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Stakeholder Influence on Sustainable Supply Chain Management in 2022

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3pls, Archives, Global Logistics, Global Trade Daily, Special Reports

Stakeholder Influence on Sustainable Supply Chain Management in 2022

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Sustainability is the new catchphrase in processes around the development of goods or products. The aim is to protect the earth so that future generations can enjoy it. It requires a concerted effort to avoid anything that can damage the environment. 

The UN sustainable development goals (SDGs) highlight 17 key areas of concern. These include clean water and sanitation, clean and affordable energy, and reduced inequality. 

And, the world is already adopting sustainability. There is, for example, a shift towards using renewable energy sources. 

Solar and wind are replacing the need for fossil fuel. Industries must be more stringent about not polluting the environment during manufacturing. 

It is without a doubt a process that requires the input of all stakeholders within the supply chain. That is why it is important to understand how they influence supply chain sustainability. 

Understanding Supply Chain Sustainability 

Supply chain sustainability is any step to reduce negative impacts. It covers both the environment and humans. 

It looks at the whole supply chain process. That is, from the raw material stage to the delivery of the final product to customers. 

These include manufacturing and production, storage, and transportation. So it is not only about minimizing harm from the process. It should also include the positive impact on the communities. 

The advantages of embracing sustainability are many. These include positive brand perceptions amongst customers. Investor relations can also improve because of sustainability efforts. On the other hand, a negative media report on supply chain practices can hurt stock prices. 

Some investors would even cut ties with the company. It will depend on how strongly they believe in sustainability. And, of course, there is the aspect of compliance with regulatory guidelines.

The Impact of Sustainability on Stakeholders 

The term stakeholders cover a wide variety of people. They may, directly or indirectly, influence a company’s development plans and strategies. 

These include employees, customers, shareholders, and the community at large. And within these groups, there are two distinctions. There are the primary stakeholders who have a complex relationship with the company. They do have some similarities in expectations, rights, and responsibilities. 

Secondary stakeholders can influence the company. But, they are not essential for its continued existence. 

A study on how stakeholders can influence sustainability in the supply chain shared interesting insights.

-Pressure from stakeholders on sustainability can result in greater awareness. 

-Stakeholders have a critical role to play in the adoption of sustainable goals. 

-The impact of stakeholders is dissimilar in key decision areas. 

-The sustainability issue influences the weight of what the stakeholders have to say. It could, for instance, have more impact depending on whether the issue is social or environmental. 

Without a doubt, stakeholders have a crucial role to play in sustainability. After all, the organizations depend on them for business success. 

And, there is the important role of employee or worker feedback. How do they feel about what the company is doing with regard to sustainability? Are they facing issues around human rights or labor practices they would want to share? 

But, a huge challenge remains. Many workers may not be willing to speak up for fear of reprisal. Finding a way to allow them to communicate anonymously can help. 

Some companies will use suggestion boxes. But, employees may shy away for fear of watchful eyes. To counter this, tech-forward companies are automating this feedback process by investing in tools like Ulula. 

Ulula is a mobile-enabled platform that can help with anonymous surveys. It sends digital questionnaires to the stakeholders’ phones. Thus, it enables real-time data collection, while respecting the respondents’ preference for privacy.

The anonymity helps in collecting more honest feedback. And, the system can identify fraudulent activity, thus ensuring better data quality.

Clarifying The Role of Stakeholders in Influencing Sustainability

The role of stakeholders in influencing sustainability has three characteristics. These are power, legitimacy, and urgency. Stakeholders have the critical role of control and accountability. 

Accountability makes the company liable for processes that happen within the supply chain. Control is the ability of the stakeholders to regulate some of the company’s activities. 

Let’s explore these by looking at some stakeholders. 

The Government or Regulatory Authorities 

Take the example of the government as a stakeholder. They have power, legitimacy, and urgency. They can pressure the company into sustainable practices. 

Non-adherence to sustainability guidelines can lead to the loss of operating licenses. The company can also find itself facing stiff penalties from the regulatory authorities. 

Customers 

Let’s start by saying that modern customers are very conscious. They know the important role of sustainability and are more demanding of it. 

