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8 Effective Strategies for Increasing Engagement Among Supply Chain Employees

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8 Effective Strategies for Increasing Engagement Among Supply Chain Employees

Even in heavily automated fields, employees are the lifeblood of any company. Many supply chain optimization strategies focus on new technologies and workflows, but any effective measure must also consider the workforce.

One of the most important factors to address is employee engagement. Without an engaged workforce, no supply chain will operate at its full potential.

Why Is Engagement Important?

Engagement, the degree to which employees feel motivated, interested and passionate, is hard to quantify but essential to success. Studies show that highly engaged teams are 21% more profitable, exhibit 59% less turnover and 41% less absence.

Despite those benefits, many companies fail to engage their employees. As of January 2021, just 39% of U.S. workers reported being engaged at work. While that figure has risen over time, it still indicates that most employees don’t feel motivated in their workplaces.

In a field like supply chain operations, where efficiency is crucial, businesses can’t afford to overlook this data. Employers must keep supply chain workers engaged, and here are eight strategies to do so.

1. Invest in Employees’ Careers

One of the most important steps to take is to emphasize career development. Surveys show that 94% of employees will stay at their company longer if their employer invested in their career. By contrast, if workers feel like they have no opportunities for advancement in their workplace, they’ll become dissatisfied, eventually leaving.

One solution is to provide opportunities for upward mobility within the company, promoting from within. Another is to offer career development classes or training, equipping workers with new skills. Whatever path a company takes, it should emphasize and promote these opportunities.

2. Listen to Employee Feedback

Another effective strategy for increasing engagement is to listen to what employees have to say. Workers will quickly become disinterested and disillusioned if they feel that management doesn’t care about their opinions. Asking for feedback can help assuage those feelings, but it’s important to go a step further, too.

Businesses must respond to employee feedback, not just request it. If common threads emerge between workers’ suggestions or complaints, there’s likely an underlying issue that needs addressing. Management should take all feedback seriously, thanking employees for it first, then investigating it further. If meaningful change comes from this feedback, companies should highlight it.

3. Create Volunteer Opportunities

Engagement often stems from workers’ respect for the company or a feeling like they’re making a difference in their role. One way to lean into that is to coordinate volunteer opportunities for employees to give back to their communities. In a 2017 survey, 74% of employees and workers said that volunteerism improves their sense of purpose.

Management should look for opportunities to partner with local charities or organize volunteer initiatives. It’s also important to encourage participation, partly to involve more workers and partly to show enthusiasm for the project. Hosting projects like this at least once a year can help employees feel they’re part of something bigger, improving morale.

4. Host Social Events

Volunteer opportunities aren’t the only events outside of work that can boost employee engagement. Social events like parties, potlucks and trips can give workers a chance to grow closer to one another and their leaders. As employees build closer, healthier social relationships within the workplace, work will begin to feel more cooperative and engaging.

Listen to employees to gauge what types of outings and events would interest them the most. Hosting various social events throughout the year can help appeal to different workers, ensuring no one feels left out. In nearly all settings, providing food can be effective, so find people-pleasing recipes to bring.

5. Recognize Commendable Performance

One of the primary goals of boosting engagement is to get employees to perform to their full potential. If companies don’t recognize and reward exceptional performance, they can’t expect workers to strive for these goals. Conversely, if management shows their appreciation for commendable work, more workers will feel motivated to perform better.

In some circumstances, simply highlighting a job well done to other employees is enough to motivate workers. Offering tangible rewards for meeting certain performance goals may be even more effective, as it gives something concrete for employees to work toward. These rewards could be cash bonuses, extra paid time off, gift cards or anything else that workers would want.

6. Pay Attention to Worker Health

Another effective employee engagement strategy is to emphasize worker health. Employees will have an easier time engaging with their work if they feel their company cares about their wellbeing. In supply chain operations, this should include measures to prevent injury, but sponsored workout classes or fitness goals are also good ideas.

Considering one in five American adults experience a mental health issue each year, this strategy should include mental health. Businesses should emphasize the importance of looking after emotional wellness and offer related solutions. Counseling services, support groups and other measures can help assure workers their company cares about them.

7. Remove Inefficiencies and Complexity

Some factors affecting employee engagement aren’t as immediately apparent. One impactful yet relatively easy-to-fix obstacle is inefficient or overly complicated workflows. If employees have a hard time understanding what they’re supposed to do or face multiple obstacles doing it, it will be hard to remain engaged.

The solution to this issue involves two main areas of focus: training and workflow adjustments. More comprehensive, involved training can help workers understand their tasks better, removing mental roadblocks to engagement. Removing unnecessary complexity or inefficiencies in a workflow will then help employees focus on value-adding work, maintaining engagement.

8. Lead by Example

Finally, it’s important for supply chain management to embody the company spirit in their own work. Workers won’t likely exhibit much engagement if the leaders they see don’t appear motivated or passionate about their work either. By the same token, if company leaders are enthusiastic, positive and driven, it will inspire others to be the same.

Studies show that 50% of all workers have left a job at some point because of a bad manager. What constitutes a “bad” leader may vary between people, but leaders saying one thing and doing another certainly won’t help. Anyone in a leadership position in supply chains must lead by example.

Engaged Employees Are Productive Employees

Supply chains become far more efficient with engaged employees. If logistics companies can follow one or more of these eight strategies, they can engage their workforce on a deeper level. They can then maximize their human potential, mitigating workforce issues that plague the industry.

GPS tracking

Leveraging GPS Tracking for Automated Fleet Maintenance

Maintenance is one of the most important parts of fleet management. A good maintenance strategy can help a business cut repair costs, improve fuel efficiency, and eliminate vehicle downtime.

Scheduling vehicle maintenance can be difficult, however, especially for businesses that don’t know exactly where their fleet vehicles are.

GPS tracking technology is one of the best tools that fleet managers can use to streamline maintenance — or even completely automate it.

Why Businesses Use GPS Tracking for Fleet Management

GPS tracking is a fleet tracking strategy that uses networked GPS systems to provide managers with the real-time location of each vehicle in the fleet. Location data is often used to streamline scheduling and routing, allowing administrators to make more informed decisions when they need to dispatch a vehicle or schedule a new job.

GPS data may also enable a system to track driver behavior, including unnecessary idling, speeding, and harsh braking events. This information can be provided to fleet managers and dispatchers, as well as passed on directly to drivers.

