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6 Reasons to Connect the IoT to Electro-Hydraulic Systems

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Global Trade Daily, Technology

6 Reasons to Connect the IoT to Electro-Hydraulic Systems

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Electro-hydraulic systems are common in fleets across several industries, from construction to warehousing. However, they can also be more challenging to manage than some equipment, so businesses should optimize them wherever possible. That means capitalizing on electro-hydraulic automation technologies like the Internet of Things (IoT).

Like any new technology, IoT systems often incur high upfront costs and may require adjustment to get used to. Despite those challenges, the benefits of IoT connectivity far outweigh the potential obstacles. Businesses that can learn what these advantages are and apply them effectively can see considerable operational improvements as a result. 

Here’s what companies should know and the benefits they can reap from implementing IoT in electro-hydraulic systems.

Increased Uptime

Predictive maintenance is one of the most popular use cases for industrial IoT systems and an important part of electro-hydraulic automation. This practice uses IoT-connected sensors to monitor performance factors like hydraulic pressure, fluid viscosity or temperatures to determine when a machine needs repair. The sensors then alert employees when it’s time to maintain the equipment.

These real-time alerts enable faster responses to emerging maintenance concerns, enabling more effective fixes. As a result, companies can achieve previously unattainable levels of equipment uptime. Machine availability can increase by as much as 20%, and maintenance planning time can fall by 50%.

Even a modest improvement in uptime can translate into hours more of availability per year. That extra time gives companies more value from their electro-hydraulic systems, driving higher productivity and profits.

Lower Maintenance Costs

Fleets that implement predictive maintenance programs can enjoy benefits beyond uptime improvements. The most significant of these is a reduction in repair-related costs. U.S. companies spend $50 million annually on maintenance and repairs, so savings in this area can substantially impact the bottom line.

Using real-time IoT data to drive maintenance programs instead of running equipment to failure means companies can fix issues while they’re small. Electro-hydraulic repairs can quickly get expensive and complex, so preventing larger breakdowns like this is essential. Fleets will also raise operating margins by minimizing downtime.

The IoT also provides savings over conventional preventive maintenance. Because IoT-driven approaches are needs-based, they prevent unnecessary repairs and related downtime. As a result, they’re more cost-effective than reactive and standard, schedule-based repair methods.

Remote Accessibility

Electro-hydraulic automation in maintenance is not the only benefit of IoT connectivity. Connecting this equipment to IoT systems also makes them remotely accessible, so routine operations are much more convenient.

Some IoT setups let workers check on connected equipment from their phones. Managers could look at operational data or check maintenance logs without being physically near the machine in question. That leaves more time in the workday to focus on value-adding tasks.

Businesses can also use the IoT to control electro-hydraulic systems remotely. In some setups, that means letting employees make smaller adjustments for improved accuracy and performance, even from a distance. That level of control without the need to be close to the machine can significantly streamline operations and boost output quality.

Improved Safety

Being able to control electro-hydraulic systems remotely also makes operations safer. IoT technologies play a critical role in safety in several industries, and this accessibility is a key reason why. Workers who don’t have to be close to heavy equipment and hydraulic pinch points can use this machinery without worrying about its physical hazards.

Using the IoT for predictive maintenance will further improve equipment safety. These IoT-driven repairs will minimize the chances of an unexpected breakdown, preventing accidents that could endanger machine operators or nearby workers.

IoT sensors on electro-hydraulic systems can also communicate with other nearby sensors to avoid collisions. Machines that detect they’re getting too close to each other can alert workers or automatically shut off to prevent accidents. This electro-hydraulic automation will ensure even a lack of employee awareness won’t jeopardize workplace safety.

Machine-to-Machine Communication

This machine-to-machine communication has implications outside of safety. IoT sensors in electro-hydraulic equipment can send more than location data to other machinery. They can transfer a wide range of workflow data back and forth, letting every machine adjust to changing conditions in the equipment around it.

This communication helps businesses overcome one of automation’s biggest obstacles — a lack of flexibility. In a conventional setup, automated electro-hydraulic equipment couldn’t handle an error or disruption in an earlier part of the workflow. That’s because robotics operate on the assumption that factors remain consistent. IoT connectivity can alert these systems about incoming changes, letting them adjust ahead of time to stop small mistakes from causing significant issues.

Automated systems that can adapt like this are a safer investment. As a result, the IoT can make electro-hydraulic automation more practical and cost-effective for a wider range of businesses.

Long-Term Process Improvements

Fleets that implement IoT systems in their electro-hydraulic equipment to experience these other benefits will also unlock longer-term possibilities. IoT sensors provide hard data on the processes they monitor, and businesses can use it to learn where and how to improve.

Studies show that companies with mature data practices experience two and a half times better business outcomes than those without. That’s because having more information to base decisions on provides crucial context, informing more effective decision-making.

IoT data can show which electro-hydraulic systems require the most maintenance, suggesting what machines to replace and when to do so. Alternatively, it could show where this equipment is most and least effective, informing better usage practices. Companies that review and adapt to this information will become increasingly productive and cost-efficient over time.

IoT Connectivity Expands Electro-Hydraulic Automation

Electro-hydraulic automation is an important part of many operations, and IoT systems can take it further. Businesses that connect this equipment to the IoT can use it more safely, efficiently and in a wider range of applications.

Achieving these benefits starts with learning what this technology has to offer. Getting familiar with the IoT and its potential applications today can equip companies for a more tech-driven tomorrow. Capitalizing on that promise ensures businesses surge ahead of their less tech-friendly competitors.

 

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6 Inventory Management Tips for E-Commerce Subscription Boxes

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Subscription boxes offered online can be a viable business model, provided you can give the target market what it wants. Finding the items to stock an e-commerce subscription box with is more complex than it seems, but you can use various e-commerce inventory management strategies to ease the challenges.

1. Surprise People With the Contents of the E-Commerce Subscription Box

Many e-commerce subscription box companies build in flexibility by being upfront about how the contents vary. For example, you might promise they contain products from certain broad categories and tell beauty box subscribers they’ll always receive one item for their skin and another for their hair.

That approach frees you from the e-commerce inventory management challenges of having a minimum quantity of specific products. It also enables supplier diversification.

Plus, subscribers should appreciate being surprised but have accurate expectations about what they’ll receive. People may not always get items they love, but they’re prepared for that outcome.

2. Use Data Within Your E-Commerce Inventory Management Strategies

Data can be powerful for helping you improve the handling of e-commerce inventory management for your subscription boxes. Keeping track of metrics like how many customers you gain or lose per month can make it easier to stay on top of what you’ll need to keep the boxes stocked.