Customers have a great deal of power. Their influence can be the reason for a company adopting sustainable practices. Like the government, they have power, legitimacy and can create a sense of urgency. 

Take the example of a community demonstrating against pollution by a company. The resulting pressure can force the company into taking the right sustainable action. 

Industry giants like Kellogg’s, Coca-Cola, Unilever, Nestle, and PepsiCo understand this well. Behind the brand’s campaign allowed customers to demand sustainability from companies. These included demanding greater accountability from those within the supply chain. 

The customers also wanted the ten drink companies to tackle gender inequality. Other areas of interest were climate change and land grabbing. Many of the companies changed their process due to the campaign. 

They established zero tolerance to unethical practices within the supply chain. Others like General Mill and Kellogg’s paid keener attention to reducing emissions.

The Media 

What about the media as a secondary stakeholder? Well, you may have heard that the pen is mightier than the sword. They have power, legitimacy and can create urgency. 

The media are a key driver when it comes to sustainability. Not only can they get the companies to change their practices. 

But, the customers look to them for information. Do you know up to 60% of customers consider the company’s sustainability practices when purchasing a product? 

One-third of customers have no problem paying premium prices for sustainable items. It could explain why organic products, despite being more expensive, are so popular. 

Final Thoughts 

We all want to leave our kids and their kids a healthy environment. And that, in its simplest, is what sustainability demands. In fact, embracing sustainability within the supply chain may no longer be a choice. That is, if you want your company to remain relevant. 

You see, modern customers are very demanding of ethical and clean processes. And the same applies to other stakeholders within the supply chain.

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Archives, Commentary, Global Trade Daily, Software

4 Ways to Use Software Effectively For Logistics Recruitment

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HR managers in the logistics sector have a lot of challenges to overcome. One of the most significant is the lack of a sufficient talent pool. There is a rise in demand for logistical services. 

Many attribute this to the Covid-19 pandemic. More people now resort to online shopping and companies must work hard to satisfy the demand for supply chain logistics. Yet, there are not enough people to fill the job positions. This is mainly due to a widening skills gap. Older workers are opting for retirement while younger demographics are not lining up for jobs within the logistics sector. There is a significant lack of skills, experience, and qualifications. 

And, with such high demand for talent, HR must improve efficiency to attract the right candidates. The right software can provide the most effective solutions. We will explore how to use them in our article.  

Better Quality Candidates with Recruitment Solutions 

HR managers have for a long time depended on legacy systems to fill job positions. These include advertising open positions where they then go through the applications and narrow down on the best candidate. Then comes the interview process, final selection, and onboarding. 

Manual processes can take a lot of time and money. But now, with technological advances, there are recruitment solutions available. They increase efficiency by automating some of the tasks.  

The HR department gets access to:

-Powerful applicant tracking Systems (ATS) to create and manage databases. 

-Better quality job posting and distribution services.

-Advanced search capabilities for the right candidate.

-Data analytics that yields tons of insights for better decision-making.

-Intuitive onboarding for recruits.

-Third-party integrations such as CRM for nurturing relationships.

-Account and customer service management. 

HR recruitment software saves time that would go into manual processes. Automation leads to higher efficiency and streamlined workflows. It frees up the team to concentrate on other tasks.  

The Role of Candidate Relationship Management Systems 

With such a demand for talent within the logistics sector, it is easy to lose employees to competitors. HR has a critical role to play in retaining the existing workforce. That means constant engagement and finding ways to boost employee experiences.  

Investing in candidate relationship management systems can assist with this. The software helps in nurturing and managing candidates, right from the recruitment stage. Here is how it works. 

The company uses applicant tracking systems to develop a repository of potential candidates. And the recruitment CRM provides additional information on the candidate.  

HR can use the data to personalize their communication and engagement with recruits. And that’s not all. The CRM helps send out personalized emails, screening, interview scheduling, and running background checks.  

HR also gets data that can provide insights on the effectiveness of the recruitment strategies. 

Talent Sourcing and Matching Recruitment Solutions 

As stated, it can take a lot of time to go through each application to find the best talent. Recruitment software automates the process, thus increasing speed and efficiency.  

And, online recruitment software can search more platforms for the right talent. They scour job posts, social media platforms, and other online sites to get qualified candidates. 

