Supply Chain Solutions, Inc. http://lgbrand.posterous.com supply chain management and improvement posterous.com Wed, 04 Jan 2012 10:50:00 -0800 SCS's Supply Chain Tools Keeps the Inbound Flow in Harmony http://lgbrand.posterous.com/scss-supply-chain-tools-keeps-the-inbound-flo http://lgbrand.posterous.com/scss-supply-chain-tools-keeps-the-inbound-flo

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Tue, 11 Oct 2011 05:48:13 -0700 ISM U.S. Manufacturing Index http://lgbrand.posterous.com/ism-us-manufacturing-index http://lgbrand.posterous.com/ism-us-manufacturing-index

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Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Wed, 05 Oct 2011 16:46:32 -0700 SCS concurs "even with threat of recession... Things are looking up for 3PLs" http://lgbrand.posterous.com/scs-concurs-even-with-threat-of-recession-thi http://lgbrand.posterous.com/scs-concurs-even-with-threat-of-recession-thi

PHILADELPHIA, Oct. 4, 2011 – Today, the 18th Annual Survey of Third-Party Logistics Providers revealed logistics companies experienced improved economic conditions in 2010, with 88 percent of companies surveyed in North America meeting or exceeding their revenue projections, as compared with only 50 percent in 2009. The survey is underwritten by Penske Logistics, a leading provider of third-party logistics services.

The survey is being presented today at the Council of Supply Chain Management Professionals Annual Global Conference by survey author, Dr. Robert Lieb, Professor of Supply Chain Management at Northeastern University, and Joe Gallick, Senior Vice President of Sales for Penske Logistics. The findings analyze responses from 36 third-party logistics company CEOs across North America, Europe and Asia-Pacific whose companies were responsible for generating approximately $58 billion in revenue in 2010.

Economic conditions appeared to slightly improve for third-party logistics companies surveyed in 2010 in North America. None of the companies were unprofitable and none of the CEOs believed the regional third-party logistics industry operated at a loss for the year. In Europe, economic conditions continued to be challenging for third-party logistics companies with only 55 percent of companies surveyed meeting or exceeding their revenue growth projections for the year, as opposed to 90 percent of companies surveyed in Asia-Pacific. Growth projections are most optimistic in Asia, with companies expecting to grow 15.8% in the next year, as compared to 10.8% expected in North America and 8.4% in Europe.

“CEOs continue to grapple with industry dynamics such as a stagnating economy, pricing pressures, rising costs and the impact of regulatory changes,” commented Lieb. “These are similar to the trends we’ve been seeing in years past, and we are confident that the industry can adapt.”

“This year’s survey indicates the logistics industry has largely adjusted to the new economic realities and are now investing in growth,” stated Gallick. “Companies are leaner and more adaptive than just a few years ago. Today, logistics companies are better positioned to help serve their customers as catalysts for supply chain transformation and innovation, which ultimately drives their own growth prospects.”

European and APAC Results

Both European and Asia-Pacific CEOs reported a shortage of managerial and operational talent in the industry as one of the major problems in their regions. In Europe, marketplace concerns about stability of the third-party logistics industry were also cited. The Asia-Pacific market is expanding, according to the survey findings, with CEOs seeing a variety of growth opportunities in the region, including increased volumes in China and India. The report also cited more extensive road transport services to support manufacturing in China as it moves inland. The most significant development in the APAC region for third-party logistics services during the past year was the diminishing role of Guangdong and Hong Kong as manufacturing centers, with manufacturing shifting to other low-cost countries and to China’s Western Provinces. Demand for “all-in-one” supply chain services increased in 2010, as the industry in Asia-Pacific becomes more sophisticated.

Major Supply Chain and Logistics Industry Trends and Insights

Revenue Projections Improve

With few exceptions, the CEOs are more bullish about the financial prospects of their companies over the next one and three year periods.

• One-year company revenue growth projections were 10.8% for North America (10.4% in 2010), 8.4% for Europe (7.2% in 2010), and 15.8% for APAC (22.5% in 2010).  The average three-year company growth projections were 10.3% for North America (10.6% in 2010), 9.1% for Europe (8.3% in 2010), and 14.6% for APAC (19.5% in 2010).
• One-year regional 3PL industry revenue growth projections averaged 6.8% for North America (7.3% in 2010), 6.1% for Europe (4.8% in 2010), and 9.0% for APAC (15.4% in 2010).  The average three-year regional 3PL industry growth projections were 8.0% for North America (7.8% in 2010), 6.3% for Europe (5.4% in 2010), and 10.3% for APAC (12.9% in 2010).
• Twenty-eight of the 36 CEOs surveyed reported their companies were profitable during 2010, with three reporting they broke even, and three reporting their companies were unprofitable.
 
