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Supply Chain Professionals: Boxzooka International Ecommerce & Fulfillment

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Supply Chain Professionals: Boxzooka International Ecommerce & Fulfillment

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Located on the east coast, Boxzooka Fulfillment and Global Ecommerce provider takes managing client requests to the next level through a one-of-a-kind tailored approach offering back office operations for online retailers, order fulfilment for both direct consumer and direct B2B wholesale order fulfilment, while providing automated, customized solutions. Through this approach, Boxzooka not only creates and maintains competitive advantage as a leader in managing the flow of goods, the company boasts an impressive volume of loyal clients who don’t have to seek outside sources to get their needs met. By taking the extra step out of the process, Boxzooka provides an all-in-one solution. The company isn’t afraid of investing more into their customer needs, as they look at the long-term impact it has on their customer base. In other words, customers always come first.

“We’ve accomplished building and maintaining a business with near 100 percent client satisfaction rate,” Founder Brendan Heegan said. “Most warehouse 3PL operations have an 80/20 rule where 80 percent of the revenue is coming from 20 percent of the clients – those are the ones that get the VIP treatment, if you will, and the other 80 percent of their clients get scattered support where some days are good, and some days are bad. They get a lot of client complaints and we don’t have that because everybody’s getting an equal amount of support and attention, just what they need and more. We don’t lose clients.”

Boasting their very own technology, the integrated game-changing capabilities built into their platforms provide customers with an unmatched global reach, eliminating the need for assistance from an outside source or 3PL. The company’s custom technology platform serves as a major differentiator among competitors and as a significant driver behind their robust customer base and retention strategy.

“We own our own technology and we developed everything in-house. Our systems are comprised of a warehouse management system that handles inventory management movements, receiving and shipping out orders. We’ve also built-in a transportation management system (TMS) – companies might use ShipStation or Stamps.com, but we have all that built in to our warehouse management system so there’s no need for a secondary system in order to perform that function,” Heegan explained. “The platform also enables retailers to open the doors to the global market with the turnkey solution that we provide. “

Beyond automation, Boxzooka fosters an environment where employees aren’t limited to one silo. By fully integrating the ins and outs of operational processes, the company fully utilizes the talents and abilities of each employee.

“We cross train everybody, all the time, on every function so that all of our people can do anything at our warehouse. They’re constantly being thrown at different things. That probably decreases our efficiency and increases internal costs a little bit, but we look at it through the perspective that if we lose a team member, then that function doesn’t break and it allows us to shift labor around, making us operationally very competitive. We have a great service because everyone can do everything in our warehouse.”

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Acquisitions, Archives, Global Trade Daily

GlobalTranz Boasts Ninth Acquisition in Two Years

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Circle 8 Logistics is the latest company to be added to the list of acquisitions for leading third-party logistics solutions provider, GlobalTranz. The company confirmed the acquisition this week, confirming added support for expansion efforts specifically in the Chicago region while adding value to 3PL initiatives.

“Circle 8 has a strong history of providing its customers with superior services and logistics solutions,” said Renee Krug, CEO of GlobalTranz.  “Circle 8 has combined a focus on people, processes and technology to drive growth via unique solutions for its customers and strong carrier partnerships. The combination will further accelerate our growth and market leadership in the 3PL industry,” she added.

Circle 8 is a third-party multimodal transportation and logistics services provider with a reputation of ethical business practices combined with its extensive history of satisfied customers represented in its 98 percent customer retention rate.

“Since the founding of our business in 2001, Circle 8 has provided innovative solutions with honesty and integrity,” said Mike Lewis, co-founder and co-CEO of Circle 8.

The Lombard-based company represents the ninth acquisition for GlobalTranz since January 2017.

“GlobalTranz is clearly executing on its strategy of driving growth both organically and via complementary, accretive acquisitions,” said Bob Farrell, executive chairman of GlobalTranz. “Our unique hybrid combination of the best independent freight agents in the industry with our strong direct channels is a clear differentiator. Circle 8 will further enhance our channels to market.”

Archives, Global Trade Daily, News

Space Cargo Group Acquisition Confirmed for Global Forwarding Efforts

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With global expansion as the primary goal, C.H. Robinson confirmed its acquisition of the Space Cargo Group this week, adding more global forwarding strategies to the company. As a leading provider of logistics, international freight forwarding, customs brokerage and more, Space Cargo provides significant added value.

