Demand for U.S. industrial distribution centers, larger than 300,000 square feet, is high and rising, according to Jones Lang LaSalle's "Big Box Velocity Index."

Improving economic conditions, the continuing growth of e-commerce and a deep bench of tenants seeking space have all created this highly competitive environment for industrial and warehousing space. As a result, there is 96.7 million square feet of industrial construction under way, with nearly half speculative, with an average building size of 360,000 square feet.

How successful have you been in getting the people in purchasing or merchandising to understand or even care about your constraints such as dock doors, storage capacity or workforce limitations? The fact is, until you can get corporate planning systems intimately familiar with your real-world, ever-changing logistics constraints, you’ll be the one who ends up scrambling.

That’s why supply chain executives and DC managers should care about supply chain planning—it will make your life a lot easier.

A recent review of global logistics activity in 2013 indicates to analysts at Tompkins International that this sector is poised for "aggressive" growth in the U.S., due in part to the relocation of manufacturing sites from Asia to North America – particularly Mexico – along with the rise of simpler and less expensive cloud-based computing options for managing logistics operations.

To most people, and even many C-Level retail executives, warehouses are those large, far-flung structures where raw materials and manufactured goods are kept. They're the places where forklifts move pallets around and guys wear hardhats.

 

But the definition of "warehouse" is so much broader today, thanks to modern tracking technology and analytics. If a retail supply chain is properly automated, the warehouse is wherever your materials or products are right now. That could be aboard a ship or aircraft, or on trucks headed to customer outlets.

In today's globalized economy, supply chain professionals work together to deliver products to the end customer while working with different organizations and different business units within the same organization. During this process, supply chain managers face a challenge in controlling inventories and costs while maximizing customer service performance.

A supply chain -- a network of production and exchange relationships -- spans multiple levels of production or task decomposition to let a producer buy inputs and sell outputs. Traditionally, supply chains have been formed and maintained over an extended period with extensive human interactions. Companies around the world base their business models on offering a range of products to satisfy the ever-changing consumer demand.

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Because supply chain professionals are at the intersection of so many varied groups within any business, they are uniquely positioned to propel a company forward or, conversely, to hasten its demise.

If your internal supply chain customers and external suppliers were surveyed about the service-level quality of your organization, would they say internal customers receive quality products from suppliers on time and as desired? Would they indicate your processes are clearly defined and measured by the appropriate metrics? Would finance and audit professionals report the organization provides the proper controls?

Despite rising concerns about legislative and regulatory pressures, optimism among U.S. industrial manufacturers regarding the global economic outlook reached the highest level since the first quarter of 2012, according to the Q3 2013 Manufacturing Barometer, just released by PwC US.  In the third quarter of 2013, 40 percent of respondents expressed optimism regarding the world economy for the next 12 months, up from 31 percent in the prior quarter and 29 percent from the third quarter of 2012.

The primary growth driver remains the U.S. economy, with 60 percent expressing optimism about the domestic outlook.  In addition, 78 percent believe the U.S. economy grew in the third quarter, up six points from the prior quarter and representing the highest level since 2006.  

Richard "Rick" O’Dell has led Johns Creek-based logistics company Saia Inc. as both its president and CEO since 2006.

Saia had 2012 revenues of $1.1 billion, but O’Dell said less-than-truckload shipping is still facing some challenges as the economy recovers, including the rising costs of health care and fuel, as well as new regulations affecting the transportation industry.

Widespread improvement in a number of indexes suggests optimism for the manufacturing sector in the next three to six months, according to the quarterly Manufacturers Alliance for Productivity and Innovation (MAPI) Business Outlook.

The survey’s composite index is a leading indicator for the manufacturing sector. The September 2013 composite index advanced to 66 from 58 in the June survey, the third straight quarterly advance and the highest level since the December 2011 reading of 66. For 16 quarters, the index has remained above the threshold of 50, the dividing line separating contraction and expansion.

There are big opportunities for companies to save money by optimizing indirect procurement, according to Mark Hillman, global head of market insights and analysis with Procurian. He explains how it can be done.

The opportunity for optimizing procurement "is quite large," says Hillman. For the average company, non-core spending makes up between 15 percent and 40 percent of revenues. Businesses can realize significant advantages by scrutinizing their indirect spend.

Fitbit, light-controlled clothing, Google Glass, bendable screens, armbands that detect moods, smart watches, and 3D-printed rings that operate as subway passes -- everywhere you look, all signs seem to point to the mass-market potential of wearable technology.

While the wearable technology evolution has been on the electronics wish list radar screen for years, the chatter is slowly becoming reality and more real-life examples are moving from prototype to mainstream media headlines. As always, the shift to these kinds of products will have an impact on design, supply chain, and manufacturing practices.

Labor shortages, increased transportation costs and delays are only the most visible consequences of the U.S. Department of Transportation's (DOT) Hours-of-Service ruling.  On July 1, 2013, DOT's Federal Motor Carrier Safety Administration (FSCMA) placed more stringent provisions into the Hours-of-Service rules. The U.S. Federal Court ruling allowing the change ended nearly a decade of push-back from the transportation industry.

But the ripple effect of this change goes beyond transportation.

They must have more confidence in the government in the UK than we do in the US. That’s one conclusion to draw from recent comments by Wolfgang Schreiber, chief executive of Bentley Motors, the high-end luxury automaker, where he basically asked for the British government to lend a helping hand to the auto industry.

Speaking to Louise Armitstead, a reporter with the UK newspaper, The Daily Telegraph, Schreiber said, rather matter-of-factly, "The supply chain here in the UK is not good enough for being robust enough for the future." By the supply chain, he’s talking specifically about "less sophisticated areas, like making basic metal parts, sealants, rubber parts."

As we approach the one-year anniversary of Hurricane Sandy’s devastating path of destruction across the Eastern Seaboard, I recall the extensive aftermath of the storm as millions of people struggled to rebuild and gain access to basic resources such as gas and electricity.

The year prior to Sandy, the global economy was shaken by the earthquake and subsequent tsunami in Japan. Damage and workforce displacement left critical suppliers and subcontractors for automakers, technology firms, and countless other industries short on parts or completely out of supply. The generally reliable and stable supply chains that we often take for granted were brought to their knees, and the economy was in a state of duress. What can we do to anticipate and plan for catastrophes like this in the future?