Holiday Cheer – Parcel Carriers Expecting Record Volume Season

Recession? Admittedly the term’s most applicable on the individual. In a broad sense, this year’s gift giving season is bull market-on, as parcel carriers are prepping for what they’re expecting to be their highest volume ever.

FedEx is expecting robust sales of electronics, apparel and luxury goods to drive their volume from Thanksgiving to Christmas. They forecast they’ll handle 280 million shipments, up 13 percent compared to a year ago. The Big Day: December 10^th, with 19 million shipments moving across its network, a generous gain on the previous daily record of 17.2 million, December 12, 2012.

We’ve seen economist’s measures of increased consumer confidence; this projection appears to back up their data. It’s exciting, seeing the 70% of U.S. GDP growing, cash circulating more freely again. Perhaps the fiscal drama of the last five years hasn’t scarred us as deeply as it could have. That or our spending slowdown punch-drunkenness is spurring us toward bad decisions. Either way, it’s nice to see consumerism regaining its long-standing popularity. Join the festivity – go buy something and have it shipped somewhere – support your neighbors in manufacturing, retailing and their dependable supply chain professionals.

Home Prices Rise in 81 Percent of U.S. Cities – A Satisfying Sign for Retail, Manufacturing

In the third quarter, prices for single-family homes rose in 81 percent of U.S. cities (120 of 149 metropolitan areas) from a year earlier, reported  the National Association of Realtors, as the residential market extends a recovery from the worst crash since the Great Depression. In the second quarter of this year, 110 metro areas had gains, chronicling the uptrend.

The beneficial economic tie of this supply-demand turn: rising home values signals mortgage funding is flowing and consumer confidence is climbing. These lead to retail sales growing and manufacturing demand increasing.

This trend’s timely, as those of us in the supply chain biz realize the need for more product moving to market, and inventories cycling at optimal rates. Robust consumer demand will do wonders to manifest this for us.

Here’s a twofer: with this anticipated supply chain activity increase, why not decrease your spend now, reducing unnecessary shipping expense today. Data2Logistics, a global supply chain information and technology company, provides the information to reduce your supply chain's costs without diminishing your product and service quality.

Their 'Ship Smarter and Save' mantra manifests by utilizing database data mining technology to enhance organizations' logistics, supply chain, operations, finance and accounting staff's abilities, relaying information needed to control costs for inbound and outbound transportation. They also provide freight bill auditing for accuracy per shipment, and carrier payment services to complete the process. Worth a look to save a buck…

China’s Leadership Change – World Supply Chain Fright of Blight?

As the biggest BRIC, China is joining the balance of the world in economic shifts with potential, if not certainty, the reconfiguration of multinational inbound and outbound supply chains. Manufacturing hubs are diversifying in product types and production locations, and retail with demand for international products and discretionary income in flux throughout geographic markets.

As Xi Jinping becomes the country’s party general secretary, he brings to the position a mix of capitalist capabilities and Maoist Marxism. How these ideologies balance under his leadership will mark China’s economic near-future, as well as with those engaged in commerce with the nation. Factor potentially lingering trade deficits, countries positioning to be attractive alternatives for lowest-cost manufacturing, and citizenry indoctrinated with Western wares, and China’s world trade complexity could alter dramatically.

The rubs: they’ll face economic growth of 7 percent in 2013, the least in 23 years, according to fixed income fund giant PIMCO. Standard Chartered Plc sees a risk of annual growth slumping 3-4 percent within 10 to 15 years without market-driven change to introduce more competition for state enterprises. They face the litany other developing nations endure:  an industrial workforce reliant on migrant labor, a wealth gap to potential social unrest, a rapidly aging population, a legacy of industrial pollution, widespread corruption and an escalation in territorial disputes with neighboring nations.

These internal issues they’ll have to work out internally. The rest of the (global trade) world is in the balance. Scary stuff – dependency on China can’t easily be kicked. Without their economic cooperative participation, or suitable substitute(s), there’s legitimate fright of international blight.

On to happier outlooks: it’s out of our hands, and there’s comfort in that realization. We can focus on our own trade’s economies, reducing unnecessary supply chain costs wherever shipments originate or designate. That Data2Logistics can help you control.

Supply Chain Owners – You Running Hard but Standing Still?

Today’s supply chain mangers find themselves being challenged like they never have been challenged in the past. The recession thinned their staffs dramatically. They’re feeling more pressure as sluggish top line growth is forcing companies to determine how they can grow their bottom line through improved operations. The result – supply chain managers are being pressured to drive hard to continuously improve the value of the services they deliver.

