Tag Archive: logistics

The Global Logistics Landscape

February 15th, 2019

In the past two weeks, I attended the CSCMP State of Logistics event, am preparing for the Future of Supply Chain & Logistics reception event as part of the leadership team and have debriefed with LMA Associate, Elizabeth Warren who attended the State of the L.A. Port and the State of Long Beach Port events. To summarize, I’ll borrow from the Port of L.A.: “Busier, safer, greener”.

Still number 1 and 2 in the U.S., the ports of Los Angeles and Long Beach increased volume last year to 9.5 million TEUs (twenty-foot equivalent units) and 8.1 million TEUs respectively.  With the threat of tariffs, there was a surge of imports around the holidays, creating record-breaking days in both locations and the second busiest month in history at Long Beach.

Significant progress has been made in terms of air emissions. From 2005 to 2017, diesel particulate matter has decreased by 88%; nitrogen oxide has decreased by 56%; sulfur oxide decreased by 97%; and greenhouse gas by 18%. In terms of targets, there is a goal to reduce greenhouse gasses by 40% in 2030 and 80% in 2050. Certainly, California leads the way when it comes to green and sustainability.

Logistics is around 7.7% of GDP or $965 billion. It has increased around 20% since 2006 yet decreased as a percentage of GDP by 30%. In comparison to other countries, we are far lower with Japan the closest around 11% and China the furthest around 18%. E-commerce is increasing around 15% per year, and it carries high supply chain costs around 25-30% of e-commerce sales.

All modes of transportation were up (airfreight, rail, trucking)! With that said, trucking is 76% of transportation spend and is the 100 pound gorilla. Rates have been on the rise, capacity is tight and shippers have to be more proactive. There are lots of technologies being explored but no near-term, viable solutions to resolve the issues. Again, similar to the ports, there are countless conversations about sustainability.

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

Global logistics is relevant to GDP and to every business that produces, distributes and sells products. Whether an aerospace manufacturer with multiple outside service steps all requiring transportation or Walmart, requiring a supply chain sourced both locally and from afar as well as grocery delivery on the customer side, without logistics, business will cease.

In today’s Amazon-impacted marketplace where quick turnaround, short lead times and frequent order changes are the norm, re-thinking your manufacturing and extended supply chain footprint is becoming a necessity. Whether re-evaluating make vs. buy decisions, re-configuring sales channel structures or revising inventory fulfillment practices, logistics is one component that can no longer be an afterthought.  

In our view, those clients with a resilient supply chain will thrive in this new normal business environment.

To learn more about how to create a resilient supply chain to navigate disruption and achieve peak performance, check out our new series or contact us for customized expertise.



Guest Blog by Jyoti Sharma

January 22nd, 2019

3 Ways AI is Transforming the Supply Chain

Artificial intelligence is increasingly becoming a vital part of the leading supply chain companies and is transforming the supply chain system at a very fast rate, even though many companies aren’t ready for it. The new inventions in the logistics IT solutions & various supply chain technologies are leading the organisations to leave their mark of presence in the race of digitisation. The inculcation of AI in the supply chain will help in collecting the data from various different sources and generate that intelligence, which will further help in making the predictions based on the historical pattern of that particular data. This will help in a smooth running of a cognitive supply chain.

The following trends are responsible for transforming supply chain business:

              1. Autonomous vehicle

Various Automotive Industries that are using artificial intelligent applications involve driverless cars that have received the most attention during the rise of this era. Driverless cars are no more a dream. With the development of technology where powerful computers, GPS systems and other small but distinct notable improvements have come up, Driverless cars are no longer a dream. Making all the procedures technology pro and highly efficient.

              2. Robotic solutions

Robotics solution is the one taken up by many distinctive companies for managing warehouse automations. Companies are using artificial intelligence to forecast what order inventory will arrive and leave the warehouse, allowing the pallets to be placed in the correct positions, boosting efficiency in moving products. Such technologies work best under the influence of efficient warehouse management system only.

            3. Drone deliveries

The popularity of drones is swiftly increasing across various industries like e-commerce and logistics. But still, the growing number of drones is posing new challenges like increasing air traffic, laying optimum air routes, dealing with emergencies like collision and managing drone swarms, among others etc. AI enabled drones are eliminating the last mile delivery challenges as it allows drones and other machines to make decisions and operate on their own on your behalf. AI enabled drone delivery is going to be very beneficial for the local deliveries.  

AI is driving the evolution of digital supply chain networks. As we step into the future, there are various AI powered supply chain analytics softwares that empower you to make decisions proactively based on the diverse data across your supply chain. It helps in making your supply chain responsive and enables you to have a real-time control on your supply chain.

This initiative can help supply chain managers to be more dynamic and efficient in designing strategies. Investing in AI is an important next step for supply chain companies looking to lower costs and improve productivity. Supply chains can also use AI to minimize the repetitive manual tasks and begin automating processes. This can enable the companies to reallocate time and resources to their core business.

Author Bio-

I am a budding and aspiring blogger and my area of interests are Supply Chain, Logistics, Retail Logistics, international Freight etc. Being a writer by profession and by choice I like to contribute to various quality websites especially those who talk about my area of interests.

We grow by making people happy and successful.

Jyoti Sharma

Consultant/Writer

Holisollogistics.com



Supply Resiliency: Video Interview on Disruption in Logistics

December 4th, 2018

Next in our supply chain resiliency value series, we are excited to share an interview with BJ Patterson, President of Pacific Mountain Logistics.  Thanks to B.J. for sharing his expertise on the Manufacturing Summit’s panel “Amazon Effect: Pass or Play – the New Sales & Distribution Game and How it Affects Manufacturing”.   

