Posts Tagged “logistics”
By Michael Patrick ALC Corp.
When thinking about the future of logistics, especially 3rd Party Logistics, I always stop and consider how analytics plays a role. Well, truth be told, they play a very large and important role in the success of the organization. Analytics help to mitigate risk, direct the need for forecasting accuracy, and drive cost efficiencies. At the end of the day all these things are important, but the biggest reason logistics companies use analytics is to meet ever-evolving customer expectations, underscoring the customer-centric approach of these companies.
Forecasting is a really hot topic in the logistics industry. Different types of organizations use all kinds of forecasting. Manufacturers use demand forecasts to set production schedules and manage inbound raw materials. This helps with routing guides and warehousing. “Through data analytics, logistics companies can identify and mitigate potential risks in the supply chain, such as disruption, delays and quality issues.” There is also a need for volume forecasts for RFPs (Request for Pricing) and pricing decisions. It seems like everyone in logistics wants some type of pricing forecast. Suppliers want forecast pricing to gauge budget levels, truckers want forecast pricing to help with asset placement, and third-party companies want forecast pricing to respond to RFPs and help indicate potential earning numbers.
With the increase in fraud in the logistics industry it is more important than ever to be on your toes when it comes to mitigating risk. Criminals are growing daily and are getting increasingly bold in their thirst to create havoc in the industry. They are using email addresses that closely resemble real company emails, cell phones that cannot be tracked, and teammates on the inside of suppliers to steal goods from warehouses and even steal entire trailers. When these trailers are found, they are empty, and the items are gone. They are targeting not just valuables like electronics but also loads of vacuum cleaners and clothing. These items are easily sold on the second-hand market. Analytics can be used to identify and utilize carriers with the appropriate level of insurance and vendors with good ratings.
Customers, suppliers, and logistics organizations will continue to rely on analytics to improve efficiencies, grow profits, and create forecasting to meet customers’ ever-changing expectations. With the transportation industry being a moving target, investing in in-house analytics is a great solution to streamline data and adapt to market trends.
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Michael Patrick started with the Allen Lund Company in January 2018 as a senior business analyst. He has over 25 years of third-party logistics and supply chain management experience. Patrick has a B.S. in Business Administration with an emphasis in Marketing from Winthrop University and a Masters in Business Administration from The Citadel.
michael.patrick@allenlund.com
Container xChange has released its “2023 Shipping Industry Trends and Future of Shipping in 2024” report.
The second annual report analyzes key impacts that shaped the container shipping industry in 2023 and provides predictions and scenarios for 2024 with an aim to help the industry plan ahead for what the report called a “grumpy” 2024, according to a news release.
Overall, the report indicates a high probability of market recovery failure in 2024, the release said.
The industry surveys conducted with supply chain professionals globally indicate that, in 2024, the shipping industry is predicted to grapple with persistently reduced demand and oversupply, potentially leading to fiercer competition, further reduced profits and possible market consolidation, the release said.
Although container schedule reliability is improving, persistent challenges remain. Blank sailings are expected to rise in response to market volatility, while imbalanced container availability, driven by economic crises, may continue in certain regions, according to the release.
The shipping industry faces the risk of oversupply in 2024 as deliveries are set to increase to 2.95 million TEUs, according to the release. The surge in deliveries, including “Megamaxes” and “Neopanamaxes,” may lead to intense competition, reduced profits, and potential mergers and acquisitions, the release said.
Carriers, particularly in North America, are navigating a delicate balance between government-driven demand and rising interest rates.
“Overordering of ships during the economic boom could create overcapacity, turning 2023’s profits into 2024’s losses,” the release said. “The sector is projected to face challenges to restore supply and demand equilibrium until 2026.”
By Jon Manning, ALC Cincinnati
Creighton Abrams once said, “When eating an elephant, take one bite at a time.” AI is that elephant in the logistics space that everyone seems to be talking about. Let’s not kid ourselves here, we humans love the opportunity to have something within our grasp, that ultimately will make our lives less laborious, and can provide boundless information whenever and wherever we need it. Within the past week, I would have loved to have had something tell me how to make a beef Wellington from scratch or provide me with college football picks. That time will come, I’m sure, but even before the time comes the conversation about policy and ethics of AI will certainly be debated in many forums.
