News Release – Data2Logistics Launches Shipper-Industry Benchmarking

For Immediate Release

Media Contact: Tim Nissen

Data2Logistics, LLC

12631 Westlinks Drive

Fort Myers, FL 33913

Data2Logistics Launches Shipper-Industry Benchmarking Program

Fort Myers, Florida and Rotterdam, Netherlands March 18, 2013 – Global supply chain information and technology company Data2Logistics announces the launch of the organization’ Shipper-Industry Benchmarking Program, providing a consultative review of a company’s freight shipping costs, comparing findings with industry benchmarks identified by Data2Logistics, to determine areas for cost reduction in conjunction with the savings scale probable to achieve through carrier and service level optimization. The initial consultation is currently a complementary service for companies managing shipping payment in-house, through a 3PL and/or utilizing a freight bill payment service.

Data2Logistics offerings reduce supply chain costs associated with product transportation through discovery; at the core a business intelligence portal providing for data mining of a shipper’s current information addressing their logistical needs in relation to marketplace options, enabling them to make optimized time and cost-effective decisions, domestically and globally. Implementation of discovery’s results includes support functions relating to pooled purchasing, RFP management, carrier negotiations, transportation management system software utilization, inbound routing and network analysis, along with informed freight bill auditing and payment services.

Data2Logistics’ services enhance organization’s logistics, supply chain, operations, finance and accounting processes, providing information needed to control costs for all modes of transportation both domestically and internationally via LTL, TL, parcel, overnight express, ocean, air and rail carriers. Having full service operations in Fort Myers, Florida, Salt Lake City, Utah and Rotterdam, Netherlands enables Data2Logistics to support companies shipping domestically and internationally, with staff attuned to local cultures and unique business environments.

Data2Logistics assists Global 1000, Fortune 1000 and SMB companies to reduce their shipping costs by providing an outsourced opportunity to efficiently process, audit, account code and pay their freight at a significantly lower cost than internal processes. Clients also benefit from the identification of more carrier overcharges than their internal systems can identify. The company provides actionable information to better manage and control transportation cost. As a single source of information for all modes of transportation on a global basis, Data2Logistics identifies and reports opportunities for savings and the reasons for variances in trends. Savings opportunities can be derived from modal shifts, consolidation of shipments, improved carrier utilization, and adjustment to shipment size, as well as monitoring accessorial costs. Reviewing approaching US$20 billion in freight billing from thousands of carriers annually, the company provides a single-source solution resulting in savings averaging 5%-15% of product shipping expenditures per year.

To arrange a confidential benchmark consultation, contact Data2Logistics’ Professional Services Group, +1 239 425 8050 or profservices@Data2Logistics.com.

About Data2Logistics, LLC

Fort Myers, Florida-based Data2Logistics is a leader in supply chain logistics knowledge management, cost control and freight payment. The company’s Ship Smarter and Save actionable information assists hundreds of clients in the Global 1000, Fortune 1000 and SMB categories, processing hundreds of millions of freight bills annually, valued nearing US$20 billion, saving clients an average of 5%-15% of their product shipping expenditures per year.

As an eight-time recipient of Inbound Logistics’ Top 100 Logistics IT Service Providers, their data mining capabilities creates actionable information for control of current and ongoing shipping cost savings. The company is the only service provider to work with clients and carriers to eliminate billing errors from recurring and to continuously improve and optimize their logistics networks and expenditures, domestically and globally. http://www.data2logistics.com/ + http://twitter.com/Data2Logistics

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Freight Bill Payment Outsourcing – Trend with Large Companies, Opportunity for SMB’s

An enlightening survey report addressing the state of freight bill shipping processing, the money and motivation behind technological advances utilized, and widespread usage of outsourcing some or all of the processes involved was recently conducted and released by American Shipper, in partnership with the Retail Industry Leaders Association. Transportation Payment Benchmark Study: A Step Forward, written by James Blaeser, Publisher of American Shipper, reveals engagement levels of large companies, along with small and medium businesses (SMBs) in their quest for visibility to billing/payment data, improved operational efficiency and awareness of cost with achievement of savings.

The publication highlighted:

“Payments to logistics service providers (LSPs) are moving to electronic means, such as automated clearing house (ACH), at a noticeable rate. Considerably more transac­tions are settled electronically this year as compared to last. Progress in terms of the dollars transacted is a bit slower but evident nonetheless suggesting that some companies are still hesitant to electronically transfer large sums of money.

“It is difficult to argue that the transportation industry is still behind the curve when it comes to conducting basic online transactions. However, to ensure progress, LSPs and their customers must move payments to an electronic environment. The benefits of e-banking are clear and will become impossible to ignore as the business community at large moves in this direction.”

To the numbers – 2011 payments via ACH: 45% of total transactions, 41% of total dollars transacted, up from 31% and 36% respectively in 2010. In 2011, 60% of large companies outsourced some or all of their payment processes, with 66% of SMB utilizing this practice, providing an extension to shipper’s internal abilities.

Decision drivers for payment systems technology utilization, as deployed by independent outsourced entities, included visibility to data (85% of large companies, 77% of SMBs), improve operational efficiency (74%/77%), visibility to costs (70%/62%) and cost savings (56%/85%). Of all large company and SMB’s responding combined, 60% indicated that they plan to increase their levels of outsourcing of some or all of their payment processes in the near future.

