Barking Dogs and Supply Chains with Chew Toys

Turns-out footwear is one of the most price-sensitive consumer products (Who knew?). Increasing production costs in China have motivated U.S. importers to source even more shoes in lower-cost countries including Vietnam and Indonesia. As these geo-markets’ prices rise, look for the next cost-opportunistic regions to erect factories and pull market share.

Didn’t realize the economic extent of our foot-covers (as I stare at my shoes in wonder…). Manufacturers, wholesalers, retailers, e-tailers – anyone with a supply chain – knows price sensitivities involved in moving product. Removing unnecessary cost is necessary as product margins tighten. And you can, painlessly, by having shipping data accessible and data mineable to optimize the goods’ trip, along with the freight bills audited for accuracy and paid, all by an independent resource. Data2Logistics comes to mind… It’s worth a chat with these folks, to discover the scope of your available savings, and hassle-avoidance associated with overly expensive shipping and back-end billing errors.

The Economic Might of Domestic Petroleum

Canadian National Railway indicated a profit of C$664 million in the third quarter, about 1 percent more than the C$659 million earned in the same 2011 period.  Revenue in the third quarter of 2012 was C$2.5 billion, up 8 percent over the third quarter of last year. The growth attribution: increased shipment of domestically-drilled oil.

The demonstrated power of the petroleum industry on geographical economies: domestic drilling, domestic transportation equates to potentially less costly supply chains. Depending on demand fluctuations, lower costs should ensue. The economics indicate this reduced cost ripple’s corporate and personal finance savings will largely be spent, spurring domestic economies.

Discounting geo- and eco-political interests, demand indicates prudence of local energy development. With oil’s current and ongoing usage being of necessity significance, and global supply and cost dependent on factors in flux, makes sense to drill, refine, transport and consume what’s available, locally.

Data2Logistics’ Leif Holm-Andersen Featured in Journal of Commerce, Supply Chain Shipping Marketplace Cost Savings Focus

Data2Logistics’ Leif Holm-Andersen, Executive Director of their Professional Services Group was featured in the Journal of Commerce article, Easing Trucking Capacity Gives Shippers Slight Edge by Senior Editor William B. Cassidy, published October 19th, discussing increased truckload carrier capacity available for supply chain shippers, and the potential marketplace impact.

“There’s definitely capacity in the market, though there’s still a driver shortage,” commented Holm-Andersen. “Trucking rates “right now are flat if not down a little bit.” Holm-Andersen indicated his surprised that more shippers aren’t aggressively pursuing lower rates. “There is an opportunity for shippers to reduce rates,” he said, while stressing the situation “is certainly nothing like it was when the economy tanked” in 2008. Still, “shippers need to take advantage of the market when they can.” Long-term capacity concerns may be preventing shippers from pursuing short-term pricing gains. Truck capacity may be in a “rough balance,” but that balance is “tenuous,” and shippers worry what will happen when the economy gains speed and demand rises.

Even better – hear it from Leif himself: contact ‘em via leif.holm-andersen@Data2Logistics.com.

India’s Shipping Container Volume Up 1.2 Percent – The Beginning of Big Growth for Us All?

Shipping container throughput at major ports in India grew 1.2% year-over-year from April through September, the first six months of the Indian Ports Association’s fiscal 2012-13.

Numerically speaking, cumulative traffic in the first fiscal half was an estimated 3.94 million 20-foot-equivalent units compared with 3.89 million TEUs in the corresponding months last year. The tonnage of containerized traffic increased 2.65 percent year-over-year to 60.9 million tons from 59.3 million tons.

India’s experienced growth as the ‘I’ of the emerged BRICs. Now there’s evidence of Big Growth, world power-type economic expansion.

The opening of India to international business investment on majority ownership scale in September was the expansive sign. Their motivation’s fiscally-driven: the country’s economy lost 67% of foreign direct investment in 2011, and is trending in that direction this year. Prime Minister Manmohan Singh summarized the decision, “I believe that these steps will help strengthen our growth process and generate employment in these difficult times.” Opportunity observed and optimized.

India’s a land of a billion consumers, rapidly expanding its B2B & B2C commercial infrastructure. If your organization isn’t currently involved in the market, you may be soon, directly or indirectly. As you make supply chain adjustments to suit, consult Data2Logistics for carrier’s route and pricing options, along with freight bill auditing for accuracy and convenient payment services, all for your shipping cost-savings as your India inroads increase.

