We found a great article on steps to take when choosing a 3PL. Hodges Warehousing and Distribution offers great services if you need an Alabama warehouse or Alabama storage space!
Read the following article from Industry Week below:
1. Outline areas of opportunity.
One reason to outsource is to gain the ability to enter new markets or adapt to competitive forces without building out costly distribution infrastructure, Blanchard notes. "Establish a team to look at the current and future requirements of your business and critically assess your ability to meet those needs internally. This team should be comprised of key members from both your logistics organization and other areas like marketing and customer service. These additional departments can provide insight into future growth projections and shortcomings in the existing process and infrastructure."
2. Critically assess your strengths and weaknesses.
Determining what you're good at, and more importantly, those areas where your company needs the most help, will enable you to find a complimentary partner, Blanchard says. Keep in mind, though, that potential partners will have their own distinct strengths and weaknesses. "Some 3PLs are better at warehousing than transportation and vice versa. Others are great at managing the import process, but have less to offer in functional areas like inventory and order management. Merging your strengths with those of your partners will help ensure a robust result."
3. Decide what is on the table.
Once you've identified opportunities for partnering with a 3PL, determine which of these you are actually willing to pursue. "Logistics functions like warehousing and transportation influence how your customers view your ability to execute," Blanchard points out. "The decision to include some or all of these functions in your outsourcing project should be informed by a clear understanding of your company's willingness to turn over mission critical processes to a logistics partner." The success of your outsourcing project, he observes, will depend on how comfortable you are with the idea of a third party operating on your behalf.
4. Identify a shortlist of providers that meet your requirements.
At this point in the process, you should consider initiating a logistics network optimization study to "identify optimal locations for import or export gateways, assembly, merge-in-transit and other specific operations," Blanchard suggests. "Your geographic needs may require a nationwide or global network or be more focused on specific regions. Create and distribute a concise request for information (RFI) designed to ask potential partners about their capabilities. From this, develop a list of providers that have experience in your industry and markets, as this process will reduce the number of potential partners quickly." Then, examine the network infrastructure of the remaining companies and compare your requirements with the capabilities of potential providers. It's also important that you assess the technological infrastructure of potential partners, especially as it applies to such applications as warehouse management systems, order management systems or transportation management systems.
5. Consider the human element carefully.
"Cultivating relationships between key personnel on both sides throughout the outsourcing process is critical," Blanchard notes. "Ensuring not only a fit between corporate cultures, but individuals will contribute greatly to success. This is especially important during implementation and ongoing operations, but if you wait until this stage to identify issues, it will be too late. Remember you will be trusting your chosen partner with your livelihood."
To view the entire article by D. Blanchard, click here.
Friday, December 18, 2009
Wednesday, November 18, 2009
Logistics and business news: Indicators present "mixed bag" for economic outlook and recovery
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As has been the case in recent months, many leading economic indicators continue to present a "mixed bag," when it comes to determining how strongly the economy is recovering. This is particularly acute when looking at retail figures released by the National Retail Federation and the Department of Commerce earlier today.
The NRF reported that October retail sales-excluding automobiles, gas stations, and restaurants-were flat compared to September and down 1.3 percent year-over-year. Meanwhile, the Department of Commerce had a rosier outlook, reporting that total retail sales-including both retail and food services-were up a seasonally-adjusted 1.4 percent compared to October and down 1.7 percent unadjusted year-over-year.
While the flat and 1.4 percent respective gains may portend some optimism for economic recovery as holiday shopping season begins to kick in, NRF Chief Economist Rosalind Wells noted that belief may be somewhat premature.
Consumer spending remains the main driver of the domestic economy-accounting for roughly two-thirds of all economic activity. And based on sluggish retail numbers, coupled with the lack of a meaningful uptick in freight volumes, analysts have told LM it may take nine months until a true recovery takes hold.
"Though the October numbers show some signs of optimism for retailers, the industry is still not out of the woods," said Wells in a statement. "While categories like apparel, sporting goods, books, music and personal care fared well, housing-related categories such as furniture and home improvement continued to struggle."