The algorithms focus on factors like experience level, education, and industry knowledge to narrow down suitable candidates. It helps avoid bias, which is a big problem in recruitment.  

Talent matching software ensures the right person fills the job position. It focuses on the skill in relation to the job. It is expensive to hire someone only to later find out they are not suitable for the job.  

Better Candidate Experience with Recruitment Solutions 

With so much competition for talent in the logistics sector, employers must work hard to improve the candidate experience. Let’s take the example of lengthy recruiting processes. Candidates may view the long wait for feedback as a lack of interest and could move on to the competitors without a second thought. 

That means you lose out on the limited talent due to in-house inefficiencies. Automation can help increase efficiency, thus faster response to potential recruits.  

We have looked at the important role of candidate relationship management systems. Ongoing communication shows the recruits that they are top of mind. HR can keep the candidates up-to-date with what is going on. 

Such a simple step can help build positive brand perception. A good word from such candidates about how well you manage them will make the organization more attractive to others. 

Do you know that up to 69% of employees will share a negative candidate experience? 55% will not pursue a position in your company if they read a bad review. How the organization manages candidates is, therefore, a critical recruiting factor.  

Recruitment solutions with technologies like chatbots can improve the candidate experience. The bots provide quick responses to queries. The candidate does not have to wait a long time for information. Such tools are also fantastic for onboarding.  

HR simply uploads the information they would want to share with new employees. The latter can then, at their convenience, log in to access the information.  

Recruitment software can uncover hidden talent within the organization. It will go through the database to match potential candidates to open positions.  

That means there are chances for existing employees to move into jobs that are more suited to their qualifications. That forklift operator might be a fantastic salesperson. 

Further, the promotion can be a fantastic motivational factor. Finally, it will save the company money and time by not having to go through talent sourcing in the wider market.  

Final Thoughts 

The logistics sector is facing a tough time when it comes to recruitment. There are job opportunities available. But, companies are facing a challenge finding the right talent to fill the positions. That means, there is high competition for the limited pool of candidates. 

Companies that invest in smart recruitment solutions can have an edge over the competition. Applicant tracking systems, for example, help in the creation of databases. It helps save time which would go into placing job postings across various platforms.

Candidate relationship management systems increase engagement. They provide an excellent way to nurture relationships with industry talent. 

The use of recruitment software also enhances the candidate experience. HR keeps up with engagement and provides ongoing feedback. Finally, tools like chatbots provide prompt feedback to queries and can help with onboarding. 

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Archives, Global Logistics, Global Trade Daily, Warehousing

4 Effective Tips for a Successful Logistics Business Model

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People who move around rely on logistics companies to bring them to a new city, new life, and new goals. Likewise, businesses count on logistics companies to deliver goods and services to specific places.

A reliable logistics company will move, track and deliver everything timely, prioritizing the customer’s needs. The goal is to provide logistics services efficiently. Fortunately, renowned logistics companies have steady business models and experiences for smooth transportation.

Moreover, the logistics sector is fast-growing. Better still, it’s booming in the online marketplaces, thanks to the growing e-commerce business. Besides, every business has to deal with the supply and delivery of its products and services. Now, logistics companies know no borders as they transport things globally.

Because it’s a highly demanding sector, how can you make the business model successful? Read on.

What Makes the Logistics Industry a Good Investment?

Undeniably, the growth of the eCommerce sector is also causing the rise of the logistics industry. Also, the startups are now providing B2C supply chain services to online stores. Better still, the logistics sector is becoming a steady investment plan for most B2B investors.

Thanks to technology, it’s becoming easier for the logistics industry to meet the high distribution demands. So, investors are not having second thoughts on sowing to reap abundantly from this industry.

Practical Tips for a Successful Logistics Business Model

With a few practical tips and tricks up your sleeve, you are set to succeed in your logistics business. Check out below some ways that will improve your logistics business productivity.

Automation

Today, technology relies on the digitalized world. Automation is the fundamental drive for improved efficiency in a company. Also, automation is an essential aspect of business process optimizations.

