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!

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