A central technology enabling outsourcing is ACH ability. ACH payments are electronic transfers from one account to another; shipper deposits funds with freight bill processor’s banking network, processor pays carrier once billing had been audited for accuracy. ACH payments can help reduce errors and save resources (people’s time and paper waste).

The payment accuracy component, auditing of freight billing, is a multi-step practice consisting of both pre- and post-payment processing. Preformed properly, substantial cost savings result; as unwarranted costs and fees are discovered and eliminated. An additional benefit is improved carrier relations, as payment processing is improved between shipper and carrier.

This study highlights fiscal needs trending towards tangible results. For organizations who seek to maximize shipping billing payment accuracy and efficiency, an effective way to optimize the entire process is to form an alliance with an independent freight bill processor that has the necessary technology to provide thorough pre- and post-payment auditing and payment services, to maximize accuracy and resulting cost savings. Manufacturers, distributors, retailers and etailers who utilize freight bill auditing-payment outsourcing benefit by enhancing shippers’ internal functionality, with removal of a non-core function of their business to an independent entity specializing in this field.

– Tim Nissen, Data2Logistics http://www.data2logistics.com/ + http://twitter.com/Data2Logistics

 

 

Supply Chain Supplier Collaboration – a Shipper’s Move to Transportation Savings

Supply chain profiles find themselves reliant on a myriad of suppliers. Some days it’s overwhelming, others are blessings. Often the difference is the level of collaboration with the people of these outside organizations, and the benefits of their offerings when fully engaged.

PricewaterhouseCoopers’ January, 2013 report 10Minutes on supply chain flexibility, relays feedback of 150 supply chain executives surveyed, with a reoccurring emphasis point being shipper-supplier collaboration, and rationale for its vitality in their organization.

For statistics, the report’s survey recorded 74% of respondents as ‘leaders’ in Collaborative Planning with suppliers, with 43% as ‘laggards’ in this endeavor (Their words and percentages – laggard’s connotation seems a status no one would wish to assign themselves; the percentages factor responses in scaled increments). Even more telling, 79% were assigned as leaders, with an alerting 53% identified laggards in Supplier Collaboration.

Qualifying these numbers, the report states:  

“Collaboration is a zero-sum game. Ultimately, supply chain visibility and collaboration boil down to balancing the level of trust between partners with the information sharing required to work together on the priorities of the extended supply chain. Without the right focus and without that trust factor, even the best governance agreements and tools won’t yield the desired results.

“The better the information companies have at hand, the more responsive their supply chains can be. But information from the supply chain may be slow to reach managers, and suppliers may complicate matters by using different software programs and data formats.

“Increasingly, companies use cloud-based platforms to share information in real-time.”

This highlights an area of information collaboration central to supply chain cost containment: the ability to optimize product transportation with carriers, utilizing both company and industry benchmark data to maximize savings in this costly component of manufacturing, distributing, retailing and etailing businesses.

An area prime for enhanced collaboration: a Shipper-Industry Benchmarking Program, a monitored consultative review of a company’s freight shipping costs, comparing findings with industry benchmarks provided by an independent entity with knowledge of carrier operations, route, pricing and billing practices, to determine areas for cost reduction in conjunction with the savings scale probable to achieve through carrier and service level optimization. This information review is suitable for companies managing shipping payment in-house, through a 3PL and/or utilizing a freight bill payment service.

The key is to reduce supply chain costs associated with product transportation through discovery; at the core a business intelligence portal providing for data mining of a shipper’s current information addressing their logistical needs in relation to marketplace options, enabling them to make optimized time and cost-effective decisions, domestically and globally. Implementation of discovery’s results includes support functions relating to pooled purchasing, RFP management, carrier negotiations, transportation management system software utilization, inbound routing and network analysis, along with informed freight bill auditing and payment services to maximize accuracy and savings at this key financial stage of supply chain operations.

For organizations who seek to maximize billing-payment accuracy, an effective way to optimize an organization’s transportation information by utilizing the company’s historical data and industry benchmarks, is to form a collaboration alliance with an independent cloud-based business intelligence provider, one with benchmarking ability in the company’s established software program/file format for dissemination and collaboration ease, with the ability of thorough follow-through of pre- and post-payment auditing and payment services to realize ongoing cost savings.

– Tim Nissen, Data2Logistics http://www.data2logistics.com/ + http://twitter.com/Data2Logistics

 

Rail Freight Competitive Switching – Open Markets, Functional Fees for Shipper’s Supply Chains?

What if…

The National Industrial Transportation League has estimated a $900 million savings for shippers if competitive switching/reciprocal shipping is implemented by the US rail carrier industry. Competitive switching indicates providing a shipper or receiver who’s obligated to a single railroad the opportunity to have its freight moved on another carrier's line, with payment of an access fee. The NIT League has petitioned the decision-making body, the US Surface Transportation Board, for this provision indicating the cost savings would originate through increased competition amongst rail carriers. Their goal is to provide shippers opportunity to seek competing bids from other rail carriers for transportation savings or service improvements.

If competitive switching/reciprocal shipping is enacted, shippers’ flexibility would result, but what would be the ultimate impact to the rail operators? Market share shift vs. share swap? New carrier entities emerging in regional/niche markets? Carrier consolidation within the industry? And for shippers, would the estimated $900 million savings ultimately be realized, or would additional logistical time and fee factors affect costs of utilizing multiple rail carriers?

