Posted on Wed, Jun 23, 2010 @ 02:31 PM
A recent study has found that B2B Companies, which comprise many of ADS Logistics Customers, will likely face 5 key supply chain challenges as they seek to take advantage of the economic recovery, according to a new study by PRTM Management Consultants.
The study, Lessons Learned from the Global Recession, (you have to fill out a form to read the full report so we did it for you) found that most of the 350 manufacturing and service companies surveyed now believe there will be a significant upturn in demand from their customer base over the next few years.
However, the study also warns that many companies lack the supply chain infrastructure critical for meeting the emerging demands of managing an increasingly complex global market.
The 5 emerging demands identified by the study are:
1. Supply chain volatility and uncertainty have permanently increased
: Market transparency and greater price sensitivity have led to lower customer loyalty. Product commoditization reduces true differentiation in the B2B environments, and companies need to respect this reality.
2. Securing growth requires truly global customer and supplier networks
: Future market growth depends on international customers and customized products. Expanding supply chain globalization and complexity need to be managed effectively. Thus, finding supply chain management companies with integrated services such as ADS Logistics will play an increasingly important role.
3. Market dynamics demand specialized, cost-optimized supply chain configurations:
Customer requirements and competitors necessitate custom-tailored supply chains and product offerings.
4: Risk management involves the end-to-end supply chain:
Risk and opportunity management should span the entire supply chain—from demand planning to expansion of manufacturing capacity—and should include the supply chains of key partners.
5. Existing supply chain organization are not truly integrated and empowered
: The supply chain organization needs to be treated as a single integrated process. To be effective, significant improvements require support across all supply chain functions.
More than 85 percent of companies expect the complexity of their supply chains to grow significantly by 2012, yet many did not strengthen critical capabilities during the Recession. Additionally, more than two-thirds expect a higher number of product variations will be required to fulfill local customer expectations. Having an integrated and reliable supply chain process will be critical.
The study concludes with a 5-Point Agenda for Chief Operating Officers over the next 2 years to help them strengthen their supply chain process:
1. Improve customer access to supply chain data
2. Increase upstream and downstream supply chain flexibility
3. Focus on total supply chain cost engineering
4. Implement end-to-end supply chain risk management
5. Integrate and empower the supply chain organization
Ultimately, the main challenge for many companies is not to redefine their organization models, but to transition and manage the organizational change. When it comes to the metals industry, a company like ADS Logistics is ahead of the curve by providing integrated services such as their online inventory management system. The next 20 years will be particularly insightful as winners and losers emerge across all industries in this new economy.
Posted on Fri, Jun 11, 2010 @ 08:33 AM
The movement of material and goods has long been a feature of human history. From the pyramid builders of Egypt, to the Meso Americans of Central America, to the intricate building of the Great Wall of China, the objective of moving large rocks to complex structures hundreds of miles from their source was always a major challenge. Indeed, how these huge rocks were moved with such precision is still a mystery.
Whether it was moving spices and silk along the East India trade route in the 15th century or moving automotive parts and coils in North America in the 21st century, the central focus of logistics is to get material efficiently and expeditiously to the market. Not much has changed since those days in terms of the objective. However, the means and the systems have obviously evolved.
Gone are the days of the Pony Express and the Triangular Trade, these have been replaced with complex and modern computer systems which integrate EDI processes and web-based formats. Today’s logistics are much more complex and operate within multi-national contexts, as ADS Logistics does with its facilities across North America. The paper-based formats of thirty years ago are even disappearing as electronic processes now guide most logistics functions. Of course this means more efficiency and increased productivity, but it also implies that employees must continue to be multi-dimensional in order to keep up-to-date. ADS Logistics has been at the forefront of implementing new solutions for the metals industry. Our innovative software, such as our Lomas program, enhances our ability to operate in a competitive environment and bring the best in class service for our customers.
Of course technology is great at improving the human condition and breaking barriers, but it also means that the heavy reliance on electronic processes can have a downfall. Remember the Blackout of 2003?
