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TECHNOLOGY LEADS TO MEET MODERN CHALLENGES: PART II

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Archives, Features, Global Logistics, Global Trade Daily

TECHNOLOGY LEADS TO MEET MODERN CHALLENGES: PART II

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For part two of our tech-focused feature, Global Trade identified industry players who confronted challenges with the help of technological partners. Our case studies are arranged by the categories Global Trade covers on the regular, from 3PLs and e-commerce to intermodal and air cargo logistics.

Please be aware that each category could have had many multiple case studies. Therefore, we do not want to leave the impression that only the best of the best are represented. We felt it better to spread the coverage around to different types of tech challenges and solutions. Do you have your own special story that could have been reported here? Please continue sharing it with us. Read part one here.

EDUCATION

Institution: Humber College of Toronto, Ontario, Canada

Challenge: Preparing students for Industry 4.0  

Problem Solver: SEW-Eurodrive Canada of Brampton, Ontario, Canada

Solution: Industry 4.0 Laboratory

SEW-Eurodrive, which specializes in geared motors, frequency inverters, controls and software to individual drive solutions, has been headquartered in Bruchsal, Germany, since its founding in 1931 as Süddeutsche Elektromotorenwerke (SEW).

However, the company’s facilities around the world include the North American corporate offices, SEW-Eurodrive Inc. in Lyman, South Carolina, and SEW-Eurodrive Canada that is about a half hour from Toronto.

Humber College and SEW-Eurodrive are now at about the mid-point of a five-year partnership to prepare students for Industry 4.0 technologies, a critical aspect of advanced manufacturing, with training, applied research and future career opportunities. The centerpiece of the partnership with the college is the SEW-Eurodrive’s first-ever Industry 4.0 laboratory in North America. Focused on automated guided vehicles (AGVs), mobile worker assistants and connected automation equipment, the SEW-Eurodrive Industry 4.0 Live Laboratory is in Humber’s Barrett Centre for Technology Innovation.

The lab opened in 2018 after a $4 million+ investment in SEW-Eurodrive technology, $125,000 to establish new scholarships and a commitment to have students intern at the company’s Canadian locations and be considered for permanent employment at those facilities after graduation. 

“At SEW-Eurodrive, we see great value in investing in Humber students,” says Anthony Peluso, SEW-Eurodrive Canada’s chief operating officer, “and providing the opportunity for students to develop the skills and gain the practical experience that today’s employers demand.”

INTERMODAL

Company: The Jaeger Bernburg Group of Bernburg, Germany

Challenge: Digitize its rail transport division fleet  

Problem Solver: Nexxiot AG of Zurich, Switzerland

Solution: IoT technology 

Jaeger Bernburg is actually a group of medium-sized companies that offers a wide range of different services in the construction industry, with a focus on transport infrastructure and civil engineering. They are primarily active in railroad construction and managing a large number of vehicles adapted to deliver related services.

“Our company is pursuing an ambitious digitalization strategy,” explains Christian Koch, Jaeger Bernburg’s local operations manager. “To achieve this, it was important for us to rely on a system that is maintenance-free as well as one that enables precise monitoring of the mileage of our fleet.”

The collaboration with Nexxiot, which began in April 2020, has relied on equipping the rolling assets with IoT technology to make the monitoring of mileage and other real-time data communication possible. The entire Jaeger Bernburg fleet is now equipped with Nexxiot sensor gateways called Globehoppers.

“The technology enables us to ensure that our vehicles are maintained in accordance with European regulations and that we always have an overview of the operating performance,” Koch says. “This allows us to optimize our processes and automate the collection and evaluation of data.

“We can deliver our vehicles to construction sites more efficiently because we know where they are at all times. This prevents unnecessary shunting and saves CO2 emissions. We also improved our support for our own employees, especially with regards to their working processes. We now provide them with critical information for improved transparency and fact-based decision-making in real time.”

Nexxiot, which was founded in 2015, now operates more than 122,000 Globehoppers globally, with connected assets having traveled a combined total of more than 2.5 billion miles. 

“Our goal is to achieve a five percent reduction in total global cargo CO2 emissions by shifting freight traffic from road to rail and optimizing routes,” says Nexxiot CEO Stefan Kalmund. “Enabled by our technology, every mile saved contributes towards this goal.” 

LAST-MILE

Company: Walmart of Bentonville, Arkansas

Challenge: Expand and improve deliveries between distribution centers and customers

Problem Solver: Flytrex of Tel Aviv-Yafo, Israel

Solution: Drones

Two years after announcing a pilot-less program (get it?) focused on food delivery from a distribution center to a recreational area in North Carolina, Walmart recently revealed an expansion of drones over the Tar Heel State.

Flytrex drones had been soaring along fixed routes over unpopulated areas, but the Israeli company and the giant retailer recently received a Federal Aviation Administration permit to deliver to homes. The service is mainly for detached, single-family homes with front and back yards and within 3.5 miles of the Walmart distribution center in Fayetteville. 

Causey Aviation Unmanned actually operates the 6.6-pound drones that were manufactured by Flytrex and will hover about 65 feet up in the air before lowering to the ground with a tethered device.

When it comes to incorporating technology into the business, Walmart Senior VP, Customer Product, Tom Ward repeats the words of founder Sam Walton, who went to that Big Greeter Stand in the Sky in 1992: “I have always been driven to buck the system, to innovate, to take things beyond where they’ve been.” 

Ward claims, “It remains a guiding principle at Walmart to this day. From being an early pioneer of universal bar codes and electronic scanning cash registers to our work on autonomous vehicle delivery, we’re working to understand how these technologies can impact the future of our business and help us better serve our customers.”

Of course, Walmart is not alone in last-mile air space. Kroger has a drone delivery program flying the friendly skies of Centerville, Ohio, UPS has been making unmanned commercial flight deliveries for more than a year, and Amazon has famously been running pilotless pilot programs around the globe for some time. 

Despite the near space race, Ward urges caution. “We know that it will be some time before we see millions of packages delivered via drone,” he says. “That still feels like a bit of science fiction, but we’re at a point where we’re learning more and more about the technology that is available and how we can use it to make our customers’ lives easier.”

Somewhere, Sam Walton is smiling.

“At the end of the day,” Ward says, “it’s learnings from pilots such as this that will help shape the potential of drone delivery on a larger scale and, true to the vision of our founder, take Walmart beyond where we’ve been.”

MANUFACTURING

Company: Whirlpool Corp. of Benton Harbor, Michigan

Challenge: Overcoming a skilled labor shortage  

Problem Solver: Seegrid, Corp. of Pittsburgh, Pennsylvania 

Solution: Autonomous mobile robots (AMRs)

A Whirlpool manufacturing plant can crank out a new washing machine every 10 seconds. That can present challenges as humans, product materials and automation don’t always get along well with one another. Think heavy machinery whirring, forklifts whizzing by and, oh yeah, a global pandemic racing through your workforce.

Whirlpool managed to better the situation with the introduction years ago of automated guided vehicles (AGVs), which replaced the repetitive movement of items by workers from point A to point B. There are, however, drawbacks with AGVs: they possess minimal on-board intelligence and can only obey simple programming instructions. They are guided by wires, magnetic strips or sensors, which typically require extensive (and expensive) facility upgrades. While they can detect obstacles in front of them on their fixed routes, they cannot navigate around these obstacles, even if that obstacle is living and breathing. 

Though AGVs do what people did before them, manufacturing plants still require humans . . . from a labor pool that seems to be getting smaller and smaller. Hoping to get ahead of that challenge, Whirlpool set the spin cycle for “Seegrid,” which specializes in autonomous mobile robots (AMRs) that navigate via maps that their software constructs on-site or via pre-loaded facility drawings. 

The AMRs also utilize data from built-in sensors, cameras and laser scanners to detect their surroundings and chose the most efficient route to their destination. Working completely autonomously, an AMR will safely maneuver around forklifts, pallets and ol’ “Sleepy” Pete, choosing the best alternative route to avoid any obstacles. This optimizes productivity by ensuring that material flow stays on schedule.