Outlook for Logistics Mergers and Acquisition Activity (M&A)

• Only five of the 36 CEOs reported their companies were involved in significant M&A activity in their regions during the past year.
• Most believed the 3PL consolidation movement will continue in their regions.
• CEOs in all regions expect less than 9% of their companies’ average annual revenue growth to come from M&A over the next three years.

Disruptions from Japan Tsunami and Earthquake Cause Rethinking

• 25% of the North American 3PL CEOs reported that some of their customers had experienced a loss of sales in Japan. Thirteen percent of the European CEOs reported similar experiences, as did 50% of the CEOS surveyed in the APAC region.
• 88% of the 3PL CEOs included in the North American and European surveys reported that some of their customers had experienced a disruption of supply. 80% of the CEOS in the APAC region also reported that that was the case.
• 31% of the North American 3PL CEOs reported that some of their customers had experienced supplier failures as a result of the tsunami/earthquake. 50% of the CEOs involved in the European survey and 30% of those involved in the APAC survey also reported that to be the case.

Environmental and Sustainability Investments Continue

Despite the volatility of the global economy, the 3PL industry’s involvement in environmental sustainability issues continued to expand.

• Sixteen of the 36 CEOs reported their companies launched new sustainability initiatives during 2010.
• Nineteen CEOs reported expanding existing sustainability projects.
• The percentage of existing customers asking third-party logistics providers to analyze their supply chains in terms of environmental impact/cost were 8% for North America (15% in 2010), 8% for Europe (7% in 2010), and 7% APAC (9% in 2010).
• “Green” capability is ‘infrequently’ a major factor in attracting and retaining clients, according to 86% of CEOs surveyed.
 
Social Media Plays a Growing Role

The third-party logistics providers are generally optimistic about the value of social media activities moving forward, despite the impact of these activities having been limited to date.

• 69% of companies believe social media will become increasingly important in 3PL industry
• 64% of companies have LinkedIn accounts 
• 47% of companies have Facebook pages 
• 36% of companies have Twitter accounts 
• 28% of companies post videos on YouTube 
• 17% of companies surveyed have blogs
 
Survey Design

Thirty-six CEOs completed surveys via an Internet-based questionnaire during the summer of 2011.  Companies participating in the annual survey included: Cardinal Logistics, DSC Logistics, DHL Exel Supply Chain, Genco Supply Chain Solutions, Kuehne+Nagel Logistics, Menlo Logistics, Penske Logistics, Schenker, Schneider Logistics, Transplace, UPS Supply Chain Solutions, UTi Integrated Logistics, Caterpillar Logistics Services, Agility Logistics, Werner Logistics, Yusen Logistics, MIQ Logistics, CEVA Logistics and Wincanton.

About Penske Logistics
Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing. With operations in North America, South America, Europe and Asia, Penske Logistics is a leader in supply chain management and logistics services to major industrial and consumer companies throughout the world. Penske delivers value through design, planning and execution in transportation, warehousing, and international freight forwarding and carrier management. Visithttp://www.penskelogistics.com to learn more.
 
About Northeastern University’s College of Business Administration  
Northeastern University College of Business Administration, established in 1922, provides its students—undergraduate, graduate and executive—with the education, tools and experience necessary to launch and accelerate successful business careers. The College credits its success to expert faculty, close partnerships with the business community, and its emphasis on rigorous academics combined with experiential learning.  The college also offers graduate and undergraduate concentrations in supply chain management, as well as graduate certificates in supply chain management. The College is highly ranked by several prestigious publications. BusinessWeek ranks the undergraduate program 32th in the U.S., #1 in internships, and #19 in the student survey in its 2010 “Best Undergraduate B-schools.” U.S. News & World Report ranks the College’s Bachelor of Science in International Business program #13 in the country. Princeton Review and Entrepreneur magazine ranked the undergraduate business program 14th most entrepreneurial in the U.S. For more information about Northeastern University's College of Business Administration, visit http://www.cba.neu.edu/


Leslie G. Brand III | Chief Executive Officer|  
Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Wed, 05 Oct 2011 04:41:13 -0700 Congress expected to pass free trade deals with South Korea, Colombia, Panama http://lgbrand.posterous.com/congress-expected-to-pass-free-trade-deals-wi http://lgbrand.posterous.com/congress-expected-to-pass-free-trade-deals-wi

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Congress is expected to pass a long-pending free trade agreements with South Korea, Colombia and Panama on Monday afternoon.