Adventuretown Toy Emporium is a Los Angeles-based toy store with a brick-and-mortar and online presence. It recently announced a customized subscription box tailored to kids aged 0–3. The company sources from 35 countries and puts one or two toys in each box.

People curate the boxes based on data from parents about whether their kids are meeting developmental milestones on time and the experiences the children had with previously received items. Those insights help the people filling the boxes choose relevant goods.

3. Sign Deals With Suppliers or Other Partners

Navigating the e-commerce subscription box landscape usually requires adhering to supplier minimums. That might mean you must buy in bulk from your box supplier. However, before placing an order, it’s better for businesses to see if they can request a sample. If boxes don’t assemble easily, it might not be worth it. Saving 5 seconds per box assembly can make teams more efficient and get products to customers quicker. 

Another possibility is to enter exclusive deals where an in-demand artist creates several box designs you’ll send out in a single month. That’s a great way to increase influencer traction as those personalities make their ever-popular unboxing videos. It also increases anticipation because people will wonder which designs they’ll get.

4. Be Honest About Slowdowns

Anything from bad weather to unexpected product shortages could make it more challenging to send subscription boxes on time. High demand can also increase problems. Even Amazon occasionally experiences them — during the 2021 Prime Days event, customers had to wait two weeks beyond the usual time frames to get an in-demand mini camera.

However, telling customers about any delays as soon as you learn about them is usually the preferable option to staying quiet. Besides informing them about slowdowns, be transparent about what you’re doing to solve them. Relatedly, admit which aspects are out of your control.

If necessary, create a dedicated part of your e-commerce subscription box website that provides the latest information as you get it. That could work better than sending out numerous emails customers may eventually overlook.

5. Provide Limited Choices When Feasible

Some subscription box companies let a restricted number of people choose between two offerings. Perhaps you have a snack subscription service and allow the first 1,000 customers to submit their preferences for either a salty or sweet treat from a particular brand. However, anyone who tries to do that too late will get whatever’s available.

Taking that approach should make it easier to engage with your supplier because you only need a minimum of 1,000 packages of each snack version. Beyond that, you have the flexibility to get whatever option is more reasonably priced, easier to source or has some other desirable characteristic.

However, customers typically like when you give them some options. This suggestion makes it easy to do that without putting too much strain on your supply chain. 

6. Specialize in Recurring Subscription Boxes

Company leaders often find it easier to source an e-commerce subscription box if the contents are somewhat consistent every month. Statistics from 2020 indicated people spent about $74 per month on food and meal kit subscriptions. If your subscription box is that type, you might allow people to choose a certain number of meals for a monthly rate. However, they need to select the ones they want so you can indicate when specific offerings sell out.

This strategy also works well if you have a well-established supply chain network in a particular region. You might sell a coffee subscription box and promise all recipients of February’s box will get an organic blend from a South American roaster. Mentioning that allows you to engage with all your suppliers on that continent to ensure they’ll collectively have enough products to fill the month’s boxes.

It’s also wise to encourage people to sign up for a minimum number of months and give them the option to renew. Knowing the precise number of people signed up to receive six months of a recurring subscription box makes it easier to figure out how to get adequate stock. Clarifying that people cannot cancel and restart their e-commerce subscription box plan at any time also makes inventory more manageable.

Set Up for Subscription Box Success

Managing subscription box inventory comes with specific challenges. However, planning thoroughly and following these suggestions will help you overcome obstacles.

Listen to your customers, too. If they love or dislike certain items, their feedback might be reason enough to prolong or end your relationship with particular suppliers.

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Archives, Global Logistics, Global Trade Daily, Warehousing

Does Your Forklift Fleet Management Need Improvements?

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A thorough forklift fleet management plan can increase profitability, safety, visibility and more. People should strongly consider reviewing their existing strategies and see if they’re as effective as possible. Consider the signs below as proof it’s time to make meaningful changes.

Too Much of the Budget Is Spent on Upkeep

Regular maintenance is essential for a forklift’s safe operation. However, there often comes a time when the overall money to maintain the vehicle’s functionality becomes prohibitively costly. That’s why one of the best ways to enhance forklift fleet management is to deploy solutions with predictive capabilities. Then, algorithms can alert people to problems days or weeks before a forklift breaks down.

However, people must start with the basics when maintaining forklifts. They can do that without relying on smart sensors or new platforms. One tip is to use a gauge to check the forks for unevenness. Put the tool above the fork bend and make contact with the fork’s horizontal and vertical lengths. Check that the measurement is close to 90° and repeat the process with the second fork.

Even all-encompassing maintenance strategies can’t make forklifts work indefinitely, though. It’s a good practice for people to refer to upkeep records for individual forklifts — especially those that break down more frequently than others. Storing that content digitally in the cloud makes access easier. They should also listen to the advice of technicians, who usually tell forklift owners when it may be better to replace a problematic forklift instead of continuing to repair it.

Newer forklift models can also align with efforts to minimize emissions. Designers have created options with significantly reduced carbon monoxide output from the tailpipe. Alternatively, company leaders could invest in electric forklifts. They’re emissions-free vehicles — save for those produced during the manufacturing process.

Since forklifts are integral to many warehouse and logistics processes, any unplanned downtime can be extremely costly and disruptive to the workflow. Fortunately, people have plenty of potential ways to improve forklift fleet management, including predictive analytics and digital recordkeeping tools.

Company Unable or Unwilling to Make Data-Driven Decisions

People use forklifts in busy logistics facilities that handle thousands of products or parcels daily.

Now that more businesses offer those vehicles with onboard telematics solutions, people can start using data to learn more about how they use forklifts. Individuals can learn things such as the average operating time per day, which drivers spend the most time using forklifts and even the weight and dimensions of pallets handled by forklifts.

However, estimates from John Rosenberger — a telematics executive with The Raymond Corporation — suggest only 40% of companies are active and consistent users of lift truck telematics. Even the people in that group quickly become overwhelmed and lose focus on the details within the data.  Rosenberger believes another 30%–40% of people use forklift telematics data casually. He also said telematics only comprise about 2%–8% of a powered industrial truck’s cost, meaning data collection capabilities don’t add significant expenses.

These statistics show people must do more than invest in technology that allows them to improve forklift fleet management. It’s also vital they commit to learning the new skills and setting aside the necessary time required to make the most of the data at their disposal.