“The acquisition of Space Cargo advances our strategy of expanding our presence globally,” said Bob Biesterfeld, Chief Operating Officer and CEO-elect of C.H. Robinson. “We look forward to working with Space Cargo’s customers to offer our full suite of logistics services to enhance their supply chains. Space Cargo’s leadership, expertise and strong customer and carrier relationships, combined with C.H. Robinson’s global service offerings and network, will also create more robust capabilities for our customers and add scale to our business.”

“We are excited to join C.H. Robinson, the best third-party logistics provider, and build on the business we have done together for more than 10 years,” said Jordi Pellice, Chief Executive Officer of Space Cargo. “We believe this partnership will position us to better serve our customers and promote continued growth by leveraging C.H. Robinson’s worldwide network and diverse service offerings.”

 

Source: C.H. Robinson

 

Archives, Global Logistics, Global Trade Daily

R2 LOGISTICS: SETTING THE BAR HIGHER

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In a market with increasing demand for disruptive technology and automated solutions, R2 Logistics understands not only how to create these solutions, but how to create the best version that exceeds customer expectations. The award-winning third-party logistics provider, which is known for its multi-dimensional variety of specialties from Managed Transportation, Full Truckload, Less-Than-Truckload (LTL), to Expedited and Air Freight, Intermodal, Ocean and Specialized Hauling, boasts a TMS that takes operations one step further.

“Roughly 90 percent of companies with less than $250 million in revenue do not utilize a Transportation Management System today,” explains Frank Dreischarf, vice president of Supply Chain Solutions at R2 Logistics. “Our TMS is specifically designed to bring transparency, reporting, mode and carrier management to these customers. Many of these companies still operate off of paper routing guides and Excel spreadsheets with little to no KPI’s surrounding one of the largest line items on their P&L, freight.”

Additionally, R2 Logistics offers their TMS on any device, increasing visibility for their customers while removing all barriers. This feature is one of many that serves as a differentiator, setting the company apart from the others in the logistics sector. R2’s customers are assured they have the knowledge needed to understand every dollar coming in and going out, instantly.

“From Mode selection, quick quote capabilities, document retention and track and trace, R2’s TMS provides all of the functionality that you would expect from a cutting edge TMS,” Dreischarf says. “Where we really excel though is in taking the transportation data and presenting it in an automated way that helps to speed up the pace of decision-making while at the same time providing unparalleled transparency into a shipper’s transportation spend.”

Dreischarf adds: “With most other TMS systems, a customer can expect to receive freight bill payment data, and then it is up to the customer to hire an infrastructure of analysts to make sense of the data. R2’s TMS system is designed to automate much of that function, allowing shippers to concentrate their limited resources on managing their operations rather than worrying about collating data.”

Customers are always the focal point for R2 Logistics, from automation and transparency, to satisfaction and reputation. As identified in their 10 company principles, at No. 1 is to obsess over the customer while creating competitive advantage. From the early days as an expedite carrier for Tier 1 automotive manufacturing to the multi-dimensional company it is now, R2 has stuck to the core of the business: customers.

“In all things that we do, we consider the customer’s needs first,” Dreischarf says.  “We ask ourselves, ‘Will this benefit the customer? Does it eliminate a headache for them? What can we do to provide a better experience?’ If you are passionate about adding value to your customer and putting them first, it makes everything else easy. It was this beginning that drove our ‘Customer First’ and ‘Do it Now’ culture.”

As a solutions-based and results-oriented company, R2 understands quality comes from every part of a business and must start at the employee level. With a significant amount of concern looming over retaining competitive talent, R2 provides some insight to their success.

Dreischarf notes, “As we have continued to grow over the past decade, we knew we wanted to maintain that high service culture. We spend a significant amount of time on recruiting, training and developing our people to ensure that we hire individuals who have a passion for service and then have all the tools necessary to provide great service to our customers.”

For future goals and planning, R2 Logistics aims to stick with what works while creating innovative ways to exceed customer expectations and demands. As Dreischarf puts it, “Our short-term and long-term goals can best be summed up as ‘to continue to grow, add value to our customers and always be the best 3PL in the business.’”