The agreements, which were negotiated in the Bush administration, have strong support in a Congress eager to boost jobs through exports to foreign markets.

“These trade agreements will create tens of thousands of much-needed jobs here at home and boost our economy by billions of dollars, said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. He called on the House to approve companion legislation reauthorizing the Trade Adjustment Assistance program, which the Senate attached to another trade bill and returned to the House.

House Speaker John Boehner said the House will quickly vote on the three FTAs and TAA. He said Congress had “overcome a crucial hurdle to helping put Americans back to work. While the delay was unacceptably long and likely cost jobs, I am pleased the Obama Administration has finally done its part and sent these important trade pacts to Congress.”

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Mon, 26 Sep 2011 11:50:00 -0700 Gas tax hikes ruled out, House chairman tells industry groups http://lgbrand.posterous.com/gas-tax-hikes-ruled-out-house-chairman-tells http://lgbrand.posterous.com/gas-tax-hikes-ruled-out-house-chairman-tells

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House Transportation and Infrastructure Committee Chairman John Mica told industry groups he is looking for more revenue to boost his planned transport spending measure, but that it cannot include a hike in the federal gasoline tax.Mica, R-Fla., told stakeholder groups on Thursday that he was cleared by House GOP leadership to find an additional revenue beyond what's now coming into the Highway Trust Fund, said a congressional source said. The Transportation Weekly newsletter reported Mica wants to find $15 billion more to pay for a long-term transportation bill, without raising the gas tax.That would be a big change from earlier this year, when Mica unveiled an outline of proposed legislation to spend $230 billion over six years for surface transportation based on anticipated trust fund receipts. The House Appropriations Committee later voted for those spending limits as well.That is well below current levels and backers of more robust transportation spending sharply criticized GOP spending limits for road projects, saying they would wipe out many construction jobs and worsen U.S. infrastructure. Those groups also praised an early Senate vote that would keep funding road and bridge programs at current levels, and renew a popular federal grant program that the House would have let lapse.This week, a high-powered group of freight shipper CEOs told top leaders of the House and Senate that businesses need Congress to make stronger infrastructure investments. The executives said such spending is important to help the economy grow and U.S. firms to export their goods.A congressional source said Mica and John Duncan, R-Tenn., who chairs the highway subcommittee, told groups that House leaders are now “committed to looking for additional revenue” for a long-term bill, which would also reform and consolidate some transport spending programs to get more bang for the buck.

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

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Sun, 18 Sep 2011 06:36:04 -0700 US Manufacturing Index Slips Closer to Contraction http://lgbrand.posterous.com/us-manufacturing-index-slips-closer-to-contra http://lgbrand.posterous.com/us-manufacturing-index-slips-closer-to-contra

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PMI falls to lowest level in two years, but still shows factory growth

The Institute of Supply Management’s U.S. manufacturing index slipped back 0.3 percentage points in August to its lowest point in two years, registering slim growth in the sector despite economists’ forecasts that the measure would turn negative.

The PMI fell back to 50.6 percent, leaving it down nearly 11 points from the 2011 high set in February, ISM said in a report released Thursday that showed “concern and caution” over the direction of the U.S. economy.

But the reading above 50 percent still showed U.S. factory activity growing despite worries of an economic slowdown. The index for new orders also improved 0.4 percentage points, although the reading of 49.6 percent still showed new orders for manufacturers contracting for the second straight month.

By the Numbers: ISM Monthly U.S. Manufacturing Index Vs. ISM U.S. Production Index

The ISM’s measure for production also worsened in August, declining 3.7 percentage points, the lowest reading for that measure since May 2009 and the first contraction in production in 26 months.

Bradley J. Holcomb, chair of the ISM manufacturing business survey committee, said the August results showed uncertainty amid reports of slowing demand in the U.S. and other markets.

“The overall sentiment is one of concern and caution over the domestic and international economic environment, which is affecting customers’ confidence and willingness to place orders, at least in the short term,” Holcomb said.

The ISM’s inventories index advanced three percentage points to 52.3 after declining in July, and customers’ inventories also edged up 1.5 points.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Thu, 15 Sep 2011 08:59:00 -0700 Shipping costs will keep rising in 2012 http://lgbrand.posterous.com/shipping-costs-will-keep-rising-in-2012 http://lgbrand.posterous.com/shipping-costs-will-keep-rising-in-2012

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Trucking rates will climb 6% and possibly higher, following a 6.3% jump this year. Higher costs are being driven largely by the dearth of highly qualified truck drivers. Rail freight rates, up 5% or so, as firms keep moving cargo from trucks to rail. Air cargo … 3% higher than this year, assuming that jet fuel remains stable. Airfares, ditto. Look for the combination of base fares and ancillary fees for everything from seats with more leg room to blankets to climb as much as 6%. Figure on fewer and more crowded flights, too, in light of coming capacity cutbacks.

