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The True Issues Facing Shippers and Importers in this Supply Chain Nightmare – and How We Face Them with Resilience

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Archives, Global Logistics, Global Shippers 101, Global Trade Daily, Imports/Exports

The True Issues Facing Shippers and Importers in this Supply Chain Nightmare – and How We Face Them with Resilience

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It shouldn’t come as a surprise to anyone in the industry that trade will remain incredibly tight for the remainder of 2021 and through 2022, with constraints resulting mainly from port infrastructure challenges, demand variability, COVID-19 resurgences, and carrier capacity.

“Global supply chain bottlenecks are feeding on one another, with shortages of components and surging prices of critical raw materials squeezing manufacturers around the world,” wrote reporters for the Wall Street Journal in an Oct. 8 story. 

I recommend to any executive seeking guidance that all aspects of their business ought to focus now on resilience. Engage your partners and stakeholders with transparency about the challenges; don’t try to shield them from reality. Leaders need to concentrate on business continuity and supply chain agility, whilst scenario planning throughout the value chain of inputs and flows. 

Even when it looks like conditions are approaching catastrophe, there is always something an organization can do. After the 2014 flooding in Somerset, Prince Charles visited the area to learn about relief efforts and remarked, “There’s nothing like a jolly good disaster to get people to start doing something.”

Now is a good time to remind managers that they need not wait for a jolly good disaster to create a plan of action. Rather, multiple “scenario plans” are crucial to providing guidance in the case of any disruption one can think of — and they must include mechanisms for coordinated communication and implementation across the value chain. Making sure these scenario plans result in opportunities for reserving capacity within manufacturing and transport divisions will allow your company to switch gears when needed. 

Any company that relies on a global supply chain is suffering to a degree right now. Obstacles have descended like a game of whack-a-mole; if capacity is secured, an issue like port congestion is ready to pop up and take its place as the bottleneck. That’s why I’ve been reminding my teams and customers that rather than keep strict, minute-by-minute tabs on external conditions, our time is better spent referring to (or developing, if none are found to be applicable) our scenario plans to discern what levers to pull, as well as the potential customer impacts. 

The best path toward actually implementing these chosen plans of action is consistent collaboration, transparency of information, and gaming with peer options/scenarios. It is also worthwhile considering that options are changing rapidly as providers, countries and infrastructures adapt — e.g. options you thought open today, may not exist tomorrow — so being present (understanding the landscape) is as important as planning scenarios in advance. 

The fundamental concept of trade, as outlined by Adam Smith in The Wealth of Nations (1776) is based on the concept of comparative advantages and division of labor offset against the cost of home manufacture and transport. If you ask modern-day economists, global trade conditions are a direct consequence; they echo the very same sentiments as Smith expressed in 1776. They produce daily figures such as PMI, GDP growth, wage inflation, etc., which do provide insight into trends that will directly impact the demand for global trade — outside of trade disputes, pandemics and government interventions, that is!

For more informed predictions, however, one must pair economists’ numbers with trade capacity data. We are trying to return to a normal state of demand and supply right now — with one challenge being that speed of recovery and capacity constraints are creating the real impacts, and this is only solved by normalization of demand, which is impacted by both inflation and opening of service sectors (or fundamental societal changes — don’t underestimate the potential for change from COP26); and/or increased capacity to service demand, which would require new vessels and terminal infrastructure that would be several years out from use.

The last two years have highlighted the fragility of global supply chains, as well as the interconnectedness of our world in general. We’re still feeling the effects of the initial COVID-related factory shutdowns in Wuhan, which immediately generated a global impact on supply chains. COVID has shown how shocks in long global supply chains can become impossible to repair, destroying businesses and wiping out hard-fought GDP growth. 

Among the most likely outcomes: companies will re-evaluate risk in sourcing internationally, consider more diverse sourcing strategies, and build segmented supply chains to manage risk. 

We must be mindful, however, that while the majority of the news over the last two years has been about COVID, major geopolitical changes have also been playing out: heightened tensions between the US and China, increased risk of conflict in the Asia Pacific region, and trade tensions between the UK / EU through Brexit. So when companies look at long-term strategy, these influences on trade policy may force more questions over resiliency, risk management, and diversity than the pandemic’s impact.

Also among the headlines is ongoing discourse about the US’s over-dependence on foreign supply, both in terms of resilience and sustainability agendas. 

In the short run, keep in mind that big problems very often don’t have simple solutions. We can manage the diversity of sourcing both nationally and internationally, remembering that even domestic supply chains are not 100% safe from natural disasters and environmental impacts. We can segment our supply, understand the sourcing of inbound products, and take steps to secure strategic inputs that the company depends on — all while utilizing a diversity strategy that blends domestic, near-sourced, and internationally sourced inputs from diverse supplier bases. 

Apart from the above actions, it’s good old effective planning, careful inventory adjustments, and sales management that remain the keys to supply chain resiliency, whether near- or far-sourced.

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Neil Wheeldon is Chief Strategy & Innovation Officer, BDP International. He is an experienced supply chain management practitioner having worked across numerous industries supporting customers in supply chain and digital transformation initiatives to drive growth. He can be reached at neil.wheeldon@bdpint.com.

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Archives, Global Logistics, Global Trade Daily, Warehousing

How to Deal with Employee Absenteeism

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While on average an employee would miss 54 days of work in 2020, the logistics sector holds an unfortunate record: one of the highest annual increases in absenteeism, putting it just behind the health sector, i.e. 32% over one year. Beyond the exceptional sanitary situation, the supply chain is facing a chronic problem of workforce retention. What HR and organizational levers should be used? Here are a few ways to encourage employee commitment and well-being… and reduce absences.

