Social Manufacturing. A term coined by Paul Markillie, innovation editor at The Economist to describe the dynamically changing face of manufacturing. In his recent article “A Third Industrial Revolution”, he shows examples of how industry is moving away from huge factories staffed with lots of people mass producing, towards robotics and smart software. We are talking about 3D printing and production services that liken Facebook showing up online. Rapidly. Markillie says, “As manufacturing goes digital…it will allow things to be made economically in much smaller numbers, more flexibly and with a much lower input of labor, thanks to new materials, [and] completely new processes. Factories are becoming “vastly more efficient, thanks to automated milling machines that can swap their own tools, cut in multiple directions and “feel” if something is going wrong, together with robots equipped with vision and other sensing systems.” Fascinating. As staffing needs diminish, cost of labor also declines, encouraging manufacturers to bring some of the work back to America. Technological advancements are everywhere. In our own
3rd Party Logistics business we utilize many state of the art technologies including the
JDA i2 supply chain software that helps grow revenue, increase profits and operate in a more efficient and sustainable way. Other technologies include shipment optimization, web-based tracking and document management systems, that help our clients achieve efficiency and cost savings. For an in depth look at the impact of social manufacturing, here’s the full article in
The Economist.
Leading Edge Logistics is excited to announce the acquisition of C&F Logistics of San Juan, Puerto Rico, joining LEL’s Puerto Rico division, LEL Caribe. The acquisition of C&F, a Non Vessel Owning Common Carrier (NVOCC), makes LEL one of the leading NVOCC’s in the Caribbean. LEL now adds operating warehouse and cross dock facilities in Elizabeth NJ, Jacksonville FL, Miami FL, Los Angeles CA, and San Juan, PR to its North American Operations base.
“This is an exciting opportunity for Leading Edge Logistics as it’s in line with our company’s vision and goal to provide world class logistics service to and from all parts of the world,” said Thomas Torcomian, CEO of LEL. In addition to Puerto Rico, LEL Caribe also provides full and less than container service to and from The Dominican Republic, and soon will expand into all of Central America.
C & F was founded in 1984 by Jose Del Cueto and is a family run company led by Jose Del Cueto and his son Jose Andres. The company provides LTL/LCL service from all parts of North America through LEL’s Caribe consolidation centers destined for San Juan and The Dominican Republic for distribution. The new LEL Caribe currently manages in excess of 50,000 shipments annually and welcomes 55 new C&F employees to the LEL Company.
“Risk IS ou
r business. That’s what this starship is all about. That’s why we’re aboard her” ~ Captain James T. Kirk, U.S.S. Enterprise.
He was one of the great ‘leaders’ of our time, no doubt a hero in minds and hearts of many who considered themselves loyal Trekkies. He had a unique style that demanded respect and trust. Whether a Star Trek fan or not, Captain Kirk’s legacy of saving the planet Earth, many times, negotiating peace talks with the Klingons and stopping the Doomsday machine is nothing short of bravery, courage and brilliant leadership. He had the keen ability to take a risk because the reward was so great. Who couldn’t learn from him? Especially when it comes to logistics management.
Here are 5 key leadership lessons straight from the life and times of Captain James T. Kirk that can help you command your business, organization, nonprofit…or even ship! http://onforb.es/zD1uhO
In the competitive and dynamic world of 3rd Party Logistics Service Providers, it’s fundamental for i2 Transportation Managers and/or i2 Plans to offer ‘best in class’ service features that provide tangible, superior benefits to your logistics team.
Here are 3 key service features to consider:
1. Freight - Managing the Business Process
For a 3PL, managing the business process means managing the entire transportation execution process. More than just moving goods and materials from point A to point B i2 plans coordinate, execute and monitor the entire process from order management through customer service to financial settlement. The i2 sophisticated transaction management tool is capable of handling expanded order volumes tracking, managing and reporting information flow via the internet planning and executing complex shipping issues including flexible delivery schedules and merge-in-transit scenarios.
These features mean that, with i2 you can expect to minimize manual shipping processes thereby resulting in lower cost to the company.
2. Shipping Cargo. Shipping Freight.
Creating Least-Cost Shipment Plans
Creating Loads That Maximize Capacity
The i2 Transportation Manager manages the process. The i2 Transportation Planner™ works seamlessly with the i2 Transportation Manager, to manage the planning process. The i2 Transportation Planner is capable of consolidating orders evaluating alternatives creating and executing optimal load plans.
