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Free Articles From The Current Issue
Glimmers of hopeLogistics costs plunged dramatically last year as the economy contracted. Preliminary data for 2010 show that a recovery is under way, but shippers still face a host of challenges.
Don't breathe a sigh of relief just yet
Despite the recovery, companies are likely to pressure supply chain managers to cut costs even further.
A bright future... together
We must move beyond the typical approach of "state the problem and talk about the frustrations."
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Should you swap commodities with your competitors?
If you're under a mandate to make substantial cuts in supply chain costs, you probably have already "picked the low-hanging fruit"—that is, you've made the obvious, easy-to-achieve improvements. You probably have optimized delivery to your customers by routing orders through the most efficient network of warehouses. It's likely that you also are sourcing from highly efficient manufacturing plants around the world. And perhaps you have partnered with ocean carriers and leveraged your shipping volumes to negotiate the best rates in the industry....
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