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THE TOP CHALLENGES 3PLs FACED DURING THE PANDEMIC—AND THEIR SOLUTIONS

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3pls, Archives, Global Logistics, Global Trade Daily

THE TOP CHALLENGES 3PLs FACED DURING THE PANDEMIC—AND THEIR SOLUTIONS

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Prior to the COVID-19 pandemic, companies were increasingly relying on 3PLs to manage their supply chains, largely thanks to the steady rise in e-commerce and the impact of the digital marketplace on traditional brick and mortars. However, no one could have predicted the disruption of 2020, as retailers scrambled to move an unprecedented amount of goods quickly and safely in response to consumer demands. In fact, the Institute for Supply Management reports 97 percent of companies have been impacted by supply chain issues caused by COVID-19.

The pandemic forced companies to reevaluate their entire supply chains almost instantaneously to successfully adapt and meet the demands of the changing environment. Because of this, the use of 3PLs rose to the forefront for many brands in 2020 as they looked for strategic, critical guidance to best meet the challenges of the day.

Approximately one year into the pandemic, now is an optimal time to reflect on the top challenges that faced 3PLs during this period and the solutions that will continue shaping our industry in 2021 and beyond.

Problem: Pre-Pandemic Labor Shortages Escalated

The labor shortage is not a new challenge, but one that was exacerbated by COVID-19. Pre-pandemic, the steady rise in e-commerce was creating significant labor issues. In fact, CBRE reported e-commerce created demand for an additional 452,000 warehouse and distribution workers in the U.S. between 2018-2019.

On the transportation side, the driver shortage is ranked as the No. 1 industry concern, according to the American Transportation Research Institute. This is largely due to the higher-than-average age of the existing workforce (46 years old) and the subsequent impact upon exiting for retirement without having younger recruits to fill the void.

With these challenges already facing our industry, the pandemic took them to new heights as more workers were needed to accommodate the massive uptick in shipping volumes due to e-commerce. COVID-19 also presented new considerations, such as rising wage pressures due to the pandemic’s economic, political and public health challenges, as well as older drivers opting for early retirement out of safety concerns.

Solution: Incorporate Automation Advancements 

Automation is increasingly being utilized as a solution to help manage labor shortages. From a warehouse perspective, this means more frequent use of automated guided vehicles, goods-to-person robotics picking, and automated racking and shelving techniques to improve efficiency and cost-competitiveness.

GEODIS recently conducted a beta test at a distribution facility in Indianapolis to pilot the increased use of robotics in its warehousing efforts. Using 21 robotic units that offered an autonomous and smart-picking solution, a leading women’s apparel brand saw a 100 percent increase in operational efficiency. This is just one example of how automation can increase efficiencies and address labor market concerns. 

While automation has largely taken off within warehousing, we expect to see strides moving forward to specifically address driver shortages. 2020 was filled with exciting advancements in this realm, and we will continue to see innovative solutions like autonomous vehicles and drone delivery enter the market at a greater rate.

Problem: Capacity Shrank While Demand Surged

In 2020, the traditional peak season came and never left from a volume perspective. But while demand surged, capacity evaporated. As more than 50 percent of air freight is transported via cargo holds of passenger planes, capacity plummeted as flights were cancelled. For ocean freight, the lack of goods primarily out of Asia created a ripple effect that was felt globally. All the while, road shipments faced capacity issues due to skyrocketing e-commerce orders coupled with ongoing labor shortages.

The capacity constraints in the parcel delivery network were particularly a shock to the system for many in 2020, which was largely a byproduct of this acceleration in e-commerce. According to Transportation Impact customer data, parcel volume was traditionally 60 percent commercial and 22 percent residential prior to COVID-19. During the pandemic, this ratio drastically flipped with 40 percent being commercial and 46 percent residential. While delivery networks were previously accustomed to moving a large amount of goods with fewer stops, the process was reversed and created an immense strain on the current infrastructure.

Solution: Rethink Delivery Strategies

Due to the capacity constraints we saw in 2020, 3PLs will need to incorporate more diverse delivery strategies moving forward. For example, a solution for small parcel delivery issues is to build an expansive network that includes multiple international providers. By building and leveraging the network, it provides 3PLs the opportunity to identify the best small parcel provider to use in real time for its customers based on current capacity and shipping needs.

Air cargo delivery will be an interesting area to watch moving forward, as we continue to provide solutions that will help us solve 2020 challenges. Because of the increase in e-commerce, 3PLs will have more strategic control over flight patterns. For instance, GEODIS recently expanded AirDirect services to add a weekly flight from Shanghai to Guadalajara. 

Problem: Unpredictable Buying Patterns

In 2019, online retail sales in the U.S. amounted to $343.2 billion. By 2024, this is projected to skyrocket to $476.5 billion. 

The pandemic led to unpredictable buying patterns as consumers shifted away from brick and mortar stores to e-commerce platforms. While top e-commerce categories prior to COVID-19 were consumer electronics and apparel/accessories, the pandemic created an entire new demand for the type of goods being purchased online. In particular, demand for essential items such as groceries and health products grew in numbers we hadn’t seen before.

One of the biggest challenges of the pandemic—and one that will remain—will be anticipating consumer buying patterns moving forward. Brick and mortar sales will increase as vaccines are more widely distributed, and we will see a new ratio of in-person to e-commerce shopping. The convenience factor of buying online is here to stay, but the question remains what the scale will be.

Solution: Accelerate Digital Technology

While it’s impossible to pinpoint consumers’ future buying patterns, the adoption of new technology by 3PLs will help brands build resilience. For instance, providing real end-to-end visibility will be imperative moving forward. By offering a robust “control tower” that integrates complex operational systems across all modes of the supply chain in one streamlined view, companies can best track and trace shipments, strategically manage inventory, and overall receive transparency that leads to faster and smarter decision-making.

Additionally, we will see innovative technology that offers solutions to move products closer to the end customer. For example, GEODIS recently released a new digital platform, City Delivery, that enables retailers to deliver goods directly to consumers from the closest retail store in just a few hours thanks to a combined delivery network of traditional carriers and private individuals. We will continue to see new technology that revolutionizes last-mile delivery, particularly in the urban environment, as e-commerce buying trends continue in some capacity.

Looking Ahead

No one knows what challenges lie ahead, but 2020 offered lessons to 3PLs we will take with us moving forward. Due to the pandemic’s spotlight on supply chains, we expect companies will increasingly leverage 3PLs as strategic, solutions-minded partners that will help protect and enhance their operations in the face of any challenge. By incorporating lessons learned during the pandemic, we will be best equipped to provide the solutions needed to support their growth moving forward.

___________________________________________________________________

As president and CEO of GEODIS in Americas, Mike Honious is responsible for freight forwarding, transportation management, business development, strategic management office, legal, accounting & finance, human resources, engineering & technology, ProVenture, shared service center and IT. He previously was the COO of GEODIS in Americas, and before starting with the company 15 years ago, he held several senior level operations positions at Gap, Inc. 

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Archives, Global Logistics, Global Trade Daily

The Four Levels of Supply Chain Risk

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Supply chain risk comes in many forms – from industry-crashing crises to supplier challenges. To manage it effectively, you need to assess it at every level.