Travelers Insurance – Three in Four US Manufacturers Expanding, Supply Chain Risks Following

As reported by InsuranceJournal, manufacturing in the United States is in a growth phase, according to a survey by Travelers Insurance revealed that nearly three out of four of the 200 executives queried in the manufacturing sector have either expanded their products or services during 2012, or plan to this year.

Being an insurer, they’re nature/nurture obligated to highlight challenges for risk managers. “All of this growth presents tremendous opportunities – and a host of new hazards throughout the complex, interconnected global supply chain,” said Jim Mandes, manufacturing industry manager for Travelers Commercial Accounts. “Hazards may include less skilled workers, fewer suppliers to choose from and an increased potential for business interruptions.” Even with these valid concerns, Data2Logistics is thankful for this growth trend in US manufacturing, providing them supply chain transportation optimization and cost reduction services (some assisting to un-interrupt business interruptions…).

A Spirit-Raising Survey – Canadian Businesses Expecting 2013 Growth

A recent survey of Canadian businesses commissioned by UPS Canada and conducted by Leger Marketing relayed that three in five business leaders expect more revenue in 2013 than in 2012, despite any economic uncertainties.

This makes for an encouraging North American economic headline, with potential for increased trade volumes between the US and Canada, along with business and consumer spending GDP growth for both nations.

If you’re shipping product between and within the US and Canada, ensure your supply chain’s transportation is optimized for cost savings, maximizing your margins during this (thankful) period of anticipated prosperity. Data2Logistics reduces supply chain costs associated with product transportation through discovery; at the core a business intelligence portal providing for data mining your organization’s current information addressing logistical needs in relation to marketplace options, enabling shippers to ascertain  options and make actionable, time and cost-effective decisions, domestically and globally.

Freight Bill Auditing – Telling Statistics from Those Who Do and Don’t

American Shipper, in partnership with the Retail Industry Leaders Association, recently published a revealing study highlighting shipper’s freight bill auditing activities. Transportation Payment Benchmark Study: A Step Forward, written by James Blaeser, Publisher of American Shipper, reveals aspects of an often closed subject of supply chain management – the financials.

Auditing of freight billing, a practice consisting of both pre- and post-payment processing, is a multi-step system; preformed properly, substantial cost savings result, as unwarranted costs and fees are discovered and eliminated. An additional benefit is improved carrier relations, as payment processing is improved between shipper and logistics service provider (LSP).

Here’s the study’s table-setter:

“Survey results show that the average respondent audits 77 percent of its invoices received from LSPs. Only 48 percent of the respondents review every invoice. The other 52 percent who claim they are auditing are really doing themselves a disservice. An incomplete audit is not an effective audit.

Three quarters of respondents claim the invoices they receive from LSPs are accurate 90 percent of the time or more. This could be considered better than what was expected which is a positive, but compared against other industries, such as utilities, this is very poor. Consider for example the problems that would arise if your home electric bill was wrong 10 percent of the time or more.

Auditing 100 percent of invoices received is only part of the story. Payers should be auditing all the variables in their bills for inaccuracies. Study results show that payers are very focused on the obvious issues, such as rates, accessorials, duplicate invoices, and fuel surcharge. Less obvious trouble areas, such as Inco terms, taxes, and currency conversions, are overlooked by most payers.”

Getting more personal, the study’s sampling of 300 companies reveals these realities:

In 2011, 50% of companies audited their supply chain’s transportation bills prior to payment, 8% post payment, 39% engage in both, and 3%, neither. The 39-percenter’s are benefitting the greatest, as billing accuracy was discovered to be sub-80% a full 24% of the time.  Only 58% were accurate up to 95% of the time. Errors abound, as is opportunity for found money.

The study reveals the percentages of variables audited by bill payers in the 3PL, manufacturing and retail industries. Here’s the breakdown:

·         Accessorials (rate, validity, etc.)

3PL – 90%

Manufacturing – 93%

Retail – 99%

·         Transportation Rates

3PL – 100%

Manufacturing – 94%

Retail – 90%

·         Duplicate Invoices

3PL – 75%

Manufacturing – 88%

Retail – 89%

·         Fuel Surcharge

3PL – 80%

Manufacturing – 85%

Retail – 82%

·         Incoterms

3PL – 35%

Manufacturing – 34%

Retail – 31%

·         Taxes

3PL – 25%

Manufacturing – 33%

Retail – 25%

·         Currency Conversion

3PL – 35%

Manufacturing – 39%

Retail – 24%

These figures highlight opportunity, as auditing 100 percent of invoices received is only part of the story. Payers should be auditing all the variables in their bills for inaccuracies. Study results show that payers are very focused on the obvious issues, such as rates, accessorials, duplicate invoices, and fuel surcharge. Less obvious trouble areas, such as Inco terms, taxes, and currency conversions, are overlooked by most payers.

This study highlights a fiscal need, and the areas under-addressed. For organizations who seek to maximize billing-payment accuracy, an effective way to optimize an organization’s transportation information with utilization of the company’s historical data and industry benchmarks is to form an alliance with an independent freight bill processor that provides thorough pre- and post-payment auditing and payment services, to maximize accuracy and resulting cost savings.

