Poor allocation management solutions can lead to massive cost increases across the supply chain. Despite these costs, many companies still rely on legacy processes and inefficient means of managing data. As reported by McKinsey & Company, “Close to three-quarters of supply-chain functions rely on the simplest method [of managing allocation]: spreadsheets.” Working with old-fashioned spreadsheets […]
Proper supply chain optimization begins with standardization. The frantic growth of the supply chain and congestion of trade lanes has made it more difficult than ever for logistics businesses to manage their contracts and allocation effectively. Even with a set number of ocean carriers operating, shippers can quickly lose track of their total contract allocation, whether that allocation is being […]
Allocation management remains a challenge for many shippers. According to Inbound Logistics, 48% of shippers rate their forecasting technology as average to very poor. While that statistic may have improved, current forecasting solutions leave much to be desired.
For BCOs, managing their allocation has always been a struggle due to the many variables that can result in shortfall and missing out on containers they contracted for. As explained by McKinsey & Company, the “ability to forecast demand and determine how to meet it has been further challenged by supply chains’ increasingly global scope. And supply-chain leaders haven’t done themselves any favors […]
The global supply chain continues to endure massive challenges, including lacking capacity and failure to utilize such capacity fully. According to the Drewry World Container Index, rates declined in early June 2022 to $7,625.56 per 40ft container (FEU). While that’s a positive movement, it’s still radically higher than the five-year average of $5,214. Meanwhile, demand for oil only continues to […]
Though the World Container Index has dipped slightly in recent weeks, it’s important to note the large-scale growth the WCI has seen in recent years. According to Drewry, on May 12th, 2022, “The composite index decreased by 0.9% […] but remained 33.7% higher than a year ago.”
The freight management world continues to experience disruption after disruption. From late 2021 through early 2022, world container rates soared beyond imagination. In response to any disruption, new logistics technology offers a solution. All companies want growth and success, but that growth must not sacrifice the facts behind all interactions, whether that’s transport contracts, 3PL […]
Come foggy waters, a lighthouse can guide a ship safely to port. In logistics, visibility is vital, and we’re not talking only about navigation. Poor visibility with freight allocation leads to mediocre optimization, with valuable space wasting away unused or shipping times slowed as carriers wait for holds to fill up. The result? Inefficient networks end up plagued by costly non-performance and […]
After a three-year hiatus, TPM 22 provided carriers, shippers, and other stakeholders a chance to catch up and work through the thorny issues that plague our industry. The conference drove home just how important relationships are in a globalized world crisscrossed by supply chains.