The logistics industry is rapidly becoming technology-compelled. Fortunately, there are valuable ways a company can use to improve its efficiency for success. A business website is among the best ways to automate your business model. a website developer will incorporate various software to make processes flow smoothly.

However, a good and effective website relies on web development and design. Irwin Hau, the Chromatix CEO, says they make websites that offer credibility for businesses to attract new clients. “With a no-nonsense data-driven approach, our knowledge of UI & UX coupled with human psychology techniques and conversion analytics means that we can guide our clients with tangible facts to make the best and most accurate decisions,” the Chromatix CEO stressed.

Besides, automating a logistics company is to expand and reach new heights.

Aside from a website, reliable business process software will streamline the processes by:

-Offering punctual updates about the movement of products

 –Being part of track movement

 –Build transparency

-Allow safety network

-Offer good customer experience

-Boost proficiency in the management process

Moreover, tracking business software provides valuable details for the client and operator on:

-Goods released from the supplier

-Procurement of products from the warehouse

-Arrival and delivery of the goods

This way, the business saves time because of no use of manual procedures. Besides, automated tracking also provides an accurate response, which improves general process management.

Automation makes it effortless to organize and manage account and employee details through software. Ultimately, a logistic industry needs to embrace automation to increase productivity.

Proper Planning

For any management to thrive, a proper planning structure is vital. Planning involves many factors, for instance, procurement, storage, and delivery. Still, costs, time, and transportation fall under the planning structure.

A logistics operative should understand how to create the flow chart for the entire operation. Good planning targets to accomplish maximum work in the shortest time. Still, the planning aims to get more profits in the shortest time.

Moreover, a good logistics management plan needs an experienced manager. This way, the manager will plan and prepare for unpredictable circumstances. Such unpredictable circumstances can affect:

-The products,

-Lack of transportation,

-Any internal problem in the company, and 

-Research and choice of the suitable freight.

Still, a backup plan is necessary to handle emergencies. With this plan, the company needs to put it in place to prevent any logistics failure. So, no logistic planning is effective if it lacks a ready emergency plan.

Good Relationships

The team is the backbone of any organization. The steady growth and success of a business are the team’s sole responsibility. Everyone has a role in a logistics company, from the delivery driver to the warehouse manager. Everyone should be perfect in their duties for excellent productivity.

It would be best to offer proper training for employees to enable work efficiency. So, going for regular training workshops will update employees with the newest trends in the industry. In the end, there will be improved work and management efficiency. There’ll also be better customer experience and satisfaction.

It’s normal for plans to fail sometimes. But, don’t panic! Such situations call for a sensible and reliable person to handle the issues with caution and efficiency required. That’s why a logistics manager is an essential asset for the organization due to their flawless interpersonal skills.

Better still, if the manager has valuable, authoritative contacts in the industry, it means opening business opportunities for the organization.

Warehouse Management

Good warehouse management plays a fundamental role in effective logistics management. In the warehouse, the operations planning and structure vary with the different products they handle.

Additionally, the delicate handling of perishable goods like meat and dairy products will require refrigeration facilities. Grains last longer since they are in an open environment.

Equally, the conditions of operations and management of the warehouse rely on the type of goods available. Therefore, a good warehouse must ensure minimum waste of goods by developing correct warehouse inventory.

Maximizing the storage capacity in the warehouse is crucial. Installing vertical storage columns is a good use of the space. Besides, bulk storage can make a space disorganized and time-consuming.

Remarkably, a software application arranges the products chronologically for easy and quick access when needed. Hence, it would be best to train all relevant staff for the warehouse software operations.

Final Word

Using the above practical tips for a successful logistics business model gives the organization an edge against the competition.

These tips will enable process optimization to improve logistics operations. Also, it makes the logistics management processes more effective.

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Archives, Global Logistics, Global Trade Daily, Warehousing

4 Strategies Every Logistics Company Must Start Doing

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On the consumer level, logistics companies are seen as couriers who deliver their most-awaited packages. But for business owners, the logistics industry is an extension of their service cycle. As such, logistics companies have a ton of responsibilities on their shoulders. 

As a logistics company, what practical steps must be done to maximize your clientele’s satisfaction? 