– Tim Nissen, Data2Logistics http://www.data2logistics.com/ + http://twitter.com/Data2Logistics

 

News Release-Data2Logistics Business Intelligence Offerings to Reduce Growing Supply Chain Transportation Cost

For Immediate Release

Media Contact: Tim Nissen

Data2Logistics, LLC

12631 Westlinks Drive

Fort Myers, FL 33913

E timothy.nissen@data2logistics.com

 

 

Data2Logistics Business Intelligence Offerings to Reduce Growing Supply Chain Transportation Cost

 

Fort Myers, Florida and Rotterdam, Netherlands February 20, 2013 – Global supply chain information and technology company Data2Logistics announces their Professional Services Group’s offerings to reduce supply chain costs associated with product transportation through discovery; at the core a business intelligence portal providing for data mining of a shipper’s current information addressing their logistical needs in relation to marketplace options, enabling them to ascertain options and make actionable, time and cost-effective decisions, domestically and globally. Implementation of discovery’s results includes support functions relating to pooled purchasing, RFP management, carrier negotiations, transportation management system software utilization, inbound routing and network analysis, along with informed freight bill auditing and payment services. “We’ve found these areas to be of widespread need throughout the supply chain industry, reducing excess cost associated with organization’s logistics,” comments Leif Holm-Andersen, Data2Logistics Professional Services Group’s Executive Director. “Managing with data and facts will produce the best results and drive excessive cost out of supply chain transportation expense, while strengthening carrier relations.”

 

Data2Logistics Professional Services Group’s objective is to utilize the company’s business intelligence technology, subject matter expertise and knowledge of the marketplace to enhance transportation operations, improve service and reduce related expenses. They identify opportunities to remove excess cost out of end-to-end supply chains to drive company’s profitability, a primary and prominent position of action of supply chain professionals faced with costs of increasing economic, geopolitical and environmental volatility.

 

Data2Logistics’ services enhance organization’s logistics, supply chain, operations, finance and accounting processes, providing information needed to control costs for all modes of transportation both domestically and internationally via LTL, TL, parcel, overnight express, ocean, air and rail carriers. Having full service operations in Fort Myers, Florida, Salt Lake City, Utah and Rotterdam, Netherlands enables Data2Logistics to support companies shipping domestically and internationally, with staff attuned to local cultures and unique business environments.

 

Data2Logistics assists Global 1000, Fortune 1000 and SMB companies to reduce their shipping costs by providing an outsourced opportunity to efficiently process, audit, account code and pay their freight at a significantly lower cost than internal processes. Clients also benefit from the identification of more carrier overcharges than their internal systems can identify. The company provides actionable information to better manage and control transportation cost. As a single source of information for all modes of transportation on a global basis, Data2Logistics identifies and reports opportunities for savings and the reasons for variances in trends. Savings opportunities can be derived from modal shifts, consolidation of shipments, improved carrier utilization, and adjustment to shipment size, as well as monitoring accessorial costs. Reviewing over $15 billion of freight bills from thousands of carriers annually, the company provides a single-source solution resulting in savings on average of 5%-15% of product shipping expenditures per year.

 

For Data2Logistics Professional Services Group information, contact Leif Holm-Andersen, +1 516 807 0256 or leif.holm-andersen@Data2Logistics.com.

 

About Data2Logistics, LLC

Fort Myers, Florida-based Data2Logistics is a leader in supply chain logistics knowledge management, cost control and freight payment. The company’s Ship Smarter and Save actionable information, assists hundreds of clients in the Global 1000, Fortune 1000 and SMB categories, processing hundreds of millions of freight bills annually, valued in excess of US$15 billion, saving clients an average of 5%-15% of their product shipping expenditures per year.

 

As an eight-time recipient of Inbound Logistics’ Top 100 Logistics IT Service Providers, their data mining capabilities creates actionable information for control of current and ongoing shipping cost savings. The company is the only service provider to work with clients and carriers to eliminate billing errors from recurring and to continuously improve and optimize their logistics networks and expenditures, domestically and globally. http://www.data2logistics.com/ + http://twitter.com/Data2Logistics

 

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Supply Chain Transportation - Domestic Intermodal Set for Growth through Transferred Demand

The conversion of over-the-road freight to domestic intermodal appears poised to rise notably during the next few years if federal hours-of-service limitations are implemented as planned and motor carrier costs continue rising.

The stage was set for this demand shift: rising fuel and driver costs are affecting trucking operators. Meanwhile, many rail lines continue to increase infrastructure, furthering their reach. This is a dynamic companies will need to evaluate regarding their freight transportation needs to determine their most cost-effective options.

Data2Logistics has been tracking this trend to assist shippers assess their best modes and service-levels in light of these developments. Data2Logistics reduces supply chain costs associated with product transportation through discovery; at the core a business intelligence portal providing for data mining of an organization’s current information addressing their logistical needs in relation to marketplace options, enabling shippers to ascertain  options and make actionable, time and cost-effective decisions, domestically and globally.

Data2Logistics Opinion Editorial – Data Mining a Pleasant Shipper Surprise

The more a shipper knows about their transportation current costs and options, the more they’re aware of available savings. The deeper they dig, the richer their reward.

That’s the data mining capsulation of the database discovery realization: awareness of cost-saving abilities amid logistical obligations, and the cost savings achievement associated.

According to global trade group Association for Information and Image Management (AIIM), fewer than 25% of organizations in North America and Europe are currently utilizing captured data as part of their business process. With high ease and low cost associated with utilization of their information, this unawareness is shocking – and costly.

Supply chain and logistics departments are in prime position to benefit by data mining and assessing electronically-captured billing records and their carrier contracts, by utilizing an independent freight bill processing provider, to realize and receive significant savings revealed.

