Transportation Management's Role in Supply Chain Excellence

At the turn on the new year, it will be important to face new concepts and challenges with transportation management. Services offered nVision help you enhance current processes with the simplest, best solutions out there. We understand how important it is to have seasoned professions that can help you streamline your supply chain. For more information on our logistics management software, please visit the nVision Global website.

To help put the changing roles in transportation management into perspective, we found an great article on Logistics Management. Let nVision Global simplify the five "personified" roles. Working hand-and-hand with you, we can work to contribute to the supply chain excellence this article talks about!

Transportation management's role in the new supply chain

-- Logistics Management, 12/1/2009

Historically, logistics and supply chain professionals excelled at managing the core components of transportation, including truck routing and the sourcing of air contracts; yet few of them understood the direct and indirect impact transportation management has on other parts of a business.

That's all changed. These days, it's imperative that logistics professionals gain a comprehensive understanding of how transportation management affects all areas of a company—from business strategy to finance, sales to service—in order to develop a supply chain that drives value to the bottom line.

In this session, Albert Lo and Dan Albright of Capgemini ask attendees to take the first step in that direction. “Few shippers first grasp the holistic approach to transportation management,” says Albright. “They understand the components, but they don't know how transportation management fits into the performance of the entire organization.”

To help break down those barriers, Lo and Albright introduced attendees to the five “personified” roles of transportation management: The Service Representative (by managing risk of service interruptions); The Gymnast (driving value through innovative programs); The Bouncer (protecting cargo from increasing risk of theft); The Environmentalist (adopting leading supply chain practices); and the Financial Analyst (promoting lean practices to cut waste and drive value).

“Performing these roles will allow the transportation management function to contribute to overall supply chain excellence,” says Albright, who calls supply chain excellence an “ever-changing” goal that companies must strive to achieve. “As customer requirements, infrastructure, and technology change, so too do the requirements to achieve supply chain excellence.”

To view article please click here.

Ocean shipping/Global Logstics: Port Tracker report calls for positive growth in early 2010

WASHINGTON-Even though import cargo volumes at major U.S. container ports has been down year-over-year for 27 consecutive months through September, there is a chance these volumes may shift towards year-over-year increases in early 2010, according to the monthly Port Tracker report from IHS Global Insight and the National Retail Federation.

While a change in direction regarding the volumes is possible, NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said in a statement that while there is not yet enough data to establish a clear trend, he is hopeful a recovery is coming.

According to Port Tracker data, U.S. ports included in this report handled 1.14 Twenty-foot equivalent units (TEU) in September, which fell short of August's 1.17 million TEU. Despite the sequential decline, September was the fifth straight month to surpass the one million container mark. September was down 16 percent year-over-year.

Port trade forecasts in the report cover all containerized trade, not just retail goods, according to IHS Global Insight and the NRF. The ports selected for coverage are those considered most important to retailers, but, for reasons of monitoring the potential for overall congestion in the system, the organizations look at containerized imports, including business-to-business shipments of items like components used in manufacturing or other wholesale goods.

The ports surveyed in the report include: Los Angeles/Long Beach, Oakland, Tacoma, Seattle, New York/New Jersey, Hampton Roads, Charleston, and Savannah.

As has been the case with other freight transportation modes, the healthier year-over-year volume comparisons being projected may have more to do with the economy tumbling this time a year rather than true economic growth and recovery.

IHS Global Insight Economist Paul Bingham told LM that fundamentally the retail volume turning positive is a sign of the recovery, albeit a weak one.

"Year-over-year comparisons get easier from now on for 2010 vs. 2009 as opposed to most of this year versus 2008, especially during the period before the 2008 financial crisis and subsequent sharp drop off in trade volumes that followed," said Bingham. "For shippers, the takeaways are that volumes are still weak, and though the upswing continues, the seasonal pattern continues with monthly volume declines in winter post-peak season."

While holiday shopping has the potential to portend an uptick in consumer spending, Bingham said this is an example of the month-to-month seasonal trend at work, with spring uptick following the trough in slow season in February happening every year.

"There is no sign of strong holiday consumer spending, and retailers have tried to be careful to try to balance still-weak sales against the desire to not suffer stock outs of those items that are selling this season," said Bingham. "Inventories are still lean. Retail port volume growth will likely remain soft as retailers will wait until next year to take inventories to high levels as the pent up consumer demand starts to show up in store sales."

