View original at www.logisticsmgmt.com

State of Logistics 2016: Pursue mutual benefit Walmart’s new on-time delivery standards may create supply chain challenges for its suppliers ABF Logistics acquires Logistics & Distribution Services Werner CEO Leathers: TL rates getting back to “equilibrium” after slump UPS announces rate increases More Logistics News 5 Catalysts to Outsource Logistics Today’s consumer-driven retail strategies are making it more difficult than ever to run an efficient, cost-effective supply chain. Consider the following five challenges that supply chain leaders will have to overcome in order to be effective in coming years – and why these challenges are acting as catalysts to engage with third-party logistics providers for supply chain expertise. All Resources Earlier this year, retail behemoth Walmart announced multiple changes to its on time delivery standards for its suppliers that have the potential to significantly impact how these thousands of suppliers approach its supply chain and logistics processes with retailer. Effective February 2017, Walmart is going to require its suppliers (shippers) to meet a two-day shipping window instead of its previous four-day window, as well as up its required compliance rate from 90 percent to 95 percent. In a corporate blog posting, Walmart said that for non-compliant deliveries, its suppliers pay a fee of 3 percent of the cost of goods of all non-compliant deliveries, which has been in effect since 2010. The 3 percent “tax” also applies to suppliers when less than 95 percent of merchandise cases are received within the must arrive by date (MABD) delivery window. But suppliers are not charged it they cancel purchase orders prior to the MABD. The impetus for these types of changes over the years, according to Walmart, is part of an effort to “streamline its supply chain and cut costs,” adding that “stores are no longer acting as warehouses, with too […]