Whatever the shipper’s volume, the more they know about their transportation billing’s accuracy and options to optimize time and cost effective logistics, the easier it is to ship smarter and save. A freight bill processor is able to offer insight capable of saving an average of 5% - 15% annually on shipping costs.

The processes’ backstory: the University of California – Los Angeles states that data mining is the process of analyzing data from different perspectives and summarizing it into useful information – knowledge that can be used to increase revenue, cuts costs, or both. Data mining software is an analytical tool that allows investigation of data from many different dimensions, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations among dozens of fields in large relational databases. Practically, it leads to noticeable shipping savings.

In addition to assessing freight billing accuracy, data mining and subsequent reporting of shipping activity will yield discovery of timely, actionable information that empowers shippers to make the best logistics decisions based on carrier options, along with associated routes, rates and fees. This function also 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 a company’s shipping functional flow, ultimately providing the cost savings.

With data mining, shippers can create reports based on a radius from a ship point, identifying opportunities for service or modal shifts, providing insight regarding carrier usage by lane, volume, average cost per pound, shipment size and service type. Performance can be measured based on overall shipping expenditures, variances from trends in costs, volumes and accessorial charges.

The most effective way to maximize an organization’s transportation information with utilization of data is to form an alliance with a freight bill processor that provides the independent analytical tools and resources, and utilize their unbiased technologies and abilities to make decisions that’ll enable a company to ship smarter and save.

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

Data2Logistics Finds Pre-Payment Auditing of Freight Transportation Bills Saves Substantially, Continuously

It seems reviewing bills before you pay them pays off. It works with household expenditures, and even more so large-scale with company supply chains. Regarding expenses related to transportation, Data2Logistics has amassed a foundation of substantiation chronicling the benefits of pre-auditing freight transportation bills. This data was accumulated via the organization’s processing in excess of US$15 billion in shipping billing annually, leading to determination of the logistical and fiscal benefits of the pre-audit freight billing process to shippers, reducing cost and payment pressures by increasing information access and its visibility, through business intelligence data mining to build databases optimizing supply chain transportation.

Data2Logistics found that pre-audit of shipping transportation billing:

•             Determines accuracy consistently of the actual amounts due vs. billed

•             Identifies any errors in contracted rates and duplicates of billings

•             Recovers freight costs when transportation services are not fulfilled

•             Reduces shipper’s internal processing cost (which range from $3 to $11 per bill)

•             Ensures timely payment when coupled with a payment service

•             Provides Sarbanes-Oxley compliance assistance

•             Strengthens relationships between companies shipping products and the carriers they utilize.

Data2Logistics’ Opinion Editorial – Trucking Hours of Service Legislation, Driver’s Time is Shipper’s Money

The battle over Hours of Service which began in October 2009 continues. On January 25, 2013, American Trucking Associations (ATA) President and CEO Bill Graves asked for a three-month delay following a pending federal court decision on the regulation.

In its final rule on December 27, 2011, the Federal Motor Carrier Safety Administration (FMCSA) required that compliance of the 34-hour restart provision drivers use to reset their weekly clocks and resume driving be established by July 1, 2013. In this rule the FMCSA indicated that “the industry and law enforcement might need extra time to train personnel and to adjust schedules and automated systems.”

It was the hope of the ATA and others in the industry that litigation regarding this matter would be decided far enough in advance for the industry to train their staff. This impacts law enforcement agencies, truck drivers and dispatchers who need to be certain of the rules to ensure that new requirements are properly adhered to. While much work has been underway to educate those impacted, there is still much more to be done which cannot be accomplished until the pending litigation is settled. The U.S. Court of Appeals for the D.C. Circuit will hear oral arguments in a series of legal challenges to the hours of service rule March 15, 2013. This will leave little time to complete training when the final court decisions are not expected before mid-May or early June of this year.

In his letter to Anne Ferro of the FMCSA, ATA’s Graves asked if the delay “will avoid potentially duplicative and unnecessary training” and “prevent confusion” if the court decision “alters in any manner the final rule.” The ATA, which opposes changes to the restart provision and other elements of the new rule, wants the court to strike the regulation and send it back to the truck safety agency.

Other groups, including Public Citizen and Advocates for Highway and Auto Safety, argue the rule doesn't go far enough and wants to eliminate the restart provision and cut allowable driving time.

With no change the most controversial sections of the final rule, the 34-hour restart provision takes effect this July 1^st. Graves says the new compliance date should be three months after the District of Columbia appellate court issues a ruling in ATA’s case against the rule. FMCSA is reviewing ATA’s request to postpone the effective date of the rule.

If unchanged the current ruling will have a further impact on the driver shortage and changes the economics of the trucking industry. This will impact shippers in the form of higher freight rates and longer transit times. In the long run time is money.

– Data2Logistics, http://www.data2logistics.com/

Did You Know – Auditing Before Paying Freight Shipping Bills Saves You Big

Research by Data2Logistics turned-up these supply chain shipping truisms – prepayment auditing of shipping transportation billing:

• Determines consistently the actual amounts due vs. billed
• Identifies any errors in contracted rates and duplicates of billings
• Recovers freight costs when transportation services are not fulfilled
• Reduces shipper’s internal processing cost (which range from US$3 to US$11 per bill)
• Ensures timely payment when coupled with a payment service
• Provides Sarbanes-Oxley compliance assistance.