Decision-makers should take a historical look at how they’ve managed their fleets over the last several months or years. How often have they tried or been able to rely on data when making the appropriate choices? If they can’t remember or know there have only been a few occasions, those are strong indicators it’s time to do better.

Increased Accident Rates or Other Driver Safety Incidents

People sometimes overlook how forklift fleet management can — and should — incorporate personnel-related aspects. When enterprises experience upward trends in accidents, cases of unauthorized usage or other safety issues, fleet management tools can reduce those problems.

Some products on the market enforce access control. Besides telling supervisors which drivers access individual forklifts in real time, technologies can indicate the vehicle’s total operating time and whether someone drove it out of a preset geofenced boundary.

Managers can also drill down and see data about potential hazardous operations. Did someone operate the vehicle with the side door open or not wearing their seatbelt? Maybe they drove the forklift excessively fast or turned corners too sharply. Telematics tools can detect those actions, giving supervisors the data to justify disciplinary procedures.

Solutions also exist that can help people get to the bottom of safety patterns. Perhaps recent accidents occurred three times more during a particular shift than others. A closer look at the data may show more than half the employees typically working at that time have less than six months of forklift operator experience. If so, that information might encourage the HR department to schedule training more frequently and ensure the curriculum is sufficiently intensive.

Solving Compliance-Related Issues

This type of forklift fleet management could also reveal instances of people not complying with probationary requirements. A manager may tell an employee who has recently engaged in unsafe forklift driving that they can only operate the vehicle with their direct supervisor watching. Telematics tools could flag occasions where someone used the forklift without that manager nearby.

These products could also alert people to instances where workers operate forklift types that don’t match the licenses they hold. Getting alerted to those instances could save companies from preventable regulatory scrutiny.  It could also give leaders more peace of mind, knowing problems won’t take them off guard.

Start Improving Forklift Fleet Management Today

Knowing about existing problems with forklift fleet management is the first step to addressing them. The examples above illustrate some telltale signs of room for improvement, plus how companies can take actionable steps for the better. One smart option is to choose one area of forklift operations to focus on initially, then scale up the usage of new solutions once they prove their worth.

No technology can tackle all issues, but data collection and telematics products can substantially elevate overall visibility. When people are more aware of what happens with forklifts used by their organizations, they can verify the return on investment shown by those machines, see how the forklifts enable higher productivity and use data to cut down on safety threats.

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The Best Ways to Avoid Common Types of Packaging Damage

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Ordering packages directly from online retailers is becoming increasingly popular among consumers and businesses. It’s easier than ever to purchase essential products that arrive quickly without waiting more than a few days or even stepping outside. 

However, package damage is common in the shipping and logistics industry. No business wants to ship products to customers only for them to find a damaged package. It can look bad for the company and prompt customers to shop elsewhere. How can shipping companies avoid the most common types of packaging damage to ensure customers receive products in one piece? Here’s how to ensure products reach their destinations safely.

Why It’s Important to Avoid Packaging Damage in Business

In the growing world of e-commerce, companies must understand that package damage is an inevitable part of doing business. No enterprise wants to suffer losses from damaged packages, but it can and does happen. 

Damaged packages are often out of a shipper’s control, but they must do their best to prevent problems for a few reasons. 

First, customers receiving a damaged package may take their business elsewhere or leave poor reviews on popular sites. This can harm a company’s reputation and make it challenging to garner new customers and keep existing ones. 

The cost of replacing damaged products can also be high, and it’s best to avoid paying these extra expenses if possible. No company wants to double their shipping costs if they can prevent it. These factors can significantly impact a company’s financial and market performance. 

Commonly Damaged Items in Shipping and Types of Packaging Damage

Some items are fragile by nature, making them more susceptible to damage than other products. Extra care should be taken with these products to ensure they arrive in one piece. Here are some of the most commonly damaged items in shipping:

  • Decorations
  • Glassware
  • Electronics
  • Musical instruments
  • Jewelry
  • Ceramics 

These types of items are easily breakable, so it’s understandable that companies should take extra precautions to ensure they arrive safely and in good condition.

The common types of packaging damage include rips, dents and puncture marks. Some packages can handle this damage, while others may not. Some boxes are stronger than others, making them good choices for particularly fragile items.

How to Avoid Packaging Damage

Companies and shippers should prevent package damage to avoid sending customers replacement items. They can use several strategies to protect their products in transit to their final destination. 

Pick the Right Sized Box

The size of the box or mailer used to ship a product plays a major role in how safe it is while in transit. For example, a small item in a big box with a ton of extra space will move from side to side while on a plane, truck or delivery van. It could be damaged from too much moving around. 

Instead, small items should be shipped in a box suitable for their size. A mailer should only be slightly larger than the product being shipped. Be sure to use the right box type, whether folding carton, corrugated, full overlap or rigid. 

Wrap Items With Packing Materials

Another suggestion while shipping items to help prevent potential damage is wrapping fragile items carefully with bubble wrap. Anything in the parcel susceptible to breakage should be wrapped individually to reduce the risk of jostling around and breaking during transit.  

Packaging supplies like bubble wrap, foam sheets and air pillows can reduce potential damage. Some organizations even use custom packaging solutions to protect their goods during shipment.

Disassemble Items Before Shipping

Depending on the fragility of the items shipped, it might make more sense for shipping companies to disassemble them first. Individually wrapping each product component can help protect it compared to mailing it fully assembled. 

This method is commonly used for items like furniture, decorations and glassware. It can help protect each piece of the product from damage. 

Clearly Label Boxes as “Fragile”

A common cause of package damage during shipping is when workers loading and unloading parcels are not careful. Occasionally, they will drop or toss boxes to be more efficient. Shippers should affix clear “fragile” stickers on all sides of the box.

Labeling fragile boxes with a sticker will help let workers know the package should be handled with care. This can protect the items inside and reduce the likelihood of damage before reaching their destination.

Collect Damage Data

Companies can use new tech to track damaged packages. They can gain better supply chain visibility by using machine learning (ML), artificial intelligence (AI) and the Internet of Things (IoT). 

These technologies may not prevent damaged packages entirely, but they collect data regarding damage and help companies find innovative solutions to protect items while in transit. 

Track Packages and Use Insurance

Tracking packages and purchasing shipping insurance is another way companies can protect themselves and their products when in transit to customers. 

Many e-commerce brands leverage tracking solutions and will offer customers the option to buy package insurance to cover the cost of reshipping a new item. Products do get damaged, and insurance exists for this very reason. 