This cloudy scenario is also evident in other economic data and freight trends, too, including last week's Commerce Department report that the U.S. trade deficit expanded 18.2 percent in September to $36.5 billion for its biggest deficit since January, as well as a 0.5 percent dip in consumer spending in September, and The Reuters/University of Michigan preliminary consumer sentiment index decreased to a three-month low of 66 from 70.6 in October.
Other recent data include:
* the Institute for Supply Management's manufacturing index topping 50.0 percent (which indicates positive growth) for the last three months;
* the October Cass Freight Index declining 12.3 percent year-over-year and flat growth from September to October;
* durable goods orders in September were up 1.4 percent and September inventories were down 0.4 percent from August and 13.4 percent year-over-year, according to the Department of Commerce; and
* the Association of American Railroads reporting that as of Thursday, November 12 volumes are down 17.8 percent year-to-date, and the Intermodal Association of North America's recent report that third quarter volume is down 16.4 percent.
Read the rest of the logisticsmgmt.com article here.
As has been the case in recent months, many leading economic indicators continue to present a "mixed bag," when it comes to determining how strongly the economy is recovering. This is particularly acute when looking at retail figures released by the National Retail Federation and the Department of Commerce earlier today.
The NRF reported that October retail sales-excluding automobiles, gas stations, and restaurants-were flat compared to September and down 1.3 percent year-over-year. Meanwhile, the Department of Commerce had a rosier outlook, reporting that total retail sales-including both retail and food services-were up a seasonally-adjusted 1.4 percent compared to October and down 1.7 percent unadjusted year-over-year.
While the flat and 1.4 percent respective gains may portend some optimism for economic recovery as holiday shopping season begins to kick in, NRF Chief Economist Rosalind Wells noted that belief may be somewhat premature.
Consumer spending remains the main driver of the domestic economy-accounting for roughly two-thirds of all economic activity. And based on sluggish retail numbers, coupled with the lack of a meaningful uptick in freight volumes, analysts have told LM it may take nine months until a true recovery takes hold.
"Though the October numbers show some signs of optimism for retailers, the industry is still not out of the woods," said Wells in a statement. "While categories like apparel, sporting goods, books, music and personal care fared well, housing-related categories such as furniture and home improvement continued to struggle."
This cloudy scenario is also evident in other economic data and freight trends, too, including last week's Commerce Department report that the U.S. trade deficit expanded 18.2 percent in September to $36.5 billion for its biggest deficit since January, as well as a 0.5 percent dip in consumer spending in September, and The Reuters/University of Michigan preliminary consumer sentiment index decreased to a three-month low of 66 from 70.6 in October.
Other recent data include:
* the Institute for Supply Management's manufacturing index topping 50.0 percent (which indicates positive growth) for the last three months;
* the October Cass Freight Index declining 12.3 percent year-over-year and flat growth from September to October;
* durable goods orders in September were up 1.4 percent and September inventories were down 0.4 percent from August and 13.4 percent year-over-year, according to the Department of Commerce; and
* the Association of American Railroads reporting that as of Thursday, November 12 volumes are down 17.8 percent year-to-date, and the Intermodal Association of North America's recent report that third quarter volume is down 16.4 percent.
Read the rest of the logisticsmgmt.com article here.
Monday, October 26, 2009
New Study Highlights Role of Third-Party Logistics Providers in Helping Shippers Adapt to Economic Challenges
The fourteenth Annual Third Party Logistics (3PL) Study examining the current global market for logistics outsourcing was recently released. The study surveyed shippers and logistics service providers in North America, Europe, Asia Pacific and Latin America. Key findings included:
* The economic downturn has created significant challenges for both shippers and third-party logistics providers (3PLs) – 82% of shippers are employing cost-cutting tactics and 60% are rethinking their supply chains and relationships with 3PLs
* 88% of shippers feel that IT-based logistics services are important, but only 42% are satisfied with the capabilities of their provider – as a result of this IT capability gap, shipper respondents reported a lack of the key performance indicators, alerts and visibility required for an adaptive supply chain and 3PLs reported similar difficulties in getting the data and commitment they need from shippers
* There are significant differences between how 3PLs evaluate their role in the supply chain and how they are viewed by shippers – 59% of shippers feel their use of 3PLs has a positive effect on customer service compared to 88% of 3PL respondents
* Shipper respondents devote an average of between 47% (in North America) and 66% (in Europe) of their total logistics expenditures to outsourcing and this is expected to increase in the next five years.
