Can Transport Logistics Reduce Risk?

Posted by Nick Ostdick on Nov 7, 2017 9:00:00 AM

It simply cannot be stated enough or more clearly: Success for manufacturing companies stems largely from the ability to control, mitigate, and reduce risk. While success can mean a number of things to any number of companies, the capacity to reduce the amount of uncertainty in operating a global supply stream is perhaps one of the most critical pain points across today’s manufacturing landscape. No matter how hard planners and managers work to contain risk, the sheer nature of a variant-rich supply network means risk in a variety of forms can plague companies across the entire value chain, everything from planning and procurement to production and transport logistics.

All this being said, there are a number of strategies, solutions, and principles manufacturing companies can deploy and integrate to reduce the level of risk in a cross-organizational manner that also helps to increase productivity and enhance efficiencies. One of the more integral tools in a manufacturing company’s toolchest is transport logistics. Or, put simply: the coordination of efforts, resources, and personnel to successfully moving products from the production floor to the customer’s front door. It sounds quite basic, yet in an era of varied partner networks and variant-rich production programs, it can actually be a significant challenge for manufacturing companies across an array of industries. But for companies that deploy a successful transport logistics strategy, there are a great many benefits to be experienced beyond simply delivering products during pre-defined delivery windows.

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Topics: Transportation Management, Disruptions, transport logistics

Can Transport Logistics Drive Growth?

Posted by Nick Ostdick on Oct 17, 2017 9:00:00 AM

“If you’re not growing, you’re dying.”

While a little hyperbolic, this is an old saying often at the heart of discussion for so many of today’s manufacturing companies when it comes to expansion, increasing their market footprint, and raising their visibility in a very competitive field of play. The expectations and realities for manufacturing companies to create long-term, sustainable growth while at the same time showing signs of robust, short-term success is a delicate balancing act planners and managers are faced with executing at each touch point of the value chain. Because so much of today’s production cycle is connected through the integration and digitization of the supply stream, various process must work in tandem in order to achieve growth opportunities and propel companies into a prosperous future.

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Topics: Transportation Management

5 Myths About Transport Logistics

Posted by Nick Ostdick on Oct 3, 2017 9:00:00 AM

For so many companies in today’s digital manufacturing landscape, so much of transport logistics is still shrouded in mystery. Because a majority of manufacturing companies place a greater emphasis on earlier stages of the production cycle (planning, procurement, inventory management, and job allocation), little attention is often paid to successfully administering a transport management system or structure that effectively helps companies reduce transport costs and optimize transit processes.

This lack of visibility, as with almost every other aspect of global supply chain management, allows for misinformation or inaccurate understandings of just how and why an integrated transport logistics strategy is a critical value proposition for today’s manufacturing companies. Moving finished products from the production floor to the customer’s front door on-schedule and in good order is part and parcel of what effective production programs are all about, and transport logistics are a key driver in helping manufacturing companies achieve this ever-important goal.

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Topics: Transportation Management, Industry 4.0

How Transport Logistics Adds Business Value

Posted by Nick Ostdick on Sep 28, 2017 9:00:00 AM

When talking about creating and adding business value, much of the discussion surrounds planning and production programs — essentially, earlier stages of the production cycle where decisions and actions are executed based on such critical elements as procurement, resource allocation, facility and job management, and inventory optimization. But business value and important business moments can take place further down the line in the production cycle, especially in such a complex, variable-rich function as transport logistics.

Because transportation relies on so many varying factors each with their own level of uncertainty or constantly shifting constraints (fuel economy, routing, obstacles in transport routes, and others), the capability to mitigate and respond to these moving targets is a crucial driver in helping manufacturing companies maintain delivery timelines, enhance the accuracy of their delivery dates and windows, and drive enhanced customer service. In addition, because transport networks can be varied and include a number of partners across a wide range of regions or locales, which can lend to even more complexity and nuance in facilitating a transport logistics strategy that drives business value.

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Topics: Transportation Management

Does Integrated Planning Reduce Transport Costs?

Posted by Nick Ostdick on Sep 26, 2017 8:00:00 AM

It’s a question each and every manufacturing company grapples with: How can we reduce our transport costs and attempt to normalize our transportation strategy given the number variables associated with shipping our products? In an industry like manufacturing where so much of how efficiency a company functions is dependent on getting the right product to the right customer at the right time in the right condition, transport logistics cannot be overlooked as a critical part of the value chain.

