Business – Henrex Logistics https://henrexlogistics.com Thu, 27 Apr 2023 21:04:25 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://henrexlogistics.com/wp-content/uploads/2023/04/cropped-Screenshot_11-Copy-32x32.png Business – Henrex Logistics https://henrexlogistics.com 32 32 Freight Payment and Auditing Services https://henrexlogistics.com/freight-payment-and-auditing-services/ https://henrexlogistics.com/freight-payment-and-auditing-services/#respond Wed, 28 Sep 2016 12:39:12 +0000 http://jewelry-store.dv.themerex.net/?p=107 Let’s face it, the freight audit and pay process is one of the least favorite tasks within the logistics industry.  One would think moving freight from anywhere in the country to anywhere in the country on any given day comes with challenges that would never approach paying a bill, but that is just not the case.

Paying an invoice or getting paid for the work you have done for a company can often be more difficult than moving the freight itself.  There are several companies in the industry that specialize in this process, but there are still a number of challenges.

InTek has a unique perspective to the freight payment process because we live the challenges of the freight settlement from both sides of the equation.

From the payment side, InTek is a non-asset service provider, so many times we are at the mercy of a payment process not going well while we collect on the freight we moved for a company.

From the processing side, InTek provides managed transportation services to companies of all sizes.

From this perspective, we feel we can offer additional insight that buyers can use in their discovery and decision-making process of how they will handle the freight settlement function.  We will go through our perspective by walking you through the following topics in detail:

  • Freight Audit and Payment Challenges.
  • Ramifications of a Poor Freight Audit and Pay Process.
  • Best Freight Audit and Pay Company Listing.
  • Additional Points to Consider

Top 6 Challenges of Freight Audit & Pay

  • The volume of transactions can be overwhelming because of the one-to-one relationship between shipment and invoice.
  • The amount of paperwork backup required to validate the charges compounds exponentially with the volume of shipments.
  • The incredible amount of detail included on an invoice and tremendous variability from carrier to carrier makes it difficult to hone in on a repeatable audit process.
  • Complexity of freight rates, along with various fuel charge and accessorial matrixes that are often not uniform across all carriers.
  • The number of approvals required often cause paperwork to get lost in the cycle.
  • The number of emails and phone calls associated with payment, whether collecting on an invoice or correcting an invoice often causes confusion with email-after-email that seems to run through an infinite loop without resolution in site.

Ramifications of a Poor Freight Audit and Pay Process

  • Studies indicate the average invoice error rate in the freight industry is 5% to 8%, so if the freight settlement is not handled properly then a company risks spending more because of the errors.
  • The carrier – shipper relationship can deteriorate because the carrier is not getting paid.
    • At some point, the carrier will refuse to pick-up freight because the shipper goes beyond credit terms.
  • The credit score will be put under pressure because the carrier will report slow and no pay issues to the credit industry, which will make it difficult to find carriers to move the freight.

Prefer your “best ofs” in video form? Check out our similarly titled video, the Best Freight Audit and Pay Companies:”

]]>
https://henrexlogistics.com/freight-payment-and-auditing-services/feed/ 0
Global Logistics 2023 https://henrexlogistics.com/global-logistics-2023/ https://henrexlogistics.com/global-logistics-2023/#comments Wed, 28 Sep 2016 12:33:30 +0000 http://jewelry-store.dv.themerex.net/?p=95 Then logistics experts discuss the challenges and prospects for global supply chains in 2023, it’s clear that a multitude of factors are involved. Many shippers and players in the transport and logistics business are currently under great pressure.

This is due to a number of lingering issues including the pandemic; huge increases in energy prices; large fluctuations in the supply and demand for transport capacities; delays in port trans-shipment; and bottlenecks in hinterland transport. Furthermore, numerous countries are experiencing double-digit inflation.

Russia’s war on Ukraine also has effects on the supply and flows of goods, while disruption of supply chains and the West’s dependence on imports continues to intensify the debate about relations with China. Above all, there’s also the environmental challenge and the question of how to reduce CO2 emissions and deal with the costs for doing so.

And in the midst of these unprecedented challenges, industrial and commercial companies are analyzing their supply chains and searching for optimization tactics and alternatives. One possibility is to go back to more warehousing with the aim of greater stability in the supply of goods of all kinds—which has often not been running smoothly as of late. Still, the economy has no short-term alternative to international production and trade.

As we move forward, it’s clear that global supply chains will continue to not only need exceptional risk management solutions, but also improved climate friendliness. According to experts of the German Freight Forwarding and Logistics Association (DSLV), one thing is certain: the trend is to take every bit of CO2 reduction into account and leverage climate potential step by step wherever sensible and effective.

“Through innovative technology and efficient and digital processes, we need fewer resources and can reduce emissions. Switching to low-emission modes of transport, motors, and fuels is the most important way to further climate protection in the transport sector and logistics,” say DSLV experts.