“Shipper-3PL relationships are being impacted significantly by the prevailing uncertainty and economic volatility in global markets,” said Dr. C. John Langley Jr., Professor of Supply Chain Management, Georgia Institute of Technology. “It is very important for 3PLs to mitigate or reduce any financial risk or service level impact that this may cause.”
Economic uncertainty and the use of 3PLs
Economic volatility has challenged shippers and 3PLs alike to contend with factors such as unpredictable demand, instability in fuel costs and currency valuation, and excess inventory. In response, not only are shippers attempting to cut costs, 77% are also seeking to improve forecasting and inventory management.
Cost reduction and improved reliability in services are the main factors likely to increase shipper respondents’ use of 3PLs. This includes converting fixed to variable costs (59%), expanding to new markets or offering new products (56%), and restructuring the supply chain network to improve financial performance (48%).
Read the rest of the mhia.org article here.
* The economic downturn has created significant challenges for both shippers and third-party logistics providers (3PLs) – 82% of shippers are employing cost-cutting tactics and 60% are rethinking their supply chains and relationships with 3PLs
* 88% of shippers feel that IT-based logistics services are important, but only 42% are satisfied with the capabilities of their provider – as a result of this IT capability gap, shipper respondents reported a lack of the key performance indicators, alerts and visibility required for an adaptive supply chain and 3PLs reported similar difficulties in getting the data and commitment they need from shippers
* There are significant differences between how 3PLs evaluate their role in the supply chain and how they are viewed by shippers – 59% of shippers feel their use of 3PLs has a positive effect on customer service compared to 88% of 3PL respondents
* Shipper respondents devote an average of between 47% (in North America) and 66% (in Europe) of their total logistics expenditures to outsourcing and this is expected to increase in the next five years.
“Shipper-3PL relationships are being impacted significantly by the prevailing uncertainty and economic volatility in global markets,” said Dr. C. John Langley Jr., Professor of Supply Chain Management, Georgia Institute of Technology. “It is very important for 3PLs to mitigate or reduce any financial risk or service level impact that this may cause.”
Economic uncertainty and the use of 3PLs
Economic volatility has challenged shippers and 3PLs alike to contend with factors such as unpredictable demand, instability in fuel costs and currency valuation, and excess inventory. In response, not only are shippers attempting to cut costs, 77% are also seeking to improve forecasting and inventory management.
Cost reduction and improved reliability in services are the main factors likely to increase shipper respondents’ use of 3PLs. This includes converting fixed to variable costs (59%), expanding to new markets or offering new products (56%), and restructuring the supply chain network to improve financial performance (48%).
Read the rest of the mhia.org article here.
Wednesday, September 23, 2009
Logistics and transportation news: Forecast calls for another slow peak season
As freight volumes are in their fourth consecutive year of decline, it is not a stretch to admit “Peak season”—as we once knew it—is significantly different from what it was in past years.
This view is corroborated by the findings of a recent LM reader survey, coupled with analyst and shipper analysis, which indicates the lack of a true peak is, in fact, “the new normal.”
Major takeaways of the LM survey found that a cumulative 82 percent—or 373 of the 448 respondents— think this year’s Peak Season will be similar or less active compared to last year, with a mere 18 percent—or 85 respondents—contending it will be more active.
Reasons cited by respondents for another slow peak included: less demand, a need for lower inventory levels, the recession, sluggish consumer spending, and low import volumes, among others.
“There are no positive signs that customer demand has increased to previous year’s levels, or even close to them,” said a shipper. “Our customers are requesting Just-In-Time shipments instead of building inventory in their warehouses. And retailers still have excess inventory and with the recession ongoing, they are not ramping up their inventories.
The lack of meaningful inventory build-up is not likely to fade anytime soon, considering the Department of Commerce’s recent report that U.S. business inventories decreased 1.0 percent in July from June at $1.333 trillion and were also down 11.8 percent from July 2008. A Wall Street Journal report noted this reflects how businesses are slowly getting rid of excess goods that accumulated during the recession.