In its annual survey based on data from 671 companies and more than 350,000 employees, Gras Savoye Willis Towers Waston confirms that absenteeism has increased sharply and steadily over the last five years, particularly in SMEs and ETIs. If the first containment has had an obvious impact, it is far from being the only explanatory factor. While the “transport and logistics” category now holds second place in the sectors most affected by this phenomenon, the study reminds us that the average cost of absenteeism in a company of 1,000 employees varies between 1.7 and 3.5 million USD per year. The weight of logistics activities in this loss of earnings is considerable. Faced with the growing risks of delays and shutdowns in the supply chain field due to lack of personnel, here are three steps for dealing with absenteeism.

 

1. Offer visibility to employees regarding the impact of their tasks on the entire operation

Just like remuneration or benefits offered by the company, the quest for meaningfulness is now well known as a major lever for commitment to the workplace. But how to motivate employees when the tasks they are entrusted with are by definition simple and repetitive? As a manager in the logistics sector, taking the time to regularly explain the stakes and the purpose of your job to each employee, and being able to give them concrete and personalized feedback on the impact of their work, is a way to give meaning to low-skilled logistics functions. Examples include employees knowing which customer profile is ultimately targeted, having details on the products handled and the marketing promise, knowing and understanding all the other technical steps upstream and downstream of his or her intervention. This type of information will help everyone understand his or her role in the supply chain, and therefore, empower teams individually and collectively.

Today, integrated HR tools and advanced warehouse management solutions offer a comprehensive view of current operations and can provide data and visibility to managers.

To learn more about technology that can help you optimize your workers’ performance and increase motivation, read our WMS – Decision Making Guide

2. Invest in technology and robotics to reduce drudgery

Implementing voice command devices for operators or equipping them with exoskeletons is a way to limit strenuous movements and loads carried, thus reducing the risk of musculoskeletal disorders. Some companies are even starting to equip themselves with ‘cobots’, these robotic collaborative assistants that help employees prepare orders and reduce their movements.

Used wisely, these tools have the dual benefit of reducing the risk of sick leave and work-related accidents while optimizing overall warehouse performance.

3. Incentivize employees through game-based management

Sometimes alone at their workstations, with no real opportunity to communicate with their colleagues for long hours, supply chain operators can legitimately feel isolated. Keeping them motivated is a daily challenge for managers and HR. Gamification is one way to encourage commitment, pride of belonging and team concentration. For example, it is a matter of organizing interactive performance contests, between peers or between teams, aiming at collecting a maximum of points to obtain symbolic or material rewards. Or measuring the quantity of plastic recycled by each person, with rewards at stake. These challenges can also encourage employees to follow professional training courses or to respond to co-optation campaigns. These initiatives contribute indirectly to the fight against dropping out of the workforce and absenteeism.

Generix Group North America helps distribution & manufacturing companies achieve operational excellence with their WMS & MES Supply chain solutions. We invite you to contact us to learn more.

This article originally appeared here. Republished with permission.

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Archives, Global Trade Daily, Special Reports

An American Businessperson in a Global World: Rethinking Your Cultural Business Etiquette

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In the American business world, there is a generally accepted, and often unspoken, etiquette that most businesspeople follow. Be on time, dress professionally, use a firm handshake, make eye contact, show initiative, be respectful of your superiors and so on. Take a look around the world, however, and you will find widely diverse protocols that can quickly lead to cultural barriers, misunderstandings, and possibly lost revenue.

From punctuality to attire to physical contact and personal space, the code of behavior varies wildly across different cultures. When doing business in a global, geo-political world, these differences can be tricky to navigate, especially in virtual meetings. But the broad representation of different cultures goes a long way toward making businesses more competitive. Culturally inclusive and diverse companies are shown to see higher profits. Diverse teams are more innovative, better at making decisions, and are more likely to capture new markets.

Cultural awareness can have a big impact on the growth of your business. More importantly, though, it is a matter of showing respect and earning the trust of your international partners and colleagues. It is about establishing common ground so that decisions, deals, and relationships start from the same foundation.  And to build that foundation, you may have to make some adjustments in how you do business.

Below we will look at 8 changes you can make to foster cross-cultural intelligence and improve the way you conduct international business.

Do Your Research & Be Prepared

Over 80% of CEOs recognize empathy as a key to success. Before meeting with any international business associates, invest time in learning how they act, speak, dress, and conduct business. Even if everyone speaks English, make the effort to learn how to say “hello” and “thank you” in their language. Be aware of what titles, if any, should be used. The simple awareness and empathy of what they do and why it helps you better adapt to their needs. Also, the planning you do before the meeting is often more important than what you do in the actual meeting. In many cultures, meetings are not where the decisions are made; they are an opportunity for asking questions and exploring possibilities. Therefore, distributing all necessary information prior to the meeting gives everyone involved time to review so that they can comment on it intelligently. In an ideal world, the materials should also be translated into their language to make things easier.

Hire your own Interpreter

Even when you have all materials translated, if you are not fluent in each other’s languages the potential for miscommunication is high. To prevent any misunderstandings, it is a good idea to have an interpreter on hand. This gives everyone an equal opportunity to comprehend everything that is discussed. Even if the other party has an interpreter in the meeting, always have your own interpreter on hand, as you never know what the other side may discuss!

Tone Down the Assertiveness

Americans are known for being direct, assertive, and loud. Some countries, like Germany, share this quality when sharing ideas and doing business. In other countries like Japan, however, people tend to speak softly and are not as forthcoming when making suggestions or sharing their ideas. Doing your research will help you know if being assertive is appropriate or if you are coming across as pushy and aggressive. When in doubt, use a neutral tone and be considerate of everyone’s input, even if they communicate in a way you are not accustomed to.

Beware of Nonverbals

A mere 7% of what we communicate is expressed with words. The remaining 93% is conveyed with body language. Nonverbal communication can be complicated in any setting, but with so much business taking place virtually these days, it is more important than ever to be aware of what you are saying with your body language. From intense eye contact to large hand gestures to loosening your tie in a meeting, there is a minefield of ways you could inadvertently insult an international colleague. Learning and practicing nonverbal cues that are common in your associate’s culture will be worth the effort to avoid coming across as rude and offensive.