Supply risk can take many forms and can manifest anywhere in the supply chain process. So, to be effective, supply risk management must be built around a framework that evaluates and assesses risk at every level – from overall risk exposure across the value chain, right down to the individual supplier level.

A holistic approach to supply risk management is built around four different levels of supply risk. Here is a look at how those levels break down, and how building your own risk management framework around them can help you develop a holistic view of risk across your supply chain.

Level 1: Value Chain Risk

A common pitfall in supply risk management is assessing risk at an individual supplier level first, then working your way up to developing a holistic risk view. But, in practice, assessments should always start at the value chain level.

By starting with a broad, comprehensive evaluation that considers the full stream of activities required to supply or ‘develop’ a commodity or category, you can establish a deep understanding of the factors, drivers, and variables that can influence it.

Assessing the value chain at this level enables you to look beyond simple economic factors, and encompass a huge range of additional quantitative variables, such as political, social, and regulatory factors.

We start at this level because it enables us to better understand the context and potential impacts of each variable and factor. By looking across the value chain, we can more clearly identify the knock-on impacts of each driver, and truly understand the threat they pose to operations.

That’s not just valuable for shaping your overall risk management strategy – it’s hugely valuable information that will help you better identify and prioritize high-impact risk factors as you work your way down to supplier-level assessment.

Level 2: Category risk

The next logical analysis level is category risk – which is to recognize the inherent factors that influence risk for a specific category. Practically, this requires a deep understanding of both the economic model that underpins a particular category and the specific influencers of those economics.

Here, the starting point is to construct a thorough Should-Cost Model for your category. A strong cost model provides deep insight into what makes up the economics of a product or service – at a line-item level – and provides insights into the key drivers of category economics.

But building that model is just the beginning. What you do with the model – what you learn from it – is where the real value is. By conducting a thorough trends and dynamics analysis, you can build up an understanding of the dynamics that can influence the cost levers that make up your model. Then, you can start identifying which changes and trends are worth looking at, and why.

Level 3: Supply base risk

With the value chain and category analyses as the foundation, attention must now turn to assess risk across the supply base. Critically, this isn’t a one-off exercise – it’s a continuous process, where organizations constantly evaluate and re-evaluate their supply base.

This is where supply risk management gets challenging – and technical. Many organizations have hundreds of suppliers to manage and keep track of, each with a unique risk profile. To build a complete, up-to-date view of risk across them, your team will need some help.

Fortunately, AI and the development of new consumerized dashboards are now making continuous assessment a practical reality, even for companies with extremely large supply bases.

These executive-friendly dashboards are tremendously valuable – but only if they include both financial and non-financial business variables. They should largely be automated, but also enable human input and intelligence, providing a holistic ‘health screening’ that flags key variables and changes across the supply base.

Level 4: Individual supplier risk

Another big advantage of using AI and dashboards to automatically assess risk across your supplier base is that it can help surface the individual suppliers that most need deep individual analysis, so that the right strategic decisions can be made about them.

Historically, supplier risk assessment entailed a cursory credit check, some sort of basic financial evaluation, or an outreach to the suppliers themselves for more information. Today, however, there is a far wider toolset available to procurement executives, enabling them to consider both the quantitative and qualitative factors that make up financial sustainability and business viability.

To understand those factors, teams must ask a demanding set of questions; How does this supplier relate to its competition? How much cash is on hand? What are their key ratios? What are their debt risks? How has the company developed year-on-year? Are there any external factors that will impact the company’s financials?

In other words, not only financials, but also business, operational, and competitive assessments must be factored into the discussion. This kind of holistic assessment is essential at the individual supplier level. Of course, this will not be needed for all suppliers, but it will be needed for the most strategic (or the most problematic).

Take a comprehensive look at supply chain risk

Want to learn more about the four levels of supply chain risk, and discover what it takes to build and execute a robust, future-ready risk strategy in today’s increasingly vulnerable and crisis-prone supply environment?

Get your copy of Risk & Your Supply Chain: Preparing for the Next Global Crisis and explore expert insights from The Smart Cube’s Omer Abdullah and Subash Chandar, designed to help you build a more resilient supply chain and prepare for whatever tomorrow may bring.

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3pls, Archives, Global Logistics, Global Trade Daily

Here’s How Quadient Helps Your Company Box Smarter

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Following the first-ever all-digital ProMat experience, Global Trade Magazine had the opportunity to learn about the companies changing the way the supply chain is optimized. We talked with Sean Webb, Director of Automated Packaging Solutions in North America for Quadient to discuss how the company’s CVP models are supporting businesses of all sizes. Quadient’s machines showcased at ProMat include the CVP Impack and CVP Everest Automated Packaging Systems – each offering solutions dependent on specific applications each customer has.

What operations challenges do the automated packaging solutions solve for the supply chain?

“Operationally, the ability to keep up with fulfillment has been a challenge for companies. Associated with that comes the productivity factor and labor. Some are throwing more labor at the issue to manage this environment, which creates more of a challenge. Having the right-size box is critical and has become a big issue. Many companies are getting hit with DIM weight charges, while transportation costs increase and are becoming quite significant. Additionally, there is the customer unboxing experience to consider as well. Having the right-size box without a lot of the dunnage to fill empty space becomes important.

This, along with material costs, are challenges in the market. We are seeing raw materials increase, so any way we can minimize that spend is critical – including the dunnage I spoke about previously. There are also negative environmental issues tied into the dunnage people are putting into those boxes as well.”

Discuss the eco-friendly benefits of automated packaging solutions.

“There are a few different ways the solutions affect the sustainability issue for customers. First, the materials themselves are biodegradable with corrugate that breaks down over a shorter period of time in a landfill versus indefinitely as seen with plastics. Once the dunnage is eliminated, it is no longer ending up in a landfill. Lastly, when you create a smaller box, you can put more in a truck, for example. This allows for fewer trucks on the road to carry products which translates into a smaller carbon footprint overall.”

Discuss the cost savings aspect businesses can benefit from with this solution.

“When we look at the three main areas from a savings standpoint, we break it down into labor first and foremost – you’re looking at automation that allows you to have a higher productivity level versus the manual approach. There is about an 88 percent savings on average per our data analysis from that alone.

In terms of transportation savings, when rightsizing the box, customers can see an average of 32 percent savings. We certainly see that vary with some customers depending on their applications, with savings that can be significantly larger.

Then you have material savings. If the customer is putting in void fill, there are significant savings that add up. On average, there is a 38 percent materials savings for our customers that make the transition to an automated packaging solution. In addition, by switching to fanfold corrugate rather than the standard RSC boxes, there is an average 29 percent less corrugate used.

The CVP Impack is designed for up to 500 parcels per hour, while the CVP Everest auto-boxes up to 1,100 parcels per hour and would meet the needs of high volume fulfillment or e-commerce companies. For either single- or multi-item orders of soft or hard goods, these automated packaging solutions do not require additional equipment, boxes or operators to eliminate or reduce the need for void fill materials.”

How do the solutions support employees?

