BridgeNet Solutions March 2012 Newsletter

Our March 2012 newsletter contains the latest news on the UPS-TNT merger. How will the merger impact your supply chain? Click here to read the full article.

"Two Things You Need to do Now to Prepare for Supply Chain Growth," an article by Steve Stephens, general manager--finance at BridgeNet Solutions, is also featured. The article recently appeared on BusinessInfoGuide.com.

Lastly, the newsletter points to our last blog post, "4 Ways to Get Better Business Intelligence."

BridgeNet Solutions March 2012 Newsletter

4 Ways to Get Better Business Intelligence

1. Determine your business intelligence (BI) requirements by focusing firstly on the information you will need to eliminate overspending and practice better project management, and secondly, by defining the problems and objectives you will need your BI system to anticipate and manage.

2. Implement an agile BI system that has vast predictive and planning capabilities as well as high-level information management capabilities that can adapt as your requirements change.

3. While pulling information from open sources is important, also look into partnering with a third party that has a proprietary database that has been built up over time and is capable of pulling targeted competitor data and other data specific to your industry.

4. Perform regular queries to determine consumer demands, data elements that should be shared with suppliers, economic trends, and internal strengths and weaknesses.

Using On-Site Surveys to Develop Your Shipping Profile

A key step in defining all of the elements that encompass your company's shipping profile is completing qualitative and quantitive survey questionnaires. To complete these questionnaires, you have to perform individual and group interviews and data gathering and analysis on site. Completing them on site presents certain challenges, but if you take the time to see the questionnaires through to completion, or hire a qualified third party to complete the questionnaires on your behalf, the results can allow you to:

- determine whether or not your company's different locations and departments are conforming to standards and meeting expectations,

- obtain accurate delivery lead times (the times between orders and deliveries),

- determine each shipping location's ability to cope with order quantity changes,

- examine the quality of your current shipment and notification technology and give you the ability to qualify alternatives,

- find out whether or not you have the internal support required to integrate and/or update new technology and processes,

- assess the ease, accuracy, and speed with which your company handles billing, and

- develop a complete understanding of the technical specifications retired to manage, consolidate, and package shipments and their components.

Is Your Data Complete?

A recent article by Bill McBeath of ChainLink Research stresses the importance of spend analysis in all industries, including logistics.

According to McBeath, "What a company can accomplish in their spend analysis efforts is constrained by the quality and completeness of the data available to them. A spend project can uncover data shortcomings that were previously swept under the rug. As a result, the spend analysis effort may have dual tracks: A) implement what you can with what is available, B) work with stakeholders and data owners on initiatives to improve the quality and completeness of source data."

At BridgeNet Solutions, we couldn't agree more. Too often, supply chain visibility technology providers claim to provide total visibility and complete data, and then don't deliver. They provide what they think their customers need instead of working with them to create custom data solutions that actually meet their needs. It's an easy mistake for providers to make, particularly if their software, Web-based dashboard, or other technology solution isn't robust enough to adapt to companies of vastly different types and sizes. In an effort to draw focus away from what they can't do, they focus only on what they can do, and as a result, the customer either winds up with incomplete data or data that doesn't focus on what's really important to their company.

It is critical to work with a provider that is committed to analyzing your company's unique characteristics. Your provider should assess (or enable you to assess) your company's ability to reduce spend by taking your company's unique characteristics, benchmarking them against the data of like companies, and then determining best practices.

Adaptable reporting capabilities are important, too. You should be able to run line item detail reports, audited revenue recovery reports, and other reports pertaining to your logistics networks with just a few clicks of a button.

Our advice? Call us at 312-492-7500 and ask to speak to a sales representative right now. When you work with a partner that can ensure data completeness through its ability to gain a full understanding of your company, you will limit spend not just in certain areas, but in all areas of your logistics network.

BridgeNet Solutions February 2012

Our February newsletter contains Jerry Lucente's article, "A Behind the Scenes Look at Auditing & Reporting," as recently featured in Industrial Distribution, and Steve Stephen's article, "Bill of Lading Errors Impacting Your Base Rates?" recently featured in PARCEL. Our last blog post on the new study releasted by The Hackett Group study is also included.