We can look into it in this manner. The primary goals of a logistics company can be broken down into three segments: warehousing, distribution, and transportation. For each goal, there must be actionable steps that your logistic company should do immediately. And if you are practicing it already, maybe it’s time for an upgrade. 

Here are some of our tips. Let’s go! 

Tip #1: Listen to Customers 

We know this is the oldest trick in the book. But, that only goes to show how effective this one is. The question now is how to listen to them effectively, considering that logistics companies cater to two different sets of customers. 

Client satisfaction surveys will never go out of style. You just need to upgrade the method to acquire them. 

To effectively collect data through surveys, make sure that the survey form is accessible. Most survey data now are collected through the internet. On top of that, most of them are composed of 5-7 close-ended questions only. 

Everyone wants it fast and instant nowadays, and you need to take advantage of that. Pose questions such as, “Which of our services are you most satisfied with?” and present them with choices. As much as you can, always provide choices to make the process easier for everyone. 

Apart from surveys, make sure to keep your social media presence known. Be active on social media platforms. 

Some might have hesitations thinking that logistics companies don’t need Facebook, Twitter, or Instagram pages. But, best believe, you do. 

Having one is one of the easiest and most open forms of communication between your clients. It’s akin to practicing an open-door policy in your company. 

You can easily look for customer feedback and provide them with easy solutions without them needing to go through customer reps. It’s a win-win situation for both sides. 

Tip #2: Reduce Waiting Time

Time is an essential aspect of any logistics business. And in the entire process from pick up to delivery, there are several points where you can reduce waiting time. 

First and foremost, ensure that your communication lines are always open and available. Establishing a comprehensive company website is essential in this day and age, regardless of what industry you belong in. 

If you are yet to create one, tap the services of an established web design company. They will handle everything from inputting the essential details of your company down to the overall design of the site. Make sure to partner with a company that prioritizes web design and development. 

Work hand-in-hand with these web design companies so that you’ll come up with a website that best caters and depicts your company’s needs and services. 

This published website will then become the go-to portal of all your clients, new and recurring. With a few clicks, they can check out your services and rates. And if your site also comes with round-the-clock chatbots, then the website also becomes the easiest and most efficient way to reach you. 

Aside from those mentioned above, the website will also serve as your company’s personal tracker. Instead of updating your clients manually about their shipment’s whereabouts, you can just update them through the site by sending them automated emails or chats. On the flip side, your customers can also use the site in the same manner. 

Some logistics companies often disregard the importance of well-designed websites because the services offered are all “offline”, but most of the clients today are almost always “online”. There is a need to bridge this disconnect. 

Tip #3: Understand and Deliver Customer Expectations

As much as goal-setting is fundamental for building businesses, expectations-setting also holds the same weight of importance. A large chunk of customer satisfaction relies on whether their expectations of your services are met or grossly missed. 

Regular and properly-crafted surveys and social media presence can help with this tip as well. But, an even more practical method to achieve this goal is to set the expectations yourself proactively. 

Say, for example, you are a logistics company that specializes in the transportation of goods. Even before a client can demand when they want their goods to arrive, make the first move. Tell them what is expected from your services. 

Provide the details on how you carry out your services. Most importantly, uphold transparency when it comes to dates. When you can pick up orders, when you can deliver, and when you can drop them off. These details are essential for your customers and they should be held as your company’s top priority too. 

Another method to meet your customers’ expectations is to do timely tool upgrades. Something as simple as bill printers can decrease your usual service time. Automatic tape machines also do the same. If you have the capacity to automate more than half of your process, then invest in it.

Tip #4: Research!

Lastly, research will always be your most valuable strategy. The demand in the logistics company started as seasonal, but that doesn’t seem to be the case now. To cope with this shift, full-blown market research is an effective tool to come up with solutions. 

But, that’s not always the case. Sometimes, simple research, such as looking into new trends or new delivery technologies, can catalyze further improvement for your company. 

Final Words

Even if logistics companies handle rough or brunt work every day, that doesn’t mean that you can forego other aspects of the company. Publishing company websites, social media profiles, and regular research should go together with the labor that gets done every day. These strategies keep your company running. 

If you are yet to start these practices, make sure to conceptualize how you can effectively translate your offline presence to the online domain.