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

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Wed, 07 Sep 2011 10:19:19 -0700 Big Shippers Respond to Maersk's Call for Change http://lgbrand.posterous.com/big-shippers-respond-to-maersks-call-for-chan http://lgbrand.posterous.com/big-shippers-respond-to-maersks-call-for-chan

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GT Nexus Shipper Council aims to use technology to improve reliability. The council said it is committed to coming up with specific ideas that can be implemented quickly to the benefits of both shippers and carriers. Some of the ideas on the table include:

     Managing allocations and improving forecasting on a secure neutral platform.

     Streamlining documentation and substitute electronic bills of lading for paper to act as "one version of the truth.”

     Using technology to improve business to business processes between shipper and carrier.

     Collaborating "in the cloud" by using the GT Nexus virtual community to its full potential.

“Reliability, predictability and simplicity creates value,” “We believe that collaboration fused with neutral, industry wide technology adoption will help achieve the vision.

The council said its members are contacting carrier executives and hosting meetings to develop specific plans. The group will then determine what it can do to collectively address some of the shipper side changes that the carriers need to operate better.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Wed, 31 Aug 2011 06:37:00 -0700 World's first smart virtual store opens in Korea, caters to Smartphone users http://lgbrand.posterous.com/worlds-first-smart-virtual-store-opens-in-kor http://lgbrand.posterous.com/worlds-first-smart-virtual-store-opens-in-kor

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Supply Chains become more interactive… Homeplus, the nation’s second largest discount chain, announced yesterday that it will open what it calls a “fourth generation retail store,” Homeplus Smart Virtual Store, at Seolleung subway station in southern Seoul today.

It says it’s the first of its kind in the world.

At a press conference yesterday before the official launch, Homeplus CEO Lee Seung-han said discount store chains must respond to rapidly changing consumer habits and behavior, and a new kind of virtual store will cater to skyrocketing Smartphone users in Korea

 

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

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Mon, 22 Aug 2011 05:56:24 -0700 You Might Have A Bad Warehouse…If The Cycle Count Doesn’t Add Up http://lgbrand.posterous.com/you-might-have-a-bad-warehouseif-the-cycle-co http://lgbrand.posterous.com/you-might-have-a-bad-warehouseif-the-cycle-co
By Kate Vitasek 

  This week’s Bad Warehouse comes to us from Gary Roghers, Logistics Manager for DuraTech Industries. A few years back Gary transitioned to a new position, managing warehouse and shipping operations.

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“It was the time of year for our annual physical count. This meant that we had customer service reps, office assistants, purchasing agents, shipping personnel and even janitors counting parts for an entire weekend. Everyone worked really hard and we completed the count and did the adjustments by the end of the day on Sunday.

“The problem was that our inventory was a bigger mess after the count then before we did it. The reason was that we had people working in an area that they either didn’t understand or felt that this was just a good way to pick up some extra overtime hours.” The accuracy of the finished goods inventory was around 85 percent, and the goal was about 95 percent.

“We had to fix this problem and fix it soon,” he said. He met with his shipping and warehouse personnel to discuss ways to: 1.) Fix the mess and 2.) Prevent it from recurring.

Eventually, they decided that to do a recount with the process owners—“the people who have to live with the inventory every day and who have to make those dreaded phone calls when the counts on an item are off. This would solve the first problem.

“Then we met again to determine a path that would allow us to keep the inventory on throughout the year instead of having it on for a little while in January.” They decided to do cycle counting on a daily basis, and roll through the entire warehouse every quarter.

Under the new process, Gary says, “We have hovered right around 95 percent for the past five years.”

He adds that “without a barcode scanning system in place and customers ordering in less than full package quantities we have a huge job of counting and the team pulls it off every quarter. My hat is off to this great group of people that not only came up with the plan to fix our problem but implemented it almost to perfection.”

Gary and his team hit on the best solutions to cope with the situation. They also followed WERC best practice guidelines by installing a system to count inventory on a cyclic schedule rather than once a year.

The WERC guide says that most effective cycle counting systems “require the counting of a certain number of items every workday with each item counted at a prescribed frequency.”  The main purpose of cycle counting is to "identify items with on-hand quantity errors, thus triggering research, identification, and elimination of the cause.”