But wait – there’s more: you’re a contact page away from the rest of the savings story.

Data2Logistics Neighbor Port Everglades Named Top Exporting Trade Zone

Port Everglades’ Foreign Trade Zone No. 25 in Florida was ranked as the top foreign trade zone in the U.S. for exports (measured by warehousing and distribution activity) by the Foreign-Trade Zones Board’s 73rd annual report to Congress. Port Everglades’ 66 percent annual export activity rise garnered them the glory.

Congrats – nice going neighbor! Keep on keeping our supply chains kicking!

A USPS Sustainability Step, Private Sector Freight Carrier Capacity Brace

The US Postal Service Board of Governors stated that despite achieving record growth in its package business and stabilization of other revenues, the Postal Service continues to operate with an inflexible business model that hinders its ability to be self-sufficient.

The US Office of the Inspector General suggested a step toward solution that would impact our industry: the Postal Service could generate additional revenue of $17.4 million in 2013 and 2014 by increasing government shipping contracts.

If the USPS can increase revenue by becoming a US government primary carrier, it’s a step towards sustainability of the entity relied upon daily as a commercial and consumer service. The fiscal flipside concerns private sector carriers impacted by the contracting shift. If business demand remains robust, the net result should be utilization of the additional capacity. Shippers would benefit from the increased options created by new availability in the marketplace.

Something lucid in USPS sustainability discussions is the shocking size and scope of the organization. Here’s content from their official communications; they’d be missed if their reach ceased to exist.

“A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation — 151 million residences, businesses and Post Office™ Boxes. The Postal Service™ receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations. With 32,000 retail locations and the most frequently visited website in the federal government, usps.com®, the Postal Service has annual revenue of more than $65 billion and delivers nearly 40 percent of the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 35th in the 2011 Fortune 500.”

Data2Logistics Launches Ecommerce Expeditions Canvassing Industry Supply Chains

Data2Logistics announces launch of ecommerce expeditions, the new daily publication covering news and views of moving ecommerce. The information’s reach includes those whose business plans are parallel with their supply chain’s success. Have a look...

Data2Logistics – Supply Chain Carriers Incentivized to India for Cost Savings; Shippers Want In?

India’s second-largest container gateway Chennai Port Authority announced a new one-year concessional program for vessel-related charges levied on mainline calls. Port officials said that this revision, replacing concessional rates announced in January 2010, would remain active through Dec. 31, 2013. “As the previous was advantageous only to a few mainline container vessel operators, the new concessions has been formulated taking into consideration the number of voyages, volume and gross registered tons of vessels,” the authority said.

Here’s the carrier draw: to remain competitive with other ports in the region, Chennai’s concessions range from 20 to 55 percent on prescribed service fees applied by the port authority. And they want carriers to bulk-up their volumes: “The quantum of concessions would be worked out based on the total mainline container volume achieved by a particular service run by individual mainline vessel operator or service partner during the year linking with GRT of vessels,” it said.

With the country’s surging public sector international investment incentives, India’s serious about becoming a truly open, fully engaged marketplace. Their timing’s terrific, as nations globally will benefit from expansion a billion-consumer base can provide.

Want in on the savings, to/through India, or elsewhere? A shipper’s fiscally beneficial option: consult Data2Logistics for transportation savings domestically and globally. Data2Logistics assists with supply chain network analysis, freight spend trends identification and cost reduction action, carrier services measurement, RFQ/RFP management (when and how to go to market) and leverage pooled purchasing opportunities across business units, geographic regions and freight consortiums.

Redefining Infotainment - Data2Logistics Optimizing Supply Chain and Logistics Freight Rates Video

Data2Logistics video from Supply Chain and Logistics Summit, focus on optimizing freight transportation rates to reduce shipping costs and increase operations flow. Rated ok for the kids to view; probably more interesting to you (no singing actors in animal costumes – yet…).

Data2Logistics Providing Parcel Shipping Analysis Study Addressing 2013 Carrier Cost Increases

Fort Myers, Florida and Rotterdam, Netherlands January 22, 2013 – Global supply chain information and technology company Data2Logistics announces the company’s Professional Services Group’s freight parcel analysis study for supply chain cost savings addressing 2013 price increases. The analysis identifies shippers’ exposure, impact and options to mitigate avoidable supply chain transportation costs by determining what portion of their parcel expenditure is exposed to pricing increase, data mining shippers’ historical supply chain flow to determine service efficiencies and associated cost savings, in light of this years’ air and ground parcel price increases. The objective of the analysis is to optimize appropriate service levels per shipment and enhancing transportation transparency and efficiency, while minimizing cost.

“With the new year, announcements were made of higher parcel shipping rates by the major carriers, at a time when companies are faced with demand for supply chain cost reduction to offset tightening product profit margins,” states Leif Holm-Andersen, Data2Logistics’ Executive Director of Professional Services. “Our analysis study indicates shippers’ impact to actually exceed carriers’ announced increases. Data2Logistics identifies shippers’ options to reduce these costs to offset rate increases, optimize freight transportation by reducing unnecessary shipping spend, and ensuring companies are being charged their correct rates via business intelligence data mining. Ultimately, the goal is improvements in shippers’ cost reduction and in relationships with their carriers.” Data2Logistics’ parcel air and ground shipping analysis study may be obtained by contacting Holm-Andersen, leif.holm-andersen@data2logistics.com.

