Author Archives: David DiSanto - DiSanto & Associates
Many companies negotiate small package programs to cover the documents in small packages, but how much consideration is given to those shipments with weights between 200 and 300 pounds. Normally a shipper will tender those shipments directly to an LTL carrier along with other shipments. These shipments are known as minimums in the LTL industry and are either tendered loose or stacked on a pallet and shrink-wrapped. These shipments can create problems in handling simply because they command an allotted … More
Many organizations measure on a monthly basis on time carrier performance assuring both manufacturer/shipper and end-user/customer on-time delivery of product by the service provider selected. These measurements are used in carrier selection and negotiation purposes by both the shipper, customer and service provider and being based on actual service standards set forth by the carriers. It is important to understand what on-time performance means and to what detail you are likely to consider to drill down to capture the data … More
2010 should bring a flurry of new acquisitions with many established companies looking to expand product lines and increase growth within the organization. Of these companies looking to expand through acquisition, raising capital expense to fund the newly acquired business unit will be a challenging experience in ramping-up operations with manufacturing and warehousing distribution. Many companies will be looking to outside warehousing and distribution ( 3PL’s ) assistance in order to compensate the need to either add-on to a existing … More
Effectiveness, is key to competing in today’s business environment. Logistics is a process, a supply pipeline which connects you with your vendor/supplier and your customer. Whether you compete domestically or globally competitors, vendors, suppliers and customers are worldwide. The significant cost of logistic/distribution effects the entire supply chain. Logistics importance integrates and develops long-lasting alliance is between the vendors/suppliers and customers. Logistics contributes to a competitive advantage, viewed as a comprehensive process objective, making your product more competitive in the … More
Have you ever considered taking the air or reconfiguring your current packaging? Many companies do not take the time to analyze their current packaging of finished product once the product has been prepared for the end-user. Many times I have walked through distribution warehouse centers and simply picked up a master carton of blister carded product and gave it a real good shake it’s amazing how much wasted space is in that carton. Think about it, air probably makes up … More
More companies are looking at centralized distribution and servicing their customer base in a timely manner in order to control costs, control inventory overhead and to improve overall customer service. Centralized distribution sometimes has its own challenges and issues based on schedules, inventory and transportation network. Other factors that should be considered is the size of the of the distribution center, the layout of the facility and capabilities of handling many more multiple shipments on a daily basis can result … More
What’s a buying/leveraging group? A buying group is a collection of buyers that aggregate their demand into a single ‘account’ and negotiate with a commercial carrier/s for better prices and/or improved services and more importantly a “Known name” in the industry. The group of buyers should be organized around an industry sector or geographic region. How do buying/leveraging groups work? A group is usually formed when an individual or business decides use bulk buying tactics for transportation services. Once a … More
“America’s needs move by truck”…it is a true statement always has been and always will be. The transportation industry is faced with tremendous “issues” and “challenges” that are mounting up by the week. Fuel, capacity, equipment, insurance, regulations, contracts, unions, economy downturn, personnel, competition, technology etc. etc. are just to name a few issues that the industry is facing. When fuel reached $4.00 per gallon last summer of 2008 each increment of .05 increases put out approx. 1,000 pieces of … More
Many manufacturers are willing to work with suppliers and customers, and meet their logistical and distribution needs or requirements. After all, good practices increase efficiency and competitiveness, and save money. Furthermore, assisting customer and supplier needs usually means continued business. On the other hand, the different set of requirements from each major supplier or customer may prove unattractive or overwhelming to manufacturers. Some smaller even middle sized suppliers and customers may not be able to devote the necessary resources on … More
Inventory optimization and transportation share a common thread when balancing and justifying either enters the scene. No matter how the replenishment was decided, eventually what has been ordered needs to be moved from the suppliers to the manufacturer’s business unit location or drop shipped directly to the end-user. Many business units operate under “just in time” manufacturing guidelines and on-hand inventory is a major concern when justifying inventory cost vs. the actual transportation spend. So many business units have inventory … More
A large portion of companies operate in the blind when it comes to negotiating transportation/rule contracts because they leave the negotiating process in the hands of a Traffic Manager, Purchasing Agent or Cost Account who may have little or no understanding of the company’s goals beyond cost containment. Those companies that seek to elevate their Transportation Management Department by integrating it into a larger logistics-oriented or “leveraged buying group” strategy find that unless their transportation negotiators actually worked for an … More
Many companies have worked hard to develop a “preferred” LTL carrier network for their domestic and trans-boarder shipments with each supplier adhering to the specifications of shipment tender. However, many times export and import shipments are left up to the forwarder or transfer agent to make arrangements for the “door to port” or “port to door” also known as “inland freight” therefore adding another layer of charges utilizing specialized carriage. Specialized carriers in the export and import market utilize a … More
Why are inbound shipments unique? It’s because companies don’t usually have the same kinds of controls over them as they do for their outbound shipments. In fact, many companies pay very little attention to this critical part of their business. When you leave shipping choices up to your vendors, you really have no control over the inflow of your goods and materials, which can lead to production delays, stock shortages, late deliveries, unhappy customers, and higher costs for your company. … More
How can an organization eliminate or reduce waste and increase speed in their supply chain? One answer is to replace warehouses and/or manufacturing locations with “cross-dock facilities” or “landing pads.” Tremendous pressure of global competition and just- in- time operations in the marketplace has spurred many manufacturers to adopt a lean production philosophy–and a lean supply chain that supports that philosophy. An important element in the identification and design of such supply chains is an effective line-haul- cross-docking-end user operation. … More