Test Packages With Trial Runs

Companies should conduct run trials for their shipments in addition to using the right boxes and packaging materials. They can ship various items to see if they reach their destination in good condition. This could be helpful if a company starts using a new carrier or begins shipping through the mail system. It will know what changes should be made in the process or if a different shipping company should be employed.

Protect Packages to Maintain Profitability

Ultimately, damaged packages are unavoidable for any e-commerce or shipping company. It’s a part of doing business in today’s fast-paced, competitive market, and accidents happen. 

Not all issues can be avoided, but companies should do what they can to prevent packages from becoming damaged. It can help the business maintain a good reputation with customers and keep costs down. Consider using the tips above to protect packages while they make their journey and help them arrive in good condition. 

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Archives, Global Logistics, Global Trade Daily, Warehousing

The Complete Guide to Improving Warehouse Space Utilization

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Improving warehouse space utilization can improve productivity, enhance safety, save floor space and offer numerous other benefits. However, many people see it as a daunting task at first. Here are some practical steps to take.

Use Data Analysis for Better Insights 

It’s not always easy to see where to start when making a warehouse better designed for how people use it. However, data analysis platforms can highlight what’s already working well and where people can improve. 

For example, a data-driven platform could reveal which warehouse areas are the busiest at certain times of the day. It may also show persistent bottlenecks or indicate accidents are more likely to occur in certain parts of the facility than others. 

A data analysis tool will also show a warehouse’s fastest-moving goods, as well as those people don’t need to access as frequently. Such information helps people learn the best ways to reorganize the warehouse and promote smooth traffic flow. 

Warehouse managers can also use data analysis products once the warehouse improvements begin. Studying the statistics will show them if certain changes brought the expected benefits. Payoffs that aren’t immediately obvious aren’t necessarily indicative of failure, though. They could mean people need to wait longer to see the effects or make minor tweaks to see the advantages. 

Data analytics are also useful for maintaining executive buy-in. When leaders see that productivity climbed by a meaningful amount after people made efforts to save floor space or make another change, they’ll be more likely to stay committed to the ongoing warehouse space utilization improvements. Relatedly, they’ll approve more investments to help the company meet its goals. 

What Can Data Analytics Reveal?

A recent study showed respondents had an average of 85.6% peak warehouse utilization in 2022. However, 37% of respondents said their utilization surpassed 95% at peak times. 

Moreover, 47% of those polled said they needed more space in their facilities, making this issue second only to supply chain disruptions. The research also showed storage areas and receiving docks were the two most congested areas, highlighting them as perhaps most in need of warehouse space utilization improvements.

These are just some of the valuable takeaways people can learn by relying on data analytics tools. Whether a leader wants to save floor space or determine the best location for a new assembly line, hard data can take an executive from doubt to determination for change. 

Choose Vertical Systems to Save Floor Space 

It’s also beneficial to recognize what things people should prioritize to make the most significant progress faster. Many leaders realize they can enjoy multiple improvements by examining how to save floor space.  Focusing on that aim could prevent trip-and-fall incidents that lead to hospital visits and give employees the perception of an unsafe workplace. 

Maximizing floor space can also help people discover they have bigger warehouses than they thought. As companies grow, leaders often approve moves into larger facilities that require significant investments. However, the case may be that the respective businesses could have stayed in the same spaces longer if representatives looked for creative and effective ways to save space. 

One of the most impactful ways to save floor space is to store things vertically when possible. Consider a case where a metal-stamping company that kept its dies on a single layer on the floor. Stacking them would have posed a cross-contamination risk of residual oils dripping from a die onto the one below it. Moreover, stacked storage can facilitate metal grit transfer that leads to future product defects. 

However, putting them in a single row on the floor also took up a tremendous amount of space that the company could use in more valuable ways. The company invested in custom industrial racks rated for 40,000 pounds of vertical storage per shelf to solve these problems. 

This shelving solution was fully load bearing, meaning people could place items along the shelf rather than only over the support beams. That feature made these shelves more flexible for current and future needs. Warehouse managers should use this example for inspiration regarding how they might capitalize on vertical space too. That solution doesn’t work for every warehouse area, but it often has impressive effects when deployed strategically. 

Develop a Digital Twin for Better Warehouse Space Utilization

Many people wish they could gaze into the future before making significant changes to a warehouse. Some efforts that seem like the most appropriate options on the surface ultimately fall short because of unforeseen factors. However, people can use modeling and simulations to reduce the chances of such undesirable realities. For example, some logistics professionals use models to optimize their processes and explore new business opportunities. 

One possibility is to create a digital twin of the warehouse, then run various simulations through it before implementing them in real life. A digital twin is a highly realistic, computerized model of a physical asset or location. It could help people experiment with different layouts and how they each affect warehouse space utilization. Perhaps the warehouse currently has a U-shaped flow, but managers believe an I-shaped flow would better support the facilities’ ongoing growth. 

The digital twin could also prevent costly mistakes. McKinsey data indicated warehouses spend approximately $350 billion per year on warehousing. However, the company’s research also showed digital twins could cause a 20-25% increase in efficiency. The businesses test changes in the simulated environment, then get confirmation of which alterations would be most profitable or otherwise beneficial. 

People can see the optimal slotting and production flows or understand how equipment positioning positively or negatively affects overall workflows. Visualizing such details with the mind alone can be challenging. However, digital twins provide the visibility individuals need to identify problem areas and the best ways to cause lasting improvements. 

Warehouse Improvements Take Time But Are Worthwhile 

Revamping a warehouse can wholly change how people use the facility. However, such efforts require significant resources and dedication from individuals at all levels of the organization. Setting periodic milestones for everyone to aim for can be an excellent way to keep people motivated. Adjusting to changes isn’t always easy, but it becomes more manageable when it’s obvious every decision is an action that pushes the organization closer to an overarching goal. 

 

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How to Avoid High Truck Detention Times

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Efficiency is one of the most important traits for any fleet to have but one of the most challenging to achieve. While this is a multi-faceted issue, high truck detention time is among the most significant obstacles to fleet efficiency.

Truck detention, where drivers must sit idle while waiting for their trucks to be loaded, is an almost universal challenge in the industry. According to a 2020 survey, 87% of truck drivers spend 17 to 29% of their possible driving time in detention. Logistics companies must address this issue if they hope to reach maximum efficiency.

Why Fleets Must Shorten Truck Detention Times

This fleet idle time is costly on top of being common. Because waiting time takes away from truckers’ per-mile compensation, many organizations charge fees for excess delays. These typically range between $25 and $50 an hour but can be as high as $250 hourly.