“Certainly, these solutions support being able to fulfill the orders and meet the timeframes customers are expecting. By adding this automation, it allows companies to repurpose their workers and reapply them to different areas within their warehouse, making them even more efficient. Part of the challenge from a labor perspective is finding the workforce with the flexibility that businesses need and are looking for. For example, 10 people could typically support a normal order volume situation but 40+ people are needed for peak periods. Finding that labor force and space becomes a big challenge, and the automation allows for the flexibility required when it’s needed, without added costs.”

What size business is this solution for? Can smaller businesses benefit from this?

“There’s really no standard application. What we have seen are companies with a lower throughput number that we thought would be challenged to justify this kind of automation actually finding that they are able to use it and remove a bottleneck in their operations. Lower productivity numbers are essentially doubled or tripled because they are now able to get more orders out. These companies can increase efforts in driving product demand.

For larger operations, there is a need to put out many orders each day and this type of solution is great for them. It allows companies to meet high demands seamlessly. Both large and small companies can benefit from this solution and there is no “ideal customer” as it is extremely broad even on the industry level. We serve manufacturing, 3PLs, technical wholesalers, and really any company that is shipping products out to customers.”

_______________________________________________________________________

Sean Webb is the North American Director of Automated Packaging Solutions by Quadient. With over three years of industry experience, Sean is passionate about helping shippers relieve their daily challenges with automation to optimize their efficiencies, productivity and bottom line. Sean previously held partner and senior level positions in the financial sector.

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How to Effectively Communicate Your Value as a Logistics Company

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A company’s values are its ultimate selling point. Your services may be very much like every other logistics company’s, yet what will always set you apart are the values and belief system you nurture. 

The question that now naturally arises is how can we communicate this value with our customers? What are some of the marketing and PR tactics that can be employed to best showcase that deeper and more meaningful level of our business? 

After all, it’s very easy to promise you’ll store and ship item A from point B to point C in record time – and it makes you no different from your competitors.

Here’s what you can do to rise above the competition and show your customers what you’re really about. 

Know Your Target Customer(s) Deeply 

First of all, you need to truly understand what your customers are looking for. It helps if you target a very specific audience, as opposed to casting a wide net. The more specialized you are, the better you will be able to understand the unique needs of a customer. 

For instance, you may work with brands that sell a specific kind of merchandise. Let’s say this is the merch of famous social media influencers. What these kinds of clients will want is speedy shipping and a unique packaging experience, one that can be personalized to each individual influencer. 

By researching the online habits of your target audience and their requirements (via email, call, in person), you will be better able to tailor your services. You’ll have crucial knowledge to help you find that link that connects your values with their needs. 

Write Focused Web Copy 

One of the best ways to communicate with your audience is via your website copy. Ideally, you want it to focus on your customers’ needs, pain points, and desires, and how your solutions are able to solve them. Don’t go on and on about how great you are: explain how what you do solves their problems. 

Always speak in the language of your customers (which is where the research from the above point comes in). You can’t expect the same voice to appeal to international corporations and small local businesses.

Use superlative and comparative language where it makes sense. Phrases like “the most affordable,” “the most reliable,” “the longest-running,” etc. will help highlight what makes you stand out and how this can be beneficial to your audience.

Use Statistics and Social Proof 

You should also look to condense your key stats down into easily digestible bits of information. Numbers often speak louder than words. To add another layer of trust to your website, point out the number of satisfied clients you’ve worked with, the miles you’ve driven, the number of items you’ve shipped, and so on. 

Here’s an example from ShowMojo, which uses five simple statistics to underline the benefits of using their services. 

Of course, the challenge here is to top your competition. What if someone has been in business longer than you have? When this is the case, and it most often is, try to pinpoint those unique values that make you different. 

Choose to focus on one type of item or one type of service. Highlight something about your facilities that makes you stand out. Shine a light on your employees or even your customers. 

The copy you use can also be what puts you on the map. For instance, a phrase like “234 headaches averted” is more emotive than the customary “234 customers served”. 

Use Imagery to Communicate Better 

The other great way to communicate better with your audience is to use imagery and icons that strengthen your message. 

Consider every single visual element of your website: starting from the color story, to the images and the way the pages are structured. What can you improve that will make your customers both have a better experience browsing and better understand what you’re all about?

Visuals have an inherent ability to spark emotions and connections on a level that is much deeper than words. Just the use of different, better quality images that trigger a certain emotional response can improve your conversion rates. 

Your choice of imagery and visuals ties right back to knowing what your audience wants. What is the major challenge they are facing? And what are you doing that will make it better?

For instance, Haystack has a great animation that’s designed to make you feel a bit on edge at first. But then, they provide a solution in the same visual, illustrating how their services simplify operations and streamline processes.

Create Memorable Offers 

Sometimes it’s all about sticking in someone’s mind. You may not convert a visitor on the first go, but if you create a memorable offer that solves a particular need, they are likely to remember you and come back when they need that specific service. 

The future (and present) of marketing is in personalization and customization. Offers tailored to the needs of every individual customer are much more valuable and sell better than pre-made packages that only assume what they will need. 

If you’ve been in business for a while, you’ll be able to make the best of both worlds and create package-like offers that still allow for plenty of customization where it matters the most. Whether it’s storage solutions, pickup and delivery times, the duration of your services, or any other variable that can be tweaked per customer, offering a choice (but not too much of it) is what makes customers convert. 

Make sure you don’t fall into the trap of choice paralysis, and only allow your customers to tailor some elements of the offer. Too much choice and having to come up with the entire service from scratch will only cause more headache. 

Communicate Your Unique Value Proposition Wherever Possible 

Finally, you want to make sure there are numerous touchpoints between your customers and your values. Here are just four of them:

-Your web copy – Everything you write online, from your website copy to your social media captions should communicate your UVP. 

-Speaking to customers and prospects – In-person marketing is just as important as your web presence. After all, if you communicate one message online and then come off as a completely different company in person, you won’t be doing yourself much good. Ensure all company representatives are coached on the best ways of communicating your values and USPs. 

-Speaking with others in your industry – Word-of-mouth marketing is also an important aspect of customer communication. So, you want your values to shine through in your chats and emails with everyone in your industry, as well as your current customers. You never know who might send your next client your way. 

-When someone asks your employees about their job – Your staff (even the employees who don’t have customer-facing jobs) should know the values your company is built on. They can represent them when speaking to friends and acquaintances who ask them what it is they do for a living. 

Final Thoughts 

Communicating value comes down to reinforcing your core message and understanding what your audience is truly after. With enough research, a decent creative effort, and a lot of testing, you can come up with a formula that not only converts your leads but also makes them proud to be working with you. 

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Archives, Global Logistics, Global Trade Daily, Warehousing

Algorithms: How do they Contribute to Warehouse Preparations?

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To be considered efficient and profitable, a warehouse must achieve a certain level of productivity. It is therefore imperative to take note of any disruptions during the preparation stage: resupply must be anticipated and calculated as accurately as possible! But how does one optimize warehouse preparation operations? Managers are now using algorithms more and more, but what exactly do they contribute? What functions do they help automate? Here are some explanations from Generix Group experts.

Preparation shortages: a warehouse manager’s nightmare

A recent DataLab Generix Group assignment with one of the group’s clients demonstrated that disruptions in preparation were the primary factor in decreased productivity. It is therefore essential that preparers never find themselves in a position of having an empty or under-stocked warehouse, unable to meet order demands.