Freight rates remain high

Just-in-time deliveries, a strategy followed for a long time, can often no longer be reliably guaranteed in many places. High-volume consigners have the advantage of market power to exert pressure on shipowners, port terminals, and transport companies to meet just-in-time delivery schedules.

In addition to delays in deliveries worldwide, the huge increases in freight rates caused problems for shippers last year. For 2023, consigners hope that freight costs will gradually taper down toward pre-pandemic levels.

However, Rolf Habben Jansen, CEO of Hapag Lloyd, pointed out at an online press event that the significant increase in fuel prices will mean that shipping lines will have to reckon with freight rates around 20% to 30% higher than two to three years ago. He expects that shipowners will face difficulties in long-term planning in general and will need to rely more on quarterly adjustments in services and rates.

Major seaports, such as Rotterdam, Europe’s largest port, will respond to increasing costs with moderate price hikes of around 2.5% to 3%, according to Siemons Boudewijn, COO of Port of Rotterdam Authority. Other ports are also expected to implement price increases for 2023.

Gradual introduction of a CO2 levy in the EU

Maritime shipping accounts for around 3% of global CO2 emissions, according to a report published in October 2017 by the International Council on Clean Transportation (ICCT). Around 60,000 larger merchant ships, including around 6,000 container ships, operate on the world’s oceans.

In October 2022, the International Chamber of Shipping (ICS) announced its goal of achieving climate-neutral shipping by 2050. In 2018, the International Maritime Organization (IMO) had already set the target of reducing emissions by 2050 to a level at least 50% lower than in 2008. The EU is planning to reduce CO2 emissions and to put taxes on shipping even earlier.

Within the framework of its Emission Trading System (EU ETS), a CO2 tax for ships of 5,000 gross tonnage (GT) and above is to be introduced in the EU in three stages from 2024 to 2026. Some shipping companies, such as MSC, have already informed their customers about additional costs in the future. Container shipping companies have estimated the added costs at about $192 to $202 for a 40-foot standard container on the Northern Europe-U.S. East Coast route.

DSLV’s experts point out that it’s important that the introduction of a CO2 levy in the EU region must not lead to any competitive disadvantages. Equal competitive conditions in international shipping are crucial for global trade. In the opinion of shippers and shipowners, the IMO should implement global regulation in a timely manner.

In the meantime, the development of alternative fuels for shipping is still in its early stages. The production, distribution, and market ramp-up of sustainable alternative fuels, as well as the expansion of shore-side power supply in sea and inland ports, are important steps towards reducing greenhouse gas emissions on the way to climate-neutral shipping.

Green shipping

Shipping lines are increasingly employing modern ships with significantly improved environmental standards as well as new propulsion systems and more environmentally friendly fuels. There’s no doubt that investment in climate-friendly transport chains is on the rise.

Among the world’s largest carriers, companies such as Maersk already offer their customers special “green shipping offers.” EcoDelivery, for example, takes climate-neutral fuels into account. These are, for example, waste vegetable fats and oils from the food industry. The CO2 saved is certified for the shippers’ carbon accounting, while a total of 3% of Maersk’s total cargo volume was carried with climate-neutral fuels in third quarter of 2022.

The EcoDelivery surcharge for a 40-foot container in major trades, such as the Far East and trans-Pacific, was around $200 to $300 per box in 2022. If you convert that to, say, the 30,000 T-shirts or 6,000-8,000 pairs of shoes that can fit in such a box, at $0.007 per T-shirt, that’s not a huge added cost per unit of product.

The number of consigners interested in EcoDelivery is increasing steadily, according to the shipping company. According to Maersk, customers already using EcoDelivery include H&M, Electrolux, Lenovo, and the Danish fashion group Bestseller.

The shipping company recently ordered 19 container ships powered by climate-neutral green methanol. From June 2023 to 2025, one feeder ship and 18 large container ships with slot capacities of 16,000 TEU and 17,000 TEU will be put into service under the Maersk flag.

The carrier is also moving towards climate neutrality landside and is building or leasing very low-emission warehouses and using electric vehicles at its own terminals. To date, 300 e-trucks are already in use, mainly in the United States, and a further 140 e-trucks have been ordered.

]]>
https://henrexlogistics.com/global-logistics-2023/feed/ 2
Logistics Planning: From Good To Great https://henrexlogistics.com/logistics-planning-from-good-to-great/ https://henrexlogistics.com/logistics-planning-from-good-to-great/#respond Wed, 28 Sep 2016 12:32:51 +0000 http://jewelry-store.dv.themerex.net/?p=96 Behind almost every superhero is an intelligent, resourceful support team. With advanced decision-support technology, the support team alerts their superheroes to crime happening nearby, guides them through the quickest route in the city, and encourages them even when the odds are stacked against them.