Watch What You Say

Avoid using slang, local idioms, or “Americanisms”. For example, sports metaphors like “that came out of left field” or “can you pinch-hit this one for me” are not universally understood. Your associate may not understand what you’re talking about, and it is unlikely they will tell you, which can make them feel isolated and unaccepted. Be careful making jokes as well. While a good sense of humor is an asset in any potentially awkward cultural situation, jokes can lead to misunderstandings and possibly be offensive.

Don’t Try to Multi-Task

According to a survey from Intercall, the largest international conference call company, “65 percent of people do unrelated work during a meeting, 60 percent read or send e-mails, and 43 percent admit to checking social media.” While it may be easy to slyly multi-task in a virtual meeting, if it’s noticed, you’ll come across as rude. In addition, when meeting with an international client or colleague, whether virtually or in person, there’s a lot going on. From considering their cultural norms to understanding the interpreter in the background, to making important business decisions, you don’t want to get distracted from your main objectives. Save yourself a lot of trouble and keep your attention on the task at hand.

Consider How Other Cultures View Time

Many countries place a high level of importance on starting meetings on time and keeping to strict schedules. On the other hand, punctuality is treated casually in countries like France or Argentina. This fluctuation can affect how much relevant information you have time to share. Understanding your client’s culture can help you prepare and organize the meeting agenda accordingly.

Time is also a consideration in the decision-making process. For example, the UK has a slower process than the US. Germany also takes its time, being very thorough in early stages, but once they have made a decision, things move quickly. Understanding and managing your time expectations is critical.

Recognize Hierarchical Structures

Hierarchical structure can impact the way business meetings are handled. In many East Asian, Latin, and African cultures, decision-making authority varies according to age, gender, family background, etc., and team roles are allocated accordingly. Even the way the meeting is conducted in these countries is affected. For example, in China, you should always allow the host to leave the meeting first. Virtual meetings may minimize these issues since there are no seating arrangements, but because the rules and protocols can be complicated, it’s a good idea to explicitly outline the expected formalities ahead of time so everyone knows how to interact.

Cultural Awareness is Your Competitive Advantage 

Embracing cultural awareness and diversity is a crucial part of doing business in an ever-expanding world. Cross-cultural intelligence inspires creativity, encourages inventive thinking, and fosters better problem-solving. The local market insight you get makes your business more competitive and profitable. It allows you to better adapt your products and services to be more meaningful and valuable to all your customers.

A study done by McKinsey and Company showed that companies with more culturally and ethnically diverse executive teams were 33% more likely to see better-than-average profits. When you make a genuine and concerted effort to understand cultural dimensions, you can build a greater understanding between the different cultures in your organization. This ultimately leads to understanding, trust, respect—and competitive advantages— in a very complex world.

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Susanne Evens is the Founder and CEO of the St. Louis-based AAA Translation (founded in 1994), the President of St. Louis-Stuttgart Sister Cities (since 2006), and a board member of the World Trade Center St. Louis. Susanne is also a board member of the German-American Heritage Society (since 2007), a member of the St. Louis Mosaic Project Immigrant Entrepreneurship Advisory Board and a member of Explore St. Louis Multicultural Committee. Her advice regarding global business development and communications has been featured by national media outlets that include BusinessWeek, National Public Radio (NPR), BrandChannel.com, and more. Under her leadership, AAA Translation has grown to serve business clients the world over, working in more than 300 languages, to provide translation, interpretation, and cultural consulting services. For more, please visit aaatranslation.com.

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Archives, Global Trade Daily, Special Reports

Paycheck Or Purpose? How Businesses Retain Workers by Giving Them Both.

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At a time when global talent shortages are reported at a 15-year high, one key to keeping the best employees happy and onboard may lie in how well companies not only state their purpose and their values, but also prioritize carrying them out.

“When purpose and values are backed by meaningful action, you have the extraordinary opportunity to sharpen your company’s legacy – and have a better chance of retaining employees who otherwise might seek opportunities elsewhere,” says Maggie Z. Miller, the ForbesBooks co-author with Hannah Nokes of Magnify Your Impact: Powering Profit with Purpose (www.magnify-impact.com).

That’s especially critical these days when 69% of companies worldwide have reported talent shortages, and many employers are working to build more flexibility into jobs, something workers are demanding, according to a recent ManPowerGroup Employment Outlook Survey.

Miller points out that studies show firms that do a better job of practicing corporate responsibility can reduce average turnover over time by 25 to 50 percent. Employees want more than just a paycheck, although that’s important, too, she says. They want to feel that there’s some greater legacy to what they do each day and as a result they are drawn to companies that practice purpose alongside their profit.

Assisting businesses in finding and embracing purpose is what Miller and Nokes do. They are co-founders of Magnify Impact, a company that helps business leaders not only be prepared to react swiftly in times of crisis, but build a proactive strategy for effective social impact.

“Part of enriching your corporate growth journey is to move beyond purely transactional business operations,” Nokes says. “Purpose and values are the rock on which your business stands.”

And an essential element of that involves developing engaged employees.

Workers Desire Fulfillment

“Strong organizational values help cultivate fulfillment, where employees become active participants in, and ambassadors of, a company’s purpose,” Miller says.

People’s desire for fulfillment at work is strong, according to a PwC/CERC survey, which found that 70% of those surveyed said they would leave their current job for a more fulfilling opportunity, and one in three would consider lower pay to find more on-the-job fulfillment.

Meanwhile, Glassdoor’s Mission and Culture Survey 2019 found that 79% of adults would consider a company’s mission and purpose before applying for a job.

But one additional hurdle companies face in keeping employees engaged these days is that the COVID-19 pandemic has had a significant impact on work and culture, Nokes says.