Fleet managers and dispatchers can use the information to improve their decision-making while drivers can learn more about their own habits and practices — allowing them to identify potential areas of improvement.

These tools are popular among businesses in parts of the country where idling laws may mean hefty fines for businesses that allow drivers to leave vehicles idling. They are also frequently used by businesses that want to track and reduce dangerous driving habits that can harm vehicle health, reduce fuel economy, and make drivers less safe.

The benefits of a GPS tracking system can vary from business to business, but most will see noticeable improvements to vehicle fuel efficiency, overall driving hours, driver behavior, compliance, and safety.

Many GPS tracking systems are also part of a larger telematics system that can provide managers with even more fleet data. These systems may also include dashboards and data visualization tools that help fleet managers better understand the data they’ve collected.

With the right solution, it can be much easier to predict fleet expenses and implement new business policies that help improve fleet performance.

Automating Maintenance With GPS Tracking

The most effective maintenance strategies are preventive. Long before small problems with a vehicle become serious issues, the business takes action to keep the vehicle in the best operating condition possible.

For example, a business may hire a mechanic to regularly inspect brakes, check oil levels, change filters, or check tire tread. These simple checks allow businesses to prevent most common vehicle issues, like brake failure, frequently seen in vehicles like semi-trucks or tractor-trailers when they’re not properly maintained.

The simplest maintenance tasks aren’t usually expensive or time-consuming, and they can help keep vehicles on the road while providing other benefits — like better fuel economy and a lower risk of breaking down.

Preventive maintenance can be hard to implement, however — especially for businesses that have relied on a reactive maintenance strategy in the past.

The time and money needed for preventive maintenance are usually repaid over time, as maintenance reduces the need for repairs or the frequency of breakdowns. Typically, preventive maintenance only becomes challenging when a business doesn’t have enough information on its vehicles, drivers, or maintenance providers.

This information could be a shipping estimate on essential replacement parts, a mechanic’s availability, or the current status of fleet vehicles.

Without the right information, fleet managers can struggle to coordinate the different parts of a preventive maintenance strategy — like the business’s mechanics, tools, replacement components, or the vehicles themselves.

How GPS Tracking Makes Maintenance Automation Possible

GPS tracking provides a valuable source of information on fleet vehicles’ location and driving conditions. The system is continuously updating managers on the position of each vehicle and how drivers are operating those vehicles.

With a GPS tracking solution, it’s typically possible to create automatic maintenance alerts that instantly notify managers when maintenance is needed.

These maintenance alerts are customizable, meaning managers can configure them to appear after a certain number of hours have passed, or when a vehicle passes a number of miles driven.

Many of these solutions also track how employees are driving their vehicles, allowing managers to draw connections between driver behaviors, maintenance costs, and specific repairs.

This data can help managers identify behaviors that harm vehicle health the most, allowing them to track driver behavior and maximize vehicle lifespan while minimizing maintenance costs.

A more advanced system could also provide additional benefits — for example, by automatically scheduling maintenance when it’s needed. Using information from the GPS trackers, the system could automatically schedule maintenance and generate a route to the maintenance garage based on the vehicle’s current location, the driver’s job status, and the distance to nearby maintenance locations.

Over time, information from GPS tracking systems can also help managers understand their fleet’s schedule. With this data, managers can know exactly when business tends to be slow or when specific vehicles are available, allowing them to schedule maintenance in a way that won’t disrupt work.

They may also be able to provide better availability estimates to customers and help their team dispatch vehicles more effectively.

For businesses that have struggled with creating driver schedules or meeting client needs, these tools could help them create better schedules for their team, making it easier to dispatch drivers and complete jobs.

Integrating GPS With Other Maintenance Automation Tools

Fleet managers that benefit from using GPS to automate fleet maintenance will probably also benefit from many of the other fleet maintenance automation tools available.

Many of these tools are built with technology like GPS tracking in mind, meaning they may integrate easily with existing GPS tracking solutions or be able to utilize the real-time data these solutions provide.

For example, a comprehensive telematics and maintenance automation system may be able to provide managers with automatic alerts based on both miles driven and data collected by vehicle components — like tire pressure sensors, brake system sensors, and the engine control unit.

Using GPS to Improve and Automate Fleet Maintenance

An automated preventive maintenance strategy can help any business keep its fleet on the road. Implementing preventive maintenance without the right information may be difficult, however.

GPS tracking systems provide real-time updates on fleet vehicle locations that managers can use to make preventive maintenance much more practical. These tools can also help managers identify reckless driving or bad habits, like idling.

Combined with other maintenance and telematics solutions, GPS tracking can also help make automating maintenance much easier. The right solution can provide automatic notices when a vehicle hits a major milestone or number of hours driven.

supply chain

Supply Chain Predictions 2022: Growing Investment in Delivery Technology

The world’s supply chain issues will be alleviated by rapid, wider adoption of logistics solutions and technological advancements in 2022. Though the supply chain crisis will continue to challenge the shipping and delivery industry in the coming year, companies must look past short-term mitigation strategies and invest in long-term solutions with greater potential to materially impact key crisis drivers.

I predict these technologies, paired with companies’ willingness to adapt their operations, will help global economies rebound from the pandemic, navigate bottlenecks and meet relentless consumer demand. 

Mounting Challenges Require Flexible Solutions

In 2022, supply chains need to remain flexible, agile and adaptable in order to overcome the industry’s substantial challenges:

Consumer Demand: Consumers’ demand for fast, free, flexible shipping will grow in 2022 as online penetration increases in retail markets. Shippers and carriers that can best address these demands will maintain a competitive advantage over those who cannot. Retail giants like Amazon, Walmart and Target set the shipping and delivery standards that competitors must also provide in order to retain customers. 

Supply Chain Bottlenecks: Supply chain bottlenecks, like those widely publicized throughout 2021, are expected to continue through the first half of 2022. The pricing of container rates, especially those servicing transpacific routes, will continue to rise.   

Driver Shortages: The American Trucking Association estimates the U.S. shipping and delivery industry is short approximately 80,000 drivers. This limited capacity deeply impacts companies’ abilities to meet increased delivery demands.   

Technological Advancements, and Investments, Will Alleviate Crises

Key players in shipping and delivery should consider investing in technology enabling them to adapt quickly. Many businesses have already adopted new software to help them overcome supply chain challenges, and even more are expected to take the leap in 2022. Billions in funding have poured into logistics technology startups as investors capitalize on the opportunity to improve supply chains. 