 

Frank Dreischarf is a graduate of The Ohio State University, where he dual majored in Operations Management as well as Transportation and Logistics. He started with R2 Logistics in 2017, when he filled the role of Vice President of Supply Chain Solutions. Frank has 20-plus years of distribution and supply chain experience, and has spent the past 10 years managing $200 million+ transportation spends. In his current role, Frank is responsible for developing and managing R2’s multi-modal and Supply Chain service offerings, which include: LTL, Reverse Logistics, inbound Supply Chain Logistics and Distribution, Intermodal and Final Mile Delivery. Frank believes logistics is a relationship-based business and the foundation for any successful relationship is integrity and trust. In his own words, “That means doing what you say you will do, always seeking to find and add value, and to treat others as you want to be treated.”

3pls, Archives, Global Trade Daily

RSL AND THE COMPETITIVE ADVANTAGE OF ORDER FULFILLMENT

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Order fulfillment can be labeled as the least appealing part of the e-commerce lifecycle. However, as unappealing as it is, order fulfillment is integral to the shopper and retailer. On its simplest level, an order that is placed must be shipped out. So, how can an order fulfillment 3PL be a competitive advantage for retailers?

Rakuten Super Logistics (RSL) is a leading 3PL that operates a nationwide network of 12 order fulfillment facilities. With such an expansive network, RSL is uniquely positioned to provide the competitive advantage that many retailers need.  “The RSL network opens the marketplace to choice and flexibility,” says Michael Manzione, CEO of Rakuten Super Logistics. “Scaling up and down is invaluable and, depending on your size and need, you can utilize our two-day delivery network or drill down to further locate your product closer to the end consumer.”

While RSL is among the 3PLs with the most expansive U.S. networks, they are not stopping there. They recently announced plans to open an additional six U.S. facilities by the end of the year. Their expansion will include the major metropolitan cities of Houston and Los Angeles.

“Our continued expansion into major metropolitan markets is a commitment to our customers,” Manzione says. “Our larger footprint will facilitate our ability to deliver our clients product to their customers via next day ground and even same day in some cases.”

Meeting a client’s demand is always a priority. This is evident in RSL clients that practice Just In Time (JIT) inventory from overseas. When executed properly, JIT is a competitive advantage as the inventory system increases efficiency and decreases waste by receiving product as it is ordered, thereby reducing inventory costs.

Rakuten Super Logistics’ 12 facilities are all located near major shipping ports, which reduces the time from when a product enters the country to when it is received in the warehouse. That close proximity to major container ports allows RSL clients to keep lower inventory levels, thereby reducing their costs while leaving room for scalability.

Scalability is a huge advantage for retailers that have seasonal lifecycles. Take Black Friday as an example. In 2018, Black Friday e-commerce sales in the U.S. topped $6.2 billion, dwarfing the $5 billion in 2017 Black Friday sales.* The strain on 3PLs was enormous but managed through valuable resources. However, many retailers who managed order fulfillment in-house could not meet the increased customer demand.

Operating a vast network of facilities, RSL provides more than just the ability to scale. It provides significant cost savings to its clients. “Our approach to serving the small to middle-size e-commerce companies allows them to compete equally with their larger competitors at a competitive rate,” says Manzione.

Rakuten Super Logistics negotiates shipping rates with the major carriers based on their large-scale shipping volumes. This means that when an e-commerce retailer partners with RSL, they receive the reduced, negotiated shipping rates.

“With the USPS First Class Packages service structure change to zone-based pricing, all e-commerce retailers must consider how to locate their product closer to their customers,” Manzione notes. The zone-based pricing structure will leave many retailers sticker shocked–the cost to ship a one-pound package from LA to New York will be significantly higher.  Leveraging Rakuten Super Logistics’ shipping rates will help keep these costs more manageable.

The savings isn’t always bottom line either. “We have built a great two-day ground network and now want to offer additional choices for those seeking same day and next day delivery, while maintaining lower shipping costs,” Manzione says. “Technology is the key to our success. In 2018, we implemented ‘picker-robots’ developed by California-based inVia. The picker robots help increase production and order accuracy. Technology and innovation have been the backbone of Rakuten Super Logistics. We continue to implement the latest technology.”

Manzione continues: “The exponential growth in e-commerce couldn’t have been accomplished without significant changes to logistics. Rakuten Super Logistics has been on the forefront of 3PL innovation; from using robotics to zone skipping, Rakuten Super Logistics provides clients with a competitive advantage to succeed in the tough online space.”