“Many companies will never go back to a full-time, in-person workforce,” she says. “Figuring out how to manage this new style of part physical and part virtual workplace is at the forefront.

“The pandemic and its reverberating effects raise new challenges for putting a company’s purpose into practice in day-to-day situations. How do you keep your people tethered to the culture in times of stress? How do you keep employees invested in and passionate about your brand when they’re not physically together?”

Miller and Nokes say it’s important to get employees involved in helping develop the solutions to those nagging questions.

Keeping It Simple – And Ambitious

While a company’s purpose and values can and should be ambitious, they don’t need to sound grandiose, peppered with flowery language or impenetrable prose, Nokes says. Some of the most successful companies state their purpose and values in simple and straightforward language.

For example, Patagonia’s purpose is “to save our home planet” and its values are “build the best product; cause no unnecessary harm; use business to protect nature; not bound by convention.”

Definitely ambitious. Also, easy to understand.

But purpose and values can’t just be feel-good ideas. They must be acted upon, or else employees will soon see that the company doesn’t really mean what it says, and they will go in search of a place to work where the purpose truly means something, Miller says.

“It doesn’t matter if you are in a beautiful corporate headquarters with your company’s values painted artistically on the wall,” she says. “Business leaders should ask themselves and their employees, ‘Do we make decisions based on these values? How often do we talk about them in leadership meetings?’ If the answers are ‘no’ and ‘never,’ it’s leadership’s job to get those words off the wall and into the hands of their people to use them.”

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Maggie Z. Miller and Hannah Nokes are ForbesBooks co-authors of Magnify Your Impact: Powering Profit with Purpose (www.magnify-impact.com). They also are co-founders of Magnify Impact, a company that helps business leaders create effective social impact strategies. Miller has developed social impact solutions with hundreds of company leaders globally. Previously, she founded an international nonprofit organization to provide microcredit loans for thousands of women in Peru. Nokes has led corporate social responsibility for global corporations and founded an impact collaborative of companies in Austin, Texas.

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Archives, Global Trade Daily, Special Reports

Why Are Good Employees Leaving Your Company? 5 Tips To Keep Them.

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The job quitting isn’t stopping: a record 4.3 million workers left their jobs in August – a milestone that followed the April landmark of 4 million Americans exiting their companies.

Some people are leaving their jobs because the COVID-19 pandemic caused them to reconsider how much their companies value them. In that context, whether it’s a matter of pay, work demands, work-from-home flexibility, or overall culture, it’s important that businesses seeking stability and growth know how they can retain their best employees, says Michele Bailey (www.michelebailey.com), ForbesBooks author of The Currency of Gratitude: Turning Small Gestures into Powerful Business Results.

“With over 10 million employment vacancies, some people are leaving because they are confident they can find a better job, a better fit in line with the new perspective the pandemic has given them,” Bailey says. “So at this point, a good number of jilted employers should be asking themselves, ‘Why are talented people leaving my company? What can I do to change that, regain stability and grow?’

“The answer is often looking back in the mirror at them, and in how they treat people more as laborers than rare gems who are special – people who can make the workplace special. It’s fixable, but it’s all about putting your employees first.”

Bailey says in terms of retaining top employees, companies and their leaders should think about these points:

Know the cost of replacing good employees. One report shows that it costs 33% of a worker’s annual salary to hire a replacement if that worker leaves. “Clearly, retention and development of existing employees make the most sense if they are the right fit,” Bailey says.

Encourage professional development. Bailey says forward-thinking, growth-oriented companies hire talented people with the capability of taking on bigger responsibilities. “Professional development provides the opportunity for steps up in their career path,” Bailey says. “Employees who do not see a clear path are at risk of leaving.”

Build culture by acknowledging the whole person. “Work-life balance” has gotten a lot of attention during the pandemic, but Bailey says good leadership ensures that balance is in place by going the extra mile to know employees and to listen to their concerns, whether personal or professional. “The reality is that all of us bring our personal selves to work and our work selves home with us,” she says. “When something is going well or poorly in either space, it tends to seep into our attitudes and behavior in the other. When you address the overall wellness of your people as part of your business mandate, you have people well-aligned and rowing in the same direction.”

Create an army of brand ambassadors by empowering your employees. Employees who feel their voices are heard at work are nearly five times (4.6) more likely to feel empowered to perform their best at work. Employees who use their strengths every day are six times more likely to be engaged at work, 8 percent more productive, and 15 percent less likely to leave their jobs. “Many businesses tout themselves as collaborative workplaces with great cultures; however, worker frustration suggests that the reality is otherwise,” Bailey says. “A good culture is a place where they’re freed to flourish, energized, and proud to represent the brand to clients.”

Reward and recognize. “Showing gratitude to your workforce is imperative to having a successful business,” Bailey says. “Eventually people want you to show them the money – and you must if you truly value them – but frequent shows of gratitude in any form should be consistent and timely.”

“We can hold onto our talent and keep our people engaged,” Bailey says, “by creating an environment where employees become emotionally connected through gratitude to company leadership, to each other, and to the company’s purpose.”

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Michele Bailey (www.michelebailey.com) is the ForbesBooks author of The Currency Of Gratitude: Turning Small Gestures Into Powerful Business Results. She also is founder/CEO of The Blazing Group, a brand and culture agency born of her strategy-first approach to business and desire to enhance employee wellness in pursuit of business goals. She is also the founder of My Big Idea®, a mentoring program designed to propel individuals toward their personal and professional goals. Bailey has been recognized for contributions to women and entrepreneurship with honors such as the Bank of Montreal Expansion & Growth in Small Business Award and the Women’s Business Enterprise Leader Award in 2020. Bailey is a popular speaker and is also the author of a previous book, It’s NOT All About You, It’s About the Company You Keep.