The following technological advancements will spur progress in the shipping and delivery space in the coming year:

Logistics Solutions Offering Visibility and Orchestration: Logistics software and technology will grow in popularity and integration, with a particular interest in platforms offering Real-Time Transportation Visibility (RTTV) and delivery orchestration solutions as shippers and carriers seek to optimize their supply chains. RTTV also allows companies to provide customers with tracking updates that enhance their experience and strengthen their brand relationships.

Artificial Intelligence (AI) and Machine Learning (ML): Platforms utilizing ML and AI will be a major focus for companies investing in technology, as they allow shippers and carriers to quickly spot problems (like goods shortages or port congestion) and take action earlier when they arise. This enables companies to maintain an exceptional customer experience. In addition, leveraging AI to identify opportunities creates more efficient delivery routes, which saves time and money, and empowers companies to make more deliveries with a finite labor pool.

Predictive Intelligence: Predictive Intelligence will become more popular and more important in 2022. Leveraging historical route and shipping data, machine learning technologies can generate more accurate ETAs and trigger alerts to delivery stakeholders if there is a significant, unexpected delay. ML and predictive intelligence can optimize supply chain operations, discover opportunities for efficiencies and support rapid scaling.

Autonomous Deliveries: In 2022, we will see increased adoption of autonomous technologies such as drones and autonomous delivery trucks. These reduce costs and delivery times while alleviating labor shortage pressures. 

Non-Traditional Fulfillment Will Be Key

Of all elements within the shipping and delivery industry, fulfillment is the area likely to experience the most change in 2022. I expect to see large advancements in omnichannel fulfillment. Many more businesses will embrace non-traditional fulfillment options such as curbside pickup, parcel lockers, dropshipping (D2C shipping), pop-up distribution centers and dark stores. These give shippers and carriers more flexibility, allowing them to adapt to demand surge and capacity shortage. 

Increased Focus on Sustainability

Rising consumer demand means rising carbon emissions as companies race to deliver goods. The supply chain’s impact on the environment is of growing concern, and more companies have committed to investing in sustainable solutions. In 2021, logistics and delivery management platforms enhanced their sustainability functions, adding features that measure carbon emissions and optimize operations to support sustainability efforts. In 2022, this will accelerate as businesses will take more significant steps toward reducing their carbon footprint, including prioritizing more efficient routing and using electric vehicles.

The year ahead is filled with challenges and opportunities for shipping and delivery businesses worldwide. Their success relies on their adaptability and investment in the right tools to get the job done.

truckload truck

A HOT 2021 FOR TRUCKING BRINGS A BLAZING 2022 FOR TRUCKING ALLIANCES AND ACQUISITIONS

Record earnings and cash flow in 2021 allowed carriers to add drivers, new and improved trucks and other equipment to keep up with an ever-demanding supply chain. But many trucking industry players did not stop there, forming alliances and purchasing competitors to position themselves for even greater rewards in 2022 and beyond.

On Jan. 5 of this year, GEODIS, a global transport and logistics giant, and Nashville, Tennessee-based CoreTrust, a leading commercial group purchasing organization and division of HealthTrust, announced a strategic alliance that will expand CoreTrust Logistics’ truckload freight offering to include a comprehensive full truckload (FTL) managed transportation solution. By tapping into the GEODIS network of more than 1,000 asset-based carriers, as well as its world-class managed transportation capabilities, CoreTrust members can enjoy better rates and end-to-end FTL shipment management, the companies contend.

Well known supply chain challenges—like finding a place to store goods, let alone drive them—have inflated prices for shippers, something that will be eased by the alliance, swears CoreTrust Assistant VP David Pollard. “Truckload rates have increased 25 to 30 percent, yet our members are confirming cost avoidance and significant savings with this comprehensive solution,” he said. “Even in this inflationary market, this alliance is driving achievable and quantifiable value across full truckload transportation for CoreTrust members.”        

Which explains why other concerns are hooking up with one another. Phoenix, Arizona-based Knight-Swift Transportation, which is one of North America’s largest and most diversified freight movers, made big moves in the less-than-truckload (LTL) space by buying AAA Transportation for a reported $1.35 billion in July and RAC MME Holdings for another $150 million in December. 

Knight-Swift’s goal of establishing a nationwide LTL network is helped greatly by acquiring AAA Transportation, whose roots date back to 1951 when an Alabama log hauler purchased a struggling truck line. AAA went on to blanket the Southeast, Southwest and Midwest, while Chicago-based RAC MME—the parent company of Midwest Motor Express and Midnite Express—has the upper Midwest and Northwest covered.  

RAC stands for Red Arts Capital, which partnered with Prudential Capital Partners, Brightwood Capital Advisors and several family offices in 2019 to acquire MME from the Roswick and Greenstein families, who founded the company in North Dakota in 1918. “With MME, we found the ideal opportunity to invest in an excellent business with an extensive network, including most metropolitan areas across its network geographic footprint,” explained Nicholas Antoine, co-founder and a managing partner at Red Arts Capital. “We are proud of our contributions to the company’s over 100 years of growth and service to the region, and believe that Knight-Swift provides MME the ideal home for its next phase of growth.”

In September, ArcBest acquired Chicago-based truckload broker MoLo Solutions for $235 million plus the potential for future earnout payments. Getting four-year-old MoLo, which expected 2021 revenue of around $600 million, propelled Fort Smith, Arkansas-based ArcBest to a Top 15 U.S. truckload broker with access to more than 70,000 carriers.

“ArcBest’s timely investment further accelerates growth by increasing the scale of our asset-light business, and MoLo’s proven ability to cultivate significant shipment growth with large shippers will be highly complementary and synergistic,” said Judy R. McReynolds, ArcBest chairman, president and CEO. “This acquisition capitalizes on our terrific business momentum and positions us to enhance value for all of our stakeholders, including our customers, employees, communities and ArcBest shareholders.” 

MoLo CEO Andrew Silver, who landed at ArcBest as part of the deal, said the partnership also “further advances the opportunity we have to achieve our vision. MoLo has been able to reach $600 million in annual revenues with only 500 shippers; in doing this deal, we can now tap into ArcBest’s 30,000 existing shippers and offer them the same level of service we’ve been providing our existing customers. In addition to that, we can now offer our customers a breadth of services we couldn’t before, including owned assets, increased drop trailer capabilities, LTL, expedited, outsourced transportation management, and more.”

