Inbound Logistics | July 2024

CHECKINGIN Is Your Enterprise Flexible Enough To Scale?

Vol. 44, No. 7 July 2024 THE MAGAZINE FOR DEMAND-DRIVEN ENTERPRISES www.inboundlogistics.com

STAFF PUBLISHER Keith G. Biondo

publisher@inboundlogistics.com

S upply chain scalability is important and here’s one reason why. In 1950, 80 cities in the world had a population of more than one million; today, it’s 500 cities. In 1950, the world population was 2.5 billion people; the current world population is more than 8 billion people. Given this growth in population, and in urban areas, how is it possible that the transportation, logistics, and supply chain sector was able to track and serve the consumption needs of all those people?

EDITOR Felecia J. Stratton

editor@inboundlogistics.com

SENIOR EDITOR Katrina C. Arabe

karabe@inboundlogistics.com Amy Roach amy.roach@thomasnet.com

DIRECTOR OF STRATEGIC CONTENT

CONTRIBUTING EDITORS June Allan Corrigan • Merrill Douglas Tom Gresham • Karen M. Kroll • David Levine Mary Shacklett • Gary Wollenhaupt CREATIVE DIRECTOR Jeof Vita jvita@inboundlogistics.com DESIGNERS Nicole Estep Arlene So DIGITAL DESIGN MANAGER Amy Palmisano

Keith Biondo, Publisher

Several advances played a pivotal role: Global investment in transportation infrastructure, inexpensive energy sources, Malcom McLean’s containerization concept, rapid development of new and better transportation equipment, the evolution of pure-play carriers into logistics solutions providers, and successive waves of new transportation technologies and communications methods. At the enterprise level, one sure way to scale is having the right philosophy. A demand-driven supply chain, for example, aligns demand from your customers to your supply. Your vendors re up your ability to scale to meet massive production and fulllment demand increases driven by population growth. If there’s one thing we’ve learned, especially during the past few years, it’s that business process scalability is important for other types of scalability: • Horizontal scalability , which involves building out new services, products, and customer locations serving lateral growth. • Vertical scalability, which takes two forms. The obvious one is where you must scale up to meet increasing demand. But, sometimes there’s a requirement to scale down in keeping with demand fall-off like many see today. How can you scale down and limit the pain without cutting into the bone or choking the enterprise? Those with demand-driven enterprise practices have a management advantage. In many cases, logistics and fulllment partnerships with 3PLs can be a force multiplier when markets turn down. 3PLs can provide: Flexible capacity to meet both transportation and warehousing service needs. The latest technology without investment or the need for qualied staff to build your own. Theoretical and management advice. A skilled thought-leading 3PL who specializes in mastering the latest supply chain developments and concepts can help you keep up with constantly shape-shifting customer demands without draining your P&L statement. Scalability is important. In this annual Third-Party Logistics edition, you will nd partners and resources to ensure your enterprise is exible enough to scale.

apalmisano@inboundlogistics.com

PUBLICATION MANAGER Sonia Casiano

sonia@inboundlogistics.com

CIRCULATION DIRECTOR Carolyn Smolin

SALES OFFICES PUBLISHER: Keith Biondo

212-629-1560 FAX: 212-629-1565 publisher@inboundlogistics.com WEST/MIDWEST/SOUTHWEST: Harold L. Leddy

847-881-6104 FAX: 847-305-5890 haroldleddy@inboundlogistics.com Marshall Leddy

612-234-7436 FAX: 847-305-5890 marshall@inboundlogistics.com DIRECTOR, NEW PRODUCT DEVELOPMENT & MARKETING, SOUTHEAST/MIDWEST/ECONOMIC DEVELOPMENT:

Joseph Biondo 516-578-8924 jbiondo@inboundlogistics.com NORTHEAST: Rachael Sprinz 212-629-1562 FAX: 212-629-1565 rachael@inboundlogistics.com MEXICO & LATAM: Guillermo Almazo 305-833-5372 mexico@inboundlogistics.com FREE SUBSCRIPTIONS bit.ly/ILDigital

Inbound Logistics supports sustainable best practices. Our mission is rooted in helping companies match demand to supply, eliminating waste from the supply chain. This magazine is printed on paper sourced from fast growth renewable timber.

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8 Inbound Logistics • July 2024