This is a tough position to be in when faced with a difficult regulatory environment, driver shortages and carriers who are looking to maintain their margins rather than chase after every shipment they can take from a competitor.  

Discussing this with a supply chain management client today, he talked about how he knows they must find ways to reduce transportation costs. However, because of resource shortages, they don’t have the talent they need to make this happen. He bottom lined it, “Running hard to stand still is painfully unfulfilling.”

Knowing he wasn’t alone in the running-hard-but-standing-still sentiment, we at Data2Logistics took action in this regard: appointing industry veteran Leif Holm-Andersen to lead our Professional Services Group as Executive Director. The group’s focus is to drive cost out of the supply chain by partnering with clients to identify and execute solutions. “We don’t just deliver solutions, we execute and manage on a go forward basis through key performance indicators to ensure our clients solutions are executed properly and stay on track,” Leif commented. What the Group offers is a full suite of services focused on optimizing clients’ supply chain. The program’s objective is to utilize Data2Logistics’ information, technology, subject matter expertise and knowledge of the marketplace to enhance transportation operations, improve service and reduce related expenses.

Leif’s 20 years of supply chain experience includes working for manufacturers and distributors throughout the world. He’s managed all modes of transportation globally and believes success in logistics is heavily dependent on the ‘data is knowledge’ mantra. “Managing with data and facts will produce the best results and drive cost out of the supply chain. Data2Logistics recognizes and follows this practice. Data2Logistics’ freight audit and pay business provides our clients with full visibility into their transportation spend. Our team utilizes this data to create dashboards helping clients to manage spend, providing a partnership to reduce costs through both procurement and process improvement opportunities. I ardently believe in partnering with clients and their providers to create win-win scenarios. It’s about data, facts and relationships,” Leif continued. Like the guy’s passion and drive…

You too running hard but standing still with higher costs and lower headcount? Talk to Leif; he knows how to ship smarter and save.

E-tailing Wagging the Markets, Supply Chains Moving

A trend we’ll see highlighted in November and December is e-tailing’s influence in both business and consumer marketplaces. Online purchasers site convenience and price as motivators for their Internet-based commerce. E-tailers reference their supply chain strategy as core of their business plan’s P&L.

While buyer demand’s driving this commerce movement, access is motivating it. Sellers are providing shoppers cloud software-powered purchasing experiences that are intuitive and unintimidating. Personal computing hardware manufacturers continue an impressive march of headline-grabbing desktop, tablet and telephone options, pared with operating systems people are comfortable using.

Back to supply chains – e-tail volume alone manifests complexities and associated costs. With sales and inbound/outbound shipment volumes increasing, the Internet-enabled global marketplace spotlights the vitality of supply chain effectiveness, and associated cost controls. A driving factor is cost savings wherever possible. Freight carrier service and cost negotiations with shipping bill auditing for accuracy account for a significant portion of these controllable costs, figuring into profit in the P&L equation. Talk to Data2Logistics to consider these cost conservation moves, from an independent prospective.

Single Family Home Sales Surge, Consumer Spending and Supply Chain Volume Follows

The Department of Commerce reported new single family home sales in the U.S. in September increased 5.7 percent from August to a seasonally adjusted 389,000-unit annual rate, the highest level since April 2010.

The real estate marketplace correlates increasing home sale volumes with higher existing home values (and often a new construction boost). Economics indicates a tie between increasing home equity and consumer spending confidence. Those involved in the country’s consumer marketplace, and their supply chain, see benefit from this fortuitous reaction.

Cost control becomes a profitability focus; the country’s economic recovery (?), again leaning on economists for their expertise, indicate a drawn-out process dependent on domestic/global challenges, known and unknown, over a number of upcoming fiscal quarters. Supply chain operators – control what you can – remove unnecessary costs (inefficient rout options, freight bill errors leading to overlooked overpayments). Utilize a carrier-neutral source to provide you with related cost reduction services. No pain, just profit. Data2Logistics has the knowledge and expertise in this area.

Supply Chains Keep on Truckin’

The American Trucking Associations' advanced seasonally adjusted For-Hire Truck Tonnage Index stood up in September, 2.4 percent higher than the level seen in September 2011.

This is significant, as it signals business and consumer confidence amid mounting uncertainties. Americans are an assured lot for sure. Carriers are benefitting, if you’re on their inbound or outbound routs are you also seeing increased revenue? With supply chain cost-containment key to profitability of any demand growth, make sure your carriers and their billing are optimized for your benefit. Data2Logistics can assist you in your role in the revenue-to-profitability equation.