Source: Statista

3pls, Archives, Global Trade Daily

LET’S COUNT THE WAYS 3PLS ADD VALUE TO YOUR COMPANY’S WAREHOUSING AND DISTRIBUTION PROCESSES

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Growing pains aren’t just for new businesses. As any experienced business leader will tell you, even a well-established business will run up against its share of challenges from time to time. One such challenge is often inventory management, or more specifically how to process that inventory in a timely and cost-effective manner. That’s where third-party-logistics, or 3PLs, come in.
Third-party logistics is the outsourcing of any logistics services, from shipping to warehousing and distribution. But how can outsourcing help your business? After all, it’s just going to cost more money, right? Not necessarily—and even when it does, that investment is usually money well spent.
If you’re curious about how 3PLs can add value to your company’s warehousing and distribution processes, here are some of the top reasons you should consider switching operations to one.

They help alleviate those growing pains

Having a 3PL provider host your warehousing and distribution options allows businesses of all sizes to grow without worrying about one of the most crucial aspects of growth: inventory. By transporting inventory from ports or domestic manufacturers to the warehouse or straight to your business, 3PLs save you time, labor and even the ability to expand without physically expanding your site. On the flipside, are you ready to scale back on seasonal inventory? Warehousing with a 3PL will allow you to eliminate unneeded or unwanted space without having to pay for extra overhead you no longer need.
An added bonus? Working with a 3PL provider can help generate income, because thanks to an expanded delivery network, your products can reach more customers in more places, and at a faster speed than in-house logistics may be capable of.
This efficiency means that seasonal items arrive in season, trendy items arrive before the trend is over.

Less investment

Yes, 3PLs are an investment in your inventory management processes, but that investment is often significantly less costly than investing in your own logistics operations. When you outsource to a 3PL, you eliminate the need for manpower, vehicles, storage overhead, tracking and inventory software—and the list goes on.
For one generally-lower rate, you benefit from the expertise of 3PL professionals who know what they’re doing because it’s all they do. That’s at least five fewer headaches for you and your business.
But saving money isn’t the only major savings using a 3PL provider can afford you. It also saves your time—time you could be using to focus on running your business. Third-party logistics providers are more efficient at what they do, so you can be more efficient at what you do.

They offer value-added services

With many 3PLs, your warehousing doesn’t just end at shipping and storing. Third-party logistics providers often offer far more than just the basics and can customize the services to your individual business needs. Plus, with a recent push toward VIP and a la carte services, there has never been a better time to work with a 3PL provider.
These programs allow you to tailor your logistics package to your business’ individual needs—trimming unnecessary services and replacing them with services that can really benefit your business. Examples of VIP services include priority loading and unloading at the ports, rush delivery and more.

Less technology

Since when is less technology a good thing? When it costs your business tens of thousands of dollars to purchase additional logistics software to help with the logistics and inventory process. Why spend your own money when a 3PL provider already has cutting edge software that likely works more efficiently than any software your business would need to invest in?
But there’s more because once you get that brand-new logistics system, you must then train your workers to use it—another issue you won’t run into with a 3PL provider. Using a 3PL affords you the luxury of hitting the ground running with a business that lives and breathes exactly what you need. After all, what’s the point of operating your own logistics if it doesn’t make your business run more efficiently or even slows productivity?
Another perk to relying on your 3PL’s tracking software is better visibility for your customers, who can track their orders as those orders move along the supply chain.

Better transparency

Along with leaving the inventory management technology to the experts, switching to a 3PL usually offers you more accurate tracking information about the status of your inventory. This is because most 3PL operations have better shipment tracking software. This allows the business customer to access real-time information about the status of their product from ship to port to warehouse and on to the end user; all the tracking information you need is right at your fingertips, without having to check each stage with multiple providers or invest in costly logistics software.
It can be nerve-wracking to hand over the reins of your logistics operations to an outsourced, third-party provider, especially if you’ve been handling your logistics operations in-house. But when you’re doing business with experts in the industry, the cost of switching operations to a 3PL usually outweighs the risk.
All of this for less money than bringing your logistics in-house? It seems too good to be true, but the proof is in the numbers.
Think of it this way: Outsourcing your logistics operations to a third-party provider is a lot like those sale sites where the more people buy in, the lower the price goes. But instead of driving down the cost of a vacation, your money is pooled with other businesses who use the same 3PL, driving down the cost for everyone. All this for the expertise of professionals whose hands-on approach allows you to remain as hands-off as you want to be and focus on what’s really important: your business.