Ultimately, the idea is that AI can and will eventually surpass a team of people in breadth and scope of work, in mere seconds, it will become the new standard. I opened ChatGPT recently and typed in, “How will AI help supply chains?” The answer was shocking. In a matter of seconds, it gave me a plethora of ways that AI could be beneficial, such as demand forecasting, inventory management, predictive maintenance, blockchain for transparency, and risk management. For those thought-provoking scholars, that means AI can carve vast efficiencies in any supply chain. In a recent article from Nasdaq, “AI is being used worldwide to improve production times and boost safety in manufacturing plants in what is referred to as the ‘Industry 4.0’ era.” Will the human element still be applicable? The short answer is yes. While AI is revolutionizing the supply chain by optimizing processes, predicting demand, and enhancing efficiency, it will never replace the invaluable human connection, compassion and sensible foresight that supports the industry.
So, where would I guess the logistics industry to be in 5 to 10 years from now? Perhaps we’ll see a litany of providers offering up to customers a comprehensive “AI” program to help manage their supply chain stem to stern, or, most likely, staying the course and navigating the nuances of logistics using the best and brightest talent in the industry, which is none other than human capital. This remains essential for fostering collaboration, resolving complex issues, and navigating the unpredictable challenges inherent in the dynamic world of supply chain management. AI may streamline operations, but the industry’s success will always count on the symbiotic relationship between technological innovation and the irreplaceable human element that is required to cultivate and grow businesses.
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Jon Manning is the general manager of the ALC Cincinnati office. He started in the logistics industry working in transportation sales role in 2002. Manning graduated from Bowling Green State University with a B.A.C. degree in Communications.
jon.manning@allenlund.com
Over 80 percent of U.S. homes contain organic foods, according to a new Nielsen study.
A study of 100,000 households in 2015 and 2016 reported more households than ever bought organic food in 2016, which surpassed 2015 numbers by 3.4 percent.
“These new findings show how important organic has become to millions and millions of American families everywhere – to more than 80% of our nation’s 117 million households,” said Laura Batcha, CEO and executive director of the Organic Trade Association. in a news release. “The organic community is looking forward to working with the new leadership at (the U.S. Department of Agriculture.”
Alaska and Hawaii were excluded from the study. However, the findings found in some states, households with organic produce and other foods topped 90 percent.
The five states which saw the biggest increases in households reporting organic purchases were:
- North Dakota, where 85.6 percent
- Rhode Island, with 88.3 percent
- Percent buying organic, up 12.3 percent from 2015;
- Wyoming, where 90 percent of participating households bought organic in 2016, up 10.8 percent;
- South Dakota, which had the lowest percentage of any state at 68.9 percent, but still recorded a 10 percent increase;
- Wisconsin, where 77.6 percent of participating households bought organic, up 9.1 percent from 2015.
Organic food sales in the U.S. is close to $40 billion a year, accounting for 5 percent of total food sales in the country, according to the Organic Trade Association.
Households that participated in the study scanned Universal Product Codes to track purchases, a practice Nielsen has used since 2002.
NFI Expanding U.S. Produce Business
NFI Industries of Cherry Hill, NJ is bringing fresh produce capabilities to the U.S.
Active in numerous industries, the logistics company made more than 185,000 shipments in 2016, including 10,000 shipments of produce.
The move to expand further into produce was prompted by interest from existing customers and the hiring of more staff members with experience in produce.
NFI has been hauling produce to Canada with a dedicated fleet for several large customers there, and those companies also have business in the U.S.,
Main shipping points for NFI’s U.S. produce business will be Northern California, Yuma, Ariz., Nogales, Ariz., McAllen, Texas, Florida and regional ports.
NFI operates more than 31 million square feet of warehouse and distribution space throughout the U.S., particularly in the eastern half of the country and in Texas, and owns more than 2,400 tractors and more than 8,300 trailers, according to the company website.
Rehrig Pacific Company, a market leader in logistics & supply chain management, reusable transport packaging, and environmental waste & recycling solutions, is pleased to announce the launch of their new GMA Rackable Plastic Pallet.