In such a case, they should make an urgent resupply request (which is always possible) and wait for a pallet to be brought down from the reserve in order to finalize the order. If the preparer can switch to another order, the process is not ideal.

To avoid this type of situation, two types of preventive strategies will be used: setting resupply thresholds and anticipating upstream calculations (e.g. from the day before).

Resupply thresholds

Resupply thresholds help to prevent product shortages. A specific setting will trigger a resupply action as soon as a minimum quantity or “resupply threshold” is reached in a picking location.

This is a specific action, which must take into account the capacity of the storage location. Clearly, it is impossible to place two pallets in a location sized for a pallet, but you can probably fit a pallet and a layer of cardboard boxes for example. Because the sizes of the locations, pallets and boxes are saved in the system, calculations are done automatically using simple algorithms that add up the dimensions of objects with a certain margin.

Anticipating preparation

When preparing for upcoming orders, a simulation tool can be used, which is also based on an algorithm. Its role is to simulate a wave of preparation from the order portfolio to be met. It deducts the total quantity needed for each item, verifies the remaining amount in the picking location, and automatically triggers a flurry of resupply missions, targeting orders to be met as quickly as possible.

This transaction can be calculated from the portfolio of orders already received in the WMS, but it can also be based on the forecast data sent by the ERP to the WMS in the form of a dedicated message. For example, warehouse consumption from the last week of a reference period deemed relevant can be used to take into account seasonality or any cyclical business model.

It is also possible to complete picking a day in advance. However, such a strategy can only work if you have time and resources. When operating in a tense flow, selecting truly useful stock replenishments is by far the best approach.

Supply “just in time”

When faced with tense and very high-load periods, WMS algorithms allow for even greater accuracy on the initiation of emergency resupply missions. This will ensure the optimal use of resources, focused on critical needs in real time.

This tool automates resupply management by letting the system trigger replenishments at the most appropriate time, as needed. The system is, of course, based on the theoretical data specific to each warehouse and the type of preparation management present. This algorithmic computational feature will take into account many parameters:

-priority modification by the preparer;

-comparison of stock and minimum picking;

-needs of the current wave;

-needs put directly on support tools in preparation

Based on these criteria, which can be prioritized by settings, the system will recalculate the needs of current preparations and set precise timing to initiate resupply. To illustrate the depth of this calculation, we can cite the consideration of elements such as time spent processing orders, changing products, changing aisles, preparing future actions in advance and even time spent on break!

Compliance with date contracts

The decision can be made to combine compliance of expiration dates and “date contracts.” In this case, a customizable safety margin is added to the expiration date in order to honor a customer commitment. It is a widespread technique in the field of mass distribution to ensure a certain shelf life, particularly critical for perishable foodstuffs.

This date compliance algorithm can also be applied to all warehouse operations, and is one of Generix Group’s WMS greatest strengths.

Waves of preparation

This is an essential step in optimizing work planning from a portfolio of orders to be processed. We select orders, or certain elements of an order, and choose a way to effectively manage their processing.

In order to make this selection automatically, we set up “waves” of orders. A wave is a selection from a portfolio, chosen based on several criteria. The primary planning obstacles here are:

-The latest target loading time;

-The carrier;

-The delivery rounds;

-Orders for fewer n parts or more x parts;

-Permission to have missing items;

-Complete pallets and full packages…

As a result, we can put procedures in place that have been inspired by TMS. In this case, we’re referring to “TMS-drawn preparation”.

The manager’s talent lies in his ability to adjust their tools to orchestrate this work according to manageable and adjustable time slots based on the workload of the day and the resources available. Traditionally, planning is done according to a daily or half-day schedule. However, anything is possible depending on the organizational model chosen by the manager. Moreover, it is also possible to choose wave models according to the needs of the given day.

The wave, of which the result represents a list of products to be prepared (or “queue”), is only the first step in the algorithmic calculation. This first calculation is not so much focused on the productivity of operations as on the priority of the orders to be served.

From this list, the system will calculate successive workflows of order groups: generating so-called “missions.” A mission is a to-do list that will be proposed to operators. This raises the question of how to arrange these tasks in a logical way to improve productivity in warehouses. It thus includes numerous parameters, including optimizing preparation routes or triangulation.

By automatically triggering replenishment actions, implementing compliance with date contracts or managing preparation locations, algorithms built into a WMS optimize the use of resources. They are therefore a real asset to best predict the flow of preparation and avoid warehouse supply shortages.

LEARN MORE ABOUT GENERIX GROUP’S WMS

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The Arrival of Digital Logistics

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Consumers turned digital before manufacturers and distributors, including those in the logistics industry. It may be hard for companies to keep up with the constant changes and technological advancements. Cloud technology is a solution for companies to stay up to date, helping the traditional logistics industry to become a “virtual logistics industry.”

New technology changes many aspects of how a logistics business operates, brings new market entrances, brings in new customers, and manages new partner expectations, which consequently triggers new business models. Traditional methods of running logistics need to be revamped to become digitized and more transparent among partners. Operations need to be adjusted where documents accompany one shipment and if one document is missing, a shipment can be delayed sitting idle for days.

The logistics market, with an estimate approaching US$ 6.6 trillion dollars, is at stake. Logistics companies cannot afford to sit back and watch, they have to be proactive to new technology innovation. New technology will target digitization and most of logistics functions and its administration, such as automated scheduling, consolidation of pick up and deliveries from multiple shippers, auto instruction to the right warehouse operator to pick up certain items, automate marketing functions to look for cargo on return trips, deliver auto work order to driver, auto-generated issue invoice to customers, and more. With the help of technology in logistics services, a new approach in collaboration among partners is essential as it will provide capacity fulfillment to reduce much-needed operation costs.

 An adaptation of real-time digitization and data automation under one platform will give access for independent companies to participate in a technological economic era. It is estimated 535,000 distribution centers scattered in the US operate as standalone independent companies. Now, imagine if 5-7 percent of them are willing to collaborate with sales and customer services references under one logistics platform. Each company and its customers will gain efficiency, productivity, and faster workflows.

The environment of traditional logistics businesses that once took days to finalize is now being reduced by the real-time technology digitization revolution with simple real-time clicks. Technology provides an opportunity for many people in isolated areas to participate in new economic and technological ways of living.

The environment of business is becoming fundamentally altered by globalization, and followed by recent pandemic that have devasted most traditional business prospects. Our strategic decision to stay competitive and to operate much more efficiently has to be based on these contexts. Logistics companies face a lack of coordination and collaboration between or among effective partners for some time, resulting in a decrease in overall efficiency and a higher operating cost on different systems. An improvement of sharing real-time information in cloud platform among active logistics partners is one of the key elements in improving collaboration and cooperation, including an increase in the bottom line.

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Top 6 Supply Chain Startups to Watch Out for in 2021

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Supply chain companies provide that critical network between companies and suppliers. It focuses on the production and distribution of products to the final buyers.

The chain is a combination of different factors. These include activities, people, resources, and information. There is a lot that goes into getting the final goods to the consumers. 

