Welcome to the 95th edition of The LogTech Letter. TLL is a weekly look at the impact technology is having on the world of global and domestic logistics. Last week, I’m exploring the extent to which technology can keep mid-market forwarders very much in the game
Great article Eric. As a shipper/importer many of your assumptions are spot on. Logistics & Supply Chain professionals have had to be on their toes for a while and even prior to Covid. Primarily starting around the time the China tariffs were implemented. Long gone are the days of a fixed landed cost template to account for imported goods and using dashboards that babysit loads. Many times now we have to pivot frequently based on sales forecasting inaccuracy, vendors pushing price increases, or even some requesting down payments to offset their own risk exposure. All contributing to rising total landed costs of materials/goods. The key today is being proactive vs reactive to your surrounding factors. The way I talk within the company is that I am there to be a "bullpen" for the executive team. To provide as many options and varieties of costs to do so based on the decisions they want to make. To also provide a roadmap to get to the direction they want to lead the company. Unfortunately many companies still don't let Logistics/Transportation have its own seat at the table. They are hidden behind Purchasing or a subset of Warehousing/Distribution and not as a stand alone entity. That choice can be costly if treated like the bastard step child of the company family. Many times Logistics is only brought in when the proverbial crap hits the fan to save the day. On the flipside the seat at the table can increase profitability when brought in early on projects, advising on transportation modeling. Apologize for lengthy response but this topic is a rabbit hole that can go on and on for those like me. Appreciate all of your insights and most importantly unfiltered opinions in the subject matter. Truly refreshing.
Great article Eric. As a shipper/importer many of your assumptions are spot on. Logistics & Supply Chain professionals have had to be on their toes for a while and even prior to Covid. Primarily starting around the time the China tariffs were implemented. Long gone are the days of a fixed landed cost template to account for imported goods and using dashboards that babysit loads. Many times now we have to pivot frequently based on sales forecasting inaccuracy, vendors pushing price increases, or even some requesting down payments to offset their own risk exposure. All contributing to rising total landed costs of materials/goods. The key today is being proactive vs reactive to your surrounding factors. The way I talk within the company is that I am there to be a "bullpen" for the executive team. To provide as many options and varieties of costs to do so based on the decisions they want to make. To also provide a roadmap to get to the direction they want to lead the company. Unfortunately many companies still don't let Logistics/Transportation have its own seat at the table. They are hidden behind Purchasing or a subset of Warehousing/Distribution and not as a stand alone entity. That choice can be costly if treated like the bastard step child of the company family. Many times Logistics is only brought in when the proverbial crap hits the fan to save the day. On the flipside the seat at the table can increase profitability when brought in early on projects, advising on transportation modeling. Apologize for lengthy response but this topic is a rabbit hole that can go on and on for those like me. Appreciate all of your insights and most importantly unfiltered opinions in the subject matter. Truly refreshing.