U.S. Inbound Port Volume Forecast to Grow 10% in October – a Positive Consumer Economic Sign for Supply Chains, Retailers

Import cargo volume at the nation's major retail container ports is expected to increase 10% year-on-year in October, as merchants wrap up the annual shipping cycle for holiday merchandise, according to the monthly Global Port Tracker report. This year, that’s a big deal. It’s indication that domestic consumers appear confident to spend in Q4, and carry corresponding credit balances into next year. With consumer spending 70% of U.S. Gross Domestic Product, both purchasing decisions are decidedly positive economic points for retailers and their supply chains. Will this B2C momentum translate to B2B/C manufacturers in 2013?

Let’s factor manufacturing, distributing and retailing growth progressing into the upcoming year. As you plan your supply chain moves, keep cost conservation in-mind. Data2Logistics Professional Services Group helps remove fiscal waste throughout inbound and outbound transportation, with route service optimization, freight bill auditing for accuracy and bill payment services available as well, all from a single, convenient cost-saving source. Ship Smarter and Save.

Supply Chain Nearing

China-based computer maker Lenovo announced it’ll build a manufacturing line in Whitsett, NC in an effort to further tap the U.S. market.  This heightens a growing trend of foreign and domestic manufacturers setting up shop closer to buyers in their major geo-markets. Let’s call it ‘Supply Chain Nearing’ before someone gets a book deal with it… Not a new practice, but increasingly attractive for the manufacturer (lower unit costs), consumer (competitive pricing) and plant’s location (direct jobs, associated economic surge, local/state tax revenue, economic development awareness).

Moves like this mean significant supply chain adjustments. It removes a mode or two, but alters means. As a company’s to-market logistics game plan is amended for regional market transit, cost saving again enters the supply chain view. New routs create new freight billing norms, and with it the unfortunate reality of unintentional shipping billing errors. If you’re Supply Chain Nearing – digging that designation – coordinate your bill processing and payment through an independent auditor to ensure you Ship Smarter and Save (like that line, too…).

Admittedly partial to Data2Logistics.

Enjoy PARCEL Forum - Even More Fun There with Data2Logistics

Hope you're having a blast meeting-up with folks you know at PARCEL Forum. A few new to meet: Harold Friedman, Debbie Peterson and Leif Holm-Andersen - the Data2Logistics gang in expo hall space 108.

If you'd like to reduce your supply chain's costs without diminishing your product and service quality, talk to them. That's their bag!

Viva Ship Smarter and Save!

http://twitter.com/Data2Logistics

China-Japan Dispute Threatens Supply Chains through Asia

The escalating dispute between Japan and China over an East China Sea island chain could have long-term ramifications for global trade and supply chain planning, industry analysts say.

Nothing new here, but plenty to see: geopolitical tensions erupting into supply chain disruptions traverse global trade’s history. How it impacts you, and what you do about it, is the trick. Awareness of your route and mode options as contingencies is warranted, even if (hopefully) unneeded. As you plan, keep these alternate’s associated costs in-mind. Data2Logistics can assist you is this endeavor, providing data mining and reporting of your shipments, chronicling the trips and identifying and realizing cost-savings in these extraordinary times-of-the-day. And in the daily undisrupted ordinaries, too...

Data2Logistics Data Mines Domestically, Globally Growing Companies for Shipping Cost Savings

This just in:

Fort Myers, Florida and Rotterdam, Netherlands October 22, 2012 – Global freight bill processor, auditor and supply chain cost reduction advisor Data2Logistics is providing shipping costs control data mining services, assisting companies experiencing growth through domestic and international demand for their offerings to realize cost savings associated with carrier selection, addressing inbound and outbound freight shipments in an expanding supply chain management environment. This ability is equipping companies to accommodate for this acceleration, with services to achieve operational flexibility and freight cost savings, as companies’ resources are stretched corresponding to demands accompanying shipping volume increases. Data2Logistics services are resulting in freight shipping cost savings averaging 5%-15% annually.

With Data2Logistics’ data mining and reporting, the discovery of timely, actionable information empowers companies to make the best shipping decisions based on carrier options that are available, relative to service levels and all cost components, providing significant savings. This function provides a deeper understanding of trends, opportunities, weaknesses and threats. Exploration of pertinent data, in any combination over any time period, enables the operational and financial view of an organization’s functional flow to simplify and save.

With these data mining tools, companies can create a report based on a radius from a ship point, or identify opportunities for service or modal shifts, providing insightful information about carrier usage by lane, volume, average cost per pound, shipment size and service type. Performance can be measured based on the number and dollar amount of billing errors in proportion to overall shipping expenditures, variances from trends in costs, volumes and accessorial charges, by mining a database that includes Paid Bills, Work in Process transactions and Bills Aging to Terms.

