2016 STATE OF LOGISTICS: TIME TO PURSUE MUTUAL BENEFITS

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 Read more

HOW TO GET THE BEST DEAL ON TRANSPORTATION COST REDUCTIONS

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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 Read more

WAL-MART TO BEGIN 2-DAY SHIPPING IN AN EFFORT TO COMPETE WITH AMAZON PRIME

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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 Read more

HERE WE GO AGAIN! UPS AND FEDEX INCREASE GROUND RATES

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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/

 

LOGISTICS PROFESSIONALS FACING REDUCED SALARIES AND INCREASED RESPONSIBILITIES

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 Read more