It includes the transformation of raw material into the final product. Some are in charge of transportation to the relevant points. Others work on distribution to ensure that it gets to the right people.

Startups have come up in the sector. They have fantastic solutions to increase efficiency in the processes. Our article will look at the top 6 supply chain startups to watch out for in 2021.

Supply Chain Startups to Keep a Close Eye On In 2021

In coming up with a list of startups, we spoke with a marketing agency for startups. One of the factors the agency advised we look out for is the level of innovation. The products or services should add efficiency to the processes. It also helps if they are in the business to improve the lives of the end consumers.

Hive

Hive is a German supply chain startup company that focuses on warehousing. Production companies need space for their products. It helps if it is close to consumers for faster fulfillment of orders. Warehousing can be a challenge, especially in larger cities.

For companies that have e-commerce shipping, a lack of warehousing can be a nightmare. Hive has stepped in to take care of this critical component. It provides shipping and storage, for e-commerce merchants. 

The company handles tasks like pickups, packaging, and shipping right from the warehouses. It also has linkages with popular e-commerce platforms like Woocommerce and Shopify.

Orbital Insight

Traceability is a critical component in supply chain management. Orbital Insight is a company that uses the latest technology for such purposes. Such include satellite, geofencing, and the use of data. Customers get an accurate picture of the processes.

It monitors from the very beginning to the end product. One of the biggest customers it has provided services to is Unilever. 

Palm oil is a major raw material for Unilever. But, there were stories about unethical practices around its procurement. Deforestation, for example, was a big concern. The company contracted orbital insights to investigate the claims.

Orbital insights have gone on to make significant inroads in its client portfolio. Such include corporations and government institutions. Customers are more demanding of sustainable practices requiring greater transparency in supply chains.

Upparel

Upparel changed its name from MANRAGS. What makes this Australian startup unique is the use of the recycled textile. The company places high emphasis on sustainable practices. 

They hope to make a difference in the world by using what others may consider useless textile. The results of the efforts have been quite significant if numbers are anything to go by. 

They managed to keep away 150,000 kilograms of textile from the landfills. The result is over 650,000 kg fewer greenhouse gases from the production processes. It has managed to achieve all this within nine months. 

Upparel bases all its operations in Melbourne. This is unique because most will send textile overseas for recycling. They have managed to get into a niche area that does not have too many competitors. 

The company’s CSR efforts are also noteworthy. They donate the bulk of their products to charities and other social enterprises.

Trackonomy

Trackonomy will be celebrating its fourth year in the market in 2021. The company provides end-to-end visibility from land, air, or sea for shipments. Customers get timely reports on any anomalies during the shipping. 

Such reports include anything that may interfere with the safe transportation of goods. It checks for tampering or attempts to open freight, facility, or trucks.

Trakonomy has its headquarters in Silicon Valley. It aims to provide cost-effective innovations. Their operations do not need workflow changes or any expensive infrastructure. 

All the processes are possible due to a fully-integrated platform. They use software, hardware, and data to drive operations.

Cobots Solutions

Think of a typical warehouse. There is constant movement and action. The workers are always transporting inventory from one place to another. It can be time-consuming and tedious.

Forward-thinking companies use technology to make such purchases simpler. These include the use of robots to reduce manual work. Cobots Solutions is a French company. Its area of focus is the development of collaborative robots.

One such product is their JAKA Zu series. The robot has unique features like remote programming and wireless connectivity. 

The robots can pick out 2D and 3D objects. They can also calculate distance, differentiate object colors, and pinpoint exact locations. 

Warehouses use robots for several applications. Such include packing, picking, placing, and palletizing. It will be interesting to see what more the company will do to make their robots smarter.

Navines

Every time you send a delivery to a customer, you say a silent prayer. You dread getting a call from the customer saying they did not receive the product. Missing or misplaced packages is a constant headache. 

It can have a considerable impact on the business and customer satisfaction. Tracking and tracing products from the warehouse to the final destination is critical.

Navines is a startup based in Israel. The company offers web-based solutions and carrier services for companies.

It uses a proprietary tool, the NAVINES Tracking engine for tracing and tracking. You will need the tracking number from your Transporter. Using the tool, you can get real-time updates on where the package is.

Final Thoughts

We have looked at the top six supply chain startups to watch out for in 2021. They bring innovation into the supply chain sector. Some companies use technology to provide solutions. 

The use of robots in warehouses, for example, cuts down on the time it would take to handle the different tasks. It brings in efficiency and cost-saving for the business owners. The ability to trace and track products ensures safe delivery. The result is happy, loyal customers. 

It will be interesting to see what these startups and many more have in store going forward.

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Archives, Global Logistics, Global Trade Daily

10 Inventory Must Do’s for Small-to-Medium-Sized Manufacturers 

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Cash is king for manufacturers – from the owner down to the machine operators.

If you visit any manufacturer, you will see most have a keen eye on how everything is being used. Machines are generally only running if they are making parts; employees are typically only working if orders are coming in, and scrap is examined carefully to determine “How did this happen? How can we prevent it from happening again? What else can we do with this?”

Even the Best Manufacturing Owners Make Mistakes.

But rarely, do they make the same mistake twice. If you ask them what some of their biggest mistakes have been, they are often tied to how their inventory was managed. Meaning, that was in the past and today they are doing something different.

What is different?

After speaking with many manufacturing owners and many subject matter experts, the “different” is their business is choosing to live and die by the following 10 inventory must-do’s with the help of ERP software.

1.  Clear Out The Inventory Garbage.

What does this mean? It means you must process your
inventory correctly and consistently with no exceptions.

Your inventory processes should be documented and employees trained, retrained, and trained some more; and you should have absolute consistency in your product lines, units of measure, etc. Documenting your process also means knowing explicitly who owns what including inventory master, inventory costing, and inventory quantity. Everyone should know what they are doing, when, why, and the consequences of it being done incorrectly.

And don’t let the fox guard the henhouse. The employee responsible for transaction processing cannot have access to inventory adjustments. A few hours spent training employees will save you money and heartache (and maybe even a lost customer) when you try to make a part with inventory you don’t have. Clear the garbage out of your inventory process, and you will be left with a much better result.

2. Regulate Your Inventory Counts.

Physical inventory or cycle counts should always be performed
on a regular basis and produce accurate numbers.

By implementing regular inventory counts, this allows you to consistently ensure inventory accuracy throughout the year. We’ve found that our customers complete this in one of two ways.

The first being they cycle count daily or weekly, which means they count arts based on usage or dollar amount to verify their inventory is correct. If their numbers are getting adjusted, that means their inventory is off, and they must figure out what inventory transactions are causing the issue.

The second way our customers regulate inventory is by doing physical inventory, which calls for shutting down the shop floor and counting the inventory one weekend a year, sometimes two. To learn more about this, download subject matter expert Brady Steven’s whitepaper titled “How to Achieve Perfect Physical Inventory in 10 Easy Steps.” It is a great, superfast read that is likely to save you thousands of dollars a year.

3. Evaluate Unused Inventory.

Just like clutter in your home, obsolete inventory or low turn
inventory should be evaluated on a regular basis, not just once
a year.