Read the rest of the logisticsmgmt.com article here.

Green logistics: Industry expert cites ways of going green and cutting costs at the same time

WALTHAM, Mass.-It's possible to save money and the environment at the same time, and if you need proof, just look at the Green Machine.

That was the message Jack Ampuja, president of the consulting firm Supply Chain Optimizers, and executive director of the Center for Supply Chain Excellence at Niagara University in Lewiston, N.Y., was trying to get across at a Council of Supply Chain Management Professionals (CSCMP) New England Round Table event in Waltham, Mass. Tuesday night.

The event featured, among other things, a description of a new type of tractor for hauling freight, which Ampuja dubbed the "Green Machine" because of its environmentally-friendly design.

The tractor, he said, was conceived and built by a number of former trucking industry workers and veterans in Michigan. The tractor, Ampuja said, contains a long list of "green" enhancements, including nitrogen-filled tires (ordinary air escapes through the rubber over time), carbon-fiber springs, and a special hydrogen injector system for the engine.

Right now, companies like office furniture maker Hayworth, along with Pepsi, Anheuser-Busch and other companies, are expecting to save thousands of gallons of fuel per truck per year, and cut greenhouse gas emissions by amounts measured in metric tons.

But Ampuja was selling a point, not a truck: for all the cutting-edge improvements and patented design, Ampuja said the tractor is built out of off-the-shelf parts, and therefore costs the same as any other tractor on the market, so using them will not cost extra. If anything, Ampuja said, using them will save money long-term.

And that, Ampuja told the packed room, is the reality of the green movement in the corporate world.

"They (cutting costs and helping the environment) are not at odds," he said. "They complement each other."

Ampuja cited a recent study by the Aberdeen Group which found that leading companies are "greening up" by, among other things, redesigning logistics systems and redesigning packaging.

In addition to technological advances, Ampuja challenged the audience of supply chain managers, consultants and vendors to look to their own operations for other ways to go green and save money. Network optimization applications, he said, will be another major component of a green plan in the future, especially with oil prices expected to rise.

This week, prices passed the $80/barrel mark, and the room was silent when Ampuja asked if anyone thought prices would fall anytime soon. That will become a big problem, he said, for unprepared companies with poorly-organized supply chains.

Read the rest of the logisticsmgmt.com article here.

New Study Highlights Role of Third-Party Logistics Providers in Helping Shippers Adapt to Economic Challenges

The fourteenth Annual Third Party Logistics (3PL) Study examining the current global market for logistics outsourcing was recently released. The study surveyed shippers and logistics service providers in North America, Europe, Asia Pacific and Latin America. Key findings included:

* The economic downturn has created significant challenges for both shippers and third-party logistics providers (3PLs) – 82% of shippers are employing cost-cutting tactics and 60% are rethinking their supply chains and relationships with 3PLs
* 88% of shippers feel that IT-based logistics services are important, but only 42% are satisfied with the capabilities of their provider – as a result of this IT capability gap, shipper respondents reported a lack of the key performance indicators, alerts and visibility required for an adaptive supply chain and 3PLs reported similar difficulties in getting the data and commitment they need from shippers
* There are significant differences between how 3PLs evaluate their role in the supply chain and how they are viewed by shippers – 59% of shippers feel their use of 3PLs has a positive effect on customer service compared to 88% of 3PL respondents
* Shipper respondents devote an average of between 47% (in North America) and 66% (in Europe) of their total logistics expenditures to outsourcing and this is expected to increase in the next five years.

“Shipper-3PL relationships are being impacted significantly by the prevailing uncertainty and economic volatility in global markets,” said Dr. C. John Langley Jr., Professor of Supply Chain Management, Georgia Institute of Technology. “It is very important for 3PLs to mitigate or reduce any financial risk or service level impact that this may cause.”

Economic uncertainty and the use of 3PLs
Economic volatility has challenged shippers and 3PLs alike to contend with factors such as unpredictable demand, instability in fuel costs and currency valuation, and excess inventory. In response, not only are shippers attempting to cut costs, 77% are also seeking to improve forecasting and inventory management.

Cost reduction and improved reliability in services are the main factors likely to increase shipper respondents’ use of 3PLs. This includes converting fixed to variable costs (59%), expanding to new markets or offering new products (56%), and restructuring the supply chain network to improve financial performance (48%).

Read the rest of the mhia.org article here.

