Global economic conditions remain flat, with little growth expected in the near term. Many industries are experiencing over capacity. Security issues remain on the front burner. CTPAT, DHS, and the 24-hour rule are all becoming part of today’s supply chain lexicon. Costs are expected to increase due to barred or detained goods, the cost of compliance and the cost of increased inventories to minimize risk.

Logistics operations are often outsourced and production has become increasingly specialised and geographically dispersed, frequently offshore. As a result, the modern-day supply chain consists of a network of producers, logistics providers, customs agents, warehouses, cross-dock operations and retail outlets.

Analysis suggests that the cost of a firm’s supply chain can typically be estimated at between 3.5 percent and 6 percent of sales revenue. Of these costs, logistics bear the lion’s share, constituting approximately 60 percent of the total supply chain cost. External factors, such as fuel prices and congestion, and internal factors, such as a company’s operational and IT capabilities, both play a role in the disproportionate cost of transportation.

Yet, in all of this, there is but one constant: customers want more for less. The challenge for logistics and supply chain managers is to more fully understand the impact that their day-to-day initiatives have on the firm. In the area of transportation, many of these initiatives have been “point solutions” which were not integrated with the rest of the firm’s infrastructure.

Point solutions that are not integrated will not – in the long run – help the firm grow, or help it improve bottom-line results.

The logistics functions of many supply chains are still frequently managed as a series of distinct steps. Each member of this logistics process often has their own systems to monitor and manage the transit of the goods, making it increasingly difficult to exchange information between producers, partners and customers. As one of the largest cost drivers for logistics, transportation will be continued to be carefully scrutinized for additional efficiency and effectiveness contribution.

What is needed is a logistics management system capable of bringing together information in real-time and from all parties, to provide visibility and control of the entire transportation network.

With a centralised management system in place, logistics operations can capitalise on the next enhancement in transportation management: the combination of data on the movement of goods with RFID, global satellite positioning and web-based mapping tools to provide a graphical representation of the movement of goods

IntraEdge consultants have the expertise and industry knowledge to help you customize a solution and define a strategy that makes sense. Our team of consultants provides the experience and insight need to define a strategy that is both executable and differentiated.

Intraedge had delivered customized soluton to many clients in logistics industry such as DHL EXPRESS and EXEL

For more information on our expertise with logistics and transportation, please contact us at contact@intraedge.com