“We see Seegrid as the evolution in AGVs,” says Jim Keppler, vice president, Integrated Supply Chain for Whirlpool’s North America region. Facilities under Keppler’s watch include a Clive, Iowa, manufacturing plant that now has more than 50 Seegrid units operating during three work shifts. The AMRs have created welcome changes for Clive’s 150 employees.

“For any manufacturer in the United States, there is an overall labor shortage, especially for skilled positions,” Keppler explains. “We have been able to take employees in our facilities that were doing more mundane work and move them to more value-added positions and let the Seegrids do the work.”

With Seegrids, whose technology is protected by more than 100 patents, intellectual property and proprietary know-how, Whirlpool has greatly reduced absenteeism, turnover and occupational injuries while increasing reliability, Keppler says.

“One of the key features of Seegrid is the configurability of the units,” the veep notes. “On one of my visits to Clive last year, they actually had me program one of the Seegrid units. And it’s so easy, even a guy like me can do it.”

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Archives, Global Logistics, Global Trade Daily, International Trade

What Would a Post-Carbon Supply Chain Look Like?

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Businesses worldwide are pushing for more sustainable practices. As the threat of climate change has worsened, it’s become clear that industry as a whole must move away from carbon emission-generating practices. This movement has significant implications for supply chains.

Today’s supply chains are far from carbon-free. An organization’s supply chain often accounts for 90% of its greenhouse gas emissions when taking overall climate impacts into account. From diesel-powered trucks to natural gas-generated warehouse power, these networks rely heavily on fossil fuels.

It can be hard to imagine supply chains without these resources, but it’s not impossible. Here’s what a post-carbon supply chain would look like and how companies could achieve it.

Electric Vehicles

The most obvious difference between today’s supply chains and a post-carbon one is their vehicles. Transportation accounts for 21% of total global emissions, and freight constitutes a considerable portion of that figure. Almost all trucks that move freight today use fossil fuels, but post-carbon transport will be electric.

Electric trucks will likely be the first type of carbon-free vehicles to appear in supply chains. General Motors has already established goals to produce zero emissions, and electric road vehicles are increasingly common. Post-carbon supply chains will bring electrification to more than just trucks, though.

Ships and airplanes will also be electric. Their longer routes will require more efficiency, so they may rely on technologies like fuel cells or solar power instead of batteries. Regardless of the specifics, every vehicle in the post-carbon supply chain will be electric.

Green Power Sources

While vehicles may be the easiest culprit to pinpoint, they’re not the only source of emissions. Supply chains consume a considerable amount of energy, most of which comes from fossil fuels. In fact, if 125 multinational companies increased their supply chain renewable energy by 20%, they would save more than 1 billion metric tons of carbon emissions.

In a post-carbon supply chain, all energy would come from renewable sources. That would likely mean using various technologies, as sustainable power has varying effectiveness in different applications. Solar, wind and hydroelectric power would all play a part in the transition to zero-carbon operations.

A truly zero-carbon supply chain would also use renewables to generate power for its electric vehicles. Creating batteries or hydrogen for fuel cells requires energy, and this too must be green for supply chains to be truly sustainable.

Sustainable Sourcing

A more easily overlooked aspect of post-carbon supply chains is how sustainability plays into their corporate partnerships. A truly zero-emissions supply chain must ensure its suppliers are also carbon-free. Otherwise, it would still be investing in emissions-producing activity, albeit indirectly.

Industrial sectors like manufacturing are responsible for 29.6% of total emissions in the U.S. If a supply chain moved products from a company with such a significant carbon footprint, one could hardly consider it carbon-free. In a truly post-carbon supply chain, all connected sources are also zero emissions.

Ensuring these connections are sustainable requires a considerable amount of transparency. As such, post-carbon supply chains will require regular audits from involved parties to verify their sustainability. They’ll likely also employ technologies like Internet of Things (IoT) trackers and blockchains to keep operations transparent.

How Can the World Move Toward Post-Carbon Supply Chains?

These factors may seem like lofty goals right now. Today’s supply chains have a long way to go before they can say they’re truly carbon-free. Thankfully, however far-off these sustainability targets may seem, they are achievable. Companies can start acting now to move toward them.

Recognizing the business incentives for removing carbon from the supply chain can help encourage further action. According to one study, 84% of global consumers are more likely to make purchase decisions based on a company’s sustainability practices. Similarly, 61% are willing to wait for longer delivery times if they know it’s better for the environment.

Interest in sustainable supply chains will grow when more organizations realize these benefits. As this trend gains momentum, here are a few ways supply chains can start moving toward zero-carbon goals.

Improve Visibility

The first step in moving away from carbon is improving supply chain visibility. Companies can’t effectively become more sustainable if they don’t know the extent of their current unsustainable practices. Audits and studies can reveal where carbon emissions come from in a supply chain, guiding further action.

Organizations must also ensure their emissions monitoring is an ongoing process. Without continuous checking, they won’t be able to tell how different actions impact their overall goals. Periodic audits and implementing IoT sensors to track carbon emissions can ensure ongoing transparency.

In that spirit, supply chains should start improving visibility between partners. Asking for suppliers to offer proof of their sustainability initiatives will encourage broader action and help reduce emissions on all fronts.

Invest in Green Technologies

Some aspects of the post-carbon supply chain, like electric vehicles, aren’t applicable right now. While options may be limited today, more investment in these technologies will speed their development, making sustainability more viable quicker.

Many companies have already begun to invest in green technologies. Maserati has invested more than $867 million to refurbish its production hub to produce electric cars. As more money flows into these innovations, efficient, low-cost, carbon-free technologies will become available sooner, aiding a faster transition.

Green energy is a technology, not a resource. As such, it will only become cheaper and more efficient over time. Consequently, while some of these technologies may not be viable business choices now, they will be eventually, especially with more funding.

Collaborate

Since supply chains are so interconnected, it will take increased collaboration to push them away from carbon. Decarbonization is also a considerable undertaking. The transition will be far easier and faster if companies can work together toward a common goal.

Collaboration can mitigate the financial burden of decarbonization. Similarly, it can help some companies overcome any qualms they may have about the risks of going green. Climate action experts highlight that shared responsibility translates into reduced risk, at least in people’s perception of it.

In addition to collaborating with other related companies, supply chains can partner with environmental organizations. They can help show where improvements can be made, guiding more effective action.

Supply Chains Must Become More Sustainable

Supply chains are essential to virtually every industry, and they often produce some of the most emissions. As such, these operations must move away from fossil fuels as companies seek to become more sustainable.

The post-carbon supply chain seems like a lofty goal, but it’s attainable. When organizations realize these things are possible, they can start moving toward a better future.

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Archives, Features, Global Trade Daily, Stories

LEAVE IT TO TECHNOLOGY TO MEET MODERN CHALLENGES: PART I

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To be honest, incorporating more technology into business as usual for logistics, supply chain and manufacturing entities pre-dates the first confirmed COVID-19 case in the U.S. in January 2020. But it did take the global pandemic to propel many in those industries to move unrealized digital transformation initiatives to their front burners.

In light of Industry 4.0, which places a high value on robotics, clean technology, renewable energy and transforming traditional factories into smart ones using the Internet of Things (IoT) and cloud computing, InfinityQS International announced the findings of its 2021 Customer Satisfaction Survey on June 1. 

The report from the Fairfax, Virginia-based authority on data-driven enterprise quality revealed that more than half of manufacturers now have their sights set on digital transformation to address concerns brought about by the COVID-19 pandemic. Behold:

-52 percent of respondents reported they are currently exploring or already adopting digital transformation initiatives to enhance operational performance. 

-24 percent cited advanced analytics as their top technology priority.

“The pandemic exposed significant and often widespread operational weaknesses within incumbent manufacturing environments,” said Jason Chester, director of Global Channel Programs at InfinityQS. “It brought into sharp relief where legacy systems and outdated processes exacerbated the problems that manufacturers faced, alongside new challenges such as the rapid shift to remote work and supply chain disruption.”