Inventory takes up space and space is money. If something is taking up space and not moving, that is taking away an opportunity for something that you could be selling and bringing in more revenue for your company.

4. Know Your Business’ Trends.

Keeping your inventory labeled is an important step in
controlling your inventory between physical inventories. Be “hip”
with your business.

Reorder, lead time, and order quantity should be reasonably accurate and should be evaluated on a regular basis (and again, this doesn’t mean once a year). You know your business better than anyone and knowing when spikes occur throughout the year allows you to better plan on seasonal changes in your inventory. If your business is seasonal, you may need to adjust your min/ max quantities throughout the year as well. A great way to evaluate this data is to be using Key Performance Indicators for your business.

5. Research Your Vendor’s Competition.

Your vendors win when you get lazy. So it’s okay to pick-up
those pesky sales calls every once in a while.

Listen to the vendor’s sales pitch and what they have to offer as far as pricing and quality rating. You may be surprised by what they have to offer. If you stick with the same vendor year after year, you may not receive the best bang for your buck. Prices slowly and steadily creep up, and your discounts suddenly vanish. Evaluate cost regularly and do not ignore savings on buying items in bulk when appropriate. This can be an opportunity for blanket orders to come into play with your vendors, and you will receive a discount by planning ahead. But remember, this requires you to know your business trends and when those seasonal spikes occur.

6. Automate As Much As Possible.

If job costing is a full-time job, then you probably have
inventory issues.

By automating with our Job Costing Accounting application, you can spend less time worrying about what your finished goods cost and more time on creating a quality product. Good job costing leads to accurate inventory cost and quantity, providing you with an opportunity to automate part or all of this process every year.

7. Record Your Inventory Flow.

You are what you eat.

As inventory is consumed or shipped, it needs to be recorded. Some of our customers manage this process with one person, a team of people, or they let their machinist move the parts. It’s entirely up to you, and you can decide who manages that process based on how skilled your employees are and the type of material.

THE INVENTORY FLOW PROCESS IS AS FOLLOWS:
1. Issue Material to Work Order
2. Bin-to-Bin Transfer
3. PO Receipts
4. WIP (Work in Progress) to Finished Goods
5. Location Transfers

You also have the option of backflushing and Auto WIP should you choose. If you make it to the last step and you have 10 good parts, then 10 parts are WIPed into inventory (finished goods). Spend a few minutes every time and record inventory flow immediately, and you’ll save yourself hours in the long run.

8. Listen To Your Business With ERP.

Hearing is the act of perceiving sound, but listening is something you choose to do. Move beyond “hearing” with your fully-
integrated ERP system with MRP functionality and “listen.”

Manufacturers that are using an ERP system correctly are faster,
smarter, and more profitable than those who don’t. It isn’t a
question; it is truth, and we have 150 case studies to prove it.

Listen to your business by viewing and analyzing the data your ERP system provides to see trends, view roadblocks, and make better business decisions. Utilizing your Business Intelligence application, KPI application, and Dashboards, you can see inventory detail in real-time and allow you to listen to your inventory.

9. Correct Employee Mistakes Immediately.

In manufacturing, loose lips don’t sink ships. They save them.
Employee attitude and participation is the icing on the cake,
and if an employee or machine isn’t doing something correctly,
don’t let the ship sink.

For example, if you see Jane Doe routinely recording inventory, but she always misses a few parts, your inventory counts will continuously be off and you will be spending more money purchasing inventory you don’t need. Speak to a manager or superior and let them know your concerns about the issues you’re witnessing. Speak up and refer to Must Do #1.

Honesty is the best policy when it comes to business, especially with money being involved. By addressing inventory mistakes early on, you reduce the risk of losing money, inventory and production time.

10. Always Ask Questions.

Don’t guess how to do it – ask someone. There are unlimited
resources available to you at Global Shop Solutions.

If you’re a customer connect with your Customer Success Manager, schedule a Virtual Training with a member of our Consulting department, or attend one of our 80+ training events a year. If you’re in the market for ERP software, see the software for yourself. We can connect you to some great customers if you have any questions. Don’t let the fear of asking a “dumb” question keep you from managing your inventory the correct way and making money for your business.

_______________________________________________________________

Adam Grabowski is the Director of Marketing at Global Shop Solutions. He is responsible for translating the company’s business objectives into successful brand, marketing, and communication strategies to drive awareness, revenue, and loyalty.

To learn more about the 10 inventory must do’s for small- to medium-sized manufacturers, call 1.800.364.5958 or visit www.globalshopsolutions.com.

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3pls, Archives, Global Logistics, Global Trade Daily

Why Paper is Limiting the Supply Chain Industry

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Through time, means of communication have evolved to meet the needs of those sending and receiving information. Hieroglyphics paved the way for the creation of the alphabet and pigeon carriers preceded the postal service. Paper has done the same for the current digital landscape, however, unlike the means before it, paper has a tendency to linger.

Although it has long been considered the tried and true form of communication, paper is now limiting the supply chain. Shippers, carriers, and retailers experience trials in the industry brought on by limited visibility, truck drivers face inefficiencies and health and safety concerns, and warehouse space is overcome by boxes of files, left to sit for years to come. As industries experience digital transformation, the supply chain must evolve too.

Visibility

The bill of lading originated during a time when the ability to track a mode of transportation was virtually non-existent. As crates were loaded onto ships and the back of horse-drawn buggies, suppliers simply relied on the ship’s ability to stay afloat and a coachman to stay on path. Today, however, advances in technology trump the need for reliance, as delivery services like Amazon Prime and GrubHub allow consumers to track their items, down to the very street their package or meal is at any given time.

The same should hold true for trucks carrying goods. Yet, the supply chain industry continues to rely on physical bills of lading to transmit important information, creating communication delays and preventing essential information from being shared among shippers, carriers and retailers. By ditching paper and implementing supply chain automation, the anticipation of expecting a load or receiving an approved bill of lading in return is alleviated, allowing shippers, carriers and retailers to utilize time often spent tracking down drivers to make real-time decisions based on evolving developments in the field, including necessary changes to routes, timely responses to customer complaints and detailed planning based on data that paper simply doesn’t provide.

Subsequently, the industry’s reliance on paper costs companies upwards of $3 billion per year in detention fees. Shippers, carriers and retailers rely on drivers to report time spent in detention, oftentimes resulting in best guesses and inaccurate accounts. While companies and drivers don’t conspire to commit detention fraud, inaccurate detention timing is inevitable. Through a more digitized, advanced supply chain automation system, mistakes can and should be removed from the process, allowing companies to reallocate budgets and save billions of dollars every year.

Efficiency

In the same notion, if time is truly money, there is no better instance of shippers, carriers and retailers losing money than through the unnecessary time drivers spend getting in and out of their cabs to deliver physical BOLs. An industry-wide implementation of a supply chain automation platform would allow drivers to remain in their cabs, all while delivering and receiving important information. By providing digital capabilities in sharing this information, drivers can be more efficient in finalizing deliveries, putting them back on the open road sooner and making more money for themselves and the trucking companies.