Now, what does this have to do with your logistics operations?

It’s simple. Your drivers are the superheroes and your planners are their support team.

Think about it. Your drivers are out on the streets battling traffic, roadworks, and whether to meet your SLAs. But who ensures that they get there on time to pick up and drop off shipments? Who ensures that your drivers make as few empty trips as possible?

Their support team, of course – a team made up of your logistics planners and the best decision-support technology.

While your planners don’t help save the world from evil villains, they have to manage daily disruptions in the form of vehicle breakdowns, port congestions, brutal weather conditions, and driver shortages. But the question is, are your drivers getting the most out of their support team? Do your planners have what they need to generate not just good, but great plans? Not yet.

The best support team in logistics planning

To get not just good, but great plans, you need to equip your logistics planners with the best decision-support technology – intelligent planning and optimization software.

An intelligent planning and optimization software like Quintiq is designed to help your planners make better decisions, faster. It frees up your planners to focus on refining optimized plans by applying their years of experience in logistics planning.

Imagine this: A shipment is due to be delivered and a rush order comes in. But your planners know that the shipment due today can be pushed till a day later because the customer has a good relationship with your company.

The best decision-support technology would give your planners insight based on due dates, volume, and drivers available. When combined with their experience and soft knowledge, this would enable them to achieve the ultimate goal: Maximize operational benefits and increase profitability.

What’s possible when you empower your planners?

By empowering their planners with the Quintiq planning and optimization software, some of the world’s leading logistics providers, including P&O Ferrymasters and DHL, have experienced these significant improvements:

Increase in resource utilization by 12%
Delivery performance up by 25%
Costs reduced by 12%
You and I know that even the smallest percentage can mean millions in savings. Join the ranks of leading logistics providers by empowering your planners to do more for your bottom line and be the best support team for your drivers.

]]>
https://henrexlogistics.com/logistics-planning-from-good-to-great/feed/ 0
Fleet Management Comes into Focus https://henrexlogistics.com/fleet-management-comes-into-focus/ https://henrexlogistics.com/fleet-management-comes-into-focus/#respond Wed, 28 Sep 2016 12:31:18 +0000 http://jewelry-store.dv.themerex.net/?p=93 Of all the investments a company could make to modernize warehouse operations, fleet management is the most unique. Unlike automation, infrastructure or software, lift truck usage has a huge behavioral component that makes measuring and defining success more difficult. Few other elements of materials handling equipment are mobile anywhere between eight and 24 hours a day, and few interact so frequently with as many stakeholders inside and outside the organization—from operators to managers to service providers.

When the futuristic concept of “fleet management” emerged a few years ago, it promised to leverage the Internet of Things, real-time data, and other buzzwords to bring all the pieces together to cut costs, streamline operations, improve safety and more. The sky was the limit, and the humble warehouse workhorse would finally get the treatment it deserved as such a fundamental component to productivity and profitability.

“We’re done with the hype,” says John Rosenberger, product manager for iWarehouse Gateway and global telematics for The Raymond Corp. “Everyone now accepts that there’s an advantage to fleet management, but it’s like a gym membership. If you don’t go, what value are you getting out of it?”

Like a gym, the umbrella of fleet management includes a lot of options, and few people need them all. Sure, January 1 could be the first day of your quest to become an Olympian, but it’s best to set more modest goals. The industry has spent the last few years learning this lesson—often the hard way—and the approach to forklift telematics and fleet optimization programs has adapted accordingly.

“OEMs and third parties that provide fleet management have all rushed to be able to offer everything,” says Greg Simmons, business development manager for Mitsubishi Caterpillar Forklift America’s national account fleet services team. “As we get a couple years into it and customers have tried some things, they’ve taken a half step back to return to the fundamentals. One size does not fit all, so we see a trend to apply small pieces of the fleet management solution set to one area that helps move the needle for one customer. That’s what matters most.”

Finding the needle in the payback
By some estimates, less than 30% of lift trucks are equipped with telematics, according to Steven LaFevers, director of aftermarket solutions for Yale Materials Handling Corp. The rest haven’t bought into fleet management solutions because they haven’t found one with the right balance between cost and immediate concerns.

Instead of a large initial investment in a base telematics solution followed by the added modules and functionality, LaFevers predicts more focused solutions that handle only battery management, or just operator checklists, or just technologies that target operator behavior. Although they might strike the balance of price and impact, all of these elements will require the same consistency of discipline as any fleet management solution.

]]>
https://henrexlogistics.com/fleet-management-comes-into-focus/feed/ 0
Optimizing Your Supply Chain https://henrexlogistics.com/optimizing-your-supply-chain/ https://henrexlogistics.com/optimizing-your-supply-chain/#respond Wed, 28 Sep 2016 12:30:53 +0000 http://jewelry-store.dv.themerex.net/?p=89 Air cargo can be an important and highly efficient component of today’s optimized supply chain. For many products, markets, and industries, air freight is the critical link that allows organizations to respond to customer demands in a timely manner. Multiple air shipment options, as well as advancements in reporting and aircraft efficiency, make air cargo essential for many supply chains.

