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.

Download FREE IBM Inventory Planning Whitepaper

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.

One of the most common questions we get is what is a fourth party logistics provider or (4PL)? First off it’s worth saying that 4PL is more of a buzzword than any kind of accurate descriptor. That said a 4PL (also sometimes called a lead logistics provider) is a non-asset based company (i.e. they don’t own their own trucks or warehouse facilities) that provides logistics consulting services to fully manage, design, and build supply chains. While the logistics and supply chain industry continues to be confused about the exact role and definition of 4PLs, an emerging category of logistics consulting and management firms are emerging that are invaluable in managing large scale, complex supply chain functions from the top and overseeing innovative technology solutions.

Learn more about 4PL Companies

We’re happy to announce our list of Top Logistics and Supply Chain Blogs for 2011.

From Logistics Viewpoints a blog crafted by Adrian Gonzalez and Steve Banker who bring more than 25 years of logistics research experience to provide their unique voice to the blogosphere to the Supply Chain Management Risk Blog from Daniel Dumke, a researcher at the Institute of Business Logistics we have selected our top logistics based on authority, relevance of content, and frequency of updates.

Over years it’s been incredibly promising to see the quality of writing and content focused on the logistics and supply chain industry that continues to be available on the web and really appreciate all the blogs mentioned in this list in addition to all the other quality web sites and resources providing trusted information to logistics profressionals on a daily basis.

See our Top Logistics Blogs List

Ever hoped for a quick reference guide that you could consult whenever someone mentioned an obscure abbreviation for a trucking or logistics term? You are in luck. Today Logistics List has launched a Logistics acronyms reference guide.

Our hope is to keep this a continually updated guide covering all common acronyms and abbreviations used in the Logistics Industry.

See an acronym that we missed that we should add? Send us a message on Twitter with your suggestions at http://twitter.com/logisticslist

Without further ado, we bring you our official Logistics Acronyms List.