These three simple features translate to order fulfillment, procurement and replenishment plans that minimize waste and maximize efficiency while taking into consideration such constraints as available facilities, on-hand or just-in-time inventory levels and transportation limitations and/or availability.
What does that mean to the company? Efficiency = reduced cost and that means more money for the company’s bottom line.
3. Shipping and Transportation - Exception Management
Proactive Monitoring and Intelligent Exception Management
Providing real-time accurate and on demand information to trading partners is essential to exceptional customer service. i2 can provide order status data, proactive notification of potential problems real-time location of inventory.
These features mean, once again, higher efficiency and lower cost.
By taking advantage of i2s sophisticated engine, companies can realize a 5 to 15% savings on their overall transportation cost. This is achieved by leveraging available opportunities for consolidation and finding the least cost/most effective combination of carriers and modes.
Once the plan is executed, managing the process, communicating real time information and a 24 hour ability to react to problems insures the shipping team can fulfill their logistics role in the organization; a role they can fill as a cost savings area rather than a cost drain.
It’s no secret that a significant chunk of the Cost of Goods Sold is in transporting material and shipping finished product. Of course, the primary function of logistics providers is the timely movement of these goods and materials.
Point A to Point B - Just the Beginning
But logistics is much more than movement of goods and materials. Logistics providers must also be a reliable supply chain manager that, can not only track shipments and model the most cost effective transportation options, they must communicate this information to their client when their client needs it.
What's the difference between a good 3PL and a great 3PL? A great logistics service provider offers value added services that save time, save money, and prevent problems before they happen. A great 3PL has the knowledgeable people, resources and flexibility to quickly solve them when problems do arise.
Price v. Service
Let’s assume all logistics providers can successfully get goods from point A to point B. One would think, then, that differentiation and competition among 3PLs is based on price. However, there is a disconnect in the industry between most 3PLs and shippers. In a prior post (The 3PL and Shipper Relationship) we briefly discussed the results of an industry survey that clearly indicated Shippers look for quality of service before looking at price while most 3PLs believe price is a shippers primary concern!
What this means for 3PLs is that all logistics providers that want to succeed in the current business market will have to focus on the latter two words: Service - Provider.
A True Value Added Logistics Service Provider
Leading Edge Logistics, as a logistics service provider, has provided value added service to its clients since opening its doors over 15 years ago. At LEL, value added services are not an add on they are core to what we do. For every customer we provide:
- State of the art JDA i2 supply chain software;
- A dedicated Customer Service Team 24/7;
- Human beings; when you call you'll always speak to knowledgeable operations personnel that know your company. No voice mail. Not ever.
- Custom monthly activity reports;
- Web based track and trace services; and
- An individualized, extensive implementation plan including:
- deploying specific SOP’s,
- defining metrics/ benchmarks,
- project plans,
- site visits, and
- detailed reporting
For a complete description of our service offering, visit our Services Overview page.
Like many businesses, when we experience the end result, say the gorgeous fashions draped in retail windows, the latest model cars displayed in a dealer’s showroom or the artistry of meals brought to your table when dining at your favorite restaurant, we seldom think about all the intricate steps it took for us to enjoy the final creation. In the food service industry, for example, the process from farmers, growers, food purveyors, restaurant supply vendors to the table require precise and efficient supply chain management. When the supply chain is working properly and effectively, the customer is satisfied…however when the management chain is less than perfect, much is compromised including food safety, cost management and customer satisfaction. In a recent Inbound Logistics article, David Parsley, senior vice president of supply chain management for Brinker International Inc., owner and operator of more than 1,500 restaurant franchises across the country, says the economy and other factors are forcing the restaurant industry to focus on improving supply chain operations. People aren’t dining out as much and so, when they do, the experience better be a good one, if not perfect. In truth, it can’t afford NOT to. And, he says, this area has been overlooked in many restaurants and foodservice companies. The challenge, he says, is “…managing the supply chain to meet its specifications and expectations for quality and consistency.” Simply put, products need to be in the restaurants when they need it and in the best quality condition by employing cutting edge logistics.
In an effort to create ‘best practices’ in the food service supply chain management, the National Restaurant Association (NRA) is launching a Supply Chain Management Executive Study Group, holding its first meeting May 2012. The study group is set to facilitate and stimulate dialog on how to improve supply chain effectiveness and quality control and will address key issues including rising commodity and wholesale food prices, ingredient sourcing and product traceability.
