I’ve been a baseball fan for many years and attribute my math skills to studying the back of favorite players’ cards. The basic statistics were batting average, home runs, and rbi for hitters. For pitchers it was wins-losses and earned run average. These measures don’t even scratch the surface compared to the sabermetrics used in today’s game.

Logistics and baseball have some common features. We play every day, errors can have a big impact , managers get criticized, and there are plenty of rules and regulations. Like sabermetrics in baseball, we can measure logistics performance in many different ways.

Measuring and managing logistics performance is a full time job for logistics professionals and the volume of data can be daunting. Managers in other functions such as finance, marketing, or manufacturing may need a quick view of logistics data as it relates to their responsibilities.

Here are a few general measures for the dashboard:

Absolute Performance- monitor absolute logistics failures rather than averages. For example, 99.5% on time performance appears very good. However, in a high volume operation, it could mean hundreds or thousands of late orders per day.

Inventory Turnover- common measurement in asset mgt.

Order Fill Rate- customer service and warehouse productivity measurement. Can also use item, line, or value fill rate.

Warehouse Utilization %- indicator of good asset mgt.

Warehouse Productivity- measure of units received, stored, picked, packed, and shipped per hour.

Order Cycle – reduced order cycle means less inventory in the system and greater customer satisfaction. Longer order cycle means more inventory in the system and reduced customer satisfaction.

Lost Sales- inverse relationship with inventory. Higher inventory costs, lower risk of lost sales. Lower inventory costs, higher risk of lost sales.

Transportation costs- always a trade off….bulk shipments can reduce transportation costs but leads to higher inventory levels in system. Higher transportation costs due to mode shift (air vs. ground or air vs. ocean) can reduce inventory in system by shortening the order cycle.

Commodity value- higher dollar value means increased transportation, inventory, and packaging costs.

Density of product- High density (lbs/ cubic ft or kgs/ cubic meter) means lower transportation and inventory costs since the product takes up less space in containers or warehouse.

Loss and Damage- greater susceptibility to loss or damage means higher transportation rates and higher warehousing costs due to special handling.

Location Decision- Distance from sources or markets = relative advantage or disadvantage vs. competitors. This is an upper mgt responsibility.

Need help? contact mitch@52.91.45.227

Snyder• 1stUS Army Retired/Veteran Advocate/Logistics Careers/Mentoring President, Troops2Logistics.org, Board Member LTNA.org

Had an excellent conversation today with Mitch Kostoulakos, LCB, of Ad Hoc Logistics. Mitch has been in the customs compliance arena for over 20 years and is also a former Army Reservist. Mitch has offered to provide his expert guidance to our veteran candidates interested in becoming Licensed Customs Brokers and/or Export Compliance Specialist.

On behalf of the veteran community of Troops2Logistics.org, we thank Mitch for his support!

Mitch Kostoulakos, LCB  

Thanks Scot…enjoyed our conversation and learning about your mission

From the CBP website

Customs Brokers License Exam Information

The bi-annual Customs broker license exam (CBLE) was administered on October 8, 2020 resulting in a 37% pass rate prior to appeal decisions.  The electronic exam was held nationwide at over 120 testing locations.

This is a much higher pass rate than for previous exams.

Here is one of the questions from the Entry section of the exam. Answer below.

17. The importation to the United States of cats, dogs, and monkeys are subject to Foreign Quarantine Regulations of which agency(s) ________?

A. United States Fish and Wildlife Service

B. Custom and Border Protection Agriculture

C. United States Public Health Service

D. Animal Plant Health Inspection Service

E. All of the Above

Answer: C

Customs Broker License Examination

Announcement – Remote Proctored Exam Delivery Option

The next Exam will be held on Wednesday, April 21, 2021. Exam Registration will open on February 22, 2021 and close on March 22, 2021.

U.S. Customs and Border Protection (CBP) is offering a remote proctored exam delivery option for the April 21, 2021 Customs Broker License Exam (CBLE) available to a limited number of examinees. 

Check the CBP website for details

Trademow #InternationalTrade is very crucial in global economy. In this article, we share what is #globaltrade, its importance, how it works, its impact & barriers to growth, and if you should trade! Read more here: http://bit.ly/2ZcAdcR

Mitch Kostoulakos, LCB  Licensed Customs Broker, International Logistics Consultant

Well written and informative article

The last year has brought major changes in how business is conducted between logistics service providers (LSPs) and their clients. Here is what I wrote in a post just 18 months ago about managing carrier relationships:

LSPs, especially motor carriers, make extensive use of “customer entertainment” to gain and retain market share. Lunches, dinners, and sporting events are a big part of the job for carrier representatives. …..Business lunches can be productive for both parties. Clients should have an agenda with a few discussion points. Remember, as with any meeting, if you don’t have an agenda you are subject to someone else’s…… Expensive dinners and sporting events are much less productive from a business perspective. Food and drink becomes the main event.  The game takes precedence at sporting events.….In summary manage your carrier relationships, Don’t let your providers “reward” you for your business. It makes it much more difficult to change providers or negotiate new deals.

In the last year entertainment and face to face sales calls have been limited. Most interaction between LSPs and clients is via Zoom or other remote methods. This no doubt makes the carrier rep’s job more difficult. The relationship must now be built on adding value and problem solving instead of entertainment. In other words the relationship becomes more professional and a little less personal. While the client may not enjoy as many lunches or dinners, negotiations and accountability may be easier.