Is Hong Kong’s Blueprint for Global Economic Interaction the World’s Pathway to Prosperity?

Washington, D.C.-based research and advocacy institute Heritage Foundation has Hong Kong topping its 2013 Index of Economic Freedom, for the 19th consecutive year.  The Index, which ranks 177 global economies, measures 10 fiscal freedom factors. Among them Hong Kong retained its top position in trade and financial freedom, ranked second in investment freedom and property rights, and another silver medal in the business freedom race.

Hong Kong’s governmental long-standing policies actively supporting open market participation, fostering international investment and attractive import-export trade parameters, has created a sustainable guide for nations seeking to finance infrastructure improvements, foster local employment and establish economies based on generating production capacity and export demand, along with an appetite for internationally-sourced products encouraged by growing national household incomes and discretionary currency. And they accomplished this economic establishment amongst China’s emerging economy, a nation who took notice of their neighbor’s prosperity and borrowed a few playbook pages for their benefit.

It’s worked remarkably well for China, proving even a communist-ideological country can benefit from spot capitalism powered by international investment and trade. Is it possible that Hong Kong – and China, who’s in a more closely financially identifiable state for achieving emerging status – be guides for countries seeking economic continuity?

US Manufacturing Upping the Happy for Supply Chains Globally

“…get my happy back again.” – REM

That phrase sticks paradoxically; Michael Stipe’s manically depressively inspirational ‘Lotus’ echoes humanities’ emotional existence-state ebbs and flows. Following when we fell, in 2008, it was difficult to determine the direction up. There was a collective isolation amongst us all; a numbing panic.

But maybe, baby, we’re past that time when we could barely breathe. Seems no suspicion the moment’s hesitation failed to manifest industrial incapacitation. Get this – U.S. exports of goods and services totaled $2.2 trillion in 2012, a whoa (!) -inspiring 38.7 percent higher than exporting volumes of 2009, with related supply chain activity growing an average of 11.9 percent annually during these most recent four years, so says U.S. Commerce Department findings. Here’s clarity that the manufacturing sector has held up well during otherwise disturbing times of emotional and economical human experience.

Will the World Build India’s Infrastructure via Market Access Investment?

As further evidence of the BRIC’s ‘I’ increasing interest in internationally sourced goods, India’s December 2012 imports were valued at $42.5 billion, rising 6.3 percent from December 2011’s $40.0 billion, according to the country’s Ministry of Commerce and Industry.

As India’s government continues to court investment from global sources for in-country employment and infrastructure improvements, will it be this international market access investment that finances the nation’s imported-product supply chain structural build-out, successfully furthering its emerging (and exporting) development?

On the subject of export currency, if you’re currently or are planning product exports to India, Data2Logistics can help control transportation costs via data mining business intelligence databases of options available pertaining to your specific needs. It’s welcomed savings in our domestic environment of tight product profit margins.

Laos Newest Southeast Asian World Trade Organization-Sanctioned Marketplace

As the Southeast Asian region strengthens as a world market component, another entrant emerges: Laos. After 15 years of negotiations with the World Trade Organization (WTO), the nation has enacted over 90 laws and regulations to gain the trade group’s inclusion, covering issues including trading rights, import licensing, customs valuation, investment, sanitary and phytosanitary measures, technical barriers to trade, and intellectual property rights. Laos officially becomes the organization’s 158^th member nation February 2, 2013.

WTO delegations welcomed Laos’ membership, paying tribute to the nation’s efforts and the collaboration of organization members. The WTO indicated the market opening and economic reform accompanying membership, with its principles of transparency, predictability and rules, would help the country develop and make it more attractive for foreign investment. Laos has made initial market access commitments in 10 sectors: business services, courier and telecoms services, construction, distribution, private education, environmental services, insurance, banking and other finances, private hospital services, tourism and air transport. Multinational-access companies in these categories have opportunity to build reliable supply chain infrastructure to sustain the nation as a continuing trade partner and growing marketplace, as demand for imported goods grows as their economy continues to develop.

It’s fascinating watching the entire world opening to viable multinational commerce, happening in our lifetime. As companies continue to seek additional markets for their goods, further economic development of previously isolated regions fosters a welcomed urgency with probability of prosperity beneficial to all in participation.

Lower Diesel Price Projections, Higher Cost Reduction Expectations

According to new projections from the U.S. Energy Information Administration, diesel fuel retail prices averaged $3.97 per gallon during 2012 and are forecasted to fall to an average of $3.87 in 2013 and even further to $3.78 in 2014.

If you’re facing upcoming fuel contracting, your timing may be fortunate. You know that along with these cost savings comes increased supply chain spend reduction expectation ahead of unprecedented political and economic uncertainty, and full realization of its marketplace impact. To satisfy, consult Data2Logistics for additional savings to benefit your supply chain domestically and globally. Data2Logistics assists shippers with transportation network analysis, freight spend trends identification and action, carrier services measurement, RFQ/RFP management (when and how to go to market) and leverage pooled purchasing opportunities across business units, supply chain regions and freight consortiums.

US, Canadian Customs Ease Cross-Border Shipping, Quicken Supply Chain Moves

U.S. Customs and Border Protection and the Canada Border Services Agency have increased and harmonized the value thresholds for expedited customs clearance to $2500, from $2000 in the US and $1600 in Canada. These actions deliver on a commitment under the U.S.-Canada Beyond the Border Action Plan to promote supply chain connectivity by harmonizing low-value shipment processes to expedite customs administration.