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

7 Supply Chain Optimizations to Protect You in 2022

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Current market turmoil is too big for any company to control, but leaders can take some first steps to protect themselves in 2022 with supply chain optimization best practices. Shoring up relationships, improving understanding of current affairs, and adding safeguards all can play a role in securing operations. For companies looking to create a significant impact in short order, here are seven optimization efforts to try.

1. Map the supply chain

Supply chain designs are changing rapidly. Not only can modern technology bring partners together and facilitate near-instant data transfer, but mergers and acquisitions are shifting the landscape of what’s available. To optimize a modern supply chain, you need a good map to see how parts move and where new connections appear.

Consider creating a robust visualization of your supply chain. Show how goods move, where data flows, and what connects each point physically and digitally. You may identify new pathways or constraints, discover unnecessary, duplicative efforts, or uncover advantages such as optimized warehouse locations. But to find these, you need to be able to look.

2. Consolidate data and documents

You need accurate data that’s readily available if you want to respond to a crisis. The more significant the delay in collecting and analyzing this information, the more time it takes to adapt to whatever occurs. So, focus your supply chain optimization on efforts to automate data capture, consolidate it, and make it usable for you and your partners.

One core area to start with is your documentation. Look for tools that support data capture and verification in standard documents, such as invoices, bills of lading, service-level agreements (SLAs), dock receipts, and more. Build a single repository to help you track everything a shipment uses. When possible, work to integrate your tracking and partner systems so that everyone is working from the most recent status and information.

3. Strengthen current relationships

Your supply chain is complex and intricate, involving a wide range of partners. Use the lessons and capabilities from documentation-focused efforts to foster broader communications improvements. Ask suppliers and partners what they need from you, such as updated forecasts or projections. Speak with carrier reps to secure capacity and discuss your seasonal volume. Tell companies how you measure their capabilities or SLA success. Ask partners how they measure you.

The aim is to open lines of communication and start discussing ways to be mutually beneficial in every deal. When you’re a better partner during non-peak, companies are more likely to give you additional support, capacity, and leeway during peak. As we’ve seen in 2020 and 2021, that can make a world of difference.

4. Secure additional space early

Keeping the peak season focus, it’s time to work on your current capacity. Can you or your 3PL store additional goods? Are you running out of shelf space? What will happen when you scale, up or down?

For 2022, it’s a promising idea to start thinking about scaling up your inventory. We’ve seen slower inbound services and prolonged delays at ports. So, increasing stock on hand helps you avoid stockouts and backorders. Work to secure or build that additional space early on to accommodate this increase in stock. It’ll protect order fulfillment as well as give your overall supply chain more lead time.

5. Create realistic alternatives

Communicating with existing partners around their KPIs and your needs, such as storage, will often identify gaps in coverage. You may realize that some partners can’t meet every demand or that they’re at risk when supply chains struggle.

Protect operations with supply chain optimization practices focused on diversity and alternatives. Bring on additional carriers and regional support to keep goods flowing. Try different warehouses or 3PLs for your sales channels to determine the best fit. Adding partners eliminates many single points of failure, allowing you to keep running when the market becomes complex. This protects customers and partners throughout the supply chain by ensuring operations don’t grind to a halt.

6. Enact a testing plan

Today’s supply chain relies on a considerable number of systems and tools to operate efficiently. So, any changes in these can impact your overall supply chain optimization efforts. Work with your partners and internal IT teams to create a plan for testing changes, tracking implementation, and evaluating results. Set metrics and KPIs for tools as well as new partners.

Whether you’re splitting fulfillment across multiple partners, trying new suppliers, or shifting ERPs, you’ll face significant challenges. A robust change management plan will help your teams stay on track, encourage people to try the new methods, and attempt to make investments lucrative. Give people what they need to grow your supply chain.

7.  Continue to analyze and adapt

Supply chain optimization never truly ends. While the other tips can help you take initial steps or push a project further, you’ll want a team to review operations consistently. Assign analyst roles and tasks to ensure you’re continually reviewing the overall supply chain and any improvements you make. Crunch short- and long-term data to see where you’re succeeding or if new risks emerge. Always keep testing and reviewing to help mitigate the impact of supply chain disruptions that have become increasingly common in the 2020s.

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Jake Rheude is the  Vice President of Marketing for Red Stag Fulfillment, an ecommerce fulfillment warehouse that was born out of ecommerce. He has years of experience in ecommerce and business development. In his free time, Jake enjoys reading about business and sharing his own experience with others.

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Archives, Global Trade Daily, Special Reports

The Hallmarks And Benefits Of Servant Leadership In Today’s Business World

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Traditionally, society hasn’t thought of company leaders as servants. But to deal more effectively with today’s changing business dynamics, more companies are incorporating servant leadership to benefit employees and the community as well as the bottom line.

Servant leadership is especially important and applicable in a post-COVID business world, when millions are quitting their jobs and CEOs are trying to stabilize their work cultures, says Jason Randall, CEO of Questco and ForbesBooks author of Beyond The Superhero: Executive Leadership For The Rest Of Us.

“Servant leadership is leading in a manner that encourages growth and success in others,” Randall says. “By investing in them, you as a leader instill a deeper buy-in.

“Leaders who are comfortable with a commanding style may find servant leadership counterintuitive, as though showing empathy to employees is an invitation to be taken advantage of. But when the servant leader listens with empathy to an employee who is strained by conflicting obligations, that leader is more likely to make accommodations such as flexible work schedules. These accommodations benefit productivity and the culture.”

Randall says that overly controlling leaders shut down their top talent and thus are a hindrance to company progress.

“As Steve Jobs said, ‘It doesn’t make sense to hire smart people and then tell them what to do,’ ” Randall says. “Getting divergent perspectives, as servant leaders do, is essential for company growth and individual engagement and fulfillment. Leaders who commonly resort to issuing commands are conditioning their people to not take much ownership.

“Employees who believe they are not valued for their minds won’t bother to come up with fresh ideas – or they will take their fresh ideas elsewhere.”

