The technology that manages our supply chains, delivers our packages and powers logistics analytics is changing at a stunning rate. From drones to wearables, transportation management systems (TMS) to dashboards, it can be challenging for companies to stay on top of what is available and find meaningful ways to incorporate it into their shipping process.
Minimizing the costs of doing business can be tricky and time-consuming, so an increasing number of companies are looking to group purchasing organizations (GPOs) to help them save money.
General Electric and Boeing are reacting the most loudly to the continuing lack of Congressional authorization of the Export-Import Bank, with both companies cutting or threatening to eliminate U.S. jobs and moving them overseas because of the demise of the federally funded business- financing agency. But some mid-market and small companies also have begun to react as conservative members excoriated the Ex-Im Bank as an agent of “crony capitalism” for big companies that don’t need the help.
For 30 years, companies have sought to outsource and offshore IT as a way to reduce costs and/or quickly improve performance. Mega-deals were done in the ’90s and then, after that market was saturated, lesser deals ensued.
While output for small automobiles moves south of the border, dozens of U.S. parts manufacturers are still counting their blessings. Their business is plentiful as they supply goods for the new plants automakers are building in Mexico.
The transportation and logistics vendor landscape is highly fragmented, due largely to the numerous moving parts it takes to get a manufacturer’s product from concept design through production and all the way to the end-user’s hands.
The trucking industry is on a growth trajectory that is predicted to continue at least through 2022, according to the American Trucking Association (ATA). In addition, reduced fuel prices are leading to more flexible, affordable shipping options.
Automation solutions are increasingly incorporating capabilities to handle the Internet of Things, but manufacturers will likely need to shop separately for many best-of-breed IoT components.
Today, nearly every company has a chief procurement officer (CPO) leading a sourcing team in search of annual cost reductions. Over time, however, this laser focus on prices and costs has driven a commoditization of offerings that has limited competition among suppliers merely to the best price for a given specification.