Articles Index

Reducing Transportation Costs

Transportation costs can be a significant part of a company’s overall logistics spend. With the increases in the price of fuel, the proportion allocated to transportation can be upward of fifty percent. Transportation costs are a major target for company’s to reduce and there are a number of transportation strategies that can be used by management to help reduce costs. This article looks at some of those strategies.

Order And Setup Costs

There are a number of costs that make up the total inventory costs for a company. Order costs include the expenses involved in placing an order for a quantity of material, but this does not include the actual cost of the material itself. Setup costs are incurred when production or assembly lines are changed for example when the manufacturing department has to change equipment for a different product or part to be manufactured. This article looks at both these types of costs.

Continuous Improvement Tools

Total Quality Management is a popular approach to quality in a business that seeks to improve quality and performance which will meet or exceed customer expectations. One core component to TQM is the principle of continuous improvement. There are a number of tools available to ensure that continuous improvement is successful, including process mapping, root cause analysis, and the plan do check act (PDCA) cycle. This article examines these continuous improvement tools in more depth.

Professional Supply Chain Certification

The Institute of Supply Management offers three certifications for supply chain professionals. the Certified in Supply Management (CSM), the Certified Professional in Supplier Diversity (CPSD) and Certified Professional in Supply Management (CPSM). This article examines these certification programs.

Purchasing Managers Index (PMI)

Purchasing Managers Index (PMI) is released on the first business day of each month and is a key near-term indicator used by financial analysts and economists. Economists believe that the PMI is the single best snapshot of the condition of the factory sector and helps predict industrial production. this article looks at the PMI and how it is derived.

Inventory Carrying Costs

The cost of carrying inventory is used to help companies determine how much profit can be made on current inventory. The cost is what a business will incur over a certain period of time, to hold and store its inventory. This article looks at the different components that combine to produce an overall cost of carrying inventory.

Foreign Trade Zones

The Foreign Trade Zone (FTZ) was created in the United States to allow special customs procedures for US companies engaged in international trade-related activities. This article examines the history and benefits of the foreign trade zone.

Ethics In Purchasing

Every day the media has reports of cases of unethical business practices that involves the purchasing of materials or services in almost every country in the world. Although we like to think that the people who determine contracts and purchasing agreements are fair and ethical, there are some that will accept coercion that may affect the award of contracts that are worth thousands of dollars to those that are worth millions of dollars. This article looks at the ethics involved in purchasing.

Inbound Quality Inspections

Quality is important all along the supply chain and one area that is very important in the monitoring of quality is the inspection of items that arrive at the facility from your suppliers. Ensuring that the parts and raw materials are of the correct quality or specifications before the item even enters the plant is a key aspect of ensuring total quality of the finished goods. This article looks at the importance of inbound quality inspections.

Quality In The Purchasing Process

Quality is an important part of the supply chain, whether it is quality inspections during the manufacturing process or checking quality as raw materials and parts enter the factory. Before any part or raw material is used in a manufacturing it is the responsibility of the purchasing department to ensure that the materials that arrive are of the correct quality specification. This article looks at quality in the procurement process.

DB Schenker

DB Schenker is one of the leading globally integrated logistics service providers. It is part of the Deutsche Bahn company and employs in excess 94,000 staff in over 2,000 locations in more than 130 countries. This article looks back at the history of the Schenker company and its success today.

Kuehne and Nagel

Kuehne and Nagel (KN) are the world’s second largest logistics company, the number one global seafreight forwarder, top three global air cargo forwarder, and top three contract logistics provider. The company was founded in 1890 in Germany, and has more than 1000 offices in over 100 countries, and over 63,000 employees. This article examines the history and growth of this logistics leader.

Flying Tigers

The Flying Tigers Line was the first scheduled cargo airline in the United States and a major military charter operator during the Cold War for both cargo and personnel. After forty-three years of operation the company was acquired by FedEx in 1988. This article examines the history of the airline.

Supply Chain Company Failures of the Decade

As we enter a new decade it is time to look back at the past ten years and reflect on three of the largest company failures in the supply chain sector. Although the internet bubble produced a significant number of company failures, changes in customers needs, changes in technology and all round bad management led to some of the more notable failures of the decade.

British Trade Unions

Trade unions in the United Kingdom dates back to the early 1800’s when the Luddites, who were textile workers, protested against the changes brought about the industrial revolution which saw their employment disappear with the introduction of wide-framed automated looms that could be operated by cheap unskilled labor. This article looks at the history of the trade union movement and the largest union in the UK today, Unite.

Lean Certification

As companies want to develop their supply chain management teams they are looking for employees that can offer more than the basic knowledge of logistics and supply chain. Candidates that offer potential employers additional knowledge and experience are in greater demand and candidates can show that they have these skills by formally recognizing them through certifications. This article examines the different types of lean certification available.

Quality Certifications

ASQ, formerly known as the American Society for Quality offers certification in seventeen areas for quality professionals, including certificates for Quality Auditors, Quality Engineers, as well as Six Sigma certification in Green Belt and Black Belt. This article looks at the certifications that ASQ offers.

Strategies For A Successful ERP Implementation

Every company that embarks on an implementation of an enterprise resource planning (ERP) project hopes that the implementation will be a success; on time and on budget. There are a number of critical success factors that could help ensure that success of a typical ERP project. This article highlights some of the most important strategies that can be adopted for a successful ERP implementation.

Airborne Express

Airborne Express had an unusual beginning. It was founded as the Airborne Flower Traffic Association of California in 1946 to fly fresh flowers from the state of Hawaii to the US Mainland. In 1968 Airborne merged with Pacific Air Freight and the focus of the business moved towards regular freight movements. The company continued for another thirty-five years when it was finally purchased by DHL in 2003. This article looks at the history of the company.

DHL

DHL quickly became a leader in international air express delivery shortly after the company was founded in 1969. Initially the company operated a door-to-door express delivery service, transporting documents between San Francisco, California and Honolulu, Hawaii. With expansion into the Asia the company soon became the leader in international overnight service. This article looks at the rise of the overnight delivery company.

Federal Express (FedEx)

FedEx, previously known as Federal Express, is a major player in the package delivery market and a direct competitor to global leader, United Parcel Service (UPS). FedEx was founded in 1971 and now has an annual revenue of $40 billion and 300,000 employees. This article examines the history of the company from its early days in Little Rock to the global logistics company it is today.

United Parcel Service (UPS)

United Parcel Service (UPS) began as company founded with a loan of only $100 back in 1907. Since then the company has grown into the world's largest package delivery company and a leading global provider of specialized transportation and logistics services. This article describes some of the history of this company and how it has grown to the multi-national corporation it is today.

Pick To Voice Warehouse Systems

Companies that operate fast moving and complex warehouses are constantly looking at technology and processes that increase the efficiency of the warehouse. By implementing a "pick to voice" system, accuracy and productivity can increase significantly. This article examines the basics of voice directed systems and the advantages they offer.

Restructuring the USPS

After 237 years, the USPS finds itself in a crippling financial where its future is in doubt. There have been many suggestions on the future of the postal service in the United States, which includes privatizing parts of the USPS or letting the USPS go into receivership. This article looks at some of the solutions that have been proposed to help the USPS return to profitability.

Emissions Trading Scheme

The Emissions Trading Scheme (ETS) is an initiative launched in the European Union (EU) that is part of the overall scheme to reduce climate change by reducing the emissions of greenhouse gases (GHG). The scheme is aimed at reducing emissions in a cost-effective manner so it does not impose a financial burden on companies and therefore gain wider acceptance. The article looks at this policy and how it will affect the aviation industry.