Category Archives: Logistics

A new report released Monday by the American Trucking Associations (ATA) projects freight volumes will increase by nearly 29 percent over the next 11 years.

“The outlook for all modes of freight transportation remains bright,” said ATA Chief Economist Bob Costello in releasing its U.S. Freight Transportation Forecast to 2026. “Continued population growth, expansion of the energy sector and foreign trade will boost trucking, intermodal rail and pipeline shipments in particular.”

Forecast, a collaboration between ATA and IHS Global Insight, projects a 28.6 percent increase in freight tonnage and an increase in freight revenues of 74.5 percent to $1.52 trillion in 2026.

“Forecast is a valuable resource for executives and decision makers in both the private and public sector,” said ATA President and CEO Bill Graves. “Knowing where the industry and economy is headed can help shippers and fleets make key business decisions and instruct lawmakers and regulators on the best policies to move our economy forward.”

For the first time, this year’s Forecast includes near-term projections for 2015 and 2016 and estimates for changes in the size of the Class 8 truck fleet.

Among Forecast’s findings:

Trucking will still be the dominant mode of freight transportation, although the share of tonnage it hauls dips slightly. Even though truck tonnage grows over the forecast period, trucking’s share will dip from 68.8 percent in 2014 to 64.6 percent in 2026.

Due to tremendous growth in energy production in the U.S., pipelines will benefit more than other modes. Between 2015 and 2026, pipeline volumes will increase an average of 10.6 percent a year and their share of freight will increase from 10.8 percent in 2015 to 18.1 percent in 2026.

While railroads’ share of freight tonnage will drift down from 14.2 percent in 2015 to 12.3 percent in 2026, intermodal freight will be the second-fastest growing mode at 4.5 percent annually through 2021 and increase 5.3 percent per year thereafter.

The number of Class 8 trucks in use will grow from 3.56 million in 2015 to 3.98 million by 2026.

Logistics is generally the detailed organization and implementation of a complex operation. In a general business sense, logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations. The resources managed in logistics can include physical items such as food, materials, animals, equipment, and liquids; as well as abstract items, such as time and information. The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and often security.

In military science, logistics is concerned with maintaining army supply lines while disrupting those of the enemy, since an armed force without resources and transportation is defenseless. Military logistics was already practiced in the ancient world and as modern military have a significant need for logistics solutions, advanced implementations have been developed. In military logistics, logistics officers manage how and when to move resources to the places they are needed.

Logistics management is the part of supply chain management that plans, implements, and controls the efficient, effective forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer’s requirements. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is a common motivation in all logistics fields. A professional working in the field of logistics management is called a logistician.

Origins and definition

The prevalent view is that the term logistics comes from the late 19th century: from French logistique (loger means to lodge) and was first used by Baron de Jomini. Others attribute a Greek origin to the word: λόγος, meaning reason or speech; λογιστικός, meaning accountant or responsible for counting.

The Oxford English Dictionary defines logistics as “the branch of military science relating to procuring, maintaining and transporting material, personnel and facilities”. However, the New Oxford American Dictionary defines logistics as “the detailed coordination of a complex operation involving many people, facilities, or supplies,” and the Oxford Dictionary on-line defines it as “the detailed organization and implementation of a complex operation”. As such, logistics is commonly seen as a branch of engineering that creates “people systems” rather than “machine systems.”

According to the Council of Supply Chain Management Professionals (previously the Council of Logistics Management) logistics is the process of planning, implementing and controlling procedures for the efficient and effective transportation and storage of goods including services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements and includes inbound, outbound, internal and external movements.

