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Artificial intelligence and machine learning are deriving new insights from supply chain data that are increasing efficiency, improving decision-making and making operations more resilient. Penske is deploying AI to analyze and adjust operations throughout the supply chain.

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Supply chains are always vulnerable to disruptions, and the increased amount of global and geopolitical uncertainty is introducing new operational challenges that can change by the minute. Flexibility and adaptability are becoming table stakes as shippers and their logistics partners navigate unexpected and often unpredictable changes.

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Data and insights in the 36th Annual Council of Supply Chain Management Professionals (CSCMP) State of Logistics Report® help shippers and carriers plan their business strategy for the remainder of 2025 and beyond.

The 36th Annual State of Logistics report, titled "Navigating Through the Fog," indicates that businesses continue to navigate a continually changing landscape.

Top findings in this year's report include:

  • U.S. business logistics costs are $2.6 trillion, which amounts to 8.7% of the national GDP.
  • The logistics industry recovered in some areas, but was also marked by flat business volumes, excess truck capacity and rising operational costs.
  • E-commerce continues to grow, with global online retail sales nearing $6.3 trillion.
  • Ocean freight transit times, capacity constraints and rate fluctuations have increased due to geopolitical tensions, proposed and enacted tariffs, and shifting trade regulations.
  • Mexico overtook China as the United States’ largest trading partner in 2024. Transactions between the U.S. and Mexico topped at a record $840 billion, a 6% year-over-year improvement.
  • Technology investment continues to be an essential component of the modern supply chain. Data analytics, artificial intelligence as well as robotics and automation are among the headliners supply chain leaders are working on.

For retailers, keeping shelves stocked with the right products at the right time is crucial for maintaining customer satisfaction and maximizing sales. Disruptions in the supply chain — whether from delayed shipments, inefficient transportation or mismanaged inventory — can lead to empty shelves, missed sales and frustrated customers.

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While advances in automation and robotics continue to expand their presence in the supply chain, people remain integral for the foreseeable future.

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In tandem with the challenge of adopting smart manufacturing technology, manufacturers are grappling with the digital disruption of supply chains.

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The movement of goods is being transformed through the power of data-driven insights

An efficient and reliable supply chain gives companies a competitive advantage. Yet shippers and third-party logistics (3PL) providers must be agile to meet the supply chain's increasing level of complexity.

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Shippers rely on their third-party logistics (3PL) partners for a broad range of logistics and supply chain services. To forge a successful relationship, shippers and 3PLs must emphasize data and communication, according to the 23rd Annual Third-Party Logistics Study.

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The 2025 Annual Third-Party Logistics Study reports the results of a survey measuring the satisfaction of shipper and 3PL relationships. This year, the study also explored the level of importance shippers and 3PLs place on change management, artificial intelligence, the direct-to-consumer experience and other contemporary issues in supply chain management.

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Expectations can run high during the holidays and parents are often expected to deliver the must-have toy of the season. Panic sets in if shoppers find the shelves empty, and a misalignment of supply and demand can cause even the most rational gift giver to lose perspective. What’s more, manufacturers and retailers can miss out on huge revenues due to supply shortages.

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Amid a significant merger, a food and beverage ingredients manufacturer faced the challenge of centralizing transportation management processes across business units to control costs and improve efficiency.

With over 30,000 employees and 340 locations across 60 countries, the manufacturer outgrew their previous logistics partner and sought a new partner capable of managing their diverse supply chain needs while also accommodating growth.

Process discipline was a critical component from the very beginning due to the complexities of the merger and the manufacturer’s business model. This included a thorough assessment by Penske Logistics of all trucking carrier sourcing and management needs and a comprehensive rate audit and negotiation to identify potential savings opportunities.

The manufacturer welcomes challenges posed its by customers, but they don’t take chances on their business operations. Meticulous attention to detail is vital for efficient operations, cost-effectiveness and optimal performance in logistics and supply chain management. Penske stepped up to provide the necessary expertise and support to launch the first business unit on an expedited timeline of 90 days.

Navigating a Lot of Supply Chain Change All at Once

Transitioning to a new freight management and supply chain partner presented significant exposure and risk to continuity of service for their customers, especially when it came to establishing new processes regarding contracting and compliance with their previous carrier base. It was critical that there was no lapse in service to their customers or current operations. With this level of expectation, Penske had to demonstrate its ability to add value and earn trust through communication, planning, discipline and project execution.

