By Karen E. Thuermer, AJOT With the press asking questions about a possible strike at East Coast seaports, logistics experts gathering to discuss the 23rd release of the annual State of Logistics Report compiled by the Council of Supply Chain Management Professionals (CSCMP), revealed that manufacturers and retailers are already warding off any potential problems by increasing inventories. “The quickest solution is to move up shipments and take delivery of items, especially seasonal products and those related to television promotions,” comments Richard H. Thompson, managing director of Supply Chain & Logistics Solutions for Jones Lang LaSalle. Thompson acted as moderator during a panel discussion that was held at the National Press Club in Washington, DC on June 13. Even if an East Coast longshoreman strike is simply hearsay, there is increasing interest among all parties involved in the supply chain to work together to meet customer demands. This means warehousing, distribution centers (DCs), and transportation providers must all work in concert to achieve fluidity and seamless delivery. In recent years, manufacturers and retailers have cut costs by utilizing slow steaming steamship lines that have also cut their costs by reducing the speed at which they operate their engines. As a result, however, these shippers have had to adjust their supply chains to accommodate the extra transit days to their timeline. “Slow steaming is adding days to the supply chain,” says Rick J. Jackson Rick J. Jackson, executive vice president of Mast Global Logistics, which handles production, sourcing and logistics for Limited Brands Inc., in Columbus, Ohio. “That extra two or three days makes a difference. Now we are looking at how we can contribute to bringing the supply base closer to home.” Consequently, Mast Global Logistics is studying the possibility of near-shoring and on-shoring for Limited Brands. The reason, the company wants to be able to get products to market faster by introducing more efficient end-to-end cycle times. “We may source products form 7,000 miles away, but the supply chain needs to perform like it’s next door,” he says. “Logistics also needs to be able to respond to the evolving economic situations in Europe and the slowing economies in Asia. This will keep us carefully thinking about our buys.” CSCMP panel members contend that contingency plans must be made especially because the time is coming when shippers find it difficult to get trucking services – the key component to the last leg of most deliveries. Fast Approaching Challenges All modes of transportation play their role in supply chain management. But big challenges are in the air. Trucking services, which are vital for at least the final segment of delivers to and from warehouses and DC operations, are critical yet in increasingly short supply. In fact, the CSCMP Logistics survey found that 28 percent of trucking firms are considering selling out in the next 18 months if economic conditions do not improve dramatically. In addition, a Transport Capital Partners (TCP) survey done on Jan. 10, 2012 found that almost two-thirds of trucking carriers either do not plan to add new capacity this year or will keep their additions under 5 percent. Nearly 40 percent of smaller carriers are weighing an exit, compared with 23 percent of the larger carriers, TCP said. With the debt crisis in Europe and slowing economic conditions in China, the view for a much improved U.S. economy by year end 2013 looks increasingly unlikely. Striking the Right Balance Maintaining the right balance of inventory is critical for retailers to meet customer demands. Having too much inventory can be costly to a company, yet not having enough can mean loosing clients to those who do. For now, retailers appear to have a handle on inventory management. Unlike 2009 when retailers found they were caught with excess inventory as sales dropped off, today’s inventory-to-sales ratio is more stable. In fact, 2011 indicated that ret