BridgeNet Solutions February 2012 Newsletter

Study Reveals Volatility is the New Normal

As mega-regions, networks of cities with shared economies, ecosystems, and transportation systems, continue to expand, US companies are increasingly competing with companies in countries with emerging markets.

A new study by the Hackett Group reveals that the majority of today's executives acknowledge that volatily has become the norm in regional global markets. According to The Hackett Group's February 22, 2012 press release, the study suggests that economic and market changes around the world "will require companies to fully understand the benefit that comes from adopting global standards and organizational models that allow optimal execution by leveraging both skill and scale more broadly."

Supply chain technology professionals have been preaching about the need for heightened supply chain visibility for well over a decade. BridgeNet Solutions recognized the need for greater visibility early on, and spent years researching and developing its online visibility dashboard in an effort to enable companies of all kinds to take total control of their transportation spends and create synergies with carriers, suppliers, and other third parties.

The potential ramifications of not ramping up technological capabilities in a time that requires us to be more prepared than ever for extreme economic and market shifts are deeply troubling. BridgeNet is committed to helping companies remain competitive and viable by helping them to optimize their supply chains, gain greater transportation savings, and grow their businesses by employing the most modern supply chain solutions available.

For information on Xonar, BridgeNet's Web-based supply chain visibility dashboard, click here. To download The Hackett Group study for free upon registration, click here.

Dashboards Increasing in Popularity

Dashboards are being used more than ever—and not just for the traditional reasons.

According to a recent article by CFO staff writer Marielle Segarra, "While in the past senior executives might have focused solely on high-level metrics like sales revenue and profitability, they now use dashboards to track operational and tactical metrics, such as how many new accounts sales representatives have acquired in the last quarter."

When it comes to logistics, you can use a dashboard to give you greater visibility of your overall supply chain, control and reduce costs through high-level data analytics, gain a better understanding of your supply chain expenses, monitor each and every shipment, gain access to real-time transportation-related data, make network configurations, gain in-depth market intelligence by comparing your shipping data with competitor data, create custom supply chain solutions, and much more.

Are you getting the most out of your supply chain visibility dashboard? Can you view your each and every shipment in your supply chain 24 hours a day from anywhere in the world? Can you make changes to your company routing guide and enforce internal and external compliance with just a few keystrokes and clicks of the mouse?

Here is our company video. It gives a great overview of some of the capabilities a well-equipped supply chain visibility dashboard can give you.

Build Stronger Carrier Relationships Using KPIs

Do your carriers have a vested interest in complying with the stipulations and service demands outlined in your agreements?

A lack of carrier compliance can render even the most competitive base rates significantly less effectual. It may seem as though requiring carriers to tie into your own logistics network on a deeper level and respond to issues by certain dates might not be the best way to forge good partnerships, but if you go about requiring carriers to comply in the right way, you can actually make your partnerships with them stronger.

BridgeNet recommends using key performance indicators (KPIs) to require a carrier to research charges that were assessed incorrectly or that were carrier-caused. Using KPIs, you can ensure that your carriers will resolve issues within an agreed upon time frame or face certain consequences.

If carriers can base your rates, discounts, and incentives on your volume and other unique characteristics of your company, you should be able to base the promise of your business on the ability of your carriers to comply with the terms outlined in your agreements. KPIs simply ensure that invoicing errors and service issues are addressed in the manner your carriers promised you they would be addressed. When you show your carriers that you are taking greater control of your supply chain by monitoring all costs and sources of inefficiency, you can communicate with them on a deeper level. When you raise the bar, it is much easier to ask your carriers to do the same.

Develop your KPIs independently and then present them to your carriers for further review. Have an honest discussion about wants, needs, and expectations. When parties come together to determine what will work best at both ends, everyone benefits. KPIs lay out all cards on the table for everyone to see. They help you develop a truly transparent supply chain and give you more opportunities to work with your carriers to create new cost-saving solutions.

If you’re not currently using Xonar, BridgeNet’s Web-based dashboard that allows for custom KPIs to be input, monitored, and managed, contact us for a free, no-obligation consultation. When a company is ready to develop and implement a KPI system, time is usually of the essence. Our team will be happy to show you how we can take guesswork out of the process and help you start achieving greater supply chain savings today.