To ensure a smooth and timely transition without disruption, the right approach was vital. Penske first conducted a thorough Value Stream Mapping exercise to fully understand the business intricacies and discover opportunities to standardize key processes. This approach unveiled specific improvement areas related to carrier management, centralization of systems across business units and overall process management.

Carrier Management

Through disciplined planning and procurement, Penske optimized freight movement, synchronized lead times and managed all carrier interactions, enhancing the manufacturer’s network reliability and reducing costs.

As a customer, the manufacturer benefited from Penske’s carrier management expertise and vast network of qualified carriers. The client requested to transition their existing carrier base, so Penske qualified them, established contracts and negotiated rates on their behalf.

Making an impact from the start, Penske introduced a $1.1M estimated annual savings within the first 90 days through a combination of rate reductions, routing improvements and better carrier selection.

A strategic partnership with Penske Logistics added value to the customer’s operations. With Penske assuming responsibility for carrier management, the client was able to shift focus to core business activities.

Centralized Systems and Increased Visibility

Historically, the manufacturer grew through acquisitions but did not merge systems. Recognizing the client’s need for a centralized solution across business units, Penske consolidated multiple operating systems into one for enhanced efficiency. Each location had been operating differently and independently of each other, leading to inefficiencies. Despite the challenge of merging organizations with disparate systems, combining these technologies brought everything under a single, unified framework.

Penske facilitated a seamless integration under one umbrella, streamlining access to comprehensive metrics, reporting and data analysis tools. To eliminate excessive work for the client, Penske even extracted all the manufacturer’s existing files and fully integrated them into a single platform.

Process Improvement

What differentiated Penske from the competition was the process approach to delivering solutions. Along with disparate systems, the client also had disparate logistics processes across business lines from acquisitions. Given the need to streamline processes, establishing process discipline along with effective communication was paramount.

Penske Logistics established a dedicated operating team and presented a cohesive vision to lay the foundation for future transformation. This collaborative team dynamic is essential as new business lines are launched.

Clear Path Going Forward

As a result of these efforts, cost savings have already been realized and the leadership and support of the operating team earned the trust of the manufacturer.

Penske Logistics built the infrastructure to enable growth and efficiency and set the stage to deploy these solutions within additional business lines. As this partnership evolves, Penske remains dedicated to providing unparalleled support and experience.

Why Penske?

A ripple effect can turn a business upside down with poor attention to detail and lack of expertise. Penske views itself as an extension of our customers’ organizations, and we have what it takes to keep your business moving forward.

Ongoing disruptions, rapidly advancing technology and the need for continual improvement are reshaping the supply chain. The 35th Annual Council of Supply Chain Management Professionals (CSCMP) State of Logistics Report®  uncovered several trends altering the supply chain landscape.

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According to the Office of the U.S. Trade Representative, U.S. goods exports to Mexico in 2022, the latest year for which numbers are available, were $324.3 billion, up 17% from 2021 and 50% from 2012. U.S. goods imports from Mexico totaled $454.8 billion in 2022, up 18.9% from 2021 and 64% from 2012.

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In a supply chain, every decision depends on data, so data integrity is critical. Accurate and timely data ensures supply chain partners hit their targets, comply with internal processes, make informed decisions and streamline processes while controlling costs.

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Third-party logistics providers are now leasing more warehousing space than any other sector amid growing demand for 3PL services. CBRE's 2023 North America Industrial Big Box report found that 3PLs accounted for 41% of all lease transactions at traditional warehouses and distribution centers, with at least 200,000 square feet in 2022, surpassing retailers and wholesalers for the first time on record.

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Sustainability is taking on increased importance as companies respond to consumer trends and preferences, regulatory requirements, and environmental and climate impacts. Organizations are using their supply chains to better align with their environmental, social and governance (ESG) goals.

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The Food Safety Modernization Act (FSMA) is transforming the nation’s food safety system by implementing best practices and requirements designed to prevent foodborne illnesses in consumers. Many of the FSMA provisions relate directly to the supply chain and keeping food and beverage products safe, fresh and enjoyable.

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The supply chain is increasingly complex and demanding, and there is no one-size-fits-all solution for moving freight. In today’s demanding freight environment, shippers are turning to a range of solutions to get the efficiency and agility they need at the optimal price point. Third-party solutions can complement shippers’ in-house capabilities or even other providers if companies source multiple partners.

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