Digital transformation is the key to addressing these new challenges, according to Chester. “Data, for example, is a great way for manufacturers to increase visibility into their operations as it can provide important insights into each stage of the production process. These insights can then be leveraged to make more informed and tactical decisions to secure long-term resilience and growth.”

In addition to advanced analytics, the other most popular technologies on the priority list for respondents included the Industrial Internet of Things (IIoT) and cloud computing. InfinityQS notes that either technology supports anytime, anywhere access to real-time data for proactive decision-making, enabling manufacturers to maximize performance, respond to fluctuations in demand, ensure flexible operations and even build resilience for future “black-swan” events—all while maintaining high levels of product quality and safety.

“For manufacturers to stay ahead of competition and remain at the top of their industry, they need to constantly adapt to their environment by making tactical digital investments,” Chester says. “It is great to see the majority are rebounding from the pandemic and embracing digital transformation to increase their agility and maintain competitive edge. Companies that do so are better equipped to improve their operations at a faster speed and even anticipate changes before they occur.”

A clue that an impactful industry change was on the way happened during the March 2020 MODEX show in Atlanta, where attendees were warned they may have been exposed to someone with COVID-19. Folks can be forgiven if they were too preoccupied with personal health to consider the findings in the annual Materials Handling Industry (MHI) Report that was released during MODEX. According to the report (which you can read more about in our Industry Expertise column):

-67 percent of survey respondents said they believed robotics had the power to disrupt their industry and offer a competitive advantage for their organization. 

-39 percent of surveyed companies said they’d adopted robotics and automation. 

-73 percent of those surveyed said they plan to add more robotics or start implementing robotics in the next five years.

For a look ahead of the curve, Global Trade identified industry players who confronted a recent challenge with the help of technological partners. Our case studies are arranged by the categories Global Trade covers on the regular, from 3PLs and e-commerce to intermodal and air cargo logistics. Read on for part one. 

3PL

Company: KSP Fulfillment of Fridley, Minnesota

Challenge: Rapid growth putting pressure on order fulfillment

Problem Solver: Softeon of Reston, Virginia

Solution: Cloud-based warehouse management system (WMS)

Founded in 2012 and headquartered near Minneapolis, KSP offers a broad mix of 3PL services to multiple industries, including medical, health & beauty, education, agriculture and pet care. The Verified Veteran Owned Business has realized rapid growth, with revenues jumping 296% in 2020. That is, of course, the goal, but … 

Why is there always a “but?” 

The mountain of increased orders drove the need for additional space, and KSP is set to complete construction on a new 182,000-square-foot facility in November. However, the KSP brass also realized they needed more than additional real estate. 

“The company determined it needed a new WMS with the ability to scale, more advanced features and a better platform for continuous improvement,” explains Dennis Nicholson, vice president, Business Development at Softeon. “KSP selected Softeon as its WMS provider to help power execution of their aggressive strategy, making their decision to move to Softeon in less than two months.”

KSP was ready to move even sooner, to hear CEO Rob Walters tell it. “It was obvious in the early stages of our WMS vetting process that Softeon was going to be the right fit for our short and long-term business goals,” he says. “It was incredibly important that we chose the right strategic partners to ultimately support our customers’ needs. Softeon offers a unique combination of rich WMS functionality, robust support for 3PLs and a collaborative partnership that matches well with our culture.” 

It’s not just smaller company cultures that Softeon meshes with, having also provided a WMS solution to Germany’s DB Schenker, which is, of course, one of the world’s largest providers of freight forwarding and logistics services

AIR CARGO LOGISTICS

Company: American Airlines Cargo of Fort Worth, Texas

Challenge: Expanding temperature-controlled shipments across the entire mainline fleet 

Problem Solvers: CSafe Global of Dayton, Ohio, and CargoSense of Reston, Virginia 

Solution: State-of-the-art packaging and temperature sensors

One lesson American Airlines Cargo learned from the pandemic was that operating one of the largest cargo networks in the world made one no more prepared to handle the huge demand for distributing temperature-critical vaccines, pharmaceuticals and other life science products than Uncle Eddie’s Crop Duster Inc.

Though the new normal is getting more normal currently (knock on Formica), the demand for temperature-controlled cargo solutions is not going away. That even newer normal propelled American to enter into a number of tests and trials in partnership with CSafe Global and CargoSense. The result: All of American’s aircraft offered ideal environments for passive temperature-sensitive shipments thanks to CSafe’s industry-leading packaging and CargoSense’s Temperature Loggers.

The even more amazing result: American’s ExpediteTC solution, which was founded in 2009 to provide active and passive shipping solutions as well as a global network of temperature-controlled facilities, can now nearly double its capacity. The airline has now extended its cold-chain solution network to 30 new stations, including in-demand cities such as Memphis, Pittsburgh and Cincinnati. 

“When it comes to cold chain shipments, reliability is crucial for our customers,” explains Roger Samways, vice president, Commercial for American Airlines Cargo. “By expanding our offering of temperature-critical shipping on all mainline flights, we are able to provide our customers with access to more than 180 markets, marking the largest cold-chain network in our history.”

During the trials, sensors monitored internal package temperatures while aircraft operated in various climates. Results proved that temperatures of each package stayed constant, despite changing conditions during transit, according to the partnership.

 “We are excited the pharmaceutical industry can now leverage American’s full fleet at a time that is critical for all of us,” says CargoSense CEO Rich Kilmer.

Added Tom Weir, CSafe Global’s chief operating officer: “It was a privilege to work with American to conduct these trials and leverage our innovative thermal shipping solution technologies to ensure even more temperature-critical shipments can travel effectively. Many sensitive, often life-saving goods travel the world thanks to effective cold-chain networks, and we are proud to play a part in that alongside American Airlines.”

BANKING/FINANCE

Company: Old Dominion Freight Line of Thomasville, North Carolina

Challenge: Streamline payments to improve satisfaction among 10,500+ drivers 

Problem Solver: Relay Payments of Atlanta, Georgia

Solution: Instant electronic payments 

Motor carrier and industry leader Old Dominion provides regional, inter-regional, and national services that include expedited transportation through an expansive network of service centers throughout the continental U.S. as well less-than-truckload (LTL), container drayage, truckload brokerage and supply-chain consulting across North America.

However, Old Dominion lived up to the . . . ahem . . . “Old” part of its name by, like many of its peers, relying on cash and checks to conduct business. With manual payment processes creating a sub-optimal experience for customers, OD turned to Relay Payments, which recently received a $43 million infusion from venture capitalists who share the fintech company’s vision of building an electronic payment network in the transportation, logistics and supply-chain industries.

“We strive to deliver best-in-class customer service and are always looking at ways technology can improve our offerings,” explained Todd Polen, vice president, Pricing Services, at Old Dominion. “Working with Relay Payments has allowed us to remove tedious and manual steps throughout the payment process and modernize the way we do business with our customers.”

Relay’s partnership with OD’s accounting, pricing and operations teams is paying dividends, thanks to the development of unique application leveraging data integrations and custom payment workflows for each department’s specific needs. “We have entrusted Relay to process millions of dollars in volume annually,” Polen notes, “and we’ve already been able to realize millions in savings through data integration, digitalization of receipts and simplified reimbursements. On top of it all, our customers are happier than ever which is the most important to us.” 

“Our goal was to design an end-to-end solution which eliminated the use of paper-based payments and introduced operational efficiencies and increased revenue for the organization,” says Relay co-founder and President Spencer Barkoff. “We’re excited to continue working together to change the industry and keep America’s supply chain running during a period of immense challenge.”

E-COMMERCE

Company: Hermes Fulfillment of Hamburg, Germany

Challenge: Incorporate state-of-the-art technology to legacy warehouse management systems

Problem Solver: ProGlove of Munich, Germany, and Chicago, Illinois, and Ivanti Wavelink of Salt Lake City, Utah

Solution: Wearable barcode scanners and backend digital systems

Hermes Fulfilment handles the entire shipping process—including customer orders, warehousing and returns—for parent company the Otto Group’s retail companies. Besides multiple locations in Germany, Hermes has logistics, e-commerce and distribution facilities across all of Europe.