Academics and practitioners traditionally refer to the terms operations or production management when referring to physical transformations taking place in a single business location (factory, restaurant or even bank clerking) and reserve the term logistics for activities related to distribution, that is, moving products on the territory. Managing a distribution center is seen, therefore, as pertaining to the realm of logistics since, while in theory the products made by a factory are ready for consumption they still need to be moved along the distribution network according to some logic, and the distribution center aggregates and processes orders coming from different areas of the territory. That being said, from a modeling perspective, there are similarities between operations management and logistics, and companies sometimes use hybrid professionals, with for ex. “Director of Operations” or “Logistics Officer” working on similar problems. Furthermore, the term supply chain management originally refers to, among other issues, having an integrated vision in of both production and logistics from point of origin to point of production. All these terms may suffer from semantic change as a side effect of advertising.

Business logistics

A forklift stacking a logistics provider’s warehouse of goods on pallets
One definition of business logistics speaks of “having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer”. Business logistics incorporates all industry sectors and aims to manage the fruition of project life cycles, supply chains, and resultant efficiencies.

The term “business logistics” has evolved since the 1960s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called “supply chain logisticians”.

In business, logistics may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption (see supply-chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization.

There are two fundamentally different forms of logistics: one optimizes a steady flow of material through a network of transport links and storage nodes, while the other coordinates a sequence of resources to carry out some project (e.g., restructuring a warehouse).

Logistics outsourcing

Logistics outsourcing involves a relationship between a company and an LSP (logistic service provider), which, compared with basic logistics services, has more customized offerings, encompasses a broad number of service activities, is characterized by a long-term orientation, and thus has a strategic nature.

Outsourcing does not have to be complete externalization to a LSP, but can also be partial:

A single contract for supplying a specific service on occasion
Creation of a spin-off
Creation of a joint venture
Third-party logistics (3PL) involves using external organizations to execute logistics activities that have traditionally been performed within an organization itself. According to this definition, third-party logistics includes any form of outsourcing of logistics activities previously performed in house. For example, if a company with its own warehousing facilities decides to employ external transportation, this would be an example of third-party logistics. Logistics is an emerging business area in many countries.

The concept of a fourth-party logistics (4PL) provider was first defined by Andersen Consulting (now Accenture) as an integrator that assembles the resources, planning capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider targets a single function, a 4PL targets management of the entire process. Some have described a 4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer.

Electronic Data Interchange (EDI) is the electronic interchange of business information using a standardized format; a process which allows one company to send information to another company electronically rather than with paper. Business entities conducting business electronically are called trading partners.

EDI replaces postal mail, fax and email. While email is also an electronic approach, the documents exchanged via email must still be handled by people rather than computers. Having people involved slows down the processing of the documents and also introduces errors. Instead, EDI documents can flow straight through to the appropriate application on the receiver’s computer (e.g., the Order Management System) and processing can begin immediately.

While many companies leverage EDI to comply with trading partner requirements, few take advantage of EDI to drive operational excellence. Limiting EDI use to fundamental transactions, such as purchase orders and invoices, leaves money on the table and misses an opportunity to strengthen customer service and overall competitiveness.

Companies achieve the greatest operational excellence gains by expanding EDI across a broad spectrum of transactions and integrating it with a warehouse management system to create visibility through the supply chain.

SUPPLY CHAIN BENEFITS OF EDI USAGE INCLUDE:

• Enhanced visibility. EDI can enable a sharper understanding of your supply chain to reduce inventory carrying costs. You can stock only what you need.
• Reduced labor costs. Companies using EDI for advanced shipping notices (ASNs) can save up to 40 percent of labor costs associated with inbound processing.
• Minimized freight costs. Using EDI in concert with a transportation management system can minimize transport expenses while maintaining high service levels through load consolidation and mode selection.
• Improved customer service. Customers, suppliers, and regulators benefit from the seamless flow of critical business information among partners.

As business keep on developing at a fast clasp, inventory logistics and coordination changes and advancements will proceed. Client desires and rivalry from expanding businesses are driving far reaching changes to warehousing and logistics operations. Direct-to-purchaser development is influencing retailers, as well as makers, wholesalers, and 3PLs. Jacksonville logistics and distribution centers are progressively assuming a more prominent part in trade because of disintermediation and a diminishment in direct sales through retail stores.