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Talk to Data2Logistics about it…

Business Stimulus Via U.S. Commerce Department – Will Supply Chains Move?

Here’re announcement excerpts:

Acting U.S. Commerce Secretary Rebecca Blank today (10/12/12) announced the launch of the Advisory Committee on Supply Chain Competitiveness in recognition of the critical role that freight infrastructure and policies play in enabling products to be made in America and exported around the world. The Committee, comprised of 40 senior-level private sector representatives of multiple industries and supply chain experts appointed by the Secretary of Commerce, will advise the Secretary, the U.S. Department of Transportation and other U.S. agencies on supply chain issues that affect the international competitiveness of U.S. businesses. Acting Secretary Blank will attend the first Committee meeting at U.S. Department of Commerce headquarters on October 19.

Committee members are leaders in their fields of expertise and represent supply chain firms, associations, stakeholders, community organizations, and experts from academia.

U.S. supply chains are critically dependent on the quality and capacity of America’s freight transportation network – the largest and most extensive freight infrastructure in the world. The network serves over 7.5 million U.S. business establishments, carrying some 13 billion tons of raw materials and finished goods annually between production and consumption centers.

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Encouraging anytime our industry’s awareness is highlighted  contiguously with fiscally stimulating public sector attention for private enterprises, particularly now. The list of business-benefiting policy actions will likely be echoed (enthusiastically) in their sessions. What comes of these discussions will ultimately be measured by U.S. export growth, beginning next year. The need is real, as is the urgency.

Info’s Getting Cloudy, Creating Sunny Outlook for Supply Chains

An insightful report surveying supply chain folks by eyefortransport reveals substantial cloud-based information provider and management programs usage increase, averaging 50% advancement from 2011 to 2012. Their cloud rationale: good, fast and (relatively) cheap.

The good – the quality, timeliness and usefulness of the info made for an advantageous ROI. Their staff now knew what they need to know, via intuitively-used programs.

The fast – log in, learn, leverage. People found these programs made them more productive, without ebbing their daily functional flow. And they were happier, having ditching manual frustrations.

The (relatively…) cheap – an advantage of Net-based software programming is multiple users benefiting from a platform that’s centrally developed and managed. This cost advantage benefits the program’s creator and its users, too, as pricing models are communal. The user company’s IT team receives a brief reprieve; it’s one-less project responsibility for their admittedly thinly-spread financial and time resources.

One of the cloud program providers experiencing this demand uptick is Data2Logistics, providers of freight bill processing, auditing and cost reducing advisory services. Their transportation optimization and ongoing supply chain cost savings data mined databases lead to sunny dispositions – saving money on logistics necessities leads to a few more smiles.

India – From Emerging BRIC to World’s Marketplace, Supply Chain’s Gearing-Up, Tuning-Up

India’s exports fell 10.8 percent year-over-year in September to $23.7 billion, down from $26.6 billion in the same period last year, according to preliminary figures released by the Ministry of Commerce and Industry. Cumulatively, exports from April to September (fiscal year 2012-2013) were $143.7 billion, a decrease of 6.8 percent from last year’s $154.1 billion year to date.

Conversely, India’s imports rose 5.1 percent in September to $41.8 billion, up from $39.8 billion in the same month in 2011. This demonstrates economic infrastructure transformation occurring, from producer to consumer, largely influenced by an establishing middle-class portion of the populous. It provides opportunity for product providers globally to satisfy their growing demand for good they don’t generate. Indeed good news, as all are looking for market expansion, wherever they can find it. A land of a billion, ready to buy, is a well-timed attractive development.

As you prep your supply chain for your push, this is an advantageous time to optimize your freight transportation cost savings, maximizing profitability (to India, and everywhere you ship domestically and internationally). Have a chat with the folks of Data2Logistics, see where your savings are sequestered. The discovery will lead you to meaningful budget recovery, something else we’re all seeking.

PARCEL Forum and Data2Logistics Adds-Up to Your Supply Chain Cost Savings

To reduce your supply chain’s costs without diminishing your product and service quality, see Harold Friedman, Debbie Peterson and Leif Holm-Andersen all around PARCEL Forum 2012, October 23-25 at the Hyatt Regency O’Hare in Chicago. The Data2Logistics’ gang will be participating in presentations and greeting guests at the convention’s events and in their expo hall location, space 108.

Global supply chain freight bill processor, auditor and cost reduction advisor Data2Logistics enables companied to ‘Ship Smarter and Save’ by utilizing database data mining technology to enhance organizations’ logistics, supply chain, operations, finance and accounting staff’s abilities, providing information needed to control costs for all modes of transportation for companies who ship products domestically and internationally via parcel, LTL, TL, overnight express, ocean, air and rail carriers. Upon transportation optimization, Data2Logistics provides pre- and post-payment freight bill auditing to further maximize cost savings per shipment.