After identifying the need to upgrade technologically, Hermes officials sought an “out-of-the-box” solution: 150 of ProGlove’s wearable MARK Display barcode scanners that are married with Ivanti Wavelink’s Velocity backend/warehouse management systems.

This combo platter allows for easy integration of Telnet and browser-based applications to communicate and deliver crucial information to and from workers’ rugged mobile computers and wearable devices. 

“ProGlove’s MARK Display is a giant leap forward in barcode scanning,” says Simon Storey, Ivanti’s Global VP of Strategic Alliances. “Their devices come with a unique form factor that is tailored to meet the needs of warehouse shop floor workers superbly.”

His company’s Velocity platform helps improve accuracy and efficiency without modifying or replacing legacy backend systems, all the while maintaining and improving worker productivity. This helps reduce picking errors, decrease downtime and increase productivity without frontline workers needing additional training as they continue to work with the tools with which they are familiar. 

“The cost, risk and time associated with writing new mobile applications to keep up with modern mobile operating systems just isn’t feasible,” Storey explains. “We make it easy for their customers to deploy next-generation mobility, minimizing the risks and dependence on IT resources.”

“Ivanti’s Velocity set of solutions is a mission critical engine to boost the digitization of the shop floor,” remarks Charlie Grieco, ProGlove’s chief revenue officer. “While many organizations recognize the need for more flexibility and adaptability, they cannot just shake off the legacy systems they have in place. Ivanti resolves this issue so that businesses can change gears and accelerate to warp speed in no time.”

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3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

Supply Chain Professions: Women’s Place Today?

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Despite the diversification of its professions and a recent and relative feminization, the supply chain remains predominantly male, especially the higher up the organization chart you go. We have gathered a panel of experts from the field and from education to understand how to make supply chain jobs more attractive to women and to remove the obstacles to the feminization of a sector that has strong recruitment needs:

 

 

Salomée Ruel: associate professor of information systems management and supply chain management at Kedge Business School;

 

Marie-Laurence Deruaz: Logistics Director at Suez Eau France

 

Anicia Jaegler: director of the Operations Management and Information Systems department and professor at the ISLI at Kedge Business school, delivers their analysis;

 

Just over 4 in 10 (41%) supply chain positions, according to the Gartner 2021 survey, are filled by women. These numbers are slowly changing, as Gartner reported an occupancy rate of 39% in 2020 and 33% in 2019. However, in executive positions, their share is only 17%, and decreasing. What are the persistent obstacles to this feminization? 

 

Anicia Jaegler: “Historically, logistics originated in the military world. Then, it was implemented in the industrial world and associated with transport and storage. This explains its masculinization. The supply chain, which is more recent, is slowly becoming more feminine, with very significant differences depending on the activity and sector”.

 

Salomée Ruel: “The operational functions of logistics – transport, handling, etc. – which make up the bulk of the troops, have less than 10% women. Conversely, in customer services, more than 9 out of 10 employees are women, but these profiles weigh little in the overall workforce.

 

The digitalization of the sector, which is pushing companies to recruit more “mathematical” profiles, does not seem to be conducive to the feminization of the sector, particularly in management positions, which are predominantly male.

 

This is related to the fact that it is a male world that has difficulty making room for women, but also to image problems generating a lack of attractiveness for some women”.

 

Marie-Laurence Deruaz: “The supply chain is often reduced in people’s minds to its “logistics” part, which is historically considered to be a man’s job, physical, with a lot of travel and staggered hours, considered to be very restrictive.

 

These stereotypes apply to recruiters, but also to female candidates, who tend to censor themselves. Fewer in number in training courses, they find it harder to take the plunge when applying.

 

My own team of about 60 employees who perform operational supply and package preparation duties includes six women”.

How can we make these jobs more attractive to women?

 

Anicia Jaegler: “The first action is the promotion of professions in industry, transport, e-commerce, etc. The supply chain is everywhere and its professions are very diverse. Several initiatives are moving in the right direction: a book for primary school children, a card game for high school girls, etc”.

 

Salomée Ruel: “We need to work on the image of these jobs. We must make it known that these jobs, considered as very manual and requiring muscles, have been largely facilitated by mechanization, which also relieves the men.

 

It should be noted that beyond logistics, the sector now encompasses a wide range of functions, around the management of the supply chain.

 

As a teacher, I insist on their transversal and strategic dimensions. We need more female teachers in logistics. At Kedge Business School, the Superior Institute of Industrial Logistics, where I teach, and the Msc “International Transport” are run by women. We have an educational role to play by training our female students in negotiation and leadership and by trying to change the way students view their colleagues.

 

This image work must be led by companies, but also by journalists and public authorities. 100% female events such as the “Global Women Supply Chain Leaders 2020″, organized by B2G Consulting, are starting to be set up.

 

Finally, in the locker room, change also means strict enforcement of the law that prohibits posters of naked women, which is considered sexual harassment. It may seem like anecdotal evidence, but it’s not always.”

 

Marie-Laurence Deruaz: “We also need an active HR policy on gender equality. At Suez, this means communicating to all employees about the stereotypes and discrimination that women may be subject to.

 

It is important that communication also highlights successful women and career opportunities.

 

Recently, we set up a women’s network to give them more visibility, to allow them to share experiences, but also to decipher codes and remove barriers that they sometimes put on themselves.

 

When I set up my team, I made sure to give both men and women a chance: two out of five site managers are women. On a daily basis, I encourage the teams to be open to this type of recruitment. We have some of the best female warehouse staff.

 

But these changes are not always without difficulties. It is also necessary to support the teams, as some members have difficulty recognizing the legitimacy of women managers. This requires open discussions with these employees to help them take a step back from what they are saying and what they think, but also support for the manager.

What are the benefits for a company to have a more active gender diversity policy?

 

Marie-Laurence Deruaz: “Diversity in the broadest sense of the word is an asset for the company. It is the variety of experiences, skills and points of view on the same problem that will make a team more efficient. And diversity is part of this. As long as you know how to agree to cross the views. I have noticed that teams with women leave more room for communication.

 

Anicia Jaegler: “The research conducted made it possible to link the presence of women and financial performance, sustainable performance and diversity.”

 

Salomée Ruel: “Women are more sensitive to issues of well-being in the workplace and to compliance with Quality, Health, Safety and Environment (QHSE) rules.

 

They are also more sensitive to the respect of suppliers’ codes of conduct; a key dimension at a time when consumers do not hesitate to boycott a brand that violates ethical rules. Finally, research has shown that in supply chain audit situations, teams led by women perform better and uncover more disputes and compliance issues.

 

Generix Group North America helps distribution & manufacturing companies achieve operational excellence with their WMS & MES  Supply chain solutions. We invite you to download our WMS Decision Making Guide  here.

This article originally appeared here. Republished with permission. 

automation
3pls, Archives, Global Logistics, Global Trade Daily

Infographic: Coyote Study Shows COVID-19 Impact on Supply Chain Automation

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To better understand how shippers and carriers are integrating technology into their operations today, and where they are investing for the future, Coyote Logistics conducted an in-depth research study in 2019.

Following a shift to digital adoption never seen before driven by the pandemic, Coyote revisited the topic in 2021.

This two-part infographic series outlines trends in supply chain automation based on feedback from over 850 global supply chain leaders. Below is part two with the remaining trends.

fulfillment
Archives, Global Logistics, Global Trade Daily, Warehousing

Key Considerations for an E-Commerce Fulfillment Model

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More and more people today are choosing to do their shopping online. The first quarter 2021 e-commerce estimate increased 39% from the first quarter of 2020. Whether it is ordering groceries ahead of time for pickup, tapping an ad on Instagram and buying those sunglasses that caught your eye or a monthly subscription for razors that shows up like clockwork, all of these products begin somewhere. In turn, each of these “somewheres” reach their consumers through their own unique fulfillment model.

By 2023, retail e-commerce sales are expected to account for $740 billion in revenue, up approximately 58% from 2017, according to a Statista market study. If you are a consumer, this may not fully interest you. You might say, “So what? I click a button and the things I want arrive when I need them to.” However, if you are someone in the infancy of starting a business, or if you have an established business that you would like to expand via online sales, creating and maintaining an efficient fulfillment model can be a challenge you grapple with every day.