A lack of inventory build up and lack of meaningful consumer spending are also reflected in the low volumes at the Ports of Los Angeles and Long Beach—the two highest volume ports in the U.S.—which have been down for more than two years, due to the economy, changes in order patterns by shippers, and capacity continuing to be routed away from these ports. Year-over-year volumes at both ports are down, with total containers at the Port of Long Angeles, year-to-date through August at 4,374,818, which is down 18.3 percent compared to last year. And at the Port of Long Beach, total containers handled through August are 3,259,427, which is down 25.1 percent from last year.
Read the rest of the logisticsmgmt.com article here.
This view is corroborated by the findings of a recent LM reader survey, coupled with analyst and shipper analysis, which indicates the lack of a true peak is, in fact, “the new normal.”
Major takeaways of the LM survey found that a cumulative 82 percent—or 373 of the 448 respondents— think this year’s Peak Season will be similar or less active compared to last year, with a mere 18 percent—or 85 respondents—contending it will be more active.
Reasons cited by respondents for another slow peak included: less demand, a need for lower inventory levels, the recession, sluggish consumer spending, and low import volumes, among others.
“There are no positive signs that customer demand has increased to previous year’s levels, or even close to them,” said a shipper. “Our customers are requesting Just-In-Time shipments instead of building inventory in their warehouses. And retailers still have excess inventory and with the recession ongoing, they are not ramping up their inventories.
The lack of meaningful inventory build-up is not likely to fade anytime soon, considering the Department of Commerce’s recent report that U.S. business inventories decreased 1.0 percent in July from June at $1.333 trillion and were also down 11.8 percent from July 2008. A Wall Street Journal report noted this reflects how businesses are slowly getting rid of excess goods that accumulated during the recession.
A lack of inventory build up and lack of meaningful consumer spending are also reflected in the low volumes at the Ports of Los Angeles and Long Beach—the two highest volume ports in the U.S.—which have been down for more than two years, due to the economy, changes in order patterns by shippers, and capacity continuing to be routed away from these ports. Year-over-year volumes at both ports are down, with total containers at the Port of Long Angeles, year-to-date through August at 4,374,818, which is down 18.3 percent compared to last year. And at the Port of Long Beach, total containers handled through August are 3,259,427, which is down 25.1 percent from last year.
Read the rest of the logisticsmgmt.com article here.
Thursday, August 20, 2009
Logistics and business manufacturing: Signs are positive but economic recovery needs time
While some economic indicators paint an optimistic picture for recovery, supply chain and freight transportation industry experts maintain it will be a while before the recession truly abates.
On the optimistic front are: the Bureau of Economic Analysis’s (BEA) recent release on the second quarter’s 1.0 percent GDP decline, ahead of the first quarter’s 6.4 percent loss; the BEA also reported that real exports of goods and services were down 7.0 percent on the second quarter, compared to 29.9 percent in the first quarter; the Institute of Supply Management’s PMI (formerly known as the Purchasing Managers Index) hit 48.9 in July, representing the seventh consecutive month of growth (an index of 50 or higher typically means the economy is not in decline); the Commerce Department’s report that orders for U.S. durable goods—except for automobiles and aircraft—were up 1.1 percent in June, the biggest gain in three months; and the Cass Information Systems Freight Index down 15.3 percent in July compared to 20 percent and 21.4 percent dips in June and May, respectively.
But despite these signs, there are other data points that suggest the economy is still stuck in neutral and remains at “the bottom.” Among these data points are: June truck tonnage down 13.6 percent year-over-year, according to the American Trucking Associations; cargo container volume decreases at the Ports of Long Beach and Los Angeles still hovering around 30 percent; and a recent report from the Federal Reserve’s “Beige Book,” indicating economic activity is weak heading into the summer, although the overall pace of decline has stabilized albeit at a low level.
“While some numbers are encouraging, I would not get too excited just yet,” said Eric Starks, president of freight transportation forecasting consultancy FTR Associates. “But they do tell us that economic conditions did not deteriorate at the same level in the second quarter as the first. It appears that the ‘bleeding’ has stopped or is coming to an end, and that the long healing process has begun.”
Starks noted that the current economic situation is not something many shippers have previously experienced, with shippers anxious for an uptick in demand heading into 2010 to chip away at excess inventories and subsequently force increased manufacturing output.
