Dramatic shifts in cost competitiveness around the world over the past decade are changing global sourcing and manufacturing investment strategies, according to a new report titled The Shifting Economics of Global Manufacturing: How Cost Competitiveness Is Changing Worldwide by The Boston Consulting Group (BCG). 

The new report finds that improved cost competitiveness is leading to new factory investment in countries such as the UK and Mexico, where productivity has largely offset wage increases.

MHI has announced that MODEX 2016 will be held April 4-7, 2016 at the Georgia World Congress Center in Atlanta, GA.

MODEX 2016 will showcase equipment and systems solutions as well as learning opportunities that span the entire supply chain, from material handling to logistics across manufacturing, assembly and distribution. More than 700 exhibitors will cover the 250,000 square foot show floor.

MODEX brings together manufacturers, consultants, third party logistics providers, publishers and systems integrators to demonstrate their equipment, systems and services to tens of thousands of manufacturing and supply chain professionals from around the globe. 

Facing pressure to manage escalating costs while fulfilling an increasing number of multi-channel orders, some companies are applying the kitchen sink-strategy in the hopes of finding that one miracle solution.

 

Whether they are investing in new software, new technology, or combining traditional approaches, the search is on for a procedure to respond to the challenges of multi-channel distribution. Forty-nine percent of distribution companies consider it a top priority, according to a study by Modern Materials Handling.

Job prospects in the transport sector are at their highest level for eighteen months, according to the latest survey by Manpower. And it highlighted the fact that drivers taking time out to do their Driver CPCs had left companies short of staff. 

Transport recruitment always rises in the last quarter of the year, but this year is particularly high. At +9 per cent, the sector’s employment outlook has risen six points compared to the last quarter, and now stands three points ahead of the national average. 

To prevent truck drivers from using mobile phones while behind the wheel, a Mechanicville company has installed technology that blocks calls, texts and Internet use.

DeCrescente Distributing Co. uses devices that keep cellphones or tablets from being used when their trucks are in motion.

When a call or text comes in, "the natural, human nature is to grab it and see who it is," said Tom Turcotte, vice president of operations. "The bottom line is we want to get everybody home safe and to keep everyone on the road safe."

Ports on the Eastern Seaboard are benefiting from the rumors of labor strikes and other supply chain disruptions surrounding their West Coast colleagues. Although West Coast ports remain dominant, the nation’s East Coast ports are enjoying rapid growth and demand for space, according to JLL’s sixth annual Seaport Outlook.

"Shippers are turning to the Suez Canal to reach U.S. East Coast population centers," said Rich Thompson, managing director of JLL’s Ports Airports and Global Infrastructure (PAGI) group. "This route helps offset the risks associated with potential disruption and costs associated with the Panama Canal and/or delays and potential disruptions at West Coast ports such as LA/Long Beach."

Despite the vital role that technology plays in helping companies manage the complexity and volatility in global operations, only 48 percent of the more than 1,000 global companies surveyed for a new Accenture (NYSE:ACN) study use technology extensively in their emerging market supply chains. 

Furthermore, 45 percent of the companies from 10 industry sectors sampled for the study, "Supply Chain Success Factors in Emerging Markets," make only moderate use of technology, automating some essential activities but supporting them with manual processes. The Accenture research also identified ‘supply chain leaders’ from the sample and found that 73 percent of them use technology extensively in the supply chains that support their emerging market presence, versus only 31 percent of lower performers.

Several years ago, as online shopping grew in popularity, traditional retailers grew deeply concerned about "showrooming" –when consumers visit brick-and-mortar stores to test out products but ultimately make their purchase online from a competitor.

 

Now, a new study from Nielsen adds to a growing body of research that shows that showrooming is not, in fact, the biggest factor upending traditional shopping patterns.

 

Nielsen surveyed more than 30,000 consumers across 60 countries for its report on the state of e-commerce, which it released last week. And while 51 percent of respondents said they browse products in stores before ultimately buying them on the Web, an even larger number said they do the opposite:  60 percent of consumers said they often browse products online before ultimately purchasing them in stores.

Retailers concerned by the lack of a West Coast longshoremen’s contract will continue to bring merchandise into the country at above-average levels this month but volume will drop from the record set in August, according to the monthly Global Port Tracker report by the National Retail Federation and Hackett Associates.

"The negotiations have made progress and retailers have been stocking up, but there’s still cargo that needs to arrive before the holiday season kicks off," NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. "Retailers are making sure that consumer demand during the holidays will be met."

Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money.  In a series of blog posts, I’ll outline these issues and discuss some ideas around how to avoid these practices.

 

We all understand the appeal of moving manufacturing offshore;   In many cases, offshore manufacturing is considerably cheaper, is apparently easier (just send the requirements and they build it!)  But before you pull the trigger, make sure you understand these cost factors that don’t often get considered.

MHI will celebrate our 70th Anniversary with an event during ProMat 2015 on Wednesday, March 25. The event will feature entertainment from comedian and impressionist Frank Caliendo.

A portion of ticket sales will be donated to the Material Handling Education Foundation, Inc. (MHEFI). MHEFI board members will be in attendance along with students who have benefited from MHEFI programs.

Supply chain used to be about transportation. Responsibility was looked at from a regional perspective. You were responsible for goods within your slice of the cycle. Once the goods left your hands they were out of your control. Today, supply chain has expanded and broadened—and companies have to know how they are moving things end to end. They are responsible for the full trip. Sometimes you’re responsible for goods that you didn’t ship or hold in your hands.

There’s more responsibility and supply chains are a high priority, often reporting to the CEO. Smart manufacturing, or industry 4.0, is changing the way companies manage the supply chain and maintain responsibility for goods and deliveries. Here’s a look at some of the major factors behind the surge in interest in Smart Manufacturing.

Cold chain refers to a series of uninterrupted temperature-controlled links in a logistics chain. Common items that are stored in a cold storage facility are agricultural produce, such as fruits and vegetables, which spoil easily. In order to prevent spoilage, operators must keep things cool and fresh, however, that often increases energy costs.

 

According to a report, "Global Frozen Food Market Analysis by Products Type and by Geography—Trends and Forecasts (2010-2015)," the frozen food market experienced an expected growth rate from $218.41 billion in 2010 to $261.50 billion by 2015. It’s true—the cold storage business is undoubtedly a pricey one. In a cold chain logistics system that functions well, you can easily double the shelf life of fresh food. Extending the life of a product can increase return on investment, and in a pricey business that is only set to increase, that is certainly a smart move.

ARC was briefed by Mike Mulqueen of Manhattan Associates on their transportation management (TMS) product. Mike is a Senior Director for Product Management at Manhattan. What I found most interesting was a short conversation we had about the carrier capacity crunch and the role various supply chain software solutions can play in improving matters for shippers.

 

I wanted to dig deeper on Mike’s thoughts around the capacity crunch so I asked Mike if he would be open to being interviewed. He was.

When people think "robots," they often envision vaguely humanoid sci-fi-movie beings with strange speech patterns. But today’s state-of-the-art robots are a far cry from that outdated stereotype. And they are showing up for work. Increasingly flexible, responsive, sensing—even humanlike—robots are beginning to augment and replace labor in a wide range of industries: a megatrend that is transforming the economics of manufacturing and reshaping the business landscape.

Already used to fight wars, remove dangerous land mines, and fill customer orders, robots can also clean, dance, and play the violin; assist with surgery and rehabilitation, bathe elderly patients, measure and deliver medication, and offer companionship; and provide disaster relief, report the news, and drive cars. In short, robots can perform quite a few of the jobs that humans currently do—often more efficiently and at a far lower cost.