On top of that, the relationship amongst retailers and upstream accomplices is changing, as wholesalers have expanded their nearness in retail and retailers have pushed direct-to customer obligations back onto their providers. Thus, distribution center logistics centers are expanding, responsiveness and flexibility have turned out to be more critical as package shipping has developed, and work effectiveness stays as imperative as ever.

WHY OUTSOURCE TO A JACKSONVILLE LOGISTICS COMPANY LIKE LANEY & DUKE?

• It makes your business inalienably adaptable. As your business develops, you don’t need to stress over including new systems, stock controls and hardware. As your shipments expand, it’s just a question of expanding the stock at your Jacksonville logistics 3PL provider’s location.
• Outsourcing decreases order fulfillment time. Generally, the companies that specialize in order fulfillment have warehouses located near major shipping hubs and ports. Subsequently, all shipments to clients regardless of where they live normally takes lest transit time.
• When you outsource inventory and your product fulfillment operations it allows time for you to focus on advertising and developing your business, instead of worrying about logistics. Keeping up and sorting out your own stock can be a major pain and take up a critical bit of your time. By permitting a 3PL logistics company to assume control, you can center your endeavors on enhancing your business.
• Also because we are a Jacksonville logistics company located near major transportation hubs, like JAXPORT, you can expand your business to other nations. Making international shipments can be a hassle with the costs and paperwork involved. A company that provides third party logistic services will have the experience to handle your international shipping. By outsourcing your order fulfillment to a 3PL logistics company, you no longer have to worry about anything other than sourcing your items from a supplier.

Laney & Duke, located in Jacksonville Florida, can provide a logistics solution for your business. Give us a call to learn how we can help you maximize the efficiency of your operation.

Working with a logistics company is a key stride to developing your business. The logistics company you choose to provide logistics for your organization could reflect on your overall business reputation.

Tragically, that reflection isn’t always positive. If items ship late, your organization takes a hit. If the wrong item ships, your organization takes a hit. These basic errors develop and bolster the picture that your organization has a poor reputation with logistics and damages your organization over the long haul. At the flip side of the range, a great logistics provider will enhance your business’ picture through quality customer care, dependable logistics, and item responsibility.

Working with a professional, reliable Jacksonville logistics company permits you to concentrate on deals and showcasing you products as opposed to you handling logistics, packaging and transporting orders; however pick carefully.

3 THINGS YOU SHOULD CONSIDER WHEN CHOOSING A LOGISTICS COMPANY.

• Choose a logistics company that cares. For a logistics provider, this requires near-flawless integration with a retailer to pull off effectively. Your company is to make the retailer look good in the eyes of the customer, and be quicker than their major competitor. This process goes beyond assimilating with a retailer’s eCommerce page or shopping cart and becoming more of an extension of that larger business.
• EDI Compliance. Do you require a logistics company that is EDI compliant? One of the most important services a 3PL provider can provide is a seamlessly exchange information via EDI (Electronic Data Interchange). The 3PL provider also must be ERP & eCommerce EDI compliant.
• Plan ahead. Utilizing a full-service Jacksonville logistics company like Laney & Duke can steady your business to meet daily challenges and smooth out the gaps in your supply chain. Every business deals with countless moving parts that are both within and outside of its control in the supply chain. Anything that can help you predict what’s coming, or even just a piece of the business you can count on from day-to-day, feels like a break from the storm. With weather, labor shortages, equipment failures, production lags and everything else that can go wrong, the only real question to answer is “Can our logistics function withstand a crisis?”

For eighty eight years Laney & Duke has been providing logistic services; We have been fulfilling product warehousing, distribution, order fulfillmentand transportation needs of some the world’s most successful companies. In 1929 the logistics business was much less complicated. We started with a handful of people in one building with simple tools, before the invention of forklifts and pallets. It was during the Great Depression which made for a rocky start, but we were committed and we prevailed. Throughout the years the industry has changed enormously, and we’ve grown with it.