Summertime deals were in the offing for 65-year-old Werner Enterprises, which acquired an 80% stake in Pennsylvania-based TL carrier ECM Transport Group for $142 million and final-mile carrier Nehds Logistics of Monroe, Connecticut, for $64 million.

“The addition of ECM’s skilled drivers, nondriver associates and terminal network strengthens our portfolio by adding short-haul expertise in a segment in which consumer demand and supply chain needs are growing,” said Derek Leathers, Omaha, Nebraska-based Werner’s chairman, president and CEO. He was similar in his praise of Nehds: “The addition of the Nehds operations, management team, talented staff and strong customer relationships to the Werner family represents a significant step forward in our Final Mile delivery program.” 

RLS Logistics is a leading cold chain 3PL, but it also offers managed transportation services and an LTL brokerage unit. With locations in Utah, Tennessee, Pennsylvania and its home state New Jersey, RLS spent 2021 adding partners in California, Massachusetts, Texas and another in the Keystone State.

However, you had to hop the northern border for the biggest deal of the year by LTL network size: Canadian trucking and logistics provider TFI International acquiring UPS Freight for $800 million in January 2021. Heading to the negotiating table with 38 terminals, the Montreal-based company walked away with 197 more facilities across North America—as well as about $3 billion in revenue.

Once the deal officially closed, TFI CEO Alain Bédard told analysts that 75% of his operations would be in the U.S., plans were afoot to aggressively bring down costs—and that the acquisition was unlikely to be the only collaboration with Atlanta-based UPS. More to come in 2022?

productivity supply chain 4.0 goods

Here’s How Supply Chain 4.0 Makes Your Organization More Efficient

There’s a growing interest in Supply Chain 4.0 technology, especially as logistics professionals cope with stock shortages, port delays, and other challenges. Advanced tech can boost productivity in warehouses and all other points of a product’s journey to its destination. Here’s a closer look at what supply chain management can do for those who invest in it.

Facilitating Productivity and Reducing Worker Strain

Hard physical labor is a regular occurrence for people who have many supply chain jobs. Getting relevant training about how to bend, lift, and avoid strain from repetitive tasks can pay off in helping them stay injury-free and able to give maximum output. However, some companies are also investing in robots to help even more.

In one case, a distributor of adult incontinence products pursued robotic palletizing to streamline its receiving process. An associate begins by scanning a label on a carton to tell the robot a product is on the way that must be unloaded soon. The robot then refers to 20 patterns stored in its memory to decide how to build a pallet based on the incoming items. Once the robot creates the pallet, the goods go to a picking location or storage area.

There are many other opportunities to incorporate robots into Supply Chain 4.0, too. Some autonomous mobile robots bring goods to warehouse workers so those employees don’t have to leave their workstations and take the extra time and energy to replenish what they need.

Other robots work beside supply chain employees, saving them from some of the more laborious or error-prone tasks. Robotic machines excel at duties that require them to do the same movements for hours on end. They don’t get tired and, as a result, can prevent fatigue in humans.

Minimizing Packaging Waste

Supply chain management technology can ensure that each product shipped out of a warehouse has just enough packaging to protect it for the rest of its journey. Packaging has seen numerous user-friendly improvements over time. Creating perforations in materials lets people tear off pieces of cardboard or bubble wrap without using scissors.

Often, these perforations create a clean opening, helping people use the package for other reasons rather than throwing it away. Plus, many food wrap packages have integrated blades that let users cut the foil or parchment at the desired length. These examples show how smart packaging decisions can reduce waste, thereby pleasing consumers and helping manufacturers conserve resources.

However, there’s still room for improvement. Most people can recall occasions where they ordered a small item online and received it in a gigantic amount of packaging. That’s an unwanted outcome for everyone involved. However, Supply Chain 4.0 could make such situations happen less frequently.

Amazon developed a system that uses computer vision and machine learning to determine the type of packaging a particular item needs. The model can detect an object’s size, plus packaging details, such as whether an item is inside a plastic bag or a glass bottle. It also recognizes perforated parts of the package.

When the model has sufficient confidence in the ideal package for a given item, it can select it automatically, which increases efficiency. However, when the confidence level is lower, the system can flag that instance. In such cases, a human reviews the specifics and makes a judgment call. This approach helps Amazon meet its aims to cut down on packaging used. However, it also means items should arrive well-protected, but not overly so.

Achieving Better Visibility With Supply Chain 4.0

Supply chain management can get tricky because it often involves predicting demand based on known factors and making educated guesses about the unknown ones. What makes a certain product highly desirable worldwide while seemingly similar items don’t sell nearly as well? Which steps should supply chain professionals take to avoid long-term outages? Technology can help address those all-important questions.

One study found that artificial intelligence-driven demand planning caused a 50% drop in the product volume affected by extreme forecasting errors. Then, overall forecasting mistakes went down by a third. Those outcomes likely occurred because artificial intelligence can efficiently process large amounts of data and pick up on things humans would miss without technological help.

Decision-makers at computing brand Dell created a digital model of the company’s supply chain to help it cope with the ongoing semiconductor shortage. That tool enables running various simulations so that leaders can plan how to best handle the most likely scenarios.

One way Dell uses the simulated situations is to determine which products will probably become increasingly difficult to source. The company compensates by designing many items with interchangeable or reusable parts as one practical strategy for dealing with current and near-future conditions.

In another case, Unilever unveiled a digital twin that found the optimal batch time by calculating how long it took to produce the necessary quantities of shampoo. Having that data enables consistent production output and helps managers spot bottlenecks within a factory or elsewhere that could cause supply chain strain if left unaddressed.

Measuring Outcomes With Data and Metrics

Supply Chain 4.0 technologies typically don’t give optimized outcomes immediately after implementation. Instead, people in authority must examine the available data and make relevant tweaks accordingly.

Fortunately, that’s becoming easier to do with data analysis tools and sensors that automatically gather data for future review. Perhaps a factory leader hoped to increase weekly output by at least 25% after installing several logistics robots. A platform that collects and analyzes real-time data could show how close the facility is to meeting that goal.

Alternatively, a company may deal with a persistent problem of machines breaking down unexpectedly and significantly hindering the workflow. Connecting smart sensors to the problematic equipment could make it easier for maintenance workers to identify issues before they cause factory shutdowns.

Many decision-makers are understandably hesitant to invest in a lot of Supply Chain 4.0 technology at once. They’d prefer to see evidence of the positive effects of such spending first. Luckily, it’s progressively easier to get it.