BridgeNet Solutions January 2012 Newsletter

Did you miss out on our January newsletter?

Included in our last newsletter was our January 20th blog post and "Six Cost-Saving Ideas for Mid-Size Manufacturers," tips from the BridgeNet Solutions team.

BridgeNet Solutions January 2012 Newsletter

Are Green Supply Chains Becoming the Norm?

Early last year, results of a study completed by IFS, an ERP technology provider, revealed that "almost 77 percent of manufactures [...] said they are currently required by their customers to report on their environmental impact and that of their products or require their vendors to do so."

More recently, Apple released a "Progress Report" that detailed its supply chain practices, and then distributed it among its suppliers.

Are green supply chains becoming the norm? Perhaps they're not yet the norm, but if more companies like Apple were to release the details of their supply chain processes, one can only assume that more suppliers, partners, and competitors would feel compelled to do the same, and, more importantly, that they would be compelled to run greener supply chains.

A Few Words on Self-Billing from BridgeNet's Niko Michas

Often, the biggest setback companies have when it comes to implementing self-billing is carrier resistance. One thing you can do to combat carrier resistance is automate your billing process.

By automating your billing process, you eliminate the guesswork normally associated with trying to determine the accuracy of your shipping charges. You can uncover the exact charges for all shipments, regardless of mode.

Whether you go through SAP or a third party partner that specializes in creating less costly and more tailored electronic system solutions, your automated system will need to be able to do two things: 1. properly house the shipping data for each and every shipment in your supply chain, and 2. successfully compare your actual shipping charges to those outlined in your carrier agreement and your carrier’s standard rates.

Below are three ways you can leverage the benefits of using an automated billing system to gain more support for self-billing from your carrier:

1. Explain to your carrier that your automated system will help them know exactly when and how much they will be paid because your invoices will be more accurate.
2. Show your carrier how you will be able to pay them in as little as seven days, rather than in 60, 90, or 120 days, as in a normal billing cycle.
3. Prove to your carrier you can lessen their financial burden by eliminating customer service and administrative fees normally associated with auditing.

Self-billing isn’t a new idea, but due to the still questionable state of the current US economy and self-billing’s increasing popularity in Europe, more US-based companies are looking to self-billing not just as an alternative to auditing, but as a way to get faster, bigger returns. Automating your billing system can help persuade your carriers to get on board with your self-billing initiative.

Two New Job Openings at BridgeNet Solutions

Join our team!

BridgeNet is now looking for a qualified SQL developer and experienced project manager. For full job descriptions, visit: http://www.bridgenetsolutions.com/company/Careers.asp.

BridgeNet Solutions December 2011 Newsletter

Did you miss BridgeNet's December 2011 newsletter? Included were our past two blog posts and Managing Partner Mikael Trapper's latest article, "Standards, KPIs, and Carrier Compliance," recently featured in PARCEL. To download Mikael's article in PDF format, click here.

BridgeNet Solutions December 2011 Newsletter

Parcel Industry Trends: 2011 & 2012

As 2011 draws to a close, BridgeNet Solutions continues to work hard to develop plans that generate new savings for its clients. The past year was a memorable one for a number of reasons, including the celebration of BridgeNet's 10th anniversary, but it might also be remembered as a year of significant changes within the shipping industry, and a stepping stone to the changes that are on the horizon.

Looking Back
2011 saw carriers trend towards providing the deeper incentive rates their clients have been requesting, offset by waivers of guaranteed service refunds and fewer agreements including fuel surcharge rate caps. We have also seen an increase in the use of quarterly rebates and deferred tier incentives when shippers agree to higher base rates. We've also seen customers with the largest volume of shipments begin catering to the major carriers' weight capacities, and greater incentives being offered in correlation to the carriers' increase in profit margins. Conversely, if you signed any new agreements in 2011, you may have noticed a second set of published rates called "standard rates," which were roughly 6%-30% higher than the carriers' daily rates and which varied by service level. Last but not least, early termination clauses became a popular means of deterring clients from shopping for better rates before contracts expired.