Archives, Dispatches, Global Trade Daily

Happy (Belated) Birthday, Team Worldwide

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Winnsboro, Texas-based Team Worldwide, which bills itself as “a global yet locally-minded freight forwarder and 3PL company,” in January proudly celebrated is its 40th anniversary in the biz.
Father and son Joe and Bobby Brunson established Team Worldwide in 1979 as a small, regional freight forwarder in the Dallas/Fort Worth area. The company’s mission was “to develop a long-term relationship with each customer by providing a logistics network that offers a variety of innovative and reliable services now and for the future.” Under the third generation of family leadership, the company remains committed to the same principles.
Of course, from humble beginnings Team Worldwide built itself up to the point where its corporate headquarters in Winnsboro boasts of more than 100,000 square feet of office and warehouse space, on grounds that accommodate a state-of-the-art data and technology center that supports 40-plus locally owned branches in North America and a global customer base.
 “We appreciate this opportunity to say ‘Thank You’ as we celebrate 40 years of service,” says Team Worldwide. “We proudly remain large enough to serve you but small enough to know you!”

Archives, Executive Education, Global Trade Daily

RAIL CYBER SECURITY SUMMIT

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Global experts prepare to gather Feb. 19-20 in The Netherlands to discuss the threat of cyber security to rail and tips on managing and mitigating risks through two days of presentations and case study evaluations. This year’s Rail Cyber Summit will provide an array of opportunities to gain a competitive advantage in the rail industry along with education and networking options.

The fourth annual summit, which is being held this year at the Crowne-Plaza hotel in Amsterdam, features open discussions on managing threats and potential security solutions within the railway sector and rail 4.0 supply chain.

Topics to be addressed include: the integration and convergence of IT and OT; how to manage and mitigate the risk of cyber threat; managing supply chain and third-party risk; identifying and addressing blind spots; innovations in detection and mitigation; configuration management; incorporating resilience into information systems; and critical control system components.

“This event will give those working in and around the industry the knowledge they need to ensure they have the right tools to incorporate resilience into information systems, critical control system components and business processes throughout their organization,” says Cyber Senate founder James Nesbitt.

Archives, Global Logistics Planning Guide, Global Trade Daily

2019 GLOBAL LOGISTICS PLANNING GUIDE

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At the core of every successful business is a well-oiled logistics machine ensuring operational efficiencies, product accuracy and maximizing business at every turn. It’s the blueprint of every business and its power should never be underestimated. Without logistics, there’s no foundation. But there is a catch that goes beyond logistics implementation for successful business initiatives, and that comes in the form of truly knowing the various types of industry-specific logistics needs, how they operate and, most importantly, how they ultimately tie together.

Carefully planned and thought out, this can be the determining factor between networking and business opportunities, navigating an evergreen market, and maintaining the steady flow of the supply chain in the midst of political changes that directly impact the products your business offers. The reputation of one’s business is found in the groundwork of operations. Industry competitors can gauge a company’s success miles away.

Think of logistics planning as you would a crisis plan–without it your business reputation is put at risk and the potential for losing solid customers is too high, and that’s the ultimate goal for our 2019 Logistics Planning Guide.

We gather the golden nuggets of logistics planning from industry leaders such as Pervinder Johar of Blume Global, Port of Rotterdam Business Consultant Vincent Campfens and CEO of A.P. Miller-Maersk Søren Skou. The key insights provided in this year’s planning guide will prepare your operations on a granular level, addressing every aspect while providing alternatives and key figures to consider as the global trade industry kicks off another year.

PORTS

Port trends for 2019 are already taking shape as the industry continues to see increased joint ventures and tandem efforts for mutual visions combined with record-breaking growth rates for 2018 from ports such as the South Carolina Ports Authority’s (which saw an impressive 15 percent growth for November 2018). The real question is how are they doing it from a logistics perspective amid the tariffs and market unpredictability? President and CEO Jim Newsome spelled it out: use timeliness and resource options to the advantage of operations. What might work one month might prove unsuccessful for the next. Keep options and eyes open for shifts and opportunities. Have a backup plan.

“While the U.S. economy remains strong, there is increasing evidence that U.S. beneficial cargo owners advanced shipments from Asia in an effort to avoid tariffs,” says Newsome, who carefully added, “The first calendar quarter of 2019, however, is much more uncertain in terms of outlook and considering strong volumes achieved in the same period in 2018.”

Port automation and the integration of technology solutions are trends that took charge in 2018 that show no sign of slowing down in 2019. The Port of Rotterdam cites proactive measures through technology solutions and gauging industry changes as key factors to success. Business Consultant Vincent Campfens puts it into perspective in the article, “42km of Connected Complexity: Operating in the Digital Future.”