Air cargo can help organizations optimize their supply chain in three important ways. It allows the speed needed to deliver time and temperature sensitive products, provides reliable access to remote and developing locations, and can offer the best combination of service and price.
Become familiar with air cargo options: next flight out, consolidation, and deferred services. There is no one-size-fits-all air cargo solution. An experienced provider will help determine which type is best for supply chain efficiency.

Ancillary services such as customs clearance and distribution/delivery sourcing may not be top of mind when considering freight options, but they move in concert with the speed of freight and are key to ensuring on time delivery. An experienced provider keeps these in mind when advising the best options for a business—helping translate an optimized supply chain into lower overall transportation spend.

Quick response to market demands

Market response

With air cargo, shorter lead times for inventory replenishment are realized and a company can quickly respond to holiday or seasonal demands, as well as reduce inventory carrying costs. All of that adds up to a supply chain that offers efficiency coupled with flexibility — providing customers the agility necessary to contract and expand with market needs.

Time and temperature sensitive products

Air cargo also provides the perfect way to extend shelf life for both time sensitive and temperature sensitive products. It gives another way to increase inventory life and decrease potential losses.

These quick response times also come in handy when dealing with unforeseen events, like factory delays or urgent customer demands. Addressed early, these situations can provide an opportunity to position companies as the problem-solver instead of the problem. Working with a provider who can seamlessly shift from one service to another, depending on needs, offers an advantage over the competition.

Value of technology in air cargo services

It is very important to find a provider that offers seamless access to multiple services along with true visibility from a single platform. With the use of Electronic Data Interchange (EDI), a top-notch provider can offer current updates about shipments, 24/7.

Benefits of air cargo in emerging markets

In emerging markets, air cargo can often be the only reliable method to connect customers with goods. As part of a seamlessly connected global supply chain, air cargo can facilitate growth into new markets.

It’s also important to realize that in today’s global marketplace it’s not just about being fast, it’s about being first. Having the flexibility within the supply chain to be first to market offers many advantages. Whether a company is looking for a service that’s fast, first, or simply flexible, air cargo can fill a critical role in making sure that a supply chain is meeting business objectives and serving customers’ needs.

Keeping overall spend in mind

Freight costs are just one factor to consider when evaluating freight service options. Inventory carrying costs, and the sales opportunities associated with being first to market, are important considerations for shippers. The increased use of more fuel-efficient cargo fleets has changed the cost equation.

Finding a provider who offers access to the benefits of mode-neutral routing can widen shipping options. Mode-neutral routing allows a provider to put a company’s needs first by selecting the service that best suits the specific shipping requirements and expectations. This allows for tightening the supply chain — focusing on overall spend rather than specific costs. Saving a few dollars here and there on air cargo does not make sense if delaying time to market increases inventory costs or unnecessarily lengthens the cash-to-cash cycle.

When evaluating the costs of air cargo, the freight cost is only one component of the equation. Inventory carrying costs and the opportunity to capture market share can offset freight costs. For many industries, like automotive, aerospace, electronics, and medical devices, air cargo is an essential  component of an optimized supply chain.

Simply choosing services based on price alone can negatively impact the supply chain. In any economic climate, shippers should remember to calculate the cost, door to door, keeping in mind the right blend of spend to the best benefit to their overall business concerns.

That’s why taking advantage of a mode-neutral relationship with a multimodal shipping provider is a smart business move in today’s ever-changing global market.

4 reasons to rethink air cargo in a supply chain

  1. Quick response to market demands
  2. Global visibility on a single platform
  3. Better access to emerging markets
  4. Increased value from a supply chain optimized with the right air service for any specific business needs
]]>
https://henrexlogistics.com/optimizing-your-supply-chain/feed/ 0
Project Logistics: Going the Distance https://henrexlogistics.com/project-logistics-going-the-distance/ https://henrexlogistics.com/project-logistics-going-the-distance/#respond Wed, 28 Sep 2016 12:29:30 +0000 http://jewelry-store.dv.themerex.net/?p=87 Moving big, bulky, unconventional freight around the globe precisely and effectively in the face of myriad challenges is not for the faint of heart. Here’s how project logistics experts get it done.

It’s not every day in transportation and logistics that you are involved in a star-studded movie premiere with both Hollywood royalty and actual members of the British monarchy in attendance. But that was the reality recently for the project logistics team at CEVA Logistics, which played a key role in the London premier of the new Top Gun movie. On the red carpet, along with leading man Tom Cruise, other cast members, and the Duke and Duchess of Cambridge, sat a full-scale replica of the Typhoon fighter jet used in the film.

