If you have used CSCMP?s Supply Chain Management Process Standards handbook in the past, then you know that it can be a valuable tool for improving core processes and overall performance.
To make that tool even better, CSCMP has revamped the Standards in a second edition that merges its structure with the APQC Process Classification Framework (PCF). APQC is a nonprofit that helps organizations benchmark and improve their processes and performance. Its Process Classification Framework is a high-level, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint.
The first edition of CSCMP?s Standards provided a comprehensive reference guide for logistics and supply chain processes. By revising the standards to work in conjunction with the PCF, the second edition enables companies to perform even better supply chain benchmarking.
The revised standards address the growing need for supply chain professionals to determine which processes and attributes are essential to their industries and competitive strategies. The handbook helps supply chain professionals focus their energies on achieving best practices in these processes while maintaining minimum standards in other areas.
It?s important to identify potential gaps across a broad spectrum of your supply chain processes as well as to recognize where your strengths and weaknesses lie. The Standards handbook allows you to focus attention on those areas where improvement efforts drive the most benefit. It also helps you share and compare (with discretion) these results with other organizations in your supply chain to improve overall effectiveness.
The second edition of CSCMP?s Supply Chain Management Process Standards, written by the consulting firm Supply Chain Visions, costs US $99.95 for members and US $139.95 for nonmembers. It can be purchased in the ?Bookstore? section of CSCMP?s website.
New! Updated Process Standards Workshop
In tandem with publishing a revised version of its Supply Chain Management Process Standards handbook, CSCMP is launching a two-day workshop: ?The New Process Standards: Assess. Implement. Improve.? The next workshop is scheduled for November 16-17, 2009, in Lombard, Illinois, USA.
Hot off the press: The Handbook of Supply Chain Costing
Supply chain management offers great potential to increase performance and reduce costs. But despite making major strides in integrating their supply chains, executives have achieved just a fraction of the potential savings available. Supply chain costing can provide the next big breakthrough that will help companies achieve a higher level of value creation.
CSCMP?s new book, The Handbook of Supply Chain Costing, was developed to assist supply chain executives in expanding their visibility and management of cost information. Written by Terrance L. Pohlen and Thomas P. Klammer of the University of North Texas and Gary Cokins of SAS Institute, the book says that to achieve the full potential of supply chain management, executives require a much broader view of costs than is available through their existing cost management systems. They need to improve their internal cost information and extend their ?line of sight? to include their trading partners? costs—both upstream and downstream.
This argument is supported by research on more than 20 companies representing a wide range of industries. Recognized as leaders in supply chain management, cost management and control, and collaboration, all of these firms had a clear vision of what they sought to achieve, yet none had fully completed the process. The book uses their journeys as a roadmap for others.
Drawing from this research, the authors provide a foundation for conducting supply chain costing and address issues common to all supply chains and costing efforts. The book then helps supply chain professionals tailor the process to their own circumstances and costing needs.
The Handbook of Supply Chain Costing can be purchased in CSCMP?s Bookstore for US $79.95 for members and US $109.95 for nonmembers.
CSCMP webinars offer affordable education
When times are tough, travel budgets often suffer. But that?s no reason to put your professional education on hold. CSCMP is continuing to develop a full slate of webinars that address pressing industry problems and trends, which you can attend for a fraction of the cost of most executive education courses or conferences.
The sessions may be virtual, but attendees won?t completely lose the give-and-take that makes in-person events so valuable. Because the webinars are broadcast live, you?ll have the opportunity to pose questions and offer comments just as you would during a traditional seminar.
Each of these virtual presentations has met CSCMP?s rigorous educational standards, so quality is guaranteed. For the next scheduled webinar, Bill Hardgrave of the University of Arkansas will examine how to deploy RFID to solve business problems and receive a payback on that investment. The virtual presentation will occur on November 18, 2009, at 11:00 am CST. Click here for more information.
You?ve read their words, now hear them speak ...
You now have the opportunity to hear some of the authors of Supply Chain Quarterly articles discuss their thought-leading research and ideas. On October 8, CSCMP?s Supply Chain Quarterly will post video interviews with the authors of some of its best-read articles. Filmed on location at the CSCMP Annual Global Conference in Chicago, the videos will feature presenters from the ?Highlights of Supply Chain Quarterly? track:
Chuck Taylor of Awake! Consulting on how companies should prepare for the next round of oil price hikes;
Stephen Cain of Groenewout Consultants & Engineers on multilayered distribution in Europe;
Ted Schaefer of Profit Point on how to manage the twin goals of profitability and sustainability;
Douglas Lambert of The Ohio State University on how you can determine which of your customers are most profitable;
Brad Sampson of XCD Performance Consulting on when in-sourcing is the right decision for a company; and
Joseph Martha of Booz Allen Hamilton on how to determine a supply chain?s carbon footprint.
