November 21 2013

Last month, this blog covered the boom in shipping that can be expected this holiday season. Online shopping is making the need for proper delivery systems even more important. Companies like FedEx and the United States Postal Service have already come out and said they believe there could be record setting days coming up in the next month.

While that is certainly good news it could potentially only be the beginning of a shipping boom. According to an article from Supply Chain Management Review, demand has the potential to surge in 2014. This comes from the latest IHS Global Insight "flash forecast" report.

"Third-quarter real GDP grew at a 2.8 percent annual rate—well above consensus expectations, although 0.8 percentage point of this growth came from increased inventories," Chief U.S. economist Doug Handler told the news source. "We believe at least some of these inventories were unplanned, triggering offsetting forecast changes in the coming months."

The article goes on to say that with the improved economy, growth would accelerate through 2014. This will be lead by an upturn in housing and equipment investment and the absence of a government spending drag. This will also be affected by increased employment rates, as October saw the creation of 204,000 jobs.

All of this will lead to an improved economy and a loosening of the purse strings. Organizations need to make sure its supply chain and logistics solutions are up to the challenge that come along with a sudden boom in demand across the board.

November 18 2013

With the holiday shopping season just about to kick off, there is a new wrinkle that many businesses need to be aware of. That is the growing use of e-commerce solutions in the way that consumers shop. This has become even more important for companies as access to the internet either in-home or on mobile devices has become more prolific, not to mention preferable to the crowded shopping malls.

To have a proper e-commerce solution, businesses need to consider several different areas of operation. These include having a functional website, a secure credit card processing system and a reliable shipping and logistics system. The latter is one that even the biggest online retailers have struggled with.

A recent New York Times article highlighted a move made by Amazon. The company announced a partnership with the United States Postal Service that will see the service handle Sunday, same-day deliveries. It is available now in the New York metropolitan areas and Los Angeles. In 2014 it will expand to other cities including Dallas, Houston, New Orleans and Phoenix.

According to a spokesperson for the USPS, the e-commerce market is worth $186 billion and shipping is one way to get involved in it. The postal service was chosen because of its ability to reach every home and business in the area.

A reliable shipping option is crucial for businesses during the holiday shopping season. Any package that is lost or delayed in transit can ruin a company's reputation as well as someone's holiday.

November 14 2013

Every organization has to worry about the supply chain and logistics. For a small mom and pop shop around the corner that could mean scheduling pickups and filling a personal vehicle to make deliveries. Larger companies with deeper pockets have more options.

According to an article from Bloomberg, Apple has just set a record by deploying $10.5 billion worth of manufacturing technology like assembly robots and milling machines. These are being used to handle a lot of the behind-the-scenes workload including polishing the hard plastic of the iPhone 5Cs, carving the MacBook's aluminum body and testing the mobile device camera lens.

"The spending, which Apple outlined in its fiscal 2014 capital-expenditure forecast, underscores how the world's most valuable company is diving deeper into designing and inventing technology for its manufacturing process," the article reads.

Even with a record amount of money poured into the manufacturing aspects of their businesses, this is only one aspect of the supply chain. Having a completely automated construction line will certainly speed up production, but without a proper second leg like delivery, that part of the plan is meaningless. It doesn't matter how fast Apple can produce iPhones, iPads and MacBooks. If the company does not have a reliable way to get the devices into the hands of consumers than it is all for not.
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This is why a reliable delivery service is crucial. Whether it means shipping across the country or across Northeastern Ohio, every company needs to be sure that it has a proper shipping service.

November 13 2013

There is a good chance that whoever is reading this article has done some kind of car maintenance in the last month. From changing wipers or lights to visiting a mechanic for an oil change or repairs, car parts are a massive aftermarket industry and because of this, the logistics of getting those parts becomes more important.

The Automotive supply chain offers an interesting challenge because unlike many other industries it is used heavily by both consumers and businesses. For every mechanic trying to keep consumer cars on the road there is a father and son bonding over a project vehicle in the garage that has taken years to rebuild.

In 2012, aftermarket products represented a $307.7 billion market according to the Automotive Aftermarket Industry Association (AAIA). This is easy to see as the average life of a vehicle is 11.4 years in 2013.

A recent blog post for Cerasis focused on the growing importance of automotive logistics.

"The forecast model demonstrates that despite strong new vehicle sales, historic high gas prices and a flattening of miles driven, our industry is poised for steady growth," said Kathleen Schmatz, AAIA president and CEO. "Why? The average age of vehicles is 11.3 years, the oldest ever, and the age mix of vehicles continues to favor older vehicles, creating a robust sweet spot for service and repair."

This is why it is so important for any company that relies on automotive logistics to make sure it is partnered with an experienced shipping and supply chain company that understands the nuances of the car industry.