A manager could start by calculating the money lost due to equipment failures. They could then measure how much smart sensors save by alerting people to issues before those machines become inoperable. Since so many connected technologies can gather data, they prove whether certain investments provided the efficiency gains people hoped for at the outset.

Supply Chain Management Technology Is Undoubtedly Valuable

These examples show how moving ahead with Supply Chain 4.0 plans could generate impressive results. However, that doesn’t mean people will get those advantages in all cases. They can massively raise their chances of success by considering the biggest supply chain obstacles affecting a business and how advanced technologies could help resolve them.

________________________________________________________________________

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

WMS

Growing Food & Beverage Companies Through WMS System Integration

How System Integration Across Supply Chain Execution Is a Catalyst for Growth

Each function in a supply chain must work together like a well-oiled machine. Not only does this require systems and technology to work together, but also the processes built around it and the people managing it. Integrating diverse solutions deployed within a supply chain network can maximize data sharing to improve visibility, processes, and overall operational excellence.

Successful supply chain management relies on information and communication in order to track the movement of goods, spot issues, and make effective day-to-day decisions to, ultimately, deliver the right items, to the right customers, on time.
Integration across this ecosystem can yield:

1. Greater efficiency through streamlined and optimized operations.

2. Time and cost savings through productivity improvements, waste reduction, and efficiency increases.

3. Accelerated time-to-market with automated processes, optimized workflows, and the ability to make decisions faster.

4. More flexibility to adapt and change strategies to meet demands or shifts in consumer behavior.

5. Added insights by using advanced analytics on centralized, accessible data.

 

supply_chain

Often, the types of systems in this ecosystem include:

-Warehouse management systems (WMS)

-Order management systems (OMS)

-Manufacturing execution systems (MES)

-Transportation management systems (TMS)

-Warehouse control systems

-Yard management systems (YMS)

-Enterprise asset management systems (EAM)

-Enterprise resource planning systems (ERP)

A Digital Supply Chain Hub with SOLOCHAIN WMS Integrations

Companies that focus on creating Digital Supply Chain Hub can break down silos of legacy systems and bring processes and data into an integrated and connected ecosystem. SOLOCHAIN WMS transforms warehouse operations to scale for growth with the integration capabilities to support companies, in particular Food and Beverage, digitizing the supply chain processes.

Importance to Food & Beverage Companies

Digitization of supply chain processes is critical to future growth. The SOLOCHAIN WMS ecosystem provides the specific processes and capabilities Food & Beverage Companies require:

-Advanced warehouse functions and manufacturing execution

-Optimized production floor execution and lean manufacturing

-Work-in-process management and tracking

-License plate and container management

-Recipe management and consumption module

-Quality assurance with electronic checklists

-Track and trace capabilities

-Electronic recall capabilities

Built-in MES

As the command center of manufacturing operations, MES enables manufacturers to attain high inventory accuracy, productivity, and waste elimination throughout the manufacturing process. SOLOCHAIN WMS has built-in MES functionality to give businesses visibility and traceability within their supply chain. This integration is ideal for manufacturers and industries with multi-stage manufacturing processes and traceability regulations, like Food and Beverage, that need to connect the warehouse to the production floor and trace raw materials and finished goods forwards and backward.

Warehouse Control System Integration

Warehouse control systems are important to a warehouse’s automation capabilities as it controls and monitors equipment performance. SOLOCHAIN WMS integrates with various warehouse control system components, such as conveyor belts, sorters, scales, pick-to-light systems, carousels, and print and apply stations.

Mobile Hardware Integrations

Mobility is central to efficient warehouse operations. Handheld and mobile devices make it possible for a worker to be mobile within the warehouse, but it also can boost employee morale. By giving and utilizing devices that workers are comfortable with – iPads, touch screens, etc. – work is more enjoyable, and it takes less time to complete tasks. SOLOCHAIN WMS is platform-agnostic and compatible with Apple iOS, Android OS, and Microsoft Windows mobile.

For Cameron’s coffee, using iPads and tablets for production combined with other handheld devices enabled workers to run more production lines, be more mobile, and reduce the need for computers at every station.

ERP Integration

ERP systems support supply chain planning and manage day-to-day business activities, such as procurement, purchasing, risk management, accounting, and more. It is critical for a company’s warehouse management system to share information with its ERP seamlessly. SOLOCHAIN WMS provides out-of-the-box integration with third-party ERP systems to synchronize data and monitor inbound and outbound transactions in real-time.
This integration allows companies to report faster, close month-end sooner, and manage all business processes better.

ERP integrations include:

-SAP

-Oracle Peoplesoft

-Oracle JD Edwards Enterprise One

-Microsoft Dynamic AX

-Microsoft Dynamics Nav

-Microsoft Dynamics GP

-Syspro

-Epicor

-And others as we are ERP agnostic!

TMS Integration

TMS systems can vary. And how companies ship their products is shifting with changing consumer behaviors. Traditionally, large companies would send products LTL using freight brokers. With eCommerce and omni-channel distribution taking priority, there is a movement toward using small package courier systems. SOLOCHAIN WMS integrates with a variety of TMS systems.

SOLOCHAIN can further optimize warehouse processes, such as picking strategies, based on information exchange with the TMS through this integration.

Manufacturer Blue Streak Electronics doubled output capacity and expanded to eCommerce channels using SOLOCHAIN WMS and a TMS, ProShip, for small parcel shipping.

Read more about how four companies used SOLOCHAIN WMS and integrations to digitize their supply chain processes, transform operations, and facilitate growth.

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 article originally appeared here. Republished with permission. 

products

To Develop Innovative Products, Update Your Situational Awareness. Here’s How.

Product and organizational leaders can always rely on a dynamic business, tech, and regulatory market to challenge product innovation. So prepare to engage early with a process that provides unique insight into your business environment. How do you keep up on market timing and relevance? How do you spot a market shift with your customers? And how do you better align your organization and products with your market?

Developing B2B technology products fit-for-market and which customers will see as valuable is a process. And one ideally driven by applying a strategic approach to acquiring an essential situational awareness. On a battlefield, situation awareness, or situational awareness, is commonly referenced for knowing the environment in which you operate. In a business setting, I apply it to mean knowing your market, customer, and organizational environment.

While the term has also been used to explore other areas, like operations and crisis management, it is an approach I find potentially helpful to companies developing B2B technology products and services, as well as to organizations implementing such solutions to better serve their customers.