Gary wound up handling a messy problem by solving it “by the book.”

I love your feedback - and love your contributions to share those bad warehouse stories to help educate the profession on what NOT to do, and maybe what to do if you’re not doing it.


Leslie G. Brand III | Chief Executive Officer|  
Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Mon, 15 Aug 2011 08:13:09 -0700 AFRICA ... Sourcings Next HOT SPOT http://lgbrand.posterous.com/africa-sourcings-next-hot-spot http://lgbrand.posterous.com/africa-sourcings-next-hot-spot

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With more shippers looking at Africa, some transport operators already are getting their services in place

Hans-Ole Madsen says the main requirements for doing business in Africa are patience and commitment. Shipping volume, for now, is just a bonus.

“When you operate in the developing world, it’s unrealistic to think that everything is shiny every day,” said Madsen, vice president of business development for Africa, the Middle East and India for APM Terminals. “We are committed to Africa, and are prepared to sweat it out.”

APM Terminals certainly is expecting shiny days in Africa in the future. The company has spent some $800 million over the past decade to modernize and expand nine container terminals and several inland facilities in eight West African countries, from Liberia in the north to Angola in the south.

That makes the company one of the largest investors among operators in shipping and logistics that are looking at the growing volume of trade out of Africa, listening to comments from shippers about the direction of low-cost manufacturing and setting the groundwork for growth in sourcing of goods beyond raw materials from the continent.

Real growth in manufacturing and container shipping through sub-Saharan Africa would mark a dramatic change in a continent all but written off in much of the developed world because of the seemingly entrenched instability, civil unrest, endemic corruption and unrelenting social problems across Africa’s map.

Yet democratic rule also is spreading across the continent in once-unlikely places such as Rwanda, and that comes as retailers, manufacturers and suppliers are plotting out low-cost factory sources in the coming years. With labor costs in China and other parts of Asia rising, some experts say, more conversations about long-term plans include Africa.

“We’re actually looking at major manufacturing sites in Africa,” Tommy Liu, senior vice president for Greater China at Li & Fung Logistics, told a Journal of Commerce conference on container shipping in Shanghai this summer. “This is the last place you’ll be able to find cheap labor for the next 20 years or so.”

Africa trade with Europe is far greater than it is with the United States and U.S. exports to Africa are nearly three times the volume of imports, based on container shipping volume measured by PIERS, a sister company of The Journal of Commerce.

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Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Fri, 05 Aug 2011 04:47:00 -0700 Untitled http://lgbrand.posterous.com/64019351 http://lgbrand.posterous.com/64019351

Analysts, Forwarders Doubt Peak Surcharge Enforcement

 

Carriers expected to hold off for several weeks while they gauge market

Lines will be hard-pressed to enforce peak season surcharges from Aug. 15 on Asia-U.S. lanes, said analysts and forwarders based in Asia.

“I don't think this will happen,” said Paul Tsui, chairman of the Hong Kong Association of Freight Forwarding and Logistics. “Business is very slow at the moment. I think the carriers will make the announcement but still hold off from enforcing (the surcharges) for at least two to three weeks, and wait to see how the market reacts and then decide what to do.”

Janet Lewis, regional head of industrials and shipping research in Asia at Macquarie Capital Securities, said she was “dubious” carriers would be able to enforce an increase amid overcapacity.

“Volumes on both Asia-Europe and trans-Pacific are up year-on-year and are likely to remain well ahead of last year's levels, but vessel supply is up more.”

However, she said the supply-demand balance could level out as the third quarter progressed. “Inventory levels in the U.S. are very low and there are indications that shipments will be strong in September/October,” Lewis said.

The Transpacific Stabilization Agreement said the peak season surcharge would be introduced from August 15 after a two-month delay.

But analysts said that load factors from Asia's main ports were still poor for carriers. As reported by JOC, the average spot rate for shipping a container from China to the U.S. West Coast is now at its lowest point in 20 months as the impact of excess vessel capacity continues to be felt even as the traditional peak season eastbound peak season looms.

Tsui admitted carriers could see more success with PSS in September but added that “lots of direct customers such as the big multi-nationals have already contracted to avoid PSS, so lines are most likely to target smaller shippers.”

“We will have to wait to see if they’ll even manage to implement a PSS this year at all, they have already reduced sailings and slowed ships, but the market has still not picked up even though volumes higher this year. There is just too much new capacity.”

