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Category Archives: Logistics

A few fun facts

  1. Expenditure on U.S. logistics was $1.1 trillion in 2009, which is larger than the national GDP of every country in the world, except for the top 12. [CSCMP,2009]
  2. America’s roads generated total revenues of $791.3 billion for the country’s economy in 2012. [Marketline, 2013]
  3. The U.S. transport infrastructure includes:
    • 47,000 miles of Interstate roads,
    • 94,313 miles of Class I freight railroads,
    • 25,320 miles of navigable sailing channels.
    • [2008 US Government Bureau of Transportation Statistics, RITA]
  4. U.S. rail freight grew by 4.6% in 2013, with the value of the sector up to more than $60 billion. [Association of American Railroads, 2013]
  5. The average container vessel calling along the Pacific Coast, which is the busiest port area of the U.S.,  is 4,345 TEU. This is equivalent to a maximum potential weight of more than 100,000 tonnes, or in excess of 230 million lbs! [RITA, 2011]
  6. Transportation and warehouse employment alone represents 3.2% of the total US workforce, more than 4 million people. [Bureau of Labor Statistics, 2010]
  7. Companies that use sophisticated supply chain methods have been found to achieve profit levels 12 times greater than those with less sophisticated solutions. [Bain & Company]
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Q: What are three questions a shipper should ask a potential 3PL vendor?

Q: What are three questions a shipper should ask a potential 3PL vendor?

A: I think you should always ask a potential 3PL vendor what their contingency and disaster recovery strategies are. It’s important to get an understanding of the types of redundancies that are offered in the event of a supply chain interruption. Secondly, ask for an understanding of where you rank in customer size within the 3PL’s current customer base. Often, this will dictate the level of attention the provider is able to give. And lastly, but equally as important, you should always ask for an explanation of the 3PL’s company culture. At MD Logistics, we have found that a match of cultures between our customer and us is paramount. Choosing a provider who shares the same values and passion is critical to the long term success of the relationship.

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Q: When should shippers be more concerned about value-added services and less driven by rates?

Q: When should shippers be more concerned about value-added services and less driven by rates?

A: Value-added services become pertinent when looking at the total cost of a supply chain decision. For example, if your product originates in China and needs to be reworked to provide additional value, you can easily return the product back to the factory in China, but the value-add of partnering with a 3PL provider who can do the re-work here in the U.S. has the potential to pay dividends. This especially becomes apparent in the race to be the first to market. In this situation, the ability to get product to market, quickly, can far outweigh the logistics need to save costs.

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Q: What regions or countries are under served in trade yet offer potentially big growth for exporters?

Q: What regions or countries are under served in trade yet offer potentially big growth for exporters?

A: When I think about the regions that have the greatest potential for growth, immediately my first thought is greater China. Even with the advances that have been made in logistics and transportation in this region during the past 10-15 years, there is still a huge opportunity. Currently, only one-fifth of the population is in the greater economy and while great strides have been made to serve the remaining part of the population, it is still such a vast area that we have just begun to scratch the surface.

I also think there is a huge opportunity for exporters in Africa. The entire continent is starting to develop and invest in infrastructure, making expansion there more feasible.

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Q: How is technology changing the scope of services 3PLs offer their clients?

Q: How is technology changing the scope of services 3PLs offer their clients?

A: As a third party logistics (3PL) provider, our job is to provide our customers with the solutions necessary to bring their products to market and, in the process, manage their customer experience. Mobile technology is changing the way in which we operate and now demands us to be quicker and more responsive. No longer is this an 8-5 industry, instead the introduction of e-commerce is transforming our operations and demanding around the clock transparency. It is now equally important to quickly fulfill orders, creating a positive experience for the end customer.

Where our service offerings used to be to only fulfill shipments, now technology allows us to choose the best transportation option to fulfill omnichannel orders, optimizing freight spend for our customers and ensuring the end customer receives their order in a timely manner. Information technology is also driving supply chain visibility from the point of origin all the way through to consumption. Internet of Things challenges us to have later cutoffs and lockouts because there is a greater emphasis placed on the ability to respond quicker to order fulfillment.

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Roofing shingles

We are currently mid way through Hurricane season which the Carolinas know only too well after Hurricane Florence came ashore over their communities.

With that in mind, our parking lot and all available yard space is completely full of Owens Corning Roofing shingles as overflow for OC in anticipation of Hurricane season.  Currently, we have around 6900 pallets on hand and load/unload approximately 20 flatbed trailers each day.

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Increase in our Bonded space

We also offer customs bonded space, which seems to be an increasing demand as goods received from other countries can delay duty (taxes) until the goods are actually sold.