The following perspective is based on years of hard-won experience and observations from various roles in the business and technology arena having led development in Internet service infrastructure, supported sales, and presented business proposals to senior management; as well as having been a startup founder, professor of business and IT, radio frequency (RF) content developer and trainer; and presently in management consulting focused on product strategy and transformation in the data-connected cargo space.

I’ve learned that since individual business functions tend to be interconnected, where a fluctuation in one area can affect activity in another, engaging with a strategic process early to raise your situational awareness can be invaluable to innovation-minded product and organizational leaders. While the following illustrate some thoughts for consideration, they are not however meant as a directive. I strongly prefer trying to help others by presenting analysis and context that help them chart their own direction.

Tune Into Your Market. A major part of having an innovation-focused mindset is that not only do you remain closely in sync with your market, but also that you revisit ideas and projects for timing and relevance. Likewise, organizational flexibility, as a market response strategy, can also be helpful particularly when operating in a dynamic business, technology, and regulatory environment.

For example, an area widely covered over the past several years is a market challenge IoT manufacturers have faced on whether to develop pure-play (hardware) products, where they risk becoming a commodity or build products focused on delivering specific services tailored to a specific market. This area has also been a hallmark of the related hardware-as-a-service (HaaS) conversation. Pairing current market knowledge with what you can accept on flexibility can be influential on both an organizational and product level.

Be Curious. Practice tinkering on both a business and technical level as a routine. Gather ideas, challenge their assumptions, and look for key trends. Likewise, practice testing technical processes and functions for useful application. While “value” may not readily surface under this exercise, the point of having worked through some process on this level can serve you well when its opportunity arrives.

Perform a Product Stress Test. Conduct an internal assessment on your existing products relative to their technical capabilities and market applications. Doing so can shed potentially valuable insight on areas requiring attention as product design scalability, operational efficiency, and application limitations given your view of current market direction.

Develop in-house talent. Create an appropriate training strategy for management and technical teams to develop and maintain onboard expertise. At varying times, management needs to communicate with customers and vendors on product performance issues. And technical teams need the required skillsets to develop products and keep up in their field. As well, both should be able to comfortably convey ideas and feedback to one another and to key stakeholders.

Poll Your Customers. Use the relationship that you’ve built to call up customers and ask “how are things”? Ask about how your current product is working for them. Is the price right? Is the service right? Listen for any new features requests, ask how they will be applied, and in what markets will they need to operate? Evaluate requests for reasonableness in technical and cost expectations. Importantly, knowing the market ahead of the call can help you better filter the feedback, including whether any feature or product request is a one-off or, more broadly, signal a greater market shift.

Embrace A Sense of Purpose. Connecting more closely with the end application of your customers can help inspire a positive do-good company culture, and better align product strategy with the customer environment. In some cases, doing so may also lead to uncovering potential new market opportunities. Take, for instance, the food cold chain infrastructure challenges in emerging markets. Research analysis I’ve conducted on this conversation shows that over 40% food loss that occurs in the post-harvest and processing segments, forward-looking companies (in IoT and logistics arenas) interested in creating innovative partnerships in these markets can potentially expand market presence while also serving to reduce the food loss.

Time spent on updating your situational awareness can play an important role towards developing innovative products fit-for-market. The key is to start somewhere: get up to speed on current market trends, and connect with your sales teams on their overall customer interaction experience. They’re on the front lines of communicating with your customers. Assistance on these and other processes should be readily available in-house; if not, retain a professional.

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Sal Yazbeck is a technology strategist advising companies on product innovation and transformation in the data-connected cargo space. He also works individually with business leaders who prefer to receive personalized trusted remote advisory access on days and at times of their choosing. He has worked across several industries, and has taught at both university schools of business and technology. Connect with him on LinkedIn.

supply chain

Planning for Survival in the New Normal

With so much having already been written on supply chain disruption over the past eighteen months – beginning with the initial shut-down of production in China, to fascinating tales of toilet paper hoarding, and now to the current inability to get backlogged demand through our ports of entry — I was initially reluctant to add yet another article to the stack. So what changed my mind? There are actually two reasons, which I’ll explain.

First, the problems and lessons learned from the COVID-19 pandemic are now forcing companies to become more agile, reassessing every element of their existing supply chains in preparation for the “new/next normal”. It’s now blank sheet of paper time as previous playbooks regarding sourcing, inventory levels, placement and risk mitigation plans (if they even had one) – together with any supporting infrastructure of people, processes and enabling technology – are being tossed out the window.

And while COVID-19 can be credited as the catalyst for forcing companies to perform these assessments, it doesn’t take a pandemic to bring a supply chain to its knees. In addition to the exposure contributed by single-sourcing key goods or from maintaining lean inventory levels (i.e., “Just-in-Time” versus “Just-in-Case”), designing a more resilient, risk-averse global supply-chain will require the inclusion of a broader list of potential risks to consider particularly when selecting foreign suppliers. These should include geopolitical conflicts, socio-economic factors including labor, crime and corruption, limited port capacity/infrastructure, weather-related disruptions, and even natural disasters (recall the 2011 earthquake and tsunami in Japan).

Take geopolitical risk, for example. The US’s over-dependency on China for products ranging from personal protective equipment (PPU) to rare-earth minerals has made it a growing concern from both a business and a national security perspective. A sobering report by the Hinrich Foundation (“Strategic US-China Decoupling in the Tech Sector”), states that “the China-US geopolitical competition has reached a competitive tipping point and morphed into a new ‘cold war’”, citing an increase in China’s bold hegemonic policies. The report further highlights China’s years of intellectual property theft, growing labor costs, and the more recent special tariffs levied by the Trump administration, as key reasons for an increase in US supply-chains decoupling from China and either moving into more risk-averse areas in Southeast China, near-shoring to Mexico, or even re-shoring to the US.

In an actual side-by-side near-shoring exercise which compared China with Mexico, the advantages quickly fell to Mexico citing a shorter supply chain with fewer physical touchpoints (damage/theft/service fees), lower freight costs, and eligibility for duty-free entry under the USMCA Free Trade Agreement, as well as side benefits that included ease of communication with vendors and the convenience of traveling to vendor sites.