Detention time also has a considerable impact on supply chain efficiency. If a driver has to wait two hours or more before loading the truck, it can cause them to arrive late to their next destination, even missing delivery estimates. These delays can affect client satisfaction. If they’re frequent enough, dissatisfied customers may take their business elsewhere.

These delays also affect truckers, who are already in short supply in many areas. Drivers upset at long idle times they may not get paid for could feel taken advantage of, leading to lower engagement and increasing their chances of leaving the industry early. These factors could also hinder others from entering the sector, worsening the labor shortage.

How to Minimize Truck Detention Time

While common, truck detention time is avoidable in many cases. Logistics companies and their partners can take the following steps to minimize fleet idle times and maximize their agility.

1. Communicate Clearly and Early

Communication is one of the most critical steps in reducing detention time. If all involved parties understand what to expect with each shipment ahead of time, they can work together more efficiently.

Trucking companies should clarify their detention time expectations and rates upfront so their partners can plan accordingly. Similarly, warehouse leaders should communicate their processes, schedules and staffing rates to set more realistic expectations about wait times and scheduling. Going over these factors as early and in-depth as possible will help prevent miscommunication that leads to delays. It’s also important to notify all partners if something unexpected arises to help everyone adjust as necessary. 

2. Maximize Visibility With the IoT

Next, supply chain organizations should embrace the internet of things (IoT) to gain more visibility. IoT tracking solutions offer real-time updates about shipment locations and, in some cases, quality. This level of insight helps plan and adjust more efficiently.

If heavy traffic or other unexpected events delay trucks, IoT trackers can alert warehouses of the situation. They can then reschedule them as necessary or take additional steps to adapt and prevent extensive delays. IoT-driven adjustments like this have helped some fleets dramatically reduce fuel consumption and prevent food spoilage, highlighting the technology’s potential to boost efficiency.

3. Use Routing and Scheduling Software

Other technologies can help reduce truck detention times, too. Some of the most helpful are routing and scheduling software, some of which can connect to IoT tracking data to capitalize on these real-time insights. Even without this connectivity, this software helps fleets manage their schedules more effectively to minimize the risk of delays.

Routing software with artificial intelligence (AI) features can highlight the most efficient paths for each unique shipment, accounting for changing factors like traffic and other deliveries. These AI insights ensure drivers arrive on time, preventing detention from missed pick-up windows. Similarly, scheduling software can automate the scheduling process to ensure fleets pick up and drop off shipments at the most practical times.

4. Stagger Schedules

Another way to minimize fleet idle time with scheduling software is to stagger arrival times. It may be tempting to schedule most pickups for times with the highest productivity and staff availability, but this practice will stretch the workforce thin. It’s better to instead schedule each shipment for when another should be wrapping up.

Staggering schedules ensures a more even workload across the day. This distribution, in turn, helps warehouse staff maintain productivity and ensures each pickup has sufficient staff to manage it. With no dramatic peaks, delays and detention are less likely.

5. Automate Where Possible

Even with a staggered schedule, ongoing warehouse labor shortages can make it difficult to load each truck efficiently. Automation can help. While robots may be more commonly associated with sectors like manufacturing, the warehouse automation market could more than double by 2025, offering a growing number of potential solutions.

Solutions like automated storage and retrieval systems (AS/RS) and automated guided vehicles (AGVs) can pick items faster than human workers while employees load goods onto trucks. Stacking and palletizing robots can prepare shipments for loading while employees finish a previous pickup. Whatever the specifics, automated technologies enable warehouses to accomplish more, even with limited staffing. 

6. Account for Truck Detention Time

Strategies to minimize fleet idle time don’t necessarily have to include complex machinery and purchases, either. One relatively straightforward way to address the issue is to account for detention time when scheduling deliveries and planning routes.

Logistics companies should plan delivery schedules with more allotted time than they think will take to pick up and move shipments. This buffer will ensure any unpredictable detentions and delays won’t cause major disruptions. Because detention rates typically apply to wait times longer than expected, this strategy can also help avoid the high costs of these delays.

7. Have a Backup Plan

Finally, it’s important to create contingency plans in case something unexpected happens. Drivers experience detention time roughly one in every 10 stops on average. Even if carriers and warehouses reduce that figure, these delays are still likely to happen sometimes, but a backup plan will mitigate their impact.

Set a specific, detailed process for adjusting other routes and calling in employees to make up for lost time or productivity during an unexpected delay. This plan should include protocols for communicating with other stakeholders to enable a more cooperative effort and manage expectations.

Reducing Fleet Idle Time Maximizes Efficiency

When fleets reduce their truck detention time, they become more efficient, cost-effective and workforce-friendly. As the logistics sector grows increasingly competitive, those advantages become more important to develop. Following these seven steps will help any fleet minimize their idle time and maximize productivity.

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Automation Strategies That Improve 3PL Warehouse Management

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3PL warehouse management can be optimized like never before with the help of an effective automation strategy. Warehousing and logistics professionals are familiar with many leading automation technologies but may be unsure how to implement them in their facilities. Managers can use a few key strategies to craft a plan that will help tackle today’s biggest challenges. 

Data-Driven 3PL Warehouse Management

Data-driven automation is one of the most valuable automation strategies for 3PL warehouse management. Data is the key to developing a successful strategy tailored to a specific 3PL business’s needs. Collecting and analyzing information can reveal insights about 3PLs’ operations that hint at the best opportunities for automation. 

It can be helpful for 3PLs to conduct comprehensive data collection on their operations before investing in automation technologies. IoT devices can be a highly effective tool for this, with the benefit of potentially being integrated into automation systems. Analytics software is also helpful for compiling and analyzing all the information collected. 

Regardless of the tools 3PLs use, data collection should be a priority early in an automation process. A wealth of information on a 3PL’s operations can help establish a road map and indicate clear goals for new technologies. 

For example, tracking how many packages are moving through each stage of the picking and packing process allows warehouse managers to discover bottlenecks. This could be due to the organization of the warehouse, the needs of a specific product category, a lack of adequate staff or any number of factors. Automation is often the solution, and data is the key to discovering these challenges. 

Remember Back Office Automation

Robots are often the first thing that comes to mind when people think of automation. However, 3PL warehouse management can benefit extensively from back-office automation, including robotic process and logistics tools. In fact, intelligent automation behind the scenes can result in a 97% reduction in hours spent on back-office tasks and a 50% reduction in invoicing and processing costs. 

A 3PL warehouse management system is often a great place to start. This is a software program that streamlines and automates operations. It integrates real-time data from the warehouse and automates inventory tracking, employee scheduling, invoice management and other day-to-day tasks. 

