5 TIPS TO PREPARE FOR OCEAN FREIGHT NEGOTIATIONS AND CONTRACTING

| April 24, 2016

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THERE ARE MANY CHALLENGES FACING OCEAN FREIGHT SHIPPERS, SUCH AS RISING LINER RATES, TIGHT CAPACITY ON CONTAINERS, PORT CONGESTION, AND UNCERTAINTY IN CARRIER OPERATIONS. USE THESE 5 TIPS TO HELP PREPARE YOUR STRATEGY BEFORE NAVIGATING THE CHOPPY WATERS OF OCEAN FREIGHT NEGOTIATIONS.

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Lineage Logistics

Lineage Logistics is a warehousing and logistics company built to deliver sophisticated, customized, and dependable cold chain solutions. Lineage Logistics has one of the largest facility networks in the U.S. and an ever expanding reach. However, it is the people of Lineage Logistics that set it apart – people who are creative, dedicated to getting the job done, and absolutely committed to customer service.

OTHER ARTICLES

Smart Supply Chains Adapt to Overcome COVID-19 Challenges

Article | March 20, 2020

Almost 75 percent of US companies are experiencing capacity shortfalls in their supply chains, due to Coronavirus-linked transport disruptions, a new study has shown. More than 60 percent of firms said delays were related to orders from China. With some 5 million companies impacted by China’s supply chain woes, the picture is similar in other parts of the world.

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3 Ways to Benchmark to Boost Supply Chain Performance

Article | April 20, 2021

You might be wondering what the benefits are of benchmarking. Well, imagine you are training for a 100 metre sprint in your district. What would be the key number, or metric that you would need to know? It would, of course, be what the winning time was when this race was last run in your district. Without that information, you don’t know what you’re trying to target. It would be impossible to know if you’ll have any chance at all of winning the race. It’s exactly the same in business. If, for example, you are concerned about the pick rates in your warehouse, or your transport costs, or your inventory accuracy, benchmarking can help you because it can show you exactly where your performance is compared to others in your industry. A few years ago, I was working with an automotive parts business. They had a little issue with their picking productivity in the warehouse. They wondered how good it was, whether they could improve it. They actually thought it was okay. We looked at the figures and compared them with other businesses. This helped us realise that their picking productivity should be three times better than it was. And believe it or not, over a few months they did begin to improve their productivity. Why? Because benchmarking opened their eyes to the fact that they were at a level quite far below others in the industry. That’s the beauty of benchmarking. Until you know what others are doing, you can’t be sure how good your performance is. If you’ve never tried benchmarking, there are three ways you could do it. 1. Informal Benchmarking This exercise would involve you measuring particular functions or aspects of your business and comparing that against other parts of your business. Let’s say you have a warehouse operating in one city and another operating in another city. You might start to measure the same metrics and see which one is performing better. You might know other people in the industry who are also operating warehouses so you might agree to share some data with them. This is probably the easiest way to start off, but it has some downsides: You’re only measuring against a very small sample size. If all of you in the pool are not that good, how would you know what good is? You have to make sure that the businesses are similar and you are measuring things in exactly the same way. It’s very important in benchmarking to have a standard way of applying the metric. 2. Formal Benchmarking This can work for much larger businesses. Perhaps you have operations in many different countries. You could agree a formal structure for how you are going to measure performance. You could do monthly or quarterly benchmarks with all the parts of your international organisation. You could learn from each other and share best practice. This method is okay but you’re not getting access to a very large pool of results to measure yourself against. You will find that companies are very reluctant to give out benchmarking data. You might also be operating in an environment where the performance is quite low right across the business. 3. Hire a Professional Benchmarking Firm This is the ultimate way to do it, although there are not a lot of professional benchmarking firms such as ours around. If you do manage to find one, you will quickly realise that there are significant benefits to be had by bringing in the professionals: The metrics are put together in exactly the same way: When we do a benchmarking exercise for our consulting clients, we go through a very robust data-gathering process and then make sure all the costs, for example, are in the same buckets as everyone else’s in the database. You gain access to a big pool of results: Professionals have measured hundreds, if not thousands, of companies. This enables you to say, ‘Our company is this size, it operates in this industry, these are the characteristics of our supply chain, who else in that pool of results is like us? We want to be measured against them.” It’s no good measuring the performance of a grocery retailer, for example, against an industrial product supplier. They have different supply chains. You need to be measuring like with like.

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Why PR is an indispensable tool for the logistics sector

Article | March 5, 2020

Logistics and infrastructure play a vital role in the growth of an economy. Logistics as a sector has undergone massive transformation over the past decade, especially with the introduction of e-commerce, and has earned a fair share of consumer facing innovations and development. Therefore, in the face of intense competition, and opening up of global markets, focus on building and positioning a logistics brand becomes critical.

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Supply Chain Peak Season Technology: Are Your Systems Updated & Ready?

Article | April 17, 2020

Supply chain peak season technology aids supply chain leaders in understanding their operations, unlocking insights, reviewing performance, and much more. In conjunction with the rise of e-commerce and ongoing demand for more products, faster service, and better supply chain performance, the entire year begins to take on the characteristics of supply chain peak season which traditionally has occurred during the time period after Labor Day through returns season in January.

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Spotlight

Lineage Logistics

Lineage Logistics is a warehousing and logistics company built to deliver sophisticated, customized, and dependable cold chain solutions. Lineage Logistics has one of the largest facility networks in the U.S. and an ever expanding reach. However, it is the people of Lineage Logistics that set it apart – people who are creative, dedicated to getting the job done, and absolutely committed to customer service.

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