation and Distribution (CLTD) credential. APICS, the premier professional association for supply chain management, offers education and certification programs for supply chain and operations professionals. The CLTD examination tests mastery of high level logistics knowledge and skills, encompassing domestic and global markets. The designation requires maintenance every five years and indicates an adherence to best practices and advanced practices in logistics.

“Even with over 25 years of experience in the industry, I’ve learned a lot in the process of preparing for this exam,” shares Lisa Anderson. “The exam covers a broad range of material from the traditional logistics, transportation and distribution topics to global logistics considerations, logistics network design and reverse logistics and sustainability. We are fortunate to have organizations like APICS to continually elevate our skills and stay on top of relevant trends in the industry to not only give employers standards with which to measure employees, potential employees and partners but to provide ideas and strategies that drive bottom line business results. It is quite a privilege to add CLTD after my name and to be recognized for this expertise.”

Anderson’s membership in APICS extends beyond her own continuing education and professional development. She also serves as President for APICS Inland Empire Chapter, which can be found at www.apics-ie.org, and as Chair of the West Coast Student Case Competition, which can be found at www.apicscasecompetition.org. Anderson has also been recognized with the Milt Cook award for the APICS Southwest district which is the highest award for service and dedication to the District and principles of APICS. APICS is the largest international supply chain professional organization with over 37,000 members and its mission is to foster the advancement of end-to-end supply chain management through a body of knowledge, innovative research, systems, and methods to create value for customers, members, and organizations. For more information or to join, visit their website at www.apics.org