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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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The software question: To buy or build?
Candy makers Just Born Inc. and The Hershey Company may be household names for a lot of great-tasting reasons, but supply chain network optimization isn't one of them. The consumers who buy Just Born's Peeps Marshmallow Candies and Hershey's Kisses Brand Chocolates are unaware of the complex webs of facilities and people that ensure the sweet treats are in retail stores on time and at the right price. Like many companies these days, the confectioners are faced with rising raw material and energy costs. This changing cost picture led them both to undertake projects to evaluate and redesign their supply chain networks. But that's where the similarity ends. Just Born commissioned a custom-designed model and algorithm from researchers at Lehigh University, while in its analysis, Hershey used commercially available supply chain optimization software....
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