What is a Customs bonded warehouse?

A Customs bonded warehouse is a building or other secured area in which imported dutiable merchandise may be stored, manipulated, or undergo manufacturing operations without payment of duty for up to 5 years from the date of importation.

Upon entry of goods into the warehouse, the warehouse proprietor incurs a liability for the merchandise under a warehouse bond. This liability is generally cancelled when the merchandise is:

  • Exported
  • Withdrawn for supplies to a vessel or aircraft
  • Destroyed under CBP supervisions; or
  • Withdrawn for consumption within the United States after payment of duty.
 

Advantages of Using a Bonded Warehouse

Duty is not collected until the merchandise is withdrawn for consumption. An importer, therefore, has control over use of his money until the duty is paid upon withdrawal of the merchandise. If no domestic buyer is found for the imported articles, the importer can sell merchandise for exportation, thereby eliminating his obligation to pay duty.

Many items subject to restrictions may or may be stored in a bonded warehouse. Check with the nearest CBP office before assuming that such merchandise may be placed in a bonded warehouse.

Duties owed on articles that have been manipulated are determined at the time of withdrawal from the bonded warehouse.

 

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Increase in our LTL business

The LTL business for Laney & Duke Logistics is increasing as more customers are catching on to the process and realize the savings we can offer them through volume discounts.

LESS-THAN-TRUCKLOAD (LTL) is the primary mode of transportation utilized by businesses that ship 1 – 7 pallets of freight to one location Nationwide or Worldwide.By combining logistical services large savings can be made.

For a quotation follow this link: https://www.laneyduke.com/less-load-quote/

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Laney Duke approaching the Holiday Season

At Laney Duke we are heading into the holiday season, which means more volume and more deliveries to Amazon beginning the first week of October though the end of January. 

Several customers increase their inventory levels within our facilities in anticipation of increased sales.  This requires routine meetings to discuss ways to creatively maximize our space to accommodate current customers and address new business as well.

Laney & Duke work with Amazon to store and fulfil orders. We also fulfil orders and offer pick n pack services to businesses just like yours.

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Millennials Upset E-Commerce Assumptions

The common assumption that millennials only shop online and avoid brick-and-mortar merchants just doesn’t fit their behavior patterns, according to a survey from a Texas A&M Transportation Institute researcher.

The purchasing behavior of millennials — who now account for about 25% of the population — impacts freight policy, trade, economic trends and infrastructure, said Sarah Overmyer, assistant transportation researcher at TTI, who presented her results at the Transportation Research Board’s annual meeting here.

She disputed the notions that millennials are glued to their smartphones, rent a place in a city and need immediate delivery of their online purchases, and pointed to delivery trends to make her case.

“If this were true, cities would be more congested. And if [millennials] made all their purchases online, it would disrupt freight patterns,” Overmyer said. “If they did demand ASAP delivery, then trucks would be performing gymnastics to respond.”

And the growth of e-commerce has a direct bearing on the trucking industry. In the third quarter of 2017, retail e-commerce sales in the United States came in at $115.3 billion, a rise of 15.5% from the same period in 2016, according to the Census Bureau. E-commerce sales in the third quarter accounted for 9.1% of all retail sales. To better understand millennial e-commerce purchasing, Overmyer conducted a panel survey of 1,310 18- to 34 year-old Texans, gathering demographic data and questioning them on their shopping preferences and online behavior.

Online shopping was part of their everyday lives as 68% of those surveyed said they had received an online package in the past week. However, 75% of those packages had arrived three days or more after ordering.

That shoots down the assumption on immediate delivery, Overmyer said. Further, only 45% of those surveyed were members of the Amazon Prime service that promises two-day delivery on certain purchases.

And most millennials, 75%, made purchases both online and in-store; just 14% were online only shoppers, while 7% were exclusively in-store shoppers. About three-quarters of respondents bought clothing online and in-store, while 74% preferred to buy personal hygiene products in-store, and 91% bought food in a grocery store.

Census Bureau data from 2015 shows that about 29% of Texas millennials live with their parents or another relative, but that doesn’t mean that they cluster in cities.

Overmyer found that about 66% live in the suburbs. And they want to put down roots; nearly half plan to buy a home in five years, with 50% wanting to be in the suburbs, 26% in an urban area and 23% in a rural area.

“The survey shows that millennials may not be as different as we thought,” Overmyer said. “They live in the suburbs, they shop in stores, and they don’t require two-day delivery.” She added, “Still, two-thirds got an online delivery in the last week.”

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