Getting the jet delivered and assembled for the premiere—and removing it once the lights, camera, and action of the big night were finished—was a maverick move, according to Sharon Robinson, managing director for CEVA Logistics’ Showfreight division, which oversaw the project.

The Typhoon was a full-scale replica, accurate in all details to a flying Typhoon, and was shipped from Farnborough in Hampshire (its full-time storage location) to Leicester Square in central London.

“The replica was shipped dismantled as one oversized low/wide load with two support trailers carrying the undercarriage, wings, and tail, as well as our tools and equipment needed for the construction,” she explains.

Robinson’s team had just seven hours to unload and install the scale model for its client, BAE Systems, which produces the real-world aircraft. And, by 6:00 the next morning, the replica aircraft and all its associated equipment had to be dismantled and transported away.

Having supported BAE Systems with other similar projects for some 20 years, the CEVA team had the right experience to handle this project logistics move seamlessly. “The key to the project was the accuracy of information supplied to the event organizers prior to the event so that a precise plan could be set out for all contractors to work safely together in a time-critical manner,” Robinson notes.

While most project cargo moves are not quite as high-profile as the Top Gun project, they happen successfully all over the world, every day, thanks to a similar mix of experienced personnel, intense coordination and planning, and savvy use of logistics technology.

Project logistics—also known as bulk logistics—involves planning, organizing, managing, processing, and controlling the complete flow of goods, materials, and information associated with the successful completion of a specific project. The freight involved is typically large, bulky, heavy, unusually shaped, and high-value, making project logistics one of the most demanding areas of supply chain, logistics, and transportation.

Typically, bulk shippers operate in verticals such as oil and gas, energy, mining, construction, military, and other heavily industrial sectors that regularly transport products like reactors, generators, turbines, boilers, towers, oil rig parts, military equipment, and satellites.

The booming renewable energy sector is currently one of the hottest areas of project logistics. A new ResearchandMarkets.com report estimates that 84% of the growth in project logistics since 2018 has come from solar and wind energy projects.

“The positive future outlook for renewable energy is driving the current project logistics market,” notes the report, Project Logistics Market-Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027).

“In order to generate the required amount of power in the future, the energy companies need to develop the necessary infrastructure, commence new projects, and install power generation equipment,” according to the report. “This scenario is going to create demand for project logistics.”

“Components for power-generation projects comprise the majority of project logistics cargo coming inbound into the United States,” says Rob Silsbee, director of business development at Logistics Plus, an Erie, Pennsylvania-based 3PL specializing in bulk logistics. “That trend will continue for some time, as there’s a huge green energy push right now.

“There’s still huge opportunity within the traditional power market as well, with gas and steam turbines, but the biggest ramp-up is on solar and wind power,” he adds.

As a result of weight and/or size, bulk cargo—whether for a renewable energy project or a bulk move serving a different industry—cannot usually be shipped by a normal container. Instead, specialty vehicles, vessels, and equipment are frequently needed to safely and effectively transport these bulk items via land, air, or ocean. Adding to the complexity, these projects also frequently include disassembly for purposes of shipment and reassembly following a delivery.

IT DON’T COME EASY

“Every project comes with its own unique challenges,” explains Kevin Mitchell, director of global operations at C.H. Robinson Project Logistics. “With each of these moves, we basically create a supply chain that didn’t exist before. The type of cargo we’re handling doesn’t fit into the normal scope of transportation.”

As a result, “normal” goes out the window when it comes to executing these types of moves. Instead, thinking outside the box, constantly being flexible, and innovating new approaches is the norm.

For example, C.H. Robinson recently handled a complex project—transporting parts of what will become an oil refinery to a fabricator in Oklahoma. There, the parts were assembled into modules, and then sent via the Gulf of Mexico to the Port of Houston and eventually to Mexico to become building blocks for a refinery. The move involved barges, a heavy-lift vessel, and a self-propelled modular transporter, a type of trailer operated by remote control. (See photo essay for more details on this fascinating project, which included eight units with a combined weight of approximately 38 metric tons.)

Supply chain technology that provides end-to-end, real-time visibility for these complex moves plays a large role. “Technology is a huge part of what our customers are looking for in order to have true visibility of their cargo,” Silsbee explains. “Today’s systems offer live updates and alerts for things like cargo sitting for more than two hours, and the ability to measure everything from hard stops to G forces, and even atmospheric conditions, such as barometric pressure or moisture.”

Predictive analytic technology is also starting to become an important tech for project logistics, adds Mitchell. Planning every element of a project goes a long way toward ensuring a smooth move. However, there are always things that occur along the way that seem impossible to predict. But are they?

