Economic Order Quantity (EOQ) is a fundamental technique in inventory management, aimed at determining the optimal order size. Introduced by Ford W. Harris in 1913, the EOQ model balances the costs of ordering and holding inventory against demand. This balance aims to minimize the total inventory cost, leading to a practical quantity that reduces excess…
Cross-docking swiftly moves goods from inbound receipt to outbound shipment, often in minutes or hours. This method significantly reduces non-value-added handling. It eliminates the need for extensive storage, improving distribution efficiency for fast-moving networks. Modern facilities leverage advanced technologies like conveyor-enabled scan-and-route processes and ASN-driven workflows. Providers such as Expeditors and SPS Commerce offer these…
Logistics Cost Reduction Strategies are key to boosting margins and resilience. It’s not just about cutting costs. The goal is to enhance Operational Efficiency in Logistics, maintaining service quality while reducing total costs. This includes transportation, warehousing, inventory, labor, and administrative expenses. Leaders focus on Cost-saving Strategies for Supply Chain to reduce empty miles and…
Modern supply chains rely on four key Transportation Modes in Logistics: Road, Sea, Air, and Rail. Each mode has its own economics, speed, and capacity. Choosing the right Shipping methods impacts the cost, delivery time, and risk in the U.S. and worldwide. Ocean carriers handle over 90% of global trade, with the top 10 container…
Fast, reliable fulfillment has become a key driver of growth. Consumers now expect flexible shipping, real-time updates, and timely delivery. Surveys show 83% of shoppers want more flexible options, and 81% believe positive experiences boost their likelihood to return. This section outlines the Order Fulfillment Process Steps, from receiving an order to its delivery and…
In the United States supply chain, executives face a critical decision: Warehouse vs Distribution Center. This choice impacts cost, speed, and visibility. A warehouse focuses on storage and inventory control for extended periods. On the other hand, a distribution center emphasizes quick processing, packing, and shipping to customers. Grasping these differences is key to better…
Inventory management leaders must choose between ongoing counts or a full snapshot. This choice affects compliance, operational impact, and financial control. The goal is to enhance inventory accuracy, maintain warehouse efficiency, and fulfill reporting needs without unnecessary costs or disruptions. Cycle counting is a continuous process. Teams focus on specific SKUs on set days, often…
For leaders managing tight margins and volatile demand, understanding Just-in-Time (JIT) inventory is critical. This article offers a balanced look at JIT inventory management, backed by evidence from established manufacturing and supply chain sources. It aims to provide practical insights, highlighting the benefits of JIT while also outlining the risks that can impact the United…
The last mile is the most complex and expensive part of the US logistics market. Costs rise due to labor, fuel, and other factors like congestion and emissions. Research from McKinsey and the Baymard Institute highlights these issues. This section outlines the main challenges and how to improve delivery efficiency while keeping customer satisfaction high….
In the United States, supply chain management is built on a foundation of logistics levels. These levels, from 1PL to 5PL, indicate the extent of outsourcing a company undertakes. Each level offers unique logistics solutions and freight management capabilities, tailored to meet growth objectives and service complexity. At the base, 1PL signifies no outsourcing. Here,…