Can’t attend? Contact Harold Friedman for program information and demonstration, see where you may save: +1 609 577 3756 or harold.friedman@data2logistics.com.

http://www.data2logistics.com/ + http://twitter.com/Data2Logistics

Supply Chain Currency: Price Trumps Service When Shipping Cargo

Most shippers say reliable ocean service is a key consideration of their transportation, but in reality price typically trumps service when customers book cargo, according to maritime industry analyst Lars Jensen (Hil Danmark, og alle efterkommere hele verden.).

Is this you, too? If so, you’re in considerable company across the mode spectrum. Removing cost from your supply chain, be it moved by ship, plane, train or truck, without negative consequence to your products or their transportation timetable is a trick. Optimizing carrier and route options upfront, following-up with pre- and post-payment freight bill auditing for accuracy accomplishes this substantial cost reduction. It also improves your work life’s flow; a side bene.

These services are what Data2Logistics does. Control what you can – cost – and explore your options in this endeavor to persevere your capital preservation, while getting your stuff where it’s needed on the cheap.

All aboard the Econ Express – Railroads Delivering the Goods

According to the Journal of Commerce, railroads connecting U.S. manufacturing facilities and commerce destinations will be carrying the freight for a positive portion of the domestic economy for the balance of 2012 and likely through 2013 (Possibly beyond?). This movement is fueled by intermodal, automobile and domestic energy-related traffic. Their engines of growth - volatile fuel prices and tightening truck capacity, the need to replace aging vehicles and booming natural gas production - aren't likely to let up. The balance of imbalance…

The fiscal fortune in this is demand for goods continues to flourish throughout product supply chains, no matter the maddening domestic and global economic headlines. So keep moving; the wheels of prosperity remain in rotation.

Driving Cost Out Of Your Supply Chain, And Out Of Your Mind

If you’re involved in manufacturing, wholesaling, retailing, etailing, you’re aware of the impact your supply chain has on the operational and fiscal well-being of your organization. It’s a/the key component of your business plan. Thankfully, the more cost you can drive out of your supply chain, the better your entire organization will operate.

It complicated, though. The variables are vast, transportation policies and regulations are in constant flux, and costs are consistently rising. Some things in life are do-it-yourselfers; remedying this situation is better suited to professional help (head-shrinking optional).

Data2Logistics has a Professional Services Group whose sole function is devising plans customized per company to reduce supply chain costs. That’s their bag – assessing areas of opportunity including RFP management, transportation network assessment, freight rate negotiation support, cost analysis scenario rating, transport/logistics market studies, transport management systems (TMS) analysis, inbound routing planning guide development, and carrier selection with freight contract optimization structuring. That’s a lot of ‘professional service;’ probably more than you’ll get from that shrink. And the easing of logistical flow and cost savings are real.

Look into it. If additional psychological assistance is also on your mind, contact me, and I’ll refer you to my therapist, Gold’s Gym.

Smarts for Supply Chain Knowledge Management

Knowledge management is one of those terms defined by whose book you read last. In supply chain realities, it guides better business decisions, going beyond the typical freight bill processing services by presenting data as actionable information. Today, most of this info is delivered via cloud-based, intuitive, user-driven systems. They eliminate maverick spend, identify missed consolidations, provide alerts when there are changes in trends, while enabling you to see all cost components, not just the total freight charge.

A few more functions include:

•             Providing timely access to actionable information

•             Reporting details of all accessorial and premium freight charges

•             Highlighting opportunities for service type and mode shifts

•             Identifying cost associated with dimensional charges

•             Utilizing best practices industry benchmarks for comparison analysis

•             Creating customized, ad-hoc and standard reports for data analysis and colleague collaboration.

Knowledge management, in the supply chain realm anyway, is in Data2Logistics’ wheelhouse. If this supply chain business vision would beneficial you, contact us.

Economists See Strength in U.S. Manufacturing, Stimulating Supply Chain Action

With (way too) much economic news sending us atop the nearest tall building, it’s encouraging, and calming, to hear what in-the-know economists are relaying regarding manufacturing industry strength in the U.S., and in growth regions globally. Bloomberg collected these; take a deep breath (we all need more than one, go ahead –grab that paper sack and huff like your heart’s overheating…). Ok, better now…  Relax and take-in the good words:

·         A more even keel after the last credit-powered expansion would help the stocks of companies biased toward emerging-market consumers and U.S. manufacturing over those tied to commodities and infrastructure, said John Bilton, European investment strategist at Bank of America Merrill Lynch in London.

