Like all specialties in logistics there are often blurred lines between disciplines but there are key differences between Freight Forwarders and Customs Brokers that are important to understand.

Photo by Glyn Lowe

Freight Forwarders focus on the movement of cargo from one country to another by either sea or air serving as a middleman between the shipping lines and air freight companies helping the importer/exporter to book space and to receive and load cargo. Freight forwarders also specialize in advising importers/exporters on freight costs, port charges, consular fees, costs of special documentation, insurance costs, and handling fees.

Customs Brokers on the other hand traditionally serve as agents of the importers/exporters providing their expertise in the clearance or “clearing” of goods through international customs checkpoints. As you can imagine customs clearance is a very technical and high regulated activity focusing on the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed; or the refund, rebate, or drawback thereof.

It’s also important to understand that there are also firms which offer both freight forwarding and customs brokerage services. In these cases, these firms will typically have completely separate team/departments handling these activities due to the differences in the skill sets and expertise needed.

Image credit: Alberto G.

Whether you are a seasoned logistics practitioner or an undergraduate student working towards a degree in logistics it is always valuable to stay up to date on the latest trends in logistics and supply chain management.

In order to advance your career in logistics it is important to first master the fundamentals and then continue to evolve by reading/exploring more challenging concepts and trends and look for opportunities innovate within your organization.

For those looking for some good books and resources to get started we’re happy to share our new list of some of the Best Logistics Books available out there today. Check it out here

Chicago is well known as one of the most important logistics and transportation hubs in the United States. With its superior access to all major modes of transportation and its central location and proximity to one of the largest metropolitan areas in the country it has long been a sought after location for distribution hubs.

Image credit: Seth Anderson

Trucking Services
With 6 interstate highways that cross the region, connecting both east and west for more than 2,000 miles there are only two states in the US that have more interstate highway miles than Illinois. (California and Texas) Chicago is also conveniently located within a day’s drive of 70 percent of the country’s population making it a very common location for companies to locate their main distribution centers and is home to most of the country’s leading logistics companies in at least some capacity.

Rail Transport
Chicago is home to six of the seven major railroads and more than 50 railroads in total, accounting for a quarter of all rail traffic in the US.

Water Transport
Chicago is one of the largest inland cargo ports in the country and is the world’s third-largest handler of shipping containers (after Hong Kong and Singapore) with the Port of Chicago

Air Transport
86 million passengers and nearly 1.6 million tons of cargo pass through Chicago annually with two highly trafficked airports in O’Hare and Midway.

Warehousing and Distribution
With more than 1.3 billion square feet of warehouse property, Chicago easily has one of the largest concentrations of industrial space in the United States. As with any major metropolitan area, the costs of maintaining a physical distribution center in Chicago proper tend to be prohibitive so it is very common for companies to locate their distribution centers in the suburbs of Chicago as part of what locals call “Chicagoland.” It is also not uncommon for distribution centers to be located as far away as Indiana.

There is no question that over the years there are a number of different key cities in the US that can lay claim to being one of the most important from a logistics perspective at a particular moment in time but from a strategic level Chicago will endure as one of the top markets that just about anyone working in the logistic and supply chain function will end up engaged with at least on some level one way or another.

Technology continues to change the supply chain in profound ways, as mobile and wireless technologies take root in everyday work streams and innovative approaches to warehouse management emerge.

Learn about the top 10 logistics and supply chain trends that are changing the way logistics companies do business in this new white paper from Intermec.

Drawing on over 40 years of experience, the Intermec team has identified the top technology trends in mobile, industrial and supply chain environments. Learn how they apply to supply chain operations and hear results from users who have adapted the technologies to improve their businesses.

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The supply chain is facing volatility on a scale and level of complexity almost never seen before.

IBM has recently released a new white paper covering the latest developments in inventory optimization technology, including a look at how leading consumer products companies use next generation inventory management tools to minimize working capital, improve inventory positioning and management, redesign network stocking nodes, and improve customer service and overall profitability.

To learn more about smart inventory planning strategies for evolving your supply chain, get your copy of this informational whitepaper free from IBM.

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It’s been an interesting year in logistics with continued advancements in logistics software in it’s move into the cloud and logistics companies expanding and innovating on their approach to supply chain management. In this move forward organizations are continuing to look for creative solutions to their warehousing, transportation and logistics challenges.

When companies go about selecting the ideal number and location of distribution warehouses, there will always be a compromise between the limitations and costs of transportation vs. minimizing the distance needed to travel for goods. Whether using a direct delivery or hub and spoke distribution model finding the right location to best serve your customers is critical to success.  The following is our list of the top logistics markets of 2012 as selected by Logistics List readers.