Health & Safety

Now, more than ever, the ability to remain in-cab while continuing to transmit information during a pick-up or delivery is important, as drivers come face-to-face with multiple people per stop. Not only is the safety of the driver a priority, not having enough staff to man the guard shack, run administrative tasks or load and unload delays deliveries and prevents shippers, carriers and retailers from delivering, carrying and receiving products in a timely manner is a priority as well. While attributed to the manner in which the supply chain has always operated, paper now adds an extra layer of risk to the industry. Enforcing supply chain automation platforms throughout and implementing the use of electronic BOLs eliminates the need for direct contact, protecting and providing reassurance to all parties involved, while ensuring deliveries are executed safely and the health of employees is of the utmost importance.

Sustainability

An issue not specific to the supply chain industry, but certainly one to identify, is the dilemma of what to do with all of the physical bills of lading once copies are delivered and processing is complete. With thousands of deliveries occurring each and every day, the paper has to go somewhere, often resulting in a warehouse full of stacked boxes. Not only does this create clutter and take up unnecessary space, but it also leaves supply chains scrambling to find information when they need it most. The power of supply chain automation allows companies to store paperwork, including BOLs, digitally, saving space and positively impacting the environment.

Although the supply chain struggles to adopt an industry-wide supply chain automation platform, steps can be taken by individual companies to ease the current outdated process shippers, carriers and retailers face. Implementing electronic BOLs, driver workflow and mobile capture can relieve stress on companies and demonstrate the need for an industry-wide standardization to others in the supply chain.

___________________________________________________________________

Darren Chan is a co-founder of Vector, a contactless pickup and delivery platform that ensures supply chain partners get the right load to the right place at the right time. Darren grew up witnessing the collaboration difficulties firsthand in his family’s foodservice distribution business and is excited to help build and deliver modern, user-friendly solutions to the industry. Prior to Vector, Darren was the Director of Design at Addepar, a wealth management platform, which manages more than $2 trillion in client assets.

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Archives, Global Logistics, Global Trade Daily, Warehousing

20 COMMUNITIES THAT ARE IDEAL FOR WAREHOUSING AND DISTRIBUTION CENTERS

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Shortly before the COVID-19 pandemic forced the nation into a series of lockdowns, warehouses large and small were sprouting all over the U.S. Once the pandemic hit, and lockdowns forced much of the nation to remain at home, e-commerce spiked like never before, and that’s been driving up the demand for even more distribution facilities.

Since the lockdowns began, Amazon has hired 175,000 new employees and beefed up its distribution network across the country, according to the Houston Business Journal. In April 2020, the Dallas Morning News reported that the distribution sector was seeing record business because of the pandemic.

“We have already seen that warehouse operations are proving to be more essential than ever,” Michael Caffey, president of the analyst firm CBRE’s South-Central Division and Latin America, told the paper. “The long-term effects of COVID-19 may boost industrial demand as retailers work to ensure they have adequate inventory levels to meet consumer demand. … In addition, COVID-19 and its associated quarantines are creating new online consumers, which will further increase e-commerce’s share of total retail sales.”

While new and larger warehouses are going up all over the U.S., here are 20 communities where demand seems especially high.

Chicago, Illinois

The market for warehouses and distribution in Chicago has been massive for years—fed by e-commerce and cold-storage, according to a 2019 post on the Chicago real estate news website The Real Deal. Even legalized recreational marijuana is expected to help fuel the warehouse expansion. And it was recently ranked very high in a 2018 CBRE analysis of future warehouse development. “In the smaller cities you see more fluctuations, but Chicago is one of the largest markets in the country and is just really sustainable,” CBRE Senior Vice President Whit Heitman told the Chicago Business Journal at the time.

Riverside, California

The growth of e-commerce has been driving warehouse construction in California’s Inland Empire for at least the past five years, and there’s no end in sight, according to a January 2020 article in the Riverside Press Enterprise. In fact, the region accounted for 21 of the largest lease deals in the nation in 2019—17.5 million square feet of warehouses and distribution centers. Of particular note was that a full million of that square footage belonged to Nordstrom’s new Riverside warehouse. The reasons for the high demand include proximity to the ports of Los Angeles and Long Beach and a huge workforce that includes 141,000 logistics-related workers in Riverside and nearby San Bernardino Counties.

Houston, Texas

A steadily increasing population has led the Greater Houston Partnership to call that city and its surrounding metropolitan area a “global logistics and distribution hub,” according to a June 2020 Houston Business Journal story, and it’s easy to see why. The retail giant Amazon already operates a 1-million-square foot fulfillment center there, another 855,000-square-foot center, a few smaller facilities, and in June committed to building another fulfillment center that will encompass nearly a million square feet. In 2017, the Houston Chronicle reported that there was more than 6 million square feet in the city dedicated to warehousing and distribution—a 60 percent increase over the previous two years.

Detroit, Michigan

Even in the midst of a pandemic, people need to eat, which is why Lineage Logistics’ cold storage warehouse in Novi, just outside Detroit, announced that it was hiring 2,000 workers in March, as practically everyone else went into lockdown. According to a March 16 post on Crain’s Detroit Business news site, the labor increase is due to Lineage’s retail customers seeing a “20 percent to 50 percent increase” in sales as restaurants closed and grocery stores hurried to pick up the massive new demand. Growth in warehouse and distribution in Detroit has been steadily rising for the past five years, with Amazon opening a massive new fulfillment center in nearby Romulus in 2018.

Richmond, Virginia

In 2018, the firm CBRE declared that Richmond’s industrial warehouse market was in the midst of a “golden age,” according to an article that year in Virginia Business. Proximity to the Port of Richmond, a large population and growth in the e-commerce sector have led to growth that really began back in 2012, when Amazon opened a large distribution facility in the city. Since then, the size of the new warehouses began increasing along with their quantity—these days, the demand is for warehouses from 200,000- to 1 million square feet, according to Virginia Business.

Middlesex County, New Jersey

While the entire state of New Jersey has experienced considerable warehouse development (its location between Boston, New York, Philadelphia and Washington, D.C., makes it an ideal distribution hub), Middlesex County is a powerhouse on its own. In fact, in 2017 WHYY reported that the area—which is just off the Jersey Turnpike—is “internationally known as a prime location for warehouses.” In 2019 alone, Wayfair executed a 950,000-square-foot lease there, while Crate & Barrel opted for an 870,000-square-foot operation, according to an October 2019 post on ReBusiness Online. In early 2020, MyCentralJersey reported that the Rockefeller Group proposed redeveloping an old Union Carbide factory in the county into a 420,000-square-foot warehouse.

Atlanta, Georgia

Considering that Hartsfield-Jackson Atlanta International Airport is the busiest airport in the world, and the city has been a logistical hub since before the Civil War, it’s no wonder that Atlanta holds so many warehouses. In fact, the city caters to a variety of business, education and government distribution networks and facilities, according to the Atlanta Chamber of Commerce. And many of the facilities already built and under construction in Atlanta are both large and high-tech—able to accommodate both large fleets of vehicles as well as robots and drones. In just one quarter of 2018, more than 16 million square feet of warehouse space was under construction, according to an Atlanta Business Chronicle story that year.