Read more here about putting the ‘heat lamp’ on foodservice logistics and bringing value to the table: http://bit.ly/sQkP1w.
For additional information, visit www.leadingedgelogistics.com
Happy Thanksgiving to all the great people at Leading Edge Logistics/Alliance Traffic Group and NAL Worldwide Logistics in the US, Mexico and Scotland.
In thinking about what to write this year, I found a letter that I wrote to the company 887 days ago, on June 18, 2009 which I feel is appropriate for this Thanksgiving. It was written during the time that the world economy collapsed and we were faced with our biggest business survival challenge in company history. The world was in the beginnings of the recession which we are still in today.
In my letter to the company, I wrote that “if we all stayed focused and worked hard and remained aggressive we would be ok. These would turn out to be our finest days.” We did. And they were. It’s been said that a smooth sea never made a skillful mariner. Instead of buckling, we learned the art of survival and negotiation; we learned communication and became a closer company. Every single employee put forth tireless efforts and energy to take care of our customers and got us through those days. We were quite a team and continue to be.
There are three compelling reasons why I am reflecting on this time. First, never forget where you came from. It’s safe to say that none of us want to ever go back there again. And second, don’t ever forget what got us back here. When I flash forward 887 days I see all of the wonderful positive changes and people that make up this great family called Leading Edge Logistics. And third, to remind us all that Thanksgiving is a time to reflect on all of the good in our lives. We all have stresses and challenges however this day is for setting that all aside and to consider all of the blessings we have – our families, friends, co-workers and the pivotal moments that make up our life. It is also a time to send good thoughts out to the men and women in our armed forces who keep us all safe.
I am thankful for the Leading Edge Logistics team, and am excited about where we are going. Today we are growing in areas we never thought possible and 887 days from now we will be in areas we can’t even imagine today. We have a lot to be thankful for.
Happy Thanksgiving!
Philadelphia, PA – November 14, 2011 -- Leading Edge Logistics (LEL), one of the fastest growing non-asset based global third party logistics companies, today announced the establishment of Leading Edge Logistics Caribe (LEL Caribe) serving the growing market for logistics in Puerto Rico and the Dominican Republic. According to LEL, currently there are in excess of 70,000 containers that move from the United States to Puerto Rico.
“I am excited about this opportunity as I believe it provides LEL a new niche market to focus on that will deliver value to our customers as well as growth and new profits to the company,” said Tom Torcomian, CEO of LEL.
To head up operations at LEL Caribe, LEL hired George Kuemmerle as Executive Vice President. Kuemmerle has an extensive background in logistics and supply chain with primary emphasis in Puerto Rico, The Caribbean as well as all of South America.
“I’m thrilled to be part of this extremely successful company and grow the LTL consolidation business to and from PR and the Caribbean,” said Kuemmerle.
Kuemmerle has more than 35 years of experience in the ocean transportation industry working with US flag carriers such as Moore McCormick Lines, Delta Lines, Crowley and Navieras de Puerto Rico (PRMMI) in various sales management positions. For the last 14 years, he was Vice President of Sales for Magic Transport Inc., a Puerto Rico based NVOCC managing the US-Puerto Rico sales efforts generating 30 million annually.
Leading Edge Logistics operates 14 offices in the US and Mexico and manages more than 100MM in transportation for a wide range of shippers. LEL utilizes a proprietary approach to focus on the root causes that effect logistics costs. LEL operates i2 Supply Chain Software, one of the most powerful logistics tools available. LEL is a Performance based Logistics company that positions itself as a resource as opposed to an outsource. All shipments are dynamically tracked to ensure 100% customer satisfaction. For additional information, visit www.leadingedgelogistics.com
Recently I came upon new research conducted by Towers Watson, a global consulting firm that helps organizations improve performance through effective people, risk and financial management. The 2011/2012 Towers Watson North American Talent Management and Rewards Survey is comprised of more than 200 HR professionals from organizations across the country who were questioned on the challenges employers have on retaining top talent – specifically critical skills talent. There were some interesting key findings such as;
- The number of companies -- 6 out of 10 -- having trouble retaining critical skills talent has increased 5% from last year, despite the economy.