Randall says there are six hallmarks of the servant leader:

Availability. This means making sure there is adequate time in meetings for people to have their say, whether it involves venting frustrations, questioning, or establishing collaboration. “Giving time over to the employees and coaching them is really valuable to their development and contribution,” Randall says. “In too many organizations, senior leaders mostly huddle behind closed doors, and if they claim to have an open-door policy, it becomes a joke.”

Candor. “Because the servant leader is extending a lot of trust in individuals, it’s necessary to address any failures in a straightforward way,” Randall says. “But improving performance is not likely when the leader’s voice is angry or hostile.”

Consistency. Randall says that consistency in meetings and day-to-day procedures can be a challenge in the commotion of a growth organization, but the more consistency, the better the response from the workforce.

Empathy. “Being aware of and sensitive to the feelings, thoughts and experiences of others is a key characteristic of servant leaders,” Randall says. “Nobody can be a truly effective leader without understanding the humanity behind the individuals they are expecting to lead.”

Patience. The starting point for patience, Randall says, is when leaders recognize they can’t do everything themselves. “In the long term, it’s important for leaders to understand that we have to balance our lofty goals with the fact we have fallible human beings who must grow to achieve them,” he says. “The servant leader, who is patient, recognizes that team members are precious, and weathering the peaks and valleys will make everybody stronger.”

Trust. The servant leader encourages a freedom to experiment, which also means a freedom to stumble and learn from it, Randall says. “To delegate responsibilities, to encourage employees to speak up and be creative, leaders must show trust in the whole team,” he says. “Trust is the underpinning of the entire servant leadership approach of building a strong team.”

“Servant leaders get results, and they make everyone’s life better in the process,” Randall says. “They focus not only on business outcomes but also on the humanity of the team.”

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Jason Randall (www.meetjasonrandall.com) is CEO of Questco, an HR outsourcing company, and ForbesBooks author of Beyond The Superhero: Executive Leadership For The Rest Of Us. Formerly he was director of brand marketing for Maritz and vice president/managing director of Insperity. Randall earned his MBA at Northwestern University’s Kellogg School Management.

employees
Archives, Commentary, Global Trade Daily, Special Reports

How Recognizing Top Employees Can Cure The Quitting Epidemic

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A record 4.3 million workers left their jobs in August, continuing a trend in 2021. Reasons for quitting vary, but as one recent survey shows, a lack of appreciation from employers is a common driver.

Appreciation is an especially important factor to a large segment of the workforce – millennials and Gen Z. In a poll taken shortly before the COVID-19 pandemic began, 79% of millennial and Gen Z respondents said an increase in recognition and rewards would make them more loyal to their employer.

With companies losing talented people and struggling to fill open positions, leaders need to know how to make employee recognition and appreciation a more consistent part of their work culture, says David Friedman (www.culturewise.com), author of Culture by Design: How to Build a High-Performing Culture Even in the New Remote Work Environment.

“Recognition is the best way to boost employee engagement, productivity and profit while significantly strengthening your culture,” Friedman says.

“It may seem intuitive that employees who are thanked and recognized for their work are happier and, as a result, perform better. But unfortunately, managers may be busy with other tasks or have an attitude of ‘If you don’t hear anything, assume you’re doing a good job.’ That approach loses good people who were very valuable.”

There are benefits to company leaders praising teams as well as individuals. A Gallup survey shows giving kudos to teams can encourage collaboration, inspire trust, clarify organizational goals, improve quality, and reinforce a team’s sense of purpose.

“Praise for a job well done should flow across all levels of the organization – peer to peer, manager to their direct report, and direct report to their manager,” Friedman says. “Remember your remote workers – they may already be feeling disconnected from the workplace, so remind them that you notice and appreciate their contributions.”

Friedman offers these thoughts on giving recognition and showing appreciation in the workplace:

It should be authentic and individualized. Friedman observes that employees are savvy and can see through an “everyone gets a trophy” mentality. “Saying ‘great job’ is nice, but it’s much more meaningful if you detail the specifics of the person’s actions and how they helped advance the company’s objectives,” he says. “And if their efforts merit more than a compliment, or such efforts are a trend for them, then leaders need to figure out a fair tangible reward. Promotions with pay raises and increased responsibilities go the next step to show consistent high performers that they are truly valued.”

Tailor recognition to the recipient. Some people enjoy being the center of attention, so a formal public recognition is ideal for them, Friedman says. Others avoid the spotlight and prefer a one-on-one acknowledgement. For a team acknowledgment, a company-wide or departmental meeting might be a fitting forum. “That’s a great way to show the link between the team’s accomplishments, company objectives, and the importance of working well together,” Friedman says.

Convey your appreciation in person. Friedman notes this may be difficult with remote workforces, and sometimes a phone call or email will have to do. “But the in-person touch has a lot more impact,” he says, “especially when it comes from an executive with whom the employee has very little exposure.”

Create a culture of recognition. “Culture change starts with identifying the specific behaviors that drive success in your company,” Friedman says. “One of them should be showing meaningful appreciation. That means regularly recognizing people doing things right, rather than frequently pointing out when they do things wrong.”

“Recognition leads to happy employees, better retention, and better business results,” Friedman says. “When your people know they are appreciated, really valued, it will make a huge difference in your day-to-day culture and in your growth as a company.”

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David Friedman (www.culturewise.com) is author of Culture by Design: How to Build a High-Performing Culture Even in the New Remote Work Environment. He also is founder/CEO of CultureWise®, a turnkey operating system for small to midsize businesses to create and sustain a high-performing culture. He is the former president of RSI, an award-winning employee benefits brokerage and consulting firm that was named one of the best places to work in the Philadelphia region seven times. Friedman has taught more than 6,000 CEOs about work culture and led more than 500 workshops on the subject. With Sean Sweeney, Friedman formed High Performing Culture, LLC, based on the culture methodology Friedman created at RSI.

international
Archives, Global Site Selection, Global Trade Daily, International Trade

Making Inroads Overseas: Strategies for Winning International Business

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While the U.S. may have the largest third-party logistics market of any nation, there’s plenty of global opportunity to capitalize on. Companies that can break into international markets could reap considerable rewards.