“Our technology includes predictive analytics to anticipate and actually avoid disruptions,” Mitchell says. “It combines status updates from all the suppliers for a project with information about weather, natural disasters, traffic, unexpected road or bridge closures, and geopolitical events to identify shipments that are at risk and prescribe actions to take to keep the project on track.”

“When a client rents a crane for $100,000 a day to build a wind farm in a desert, they can’t afford for the turbines to be three days late,” he says.

It’s a 3PL’s job, he notes, to be able to predict anything that could get in the way of that.

MANY CHALLENGES, MANY STRATEGIES

Given the intense economic, social, and geopolitical challenges facing the supply chain, project logistics requires above-and-beyond commitment to getting the job done. The same port backlogs, worker shortages, cost increases, supply delays, and COVID-related shutdowns that have plagued the typical supply chain are heightened even further in project logistics.

The frequent delays occurring at all different points along the supply chain currently have a huge ripple effect on bulk moves, since they are so carefully orchestrated. Creativity helps.

“We try to look at new or different ways to transport goods for our customers,” Mitchell says. “We look at whether we can pack things differently, so we have additional transport options—maybe we can move part of the cargo on ocean carriers, part on bulk carriers, or roll-on/roll-off carriers.”

C.H. Robinson also works with shippers to build extra time into their schedules as frequently as possible.

The biggest impact of the current supply chain crisis has been financial. “With fewer drivers on the market, with less equipment on the market, with more backups at ports, and with gas prices going through the roof, we’ve seen a huge escalation in cost,” says Silsbee.

Current dynamics aside, project logistics is a subset of the supply chain that will always present more challenges than a typical over-the-road route, air cargo move, or intermodal/rail trip. A litany of potential roadblocks—literal and metaphorical—exist as a matter of course for project logistics.

These challenges include infrastructure concerns such as determining whether existing roads and bridges can hold the weight of the cargo and, where there is no existing infrastructure—as is often the case with the remote delivery locations for wind-power projects—constructing new roads.

Obtaining the right permits and adhering to the rules and regulations of each state your cargo is traveling through can also be tricky. In many places, Silsbee points out, project cargo can only move overnight, which adds to the challenge. And weather disasters can always throw a wrench into the best-laid project logistics plans.

Despite the odds, by working together, shippers, transportation providers, 3PLs, and port authorities do an amazing job of overcoming obstacles and getting the job done.

The following case studies show just what goes into these incredible moves.

PORT SUPPORT

While project logistics is largely about shippers and carriers, the ports that take delivery of bulk cargo play an important role as well: carefully planning and orchestrating the loading/unloading process and overseeing the cargo’s exit from the port en route to its final destination.

It takes a lot of expertise to pull off. Delaware’s Port of Wilmington, for example, has handled shipments of wind blades from GE for renewable energy projects for several years. “We have the experience and the space to discharge these blades safely,” says Joe Cruise, the port’s CEO.

The port has received two shipments to date in 2022, both coming from Canada; one in April with 78 sets of blades (there are three blades in each set)—each of which are more than 200 feet long and weigh more than 13.5 tons each—and in May, a shipment of 75 sets.

Coordination is a huge aspect of handling these moves. “It is always a delicate operation when handling cargo of this size and weight, so we work diligently with our International Longshoremen’s Association partners, the vessel’s crew, and the trucking company,” Cruise explains.

The port also worked closely with the Delaware Department of Transportation and Highway Patrol to meet all the requirements of getting the blades safely on the road.

Similarly, the Port of Long Beach, California, identifies close coordination and planning with all parties as the key to its successful project logistics work.

Recently, when a delayed shipment of critical supplies stalled work on a $750 million solar installation project and threatened the jobs of 500 unionized construction workers, the port was able to locate, expedite, and prioritize the shipment of solar supplies.

“We did it by leveraging our existing relationships and working diligently with our terminals, the shipping lines, and the suppliers,” says Noel Hacegaba, the port’s deputy executive director.

The supplies were stuck inside cargo containers dwelling up to two weeks on marine terminals and aboard shipping vessels waiting to enter the Port of Long Beach. “We quickly activated the team and put our playbook to use to locate those boxes and prioritize them through to the terminal,” Hacegaba notes, adding that it was a lot of manual, “in the trenches” work.

Even with all of today’s advanced technologies, sometimes, he says, “the human factor is still the secret sauce.”

A WINNING FORMULA

As the official logistics partner for Formula 1 since 2004, DHL has mastered the art of making sure that everything needed for each race arrives on time, safely, effectively—and as sustainably as possible—all season long. How does DHL do it?

“Teamwork and communication is ultimately the key,” says Paul Fowler, vice president, DHL Global Motorsports. He credits “our hands-on team with decades of motorsports logistics experience” for making it all happen.

Over the course of the 22-race season, DHL transports thousands of tons of highly sensitive freight, including cars, engines, fuel, broadcasting equipment, and marketing and hospitality material.