Campfens comments:

“Being a smart port is much more than merely introducing awesome new technology into a port to make it safer, more efficient and more sustainable. It is also about looking further ahead in time, making strategic choices to ensure that the port still exists in the future, whilst responding to changes in climate, politics, technology, industries and cargo flows. One of our recent strategic choices is a targeted commitment to digital innovation.”

ECONOMIC DEVELOPMENT COMMISSIONS

Global Economics Prospects predicts a two-year plateau in overall global growth starting in 2019. That doesn’t mean economic development opportunities are not still very much alive and can be leveraged through a realistic, holistically charged strategy. E-commerce alone is shifting big businesses and their customer relationships, increasing product demand and reaching consumers beyond company regions. Alibaba Group announced its initiatives with the government of Rwanda in November and claimed they will utilize the digital economy to support exporters and local producers and their relationship with Chinese consumers.

Global agreements spur economic development and e-commerce success.

“We have already seen tremendous attention from Chinese consumers on Alibaba’s platforms in high-quality Rwandan products such as our top-tier single estate coffee, and we are confident that local products and travel experiences will continue to receive interest and support from the more than half a billion consumers on Alibaba’s platforms,” states RDB Chief Executive Officer Clare Akamanzi. “Alibaba’s travel services platform, Fliggy, and the RDB will also work together to promote Rwanda as a tourist destination through a Rwanda Tourism Store for booking flights, hotels and travel experiences and a Destination Pavilion where Chinese consumers can learn about visiting the country.”

With Amazon-standard expectations, it’s imperative that during the development and planning periods companies incorporate logistics solutions that tie together all modes of the supply chain, eliminating the possibility of leaving out a vital piece to the supply-chain puzzle.

OCEAN CARRIERS

Quantity and quality are two characteristics we are taught to choose between, especially in business. Maersk, the world’s largest ocean carrier, proves that through strategic planning, looking ahead and considering environmental factors to foster growth and success that support both. Additionally, the company values the need to take a step back and confront the challenges while developing solutions that align with the vision and work with what’s anticipated in the next decade. At the end of the day, companies must keep the customer experience at the center of logistics efforts and consider integration efforts for resource utilization. Forward-focused logistics solutions are the name of the game.

Maersk confirmed the strategy of integration logistics to kickstart 2019. The company is leveraging the services from Damco’s Supply Chain and combining them for Mearsk-branded products.

“We are taking further steps in the transformation of our business on a structural level and how we go to market, enabling us to offer more solutions to our customers in a simpler way,” CEO of A.P. Miller-Maersk Søren Skou said. “Our employees play a key role in making this happen and therefore we are at the same time empowering our frontline organization who is closest to our customers.”

Taking it even further, the company recently announced its goal of net zero carbon shipping by 2050. But some wonder why focus on 2050 with 2019 right around the corner? Forward thinking. Quality. Proactive efforts that alert industry players they are ready for the anticipated increase in shipping volumes, without delay. By preparing their vessels in advance, they eliminate potential logistics hiccups.

“The next five to 10 years are going to be crucial,” Skou predicts. “We will invest significant resources for innovation and fleet technology to improve the technical and financial viability of de-carbonized solutions.”

Electric caravans, increased regulations and revolutionizing the air cargo industry as a whole are on the horizon for 2019. The air cargo industry kicked off the new year preparing for growth to be at a stand-still. Industry reports are predicting a reduction from 4.1 percent to 3.7 percent and a total of 65.9m tonnes for 2019–one of the slowest growth rates on record since 2016. Not all hope is lost, however. With carefully crafted logistics in place, industry players can weather the market shifts and still generate successful initiatives. It’s all about looking at the big picture and identifying what is working in your company’s favor during uncertain times.

“We had expected that rising costs would weaken profitability in 2019,” explains Alexandre de Juniac, the International Air Transportation Association director general and chief executive. “But the sharp fall in oil prices and solid GDP growth projections have provided a buffer. So, we are cautiously optimistic that the run of solid value creation for investors will continue for at least another year. But there are downside risks as the economic and political environments remain volatile.”

Resources for airlines to leverage do indeed exist, but they are found within the framework of technology innovations and the relationships sustained and strengthened with other industry leaders. A great example is the automation efforts implemented by Sabrewing Aircraft Co. in the Alaska market. With Anchorage leading as the busiest cargo hub, the company continues to weigh out options that provide solutions for increased efficiencies within a realistic goal. The theme of technology solutions and efforts toward automation makes yet another appearance.