No two fulfillment models are the same, nor should they be. What works for one retailer may not be effective for another. However, regardless of industry, product or business size, many of the considerations involved in designing an operation are similar. This article will explore what those considerations are, why they are important and how any business can transform their customer engagement through a fulfillment model that evaluates options for insourcing or outsourcing operations, considers strategic investments in supply chain technology and leverages supply chain best practices.

INSOURCING VS. OUTSOURCING FULFILLMENT OPERATIONS

Prior to the emergence of widespread retail e-commerce, fulfillment was a relatively straightforward process. Companies manufactured or procured their products, which were then warehoused in a location with viable transportation routes to their points of sale before eventually being shipped wholesale and stocked at brick-and-mortar retail stores for consumers to purchase. So, what changed? In this simplified example, the biggest shift is that now instead of retailers or company-owned stores accounting for the largest share of orders to the warehouse for fulfillment, this volume is coming from the individual consumer. That said, what has enabled this shift to occur? Well, the answer to that question is multi-faceted. Again, keeping things in a simplified view, this change has largely been driven by an overall decrease in shipping-related costs and expanding technological capabilities that increase the speed of the fulfillment process.

The shipping industry has drastically changed in the last 20 years, with outsourced and third-party logistics (3PL) providers significantly contributing to this reduced-cost trend. According to an Acumen report, the global third-party logistics market is expected to grow at a CAGR of around 7.5% from 2021 to 2028 and is expected to reach a market value of around US$ 1,800 billion by 2028.

Shippers continue to report a reduction in logistics costs by utilizing these outsourced services. What is their secret? Primarily, two factors—scale and technology. Scale, in this sense, means that a wide variety of products from various retailers can be stored and shipped from the same location. This increases truck capacity utilization from the 3PL facility (middlemen) to the shipping hubs that handle last-mile delivery to the consumer. The more a truckload can be fully utilized, the lower the shipping cost per individual item.

This principle applies to every retail operation. If you have an emerging business and want to reduce the cost of reaching your customers, partnering with a 3PL service may be a great option. This would allow a company to take advantage of the 3PL’s scale and technology, for a fee, and to tap into a wider consumer market for less than it would cost to internalize their logistics. Similarly, 3PL partners can be advantageous from a time-to-value perspective. By providing a pathway to quickly spin-up and initiate customer engagement via e-commerce distribution, a 3PL partner can provide scale and reach faster than internalizing. However, this time and cost equation changes as sales volume increases. If a company continually achieves a high sales volume, and can afford to implement a lengthier planning horizon, moving to an internalized operating model may be the better option.

This is where understanding and applying the technology utilized by logistics industry leaders, along with adhering to best practices for warehousing and distribution, become critical to a business’s success. On the other hand, if a company does not meet the sales threshold where partnering with a 3PL is advantageous, options certainly exist to improve fulfillment speed, reduce costs and grow an operation by adopting these technologies and best practices on a smaller scale, all while keeping retail operations independent.

TECHNOLOGY

For any operation that desires growth, investing in and improving the technology used to conduct business is a great place to start. This is especially true in a world where anyone who is a maker, creator or inventor can turn ideas into profits by simply creating a website marketplace using common services such as Shopify or Squarespace. Entry into the e-commerce space has never been easier. It is, however, difficult to know what to do next when the sales orders start piling up.

Is too much success a bad thing? Of course not. However, as a retailer, the obligation to customers is to provide them with the products they purchase in a timely manner while reducing defects and incurred costs as much as possible. It sounds simple but gaining brand popularity and maintaining it are two different things. The former is largely based on marketing or innovation while the latter is predominantly due to a high level of organization and business efficiency.

Systems

Let us revisit our scenario mentioned at the end of the “Insourcing vs. Outsourcing” section. In this example, consider a retailer that has introduced an innovative product or brand to the e-commerce market, and sales are taking off. The success is there, but what do you do next to improve organization and efficiency? First and foremost, getting a grasp on inventory and understanding the product movement within the “four walls” of your operation will prove critical to the long-term success of the business. This is where a warehouse management system (WMS) can help. In years past, the acronym WMS has been synonymous with large-scale, highly sophisticated and automated operations. Today, however, this landscape has changed significantly. Gone are the days of high start-up costs and expensive on-site equipment with an army of consulting resources to get a basic WMS up and running. Those kinds of deployments are now predominantly reserved for the most sophisticated large-network fulfillment businesses where subject matter expert resources can provide their highest value.

So why adopt a WMS? A warehouse management system should be thought of, to use a computing analogy, as the “operating system” for your fulfillment business. It can funnel in orders that you receive from your e-commerce web portal and manage workflow—from directed put-away of product to batch picking orders—with the goal of timely fulfillment to consumers. It can track inventory from receipt to storage and replenishment to sale. Furthermore, it will function as the nucleus of your operation where additional systems and technologies can be built out to continue enhancing operational capabilities. These additional systems may eventually include a transportation management system (TMS) for optimized truck-load planning and parcel shipping, a labor-management system (LMS) for improving workforce engagement and order management or distributed order management system (OMS/DOM) for managing various order streams coming from multiple points of sale.

The WMS can even serve as the basis for attaching automation components such as a warehouse controls system (WCS) or warehouse execution system (WES) for use with conveyor, robotics, sorters or storage and retrieval systems. According to a study by APQC, organizations utilizing a WMS spend roughly $3.63 less per $1,000 in revenue across the entire logistics process than those not using a WMS. This may not appear to be much, but as revenue increases, these savings do as well. Likewise, the efficiency gained by implementing a WMS can result in significantly higher-order accuracy rates and reduce the overall number of expedited orders shipped, further lowering overall shipping costs for a seller.

Low-Cost Options

The core function of a WMS is to better manage the flow of goods within an operation by increasing organization, with the thought being that a high level of organization leads to increased efficiency. This is something any operation, big or small, can take advantage of. Vendors today are providing system options for all sizes of fulfillment businesses. On the smaller side, vendors such as Systems Logic’s “Wireless Warehouse in a Box” and Ship Hero’s suite of products provide excellent cloud-hosted and subscription software options for a quick, easy and affordable deployment.

Additionally, these products incorporate direct one-click integrations to many common sales channels for immediate organizational benefits while also providing a foundation for future technological enhancements that may be desired. According to the company FAQs for both vendors, typical setup time for a system of this type is roughly one week but can depend on several factors. These variables can include the size of the product catalog that needs to be loaded in, the number of sales channel APIs you would like to connect and the extent to which you would like to custom configure certain aspects of the product. Notably, purchasing a WMS and utilizing it for fulfillment within one to two weeks should appeal to any seller that views organization and efficiency as primary drivers for the future success of their business.

Mid-Tier Options

On the mid-level side—keeping the cloud-deployed and subscription basis requirements—many players have forayed into this market providing a wide array of capabilities and advantages. Some vendors in this space have begun to incorporate controls systems, labor and order management modules, KPI dashboards and reporting, as well as additional configuration options. Other capabilities of these products include multi-site and multi-tenant deployments, lite-kitting and build-to-order needs, and space-cube and pick-path optimization functions.

Strong vendors in this space include Deposco, Intellitrack, Path Guide, Ship Edge and SKUVault. Further investigating these options may appeal to businesses that are already utilizing a low complexity system but recognize additional capabilities are needed to sustain and expand upon their success. Uplifting systems in this space will likely require coordination with vendor resources as well as possibly employing contract labor that specializes in WMS installations and configuration. Once live, however, these systems give any mid-sized fulfillment operation significant capabilities that they can continue to develop and utilize for years to come.