1. Illinois

With the third largest metropolitan area in the US in the Chicagoland area with more than 9.5 million people it is an ideal mid-point in the country for distribution. Chicago is home to the Belt Railway the largest intermediate switching terminal railroad in the United States serving just about every railroad through Chicago and has a comprehensive highway infrastructure making it a hotbed for trucking services with 23 interstate highways in Illinois in which commercial trucking accounts for 60% of all traffic.

2. California

As the largest state in the country in terms of population with ideal access to the Port of Los Angeles and the Port of Long Beach, extensive air cargo facilities, and multiple large metropolitan areas such as Los Angeles and San Francisco, it’s no surprise that California continues to be a favorite location for logistics services.

3. Texas

With Houston which is the 5th largest metropolitan area with over 6 million people and its Port of Houston which is the second busiest port in the US in terms of Ocean Freight and Dallas which is 8th most populated city in the US with a strength in both transportation and rail; Texas is a state to look at closely. Its proximity to Mexico and extensive interstate system make it a desirable location for a distribution center.

4. Georgia

Atlanta continues to evolve into a vital logistics hub with national prominence. Atlanta is one of only five cities in the U.S. served by three major interstate highways. It also has a coveted rapid rail station inside an airport terminal. Atlanta is called home to more than 75 Class-A scheduled motor carriers and more than 2,000 irregular intrastate route carriers, contract haulers and commodity carriers. With more than 5 million people it is the 9th most populous metropolitan region in the US.

5. Florida 

The Panama Canal expansion project underway will allow the Canal to accept ships nearly twice the size of current capacity allowance. This could likely transform the US port system from what we we know it today and Florida has the potential to become one of the most important logistics hubs in the country. With its 15 public seaports, cargo activities account for almost 9% of Florida’s GDP. Miami, Jacksonville, and Orlando were the three most sought after metropolitan areas from a logistics standpoint this year.

The last 5 of the top 10 for 2012 was 6. New Jersey, 7. Tennessee, 8. New York, 9. North Carolina, and 10. Washington.

Looking for a Logistics Company? Check out our guide

Reverse logistics is a niche service commonly provided by specialized logistics companies. While it is definitely possible for a typical third party logistics provider to provide some level of reverse logistics, this is a particular niche that some logistics companies focus exclusively on.

So what is reverse logistics? Quite simply it is any logistics process or management that takes place after the sale of product.

Examples of Reverse Logistics Services Include:

• Returns Processing
• Return Center Management
• Return to Vendor Management
• Flow Management of Returned Product (retailer to vendor)
• Product Recall Management
• Product Recycling
• Test, Repair and Refurbishment Operations
• Product Inspection, Repair and Testing for Resale

A more detailed definition of reverse logistics

“Reverse logistics is the process of planning, implementing, and controlling the flow of raw materials, in-process inventory and finished goods from the point of consumption to the point of origin for the purpose of recapturing value or for proper disposal/end of life recycling.”

If you are looking for any type of reverse logistics services it is highly recommended to work a company that has previous experience in reverse logistics. That said if you have a strong pre-existing relationship with your logistics company and believe in their ability to invest in building out a new reverse logistics service offering to meet your needs there are just as many success stories there.

The discipline of logistics has a long history with its first mention in an article going back to 1898, but the concept of a 3PL and coining of terms like “supply chain management” really didn’t get their start until the 1980’s.

Learn more about the history of logistics and how it pertains to the third party logistics industry here.

Sundar Swaminathan, Senior Director of Industry Strategy at Oracle recently wrote an excellent article titled The Effects of Big Data on the Logistics Industry that lays out the argument that logistics companies who figure out how to help their clients manage all the data throughout their supply chain in an innovate way will have a key competitive advantage in the market.

With the recession and the challenging economy the last few years many logistics providers have been cautious (rightfully so) about heavily investing in supply chain technology. But as we continue our rapid move towards a data driven economy the companies who don’t figure out how to make client information visible and flexible will lose to stronger, nibbler competitors.

At the same time 3PL providers, manufacturers and distributors need to be smart about their investments in the logistics software market. The community is littered with companies who bought high priced enterprise software that ate too deeply into their margins and ended up wasting time and capital on software that wasn’t a good fit for the organization.

Lean companies cannot afford to make poor technology decisions. Swaminathan says:

“Companies that put in place the infrastructure and processes to acquire, organize, and analyze this data will get enhanced visibility to assets and personnel, the ability to adjust in real-time to demand and capacity fluctuations, and insights into customer buying patterns that enable smarter pricing and better products.”

We Agree.