Blog Post

Among the myriad of supply chain articles, posts and blogs regarding the UPS and FedEx rate increases for 2017 is the fact that residential and delivery area surcharges, as well as large package surcharges, are increasing more than the freight rates. Of particular impact is the recently announced change in FedEx’s dimensional weight divisor which has the potential impact of increasing billable weight by as much as 19% or more and the change in oversize rules. Large, low density packages, residential and...

As you know, CSCMP is dedicated to the advancement and dissemination of research and knowledge on supply chain management. This was my first CSCMP Annual Conference, so I was extremely excited to learn from the over 3,000 attendees from corporations, suppliers, and academia. However, not everyone had the luxury of attending the conference in Orlando this year (not even with the temptation of a family vacation at Disneyworld), so for those of you who missed it, here are my key...

In this episode of 5 Questions with a Supply Chain Innovator, we talk with James Kellso, an ex-Intel supply chain leader and a professor of supply chain management at Arizona State University. GCS: For our readers who may not know you, what is your background in supply chain management? JK: For 25 years I managed various aspects of supply chain and logistics strategy and systems for the Intel Corporation. I have been a professor of practice in supply chain management at the...

On September 19, FedEx announced their widely expected rate increases for 2017.  As is the industry practice from the 2 duopoly competitors, their general rate increases are typically announced in the September time frame.  In a break from the traditionally “lock-step” increase amounts, FedEx’s increase is an average of 3.9% for Express package and freight rates for the U.S. U.S. export and U.S. import services are 1% less than UPS rates announced several weeks ago. However, the FedEx Ground and...

As nearly everyone with a stake in logistics knows, UPS announced its 2017 General Rate Increase (GRI) of 4.9%.  This September 1 announcement was earlier than usual and noted that additional information and rate changes would be announced on November 18, 2016. In addition, UPS announced that UPS freight rates would increase by an average of 4.9% on September 19, 2016. Although the announcement indicated additional information about other 2017 UPS rate changes and additional charges will be made available on...

On any given day, there are many stories about the rapidly evolving e-commerce industry and its impact on some aspect of the economy. Most are focused on the direct impact to brick and mortar retailers, delivery providers or technology providers. Perhaps not as apparent is the impact to manufacturers which are at the core of supply chains. And perhaps none face a bigger challenge than the hi-tech manufacturers who must navigate not only the evolving demands of e-commerce but must...

Welcome to the first post in a new blog series called 5 Questions with a Supply Chain Innovator! This series will focus on what’s happening in the supply chain and logistics market – from people just like you – i.e., real practitioners. In each blog we hope to peer into the crystal ball and capture insights as well as lessons learned from those on the front lines. And perhaps, we will get to know these Supply Chain Innovators a little...

There has been a plethora of press, advice, speculation and opinion on the transformation of transportation logistics in the fast-changing world of e-commerce. Traditional distribution channels have been disrupted with the emergence of still evolving omni-channel fulfillment concepts and retailers have been slow to adapt. Just today, Macy's announced they will close 100 stores. “We operate in a fast-changing world,” said Macy's Chief Executive Terry Lundgren, and “this involves doing things differently." One of the most concise and compelling studies on managing...

Manufacturers can face daunting challenges in efficiently managing their logistics. From the movement of supplier components to the assembly line, to the movement of finished products from the production floor to the distribution center, manufacturer and supplier logistics require a long list of integrated transportation services and technologies to get the job done. A logistics policy needs to combine the “classic” top-down approach with a bottom-up component. The essence of the bottom-up component is performance measurement of the logistical system. This...

The ever-increasing competitiveness in the shipping industry has spawned a myriad of suggestions, papers and guidelines on how to “optimize” one's logistics operation.  Clearly, nearly every organization has room for improvement in some aspect of its supply chain, but what is optimization and how does an organization embark on optimization initiatives? With an increasing array of technology and tools available to shippers, it sometimes helps to reset to the basics and make sure the solution is “right-sized” to the problem.  The...