Top-Tier Options

If you are familiar with the current WMS landscape, then the vendors servicing the top end of the market should not come as a surprise. These offerings service the most technologically complex distribution operations and provide a level of capability that other systems simply cannot match. They are also on the cutting edge of supply chain innovation, often incorporating native control systems, advanced order streaming (opposed to traditional waving) functions, sophisticated put-away and allocation configuration options, as well as enhanced labor and capacity planning tools. Some vendors are even revolutionizing the way their systems are sold and maintained by converting their products to what is known as a “version-less” architecture. This, in simple terms, means that once you purchase a subscription to the product, you will not have to purchase its successor version in the future. It also means that updates and software patches, along with product upgrades, can be pushed out to the customer with minimal intervention or disruption to day-to-day processes at a lower overall cost.

When considering systems of this scale, products offered by Blue Yonder, Infor, Manhattan Associates, Körber-HighJump and SAP come to mind. Other vendors that fall just short of the very top tier include Avectous, Click Reply, Made4Net, Microlistics and Softeon, among others. It is worth noting that these systems will require significant capital investment to purchase, deploy and maintain over their life cycles. The previously mentioned version-less example is a way in which vendors are attempting to address some of these long-term cost concerns. However, the price of adoption is still quite high. That said, if a business requires intelligent and automated decision-making from its systems, along with high visibility and control over distribution operations, these are the best solutions available.

Extended Systems and Other Options

WMS solutions receive significant attention due to the organizational and process capabilities these systems present, but a key feature for sellers may be left out of the vendor-provided solution. This feature is called parcel shipping. Parcel shipping is defined as shipping small and light boxed items, usually weighing less than 100 pounds, that can be moved without equipment assistance. The process of parcel shipping involves packaging the sold items, weighing and measuring the shipping container with its contents inside and addressing the box to the end customer with a printed shipping label. Parcel shipping capabilities can be introduced to the fulfillment process as standalone systems, part of a TMS or within a WMS solution. Many options are available in this technology space so it is pertinent to research the various types of parcel shipping solutions that will best fit your current business’ size and complexity while allowing for future growth and development.

BEST PRACTICES

While incorporating supply chain technologies and automation into a fulfillment model can drive widespread efficiency gains and reduce operating costs, these tools must be utilized effectively to achieve the desired benefits. The parameters that define the successful use of these tools are known to industry specialists as supply chain and warehousing best practices. Now, it should also be stated that these best practices can and should be incorporated to all distribution models regardless of size and complexity. Any distribution operation can reap widespread benefits by implementing these methods to improve organization and streamline processes.

Slotting

The concept of effective slotting can be a major driver of efficiency gains for any size business. Slotting, as a warehousing strategy, is the idea that goods should be stored in areas of an operation that ultimately reduces the overall travel time needed for laborers to complete outgoing orders. A “slot,” so to speak, is where an item lives within the building. This is the primary place you store an item or product to be readily accessible for boxing and shipping. For instance, if workers are consistently traveling back and forth across a building to obtain the most ordered items a business sells, this becomes inefficient. Instead, consider grouping the highest sales volume items together in the most easily accessible zone of an operation to reduce the amount of travel time required to collect and fill orders. It should also be mentioned that these high-volume items will likely change over time and as such, slotting strategies should change as well.

The number of high-volume products grouped together may expand or contract and may also be swapped out with other products as sales figures and forecasts change. It also does not have to stop there. Many businesses organize their entire operations such that the least commonly purchased items are at the farthest end of their building with the most purchased items located closest to pack-out and shipping. Again, the whole idea is to reduce the amount of time and effort it takes to get products out the door and into the hands of customers. This can also be further supplemented with automation such as conveyors, goods-to-person systems and even AI-assisted software algorithms included in some high-end WMS solutions. However, technology and automation are not a requirement to implement this strategy and reap immediate benefits.

Storage Mediums

A question many businesses periodically ask themselves is, “What size building is needed to store and effectively distribute product?” In some cases, the question should instead be framed as, “Is the available space we have being used effectively?” Evaluating and refining the way in which products are stored can be equally as important as determining where they are located and will likewise be a key component of defining how much space a business requires. Like slotting, which functions as a strategy to reduce travel times, determining which storage mediums to use is all about reducing the amount of wasted space, or “air,” that exists in a product location. For instance, if a section of full-size pallet racking is being used to store quarter- or half-size pallets, this space is not being properly utilized. There could be anywhere from 50-75% of unoccupied space in each of these locations. In this example, if these products are consistently stored in pallets of this size, consider reducing the location opening height of the racking bays. Depending on the product weights, it may be possible to add one or two more overall levels of storage to this area and consolidate products without requiring additional square footage.

This is a straightforward example, but now consider how much space is potentially being wasted when you examine a full-size warehouse. What other consolidation opportunities exist? If a business is carrying a large amount, think multiple pallets of certain products at a time, there could be an opportunity to implement a double-deep pallet storage system. This would lead to an increase in the volume that can be stored at one location while minimizing the overall square footage required to do so. Likewise, strategies exist for handling smaller quantities and sizes of products.

Decked shelving systems can provide a way to mix cases of products in smaller locations, further minimizing the amount of wasted space. These mediums can also be quite sturdy, with the ability to stack high, allowing for large volumes of various products to be in one centralized area. Just be sure to keep track of where everything is placed. These strategies can be further expanded upon by incorporating technologies such as automated storage and retrieval systems (ASRS), pallet shuttle systems for very high-density full-pallet storage, as well as both horizontal and vertical carousel systems for small item storage and high throughput rates. Last, but certainly not least, do not underestimate the potential of building a mezzanine. The overall takeaway from this best practice should be before building out, consider what can be accomplished by building up, and strive to effectively use the space available before acquiring more.

Product Handling

When thinking about overall operating efficiency, the goal is to move product from storage to the customer as fast and accurately as possible. A factor that can directly affect this, within the four walls of a fulfillment operation, is the amount of product handling required to complete a sale. Like reducing travel times within the building, minimizing the number of steps required to go from storage to the customer can greatly increase the number of sales that can be completed in a given timeframe. One way to do this is to look for opportunities where processing steps may be redundant. When filling orders, instead of placing items in an intermediary bin to take to a packing area, where they must be transferred from the bin to an outbound shipping carton, consider placing the ordered items directly into the shipping box to eliminate this double-handling.

Expanding upon this idea, another strategy is to fill multiple orders at a time. Think about using a cart or other simple equipment to collect the ordered products from storage directly into their shipping containers and then taking this batch of orders to a pack-out or shipping area. By adopting this strategy of “batching,” further improvements can be made such as grouping similar orders together and minimizing the overall travel distance required. Or alternatively, if volume is high enough, it becomes possible to collect all of the items needed for a group of orders and then sort the products to the right shipping containers at a downstream area, enabling operators to process more volume in a shorter period of time. This is an area that most WMS systems excel in, especially higher-tier systems where more automated decision-making tools are included.

New products and sellers are emerging in the retail market daily. Those enterprises that experience success will continually look for new ways of expanding customer engagement. Whether that means outsourcing operations or taking steps to internally build a robust fulfillment model, the decision to pursue either avenue will be unique to each individual business. Developing an internal distribution operation may seem like a daunting task, especially as success mounts and orders begin to accrue. However, abundant success should not be thought of as a bad thing, but rather a challenge to innovate. The tools required to capitalize on this success and grow towards the future have never been more accessible, though it can be confusing knowing just where to start. Hopefully, the information presented here helps to provide clarity on these topics and outlines a roadmap for improving operations regardless of a business’s size or complexity.

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Sam Nichols is a Project Consultant for Tompkins Solutions. Tompkins Solutions, a subsidiary of Tompkins International, is a global supply chain services firm dedicated to helping clients achieve supply chain excellence and profitable growth. Founded in 1975, Tompkins has integrated its decades of experience in strategy, commerce, logistics and technology to provide unique supply chain consulting and material handling integration solutions. By combining best-in-breed services and technologies, Tompkins delivers a true end-to-end supply chain solution, enabling clients to improve the customer experience and ensure long-term success. Tompkins is headquartered in Raleigh, North Carolina and has offices throughout North America. For more information, please visit www.tompkinsinc.com.

truckers
Archives, Global Logistics, Global Trade Daily, Trucking

Let’s Hear It for Truckers.

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Given the industry’s shortage of truckers, and the mess that has created along the supply chain, mid-September’s National Truck Driver Appreciation Week took on added meaning this year.