Logistics software and digital twins complement a warehouse management system in 3PL automation strategies. These tools can make a monumental difference in planning and executing operations.

Logistics simulations and digital twins allow 3PLs to test automation strategies without disrupting operations in the physical warehouse. They can fine-tune facility layouts and routes for order-picking robots to be as well-optimized as possible before deploying them in the real world. Logistics simulations and digital twins can also help discover inefficiencies and bottlenecks that may present valuable opportunities for automation. 

Additionally, 3PL warehouse management can benefit from robotic process automation, which involves using software or programs to automate tasks. This is similar to the automation features available in many warehouse management systems. RPA doesn’t have to involve physical robots, either. It is simply about delegating monotonous, repetitive tasks to software programs, freeing time for more important tasks. 

Integrating Physical Automation Tools

3PL warehouse management can also benefit from physical automation tools, such as robots, RFID tags and sensors. These physical automation tools can be particularly useful for tackling one of the biggest challenges facing 3PL warehouse management today: labor shortages. 

Surveys indicate that 73% of warehouse operators are struggling to find enough staff to keep up with demand. The e-commerce boom is great for business, but it is also making efficiency, optimization and staffing major challenges for managers. 

Robots are often the key to bridging the labor gap in 3PL warehouses. Managers must take the time to ensure they choose the right type of robots and focus on only one or two at a time. It can be helpful to have a specific goal, such as a bottleneck the machines could help resolve. 

Integrating physical automation tools like robots into a warehouse requires careful planning and training to ensure employees understand how to work with them. Logistics simulations and digital twins can help organize the routes autonomous warehouse robots navigate. A well-coordinated robotics strategy can result in more streamlined management and efficient operations. 

However, robots aren’t the only 3PL warehouse management automation tool worth considering. Inventory monitoring is a big part of managing any facility. IoT sensors, RFID tags and management software can automate the process of monitoring and tracking inventory levels. 

For example, IoT sensors can monitor perishable or sensitive inventory and send alerts if something goes bad. Digital tags, such as IoT devices or RFID tags, can simplify inventory management by moving it to digital channels where tasks can be automated. For instance, an inventory management program can automatically send out a restock notification if a certain product falls below a set threshold. 

3PL Warehouse Management With Smart Automation

Smart automation strategies make 3PL warehouse management easier, efficient and effective. These tools can help free up time, money and resources behind the scenes and on the warehouse floor. A data-driven approach to automation can ensure managers have the insights they need to start their strategy strong and continuously improve it over time.

 

warehouse management You Need to Communicate Your E-Commerce Forecasting to Your Fulfillment Center
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You Need to Communicate Your E-Commerce Forecasting to Your Fulfillment Center

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Fulfillment centers need insights just as much as executives and investors. In the e-commerce space, there can be global operations for warehouses in a single location or hundreds. Regardless of the size of the enterprise, e-commerce forecasting can provide projections to organize inventory and improve a business’s reputation and revenue. 

Forecasting order quantity means efficient stocking and expedited deliverables. Curating long-term business relationships with departments packing and shipping your products — internal or external — is advantageous for continued growth and support. The best way to do this is by communicating the forecasts with the fulfillment centers to drive results.

The Significance of Understanding the Supply Chain

Every point during the supply chain is a variable. Each facet creates accurate forecasts, from third-party logistics to an internal fulfillment center that packs and ships goods. 

A business cannot just rely on last year’s sales numbers to create a comprehensive forecast. Expenses, outliers and unexpected scenarios must be considered for it to be sturdy. It’s crucial to communicate e-commerce forecasting to your fulfillment center because it can help you understand the variables in its step of the process:

  • Sourcing multiple materials puts deliverability at risk.
  • International merchants need to allot charges to process payments.
  • Overseas shipping creates delays in deliverables.
  • Businesses operating in your country may have higher production costs.

Fulfillment centers must know that most revenue comes from existing customer bases — this is the foundation for projecting accurate e-commerce forecasting. This grows as a company acquires new customers, creating exponential growth in the baseline for projections. Communicating this growth as it happens to fulfillment centers will help their momentum as your e-commerce business ages.

Forecasts will also help fulfillment centers become aware of your marketing strategies. This creates a more intimate relationship between fulfillment, analytics and marketing teams for the most effective satisfaction. This ties into their work, as owned audiences are people you could convert using free methods like email and social media marketing. 

Companies can make predictions about the success of these campaigns. It’s essential to consider paid acquisition methods such as unsolicited offers and conversion rates based on how much your teams are investing in marketing for your e-commerce.

The Challenges in E-Commerce Forecasting for Fulfillment

Considering all these participants equally will create more accurate data for your fulfillment centers, but it isn’t just about that initial forecast delivery. Communication includes when adjustments are made and new data is measured. The consumer market is not impossible to predict, but the one constant forecasters can rely upon is oscillations.

Sharing this information can help fulfillment centers prepare for dips and spikes in sales and inventory, but it is sometimes hard to adapt. However, it may become more commonplace if every company becomes aware of how e-commerce forecasting could help change fulfillment center productivity. Fulfillment centers could adjust by changing hiring methods or executing updated storage solutions based on these forecasts.

Demand forecasting will be the focal point of these adaptations, as the different variations detail diverse business outcomes:

  • Passive demand: Using past sales to predict future demand
  • Active demand: Using the competitive environment and production rapidity to predict demand and create growth plans
  • Long term: Focusing on a long time frame, usually more than a year, to help provide an exhaustive picture of seasonality patterns and output
  • Short term: Focusing on a single day or small time window, such as a holiday
  • Macro and micro: Analyzes outside forces that could potentially interrupt commerce, taking a micro or macro lens depending on the company’s objectives
  • Internal business: Analyzes internal assets to see if they can keep pace with demand, including staffing needs

Companies could tell their third-party or internal fulfillment centers there will be a severe increase in inventory. This could allow them to face that challenge by implementing new systems like automated warehouse picking or more useful order management software to streamline stock control.

Another challenge comes with the attainment of the forecast. Developing it can take time, as market research happens and experts create projections based on that insight. In the meantime, fulfillment centers that could become reliant on these projections to forecast order quantities may be waiting in limbo while it’s perfected. 

Imperfect, rushed or incomplete forecasts could mitigate the boom forecasts typically provide for fulfillment centers and decrease inventory expenses. So many available fulfillment centers have to juggle this, mainly if they house multiple e-commerce entities.

How Will the Forecast Order Quantity Help Your Fulfillment Center?