“Planning and preparation typically begins one year in advance, and we pay extra attention to newer venues and events,” says Fowler. “We consider a number of factors such as security (selecting minimal-risk routes), sustainability, practicability, and costs.”

DHL also uses detailed planning of global routing to ensure on-time delivery for each race.

As part of its efforts, DHL uses multi-modal transport solutions, including overland and ocean freight, to reduce the environmental impact of Formula 1 logistics. The company has also invested in a new packaging method for all F1 shipments: “Specialized containers that are contoured to more sustainable 777 aircraft, made from lighter-than-aluminum honeycomb panels for improved weight-to-volume ratio,” Fowler says.

]]>
https://henrexlogistics.com/project-logistics-going-the-distance/feed/ 0
Transportation Management Solutions for Large Companies https://henrexlogistics.com/transportation-management-solutions-for-large-companies/ https://henrexlogistics.com/transportation-management-solutions-for-large-companies/#respond Mon, 08 Aug 2016 14:16:43 +0000 https://henrexlogistics.com/?p=586 Managed transportation services continue to be the #1 topic we talk with shippers about as they look to optimize their supply chain performance against the challenging backdrop of rising freight rates, tight truck capacity, along with changing and more challenging customer requirements.

As we work our way through the discussion of Managed TMS, we invariably are asked what we believe are the best transportation management software (TMS) platforms in the industry.

To help buyers through their TMS selection process of upgrading their supply chain technology, we want to be as transparent and upfront as possible on the other TMS software options so they can work through what system will be the best fit for them because there is not a one size fits all answer on the topic.

With that said, let’s go through the list and then have a short discussion on how to assemble a requirements document.

Top 13 Transportation Management Systems (TMS)

  • 3Gtms
  • e2open
  • Cloud Logistics
  • Descartes
  • Blue Yonder
  • Manhattan
  • MercuryGate
  • Oracle
  • SAP
  • TMC – A Division of C.H. Robinson
  • Trimble
  • Transplace

TMS Requirements Document

With the top transportation management systems outlined, it is imperative for buyers to assemble a requirements document to make an objective decision.  Too often we see companies make their decision on the flash and excitement, which causes them to make a suboptimal decision.

]]>
https://henrexlogistics.com/transportation-management-solutions-for-large-companies/feed/ 0
How API Technology Connects the Transportation Economy https://henrexlogistics.com/how-api-technology-connects-the-transportation-economy/ https://henrexlogistics.com/how-api-technology-connects-the-transportation-economy/#respond Mon, 08 Aug 2016 14:16:37 +0000 https://henrexlogistics.com/?p=585 Dynamic decision making is the foundation of every successful supply chain. To achieve this, customers need access to accurate, actionable data. To get transaction-level data, shippers and 3PLs connect to a variety of online sources, creating strong, unique technological bonds between a carrier and its customers.

Technical innovators are creating new markets and services by the aggregation, standardization and orchestration of these transactional services, while adding more analytical, industrial-strength APIs into the equation. When combined with progress in data science and the Internet of Things, technology companies that add value to direct-to-carrier APIs and combine them with high-power data analytics will create new concepts for the information economy.

Join us to learn more about:

  • Transactional API’s versus Analytical API’s for Speed and Ease of Use
  • Positive Impacts of Message Standardization for Data Harmonization and System Integration
  • Benefits of Orchestration to Your Business
  • Exception-based Workflows
]]>
https://henrexlogistics.com/how-api-technology-connects-the-transportation-economy/feed/ 0
Logistics Managers Should Brace for Changes in Air Cargo https://henrexlogistics.com/logistics-managers-should-brace-for-changes-in-air-cargo/ https://henrexlogistics.com/logistics-managers-should-brace-for-changes-in-air-cargo/#respond Mon, 08 Aug 2016 14:16:32 +0000 https://henrexlogistics.com/?p=584 Cargo airlines enjoyed a period of high revenue—driven by scarce capacity—during the pandemic. But after the boom of the past three years, yields are gradually falling from the 2021 peak. Belly cargo capacity is recovering, and demand is softening, leading to uncertainty as cargo airlines brace for the risk of a “back to normal” scenario.

This raises the issue of how cargo airlines can make sure that the “back to normal” is not a “hard landing”. In this environment, a new approach to revenue management could be the key that allows airlines to adjust their commercial strategies and continue to benefit from opportunities in the market.

Over the past three years, the cargo market has been capacity-driven and airlines with significant capacity pulled ahead of competitors. Recently, there seems to be a transition back to a demand-driven market: yields have declined, demand has slowed, and belly capacity continues to recover (Exhibit 1). Moving forward, rates are expected to decline further, although will likely remain above 2019 levels.

