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September 2014 Logistics Management

In this issue:

  • 23rd Annual Study of Logistics and Transportation Trends: The transportation tug of war
  • The Mobile Supply Chain: Significant progress, but a long way to go
  • Global Logistics: Proceed with caution in América Latina
  • 3PL management: Building the dream house
  • Warehouse and DC Order Fulfillment: Locke Supply’s path to accurate productivity
  • Logistics Technology: TMS gets more warehouse aware
  • Information Management: In search of supply chain execution convergence
  • The Top 25 Freight Forwarders: Leaders Prepare for Demand Surge
  • Viewpoint: Transportation’s tug of war
  • Moore on Pricing: Big Data and 3PLs
23rd Annual Study of Logistics and Transportation Trends: The transportation tug of war
September 1, 2014 · Results from our annual survey suggest that carriers, driven by a need to maximize profitability, are at a polar opposite with shippers who are focused on reducing costs. This lack of alignment has created a struggle that has resulted in a loss of focus on the bigger prize—being able to compete supply chain to supply chain.
The Mobile Supply Chain: Significant progress, but a long way to go
September 1, 2014 · Our top technology analysts give us an in-depth look at the current penetration of wireless and mobility outside of the four walls and offer their outlook on the future of real-time, 24/7 supply chain monitoring.
Global Logistics: Proceed with caution in América Latina
September 1, 2014 · Economic activity in Latin America and the Caribbean is expected to stay in low gear in 2014, according to the IMF’s latest forecast for the region. Shippers are advised to practice extreme due diligence before entering the marketplace.
3PL management: Building the dream house
September 1, 2014 · The continued evolution of “digital supply networks” depends on just how well shippers and their third-party logistics provider partners can work together to take costs out of the system while making improvements in flexibility and speed. Our consulting team offers a high-level blueprint for making it happen.
Warehouse and DC Order Fulfillment: Locke Supply’s path to accurate productivity
September 1, 2014 · Faced with booming volumes and subsequent picking challenges, a leading plumbing and heating products distributor integrated voice picking with its warehouse management system (WMS). They’re now fulfilling record volumes more accurately in less time and with fewer people. Here’s how they’re getting it done.
Logistics Technology: TMS gets more warehouse aware
September 1, 2014 · TMS and YMS expand on integration and supply chain visibility capabilities, gaining a better handle on warehouse constraints in the process.
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Latest in Logistics

More news
Union Pacific-Norfolk Southern merger application is filed with the Surface Transportation Board
When the merger agreement was initially announced, the rail carriers said it would create the nation’s first transcontinental railroad—which will connect more than 50,000 route miles across 43 states from the East Coast to the West Coast and connect around 100 ports as well.

FedEx posts fiscal first quarter earnings growth
Quarterly revenue, at $23.5 billion, increased 7% annually, and operating income, at $1.38 billion, was up 31%. Earnings per share, at $4.82, beat Wall Street expectations, at $4.02.

U.S. rail carload and intermodal volumes are down, for week ending December 15, reports AAR
Rail carloads, at 224,620, fell 1.7% annually, and intermodal containers and trailer volume, at 294,284 units, decreased 1.2% annually.

DAT’s November Truckload Volume Index sees more mixed results
November’s TVI dry van freight reading—at 197—fell 18% compared to October, while falling 12% annually. The November refrigerated (reefer) TVI—at 172—was down 11% sequentially and off 6.0% annually. And the flatbed TVI—at 243—was down 22% sequentially and posted a 3% annual gain.   

November intermodal volumes see annual decline, reports IANA
Total November volume, at 1,456,259 units, fell 4.1% annually, following a 2.0% annual decline in October and respective 2.4% and 1.6% annual gains seen in September and August, respectively. Which was preceded by July’s 4.4% annual gain, which saw higher volumes due to the pulling-forward of goods being imported during the previous pause on the White House’s reciprocal tariffs.

Teamsters Rail Conference makes its case for the Union Pacific-Norfolk Southern proposed merger to not be approved by the STB
With a merger application for the proposed $85 billion historic merger between Union Pacific and Norfolk Southern expected to be filed with the Surface Transportation Board (STB) this week, more than half of union employees at the railroads indicated they are not in favor of the merger. That is the word from the Brotherhood of Locomotive Engineers & Trainmen (BLET) and the Brotherhood of Maintenance of Way Employees, whom collectively account for 53% of UP and NS union employees, with the two unions...

USPS bets on last-mile expansion to drive revenue and enable faster delivery for retailers and logistics providers
With a focus on expanding access to its last mile delivery network, the United States Postal Service (USPS) said this week that shippers of all sizes will now be able to access more than 18,000 USPS delivery destination units (DDU) across the country.

Cass Freight Index sees annual declines in November
The November shipments reading, at 1.004, fell 7.6% annually, in line with October’s 7.8% annual decline, and November expenditures, at 3.163, decreased 1.2% annually and were down 0.2% compared to October.

Zebra Technologies is looking at strategic options for its robotics automation business
Acquired in 2021 and enhanced since, Zebra's mobile robot collaborative order picking solution may be sold off.

ISM forecast sees a manufacturing rebound in 2026 as services maintain steady expansion
While economic conditions for the manufacturing and services sectors are mixed, both are expected to see growth in 2026, at different paces, according to the new edition of the Institute for Supply Management’s (ISM) Supply Chain Planning Forecast.

PwC report indicates transportation and logistics dealmaking activity is focused on strategy, not scale
The report observed that T&L dealmaking activity gained renewed traction over the second half of this year, with buyers prioritizing strategic alignment over scale. And it added that acquirers focused on subsectors offering defensible growth, operating efficiency, and exposure to high-barrier markets, with activity across what the firm called the full value chain, ranging from infrastructure to asset-light platforms, coupled with capital allocated for things like technology modernization, resilient supply chains, and specialized logistics services.

ShipMatrix reports strong Cyber Week delivery performance results
For Cyber Week, which ShipMatrix defines as the week of December 1-7‑and a period in which more than 100 million parcels per day are handled, with more than 80% of these parcels being holiday gifts and delivered to residences—the firm reported very strong performance results for FedEx, UPS, and the United States Postal Service (USPS).

National diesel average falls for the fourth straight week, reports EIA
With a 5.8-cent decline, the national average, for the week of December 15, came in at $3.607, following a 9.3-cent decline, to $3.758, for the week of December 1.

FTR’s Shippers Conditions Index shows modest growth
For October, the most recent month for which data is available, the SCI reading rose to 0.3, after September’s -0.5.

Trucking executives are set to anxiously welcome in New Year amid uncertainty regarding freight demand
Top trucking industry executives are hoping 2026 will—finally—be the year when pent-up demand translates into higher freight rates and a return to profitability in both the truckload and less-than-truckload (LTL) sectors.

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