WHAT’S THE WORD
High-touch freight Shipments that require lots of monitoring and care; owers are an example. Perishable freight like owers requires refrigerated trailers and temperature monitoring. Even a few degrees of difference can accelerate deterioration. TIPS Make sure to consider a logistics provider’s tech capabilities when evaluating your options. Look for providers who offer real-time GPS tracking, as well as a sound transportation management system (TMS) so you have a complete view of operations. Additional technology considerations include AI and analytics software, which enable providers to analyze more freight data and nd exible solutions quickly. –James Holloway, Director of Logistics, Werner Composable Commerce An ecommerce approach where manufacturers and suppliers connect disparate best-of-breed software to create a tailored commerce solution For example, businesses can integrate multiple shipping solutions into a web store, giving buyers flexibility to choose their preferred shipping partner. –Arno Ham, Chief Product Ocer, Sana Commerce Most fulfillment and logistics teams prioritize fast-moving SKUs— those that drive the majority of customer demand. But it’s the slow-moving, long-tail inventory that quietly eats away at margins and clogs up networks. At Amazon, we uncovered a pattern: tail SKUs—those in the bottom 20% of demand—were frequently over-distributed across multiple fulfillment regions, resulting in high transportation costs, longer fulfillment miles, and unnecessary complexity. We took a step back, segmented our inventory, and piloted a centralization strategy. If you’re operating a network with more than 3 distribution or fulfillment nodes, you likely have tail inventory leakage too. Here’s how to act: 1. Segment inventory: Go beyond ABC classification. Analyze percentile-based demand and forecast error. 2. Run cost simulations: Model fulfillment miles and replenishment costs across tiers. 3. Pick central nodes: Use historical demand spread to identify ideal stocking points for tail SKUs. 4. Pilot and iterate: Start with 5-10% of your SKUs, validate, and expand. Centralizing low-velocity SKUs can simplify your footprint, cut cost, and unlock flexibility during seasonal and volatile demand cycles. –Debanshu Sharma, Senior Supply Chain Manager, Amazon Disclaimer: The views and strategies expressed in this article are the author’s and do not represent those of his employer. PAY ATTENTION TO: Tail Inventory
The Language of Logistics
Duty vs. Tari
DUTY
TARIFF
DEFINITION
A direct tax applied by a government on goods and services imported from or exported to a dierent country
An indirect tax applied by a government on goods imported from or exported to a dierent country and on some goods produced domestically
DISTINCTION
Taris are charged on imports and exports to protect domestic production, restrict trade from a particular country, and generate revenue for the government.
A duty is charged to the business or consumer for specific commodities, whether domestically produced, imported, or exported goods and services.
SIMILARITY
Both are taxes levied by the government and the income generated goes to the government.
WHO PAYS
The company importing the goods
For customs duty, the importer of record (an individual or business entity). For excise duty, businesses pay and pass the cost on to consumers.
SOURCE: www.thomasnet.com/ insights/duty-vs-tari
TARIFF TALK: What’s Your Mindset? Terms can be revealing:
Tari strategy ...sensitivity ...triage ...approach ...tactic ...protocol ...response
Tari turmoil ...whiplash ...tangle ...escalation ...turbulence ...volatility ...uncertainty
16 Inbound Logistics • July 2025
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