“I thought, there needs to be another solution, a solution that’s much closer at hand and that’s how the thought of cargo came about,” says Sabrewing co-founder and CEO Ed De Reyes, “because cargo—there’s still a lot of requirements that are placed on air cargo carriers and air cargo manufacturers—but it’s a little bit lower hanging fruit, so to speak, from the fact that we’re not flying passengers. What is it that we can do now? What are we capable of doing now and let’s build on that instead of trying to build a system that’s going to rely on massive amounts of, at this time, nonexistent infrastructure.”

Keeping the books clean requires visibility and awareness of dollars coming and going out. Once again, in the theme of digital solutions, if you want that granular level of transparency, leveraging technology solutions in 2019 is imperative, especially for large-scale businesses. Supply-chain management and financing logistics are two of the most important factors when considering logistics planning.

“In 2019, the most agile and resilient supply chains are the ones that are going to be the most successful,” says Blume Global CEO Pervinder Johar. “Natural disasters, economic flux and rising tariffs are going to remain a concern for the supply chain industry and therefore the C-suite may reconsider its current manufacturing strategies and its global operations. To help inform these decisions, companies should combine external and internal data. Predictive analytics uses historical data and machine learning to identify and anticipate certain outcomes that become increasingly valuable as the volume of data increases. When properly analyzed, this data is helpful for identifying patterns and areas for optimization, to fuel better planning and resource utilization.”

Consider implementing a seamless management system that your business can rely on to eliminate risks, such as invoice and vendor fraud, inventory stockpiling and increased inefficiencies. In doing so, companies can track products, customer purchases and deliveries all while monitoring and maintaining their supply chain.

“Predictive analytics will become highly useful to optimize resources within the supply chain in 2019,” Johar predicts. “In late 2018, Gartner identified eight strategic technology trends for the supply chain and how they can provide a competitive advantage. Combined with AI and machine learning, data is the driver for predictive capabilities—with it, future performance can be optimized based on historical results. This data is powerful and has the potential to positively impact every aspect of the supply chain, from sourcing and compliance to production and quality control. Embracing the value of technologies such as predictive analytics is essential for a strong foundation, upon which to build a digital supply chain.”

3PLs

Infosys Consulting released the 22nd annual Third-Party Logistics Study this year, proving key insights and trends to keep a watch for in 2019. Of the insights, the study revealed that maintaining balance and consistency in an ever changing market is one of the biggest challenges for the logistics industry, pertaining to 3PLs specifically. The study revealed that 91 percent of providers cite 3PLs as a resource for improved operations and logistics.

Examples of this include Seacoast Capital and its $10 million investment in Deliver-It for their consumer base, and Volvo announcing that it will own and operate, in addition to providing, the first commercial use for its automated trucks for a mining company. More big name companies are considering 3PLs as solid logistics solutions for commercial expansions.

Other leading 3PLs, such as global freight forwarder Team Worldwide, utilized global expansion efforts and strategy as a means to improve customer relationships in 2018. General Manager Brian Purugganan explained that implementing such strategies allows his company to invest in supply chain management solutions for customers, providing a way to meet individual expectations. Team Worldwide expanded the company to a new Seattle-based branch for increased customer reach that was set to open in December 2018, laying the foundation for success in 2019.

“The opening of Team Seattle is a strategic part of our domestic and global expansion,” says Team Worldwide CEO Jason Brunson. “Seattle is an important ocean gateway to and from the U.S. It will allow us to better support the needs of our customers in the Northwest and will also help expand our cross-border services with Team Worldwide, Ltd. in Canada.”

 

 

 

 

 

 

 

Archives, Global Trade Daily, Warehousing

ASSESSING YOUR WAREHOUSE LOGISTICS NEEDS

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As 2019 planning takes shape, consider your company warehousing needs beyond the numbers and take a hard look at the logistics structure from the last year. This begins with an honest assessment of what is and what isn’t working from an operations standpoint as well as employee satisfaction and culture, digital optimizations, labor and productivity, and risk management.

Such companies as Datex Corp., a leading solutions provider, spotlight the importance and top priorities that should be considered the most important for implementation and success initiatives. It goes without saying that technology innovations are among the most important logistics solutions to secure the best outcomes for the company and its customers.