Risk Management Meets Industry 4.0

The second reason for my writing is that there’s another movement afoot that aligns with supply-chain risk initiatives from the position of enabling technology capable of producing even greater resiliency. Labeled as “Industry 4.0”, this next industrial revolution is the result of the substantial transformation that is occurring through the digitization of manufacturing. For context, the first industrial revolution was through the introduction of water and steam power. Steam would give way to electrical power as the second industrial revolution, with the third being born out of the introduction of computers and their ability to automate previously manual tasks. Fast forward to today where the fourth revolution is now further optimizing that automation by connecting computers with smart machines and “disruptive technologies” such as Artificial Intelligence (AI), Machine Learning, Advanced Business Intelligence, Predictive Analytics and Data Lakes, capable of removing humans from decision-making processes, including applications capable of identifying and even predicting risk.

Where Industry 4.0 supports supply-chain risk initiatives is that the 4.0 movement includes the digitization of global supply-chains. This will translate into unprecedented transparency and connectivity across the entire end-to-end order and shipment process where supporting business functions such as Product Engineering, Procurement, Sales & Marketing, Transportation, Trade & Customs and Accounts Payable traditionally operate in respective silos.

For example, take Trade & Customs operations. Its typical placement near the end of the supply chain process, together with a lack of early visibility to international order, has served for years as a recipe for reactive firefighting as shipments become “stuck in customs” upon arrival until data/documentation issues are resolved. Under a digitized model, silos are replaced with connected supply-chain visibility that would allow Trade & Customs’ participation to move upstream to the earliest stages of new product build/buy decisions. As a result, they’re now in a position to proactively contribute critical advice on regulatory issues, import admissibility requirements, duty/tax minimization strategies such as Tariff Engineering, Foreign Trade Zones, Free Trade Agreements or changes in source countries (e.g., avoiding a 25 percent special tariff on Chinese goods by switching the sourcing to Mexico) – all key factors capable of removing cost, risk and time from their supply-chain.

If you’re currently building a business case to launch your own risk initiative, an interesting report from McKinsey & Company (“Resetting Supply Chains for the Next Normal”), might give you some additional support. For instance, in their survey of 60 senior supply-chain executives across industries and geographies, 85 percent responded that they struggled with insufficient digital technologies, 93 percent plan to increase resilience across the supply chain, and 90 percent plan to increase digital supply-chain talent in-house needed to support that new technology. In short, you’re not alone.

Whether your current project is to address the exposure from disruptions to your supply chain or to digitize the entire enterprise as a result of the increasing disruption caused by technology-driven innovation, what’s becoming clear is that companies will be forced to become agile and adaptive — able to change business models at unprecedented rates of speed in order to survive and thrive in the “new/next normal.”

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Jerry Peck is the Vice President of Product Strategy at QAD Precision, with over 30 years of experience in Global Trade Management. His career has uniquely encompassed nearly every facet of GTM, including third-party logistics, trade operations within Fortune 300 multinationals, and professional services consulting firms.

ach

Here are the Top Tips for Preventing ACH Credit Fraud

Forced to work from home during COVID-19, accounts payable departments have accelerated plans to move away from paper checks and pay more of their suppliers by ACH. That, in turn, accelerated another trend: fraud. Through social engineering, fraud attacks on ACH credits are most commonly known as Business Email Compromises or BECs.

According to the 2020 AFP Payments and Fraud Control Survey Report, for the first time, in 2019, BEC schemes were the most common type of fraud attack experienced, with 75 percent of organizations experiencing an attack and 54 percent of those reporting financial losses. ACH credits—outgoing payments from buyer to supplier—were targeted in 37 percent of BEC schemes.

The problem has only gotten worse in 2020. In the September edition of their Fraud in the Wake of COVID-19 Benchmarking Report, the ACFE reports that 90 percent of respondents have seen an increase in cyber fraud frequency from July through August. This included BECs.

Three-quarters of respondents said that preventing and detecting fraud has become more difficult in the current environment, and more than 90 percent expect attacks to increase. Organizations are under siege, and nearly one-third have received no guidance from banking partners about mitigating ACH credit risks.

What can organizations do?

Defeating BECs requires a multi-pronged approach. Ongoing anti-fraud training is important because these emails are getting more convincing every day. Fraudsters have become experts in user data and A/B testing, which reduces elements that alert their victims of illegitimate changes to their accounts. Strong internal controls are also important and network security, which prevents parties from gaining access to internal systems.

Here are four ways to reduce your ACH credit fraud risk.

1. Handle with Care

Thwarting ACH credit fraud is all about handling supplier banking data securely, which accounts payable must have on hand to transmit their payment file to the bank. This data is often stored in the ERP system, or sometimes on an Excel spreadsheet, where AP staff has been recorded during supplier onboarding. Sometimes it’s stored when a supplier updates their information. Fraudulent change requests are one of the most frequent avenues of attack.

Let’s say you’ve got a new person in accounts payable who isn’t fully trained yet. This person gets an email from a supplier, asking to update their bank account information.

Your new hire, eager to please, fulfills the request, inputting a new routing number and bank account, unaware that a million-dollar payment to that supplier is going out the next day. Nobody realizes what’s happened until two weeks later when the real supplier calls, asking for payment.

By then, it’s too late to reel ACH payments back in. You can call the FBI and the bank. They may try to help you, but if the thieves are sophisticated enough, they’ve already moved the money to offshore accounts, and it’s completely gone.

2. Secure Information

You should never use an unsecured email for banking information updates, although a surprising number of companies still do. It’s too easy for a hacker to intercept one of those emails and use the information within it for their own means. If they get contact or bank account information, they can pose as legitimate suppliers and circumvent internal controls. Some businesses even keep information in spreadsheets or their ERPs, but systems like those aren’t designed to store data securely.

Some companies allow suppliers to update their own information in supplier portals. That might work, provided that companies manage secure portal access and verify all updates. However, if suppliers can log in and update information, it’s likely that hackers can access the same information with very little resistance.

The most sophisticated approach that I’ve seen so far includes a trained procurement team, who verifies and validates all changes that come through.

There are a couple of drawbacks to this approach. It’s a big IT investment with plenty of labor asks. Even then, it’s still prone to internal fraud. At the end of the day, even the best systems will still have their risks. The goal is to minimize them.

3. Look at Fees

Companies often try to shift the risk and time burden to others, with some success. For example, they may choose to pay their suppliers by card., which puts the risk on credit card networks. In cases of card fraud, it’s more likely that payments can be canceled or refunded.

Virtual cards offer even more security because they provide unique numbers, which can only be used by a specified supplier for a specified amount. The big drawback is that not all suppliers accept cards—there are fees to consider.