To view the video interviews, visit our Video section starting on October 8.
New Jersey is home to the most congested freight bottleneck in the country for the seventh straight year, according to research from the American Transportation Research Institute (ATRI), released today.
ATRI’s annual list of the Top 100 Truck Bottlenecks aims to highlight the nation’s most congested highways and help local, state, and federal governments target funding to areas most in need of relief. The data show ways to reduce chokepoints, lower emissions, and drive economic growth, according to the researchers.
The 2025 Top Truck Bottleneck List measures the level of truck-involved congestion at more than 325 locations on the national highway system. The analysis is based on an extensive database of freight truck GPS data and uses several customized software applications and analysis methods, along with terabytes of data from trucking operations, to produce a congestion impact ranking for each location. The bottleneck locations detailed in the latest ATRI list represent the top 100 congested locations, although ATRI continuously monitors more than 325 freight-critical locations, the group said.
For the seventh straight year, the intersection of I-95 and State Route 4 near the George Washington Bridge in Fort Lee, New Jersey, is the top freight bottleneck in the country. The remaining top 10 bottlenecks include: Chicago, I-294 at I-290/I-88; Houston, I-45 at I-69/US 59; Atlanta, I-285 at I-85 (North); Nashville: I-24/I-40 at I-440 (East); Atlanta: I-75 at I-285 (North); Los Angeles, SR 60 at SR 57; Cincinnati, I-71 at I-75; Houston, I-10 at I-45; and Atlanta, I-20 at I-285 (West).
ATRI’s analysis, which utilized data from 2024, found that traffic conditions continue to deteriorate from recent years, partly due to work zones resulting from increased infrastructure investment. Average rush hour truck speeds were 34.2 miles per hour (MPH), down 3% from the previous year. Among the top 10 locations, average rush hour truck speeds were 29.7 MPH.
In addition to squandering time and money, these delays also waste fuel—with trucks burning an estimated 6.4 billion gallons of diesel fuel and producing more than 65 million metric tons of additional carbon emissions while stuck in traffic jams, according to ATRI.
On a positive note, ATRI said its analysis helps quantify the value of infrastructure investment, pointing to improvements at Chicago’s Jane Byrne Interchange as an example. Once the number one truck bottleneck in the country for three years in a row, the recently constructed interchange saw rush hour truck speeds improve by nearly 25% after construction was completed, according to the report.
“Delays inflicted on truckers by congestion are the equivalent of 436,000 drivers sitting idle for an entire year,” ATRI President and COO Rebecca Brewster said in a statement announcing the findings. “These metrics are getting worse, but the good news is that states do not need to accept the status quo. Illinois was once home to the top bottleneck in the country, but following a sustained effort to expand capacity, the Jane Byrne Interchange in Chicago no longer ranks in the top 10. This data gives policymakers a road map to reduce chokepoints, lower emissions, and drive economic growth.”
It’s getting a little easier to find warehouse space in the U.S., as the frantic construction pace of recent years declined to pre-pandemic levels in the fourth quarter of 2024, in line with rising vacancies, according to a report from real estate firm Colliers.
Those trends played out as the gap between new building supply and tenants’ demand narrowed during 2024, the firm said in its “U.S. Industrial Market Outlook Report / Q4 2024.” By the numbers, developers delivered 400 million square feet for the year, 34% below the record 607 million square feet completed in 2023. And net absorption, a key measure of demand, declined by 27%, to 168 million square feet.
Consequently, the U.S. industrial vacancy rate rose by 126 basis points, to 6.8%, as construction activity normalized at year-end to pre-pandemic levels of below 300 million square feet. With supply and demand nearing equilibrium in 2025, the vacancy rate is expected to peak at around 7% before starting to fall again.
Thanks to those market conditions, renters of warehouse space should begin to see some relief from the steep rent hikes they’re seen in recent years. According to Colliers, rent growth decelerated in 2024 after nine consecutive quarters of year-over-year increases surpassing 10%. Average warehouse and distribution rents rose by 5% to $10.12/SF triple net, and rents in some markets actually declined following a period of unprecedented growth when increases often exceeded 25% year-over-year. As the market adjusts, rents are projected to stabilize in 2025, rising between 2% and 5%, in line with historical averages.
In 2024, there were 125 new occupancies of 500,000 square feet or more, led by third-party logistics (3PL) providers, followed by manufacturing companies. Demand peaked in the fourth quarter at 53 million square feet, while the first quarter had the lowest activity at 28 million square feet — the lowest quarterly tally since 2012.