The rise of e-commerce and other internet-based businesses has made the world more interconnected than ever. Consequently, there’s a rising demand for fleets that operate between borders. Smaller, up-and-coming economies with less saturated markets pose an enticing growth opportunity, too.

While expanding into overseas markets can be highly profitable, it’s also often challenging. These six strategies can help companies overcome these challenges to win international business.

1. Research Ideal Markets

One of the biggest mistakes a company can make is expanding into new territory without researching first. Different countries come with different legal restrictions, economic considerations, and market atmospheres. Companies must understand these before choosing where to start their international growth strategy.

For example, Germany has the world’s highest-performing logistics market, which would make it seem like the ideal place for expansion. But since it’s also home to DHL, which holds 39% of the global market share, it may be hard to succeed there. Preliminary market research would’ve revealed that, informing more effective expansion.

Businesses should research the local markets in different countries to find the most profitable area to expand into. That includes looking at tax considerations, competition, and customer needs. Without considering all of these factors, globalization initiatives will likely cost more than they bring in.

2. Understand the Local Culture

Similarly, after deciding on the ideal market, businesses should understand any cultural differences they’ll encounter. Tapping into the local culture can make marketing initiatives more effective and help impress potential clients. Alternatively, if businesses don’t understand these differences, they may accidentally offend or disinterest customers and partners.

Understanding cultural divides can make or break a company’s success, especially when meeting potential international partners. For example, while it’s a rule of thumb in the U.S. to show up five to 10 minutes before a meeting, it may be longer or shorter in other countries. Not understanding that could hinder a meeting’s productivity.

Other countries may have differently structured workweeks and holidays that could affect business, too. The United Arab Emirates, for example, observes the weekend on Friday and Saturday, not Saturday and Sunday. Knowing this before going in can determine whether a business thrives internationally or struggles to get its footing.

3. Partner With Regional Businesses

Another crucial strategy for expanding internationally is partnering with overseas businesses. Companies based in the area will already have the cultural and legal knowledge needed to navigate the local market environment. They will also already have consumer and business connections, giving U.S. companies a foot in the door.

An important step in this strategy is to meet these potential partners in-person as much as possible. Taking the time and money to fly out to meet them shows a willingness to invest in their company. This can give businesses a leg up on any other competitors for the partnership.

Without a local partner, it can be challenging to succeed in a foreign market. Companies will have to establish their brand name, build a customer base, and navigate potentially complicated legal considerations. Foreign partners can cover all of these factors early, letting businesses get off the ground sooner.

4. Adapt Your Marketing Strategies

Since every country has its own culture and values, effective marketing materials are rarely universal. As such, logistics companies trying to expand into overseas markets must adapt their marketing strategies. Research and international partners can reveal local customers’ habits and preferences, informing more effective ads and promotions.

Large restaurant chains serve as excellent examples for adapting international marketing strategies. In France, McDonald’s offers a free illustrated book with every Happy Meal purchased on the first Wednesday of the month. This doesn’t make much sense in the U.S., but children in France don’t go to school on Wednesdays, making this an effective strategy.

Promotions that work in the states may not be as appealing overseas. Similarly, other countries may have holidays, customs, or trends that present unique marketing opportunities that wouldn’t succeed in America. If companies want to be as successful as possible overseas, they must adapt.

5. Localize Your Website

It’s hard to overstate the importance of having an appealing website in today’s market. In many countries, the number of internet users has doubled in the last three years, and websites often serve as customers’ first impressions of a business. While this may be true across borders, what constitutes an ideal website may not be as consistent.

Businesses must localize their sites to fit global audiences. The most obvious step in this process is translating all of the text, but that’s not all localization entails. There are also various cultural connotations and preferences about design and business practices to consider.

Some colors may be appealing in the U.S. but carry a negative connotation in other cultures. While English reads from left to right, not all languages do, so websites in some countries may need to be mirrored to account for this. Turning to contacts in these countries or localization firms can help account for these differences.

6. Capitalize on Local Resources

Many globalization strategies involve taking steps to navigate unique challenges in overseas markets. While these are crucial, the most effective international expansion efforts also look for other areas’ unique benefits. Every country has unique resources to offer, so businesses should take advantage of these opportunities.

One example of a company implementing this strategy is the grocery store chain H-E-B. When H-E-B went international, it bought blueberries from Chile and Peru, giving it access to fresh blueberries year-round. Capitalizing on these warmer climates helped the company expand its offerings, pushing revenue higher.

Businesses should look for what resources different areas have, such as relaxed tax codes or cheap transportation markets. Taking advantage of these instead of keeping business models the same across all countries will maximize international success.

Make the Most of International Expansion

As the world becomes more interconnected, global expansion becomes an increasingly enticing strategy. Companies that can capitalize on it early will see the most success in the future. These six strategies provide a roadmap for doing so.

Winning international business can be a challenge, but it also presents several opportunities. If businesses can act on these steps, they can expand into foreign markets more effectively. They can then enjoy all international business has to offer.

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

KEEP AN EYE ON IoT: THE FUTURE IS NOW WHEN IT COMES TO TECH’S ROLE IN SUPPLY CHAIN MANAGEMENT

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The Internet of Things is a revolutionary technology of today. If implemented optimally, it can bring about immense benefits in different industries including transportation, retail, healthcare, finance and supply-chain management. For processes like forecasting, management and oversight applications, IoT can assist fleet managers in improving the operational efficiency of distribution along with adding transparency to the decision-making process. 