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Topics: Intelligent Planning, Transportation Management, Planned Production Programs

A Transport Logistics FAQ

Posted by Nick Ostdick on Sep 21, 2017 9:00:00 AM

If our goal on the flexis AG blog to educate our readers about the pressing issues in global manufacturing and supply chain management, then today’s entry is right on par with that mission. Transport logistics, though a critical element to a manufacturing supply chain management strategy, is perhaps one of the least discussed aspects of SCM. While an underutilized element of administering a successful value chain, transport logistics (or the manner in which companies move finished products from the production room floor to the customer’s door) is the last crucial link in fulfilling customer expectations and ensuring production programs are executed to their fullest extent.

It’s somewhat difficult to understand why transport logistics often gets lost in the fray of global supply chain management. Perhaps it’s because more emphasis is placed on operations at earlier stages in the value chain such as planning and procurement. Or perhaps it’s because the facilitating of effective production programs is often at the forefront of the minds of planners and managers. Either way, transport logistics, though often neglected, can either be a significant boon or detriment to how effective a manufacturing company conducts itself.

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Topics: Transportation Management, Industry 4.0, Lean Manufacturing

How Integrated Transport Logistics Creates Real Growth

Posted by Nick Ostdick on Sep 5, 2017 9:00:00 AM

It sounds simple, but how well a manufacturing company moves products from the shop floor to the customer’s front door is not only a sign of a healthy supply chain, but also a critical indicator as to how efficiently planners and managers mitigate several aspects of global supply chain management. But in one of the more interesting paradoxes in today’s manufacturing landscape, integrated transport logistics, while extremely valuable, is one of the more overlooked elements of how manufacturing companies work their production cycles.

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Topics: Transportation Management, Supply Chain Logistics

Why Transport Logistics Really Matter

Posted by Nick Ostdick on Aug 1, 2017 9:00:00 AM

What’s one of the most undervalued elements in creating E2E supply chain visibility? It might surprise you, but this overlooked aspect of supply chain management is perhaps one of the most critical ingredients in how companies successfully move material supply to the production floor and finished products to the customer’s door. Of course, we’re talking about transportation.

That’s right, transport logistics, while perhaps underutilized, is a significant driver in how manufacturing companies administer, oversee, and evaluate the overall health, sustainability, and efficiency of their supply situation. It’s somewhat difficult to understand why transport logistics often gets lost in the fray of global supply chain management. Perhaps it’s because more emphasis is placed on operations at earlier stages in the value chain such as planning and procurement. Or perhaps it’s because the facilitating of effective production programs is often at the forefront of the minds of planners and managers. Either way, transport logistics, though often neglected, can either be a significant boon or detriment to how effective a manufacturing company conducts itself.

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Topics: Transportation Management, Supply Chain Logistics, Logistics, Lean Manufacturing

Making the Most Of Downtime: Tips for Making Slowdowns Productive

Posted by Nick Ostdick on Dec 1, 2016 9:00:00 AM

Because of the global nature of today’s automotive supply chain, slowdowns or valleys in production programs are constantly on the minds of OEMs and others across the supply stream. With so many disparate parts of the world now in play with production, distribution, warehousing, or transportation hubs, holidays, seasonal lulls, and other brands of disruption in terms of productivity can not only be frustrating for various players in the automotive landscape, but they can also be significant pain points for companies who do not utilize this time effectively.

For example, take a recent article in the commerce publication MarketWatch suggested this past summer was atypical in terms of production levels - at least throughout Europe, primarily in Germany - with manufacturing continuing at a brisk pace throughout the usual summer slow season, many within the global automotive supply chain still experienced lulls in orders and planned production programs. With so many employees on vacation and crucial parts of the supply stream in something of a holding pattern as the industry prepares for the busy fall season, it’s tempting to view the summer months as nothing more than downtime - a breather from the harried spring ramp-up in production. Given the 24/7, 365-nature of today's automotive industry, this summer slowdown instance is just one example of periods when production can slow and productivity can wain. 

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Topics: Transportation Management, Planned Production Programs, Production Control, Demand Capacity Planning

4 Facts About Tactical Transport Planning

Posted by Nick Ostdick on Oct 20, 2016 9:00:00 AM

Operational transport planning in today’s automotive supply chain is like that one junk drawer or cupboard everyone has in their house. It’s a chaotic collection of seemingly unrelated items that you often forget about until a certain item goes missing. The drawer or cupboard lacks any kind of organization and you often have little idea as to the volume, quantity, and nature of items inside. Similarly, operational transport planning and its lack of transparency and visibility into the overall supply situation means increases in unnecessary costs and resources, missing or lost parts and deliveries, and more complex logistics that detract from the clarity necessary to leverage lean supply chain management principles.

In short, operational transport planning can be a significant stumbling block for OEMs and Suppliers in transporting, monitoring, and reviewing how their parts move from production facilities to the customer, both in terms of speed and condition.

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Topics: Transportation Management, Supply Chain Planning, Demand Capacity Planning