The GMA Rackable Plastic Pallet is the latest in Rehrig Pacific’s supply chain solutions. “We’ve engineered the GMA Pallet as a result of customizing innovative products and solutions that help our customers achieve a lower cost-per-trip, improve sustainability, and ultimately provide efficiency in every aspect of the supply chain,” said Jerry Koefelda, General Manger for Rehrig Pacific Company.
The new GMA Pallet is 100% recyclable and made from a high-density polyethylene resin using high-pressure injection molding that prevents moisture and bacteria absorption. The GMA Pallet meets current FMSA and ePedigree traceability standards, providing the ability to track and trace product movement throughout the supply chain. The precise monitoring system tracks temperature conditions, shock and vibration to lower the risk of liability due to product damage or loss.
About Rehrig Pacific Company
Rehrig Pacific has been helping customers find better ways to transport and store their products for 100 years. Founded in 1913, Rehrig Pacific has become a world-leading provider of logistics & supply chain management, reusable transport packaging, and environmental waste & recycling solutions. In addition to roll-out carts, recycling bins and commercial containers for the waste & recycling collection industry, Rehrig Pacific also manufactures plastic pallets and containers servicing the agriculture, bakery, beverage, dairy and materials handling industries. Headquartered in Los Angeles, Calif., Rehrig Pacific serves customers with manufacturing and service locations throughout the United States and Mexico in addition to sales offices in South America and Europe.
Press Release: Rehrig Pacific Co.
RWI Transportation, Wilder, Ky., was recognized by Inc. Magazine as one of the fastest growing companies in America.
Inc. Magazine released its 2012 list of the 5,000 fastest-growing private companies in the nation in mid-August, according to a news release.
The list is based on percentage revenue growth over a three-year period.
From 2008 to 2011, RWI transportation reached 17.6% in revenue growth, according to the release.
In June RWI expanded into a new 9,000-facility in Fort Thomas, Ky., to accommodate its expanding logistics unit.
“RWI Transportation has experienced expansive growth through recent years as a result of our reputation for quality service, flexibility and responsiveness to the marketplace,” Richard Bauer, executive vice president and general manager of RWI Transportation, said in the release. “We are extremely proud of the fact that, despite a slowly recovering economic environment, we have been able to achieve such impressive growth, and we’re honored to be recognized for our efforts by Inc. Magazine.”
To view the complete results of the list, visit www.inc.com/inc5000.
Britton Transport Inc., a U.S. subsidiary of Bison Transport Inc., announced 
today the acquisition of Scott’s Express Inc. and Scott’s Transportation Services Inc. (collectively “Scott’s), located in Grand Forks, North Dakota. Scott’s was established in 1952 and is a nationwide trucking and truck brokerage company, specializing in Agribusiness throughout the United States and parts of Canada.
Brad Seymour
“The acquisition of Scott’s expands and builds upon Britton’s customer relationships and capabilities as a logistics service provider in the Red River Valley,” said Dave Britton, President of Britton. “Scott’s has a long tradition of service excellence among agricultural shippers within the valley and will continue to service its customers with Britton’s support. We are excited about the opportunity to serve Scott’s long-term customers with Britton’s asset-based capabilities.”
Brad Seymour, President of Scott’s, will continue with the company in the transition of ownership and servicing of Scott’s customers. He says, “I have known Dave Britton for over 25 years and have a high regard for the way Britton does business. We are very pleased to be joining forces with Britton and I feel it gives our employees and our customers a platform to grow in the years ahead.”
Founded in 1952, Scott’s was initially operated as a filling station but soon after Archie Scott identified a need for sourcing trucks on behalf of local potato farmers. What started as a sideline became the first truck brokerage in the Red River Valley. Today, Scott’s continues to service the potato and specialty crop sector with superior service and an unmatched reputation.
Financial details concerning this transaction have not been disclosed.
(This story appeared 8/28/12 in Potato Bytes, the online publication of the Northern Plains Potato Growers Association)
Chattanooga, Tenn.-based Acess America will use a new office in 
San Antonio to expand its refrigerated produce business
The third-party logistics provider is expanding its produce presence, and opened the Texas office August 1.