Looking Ahead
As for 2012, as usual, we can expect general rate increases. Express and air rates are projected to go up, as are ground rates. The increases should be mitigated, however slightly, by reductions in the fuel index. Both UPS and FedEx are looking to expand their operations or are already engaged in the process. UPS recently opened dedicated Health Care Sector distribution centers in Burlington, CA, Venlo, NL, and Singapore. FedEx is looking to expand its intra-country capabilities in the European Union.

How will these changes impact you? To keep your company competitive, you might be forced to consider alternative supply chain options, including utilizing regional carriers. More and more companies are utilizing regional carriers either in place of national carriers or as a way to supplement national carriers' services. Barring certain limitations, regional carriers provide lower and more simplified rate structures as well as fewer add-on charges.

No matter what your supply chain savings goals are for 2012, we are confident that BridgeNet can help. For more information on our solutions, including Xonar, Logistics Expense Analysis, and Carrier Exceptions Management, e-mail us at info@bridgenetsolutions.com or call 312-492-7500 and ask to speak with a BridgeNet sales representative. We've been here for you for the past 10 years, and will continue to be of service to our current clients and new clients in 2012.

Look for BridgeNet's Ad in Crain's!

Watch for our ad in upcoming issues of Crain's Chicago Business!

Standards, KPIs, and Carrier Compliance

Mikael Trapper, managing partner at BridgeNet Solutions, has a new article out in PARCEL. The article, "Standards, KPIs, and Carrier Compliance," makes clear the reasons why key performance indicators (KPIs) will be critical for logistics and supply chain professionals to use in 2012 in order to gain compliance and achieve greater savings. To read the article in full on BridgeNet's website, click here.

Still Using Spreadsheets to Manage Your Supply Chain?

A recent blog post by Michael Koplov on the Warehouse Management Systems Guide website openly discusses the ugly truth about Excel spreadsheets. They're thorns in supply managers' sides, and largely unnecessary.

According to Koplov, there are a couple of alternatives to using spreadsheets to analyze supply chain data and track logistics operations. The one he focuses on most is using "a centralized network of software." This is the solution that BridgeNet most often recommends. The main reason we built Xonar, our network spend data analytics and planning solution, was to fill the dire need in our industry for accurate, real-time information to be accessible by logistics professionals at different levels, company-wide, day or night, the world over. Xonar is Web-based software, which means that any authorized person with Internet access can access their company's cleansed shipping data and create easy-to-read reports at any time.

Like Koplov, BridgeNet recognizes that it can be daunting to think about breaking the spreadsheet habit, but in our experience, we've found that people who make the switch to accessing real-time shipping data via a Web-based platform don't often look back. The advantages it gives them make any arguments for using spreadsheets as main tracking, monitoring, and savings tools almost laughable.

If you're ready to make kicking the spreadsheet addiction your company's New Year's resolution, watch our Xonar video for more information on how BridgeNet might be able to help your organization in 2012. Then, e-mail your inquiries to info@bridgenetsolutions.com. We want to hear from you!

Is There an App for That?

Is it time to trade in the traditional mobile devices and supporting technology that you’ve been using in your warehouses and distribution centers (DCs) with smartphones? As smartphones become more widely accepted and able to perform a larger number of functions, you may be able to incorporate them into your current warehouses and DC operations and cut down on 1. the maintenance that is required with traditional mobile warehouse devices, 2. the need for multiple devices with fewer capabilities, and 3. the amount of time your people have to spend transferring information from one device, location, or station to another.

What do you think? Can smartphones stand up to the rigorous demands of your warehouse or DC? Are there any functions that you would expect them to be unable to perform? What kind of smartphone applications would be most helpful to you throughout your daily operations?

BridgeNet Solutions October 2011 Newsletter

BridgeNet celebrates its 10th anniversary!

Our October newsletter features a review of BridgeNet's progress over the past decade from the perspective of Managing Partner Mikael Trapper. Click here to read the review in its entirety.

Also included in the newsletter is the article by Executive Team Analyst Aaron Samuels on dimensional weight, recently featured in PARCEL.

BridgeNet Solutions October 2011 Newsletter

Can Ten Pounds of Feathers Weigh More than Ten Pounds of Bricks?

Executive Team Analyst Aaron Samuels seems to think so! Check out his article, which recently appeared in PARCEL.

To help illustrate what Aaron's talking about when it comes to dimensional weight, we've come up with this handy-dandy graphic: