Supply Scan

GDS Improves Supply Chain Efficiencies


SYSCO Corp. plans to construct a broadline foodservice fold-out facility in Longview, TX, to serve restaurants, hospitals, schools, colleges, retirement homes, hotels and other foodservice operations in east Texas and portions of Arkansas and Louisiana.

The complex will include approximately 290,000-square-feet of refrigerated, frozen and dry warehouse space, as well as administrative offices. It is expected to be operational in the first quarter of 2008.

According to Richard Schnieders, SYSCO’s chairman, CEO and president, “The east Texas market is currently serviced by four of our broadline companies. Establishing a local presence in that region will provide market penetration and expense reduction opportunities.”

SYSCO’s fold-out strategy involves building new facilities in an area with an established sales base that has been served by distant SYSCO companies.
The Longview operation is the 18th broadline fold-out facility that Houston-basedSYSCO has announced since first unveiling the strategy in 1995.

Study: Rising Fuel Frieght Costs Prompt Network Improvement

Rising fuel and freight costs are prompting widespread improvements in U.S. logistics networks, according to a recent report released by third-party logistics provider ProLogis and the University of Denver.

The report, Moving Freight Today—How Shippers Are Creating Greater Capacity, Reliability and Rate Stability, is based on interviews with supply chain executives at more than 30 major companies from a variety of industries. Among the findings:

  • Many companies are adding consolidation and deconsolidation centers to their supply chain networks to ensure that freight gets moved in full container and truckloads. These centers serve as freight pooling hubs and, under the right circumstances, can substantially increase efficiency.
  • Companies are “de-coupling” freight costs from product costs. In the past, suppliers paid freight charges and simply added them to their materials invoices. Today, companies are adopting practices that ensure that they receive the best shipping rates available on a consistent basis, through centralized command and control of freight movement.
  • Shippers are working hard to improve collaboration with carriers and other transportation providers, through better forecasting, shorter payment cycles and implementation of two-way operational scorecards.
  • Logistics managers are creating new capacity in their networks by eliminating sources of waste and inefficiency. Techniques include collaborating with other companies to reduce the number of empty trucks on the road and establishing 24/7 work schedules at distribution centers.

For a copy of Moving Freight Today, go to prologisresearch.com/movingfreight.

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