An organization I’m familiar with pays many of its suppliers with PayPal. Their supplier­­­­—most of them small businesses—are located around the world. AP doesn’t have the time or staff to verify payment information, validate bank accounts, and deal with ongoing updates. As the intermediary, PayPal handles all that and guarantees that the funds go to the right place. But, here again, suppliers pay a hefty fee—in the neighborhood of three percent.

4. Shift the Risk

There really is no perfect system in place, which is why we’re seeing ACH credit fraud rise in tandem with the rise in ACH payments. But there is a perfect way to shift the risk to companies that are built to withstand the verification and validation burdens. Today’s payment automation providers manage supplier information, so individual companies no longer have to spend valuable time on it. It’s similar to handing the reins to IT and procurement departments to lock down the database and institute controls. The difference is that working with a provider removes the time investment and liability.

Think of payment automation providers as a means to outsource risk. Their sole focus is to ensure secure, on-time payments to your suppliers without causing costly overhead. They have perfected the systems and processes for hundreds of thousands of AP departments across the United States, and in ways that businesses would be hard-pressed to replicate.

Businesses used to worry about check fraud above all else. While they still have to pay attention to that aspect, it’s become a low-tech form of fraud that’s easy to understand and plan for. As companies shift to electronic payment means, they’re increasingly experiencing sophisticated cyberattacks, which target much larger sums and are harder to defend against. With such attacks growing, businesses may find that outsourcing professionals is the best defense.

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Jeremiah Bennett is the Director of Information Security for Corpay, a FLEETCOR Company which helps companies of all sizes simplify how they pay suppliers, facilitate treasury payments, and reduce risk.

FTZs

THIRD PARTY LOGISTICS FIRMS OFFER BENEFITS TO THOSE OPERATING IN FTZs

Companies involved in the import of global products into the U.S. and considering the utilization of a foreign trade zone (FTZ) in their business may want to consult with a third-party logistics firm to get an in-depth look at what access to an FTZ may mean for them—and what a 3PL could offer in terms of benefits and efficiencies while operating within an FTZ.

According to U.S. Customs and Border Protection (CBP), FTXs are secure areas under the agency’s supervision that are generally considered outside CBP territory upon activation. Located in or near CBP ports of entry, they are the U.S. version of what are known internationally as free-trade zones.

Imported products can be brought into the country through an FTZ and no duty is paid on these products until they are moved to their U.S. destination. Products can sit or be warehoused in FTZs for lengthy periods and if it is determined these products are no longer required, they can be returned without duties being paid.

“Most importantly, the FTZ program is a U.S. government program-driven around compliance and is unique in that it covers the full supply chain,” says Trudy Huguet, senior director of FTZ Product at GEODIS in Americas, in an interview.

An international firm with a strong North American presence and operations, GEODIS is a logistics company that offers services in several lines of business: supply chain optimization, freight forwarding, contract logistics, distribution and express, and road transportation.

Huguet offered that the expertise of the 3PL that offers foreign trade services has many benefits but, most importantly, they usually can serve on compliance and efficiencies. For instance, she noted a 3PL may have better access “to operational systems and data flow that is needed for multiple systems to run an FTZ” or systems integrated with a foreign-trade zone system. She said a 3PL may also be able to serve certain shared costs with the availability of facilities such as warehousing, as an example.

“3PLs are driven by customers’ needs, like customization and square footage, along with services, staff and team members to run that FTZ for them,” she said.

Addressing a company’s needs is extremely important, in or prior to a peak holiday season, said Huguet.

She noted that many years ago companies used to administrate their own zones but that meant the expertise had to be in-house, necessitating the need to cross-train employees. However, by contracting with a 3PL, “those risks with these programs go away,” Huguet said.

GEODIS has molded programs to fit customers’ needs “so we will work with customers to determine how they can get the biggest bang for their buck,” and where they can find the greatest savings within the FTZ, she said.

Because the U.S.a U.S. FTZ is a sister program to the global free-trade zone, “We are unique in regulations and how we operate and very strong in compliance and most industries and manufacturers, producers and distributors,” Huguet said. “If they are importing into the U.S., they have the opportunity to benefit from this program.”

Getting involved in an FTZ is “kind of a three-stage process” that, Huguet says, involves consultation with the FTZ board where designation is obtained. Activation with local customs and security is followed by building the operational side of the FTZ to run parallel with in-house systems.

Paul Killea, senior vice president of Freight Services Compliance & Security in Americas for GEODIS, oversees import and export compliance for the U.S., Canada, Mexico, Brazil, Chile, Argentina and Colombia, in addition to running an FTZ product. He stressed that “compliance is very big part of the FTZ.”

“Compliance is the process of ensuring that all of our services and our customers’ services are performed in a compliant manner and adhere to all (government) regulations” in and out of the U.S., Killea says. “So, we are responsible to ensure that we have the right processes in place, the right tools for auditing and reporting and in doing so, create visibility to outside parties, specifically the government and our customers, to show them we are compliant.”

GEODIS provides an array of services such as air freight, ocean freight, warehousing and trucking, and the 3PL has a top goal to be compliant itself and to make sure its customers are, too. “First and foremost, GEODIS has to be compliant but obviously we need to make sure our customers are compliant as well. It is a global principle we hold in high regard at GEODIS,” he says.

Strong compliance would definitely be beneficial to a company looking at the benefits of a 3PL with access to FTZ, he noted.

On the security side, GEODIS has a team that manages various aspects of security. The company is a member of Independent Air Carriers and freight forwarder that adheres to the U.S. Transportation Security Administration regulations. The company not only transports air freight, “we are also a certified screening facility in six locations,” Killea notes. “So, my team manages all of that air freight security which is also beneficial to clients.”

Huguet points out that more companies are becoming interested in FTZs “so what we have seen are more companies trying to improve their supply chain dealing with all the various supply chain challenges and bottlenecking with merchandise. Everyone is looking for a better solution and FTZs will help with that.” 

In addition, they can assist with some of the governmental trade issues that have been put into place, such as dealing with China.

Challenges created by the COVID-19 pandemic and port congestion have created issues for companies that 3PLs with access to FTZs can assist with, such as creating additional warehousing within the FTZ to store products longer.

“Because of port congestion and because of COVID, merchandise is sometimes being delayed and not moving as quickly as it should,” Huguet concedes. “The FTZ program has certainly helped.”