Archive for Procurement

Nu Skin Selects XPO as a Lead Logistics Provider in a Vested Outsourcing Agreement

A lead logistics relationship is a significant commitment. There deals should always be based on several key collaborative principals. The XPO/Nu Skin deal is one of the few deals explicitly based on these “getting to win” concepts.

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Bid Activity Strategies and Trends

Bid optimization and procurement are truly foundational for companies to achieve supply chain excellence and drive value. Procurement process and bid activities have a significant impact on shippers and carriers, making it critical for companies to establish good sourcing practices. With 2016 being a record year in terms of bid activities for shippers – due to an industry-wide desire to align shipper and carrier networks in the anticipation of an uncertain 2017 – we wanted […]

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A New and Better Way to Manage Freight Trucking Risk?

I was recently informed of the new start-up company named TransVix that is developing a US trucking futures exchange market. Admittedly, my logistics research is focused more on warehousing than on transportation. However, I do have a solid understanding of both logistics and financial markets, and of financial derivatives such as forward contracts and futures. So I thought I would take this opportunity to discuss the concept of trucking futures and provide my perspective, and […]

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UPS and Additive Manufacturing: Managing a Megatrend

UPS Invests in a 3D Printing Firm to Learn UPS actively monitors emerging technologies including 3D Printing. 3D Printing, also known as additive manufacturing, was not that interesting to UPS initially. But as industrial manufacturers began making components, not prototypes for R&D, but direct material components used in finished products, UPS began to become interested. In time, they realized that this could be a megatrend that could reshape the face of the logistics industry. Alan […]

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Is Your Routing Guide Ready for a Tune Up?

Asking, “What’s the point of conducting regular procurement events?” is just like asking, “What’s the point of conducting routine car maintenance?” You could skip some maintenance, but you’d probably pay for it in the end. And the same goes for procurement events. Whether it’s your supply chain or your car, regular “maintenance” can keep things running smoothly and save you money. To stick with my metaphor, all the parts in your car need to run […]

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Creating Carrier Partnerships is Key to Procurement Success

It’s been a busy year for procurement events. A lot of shippers are realigning their rates and commitments with their carriers in what has been a “soft” market. This has proved cost effective with shippers reducing their rates between 5 and 15 percent. But as we all know, the market is ever changing and the favor will swing the other way eventually, so it’s important not to place all of the focus on cost savings. […]

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Sustainable Procurement is Critical to McDonald’s Future

McDonald’s is the first to admit things are not going as well as the company would like. In its annual report released in March, CEO Steve Easterbrook owned up to the $18 billion fast food retailer’s disappointing performance – sales up only 1 percent with an operating income decline of 8 percent. To right the corporation, the company vowed to  reorganize itself to “put consumers at the forefront of everything we do.” There has been a generational shift away from […]

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Takeaways from the MercuryGate 2015 User Conference

Earlier this week I attended the first day of MercuryGate’s annual user conference at the Cosmopolitan in Las Vegas, NV. The conference’s theme was “Smarter. Stronger. Faster. Better.” That is what MercuryGate is trying to make their customers, and the presentations I attended all hit on this theme. Since last year’s conference, there have been new product releases and upgrades to existing products with one goal in mind – to make managing your transportation easier. […]

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HP and Home Depot Receive Recognition for Excellence in Transportation Sustainability

In the last few weeks I’ve had the opportunity to speak to two of the three large shippers that were SmartWay Excellence awardees.  I spoke to Ron Guzzi the Senior Manager of Transportation Carrier Relations and Sourcing at Home Depot.  I also spoke to Blair Chikasuye, the Global Logistics Environment Manager at Hewlett-Packard (HP), about their transportation related sustainability initiatives. The SmartWay Program is a voluntary collaboration between the U.S. Environmental Protection Agency (EPA), Natural […]

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Kimberly-Clark’s Journey to Logistics Procurement Excellence

Jenni Stamps and Melanie Payne, the Domestic and International Pricing Managers respectively at the Kimberly-Clark Corporation (KCC), spoke at this year’s JDA Focus.  Kimberly-Clark, the $21 billion consumer goods company with brands like Huggies and Kleenex, is a major user of JDA’s TMS solution. The company is also one of the larger shippers in North America.  Domestically, they have 882,000 shipments per year from 800 origins through 140 Kimberly-Clark facilities, and out to 27,000 destinations.  […]

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