ISM: Slow but steady economic improvement

According to the Institute for Supply Management (ISM), the economy is slowly improving, but it is still improving, and likely will continue to grow, based on ISM’s latest industry report.

Norbert Ore, chairman of ISM’s manufacturing business survey committee, said many economic indicators are still below 50 on the 0-100 scale, meaning they are technically “contracting,” but there are signs of steady improvement. Ore said June marked the second month in a row that “the overall economy has experienced some slight growth.”

For example, Ore noted that seven out of 18 industries—Petroleum and Coal Products; Printing & Related Support Activities; Wood Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Chemical Products; and Primary Metals—reported growth in June.

In addition, the Purchasing Managers Index (PMI) rose two percentage points to 44.8 percent in June, according to the report. Production and prices both rose sharpest of all, by 6.5 points each. Even employment, which traditionally lags behind everything else, rose 6.4 percentage points to 40.7 percent.

“The worst of the worst is over,” Ore said. “Everything is moving in the right direction.”

Ore also noted good news in inventories. Raw materials inventories continued to drop, this time by 2.1 percentage points to 30.8 percent, while customers’ finished goods inventories also went down, by 2.5 points, to 43.5 percent.

Dropping inventories has been one of the first and strongest signs of recovery, as it shows companies are depleting their inventories by making and selling products, which leads to new orders.

“It indicates a very strong liquidation still taking place,” he said.

Within a few months, both categories will likely level off in the upper 40s Ore said, but not before these drops give the economy a shot in the arm.

“The de-stocking phase is just about over,” he said.

Earlier this year, Ore and ISM predicted the economy would be showing strong signs of recovery, yet still have a long way to go, in the third or fourth quarters this year. Those prediction, Ore said today, are still on track. In the next few months, Ore said he will be watching to see if the employee and inventory indices continue to rise, and that new orders and production indices stay above 50.

All of those conditions will add up to an improving economy, and Ore said he believes that will keep happening.

“I think those trends are fairly deeply embedded,” he said.

Read the rest of the scmr.com article here.

nVision Global Technology Solutions, Inc. Acquires Application Engineering Group Costa Rica.

Atlanta, GA USA. (June 5, 2009) – nVision Global Technology Solutions, Inc., a leading global freight audit, payment and logistics management solutions provider headquartered in McDonough, GA USA announced that it has acquired Application Engineering Group Costa Rica. (AEG Costa Rica) a subsidiary of St. Louis, MO based IT services company Application Engineering Group Inc., (AEG). Terms of the purchase, which closed on May 22, were not disclosed.

Under the purchase agreement, AEG Costa Rica will become part of the nVision Global network of operational, customer service support and transportation technology development centers. “The addition of AEG in Costa Rica will support nVision Global's continued strategic global expansion providing current and future customers with the global processing and support capabilities necessary to provide a true global, single source solution,” said Luther M. Brown, nVision Global's Founder & CEO. Presently nVision Global has facilities in Asia (2), Europe (2), North America (3) and Central America (1), with plans to add additional facilities in Australia, South America and Southeastern Europe.

Today, nVision Global processes freight invoices from over 190 countries in over 45 different currencies. With the company’s significant growth, nVision Global is recognized as one of the fastest growing global freight audit and payment provides in the industry. Keith Snavely Vice President of Sales attributes the company’s continued success to a single business philosophy, “To “Partner” with our customers by providing state-of-the-art technology, flexible processes, business intelligence and unparalleled customer service second to none in the industry.”

About Application Engineering Group, Inc. (AEG) and AEG Costa Rica

AEG is a St. Louis, MO. based IT services company providing comprehensive business solutions to companies and organizations throughout the US. AEG helps its customers gain a competitive advantage, improve efficiency and reduce cost within their IT services organization. AEG provides such services to Fortune 100 companies and also has a presence in the small to mid-tier marketplace. AEG Costa Rica provided the same services in a near shore environment.

About nVision Global Technology Solutions, Inc.

nVision Global Technology Solutions, Inc. is a leading global Freight Audit, Payment & Logistics Management Solutions provider. With locations in North America, Central America, Europe and Asia, nVision Global provides multinational companies with global freight invoice pre-audit, payment, logistics management solutions and operational business intelligence necessary for the optimization and streamlining of their global supply chain.

Logistics News: U.S. Logistics Costs Drop for First Time in Six Years, Benchmark Report Says

If American transportation and logistics experts got the feeling the past year that the overall U.S. business logistics pie was shrinking, they were correct.