I try to stay up-to-date, but always keep a few paper BOLs and a flashlight just in case…
Posted by Sean Bobb: Roll & Hold Warehousing
Posted on Thu, Jun 03, 2010 @ 02:50 PM
The shortage of marine containers for export and domestic use has been a topic of concern for the last couple of years. This predated the economic collapse at the end of 2008, but it has been intensified by the recession. The drastic reduction of imports in early 2009 brought far fewer containers into the country. In addition, many steamship lines canceled lanes and their frequency of service and moved many ships to anchor, often loaded with empty containers that were no longer needed. These marine containers (20’, 40’ and 45’ containers) are a widely desired unit for international and domestic transport.
In the May 3rd article “Needed: More Boxes” from The Journal of Commerce, Peter Leach reports that in 2009 there were about 350,000 new containers manufactured, down from about 3 million in 2008. He goes on to report that the Federal Maritime Commission is concerned about container availability as it tries to increase their export levels now that the economy is showing signs of recovery. Many exporters are having difficulty obtaining containers, both standard and specialty models. Exporters need these units in order to ship many common goods including grains, perishable goods, lumber, paper, and scrap metal.
Michael Marley’s article “Where Have All the Containers Gone?” in the May issue of American Metal Market details the extreme difficulty many of the scrap metal dealers have been encountering. When breakbulk ocean freight rates skyrocketed in 2006, many scrap metal dealers shifted to containers, and eventually came to prefer this method of shipping. Today there is more competition for these limited units, and many dealers are having difficulty obtaining the containers they need and booking the shipping lines they desire.
The shortage is felt because the shipping lines are enjoying a surge in demand for exports from the USA. This continues to grow as the improvement in the economy that began in the second half of 2009 continues to grow. Lines are putting previously idle vessels back into service and restoring old lanes. With the increase in imports more containers are entering again, but not at a pace to fully satisfy demand. Domestic transporters have to contend with the Marine Department's decision to make empty containers first available for exports. Although there are some regions where container supply seems to be in surplus (namely New York and Memphis), in most major shipping points there is a supply shortage, particularly of the longer units.
ADS Logistics Co, LLC, Western Intermodal division supports export shipping as well as operates a domestic transportation service. We have been able to keep a steady supply of containers and equipment through our long-term relationships, cooperative repositioning of some equipment, private equipment, and constant attention. Transportation is a world of moving parts and the art is getting the parts to move where and when you need them.
Posted by Steve Klok, ADS Logistics.JR6DKH597WTN
Posted on Mon, May 17, 2010 @ 10:24 AM
While searching for information as to why the most recent oil spill in the Gulf hasn’t yet been contained, I found an article that says warnings on system failures in deep sea drilling operations were evident as far back as 2000. Additionally it mentions that while drilling processes had advanced, safety technology stayed stagnate.
To think that preventive measures weren’t up to date on current drilling practices; which in turn now jeopardizes our environment, waters, birds, fish and so many other things, makes me angry and got me thinking… Can you prevent an oil spill or, in our case, can you prevent an accident or damage from occurring?
Preventive measures, when taken seriously, can save lives and dollars for both the company and its employees. Although our company has many preventive measures in place, we need to make sure they are up-to-date with our current practices and that the employees performing these procedures know the seriousness of their actions. In plain words, prevention needs to be effective. Here are the 2 biggest ways to prevent an accident:
Pre-Trip Inspection and Equipment Inspection Sheets
Do you really know how important those mundane inspection sheets are? Employees who utilize these checklists should be looking at them like it was their first time. The drivers and warehouse employees who walk around trucks or equipment are the ones who will determine what does and does not work properly. Will you be able to detect the internal workings? It's doubtful, but a thorough check can certainly keep you safe, keep the truck or equipment running, save the company from having to pay for unnecessary costs, and save the operator from paying unnecessary fines.
Another meeting….ugh! But not just another meeting, these meetings take place to keep you and every other employee safe, and ensure that everyone is aware of the requirements that are placed on our company. Within these meetings, hypothetical real-time situations may be discussed as well. For instance, we might review another company that has had warehousing problem and discussion takes place as to “what could we do to prevent that situation from happening here at ADS." Whatever the timing or topic is of our Safety Meetings (and/or ongoing safety training), each one is important and should be treated as such.
Each of us, as employees of ADS Logistics, should look for ways to prevent potential danger or damage. Although we are required, through our ISO certifications, to report and document preventive measures, we can all go above and beyond this responsibility to ensure that we all go home safely to our families each night knowing that our trucks and equipment will be waiting for us tomorrow.
Posted by Rose Cyphert: Billing- ADS Logistics
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