Palmetto, Florida’s Port Manatee treated more than 200 truckers to lunches and jam-packed goody bags on Sept. 17, the final day of the weeklong celebration.

“Port Manatee is truly blessed to be served by these devoted professional drivers,” said Reggie Bellamy, chairman of the Manatee County Port Authority. “Especially in these challenging times, truckers have gone above and beyond in demonstrating their commitment to keeping the supply chain running smoothly.”

A. Duie Pyle, a premier provider of asset and non-asset-based supply chain solutions, on Sept. 13 recognized 25 of its less-than-truckload (LTL) drivers for achieving the Million Mile Safe Driver milestone in 2020. Overall, the West Chester, Pennsylvania-based company has had 171 One Million Mile Drivers, 23 Two Million Mile Drivers, and two Three Million Mile Drivers.

“These drivers are true professionals,” said Pete Dannecker, Pyle’s VP of Risk and Integrated Resources, “and I congratulate them for their dedication to safe driving in the congested Northeastern metropolitan region in which A. Duie Pyle operates.”

Free grub, goody bags and safety recognition are nice, but one thing that is usually better appreciated is cold hard cash. That’s what Mark-it Express, an intermodal trucking and freight brokerage company headquartered in Lemont, Illinois, provided to its Land of Lincoln truckers effective Aug. 2 of this year.

“In appreciation for their loyalty, commitment and value the team,” the company announced Mark-it Express drivers in Illinois are now receiving $27 an hour without the Hazardous Materials endorsement and $30 an hour with the endorsement. Mark-it drivers at the Detroit and Kansas City terminals also got pay bumps. “We have been saying over and over that we appreciate our drivers and see how hard you are working,” said Mark-it President Tony Apa.

“Thank you all again–we wouldn’t be here without you.”

freight
3pls, Archives, Global Logistics, Global Trade Daily

Proven Ways to Grow your Freight Brokerage Business

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A quick look at the current shipping industry will show you that there is no shortage of freight brokerage businesses. Numerous companies offer their services all around the world, with various degrees of quality and cost. So, among all that competition, is there a way for you to grow your freight brokerage business? The short answer is yes, there is. But, like with most things in freight shipping, it is not going to be easy.

Understanding the ongoing changes in the freight industry

Growing your freight brokerage business is a multilayer process that we will elaborate on in the following passage. But before we do, it is important to give you a perspective of what the current shipping industry is like. Even before COVID-19 hit, the shipping industry as a whole was experiencing some significant changes. So, while we will go over the most notable aspects, keep in mind that these are just some broad strokes. Technological advancements, both in logistics and in shipping capabilities, came as quite a surprise.

Developments in AI allow for a much greater sense of efficiency and safety, which is why future freight companies won’t be able to stay competitive without it. Eco-friendliness is also a significant concern as fossil fuels tend to be the least-favorite choice among the current companies. We are still far from relying solely on renewable energy sources, but energy development is going in an eco-friendly direction. The final point to keep in mind is that modern customers’ demands are higher than ever. Due to offers like overnight shipping, customers have grown to expect a high degree of service. So, if you are going to stay competitive, you need to ensure top efficiency.

Grow your freight brokerage business – step by step

Seeing how big the freight shipping industry is and how many emerging technologies there are, you shouldn’t try to tackle all of it. The safest way to grow your freight brokerage business is to outline a particular aspect of freight shipping and excel at it.

Step 1: Identify your target audience

Who your target audience depends on numerous factors. Your location, which services you have available, which industries are predominant in your area, etc. If you wish to grow your freight brokerage company, your primary job is to first outline your target audience. The clearer you can pinpoint to whom you can cater your freight brokerage service, the better. Seeing that finding new customers will likely be an ongoing task, we suggest that you outline the “Ideal customer”. That way, your employees can more easily identify potential customers.

Step 2: Outline their needs and requirements

The second step you need to take is to clearly outline the needs of your target audience. You will likely have an idea of what they need. But you won’t have the complete picture until you start doing research and asking questions. Most agents will be more than happy to outline their needs and whether the current provides are satisfactory. Some might even give you ideas on which services are most lacking and where you can easily get ahead of your competition.

Step 3: Improve your technology so that it can facilitate the needs of your customers

Once you understand the needs of your audience, you need to alter your company so that it can best fulfill them. By this, we mean implementing new technologies that allow for more efficiency. Apart from logistics technologies, you can look into CRM solutions and communication technologies to help your customers more expediently.

Step 4: Tackle marketing with due care

One of the common mistakes people make in the freight industry is not tackling marketing with enough vigor. Believing that having a simple website or running a social media profile is enough for a serious company is something you ought to avoid. To draw in and keep your audience, you need to run an active website. This not only means tackling your SEO and posting the necessary blogs. But also managing your social media and ensuring that you have the proper brand recognition. Good freight brokers know that projecting an idea of efficiency and stability is essential to drawing in new customers. And the only way to make that possible is to adapt your online presence to your needs and ensure that your marketing is on point.

Step 5: Set up performance metrics and keep track of your endeavors

Finally, to ensure that your effort produces results, you need to set up performance metrics. Besides measuring how many new customers you get each month, you also need to track how effective your marketing is. Even in B2B marketing, you need to invest substantial funds to develop an online presence. So, do yourself a favor and ensure that your investments are paying off. By setting up clear performance metrics, you can see how your business decisions impact your revenue and whether you need to make any alterations.

Final thoughts

The main point to keep in mind to grow your freight brokerage business is to stay within your niche. The better you can outline what your target audience needs, the easier it will be to make cost-effective business decisions. If you manage to become the top local freight brokerage business within an area, we are sure that you will have no problem spreading your business out to other areas. But, it is essential to develop a healthy base and a firm understanding of what your customers need. Modern industry requirements don’t allow you to spread yourself too thin. Doing so is not only ineffective but is likely to cause you substantial loss in revenue. And seeing how fierce the competition is, it has become more important than ever to excel within a relatively small niche.

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Ryan Smith has worked as a shipping manager and a logistics consultant for over 20 years. He now focuses on writing helpful articles for tbmoving.com and other relocation and shipping companies, as well as providing consultation for large-scale logistics planning.

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

SIX THINGS TO CONSIDER IN PICKING THE BEST THIRD PARTY LOGISTICS OUTFIT

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Logistics is the lifeblood of commerce and e-commerce. For companies that have built their foundations and business models in the process of producing, selling, shipping and delivering goods, it is arguably the most vital cog in the entire machine.

Get logistics right, and a business can thrive. Get it wrong, however, and the effects on any company’s brand reputation and bottom line can be catastrophic.

The challenge for many firms looking to deliver goods to customers is the simple fact that they will lack the resources or know-how and are unable to effectively handle large-scale logistics in-house. To maximize commercial opportunities, products must be deliverable across large geographies, yet this is almost impossible to achieve singlehandedly.

As a result, many will turn to third-party logistics (3PL) providers–supportive organizations specializing in the provision of cost-effective fulfillment and distribution services.

Indeed, logistics is big business. According to estimates, roughly 10% of the United States’ $21 trillion annual GDP can be attributed to the industry.

Given the size of the opportunity, the market continues to become increasingly competitive, resulting in rampant logistics-centric innovation among 3PL providers who today provide a range of highly effective, bespoke services.

For those seeking the help of a 3PL, this innovation is hugely beneficial. Yet not all 3PLs are created equal. Within such a crowded environment, the challenge for many companies is finding the right provider that is capable of unlocking as many otherwise unattainable benefits as possible.

Here are six things to consider when choosing a third-party logistics provider.

Track record

While many services a company utilizes can be somewhat transactional, a 3PL-client relationship must be built on trust. Such providers will become a vitally important part of your business’s success, so it is important that you know they have a proven ability to support your specific needs. 

There are a variety of ways in which you can determine this track record:

-Are they an established player in the market?

-Do they hold accreditations from recognized industry bodies?

-Do they have case studies with example success stories working with companies similar to your own, in your regions of interest?

-What sort of results are they delivering for those clients, and how do these compare with your expectations?