Dallas/Fort Worth, Texas

Even with the COVID-19 pandemic, warehouse operations are expanding in North Texas. In mid-April 2020, the Dallas Morning News reported that nearly 24 million square feet of warehouse space was under construction in the region. What’s more, the newspaper reported that warehouse demand there has run in the 20 million square feet range for the past four years. And with e-commerce making huge gains during the pandemic, industry analysts are predicting the demand won’t lessen anytime soon. “Increasing demand for goods bought online, especially food, will fuel the need for distribution facilities at a pace much higher than in the current cycle,” Michael Caffey, president of CBRE’s South-Central division and Latin America, said in the Morning News article.

Columbia, South Carolina

The Midlands region of South Carolina has long been home to giant distribution centers belonging to a range of companies, including Target, Home Depot and Amazon, the growth of which is closely linked to the rise of e-commerce. In fact, warehouse facilities make up the largest portion of the Midlands industrial real estate market (more than 44 million square feet), according to a July 2019 article in Columbia Regional Business Report. A late 2019 report from Colliers International found that the region would continue to grow due to “convenient logistic systems, a vibrant business climate, positive capital investment and low unemployment rates.”

Fernley, Nevada

For the past few years, Fernley has developed itself as Northern Nevada’s logistics hub. “It is particularly well-situated for linkages between rail, trucking and warehousing operations,” Robert Hooper, Northern Nevada Development Authority president and CEO, told KTVN News in June 2018. As Hooper said that, the powersports company Polaris was starting construction on a 475,000-square-foot distribution center in the town of about 21,000 people that’s about a half hour east of Reno. Since then, even larger facilities have been envisioned for Fernley, including an 815,000-square-foot warehouse that will be part of the new—and sprawling—Victory Logistics District, according to an April 2020 report in The Nevada Appeal. The new facilities, developers say, will include 40-foot clear heights, which will allow tenants to store more palletized products.

Portland, Oregon

While the growth in e-commerce has been responsible for massive new warehouses throughout the country, in Portland online retail is spurring growth in small warehouse construction. According to a March 2019 Oregon Business article, many smaller retailers who sell their products online are needing warehouse space to avoid the storage fees companies such as Amazon charge. In fact, many of these smaller retailers are looking to self-storage facilities for their needs, Oregon Business reports. In 2018, the real estate market analysis firm Yardi Matrix reported that Portland had one of the highest rates of self-storage facility development in America.

Phoenix, Arizona

Few cities in the U.S. are better equipped for warehouses and distribution than Phoenix. The biggest reason is undoubtedly the geography—Phoenix is relatively close to a variety of major cities throughout the Southwest, connected by a variety of major freeways. The hot and dry climate is also a contributing factor. According to a 2018 Colliers International Industrial Market Report, 7 million of the 7.8 million square feet of new industrial space in Phoenix that year was dedicated to warehousing and distribution. There are currently half a dozen major warehouses and distribution facilities planned for Phoenix and the surrounding area, according to an October 2019 report by the AZ Big Media publishing company.

York County, Pennsylvania

Central Pennsylvania is critical for warehouses and distributors, and York County is right in the thick of it. There are dozens of centers located there, mostly along the I-83 corridor between Harrisburg and Baltimore, and they are key to distribution for many East Coast cities, according to a March 2020 York Dispatch story. And the growth is continuing: Kinsley Properties—which already owns several warehouses in the county—has plans to build a new 175,000-square-foot warehouse along the corridor this year.

Birmingham, Alabama

Because the city sits at the juncture of four major interstates and is served by six rail lines, Birmingham is a natural distribution point. In October 2019, the Birmingham Business Journal reported that Amazon was preparing to build a nearly 100,000-square-foot warehouse in that city, which industry analysts said would help the e-commerce giant more toward same-day delivery. The Business Journal revealed that the warehouse would be up and running by the end of 2020. This facility followed an even larger one—an 825,000 square footer—that the company built in 2018 in Bessemer, which is just minutes away from Birmingham.

Miami, Florida

Warehouse demand—fueled largely by e-commerce—has been steadily rising in South Florida for the past few years. This isn’t surprising given the area’s close proximity to Central and South America and the Caribbean. And development is continuing into 2020. In fact, more than 3 million square feet of spec warehouse space is expected to come online this year, the Miami Herald reported in January. Four months later, The Real Deal South Florida Real Estate News reported that leases around Miami Airport were increasing in the logistics and transportation sectors—specifically in the 10,000-square-foot to 150,000-square-foot range.

Baltimore, Maryland

E-commerce has been expanding warehousing and distribution in Baltimore for the better part of a decade. In 2014, Amazon opened a massive 1-million-square-foot warehouse at an old General Motors plant in the city. A spokesperson for the online retailing giant told the Baltimore Sun at the time that the company chose the city because it put them closer to their customer base. (As the paper reported, the closest Amazon warehouse to Baltimore was 70 miles away at the time.) Since then, demand has only gone up; in fact, this past April, Amazon announced they would develop another 1-million-square-foot warehouse in Baltimore.

Nashville, Tennessee

Nashville’s strategic location for shippers is unparalleled—Music City USA is served by three interstates, a navigable river and multiple rail lines. Since 2012, 3 million square feet of warehouse space has gone up in Nashville, according to a January 2020 article in The Tennessean. In late June 2020, Amazon—which is already building a massive office complex in Nashville—announced that it would also construct a 200,000-square-foot warehouse there, too. Like Portland, Oregon, Nashville is also seeing tremendous growth in the self-storage sector.

Cleveland, Ohio

Even before the COVID-19 pandemic lockdowns, growth in demand generated by e-commerce was far outstripping the supply of warehouses in Cleveland. And it’s not just Amazon, either: “A lot of companies are growing their delivery business, expanding their need for warehouse space,” News 5 in Cleveland reported in late February. Of course, Amazon is there, too, and the company announced in early July that it had leased a 434,000-square-foot warehouse in Cleveland to use as a new distribution facility, Cleveland.com reported. Around the same time, Amazon also announced plans to start using two other smaller warehouses in the Cleveland area.

Denver, Colorado

Warehouse and distribution have been growing in the greater Denver area for nearly 20 years, the Denver Post reported in February. And while Amazon already operates four large centers there, growth is also coming from FedEx, Walmart, Tempur-Pedic and even industrial hemp, the Post noted. In early 2019, GE Appliances cited Denver’s rapidly rising population growth as reason for it to open a new high-tech Denver Area Distribution Center, complete with RFID-tracking and parking for 100 trailers. The new facility would allow the company “to deliver products in three days or fewer to 90 percent of U.S. homes,” Mark Shirkness, vice president of Distribution for GE Appliances, said at the time.

Louisville, Kentucky

Louisville Muhammad Ali International Airport, the UPS Worldport hub just south of the airport and the city’s general centralized location are big reasons why warehouse development has been growing in Louisville for the past few years. This has all contributed to a “red hot” industrial market there, the Louisville Future email newsletter reported in 2018. “The strength of the Louisville industrial market has been going on for several years, as its position as a central transportation hub, especially including UPS Worldport, and development of large industrial parks have invited large warehousing facilities—and, especially, e-commerce fulfillment,” Louisville Future stated. That there was 3.5 million square feet of new industrial market construction in Louisville in just the first six months of 2018 would seem to say “red hot” is an understatement.