E-commerce forecasting can help fulfillment centers prepare for the busiest seasons — for some, that’s related to holidays and for others, it’s connected to trends. They must be all-encompassing, usually outlining more than the average number of units or a simple percentage increase over the previous year. What happens if a celebrity influencer stops endorsing your product and that affects sales — how will your forecast reflect this hurdle so fulfillment centers know how to acclimate?

A forecast also details promotions, sales and event fluctuations that could affect forecast order quantity. Depending on the scope, all estimates should gradually be developed immediately after the previous sales period. They should consider everything from competition to season, considering the type of products and the market available for them in the present.

Fulfillment centers will appreciate forecasts that clearly outline their company goals and standards, so they know inventory specs and what they can do to maintain a trusting relationship. Though it may be a third party or not, they have just as much, if not more, of an effect on customers than the business itself.  

Your fulfillment center will appreciate you communicating inventory needs and expectations. It will help them organize and remain compliant with contractual agreements, especially as they navigate an unprecedented demand increase for e-commerce fulfillment responsibilities. Better communication equals greater organization, leading to snappier shipping and better customer satisfaction.

It will also create accountability across sectors. Inconsistent data is a considerable issue in supply chains as products exchange countless hands. Communicating with fulfillment centers about expectations lets them report back with accurate information because it was from you, not a third party. It’s another set of checks and balances to ensure every item reaches its destination.

E-Commerce Forecasting for Fulfillment Centers

Creating a business that will survive in a sea of many means you must communicate your e-commerce forecasting to fulfillment centers. Improve customer loyalty by creating a solid forecast foundation. You can decrease financial risk because everyone is on the same page regarding sales expectations.

This will create strong business relationships, which is better for any bottom line and the customer who receives the package.

 

How to Submit ISF Filing to Customs and Border Protection
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How to Submit ISF Filing to Customs and Border Protection

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All importers are required to submit ISF filing for cargo bound for U.S. ports. ISF, or Import Security Filing, is a documentation system that ensures all cargo passing through U.S. ports is legal and safe. ISF can sound complicated at first, but it comes down to a single form that gets submitted electronically. This guide will cover all of the details of how ISF works, what data is required, and how to submit ISF filings.

What Is Import Security Filing?

Import Security Filing and Additional Requirements is a rule established by U.S. Customs and Border Protection (CBP). Also known as ISF or 10+2, this rule requires importers and agents shipping cargo to the U.S. over ocean or sea transportation to file information on their cargo with CBP. Complying with ISF allows CBP to ensure that no illegal cargo is passing through U.S. ports.

ISF only applies to cargo shipped via ocean or sea – it does not apply to cargo imported by air. However, ISF does apply to Foreign Cargo Remaining On Board (FROB), Immediate Exportation (IE), and Transport & Exportation (T&E) shipments. The data needed for these types of shipments differ slightly from the requirements for standard inbound cargo.

ISF Importer Responsibilities

The importer for a cargo shipment destined for the U.S. is responsible for completing an ISF filing for the shipment. Importers are generally the owner, purchaser, or agent responsible for the goods being shipped. The requirements are fairly straightforward, but there are two different versions of ISF for different cargo types.

Regardless of the cargo type, importers are required to submit their ISF filing at least 24 hours before the shipment departs for its journey to a U.S. port.

ISF 10+2 vs. ISF 5

U.S. Customs and Border Protection has two versions of ISF: ISF 10+2 and ISF 5. ISF 10+2 is the most common, applying to standard inbound cargo. ISF 5 requires fewer data to be submitted and applies only to transit cargo, including FROB, IE, and T&E shipments. Any importer who is unsure which category their cargo falls under should contact U.S. Customs and Border Protection.

ISF 10+2 applies to all cargo, including goods that are entering the U.S. or being shipped to a Foreign Trade Zone. The ISF 10+2 form requires 10 data elements related to the shipment: Seller, buyer, importer of record number or FTZ applicant ID number, consignee number, manufacturer or supplier, ship to party, country of origin, and Commodity Harmonized Tariff Schedule number. The ocean line must provide two additional data elements: The vessel stow plan and container status messages.

ISF 5 is similar but doesn’t require as much data. This shorter form applies only to transit cargo. ISF 5 requires five data elements related to the shipment: Booking party, foreign port of unlading, place of delivery, ship to party, and Harmonized Tariff Schedule number.

All of this information should be readily available to the importer. However, if the importer is unable to find their Commodity Harmonized Tariff Schedule number, they can refer to the U.S. International Trade Commission database for the schedule and more information. Any other missing information will need to be obtained from the other parties responsible for the goods being shipped. If this person is not the agent completing the ISF filing, the importer will need to contact the cargo’s owner and purchaser.

Consequences of Failing to Comply With ISF

Failing to properly submit ISF filings can result in fines of $5,000 or more, as well as potential penalties on the cargo itself. U.S. Customs and Border Protection may withhold the release of cargo that does not have an ISF filing submitted. Additionally, cargo that arrives at U.S. ports without its ISF filing may be refused an unlading permit and may even be seized by CBP officials.

How to Prepare and Submit ISF Filings

Preparing your ISF filing is a straightforward process that should take importers only a short time to complete. Make sure to get started well before the shipment is scheduled to depart, just in case any data is missing or difficult to track down. Have contact information on hand for everyone connected to the shipment, particularly the owner and purchaser.

1. Gather All Necessary Information as Soon as Possible

The first step to submitting an ISF filing is to gather all of the necessary information for either ISF 10+2 or ISF 5 as soon as possible. Refer to the section above for the complete list of data needed for either ISF format. Most of this should be readily available, but be prepared to contact the shipment’s owner or purchaser. Don’t wait until the last minute to gather ISF data.

2. Choose a Filing Method

Once all of the necessary information is organized, it is time to choose a filing method. Submitting an ISF filing is similar to submitting a tax return; importers can do it themselves or they can hire a third-party agent to submit their form for them.

There are several third-party services available for this purpose, but U.S. Customs and Border Protection also operates a secure online portal where importers can submit ISF filings themselves. Either way, ISF data must be submitted electronically – there is no paper submission option.

3. Submit ISF Filing

Once the importer has selected a filing method, they can go ahead and submit their ISF filing. Remember to double-check all of the data before either submitting or giving the data to an agent or third party to submit. If the data is found to be inaccurate, it could result in fines or penalties from CBP.

4. Tracking ISF Status

Importers can use the CBP portal mentioned above to track the status of their ISF filing. CBP typically does not update the tracking status every step of the way. Importers are simply notified once the ISF data is either accepted or rejected.

