Argos Software develops Enterprise Software for Agribusiness and Supply Chain Industries.

Posts tagged ‘market’

Annual State of Logistics Outsourcing

2014 THIRD-PARTY LOGISTICS STUDY 

Cap Gemini, Penn State University, Korn Ferry, Eyefortransport and Penske have sponsored this 18th annual “State of Logistics Outsourcing” study. I commend the study to you.

The report highlights the healthy relationship that exists between manufacturers and providers. Shippers indicated an average logistics cost reduction of 11% and a general satisfaction with outsourcing.

There is both good and bad news in the report for 3PL’s. 55% of shippers select 3PL’s based on their ability to provide continuous improvement, 49% look for experience in the shipper’s vertical.

42% see established and ongoing relationships as important selection criteria. Interestingly, many shippers are moving more to contract bids and shorter contract periods to leverage competition among 3PL’s which is at odds with the notion of ‘relationships’.

Leadership is also seen as vital and shippers will, increasingly, look to the quality of the leaders in a 3PL operation in making selection decisions.

As it has been the case for many years, IT capabilities continue to be at the forefront when making selection decisions. The study states:

“…. our research also finds that 3PL IT capabilities are becoming increasingly important to shippers ….”

Visibility and connectivity are required attributes of today’s supply chain partners and your systems will come under greater scrutiny than ever.

As a 3PL this report will provide a wealth of intelligence and allow you to strategically position yourself to retain and grow your business. The report can be found here.

 

 

 

Best Regards,                    

 Geoff Hukins

 Executive Director | Argos Software

 IWLA Board Member

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The IARW convention will bring 700 of the world’s leading logistics professionals!

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The IARW Annual Convention and Expo will be held in Hollywood, Florida in 2 weeks!

Are you attending? If you haven’t registered yet I would like to invite you to consider this great opportunity to network and learn:

  • The IARW is the leading trade association for refrigerated warehouses and brings together 700 of the world’s leading public refrigerated warehousing and logistics professionals for educational sessions and a world-class expo. 
  • As a logistics service provider, the opportunity to network with your peers and gain insights into the challenges and opportunities of your industry will prove invaluable in developing your own business. 
  • The convention will explore the relationship between profit and sustainability in today’s temperature-controlled logistics industry.

Drop by and visit booth #103. I will be happy to show you our warehouse management solutions and answer your questions on the industry.

 

 



 

 Ken Busman
 Business Development Manager – Supply Chain  
 (559) 227-1000

Get higher proportion of revenue from value added services.

increase services revenue

In the current market the 3PL provider has two choices, substantially increase revenue from value added services or struggle to survive in a storage focused world with diminishing inventory.

Click here to read more

A look back at 2012 by logistics professionals

 
Portrait of the Warehousing and Distribution Landscape in 2012
 
As this year is coming to an end, how have your operations emerged from the Great Recession? The 2012 Logistics Management survey has revealed major trends and offers a first-hand look into the state of today’s DC and warehouse operations: 
  • 52 percent of respondents are adopting a more cautious approach, spending less than $250,000 for warehousing equipment and technology in 2012.
  • 17 percent of respondents are spending $1 million or more in 2012, and another 16 percent are planning to spend that same amount in 2013.
  • About 60 percent of respondents are planning to expand.
  • 26 percent are increasing their number of SKUs.
  • 25 percent are increasing the number of employees.
  • To reduce operating costs, 64 percent of respondents are “improving warehouse processes” and 61 percent are “improving inventory control”.
 

 

 

NEW Report: these logistics trends will impact your business

  

Rosalyn Wilson wrote :

“2011: A rather unremarkable year” for logistics statistics.

From time to time an article grabs my attention enough to make me want to share it. The 23rd Annual State of Logistics report by The Council of Supply Chain Management Professionals (CSCMP) was such an article. 
This report provides a clear indication of the current position of Logistics in the USA and looks at trends within the industry that will impact your business, today and tomorrow. The report highlights the fact that recovery of the economy has been very slow and inconsistent. The fragility of the world’s economy will continue this trend and make business’ focus on efficiencies in their supply chain. 
 

Some key highlights of the report:

  • Inventory carrying costs increased 7.6% over prior year
  • Logistics cost equaled 8.5% of GDP in 2011 – trending up from a low of 7.9% in 2009
  • Trucking (77% of transportation component) increased 6.2% year on year
  • Rail grew 15.3%
  • All other transport sectors declined
  • Intermodal was the real growth element of transportation – a trend that will grow very significantly in the near future.

The report takes an in-depth look at each transport mode & explains the basis for trends in each.


Geoff Hukins, Executive Director of Argos Software                 

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Are you leveraging the Global Economy?

3PL’s in Asia are still, on average, behind the USA in take-up of technologies like EDI, scanning and RFID. They are however rapidly catching up.

They are also very focused on a flat world. As the manufacturing hub of the world Asia is truly thinking and acting globally. Those US (or European or Australian) service providers with partnerships or informal relations in Asia will grow their business on the back of those arrangements. Those providers who are focused inwards will miss the opportunities.

By getting in now, making contact with local providers and assisting them through knowledge and technology transfer, long term relationships can be built that will be profitable for all players.

Read this full publication on the asian market written by our executive director Geoff Hukins: click here

Supply Chain & Logistics: Reduce your Freight Expenses

Celebrate the 4th &
Reduce your Freight Expenses!

Have you considered using a cheaper alternative to diesel or gasoline ?

An increasing number of industries are switching to natural gas to cut their freight costs, including supply chain and logistics.

Watch this video  commented by Jim Harger from Clean Energy to know all the benefits of using Natural Gas vehicles.


To know the locations of natural gas truck fueling stations in the US, click below :
 

 

 

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