The Council of Supply Chain Management Professionals (CSCMP) released the 30th Annual State of Logistics Report™ this morning during a press conference at the National Press Club in Washington, D.C., CSCMP collaborates with global strategic management consulting firm A.T. Kearney, as the author and researcher, and with Penske Logistics continuing its longstanding role as presenter of the report. Amid a booming economy, United States Business Logistics Costs (USBLC) rose 11.4% to reach $1.64 trillion, or 8% of 2018’s $20.5 trillion gross domestic product (GDP). The report notes that supply chain capacity is tight enough that a number of major companies have reported in their Securities and Exchange Commission (SEC) filings that they exceeded their 2018 supply chain budget spending. Click "Learn More" to access the report and learn: - Why supply chain costs are rising - How innovations drive today’s state-of-the-art supply chains “This highly anticipated report contains statistics and industry insights that will not only help our members do their jobs better, but also better prepare them for the business demands ahead. Not only do we definitively reveal the cost of logistics in the United States, but we also discuss technology and other forward-thinking applications for leaders to use as they improve their overall supply chain performance.” - Rick Blasgen, president and chief executive officer of CSCMP Visit https://www.naylornetwork.com/cscm-nwl/articles/index.asp?aid=565575&issueID=65288 to view the full article online.
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Capacity in the domestic full truckload (FTL) market is as tight as it’s ever been. Although recently the surge in rates has started to plateau slightly, the industry outlook for the foreseeable future is for continued imbalance in supply and demand in the market. As a result, shippers must become more efficient in how they award lanes and become more attractive to carriers. The most mature shippers are implementing segmentation schemes and other processes that try to create win-win propositions for themselves and their carriers. This article looks at 4 things that all Supply Chain leaders should be asking their Logistics teams to be sure they are doing the things necessary to secure valuable capacity. Read CSCMP's latest Hot Topic, FTL Rate Increases? 4 Questions for Your Logistics Team, written by Glen Goldbach, PWC. Visit https://cscmp.org/store/detail.aspx?id=HT19-FTL to view the full article online.
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Transportation risk in the supply chain is ever present. Losses incurred in this space often impact the bottom line, and at their worst are catastrophic. While federal oversight of the transportation industry, led by the FMCSA, has made strides in improving overall safety on the road, many risks remain that shippers are exposed to and must manage themselves – especially in the absence of a strong national hiring standard. It's critical that supply chain leaders focus on and assign resources within their organization to innovate in the risk management space. Approaches to risk management vary widely. We believe the best risk management programs include two key attributes: 1. They use data to inform carrier selection requirements and quality thresholds. 2. They use data and technology to collect data and to automate decision making in real time. Read CSCMP's latest Hot Topic, Innovation in Transportation Risk Management - written by Lorin Seeks, Director, Quality and Compliance, Convoy. Visit https://cscmp.org/store/detail.aspx?id=HT19-CONVOY to view the full article online.
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As we roll through 2019, it’s not too early to begin thinking about the next decade of supply chain management activity. What will the 20’s decade bring? Where will our industry be in 2030?
The inaugural Logistics 2030: Navigating a Disruptive Decade report focuses on the all-important transportation process which has recently created significant cost, capacity, and service challenges for freight shippers. Key areas of investigation include transportation strategy, financial investment, talent management, and technology adoption. In each area, we analyzed the current state of affairs versus future expectations. Inside the report you will find survey results, participant quotes, and a detailed interpretation of the results, including five action items to prepare your transportation operations for 2030. We believe you will find the report valuable for developing long-range transportation plans for your organization. This report is a CSCMP member benefit and not available for purchase. Thank you for your membership. Visit https://www.naylornetwork.com/cscm-nwl/pdf/L-2030_Transportation_Report_(002).pdf to view the full article online.
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The overall LMI score for May 2019 is 56.7, down from April's reading of 57.9. It is the lowest score in the history of the index and down significantly from this time a year ago when it registered at 72.6. With that being said, May's score is still above 50.0, which indicating growth (albeit at the slowest rate in over 2.5 years). Warehousing Capacity and Transportation Capacity are both reported to be contracting. Warehousing Capacity has been contracting for most of 2019, but this is the first time in the history of the LMI that we have seen a contraction in Transportation Prices. Transportation metrics have been the most dynamic over the history of the LMI®. With an index score of 48.6, Transportation Prices (-3.58) are contracting for the time in the history of the LMI®. This is a far cry from May 2018 when this metric was growing a rate of 94.0. The change index used by the LMI® ranges from 0-100, so to go from growing at essentially the fastest rate possible to contracting in the span of 12 months suggests a significant shift in the market. This decrease came with Transportation Capacity (-4.73) still reporting solid (if slightly decreased) rates of growth at 67.29. As was speculated last month, there may have been an inflection point in April 2019, with the rate of growth in Transportation Capacity surpassing that of Transportation Prices (which is not contracting). In March/April 2018, the index score for Transportation Price was 65 points higher than for Transportation Capacity. Today, Transportation Capacity is higher by 18.7 points.
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