It is the first office for the third-party logistics service to focus on refrigerated freight, which is its fastest-growing mode. The San Antiono facility is close to Mexico and southern Texas produce, but Access America plans to use the office to handle all types of produce from throughout the USA.
The company has other offices in Atlanta; Birmingham, Ala.; Eufala, Ala.; Knoxville, Tenn.; Columbus, Ohio; Minneapolis; and Denver, but those locations handle little produce.
by Maglio & Company
GLENDALE, WI – Maglio & Company announces today the expansion of their 
transportation fleet to include 13 new trucks that will be managed by a dedicated team of logistics experts at Blackhawk Transport.
“Being the best fresh produce solutions provider in our distribution area is our commitment, and partnering with the right companies is key to success,” said Sam Maglio, President of Maglio & Company. “Blackhawk reinforces our ability to provide full-service transportation services with prompt deliveries to customers throughout our distribution area. They are not only like-minded in our efforts to maintain the integrity of our perishable cold chain, but they are an established carrier with unbeatable logistic services that will enhance our operation.”
In partnership with Blackhawk, Maglio will ensure that the expanded fleet maintains products at the high standards directed by the Global Food Safety Initiative guidelines (GFSI) and demanded by customers. Each truck will be equipped with technology approved by the Department of Transportation that allows Maglio to obtain route updates and communicate with drivers. The partnership between Maglio and Blackhawk began in the spring of 2012 and trucks being managed by Blackhawk will be traveling in late June.
About Maglio & Company
Headquartered in Glendale, Wisconsin, Maglio & Company is a produce processor, repacker, distributor, and logistics provider. Since 1902, the company has been offering the freshest and best produce with old-fashioned, conscientious quality and service.
By MindShare Strategies, Inc.
for RWI Transportation LLC
Wilder, Ky., February 21, 2012- Truck continues to be the primary mode of 
transportation for temperature-controlled transportation and with today’s capacity crunch this remains a challenge for shippers. According to a just released report by RWI Transportation, an asset-based logistics company providing temperature-controlled transportation for perishable commodities, the top three challenges include capacity, controlling and monitoring the temperature of products during shipping, and cost containment.
The RWI Transportation’s 2012 Temperature-Controlled Transportation Report delves into the challenges and the strategies shippers use to overcome these challenges. The study is based on research from North American shippers of temperature-controlled products. Highlights include:
* Strategies to improving available capacity include finding new carriers as reported by 27 percent of respondents, better planning (22 percent), long-term contracts or commitments to carriers (13 percent) and using asset-based carriers/3PLs (6 percent).
* Shipment rejections due to inappropriate temperature variances are reported by 65 percent of respondents. Variances with too warm temperatures accounts for 42 percent and too cool 23 percent.
* A full 90 percent of respondents indicated that temperature tolerances impact their organizations with 38 indicating a significant to extreme impact.
“This report uncovers challenges specific to shippers of products requiring temperature-controlled environments that we are seeing today as we work closely with our customers,” said Richard Bauer, executive vice president and general manager of RWI Transportation. “Current solutions to these challenges come from understanding and using the data available on shipments including lanes, location, temperature and more. As technology improves our access to better data increases and brings the industry closer to overcoming these challenges.”
Managing in excess of 100,000 shipments annually, RWI handles temperature-controlled and dry freight, and also has specialized expertise in handling fresh produce and other perishable food commodities. RWI is an affiliate of the Castellini Group of Companies, which combines to form one of the largest distributors of fresh produce in the United States. For further information on RWI, visit www.RWItrans.com.
For a full copy of the RWI Transportation’s 2012 Temperature-Controlled Transportation Report visit http://rwitrans.com/resources/whitepapers.asp.
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About RWI Transportation
RWI Transportation LLC is an asset-based logistics company that provides regional and national truckload, LTL, expedited, and refrigerated warehousing services for refrigerated and dry products. RWI is an affiliate of the Castellini Group of Companies, which forms one of the largest distributors of fresh fruits and vegetables in the United States. For more information, visit www.rwitrans.com.