Other things to keep an eye on are rises in home starts and sales, according to Tim Feemster, senior vice president and director of global logistics at Grubb & Ellis Company. Feemster’s sentiment is supported by recent signs of stabilizing prices with a composite index of home prices in 20 major U.S. cities being flat, according to the Case-Shiller Price Index, compiled by Standard & Poor’s, which was reported by the New York Times, and followed reports that sales of existing home sales have been up for three straight months, with June being the largest percentage increase in eight years.
And Josh Green, CEO of Panjiva, an online search engine with detailed information on global suppliers and manufacturers, said the consensus regarding the economy seems to be that the bottom has been reached, but what happens from here is anyone’s guess.
“Whatever recovery we see is likely to be slow and steady, rather than a quick ramp up back to pre-recession levels,” said Green. “I think the thing nobody wants to talk about is that the fear that the growth we are seeing now is more of a hiccup and that there is risk of a further downturn. When [certain] indices come out, it does seem like we are moving in right direction, but we are still very vulnerable to any kind of external shocks to the system that could send things down and put the economy back on a downward stretch.”
Recent Panjiva data indicated that from June to July the number of global manufacturers shipping to the U.S. rose by 7 percent, which was consistent with the 6 percent gain seen during the same timeframe last year. Panjiva also reported that the 2008 increase preceded the freefall in global trade from July 2008 to February 2009. Even though the month-to-month increase was up 7 percent, Panjiva said that the overall number of companies currently shipping to the U.S. is down roughly 10 percent year-over-year.
From May to June, the number of global manufacturers shipping to the U.S. was flat, following increases of 2 percent from April to May, 8 percent from March to April, and 2 percent from February to March.
“We are basically following the seasonal path of last year, which is good news in this economic environment,” said Green. “It feels like the [economic momentum] is positive right now. At this time last year, it was a bit more uneasy and when things got worse the economy went into a tailspin. Now, it feels like it is going in the other direction, as we have seen some encouraging signs and may be regaining our footing. There is no question we are still vulnerable to additional shocks, though.”
Read the rest of the scmr.com article here.
On the optimistic front are: the Bureau of Economic Analysis’s (BEA) recent release on the second quarter’s 1.0 percent GDP decline, ahead of the first quarter’s 6.4 percent loss; the BEA also reported that real exports of goods and services were down 7.0 percent on the second quarter, compared to 29.9 percent in the first quarter; the Institute of Supply Management’s PMI (formerly known as the Purchasing Managers Index) hit 48.9 in July, representing the seventh consecutive month of growth (an index of 50 or higher typically means the economy is not in decline); the Commerce Department’s report that orders for U.S. durable goods—except for automobiles and aircraft—were up 1.1 percent in June, the biggest gain in three months; and the Cass Information Systems Freight Index down 15.3 percent in July compared to 20 percent and 21.4 percent dips in June and May, respectively.
But despite these signs, there are other data points that suggest the economy is still stuck in neutral and remains at “the bottom.” Among these data points are: June truck tonnage down 13.6 percent year-over-year, according to the American Trucking Associations; cargo container volume decreases at the Ports of Long Beach and Los Angeles still hovering around 30 percent; and a recent report from the Federal Reserve’s “Beige Book,” indicating economic activity is weak heading into the summer, although the overall pace of decline has stabilized albeit at a low level.
“While some numbers are encouraging, I would not get too excited just yet,” said Eric Starks, president of freight transportation forecasting consultancy FTR Associates. “But they do tell us that economic conditions did not deteriorate at the same level in the second quarter as the first. It appears that the ‘bleeding’ has stopped or is coming to an end, and that the long healing process has begun.”
Starks noted that the current economic situation is not something many shippers have previously experienced, with shippers anxious for an uptick in demand heading into 2010 to chip away at excess inventories and subsequently force increased manufacturing output.
Other things to keep an eye on are rises in home starts and sales, according to Tim Feemster, senior vice president and director of global logistics at Grubb & Ellis Company. Feemster’s sentiment is supported by recent signs of stabilizing prices with a composite index of home prices in 20 major U.S. cities being flat, according to the Case-Shiller Price Index, compiled by Standard & Poor’s, which was reported by the New York Times, and followed reports that sales of existing home sales have been up for three straight months, with June being the largest percentage increase in eight years.