In its economic outlook for the future, Colliers said the U.S. economy remains strong by most measures; with low unemployment, consumer spending surpassing expectations, positive GDP growth, and signs of improvement in manufacturing. However businesses still face challenges including persistent inflation, the lowest hiring rate since 2010, and uncertainties surrounding tariffs, migration, and policies introduced by the new Trump Administration.
As U.S. businesses count down the days until the expiration of the Trump Administration’s monthlong pause of tariffs on Canada and Mexico, a report from Uber Freight says the tariffs will likely be avoided through an extended agreement, since the potential for damaging consequences would be so severe for all parties.
If the tariffs occurred, they could push U.S. inflation higher, adding $1,000 to $1,200 to the average person's cost of living. And relief from interest rates would likely not come to the rescue, since inflation is already above the Fed's target, delaying further rate cuts.
A potential impact of the tariffs in the long run might be to boost domestic freight by giving local manufacturers an edge. However, the magnitude and sudden implementation of these tariffs means we likely won't see such benefits for a while, and the immediate damage will be more significant in the meantime, Uber Freight said in its “2025 Q1 Market update & outlook.”
That market volatility comes even as tough times continue in the freight market. In the U.S. full truckload sector, the cost per loaded mile currently exceeds spot rates significantly, which will likely push rate increases.
However, in the first quarter of 2025, spot rates are now falling, as they usually do in February following the winter peak. According to Uber Freight, this situation arose after truck operating costs rose 2 cents/mile in 2023 despite a 9-cent diesel price decline, thanks to increases in insurance (+13%), truck and trailer costs (+9%), and driver wages (+8%). Costs then fell 2 cents/mile in 2024, resulting in stable costs over the past two years.
Fortunately, Uber Freight predicts that the freight cycle could soon begin to turn, as signs of a recovery are emerging despite weak current demand. A measure of manufacturing growth called the ISM PMI edged up to 50.9 in December, surpassing the expansion threshold for the first time in 26 months.
Accordingly, new orders and production increased while employment stabilized. That means the U.S. manufacturing economy appears to be expanding after a prolonged period of contraction, signaling a positive outlook for freight demand, Uber Freight said.
The surge comes as the U.S. imposed a new 10% tariff on Chinese goods as of February 4, while pausing a more aggressive 25% tariffs on imports from Mexico and Canada until March, Descartes said in its “February Global Shipping Report.”
So far, ports are handling the surge well, with overall port transit time delays not significantly lengthening at the top 10 U.S. ports, despite elevated volumes for a seventh consecutive month. But the future may look more cloudy; businesses with global supply chains are coping with heightened uncertainty as they eye the new U.S. tariffs on China, continuing trade policy tensions, and ongoing geopolitical instability in the Middle East, Descartes said.
“The impact of new and potential tariffs, coupled with a late Chinese Lunar New Year (January 29 – February 12), may have contributed to higher U.S. container imports in January,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “These trade policy developments add significant uncertainty to global supply chains, increasing concerns about rising import costs and supply chain disruptions. As trade tensions escalate, businesses and consumers alike may face the risk of higher prices and prolonged market volatility.”
New York-based Cofactr will now integrate Factor.io’s capabilities into its unified platform, a supply chain and logistics management tool that streamlines production, processes, and policies for critical hardware manufacturers. The combined platform will give users complete visibility into the status of every part in their Bill of Materials (BOM), across the end-to-end direct material management process, the firm said.
Those capabilities are particularly crucial for Cofactr’s core customer base, which include manufacturers in high-compliance, highly regulated sectors such as defense, aerospace, robotics, and medtech.
“Whether an organization is supplying U.S. government agencies with critical hardware or working to meet ambitious product goals in an emerging space, they’re all looking for new ways to optimize old processes that stand between them and their need to iterate at breakneck speeds,” Matthew Haber, CEO and Co-founder of Cofactr, said in a release. “Through this acquisition, we’re giving them another way to do that with acute visibility into their full bill of materials across the many suppliers they work with, directly through our platform.”
“Poor data quality in the supply chain has always been a root cause of delays that create unnecessary costs and interfere with an organization’s speed to market. For manufacturers, especially those in regulated industries, manually cross-checking hundreds of supplier communications against ERP information while navigating other complex processes and policies is a recipe for disaster,” Shultz said. “With Cofactr, we’re now working with the best in the industry to scale our ability to eliminate time-consuming tasks and increase process efficiencies so manufacturers can instead focus on building their products.”