B.J. is responding to a question related to supply chain resiliency on disruptions in logistics.  In essence, the key question is: How to maintain margins throughout the supply chain when:

1) We ship a single item vs. a pallet of items in terms of warehousing/material handling inefficiencies

2) Customers’ orders require many more truck trips than ever before

3) Truck space is at a premium and we are shipping a lot of air since Amazon-like shipments often have 1 item in a large box on a truck.  

Certainly, there are no easy answers.  However, we must be thinking about how we’ll create supply chain resiliency so we can thrive with these changing market conditions.

 


With an increasing frequency, supply chain partners are pulling together to find solutions to these types of challenges.  Moreover, the strategic use of data is at a premium. If you can better coordinate all of these ever-changing market conditions to gain visibility and efficiencies within your extended supply chain, you just might take the lead in your industry.  

Our most successful clients don’t wait for these disruptors to crush them.  Instead, they are always looking for potential disruptors and searching for solutions.  They take proactive approaches to take the lead position instead of disappointing customers in an era where the customer experience is of paramount importance.  

What are you doing to navigate these logistics disruptors? We are always interested in feedback and ideas to share.

 



The Ladies of Logistics & Global Trends

October 9th, 2018

Thanks to Elizabeth Warren for hosting the informal Southern CA group, the Ladies of Logistics (LOL).  We had a fabulous time and made amazing connections.  Where else can you go and see every key connection related to trucking, the ports, freight forwarders, logistics, global trade and all related parties (such as education partners, the media etc.)?  I had great conversations with old friends and I met new colleagues. Business is more successful – and fun- when we come together to celebrate and connect.

 

 

 

 

 

Where do you go to find out what’s happening with your industry?  When it comes to the global marketplace, there were insightful conversations at LOL with perspectives from the following:

  1. Recent graduates from the global public policy program at USC/University of Hong Kong
  2. Freight forwarders
  3. Several different roles related to the ports
  4. CSULB Center for International Trade & Transportation
  5. BCO (Beneficial Cargo Owner)
  6. Logistics industry professionals
  7. Public policy professionals
  8. And many more.  

I learned quite a few interesting trends which I’m planning to turn into episodes of my new series, “The Resilient Supply Chain”.  How do you stay on top of global trends?

One tip to implement this week:
There are many ways to stay on top of global trends (or any trends you’d like to keep track of that relates to your industry).  You can start immediately by implementing any of the following strategies:

  1. Attend a networking event such as LOL
  2. Read an industry magazine such as the Journal of Commerce.
  3. Participate with a trade association such as APICS-IE, ISM, CSCMP and more (all of which were represented at the LOL event). By the way, if you are interested in global trends, put APICS-IE’s executive panel & networking symposium on “Advancing Innovation & Navigating Global Trends” on your calendar.
  4. Ask your colleagues, customers and suppliers.  You’d be surprised what you can learn by asking a few key questions!
  5. Attend a chamber of commerce or related event that focuses on your area of interest.  For example, in Southern CA, the L.A. Chamber and the IEEP both focus on logistics.
  6. Do some interest research.
  7. And many, many more.

Just choose one and get started!

 



The Resilient Supply Chain: Global Trade Unrest

September 30th, 2018

In today’s Amazonian environment, the customer experience is of paramount importance.      Nothing else matters if the customer isn’t happy. Thus, all the conversations going on about trade really just come back to the customer.  What is the best way to service your customers?

 

 

In manufacturing circles, there are many elements converging to strengthen manufacturing in the United States:

  • There are lots and lots of customers in the U.S. and they all want products and services delivered rapidly (making it less conducive to producing half way around the world).
  • Customers change their minds frequently and last minute changes aren’t conducive to long transit times.
  • The new tax law has made the tax rates much more comparative to other nations.  
  • Deregulation has definitely made manufacturers more on par with other nations.
  • Technology improvements have made it more cost effective to produce in the U.S.

Globally Interconnected
Even though manufacturing is surging in the U.S., we live in a globally interconnected world.  Very few, if any, clients source 100% of all materials within the U.S. If you go to suppliers twice removed, you’ll definitely be in global territory.  Thus, global trade remains a key issue.

Tariffs
In logistics circles, there is a lot of concern about the impacts of tariffs on global trade.  Will customers still bring in the same level of imports? If not, how will that impact the ports, distribution centers and transportation?  

Interesting that it hasn’t slowed down yet. The ports are having a record breaking year. We’ve seen price increases start to occur as they are passed on to the next person in the supply chain.  However, the question remains – is this good or bad? And will it substantially change the supply chain in any way?

Global Trade
Certainly there are a lot of heated discussions surrounding global trade.  We have clients who are positively impacted because it just makes them more competitive and on par with the rest of their industry.  And we have clients who are up in arms because their raw material prices are increasing and they are concerned about how to pass it on to their customers.  Will this put them at a disadvantage vs. a competitor who doesn’t source from overseas? Or does it just even the playing field?

Strategic Questions and Decisions
Strategic decisions are beginning to be impacted as well.  For example, Ford decided to not produce a new small car in China.  With the 25% import tariffs, it no longer made financial sense. A few clients are thinking about whether to expand into Mexico and the U.S.  There is uncertainty with NAFTA . However, the experts believe something will carry forward. Perhaps with a resilient supply chain, the key is to not guess and focus on your customer.  If your customers are in the U.S., Mexico is closer to the U.S. than China. That is a fact that won’t change. One thing is definite – things will continue to change and evolve.

Have you built resiliency into your supply chain so you can successfully navigate ever changing business conditions?