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Navigating the Complexities of Supply Chain and Logistics
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Justin Smith welcomes John Haber, Chief Strategy Officer at Transportation Insight Holding Company to discuss the intricate world of supply chain and logistics, shedding light on the challenges faced by executives in the e-commerce and shipping sectors. Drawing from his extensive experience, John shares insights into the evolving landscape, touching on issues such as inventory management, rising shipping costs, and the importance of risk management strategies. The conversation also delves into the often-overlooked nuances of dealing with major carriers like UPS and FedEx, highlighting contractual pitfalls and the need for careful navigation in a dynamic pricing environment.
Highlights:
- Background and Experience: John Haber's journey from corporate finance at UPS to founding a supply chain consulting business.
- Challenges in the Supply Chain: Insights into the challenges faced by executives, including inventory management, shipping costs, and risk management.
- UPS Perspective: Understanding the dynamics of UPS profitability and the shift towards helping shippers optimize their contracts.
- Industry Trends: The impact of global events like the COVID-19 pandemic on supply chain dynamics and the rise of reshoring.
- Top Challenges: Inventory management, rising shipping costs, and the importance of risk management and diversification strategies.
- Inflation and Cost Control: The influence of inflation on pricing within the supply chain and the emphasis on cost control in a slow sales year.
- Modal Optimization: Balancing different shipping modes based on inventory levels and analyzing cost implications.
- Network Optimization: The importance of selecting the right warehouse size and location based on inventory and shipping needs.
- Parcel Shipping: The complexity of outbound parcel shipping and the competition among carriers for last-mile delivery.
- Contractual Considerations: Cautionary advice on carefully reviewing carrier contracts to navigate penalty clauses, minimum commitments, and dynamic pricing.
- Dynamic Pricing: The shift towards dynamic pricing in carrier agreements and the challenges of staying updated.
- Continuous Management: Emphasizing the dynamic and continuous nature of supply chain management, requiring constant attention and adaptation.
Episode Resources:
Connect with John Haber
Connect with Justin Smith
jbsmith@leeirvine.com
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