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Thu, 28 Jul 2011 05:18:08 -0700 Customs Reports Progress on ACE http://lgbrand.posterous.com/customs-reports-progress-on-ace-16994 http://lgbrand.posterous.com/customs-reports-progress-on-ace-16994

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 Pilot testing of the ocean and rail manifest systems in the U.S. Customs and Border Protection’s Automated Commercial Environment is scheduled to begin early this fall, Cindy Allen, executive director of the ACE business office, said Friday. Allen said that successful performance of the new manifest systems will give Customs the opportunity to turn off the rail and ocean manifest systems in the 1980s-era Automated Commercial System, one of the primary goals in ACE development.

The first phase of testing began in May with 17 ocean carriers, four railroads, a customs brokerage and a service center providing data for testing. Allen said Customs is now inviting more participants for a second phase, which will begin after Aug. 1. Allen said that the pilot test will involve data in “production-level” volumes, or data flow comparable with ACE’s normal processing load. After September, Customs will invite three ports to use ACE for all ocean and rail manifests.

If the manifests pass all tests, Customs will formally accept the software from its prime contractor in January 2012, leading to a shutdown of the ACS manifests in June. Allen said that ACE is making progress in reducing paperwork with the perfection of a document imaging system that allows importers to electronically submit supplementary information to their entries.

Customs is also working on modernization of the Census Bureau Automated Export System, and making it a part of ACE. Allen said Customs is mindful of the need for maintaining the confidentiality of Census data, but it will also give Customs officers the opportunity to operate in a single system.  

Leslie G. Brand III│Supply Chain Solutions, Inc. 

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Fri, 22 Jul 2011 11:54:00 -0700 Unintended consequences http://lgbrand.posterous.com/unintended-consequences http://lgbrand.posterous.com/unintended-consequences

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The elimination of required cargo liability insurance by the FMCSA now forces shippers to independently verify the existence of the policy and nature of the coverage held by their carriers. Sound time-consuming? Our transportation law expert offers some practical advice. This year cargo liability insurance and the fact that as of March 21, 2011, motor carriers and surface freight forwarders (other than household goods carriers and household goods freight forwarders) are no longer required to have any cargo liability insurance at all.

 

The unintended consequences for shippers of these changes in the government’s regulatory scheme for motor carriers is that there is no longer a requirement for cargo liability insurance, they will overlook the unintended consequences at their economic peril.

 

To compound the problem, most cargo liability policies will have “endorsements”—the term the insurance industry uses for amendments or addenda to an insurance policy. As an example, “unattended vehicles” are typically covered by a cargo liability insurance policy, but often this coverage is then removed in an endorsement.

 

Conversely, cargo liability insurance policies do not typically cover losses resulting from a “change of temperature,” however an endorsement can add coverage for “breakdown or mechanical failure of a refrigeration unit.”

 

This leads to the third alternative: A telephone call to the agent who issued the policy for the trucker. The telephone call to the insurance agent will often lead, albeit informally, to a verification that there is, indeed, a policy and of the policy limits.

 

The advice for shippers when making the call to the agent is to “ask about what you are shipping.” For example, if you are shipping only lumber, you probably don’t need to worry about an exclusion for damage from rust. Another area of inquiry is the policy definition of “covered property.” For example, coverage for cell phones may not appear in exclusion, but if it is not included in the definition of “covered property” then indeed it will not be covered. 

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

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Wed, 13 Jul 2011 05:57:00 -0700 Rob Burch Joins Supply Chain Solutions, Inc. as President http://lgbrand.posterous.com/rob-burch-joins-supply-chain-solutions-inc-as http://lgbrand.posterous.com/rob-burch-joins-supply-chain-solutions-inc-as

Grand Rapids, Michigan – July 13, 2011 - Supply Chain Solutions, Inc. CEO Les Brand and COO Jim Ward today announced the appointment of Robert (Rob) Burch as President of Supply Chain Solutions, Inc. (SCS) and SCS’s affiliated companies.

In making the announcement Mr. Brand said: "I am delighted that Rob is joining Supply Chain Solutions Inc. He is an exceptional executive who knows how to expand the reach and relevance of our strong reputation and our SCS brand. As President, Rob will further advance our position in the industry and accelerate the expansion and innovation of our solutions.”

In all previous senior management positions, Mr. Burch has nurtured and aggressively expanded the organizations experience in private, public and private equity capital structures.  He has developed strong customer relationships to achieve top line growth for targeted products and customers.

Mr. Burch said: "I am honored to join Supply Chain Solutions Inc. SCS has a strong culture of excellence and leadership, and I look forward to working with the great team there to continue moving the company forward. It is a great privilege to rekindle my relationships in West Michigan and I look forward to expanding our relationship throughout SCS’s marketplace.

While CEO of Berkline LLC Mr. Burch oversaw all aspects of the business excluding capital formation. Prior to joining Berkline Mr. Burch spent 3.5 years as EVP of Operations at Simmons Bedding Company where he lead the a lean transformation in manufacturing and logistic operations and in management systems.   Prior to Simmons Mr. Burch spent 26 years with Steelcase and held a variety of senior management positions. 

Mr. Burch holds a CPIM certificate with the American Production and Inventory Control Society.  He has held board positions with the Tauber Institute for Global Operations, the Association for Manufacturing Excellence and Independent Bank of West Michigan.

Mr. Burch graduated with a BBA from the University of Michigan, Ann Arbor, Michigan

 

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

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Fri, 08 Jul 2011 09:57:40 -0700 Spot Market Truckload Rates Up 4.5 Percent http://lgbrand.posterous.com/spot-market-truckload-rates-up-45-percent http://lgbrand.posterous.com/spot-market-truckload-rates-up-45-percent

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Sequential increase tracks 7 percent drop in dry van capacity, says TransCore

Spot market truckload rates rose 4.5 percent in June from May, according to TransCore Freight Solutions, as truckload capacity dropped 7 percent. The company’s van freight indicators for June show the load-to-truck ratio declining 21 percent from May, while spot market freight availability rose 13 percent. TransCore’s spot market data reflects reports of a stronger shipping month in June, with some shippers accelerating shipments in early June to secure capacity.

The Cass Freight Index for U.S. shipping reached its highest level in three years in June, growing 4.9 percent from May. Shipments on TransCore’s DAT network of load boards typically peak in June, the company said. There were 3.8 loads per truck available in June. Year-over-year, dry van shipments were up 26 percent in June. However, spot market truck capacity was up only 19 percent from a year ago, lagging demand.  Spot market dry van rates were up 3.8 percent year-over-year last month. The national average linehaul rate for dry vans dipped in the first week of July but remained above May levels, according to TransCore’s Truckload Rate Index.

Load volume declined 1.9 percent week-over-week for dry vans in the week ending July 7, the load board operator and transportation technology company said.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Tue, 05 Jul 2011 12:28:00 -0700 How can QR codes help your business.. just scan to find out.. http://lgbrand.posterous.com/how-can-qr-codes-help-your-business-just-scan http://lgbrand.posterous.com/how-can-qr-codes-help-your-business-just-scan

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If you’re not yet familiar with QR codes, they’re similar to the barcodes used by retailers to track inventory and price products at the point of sale. The key difference between the two is the amount of data they can hold or share.

Bar codes are linear one-dimensional codes and can only hold up to 20 numerical digits, whereas QR codes are two-dimensional (2D) matrix barcodes that can hold thousands of alphanumeric characters of information. Their ability to hold more information and their ease of use makes them practical for small businesses.

When you scan or read a QR code with your iPhone, Android or other camera-enabled Smartphone, you can link to digital content on the web; activate a number of phone functions including email, IM and SMS; and connect the mobile device to a web browser.

Any of these desired functions are easily achieved by properly creating your QR code.  It’s a simple process of entering the appropriate data into the QR code generator, described below, and it all takes just a few minutes.

The ability of QR codes to connect people with each other and to multimedia digital content is very useful for businesses and consumers alike.

 

Regards, 

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand 

 

 

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Tue, 28 Jun 2011 12:27:32 -0700 Supply Chain Execution.. Focus on the following! http://lgbrand.posterous.com/supply-chain-execution-focus-on-the-following http://lgbrand.posterous.com/supply-chain-execution-focus-on-the-following

Faced with increasing pressure to cut costs, companies have re-examined how they source, store and deliver their products. To survive, a business’s ability to manage it’s supply chain must be exceptional.

Remember to…

1) Use a proven template. This is not to say that all supply chains should be approached with a ‘cookie cutter’ model. Rather, use the best practices as a foundation and then customize them to meet each specific logistics. 

 

2) Build upon deep expertise. Master distribution management, transportation management, cross-docking, network design and the unique aspects of customer requirements, drivers of profitability, challenges and trends for your industry segment.

 

3) Apply lean processes. In a lean culture, logistics teams can identify and eliminate waste in every process that occurs as an order is fulfilled. Lean tools, such as visual cues, problem solving jackets, and root cause analysis, result in shortened lead times, built-in quality and continuous improvement.

 

4) Make continuous improvement. Ongoing, incremental improvements – both small and large in scope – add up to a significant edge. An important tool for continuous improvement is Value Stream Mapping, which can be created for many aspects of the supply chain such as detailed workflow management, warehouse productivity, route optimization and total landed costs.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Wed, 22 Jun 2011 06:07:38 -0700 Supply Chains Face Increased Attacks http://lgbrand.posterous.com/supply-chains-face-increased-attacks http://lgbrand.posterous.com/supply-chains-face-increased-attacks

Report says shipping hubs, gateways at greater risk for cyber hacker, pirate, terrorist attacks

Global supply chains face increased cyber, hacker, pirate and terrorist attacks over the next 20 years with key shipping hubs and transport gateways most at risk, a report today said.

There is a 56 percent probability of attacks on transport chains according to 80 executives surveyed by PwC, a consultancy.

The executives, from 25 countries, said they are even more concerned with hacker attacks affecting their supply chains than they are with actual physical attacks.

“Logistics, as driver of globalization, will become the focus of [cyber attacks] in the years to come,” according to the report “Transportation & Logistics 2030 – Securing the supply chain.”

”A hacker could infiltrate the flight control system, for example, and randomly let airplanes fall from the sky. Or re-set the tracks in rail traffic and let trains crash.”

The supply chain has become much more complex and more accident-sensitive in recent years, said Klaus-Dieter Ruske, partner and Global Transportation and Logistics leader at PwC.

“Today 90 percent of the worldwide trading volume is concentrating on about 39 gateway regions.”

“If only a single one of these hubs fails, the economic consequences could be enormous after just a short period of time, and affect most economies around the globe,” Ruske said.

The world’s largest gateway is the Hong Kong-Shenzhen region, which handles 14.8 percent of the world’s ocean container and air cargo traffic.

Highly frequented shipping “chokepoints” with only one narrow transport link such as the Strait of Hormuz, and the Suez and Panama canals are potential targets too, according to Ruske.

Egypt already loses more than $640 million a year because shipping companies avoid the piracy-threatened Gulf of Aden and the Suez Canal.

Transport and logistics companies’ expenditure on security will rise in response to the heightened threat of attacks. “Capital investment on security, also on security of IT systems, will be one of the most important cost drivers of the logistics industry.”

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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Tue, 14 Jun 2011 06:44:43 -0700 The Catch-22 of Supply Chain Risk Management http://lgbrand.posterous.com/the-catch-22-of-supply-chain-risk-management http://lgbrand.posterous.com/the-catch-22-of-supply-chain-risk-management

The ultimate point of supply chain management is to help companies be cost competitive while maintaining the bare minimum of inventory consistent with achieving a targeted service level. Global outsourcing, reducing the number of suppliers you do business with, and using optimized planning to reduce inventory are common techniques companies use to accomplish a cost-effective supply chain.

But all of these things that make for a lean and mean supply chain can also cause a supply chain to become brittle and break in the face of disasters. Toyota, for example, is facing a large drop in market share because of the Japan earthquake.

Supply chain risk management says that you can avoid this outcome by having redundant factory lines in different geographic locations, using multiple suppliers, and carrying more inventory in locations around the world. These actions, of course, are the very opposite of what it takes to be a low-cost supply chain.

This double bind is most acute for companies that compete mainly on price rather than service or product attributes. If these companies practice the prescribed risk management practices, they might find themselves losing a little market share year after year to competitors that don’t engage in supply chain risk management. Eventually, the company becomes an afterthought in the market.

On the other hand, if a company runs a brittle, low-cost supply chain, the company may gain a little market share year after year until a disaster occurs. The firm then experiences a huge drop in market share all at once.

Now there are risk management practices that any company can adopt that do not fall into the category of a double bind. For example, a firm can do contingency planning upfront on who will do what when a facility goes down. The company can look for components widely used across its products that would put significant revenues at risk if the supplier of that component was to experience difficulties; for these components, the company should look at dual sourcing.

And companies can have preset playbooks in place for disasters that are more likely to occur. JDA (an ARC client) is doing product development in this area. For example, many retailers know that hurricanes are apt to strike the Gulf region every year during certain months. These retailers also know what products would be in demand when a hurricane hits, so they could carefully track hurricane forecasts and move the necessary inventory forward to key DCs before a hurricane strikes.

But for companies that differentiate mainly on price, the core practices associated with supply chain risk management will continue to represent a Catch-22.

Regards,

Leslie G. Brand III | Chief Executive Officer|  

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Phone: 616.554.8900 Ext: 106 | Cell: 616.836.7074 | Toll Free: 877.554.8900 | scsolutionsinc.com |Skype:lgbrand

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