And Josh Green, CEO of Panjiva, an online search engine with detailed information on global suppliers and manufacturers, said the consensus regarding the economy seems to be that the bottom has been reached, but what happens from here is anyone’s guess.
“Whatever recovery we see is likely to be slow and steady, rather than a quick ramp up back to pre-recession levels,” said Green. “I think the thing nobody wants to talk about is that the fear that the growth we are seeing now is more of a hiccup and that there is risk of a further downturn. When [certain] indices come out, it does seem like we are moving in right direction, but we are still very vulnerable to any kind of external shocks to the system that could send things down and put the economy back on a downward stretch.”
Recent Panjiva data indicated that from June to July the number of global manufacturers shipping to the U.S. rose by 7 percent, which was consistent with the 6 percent gain seen during the same timeframe last year. Panjiva also reported that the 2008 increase preceded the freefall in global trade from July 2008 to February 2009. Even though the month-to-month increase was up 7 percent, Panjiva said that the overall number of companies currently shipping to the U.S. is down roughly 10 percent year-over-year.
From May to June, the number of global manufacturers shipping to the U.S. was flat, following increases of 2 percent from April to May, 8 percent from March to April, and 2 percent from February to March.
“We are basically following the seasonal path of last year, which is good news in this economic environment,” said Green. “It feels like the [economic momentum] is positive right now. At this time last year, it was a bit more uneasy and when things got worse the economy went into a tailspin. Now, it feels like it is going in the other direction, as we have seen some encouraging signs and may be regaining our footing. There is no question we are still vulnerable to additional shocks, though.”
Read the rest of the scmr.com article here.
Tuesday, July 28, 2009
Railroad/Intermodal shipping: NS CEO calls for increased railroad infrastructure investment
Even with the high level of infrastructure spending railroads have made towards their networks in past years, more is needed to meet the future projected demand in capacity when the economy rebounds, according to Wick Moorman, CEO of Class I railroad carrier Norfolk Southern.
Testifying before the House Ways and Means Subcommittee on Select Revenue Measures on behalf of the Association of American Railroads (AAR) last week, Moorman explained that freight railroad infrastructure tax incentives make sense for the country, because rail is the safest, most affordable, and cleanest way to ship freight.
“America needs more transportation capacity and needs it now,” said Moorman. “Railroads are the most affordable and environmentally responsible way to meet this [expected increase in railroad freight] demand, and that is why tax incentives for rail capacity would be good public policy.”
In recent years, the case for expanded rail capacity—and its anticipated funding shortfall—has been well-documented in various studies and data points, including:
* a 2007 report from the AAR and Cambridge Systematics that determined approximately $148 billion needs to be invested in the nation’s freight railroad infrastructure by 2037 to ensure that adequate rail capacity is in placed to meet the expected demand, with railroads anticipating under current conditions that the marketplace will allow them to raise $96 billion towards infrastructure expansion during that timeframe;
* a report from the American Association of State Highway and Transportation officials (AASHTO) that predicts by 2020 the U.S. rail system will carry an additional 888 million tons, an increase of more than 40 percent from current levels; and
* a Department of Transportation analysis predicting an 88 percent increase in railroad freight tonnage by 2035.
While these statistics portend a significant future economic rebound, it is likely that the current recession will push back the DOT’s trajectory by a few years, according to William J. Rennicke, director of Oliver Wyman, a Boston-based management consultancy.
Read the rest of the logisticsmgmt.com article here.
Testifying before the House Ways and Means Subcommittee on Select Revenue Measures on behalf of the Association of American Railroads (AAR) last week, Moorman explained that freight railroad infrastructure tax incentives make sense for the country, because rail is the safest, most affordable, and cleanest way to ship freight.
“America needs more transportation capacity and needs it now,” said Moorman. “Railroads are the most affordable and environmentally responsible way to meet this [expected increase in railroad freight] demand, and that is why tax incentives for rail capacity would be good public policy.”
