Difficult times create opportunities

By David Bennett
Vice President, Global Logistics Sales, Schneider Logistics International

Difficult operating environment
This week I had the privilege of joining colleagues in the historic city of Charleston, South Carolina to speak at the 36th Annual South Carolina Trade Conference. Over the years, I have always considered this to be one of the most productive trade conferences in the industry. It is well-attended by shippers as well as fellow service providers and held in one of the most historic cities in our nation.

Trade conferences are certainly struggling to keep attendance up during this difficult economic period while most companies are focused on cutting costs. We all understand the urgency to keep costs under control, but it is also very important to keep logistics’ staffs educated and informed on critical issues impacting our industry. The Clean Truck Program, The Lacey Act, 10+2 requirements and free trade agreements all impact the flow of cargo throughout the supply chain and are critical issues that require more attention from everyone associated with the international movement of goods.

One speaker stated that the extra cost to the shippers associated with meeting the 10+2 requirements would be close to $700 million annually! When new policies are being implemented that are as complex as these issues, it is critical that logistics professionals remain up to speed and educated on the changes that will be reflected in their financial statements in some form.

During these conferences, logistics professionals have the opportunity to catch up with old friends or colleagues that they may have lost touch with over the years. As I networked, I would ask about “so and so.” “Why aren’t they here this year and how are they doing?” “How’s business?”

Some of the responses surprised me, but as I thought about it on my drive back home, I realized that these difficult times really can create new and exciting opportunities.

Opportunities
Many people commented, “Our department budget has been cut by 25 to 30 percent, we are doing the same amount of work with less people and less money allocated against our budgets. Even with these reductions in staff and budgets, we must continue to move our goods throughout the supply chain, and service can’t be compromised for cost.”

That’s a challenge — cutting cost without sacrificing service — but that’s also an opportunity.

How often do you find yourself following a process that has been in place for months or years and you never stop to ask “Is there a better way? Can we do this more effectively without spending more money?” That commercial with the “Easy Button” comes to mind; unfortunately it doesn’t exist in the real world, so we need to find alternative solutions.

Conferences such as the South Carolina International Trade Conference are great opportunities to learn and network with other industry professionals facing the same challenges you have. My focus during the presentation was geared towards trends in the market and the advantages of having a bundled solution in terms of flowing goods through the supply chain.

Think about that as you ponder ways to find more savings in your supply chain – where are you potentially wasting valuable resources? As logistics staffs continue to be reduced in size during these difficult economic times, is there value to partnering with a company that can provide you with a single point-of-contact throughout the world? What happens to your cost when you synchronize your international and domestic transportation with a bundled solution? How can you reduce inventory holding costs and ensure the product is on the shelf for the consumer?

I am convinced that difficult times do create opportunities by forcing us to think outside the box. What’s important is that, regardless of a company’s financial performance, we have to push ourselves to find new solutions that will benefit our organizations.

I am afraid that too many companies have opted to push that “Easy Button” instead of accepting changes that would improve cargo flow and save valuable funds necessary to expand organizations.

In This Issue

News, Trends & Analysis
New Items

One big reason for a weak global trade outlook

Supply Chain
Public-private partnerships:
Inviting others to the table

Keeping your cargo cool

Compliance Corner: What you need to know about export commodity control numbers

Supply Chain product review
Communication technologies

Features
Gateway at a glance – Latin America

U.S. domestic shipping looks ahead

Ports & infrastructure
East Coast ports and terminals moving dirt, doing deals

Port Product Review
Refrigeration technologies

Commentary
Difficult times create opportunities

Who, What, Where, When

Final Say