Written by Tony Nuzio on August 1st, 2016
The 27th Annual State of Logistics Report was recently issued by A.T. Kearney and sponsored by Penske Logistics and The Council of Supply Chain Management Professionals, and reported on by Logistics Management. The report has as one of its main themes, a need for shippers and their transportation and logistics service providers to work more collaboratively towards mutual benefit. While that’s a great theme, it should not be new to shippers and their service providers. In order for any shipper and service provider to be truly successful in their business relationship, the needs of both sides should always be considered and result in mutually beneficial and long term business relationships.
The report indicates that in 2015 the industry Click to continue »
Written by Tony Nuzio on July 25th, 2016
How do you know you’re getting the best deal from your transportation and logistics service providers? That’s a question we hear all the time and one that we’re always prepared to answer. Our goal always is to help shippers better understand the negotiation process Click to continue »
Written by Tony Nuzio on May 18th, 2016
For years now we have been hearing about the “Amazon Effect.” What exactly is the “Amazon Effect” you ask? We believe it means different things to different people as well as to different organizations. One thing for sure, it means continually challenging the status quo. Amazon continues to come up with new, novel and attractive ideas to draw consumers to their website to purchase just about anything, at any time of the day or night. And, Amazon has done that very effectively.
Now, Wal-Mart has decided Click to continue »
Written by Tony Nuzio on May 12th, 2016
Here we go again, another case of “Follow the Leader”, or “Lead the Follower” as the case may be between FedEx and UPS who are both implementing another increase for shippers utilizing both carrier’s Ground Services. This latest increase is the result of both carriers re-defining carton measurements for the assessment of their Additional Handling Fees.
The base charge for the Additional Handling Fee service was initially increased as part of both carrier’s Annual General Rate Increase at the beginning of 2016. Now the charge will have a further negative cost impact on shippers because both carriers will assess the charge when the longest side of a package exceeds 48 inches when the the prior assessment was triggered when the longest length of a carton was 60 inches.
Fed Ex will implement this rate increase on June 1, 2016, while UPS has their increase scheduled to go into affect on June 6, 2016. The Additional Handling Fee for both parcel giants is $10.50.
So, what’s a small package shipper to do whose Ground Service packages exceed 48 inches as the longest side of a box measurement? It’s time to schedule another meeting with their parcel carrier’s sales reps and attempt to negotiate some sort of rate reduction to take the sting out of this latest increase, especially if a large volume of these shipper’s packages will now be subject to these additional fees. We wish those shippers Good Luck in such negotiations.
For the full details, please read the full article here: http://www.dcvelocity.com/articles/20160510-going-long-with-your-parcel-traffic-fedex-and-ups-will-want-more-money/
Written by Tony Nuzio on April 28th, 2016
The Good, the Bad and the Ugly From Logistics Management’s Annual Salary Survey
For the past 32 years, Logistics Management magazine has published their Annual Salary Survey which is a result of a research project conducted by Peerless Research Group (PRG). This year’s survey provides some key insights affecting the supply chain and logistics industry that we would like to comment on.
PRG’s Research Director, Judd Aschenbrand states that one area of the survey that is very telling is that, “78% of the respondents report that the number of functions that they are asked to perform has increased over the past year.” “Only 18% say that things have remained the same, and a paltry 4% say that there’s been a decrease in the duties they’re charged to execute.” Wow, can you imagine that, logisticians and supply chain professionals are being asked to do more year over year; now that’s a novel idea.
If you’re like me and everyone else I know Click to continue »
Written by Tony Nuzio on April 13th, 2016
A recent survey conducted by Internet Retailer Magazine has provided a great deal of insight into what E-retailers are doing to better pinpoint when and where their customer orders would arrive. The survey also revealed that many consumers are entertaining different delivery options that would either let them pick up their orders at specific pick-up points, or help them receive their packages more conveniently.
In this survey, 52% of the respondents were Web-Only Retailers, Manufacturers made up just over 21%, Retail Chains accounted for 20%, and Catalog companies made up the balance. While the survey provides Click to continue »
Written by Tony Nuzio on March 23rd, 2016
We recently received a call from a business owner who lost over $3,000.00 on a customer order, not to mention an untold dollar amount in customer loyalty. The reason for his loss – his customer did not receive his shipment in a timely manner as promised and therefore refused to pay for the merchandise. The details of this scenario are as follows.
The shipper was a Direct Mail Printer and shipped several cartons of flyers for a particular big sale event that was to take place the week after the order was shipped. The shipment moved via an LTL carrier that posted a two day delivery timeframe in its Service Guide. The shipper shipped the product in plenty of time to meet the customers desired delivery date. All appeared to be good until Click to continue »
Written by Tony Nuzio on February 10th, 2016
This is a question we hear often, especially from shippers who have negotiated a Guarantee Service Refund Waiver with their parcel carrier(s). What’s a Guaranteed Service Refund Waiver you ask; it’s a provision that the large parcel carriers incorporate into their contracts that will preclude the shipper from filing any claims for shipments that are delivered late. So why would a shipper agree to these provisions in the first place. Let’s examine the facts:
The major parcel carriers, Click to continue »
Written by Tony Nuzio on January 20th, 2016
Unless you’ve been living under a rock the past few weeks, you are aware that there has been a variety of reports pointing to a slowdown in the global economy. The first trading day of 2016 brought a drop in the Dow Jones Industrial Average of almost 300 points. We saw similar market results in the two weeks following January 4th. Analysts attributed Click to continue »
Written by Tony Nuzio on January 6th, 2016
The New Year has begun and shippers who utilize the services of parcel giant, UPS will soon start to see a new fee that may be added to their weekly UPS invoices. The official notice of this new fee occurred way back last year, in October of 2015 when UPS announced their 2016 Annual General Rate Increases. The new fee is called Click to continue »