It is that time of year again. The 28th Annual Council of Supply Chain Management Professionals (CSCMP) 2017 State of Logistics Report, published by A.T. Kearney, is out. In the years since the Great Recession, the report has shown growth throughout logistics and a recovery through measurement of logistics spending as a percentage of U.S. gross domestic product (GDP).
Manufacturers have always struggled to know their customers. But, modern businesses have grown to encompass an omnichannel sales opportunity. Customers can place orders online, by phone, in person and in nearly any other means desirable. Unfortunately, this means manufacturers face an even greater challenge, as more customers translate into greater use of customer service.
Automation sales declined throughout 2016, but industry experts believe a major shift toward third-party companies is coming, reports Patrick Burnson of Supply Chain Management Review Manufacturers need to increase production without increasing overhead costs, and outsourcing technology to 3Pls is the perfect solution.
The high-revolution has given emerging markets the opportunity to become fully developed, increasing the number of consumers and manufacturers. For existing businesses and shippers, this means more competition and demand for lower costs. Meanwhile, the increasing number of regulations and requirements on shippers has created a paradox between saving money and still meeting all requirements.
Unless your organization has been absent from the takeover of TMS in the conversations of online and print media, you have likely encountered plenty of reasons why a transportation management system (TMS) benefits shippers. Unfortunately, the information is not always clear, and figuring out if the investment into a TMS is worth it can be even more frustrating.
“What can you do to improve your company?”
That is a loaded question, loaded with innuendo, desire, financial concerns, questions about the state of the road and weather and much more, but the ways you improve your company are becoming easier to see. Modern, cloud-based analytics systems within transportation management systems (TMSs) have redefined how you strive for continuous improvement.
Most shippers have existing vendor compliance programs in place within their vendor inbound logistics guide. Unfortunately, the traditional logistics of sending out paper guides and even keeping updated online versions has grown complex and difficult to control.
Most transportation costs in a company arise from inbound logistics cost. If other words, the costs associated with transportation of items from vendors make up the biggest portion of will transportation costs, reports Amy Roach Partridge of Inbound Logistics. Part of the problem lies in misconceptions around inbound logistics, including manual, data-intense processes and added stress.
Modern shippers must oversee thousands of individual processes and activities. With the added pressure to lower costs to end-users, your customers, it’s no surprise that the need for increased scrutiny and cost reductions among inbound logistics partners, your vendors, has gone rogue.
Third-party logistics providers are evolving in the wake of changing politics, increased public scrutiny and demand for more value-based, not asset-based, services.