Logistics
Successful logistics relies heavily on information technology to see it through. Our company manages all inbound and outbound freight including dedicated carriage, continuous move opportunities, freight payment, audit, carrier negotiations, rate quotations and trailer pools. We are able to track and trace all transportation modes, including rail shipments, as well as file and resolve all freight loss and damage claims. The Distribution editors peer into their crystal balls to see what's on the horizon for logistics professionals. It's our take on what's ahead in the supply chain, the international arena, technology and warehousing. The supply chain of the future requires that shippers use their logistics expertise to make better business decisions, not decisions that are better for the logistics department. The first decision could very well be outsourcing. lt may not be appropriate for every business, but outsourcing will continue as one of the hottest trends across the supply chain. There are two reasons for expansion. The first is simple: Managers want to cut costs and headaches, and third parties offer an easy, market-friendly solution. (No third party ever proposed that your manager spend more for fewer services.) The second reason reaches beyond cost-cutting or other short-term gains. To remain competitive, companies require flexibility, due in large part to faster cycle times and shorter product lives. And flexibility, generally, becomes more difficult and costly when companies rely exclusively on in-house resources, especially in the area of information systems.
Will a global provider emerge that can serve as a one-stop shop for all logistics needs? Sure. It will occur right around the time the world agrees on a single global currency or one international language. Until then, third parties will depend on partnerships with other logistics providers to offer a complete menu of services. Expect partnerships to become more common among all supply-chain participants-not partnerships where customers strong-arm vendors for price concessions, but real partnerships where resources, gains and risks are shared. Companies sharing your supply chain will depend on your expertise or knowledge in a specific area. If you offer no expertise-if you come to the table solely as a manufacturer, distributor, seller, carrier or vendor-then your position in the supply chain will be precarious.
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