·         Behind the improvement is a revival of U.S. manufacturing. Restrained wages and lower energy prices are giving companies a competitive edge over competitors in Europe and Japan, according to a Boston Consulting Group study. It reckons average expenses in the U.S. will be 15 percent less than in Germany by 2015 and 21 percent below Japan.

·         “The U.S. is becoming one of the lowest-cost producers of the developed world,” wrote Harold L. Sirkin, a senior BCG partner in Chicago.

·         The chemical industry is a particular winner, as an abundant supply of natural gas from shale formations gives U.S. producers a march over rivals in Europe and Asia, which use mainly higher-priced oil.

Happy Manufacturing Day – You’re Building Our Bountiful Future!

October 5, 2012 is a much-deserved day of celebration of the manufacturing industry. All of us who work with you, and the supply chain bringing your goods to those whose personal and professional lives are enhanced by your efforts, appreciate you.

Manufacturing Day, whose sponsors include Fabricators & Manufacturers Association International, Manufacturing Extension Partnership, National Association of Manufacturers and Manufacturing Institute have designed this day to expand awareness and knowledge of manufacturing's value to U.S. and global economies. It also a day of industry growth, with manufacturers exploring beneficial resources and services delivered through manufacturing extension partnerships.

Let’s all take part in recognition - students, parents, educators, media, customers, suppliers – we all benefit from the industry’s substantial economic impact. Talk it up around your colleagues, attend a local or online event; take it all in. Manufacturing impacts us all, constantly and consistently. We’re thankful.

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Supply Shortages Closing Gasoline and Diesel Stations in the U.S. – The Supply Chain Affect

Supply shortage, high demand; higher costs result. West coast refinery and pipeline shutdowns are spurring this situation at this juncture. But that’s today’s tale, the concern is more concrete: any additional supply interruptions, any one or more infrastructural, geopolitical, eco-political will further impact the supply-demand quotient. The impact throughout business and consumer economies domestically will spread via global supply chains to the international marketplace. There’s never a ‘that’s ok’ time for this realization; any time soon would be particularly painful.

So what are you going to do now? Getting ahead of it is a prudent move. Control what you can. One proven impact is to reduce your supply chain costs where it doesn’t hurt – route optimization upfront with freight bill auditing for spend accuracy backend – for your shipments domestically and globally. Data2Logistics is a source of these roundtrip abilities. Have a conversation with them.

One Billion New Customers – Is Your Supply Chain Up For Them?

There are (literally) a billion buyers in the English-speaking economy of India. Thankfully, they have the courage and currency to act on their business and consumer purchase desires. Within a few fiscal years, September 14, 2012 will be celebrated as a global economic independence day, as it marks the opening of India to international business investment on majority ownership scale.

India’s motivation is expressively economic. The country’s economy lost 67% of foreign direct investment in 2011, and is/was trending in that direction for ’12. Prime Minister Manmohan Singh summarized the decision, “I believe that these steps will help strengthen our growth process and generate employment in these difficult times.” Wise man – bringing wealth to his nation’s population will keep him a popular politician, indeed.

Is your supply chain game? Bolstering our cause, the Indian government is opening aviation markets and allowing diesel subsidies to lapse. Earth, sky, arms welcomingly wide open.

From Our Rotterdam Office: Netherlands Manufacturing Expands First Time Since February

Good EU news: Bloomberg News reports manufacturing in Netherlands expanded for the first time in seven months, driven by an increase in export orders, according to NEVI, the Dutch institute for purchasing and supply management.

The September index of manufacturing in the euro area’s fifth-largest economy rose to 50.7 from 49.7 in August, the Zoetermeer, Netherlands-based institute said in an e-mailed statement. A reading above 50 indicates an expansion.

May this be a sign of strength to be seen throughout the EU region…

Government Investment in Nation’s Supply Chain – Economic Development that Works!

The Journal of Commerce reports British Columbia Premier Christy Clark on Sept. 28 detailed plans to invest more than $200 million in capital projects across the province, including replacing the George Massey Tunnel and widening the Trans-Canada Highway from Kamloops to the Alberta border.

Port Metro Vancouver welcomed the plan, as the tunnel has long restricted the draft of ocean-going ships on the Fraser River, which has in turn stunted growth in terminals such as Fraser Surrey Docks. Robin Silvester, port president and CEO, expects replacing the tunnel to increase trade opportunities for those terminals.

This economic stimulus is stimulating – hope it’s a global spread!