Integrating technology is great, but it must be the right technology to work for your business. Datex states that to maximize profitability, companies need a warehouse management system specifically developed for 3PL operations that provides: real-time visibility; a full spectrum of 3PL billing capabilities; visibility into your inventory status, orders and shipments; and a streamlined process from start to finish. Out of the six solutions provided for warehousing logistics, the common theme surrounds risk prevention, eliminating inefficiencies, capturing business and leveraging technology innovation options.

Take into consideration a dedicated warehousing solution for your company if you’re new to the sector. Why does this matter? By investing in professional management and logistics solutions providers, the company is set up for success without risking initiatives and business deals that could produce disappointing results. Additionally, these providers can assist with creating networking and 3PL relationship opportunities, expanding your business goals and overall vision. Not only do these providers help lay the groundwork for operations, they are the middle man in communicating and assessing 3PL operations.

Another option is where a single distribution center cost is split among several clients. The resources at hand are consistently available among the shared warehouse space that all clients can leverage, as seen with the ODW Logistics solutions model.

Warehouse innovation is on the 2019 horizon and will make a significant mark in the warehousing logistics sector. In an article titled, “Taking a Look into Supply Chain’s Crystal Ball,” drones take the spotlight for warehouse solutions because “50 percent or more of the total cost of the logistics journey is from last-mile delivery” while drones provide a solution from added flexibility.

In 2019, warehousing companies might want to consider the use of unmanned aerial vehicles as an option for delivery. The top two of key differentiators companies consider drivers for change in warehouse usage was the need for lowered transportation costs (at 42.7 percent) while others cited the need for shortened delivery times and (40.5 percent), according to a Zebra Technology survey.

Looking ahead at the changes to come in 2020, Zebra also shows that in 2015, only 55.1 percent of companies were leveraging load optimization and performance monitoring and anticipating its integration by 2020. This number will jump to 61.6 percent, according to the global survey results.

The report goes on to explain that explicit costs and benefits should not be the total focus and only make up a part of the bigger picture. It states that, “Not only do we need to improve the technological advancement of our warehouse, but we need to update our thought process also. When considering RoI on implementing technology, don’t only look at the investment as cost and recovery of cost, but think of how this creates value for your customers, how you improve the productivity of your employees, what impact does it have on your culture and public image, will embracing technology give an advantage over competitors, and so on.”

Zebra’s survey also revealed some interesting insight into the level of difficulty experienced by companies seeking to change the supply-chain process. A total of 32.2 percent noted that it is “somewhat difficult” to introduce changes in 2015. That number is predicted to drop down to 22.1 percent in 2020.

Refreshing your operational approach to warehousing operations should be handled with caution and care. Don’t rush trying to integrate a new technology solution without checking the other boxes first. UPS cautions this practice for next steps and transforming your current business model.

“Most operations were designed based on what worked in the past, and, of course, that can’t necessarily deliver what customers expect today,” says Simon Bhadra, senior manager for the UPS Industrial Distribution customer segment. “There are valid business reasons that customers demand changes from their intermediaries or are bypassing them altogether. Pressure to cut costs, reduce turn times, for example. It’s difficult to make meaningful changes and still be productive and keep customers happy. People say it’s like trying to build an airplane while it’s in the air, and that’s pretty accurate.”

UPS offers three strategic tips to remember when re-evaluating changes and improvements needed for warehouse and distribution efforts. The first is to “Break the Inertia” through an open-minded look into the current state of operations. Just because operations are running up to par does not mean there isn’t room for improvement and efficiencies. Again, they warn to proceed with caution. It’s a fine balance between evaluating what’s not working and applying a new strategy and not going idle.

“Very often we see companies overhaul their operations in response to some kind of catalyst,” says Nancy Pagely, UPS development director. “But making changes without a clear strategy increases the chances of taking a costly wrong turn.”

The second strategy offered focuses on the importance of the customer and providing a sense of “ease, convenience and flexibility.” Bhadra states that, “It’s really critical that operators set aside the knowledge they’ve amassed on customers in order to get a fresh look at what’s going on out there. It takes unconventional thinking and a broader set of collaborators to make smart changes.”

The final piece of advice is taking an honest assessment of your company and don’t let the fear of failure determine your company’s next steps.

“Understanding where you want to be can reduce the number of doors to look behind before making decisions and investments,” explains UPS Customer Solutions consultant Mark Modesti. “As long as you plant a flag and build a dynamic roadmap that lets you adapt as needed, you’ll be ahead of the game.”