"Today's announcement will make it easier and faster for Canadian and American businesses to move goods across our shared border," said the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway.  "Increasing and harmonizing these thresholds will allow an additional 1.5 million shipments to be cleared on the day of arrival, instead of these goods being held up in customs clearance.  This is another example of how our governments' Beyond the Border Action Plan will benefit importers and exporters and is laying the foundation for more jobs, growth and prosperity in both countries."

"Canadian and U.S. businesses are the true beneficiaries of the Beyond the Border Action Plan and the change implemented today," said Mike Tierney, president, UPS Canada. "Each day, more than $1.6 billion worth of goods cross our common border bringing the annual value of traded goods to more than $580 billion. Yet, every year $16 billion in trade activity has been lost due to border delays. This change will allow for swifter movement of goods for importers and exporters of all sizes." 

Speed’s the story here, ultimately reducing time-to-market for all goods crossing the border by increasing supply chain transportation efficiency for all involved. It’s painless public sector steps like this that ripple positive economic impact. If this action benefits your business, further decrease your shipping costs with Data2Logistics. Their business intelligence technology, subject matter expertise and knowledge of the carrier marketplace will assist optimization of your transportation operations and reducing related expenses. They identify opportunities to develop partnerships with carriers and remove excess cost from your supply chain to boost your profitability.

To Russia with Love, Supply Chain Arms Wide Open

U.S. Trade Representative Ron Kirk signified the signing by President Obama of H.R. 6156, the Russia and Moldova Jackson-Vanik Repeal and Sergei Magnitsky Rule of Law and Accountability Act of 2012, which authorizes the establishment of permanent normal trade relations with Russia and Moldova. This step will allow the United States to apply the World Trade Organization (WTO) agreement to Russia, enabling U.S. manufacturers to access the growing Russian market and offering new, job-supporting trade opportunities for U.S. businesses.

“The United States strongly supported Russia’s accession to the WTO, because it is in the interest of our exporters and the Americans they employ to bring Russia more fully into the global trading system,” stated Ambassador Kirk. “With the signing of this legislation, American businesses and workers are closer to enjoying the full economic benefits of Russia’s WTO commitments.”

The National Association of Manufacturers (NAM) applauded the move. “As the ninth largest economy in the world, the Russian market presents a great opportunity to grow exports,” said Jay Timmons, NAM President and CEO.

If this initiative impacts expansion of your European supply chain into Russian regions, as you factor associated transportation expense with ROI, consider shipping cost control with Data2Logistics. Utilizing their business intelligence technology, subject matter expertise and knowledge of the marketplace, you’ll optimize transportation operations, improve service and reduce related expenses. They identify opportunities to develop partnerships with carriers and remove excess cost out of end-to-end supply chains to drive your profitability when faced with costs associated with route options in new geographic markets.

ISM Indicates US Manufacturing Activity, Exports Up – Spirits Up

December 2012’s Institute for Supply Management Report On Business® indicated economic activity in the manufacturing sector expanded for the month, with the overall U.S. economy growing for the 43rd consecutive month. The report is based on data compiled from purchasing and supply executives nationwide.

Manufacturing industries reporting December growth included Furniture & Related Products, Paper Products, Petroleum & Coal Products, Wood Products, Primary Metals, Computer & Electronic Products, and Food, Beverage & Tobacco Products.

U.S. new orders, production and employment have now grown for four consecutive months, along with the overall national economy.

If you can stand any more good news, U.S. exports in December rose 4.5 percent versus a 3.5 percent increase in imports. To further put this hopeful trend in your favor, utilize Data2Logistics’ services for supply chain financial optimization. Their business intelligence guidance for cost reduction and improved oversight includes focused resources to support projects including network analysis, pooled purchasing, RFP management, carrier negotiations and transportation management system software, along with informed audit and freight payment services. Together, you’ll Ship Smarter and Save.

Would a Wholly Privatized USPS Create Greater Parcel Capacity?

USPS is the country’s original nationwide volume parcel carrier, and has been pushing the position to SMB’s of late to bolster its market share in the category. Their most formidable competition may be coming from within: mounting contractual debt combined with decline in First and Third-Class volume, long their profit centers now short on volume and corresponding revenue. Is privatization their road to profitability?

Across the pond, UK equivalent Royal Mail is actively considering such a move, capitalized by a London Stock Exchange float. The imminent: “We are committed to injecting private capital into Royal Mail to help ensure the ongoing viability of the company. Momentum will continue to as we put all of the building blocks into place,” stated business minister Michael Fallon. Royal Mail has appointed Barclays Bank as its adviser, and hired Goldman Sachs, Merrill Lynch and Bank of America to pitch the company to prospective investors. The motivation: demonstrated growth in parcel revenue they’d like to continue realizing by expanding capacity to accommodate.

Would greater parcel capacity manifest with USPS operating as a wholly private organization? Their debt and decline in personal and bulk mail volume have developed from occurrence to trend; those issues will have to be addressed. Private capital infusion and operation could provide options currently unavailable, stave reoccurring debt and revenue loss, and further monetize the organizations’ unrivaled geographic distribution and market reach with increased volume ability of profitable B2B and B2C parcel. All with the ability of maintaining First and Third-Class service consumers and marketers would miss should it cease.

It’s a new day for USPS – could this be their new way? Could domestic and global interconnect parcel shippers benefit from it?