- According to 65% of the respondents, employees have been working more hours than usual the past three years
- 53% of respondents said employees will continue to put in long hours over the next three years, causing work related stress that has them looking elsewhere. That, and opportunities for promotion.
As I was reading this, I thought about Leading Edge Logistics (LEL) in regards to attracting and retaining top talent – including critical skills talent. No doubt the economy has had an impact on how employers manage their employees and perhaps some have taken a deaf ear/blind eye approach to the needs of their employees because of the economy, high unemployment and an overall factor of fear. However, this doesn’t need to be the case, in any economy, and I’d venture to say especially in a down economy.
Attracting and retaining top talent comes down to having a set of core corporate values that you never compromise on. Ever. LEL established a set of core values 15 years ago and it has been the foundation of how we do business and manage our employees. One very key LEL core value is Teamwork. We empower and develop our employees to work in teams across geographic and departmental boundaries to attain the highest level of efficiency and performance. The other 3 core values are Integrity, Respect and Performance. And the results tell the story. Our present retention rate is 95%, and we are very excited about that number. In addition to implementing a Teamwork environment, we get to 95% by first conducting an extensive 3 day interview process with potential employees to insure their backgrounds and knowledge accompany the present atmosphere within our present employees. Finally, by allowing our employees to be leaders within their accounts and taking care of them by giving them a working environment second to none. Very quickly our employees become an integral part of the organization. In spite of an unpredictable future and the uncertainty of the business environment, the team has the leadership, the structure, the discipline and the training to perform successfully for the company regardless of its operational challenges.
Relationships matter. They matter in family, in friendships and they matter in business. Often they create the foundation for growth, stability and movement – preferably in an upward direction. In an environment that’s predictable and reliable, relationships often flourish. Yet, in an environment that’s muddled with instability and volatility – well, I don’t have to tell you, it can create challenges that may be insurmountable. Add to that a fundamental misunderstanding about the needs of the other and it may very well stunt growth – for both parties involved.
In a recent 3PL & Outsourcing Logistics survey conducted by Eyefortransport, a supply chain and logistics business intelligence provider, there were key noticeable gaps in understanding between 3PLs and Shippers as it relates to their respective views on value proposition. More than 400 3PL management executives and supply chain and logistics executives from manufacturer and retailer customer supply chains were surveyed – 67% represented 3PLs, 25% represented shippers and 6% represented other transportation service providers. The shippers represented several vertical industries including automotive, hi tech, retail, consumer packaged goods, health care and food.
First, let’s take a look at the global challenges present in today’s economy which have a direct impact on shippers and 3PLs alike: Environment disasters, market instability, unpredictable demand, fluctuating fuel costs (while U.S. diesel prices decreased by 2.9 cents to $3.833 per gallon, prices are still up 15% year-to—date from $3.331 in January), currency valuation, excess inventory and if that wasn’t enough, political turmoil. Not pretty.
Not surprising, when surveyed, more than half the respondents do not expect the global economy to return to ‘normal’ levels anytime soon and report directly feeling the impact of the Eurozone and US debt crisis. It’s also interesting to note that more than half the 3PLs see China, South/Latin American and India as having the greatest opportunities.
Returning to the gap in understanding between 3PLs and Shippers, when shippers were asked what they were looking for in 3PLs, a higher percentage viewed best quality service of utmost importance and lower prices second. Geographic expertise ranked third and reputation fourth. The 3PLs were asked what they thought shippers were most interested in and the majority viewed lowest price as the number one value with best quality service closely following.
Key reasons given by shippers why they don’t renew contracts with 3PLs is poor quality service, hidden costs, loss of logistics innovation capacity, relationship management issues and insufficient management. The 3PLs view on cause was similar except in one area – 3PLs grossly overestimated that the lower price of other 3PLs greatly impact shipper’s decision to end contracts or sign elsewhere.
When asked what they thought would be the next step forward for the industry, here’s where the majority agreed, nearly half the shippers and half the 3PLs cited horizontal collaborative distribution as the next step.
No doubt we are an industry in transition, impacted by the economic events of the past two years. And as a 3PL with more than 15 years experience and expertise in the industry, we do see huge value in keeping current with industry trends and analysis like this survey. It comes down to the basis of relationships – know the market, understand your partner’s needs and meet their needs at 150%. Your business will grow and everyone wins.
Thomas Torcomian, CEO
Leading Edge Logistics