-Take the time to understand a potential providers’ areas of strengths and weaknesses to ensure they are able to deliver upon their promises. 

Expertise

Despite broadly catering to the same demands, the individual offerings of 3PLs will often vary. While one provider might offer a limited number of services but specialize in your specific industry and/or geographies of interest, another might offer an expansive range of services that could help to make your supply chain more scalable, yet only do so on a generalized basis without the ability to meet a stringent set of bespoke needs. Rarely will one company’s model mirror that of another. 

Consider your specific business needs and goals, understand how logistics will best support these, and then you can work to understand what kind of 3PL provider and services you will need. In following these steps, you are more likely to benefit from 3PL services that are relevant to your organization.

Location

The footprint of a 3PL is just as important, if not more so than its services. The best providers will have a well-established network that is able to uphold a seamless logistics operation across multiple locations, either regionally or perhaps globally. 

Indeed, this is a further question: Are you looking to sell your goods locally, regionally, nationally or internationally? One 3PL may have an unrivaled footprint in one state, but not be able to compete with others who specialize in country-wide services. 

Again, consider your own needs and find a 3PL that can meet those requirements.

Compatibility

While cost will often be the primary factor worth considering for any company, it should not be the be-all and end-all. Cheaper doesn’t always mean better value. With 3PLs, it is equally worth considering the company’s cultures and values to understand how they work with your business and cater to your customers. 

-Are they willing to communicate with your company on a regular basis?

-Are they a good cultural fit?

-Do they demonstrate a willing commitment to data sharing that can demonstrate your ROI?

-Do they have a track record of going the extra mile for their customers?

It is worth remembering that your 3PL provider will be an extension of your business, and the quality of their offering will reflect on your own brand. Ensuring you create a truly embedded partnership with a close working relationship is, therefore, vital.

Scalability

With the support of a good 3PL, it is likely that your business will be able to grow more quickly. But does that same 3PL have the flexible and agile characteristics necessary to support that growth?

Scalability is a fourth important element to consider when selecting such a provider. If the answer to the above question is no, then you may find that you will be forced to change 3PL provider in the near future, causing unnecessary administration, stress, costs and disruptions.

Equally, it is not just about whether a 3PL can scale with your business, but what impact this might have.

-What would this mean for your costs?

-Will the services and value for money improve, reduce or stay the same? 

Place your roadmap front and center and ask yourself whether a 3PL would be able to support this. 

Innovation

As has already been mentioned, competition in the logistics space continues to spur an ever-increasing amount of innovation among 3PL providers who are deploying state-of-the-art technologies and cutting-edge services to both cut above the noise and benefit their customers on a daily basis. Some 3PLs will be more committed to innovation and technologies than others, however. 

To identify those that will value innovation and bring plethora of benefits to your business not only now but in the future, consider their current offering.

-Will their software and systems integrate with your own?

-How do they track metrics, data and deliver analytics? Can they provide this information to you easily?

-How usable and up to date are their website, dashboards and alike?

Those that can deliver positive answers to these questions will likely be companies that are committed to continually enhancing the service they bring to their customers and will likely maximize industry innovation to the benefit of your business.

Ultimately, it is important to do your research. Don’t just settle on the cheapest provider. For something as important and integrated as a 3PL, which will become an extension and representation of your own brand and business, it is important to focus on quality in all aspects. 

By considering these six simple factors, you will be well placed to find a more suitable, more relevant 3PL capable of meeting your organization’s needs. 

chain
3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

Top 5 Ways to Crisis-Proof Your Supply Chain in 2021

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Here’s how manufacturers, distributors, and retailers can shore up their supply chains with an eye on making them more resilient and crisis-proof in 2021 (and beyond). 

If there’s one thing the world’s manufacturers, distributors, and retailers learned in 2020, it’s that there’s no such thing as being too prepared to tackle a supply chain crisis. With companies across many sectors still grappling with COVID-related material shortages and the world’s transportation networks struggling to keep up with the demand, there’s no time like the present to make your own supply chain more resilient, agile, and crisis-proof.

“The COVID pandemic caused significant disruption to 80% of supply chains around the world, with the result that nearly half (47%) of supply chain operations will be overhauled,” Kearney reports. “But as dramatic as these figures are, they still understate the size and scope of supply chain challenges.”

Offsetting Severe Disruptions

It didn’t take long for the global pandemic to throw companies around the world into crisis mode. In March of 2020, more than 80% of companies already believed that their organizations would experience some impact due to COVID-19 disruptions; by late-March, that number had grown to 95%, according to Institute for Supply Management (ISM).

“Severe supply chain disruptions were experienced in multiple regions to varying degrees,” ISM reported a few months later, noting that in early-March, 6% of firms reported “severe disruptions” across their supply chains. By the end of March, severe disruptions were being reported in North America (9% for U.S. supply chains, 6% for supply chains elsewhere in North America), Japan and Korea (by 17% of respondents for each), Europe (by 24% of respondents), and particularly China (by 38% of respondents).

5 Steps to Take now

By June 2020, Accenture was reporting that 94% of Fortune 1000 companies were experiencing supply chain disruptions due to the pandemic. “Disruptions to supply chain caused by COVID-19 were unpredictable and devastating, drawing attention to how critical supply chains are to sustaining business success and daily operations,” Supply & Demand Chain Executive (SDC) reports. “Unfortunately, the pandemic has also underscored how vulnerable supply chains are to sudden adversity.”

To help your supply chain better withstand the shocks of a future crisis, consider implementing some or all of these strategies for bolstering resilience:

1. Fully leverage connectivity and digitization. “Advancing connectivity with supply chain partners and digitizing information to generate a single version of the truth guarantees that enterprises can inform and cooperate with their entire supply chains to respond in unison,” SDC explains. “Organizations that connect their supply chain partners into a multi-enterprise business network can have access to real-time information, rapid access to capital, and enhanced shipment visibility.”

2. Strive for end-to-end visibility. The goal should be to gain insights into every aspect impacting inventory in the supply chain. This includes enterprise-level demand forecasts and purchase orders, cooperation with suppliers to ensure that availability and capacity needs are met and connected or “single-instance” applications of enterprise resource planning systems (ERPs), SDC advises. “This visibility also covers warehouse management across your distribution network, transportation tracking and visibility, in-house and outsourced production and final delivery and settlement.”

3. Improve partner collaboration. The lack of communication between trading partners led to a lot of late orders, missed shipments, and understock situations in 2020. It also forced more companies to examine the role that basic exercises like data sharing across supply chain networks can play in the overall health of those networks. “Effective collaboration with partners is critical to supply chain resiliency,” SDC says, noting that early sharing of forecasts and orders is a best practice, whether volatility exists or not.

4. Diversify your supply sources. Don’t let your single-source approach become a point of failure in a crisis. Instead, consider alternate supply sources and begin weaving them into your overall procurement plan before disaster strikes. One way to do this is by near-shoring the manufacture of certain components, or you might want to adopt a China plus one policy, whereby most of your production takes place in China while some of it happens in another country. These and other diversification strategies help lessen risk and ensure that you don’t have all of your “eggs in one basket” when the next disruption emerges.

5. Build more trust into supply chain processes. There was a time when keeping things “close to the vest” and blocking organizations from obtaining internal data, forecasts, and other information was just a part of doing business. Fast-forward to 2021 and the business landscape basically demands higher levels of trust and transparency across trading partners. This, in turn, helps those partners shield their respective supply chains—and, the ecosystem as a whole—from shocks and disruptions. “Supply chain transparency is one way to enable communication among suppliers,” Symbia Logistics points out. “With open discussions, all parties can tackle issues that impact pricing, quality, and competitiveness. If a supplier is unwilling to share data, a company has to wonder why. What is the supplier trying to hide?”

By implementing some or all of the above points, companies can shore up their domestic and global supply chains and prepare them for the impacts of the next disruption—no matter how big or small that event may be. After all, it doesn’t take a global pandemic to bring a supply chain to its knees and the next interruption could be waiting right around the next corner.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

This post originally appeared here. Republished with permission.