Transportation & Logistics International - Spring 2017 - 8

Automated Systems
Spring 2017

// Automated systems also can help manufacturers
measure and diminish the environmental impact
of end-to-end supply chains.

panies to factor the end-to-end supply
chain into estimates of the time and
cost of both production and delivery
of goods. A manufacturer with 30
factories stretched across the United
States, for example, can consider the
location of its suppliers and customers
when estimating both costs and project
timelines. It can help aggregate orders
to create efficiencies, streamlining the
production of red widgets for three
customers and orange for three other
customers, for example. Or it can pool
regional orders together to take advantage of zone skipping.
These kinds of insights can help
companies not only lower costs to onetenth of a cent, but they also cut down on
the daily workplace frustration. When
trucks don't show up on schedule, transportation managers don't need to scramble to find cost-effective replacements.
The automated system provides a
list of available options, capacities,
costs and timelines. Trucks in a fleet
also can be outfitted with GPS devices

8

TLIMAGAZINE.COM SPRING 2017

to improve predictability. All of these
efficiencies convert into better prices,
better turnarounds and more reliable
services for customers.
* Sustainability -Automated systems
also can help manufacturers measure
and diminish the environmental impact
of end-to-end supply chains. This area of
analysis has grown in prominence over
the past decade, and I expect that trend to
continue and even accelerate, as manufacturers try to rein in a 45 percent surge
of freight activity that the U.S. Environmental Protection Agency projects could
occur by 2040.
"The good news is that freight transportation is one area where proven
technology, policy and operational
strategies exist to reduce fuel consumption, greenhouse gas emissions and
climate risk while still achieving sustainable economic growth," an agency
fact sheet states.
Large publicly-held companies
routinely tout progress on this front in
customer-facing forums. Technology

company HP, for example, in 2008 became the first company to put the U.S.
Environmental Protection Agency's
SmartWay logo on retail packaging.
This was a display of the company's
commitment to reducing the size of its
carbon footprint.
American retail giant Walmart, which
is also a SmartWay participant, last year
told investors that it had shaved $1 billion from its transportation bill and also
reduced its carbon emissions by 650,000
metric tons.
Shippers can make gains in this area
while also saving money and keeping
customer prices in check. Optimizing
routes, delivering direct-to-stores rather
than to centralized warehouses and also
localizing production will reduce emissions. Steps can also be taken to reduce
the size and weight of packaging.
Sustainability metrics are no longer
just feel-good numbers. Increasingly,
buyers demand insights that will help
them both understand and minimize the
environmental impact of the products
they stock.
"It's been said that 'supply chain is
strategy,' and that's true," Walmart CEO
Doug McMillon wrote in the company's
2016 Global Responsibility Report. "It's
our opportunity to get things to customers in a timely, cost-effective and
sustainable way.
"The individual choices we make
along the supply chain greatly impact
the future for all of us," he wrote. "So
what was once largely about our own operations has shifted into helping rewire
whole systems."
Tony Donofrio, principal and head of Argo
Consulting's supply chain practice, has more
than 30 years of supply chain experience.
He has a reputation for taking on tough challenges, creating growth opportunities and
outperforming the competition. Learn more
at www.argoconsulting.com.


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Table of Contents for the Digital Edition of Transportation & Logistics International - Spring 2017

Table Of Contents
Transportation & Logistics International - Spring 2017 - Cover1
Transportation & Logistics International - Spring 2017 - Cover2
Transportation & Logistics International - Spring 2017 - 1
Transportation & Logistics International - Spring 2017 - Table Of Contents
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Transportation & Logistics International - Spring 2017 - Cover3
Transportation & Logistics International - Spring 2017 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue4
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue4A
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue3
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue3a
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue2b
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue2a
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol8issue1a
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue4
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http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_vol7issue1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017fall_vol2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017fall_vol1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017summer
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017spring
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2017winter
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016fall
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016summer_vol1
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016summer_vol2
http://www.nxtbook.com/nxtbooks/knighthouse/tli_2016spring
http://www.nxtbook.com/nxtbooks/phoenix/tli_2016winter
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015fall_v2
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015fall
http://www.nxtbook.com/nxtbooks/phoenix/tli_2015summer
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http://www.nxtbook.com/nxtbooks/phoenix/tli_2014fall
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http://www.nxtbook.com/nxtbooks/phoenix/tli_2013fall
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http://www.nxtbook.com/nxtbooks/phoenix/tli_2012fall
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