In recent years, the case for expanded rail capacity—and its anticipated funding shortfall—has been well-documented in various studies and data points, including:
* a 2007 report from the AAR and Cambridge Systematics that determined approximately $148 billion needs to be invested in the nation’s freight railroad infrastructure by 2037 to ensure that adequate rail capacity is in placed to meet the expected demand, with railroads anticipating under current conditions that the marketplace will allow them to raise $96 billion towards infrastructure expansion during that timeframe;
* a report from the American Association of State Highway and Transportation officials (AASHTO) that predicts by 2020 the U.S. rail system will carry an additional 888 million tons, an increase of more than 40 percent from current levels; and
* a Department of Transportation analysis predicting an 88 percent increase in railroad freight tonnage by 2035.
While these statistics portend a significant future economic rebound, it is likely that the current recession will push back the DOT’s trajectory by a few years, according to William J. Rennicke, director of Oliver Wyman, a Boston-based management consultancy.
Read the rest of the logisticsmgmt.com article here.
Friday, June 19, 2009
Transportation policy: Oberstar unveils new plan for surface transportation authorization
House Transportation and Infrastructure Committee Chairman James L. Oberstar formally rolled out his plan for a new approach to surface transportation authorization earlier today.
In his whitepaper, “The Surface Transportation Authorization Act of 2009: A Blueprint for Investment and Reform,” Oberstar outlines myriad ways to remedy the nation’s transportation system, which, he said, “while once the envy of the world, is losing its battle against time, growth, weather, and wear.”
What is needed now, he says, is a National Transportation Strategic Plan that is intermodal in nature and national in scope.
A major theme of Oberstar’s plan calls for a national transportation policy, as opposed to the Department of Transportation’s current policies, which were established and are administered by separate DOT departments—each of which focuses on a single mode transportation.
“Since completion of the Interstate Highway System, our national transportation policy has lacked strategic focus,” notes the plan. “Although States and metropolitan regions are required to develop long-range transportation plans for highway, transit, and rail investment, there has been no attempt to aggregate these plans and establish a National Transportation Strategic Plan.”
Some of the main objectives of the Surface Transportation Authorization Act of 2009 include:
* consolidating the majority of highway funding in four, core formula categories designed to bring our highway and bridge systems to a state of good repair; improve highway safety; develop new and improved capacity; and reduce congestion and greenhouse gas emissions and improve air quality;
* establish new initiatives to address the crippling congestion in major metropolitan regions, and eliminate bottlenecks in freight transportation; and
* create a National Infrastructure Bank to better leverage limited transportation dollars, among others.
“This plan restructures programs within the DOT…and moves from a highly prescriptive program to a performance and outcomes-based surface transportation program,” said Oberstar at a press conference today.
Read the rest of the logisticsmgmt.com article here.
In his whitepaper, “The Surface Transportation Authorization Act of 2009: A Blueprint for Investment and Reform,” Oberstar outlines myriad ways to remedy the nation’s transportation system, which, he said, “while once the envy of the world, is losing its battle against time, growth, weather, and wear.”
What is needed now, he says, is a National Transportation Strategic Plan that is intermodal in nature and national in scope.
A major theme of Oberstar’s plan calls for a national transportation policy, as opposed to the Department of Transportation’s current policies, which were established and are administered by separate DOT departments—each of which focuses on a single mode transportation.
“Since completion of the Interstate Highway System, our national transportation policy has lacked strategic focus,” notes the plan. “Although States and metropolitan regions are required to develop long-range transportation plans for highway, transit, and rail investment, there has been no attempt to aggregate these plans and establish a National Transportation Strategic Plan.”
Some of the main objectives of the Surface Transportation Authorization Act of 2009 include:
* consolidating the majority of highway funding in four, core formula categories designed to bring our highway and bridge systems to a state of good repair; improve highway safety; develop new and improved capacity; and reduce congestion and greenhouse gas emissions and improve air quality;
* establish new initiatives to address the crippling congestion in major metropolitan regions, and eliminate bottlenecks in freight transportation; and
* create a National Infrastructure Bank to better leverage limited transportation dollars, among others.
“This plan restructures programs within the DOT…and moves from a highly prescriptive program to a performance and outcomes-based surface transportation program,” said Oberstar at a press conference today.
Read the rest of the logisticsmgmt.com article here.
Thursday, May 21, 2009
Global logistics and supply chain: A lackluster year for 3PLs, says survey
Dick Armstrong, chairman and CEO of Armstrong & Associates, Inc. -- a supply chain market research and consulting firm specializing in 3PL market research – said his most recent survey paints a complex picture.