For the first time in six years, total spending on U.S. logistics dropped to $1.3 trillion last year, a decrease of $49 billion from 2007. That’s the gist of the 20th Annual “State of Logistics Report” released by the Council of Supply Chain Management Professionals (CSCMP) on Wednesday.

The annual respected benchmark report revealed the financial damage done to the sector by the ongoing recession. After rising by more than 50 percent the previous five years, business logistics costs fell to 9.4 percent of U.S. Gross Domestic Product last year. That is down from 10.1 percent in 2007. By way of comparison, that figure was 12.3 percent of GDP in 1985.

Transportation costs rose 2 percent, but that was not enough to offset the 13.2 percent decline in inventory carrying costs, primarily due to record-low interest rates last year. Transportation ($872 billion) now accounts for 6.1 percent of nominal GDP while inventory carrying costs ($420 billion) account for 2.9 percent of GDP.

Trucking, which accounts for 78 percent of transport by revenue and half of all business logistics cost, was particularly hard hit, rising just 1.3 percent compared with 4.4 percent for the other modes (rail, barge, air cargo, oil pipelines and forwarders).

For shippers, this has resulted in bargain transport rates, especially in trucking and ocean transport, according to Rosalyn Wilson, the long-time author of the SoL report.

“Abundant capacity, particularly in trucking and ocean shipping, push rates down (last year), often below costs,” Wilson said. “Many companies have not survived the prolonged downturn. Many more will not survive the upcoming months as we continue to ride out the recession.”

As a result of the shakeout—more than 3,000 motor carriers ceased operations last year, taking out approximately 7 percent of truck capacity—supply chains are being redefined and processes changing, Wilson said.

“The industry will emerge more efficient and resilient,” Wilson predicted.

Nevertheless, Wilson added, recovery will be a “longer and more difficult journey” for the logistics industry as it awaits meaningful economic recovery, which, Wilson said, will not come quickly.

“It is becoming more apparent that we will see an end to the decline by the end of this year but not a quick recovery,” she said.

One indicator of that is the sharp, record rise in inventory-to-sales ratios, which Wilson called an “unwelcome sign” of a slow recovery. Even with historic inventory reduction rates, the inventory-to-sales ratio skyrocketed from a low last June of 1.25 to 1.46 by December. That is the swiftest rise in that benchmark since 1982. And Wilson said it occurred across the entire distribution chain—wholesale, manufacturing, and retail.

That took a toll on transport pricing. After 6 percent rise in 2007, total transport costs were up less than 2 percent last year. Trucking, the largest component of transport, rose just 1.3 percent. Lower fuel surcharges and tougher bargaining by shippers were cited, especially during the soft 2008 fourth quarter, when truck tonnage fell 6 percent. That decline has carried over into this year, Wilson said.

Read the rest of the scmr.com article here.

nVision Global Inbound Logistics 2009 Top 100 Logistics IT Provider

nVision's main focus is on the service we give our customers. We are always glad when customers let us know we have helped them to be successful. But praise from our colleagues in the logistics industry is a little less common. That's why we are proud to say that — for the fifth consecutive year — nVision has been recognized by the magazine Inbound Logistics as one of its Top 100 Logistics IT Providers.

Inbound Logistics editor Felecia Stratton explained how the magazine's editors chose nVision for this year's list.

"Solutions providers such as nVision empower logistics and supply chain management, continuing to offer innovative and practical solutions in the face of demand volatility," said Stratton.

nVision's flexible solutions are the main reason the company has remained in the Top 100. Said Stratton: "2009 continues to be a year in which every opportunity and efficiency must be seized, and nVisionconsistently provides the kinds of technology solutions business logistics managers need to successfully manage their global enterprises. As shippers, carriers, and 3PLs increase their use of logistics IT, nVision is flexible and responsive, anticipating customers' evolving needs. That's why Inbound Logistics editors have recognized nVision as one of 2009's Top 100 Logistics IT Providers."

Every April for the past decade, Inbound Logistics editors have recognized 100 logistics IT companies that support and enable logistics excellence. Using questionnaires, personal interviews and other research,Inbound Logistics selected from a pool of more than 500 companies to determine the 2009 Top 100 Logistics IT Providers. Editors seek to match readers' fast-changing needs to the capabilities of those companies selected. All companies selected reflect leadership by answering Inbound Logistics readers' needs for simplicity, ROI and efficient implementation.