What this means is that new ways of working may be required for individual cargo airlines to remain competitive in this changing market. As belly capacity returns, the market will likely become increasingly competitive, and airlines that don’t have a robust commercial and revenue-management strategy in place might lose out and see their yields diminish faster than the average.

At the same time, many cargo airlines have invested considerably in their digital strategies since the pandemic began. In particular, online sales have boomed, and consequently, cargo airlines have access to much more data than was possible three years ago. A recent Freightos WebCargo report found that digitized air capacity across the industry reached 57 percent in Q1 2023, compared to 38 percent in Q1 2022, and only 3 percent in Q1 2019.

Taken together, the turning point in the market and the rise of digitization in the industry point to today being a crucial time to formulate next-generation revenue management for air cargo.

This article details three areas where cargo airlines can focus their efforts to re-think revenue management, specifically by relying on accurate forecasting to form actionable insights; using real-time monitoring for fast decision-making; and taking a customer-centric approach.

Using new tech to improve forecasts

Forecasting demand and supply is the starting point for a cargo pricing and revenue-management strategy. However, cargo demand is extremely challenging to forecast, for several reasons.

First, booking tends to be a last-minute process and late bookings are a consistent feature in this environment. Typically, two weeks before departure, less than 40 percent of an airline’s capacity has been booked. Second, the market is volatile. Air freight is often used by shippers as a last-minute restocking option, which depends on many economic factors, so the need for air freight can change almost overnight. Third, the air freight market is composed of dozens of industries, and thousands of commodities, each with different drivers that make demand difficult to predict.

But, airlines can leverage technological advances to improve demand forecasts and deal with volatility. The availability of more granular data sources, and the advance of Machine Learning (ML) algorithms, make it possible for cargo airlines to pursue better demand forecasting solutions to gain deeper insights—and ultimately make more nimble revenue decisions.

For instance, due to the increase in online sales, cargo airlines have more data available about their customers’ behavior. This is particularly the case for airlines that have their own sales portals. Through digitalization, the air cargo industry has an opportunity to build a 360-degree view of demand across the entire customer journey which includes data that is above the sales funnel, such as which flights customers search for, lead times, how the cargo request was made, how long it took to fulfill, and if there was a cancelation or modification. Airlines can also look at step-based conversion rates showing how the airline performs at each stage of the sales funnel (discovery, flight selection, product selection, price offer, etcetera). Having all of this data in one place means that cargo airlines can improve their customer experience: better understand what customers want, and when they are likely to want it. This is the type of insight that companies in B2C industries, such as passenger airlines or hotels, typically have access to and cargo airlines could consider using a similar approach and leaning into the e-commerce aspect of sales.

It’s clear that Artificial Intelligence (AI) and ML are transforming sectors and industries across the world—and cargo airlines could harness the power of AI to better predict demand. A McKinsey Global Institute study identified that the travel, transport, and logistics sector has the most potential for incremental value from AI, amounting to $1.8 trillion in value. Within this sector, roughly half of this value is likely to come from commercial applications such as customer service and pricing.

Cargo airlines are well positioned to increase forecasting accuracy through AI. For example, AI could make sense of the thousand or more commodities, as well as their inter-dependencies, within the supply chain. For instance, AI could determine how trends in raw materials and semi-manufactured products in one country could lead to a growth or decline in specific finished products in another—and how this would influence cargo demand.

There are a few pointers airlines could keep in mind when using AI for demand forecasting. It is important to select the right data as input, as it needs to be sufficiently granular. And using a blend of internal and external data can lead to greater forecasting accuracy as early as two weeks out, despite very few bookings being made at that time. Internal historical data is very important for improving forecasting quality, which tends to be overlooked.

Considering that the accuracy of ML algorithms increases with the amount of quality data being used, airlines will probably find that AI-enabled forecasts get more accurate over time. One cargo airline managed to improve its ability to predict demand significantly through the use of AI. Initially, the AI tool reduced the airline’s forecasting error from around 20 percent to 14 percent, and once it went live it continued to improve in accuracy.

The airline found that the AI model was much better at predicting seasonality patterns through multi-layered algorithms than traditional models. This allowed it to predict volume patterns to a high degree of accuracy from one to four weeks before departure. Furthermore, incorporating data on trends such as booking cancellations improved final volume predictions.

There are other untapped opportunities to leverage internal data, such as by predicting no-show rates for bookings by lane and by customer. Another airline followed this approach which led to better capacity management and, ultimately, improved profitability. Predicting cancellations allowed the airline to increase “overbooking” while still controlling for the risk of penalties (Exhibit 2). This, together with other specific use cases, helped to uplift load factors by around 8 percent after a 12-week pilot. Based on this success, the airline was able to identify potential network-wide savings worth tens of millions of dollars.

]]>
https://henrexlogistics.com/logistics-managers-should-brace-for-changes-in-air-cargo/feed/ 0