“After 11 modest months in 2008, third-party logistics revenues dove in December and have remained depressed in 2009,” he said in a statement. “While a few third-party logistics providers (3PLs) could drown, most are treading water and some are swimming strongly.”
Armstrong’s analysis shows gross revenue (turnover) for 3PLs down by 8.8 percent for 2009. Net revenues (gross margins) were less impacted for many non-asset transportation managers and leading value-added warehousing 3PLs.
Expeditors, C.H. Robinson, Kuehne + Nagel and other major transportation managers report net revenues decreased 3 percent to 10 percent. Earnings before interest, tax, depreciation and amortization (EBITDAs) and earnings before interest and tax (EBITs) fell proportionately. Additionally, net revenues are expected to be down another 5 percent this year for the transportation management group.
In an interview with LM, Armstrong said that quite a few 3PL leaders will nonetheless be investing for the future.
“And this points to one of the key new trends we see in the global marketplace,” he said.
“Third parties that are already entrenched in overseas operations are building upon their base there, while smaller 3PLs are scrambling to get into that end of the business.”
The key differentiator, said Armstrong, is information technology. The companies that continue to sink portions of their profits into IT, are going to prevail over those “who ain’t got em,” he says.
But the recent survey for 3PLs as a group 60 percent shows they are reporting lower gross and net revenues for this year.
Among value-added warehousing 3PLs, 57 percent are reporting increased net revenues. Automotive and retail vertical industries were the main drags on 3PL market growth for 2009 with projected revenues down 32 percent and 23 percent respectively. The food and grocery vertical and 3PL returns management sub-segment are up for the year. GENCO, Kenco and New Breed expect revenues to increase in 2009.
Read the rest of the article from logisticsmgmt.com here.
Friday, April 24, 2009
NRF, RILA set to merge into one organization
- Interesting article from logisticsmngmt.com
Jeff Berman, Group News Editor -- Logistics Management, 4/22/2009
WASHINGTON—Taking steps to better represent retail interests in Washington, the National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA) said that their executive committees have agreed in principle to merge and create a singe trade association.
NRF and RILA officials said that the completion of the merger is contingent on a thorough due diligence process, with merger details currently being developed. The NRF and RILA boards of directors must recommend the merger, which has to be approved by the membership of both organizations. This process is expected to be completed this summer.
In an interview with LM, Brian Dodge, RILA SVP, Communications and State Affairs, said that this merger makes sense on a few different levels.
“To this point we have had two trade associations operating in Washington and serving the same industry,” said Dodge. “And the rumors of a merger or a consolidation of some sort have…ebbed and flowed for a long time. It is based on the fact that two trade associations representing slightly different member bases—but in the same industry—and work together often on the same issues.”
In terms of differences in membership between the two organizations, RILA represents the 65 largest retailers operating in the U.S. across all segments with annual sales totaling around $1.5 trillion, as well as six million of the nation’s 15 million retail employees. RILA membership also includes service suppliers and product manufacturers, bringing its total membership to about 200 members. Dodge said that seven of the ten largest U.S. retailers are RILA members.
Read the rest of the article here.
Thursday, March 19, 2009
About Hodges Warehouse & Logistics
For over 40 years, the Hodges family has been involved in real estate in the South. Whether commercial real estate, warehouse space or the development and sale of residential real estate, we have delivered exceptional personal service and the best available resources in the industry. We are dedicated to providing you the the very best service in the sale or purchase of property.
In the early 1970's when the cattle market - which had been the Hodges family's stock in trade for over a century - began to decline, the company refocused its efforts on investing in real estate. This led to the development of Hodges Warehouse + Logistics, providing superior third-party warehousing and logistics services for clients of all sizes across the Southeast. Over the last 30 years, the acquisition of more than 5 million square feet of real estate taught us many valuable lessons about finding the right space in the right place. Lessons that guide our real estate services today - and it's not just "location, location, location." The factors that make one place the right place vary not just from property to property, but with each individual buyers needs and desires.
Hodges can serve as a partner by providing the following, Contact Us today:
- Warehouse Space
- Consolidation Points
- Assembly Points
- Pack and Pull Operations
- Brokerage
- Dedicated Transportation
- Contract Employees
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