"Inbound Logistics readers face complex, demanding challenges: matching demand to supply and aligning their operations to support that business process evolution; speeding and reducing inventory; and managing complete visibility of products from one end of the supply chain to the other," said Stratton. Stratton emphasized the crucial role IT logistics play for companies in the current economy.

"Logistics technology has become more than an enabler," she explained. "For many, it has become the pathway to supply chain excellence and a lifeline to enterprise survivability. Inbound Logistics is proud to honor nVision as a 2009 Top 100 Logistics IT Provider for excellence in providing solutions that answer our readers' needs for quick ROI, while still maintaining ease of use and efficient implementation."

Find out how nVision Global can help you today.1

Global Freight Billing Solutions....

Intelligence in the “world” of freight bill audit & payment

Auditing and paying international freight invoices and providing a true worldwide solution for global freight audit and payment services are not the same. Many North American domestic providers with facilities in the United States boast of international processing capabilities because they process invoices originating in other countries and destined to the United States. These types of invoices do not represent the typical characteristics of invoices from around the world; generally they are presented in a single currency, weight measurement, language and do not record information such as Value Add Tax (VAT) or other applicable taxes that apply to transport charges around the world. These invoices typically lack the data elements that are necessary to properly audit and pay invoices in the global market.

nVision provides a single source global platform and database for those customers seeking a “one stop” solution. Our proprietary innovative value creating technology is designed to accommodate all aspects of invoice processing regardless of origin or destination. For example we have audit tables designed to calculate the specific amount of VAT (Value Add Tax) due on an invoice based on the payment terms, the ability to validate Incoterms and to perform currency conversions and report charges in a single corporate currency as well has the billing currency.

Benefits include:

• Lean Six Sigma methodology & process improvement commitment
• Uncompromising global customer service 24/7
• Expertise in applicable transport taxes in a worldwide environment
• Incoterms validations
• International mapping and graphing
• Innovative value-creating logistics technology
• Established leader in industry trends
• Sarbanes Oxley compliant
• Multiple language and data format support
• Customer specific rules management and processing

 

Recognized by Inbound Logistics Magazine as one of their 2008 Top 100 Logistics IT Providers

nVision Global Technology Solutions, Inc. is proud to announce that for the fourth consecutive year, nVision Global has been recognized by Inbound Logistics Magazine as one of their “2008 Top 100 Logistics IT Providers.”

Every April, Inbound Logistics editors recognize 100 logistics IT companies that support and enable logistics excellence. Selecting the annual Top 100 Logistics IT providers is no small task, given the pace of change and the number of new entrants in the logistics technology market. Inbound Logistics editors whittled this year's list from more than 300 companies through a comprehensive process of evaluating questionnaires, conducting research, and soliciting reader feedback. The goal is to provide a balanced and accurate assessment of our readers' needs and the logistics IT companies we believe are best suited to meet their specific requirements. All companies selected reflect leadership by answering Inbound Logistics readers' need for simplicity, ROI, and efficient implementation.

"Solutions providers such as nVision Global empower logistics and supply chain management, continuing to offer innovative and practical solutions in the face of fast-changing challenges. During 2008, nVision Global consistently provided the kinds of technology solutions Inbound Logistics readers need to successfully manage their global enterprises. As shippers, carriers, and 3PLs increase their use of logistics IT, nVision Global continues to be flexible and responsive, anticipating customers' evolving needs. That's why Inbound Logistics editors have recognized nVision Global as one of 2008's Top 100 Logistics IT providers."

Felecia Stratton, Editor, Inbound Logistics

About nVision Global

nVision Global is a leading global Freight Bill / Invoice Audit, Payment & Logistics Management Services Company offering enterprise-wide supply chain solutions.  Since its inception, nVision Global has evolved from a regional Freight Payment company to one of the fastest growing Global Freight Audit, Payment and Logistics Management service providers in the industry.

As a global business “Partner,” nVision not only provides a prompt, accurate Freight Payment solution but, industry-leading information management services necessary to help our clients maximize efficiencies within their supply chain.  Contact us today for all your logistics management solutions. 

nVision Global at a glance:

• Global headquarters located in Atlanta, Georgia USA.
• Processing facilities on three Continents.
• Core services include Global Freight Audit and Payment, Logistics Management and Claims services.
• 50,000,000 invoices processed annually.
• $2.5 billion in freight liability processed annually.
• Experts in processing all modes of transportation related invoices.