Import Security Filing Common Questions

The ISF submission process is usually easy and straightforward with the right information on hand. However, it is common to still have a few questions afterward.

What If ISF Data Changes After Submission?

ISF data can change in the event of last-minute shipping changes or alterations to the goods being shipped, or simply if more accurate data become available. Incidents like this are especially common today due to ongoing supply chain disruptions and delays. Emerging supply chain technologies like IoT can help importers maintain accurate, live status information on their shipments, which may reduce the need for last-minute ISF changes.

If the ISF info does need to be updated, importers have some flexibility to do so. U.S. Customs and Border Protection allows importers or agents to update their ISF data up to 24 hours before the cargo arrives at a U.S. port.

Is There a Fee to Submit an ISF Filing?

Yes, there are fees to submit an ISF filing. Importers have to pay an ISF bond as well as a filing fee. The exact amounts for these fees vary slightly, but the total amount is typically up to $120.

Stay Safe by Submitting Your ISF Filing

Importers protect their cargo, their business, and their customers when they submit ISF filings. U.S. Customs and Border Protection designed the ISF filing system to ensure only legitimate cargo passes through U.S. ports. Submitting the necessary data does not take long and maintains safe and legal shipping standards for importers, port employees, and American customers.

 

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How to Successfully Incorporate AI in Procurement

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People looking to optimize their procurement processes sometimes turn to artificial intelligence (AI). This option is not yet widespread, but it’s becoming more common, especially as decision-makers explore new technology investments. Here are some things for individuals to keep in mind before and during their use of AI in procurement. 

Know That AI Does Not Replace Human Input and Expertise 

Artificial intelligence is a subject with much hype surrounding it. The excitement and buzz are not wholly unwarranted. When used well, the technology can change business processes and results. However, people must remember that even the most advanced AI cannot and should not replace human judgment and knowledge. 

The best approaches involve AI supporting human input and helping them make better, faster decisions. Decision-makers mistakenly believing AI can work unattended without ongoing supervision from humans will almost certainly end up disappointed due to unrealistic expectations. 

A good starting point is to consider any areas of procurement that need improvement due to a high probability of errors and inefficiencies. Taking a closer look at those shortcomings can help people understand what causes the issues and how AI might help resolve them. 

Moreover, it’s helpful for people to designate individuals or teams who will oversee the AI deployment process and solve issues that arise. Carefully planned tech implementations are more likely to proceed with fewer problems, but people should still expect a few surprises. Having a point person or team to solve those mishaps will prevent the matter from getting out of hand. 

Work With Experienced Service Providers

People at many organizations are still relatively new to using AI in procurement or for any other reason. That’s why it’s smart for them to find and hire companies or individuals with the experience to guide them through the project from start to finish. It’s ideal if these selected service providers have direct expertise in applying AI to similar use cases or at least have worked with other clients with procurement needs. 

In one case, the U.S. Department of Health and Human Services (HHS) worked with an external consultant as part of a larger procurement improvement process. The service provider combined microservices and AI to meet the department’s goals. An AI algorithm enabled the department to compare and contrast previous purchases. It analyzed the content of more than 2 million current contracts and assessed 5-7 billion words. 

Since the AI used language directly from existing contracts, it allowed procurement professionals to more effectively enter into new agreements with suppliers or to extend current partnerships. 

The tool’s design and functionality kept user-friendliness at the center. People interacting with it don’t need to know the exact terms to search for. Instead, they go through a guided process that helps them find the most relevant information quickly and easily. 

This example shows why it often makes sense to seek providers with the expertise to create solutions that fit specific needs. Finding a company with the right experience often speeds the development process and improves the chances of the AI product working as expected. 

Agree on the Primary Objectives 

People should not apply AI in procurement solely because they know competitors already have. Instead, they must develop several concrete reasons why they want to use artificial intelligence and what they’ll achieve in the best-case scenarios. 

One way to do that is to figure out how AI fits in with a company’s main business goals, whether those milestones occur in the short or long term. All organizations have specific priorities, but sustainability is an issue coming to the forefront more often lately. That’s true in terms of procurement and throughout the wider supply chain. For example, AI might identify suppliers with the lowest environmental impacts or those with less waste than competitors. 

It’s not always easy to zoom in on those finer details without technological assistance. The beauty of AI is it can process huge quantities of data much faster than humans working independently. A well-trained algorithm might confirm whether a company has a long history of operating sustainably or could uncover some previously unnoticed red flags. 

Everyone involved must agree about the AI’s primary functions, regardless of whether a company’s goals relate to sustainability or other matters. Ironing that out early will make it easier to get executive buy-in and ensure top-down support for the technology from the beginning. 

Seeing how similar companies and industries have used AI in procurement could provide some necessary inspiration. For example, a hospital will have different procurement processes than a government agency.

Assess How Using AI Could Boost Resilience 

COVID-19 and numerous other factors have made supply chains far less stable than they once were. There’s no easy fix for that challenging situation, but AI could reduce some uncertainties. 

For example, people have successfully used supply chain AI tools to improve demand forecasting. Companies are then less likely to run out of the supplies they need or have too many of certain items on hand. 

However, AI could increase resilience in other ways, too. Perhaps a company has previously had issues with counterfeit parts or supplies. Artificial intelligence is excellent at spotting deviations from the norm, picking up on things people can’t. 

One product developed to screen for fake luxury handbags assesses anywhere from 500 to 1,500 features per item. It then gives the results of a check in as quickly as 60 seconds, although it sometimes takes an hour, depending on the brand. The tool also gets smarter with use. 

Even the most sharp-eyed and conscientious people can’t check such minute details so fast. There’s also a high likelihood of individuals getting fatigued and missing out on flaws or fakery. AI is not foolproof but does not get tired or distracted like humans.

These are a couple of the many ways companies can and have depended on AI in procurement to become stronger and less vulnerable to problems. People should set key performance indicators (KPIs) related to the changes they want to make in the organization with the help of AI. That will make it easier to see if the AI is working as expected or needs further tweaking. 

Using AI in Procurement Requires a Careful Strategy

Artificial intelligence-related procurement applications certainly have potential. However, people cannot expect to have AI deployed within their organizations in a matter of weeks. It could take months to figure out the best ways to use the technology and get people accustomed to working with it. That’s K. It’s far better to take care when using AI than to rush the rollout and risk experiencing frequent setbacks.

Author’s Bio

Emily Newton is an industrial journalist. As Editor-in-Chief of Revolutionized, she regularly covers how technology is changing the industry.