IoT can play a vital role in improving supply chain management, with its main applications in tracking and monitoring processes. Additionally, IoT can be applied to other processes.

TRACKING LOCATION IN REAL-TIME

The IoT can help provide real-time data of a product’s location and its transportation environment. It can be tracked at all times and you can get real-time alerts if anything goes wrong during transportation and can monitor the delivery of raw materials and ready goods.

With environmental sensors, shipments can now be tracked for internal conditions such as the inside temperature of the vehicle, humidity, pressure and other factors that can potentially adversely affect the product.

C.H. Robinson ties its recognition as a challenger in the 2021 Gartner Magic Quadrant for Real-Time Transportation Visibility Platforms to the Eden Prairie, Minnesota-based global logistics company’s solutions such as Navisphere Vision. Delivered by C.H. Robinson’s TMC division, Navisphere Vision’s IoT device integrations allow shippers to monitor and immediately mitigate issues when freight is impacted by shock, tilt, humidity, light, temperature or pressure.

Recognition is great, but to expand on C.H. Robinson’s newer capabilities, the company has announced it will invest $1 billion in technology over the next five years or double its previous investment. 

“Several major events over the past year have emphasized the vital importance of supply chains, but also highlighted their fragility in some cases,” explains Jordan Kass, TMC president. “The companies who will excel in the years to come will be those with real-time visibility into their supply chains. The ability to consume, combine and analyze data from the growing number of integrations and data points will be essential for building a resilient, competitive and profitable supply chain.”

24/7 20-20 VISION

IoT devices help managers in making decisions about product arrivals and increasing delivery forecast precision. Not only does it help predict final delivery date, but it also assists in mitigating risks before they can occur. 

With real-time location trackers, warehouse employees can track the exact aisle for specific parcels. When paired up with artificial intelligence, it also allows for automated vehicles to retrieve a particular package without any human supervision. And tools such as smart glasses assist the warehouse workers and ensure that they spend lesser time in completing their task. Furthermore, IoT gathers data which allows for continual improvement and increased efficiency as the process continues. 

“Faced with the acceleration of e-commerce and new consumer demands, the automatization of logistics warehouses is an essential response to handle growing flows in an ever-shorter timeframe,” says Philippe de Carné, executive vice president, Business Development, Innovation & Business Excellence at global supply chain operator GEODIS, which has about 50 automated sites worldwide.

“The arrival of increasingly autonomous intelligent robots and a constant search for competitiveness are paving the way for increased automatization,” notes Antoine Pretin, vice president of the GEODIS Engineering Group. “Such solutions provide great leverage to improve performance and assist in order preparation in e-commerce warehouses, reducing repetitive tasks, but also gaining quality and reactivity.”

MORE BENEFITS IN SUPPLY CHAIN MANAGEMENT

IoT devices help plan and change transportation routes by considering any accidents or delay-causing occurrences along the way. Thus, it allows for optimal path while developing contingency planning and getting to the cause of delays. 

In terms of increasing operational efficiency and reducing operating costs, IoT SCM platforms exponentially increase the speed of supply chain efficiency. The IoT helps reduce feedback cycle, allows quick decision-making, mitigates risks and improves goods-locating efficiency in the warehouse. 

Connected platforms are easily accessible and faster than on-premise systems. With a cloud-based IoT system in place, supply chain managers can ensure that all concerned stakeholders can access important information. Furthermore, a connected IoT service can give insights for particular scenarios, thus helping the workers throughout the supply-chain process. 

IoT also gives a detailed insight to supply chain managers on goods turnover. This assists the managers and retailers estimate how many units of each product they need for shelving. It also increases accuracy by avoiding human error and helping in the identification of packages, while also avoiding financial overheads that are otherwise incurred in the form of time and money. 

Bethesda, Maryland-based aerospace and defense contractor Lockheed Martin recently signed an agreement with SyncFab, a Silicon Valley distributed manufacturing platform, to streamline supplier capabilities across Switzerland. How? SyncFab will provide Lockheed Martin with direct access to its parts procurement and secure supply chain platform that connects Original Equipment Manufacturers to members of Swissmem, which represents Switzerland’s mechanical and electrical engineering industries. 

“SyncFab is honored and privileged to work with Lockheed Martin in our mission to expand access and digitally transform Swiss Industrial Supply Chains in partnership with Swissmem,” said SyncFab founder and CEO Jeremy Goodwin, who bills his company’s platform as the first Supply Chain Blockchain solution for parts suppliers and buyers. 

The platform works as a “matchmaker” between OEMs and SMEs, enabling SMEs to compete for long-term supply chain opportunities with large international companies. This platform has already helped mechanical engineering and electronics firms in the U.S. provide products and services to large OEMs, including electronics, aerospace, automobile, medical technology, and renewable energy.

Other top defense suppliers such as Thales, RUAG and Mercury have joined the SyncFab platform consortium as has the Cleveland, Ohio-based National Tooling and Machining Association (NTMA) and its more than 1,400 SME supplier members.

IoT also allows for sorting data and determining patterns to indicate potential reasons for improving or hindering the profitability of the goods. It helps supply chain managers and retailers segment the goods according to the target audience. Thus, businesses can better understand which product is preferred by which particular segment of customers. 

Perhaps the one to put it best about IoT’s growing and important role in supply-chain management is Bill Berutti. He’s the CEO of Troy, Michigan-based Plex Systems, whose cloud-based Smart Manufacturing Platform assists with manufacturing execution, ERP, quality management, supply chain planning and management, tracking, Industrial IoT and analytics. 

“Smart manufacturing isn’t something that will happen years down the road,” Berutti says. “It’s real, it’s imperative and it’s happening now.”

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A Certified Information Systems Security Professional (CISSP) specializing in network and IoT security, David Smith has written for Cybersecurity.att.com, Staysafeonline.org and Eccouncil.org. Learn more at thesmartcardinstitute.com.