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Planning for Survival in the New Normal

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

Planning for Survival in the New Normal

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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.”

_______________________________________________________________________

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.

demand planning
Archives, Global Logistics, Global Trade Daily, Warehousing

Demand Planning: What It Is and Why It’s Important

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Demand planning has evolved to be an integral function of business over the past decade. It addresses the major concerning issue of matching the demand while avoiding wastage. In this article, we will try to cover everything important related to demand planning and why has become so important for business. Before we delve into the details of demand planning, let us understand the concept of demand planning vividly.

Demand Planning: Definition and Concept

As the name suggests, demand planning refers to planning the stock against the forecasted consumer demand. It is a cross-functional process that enables businesses to always have the necessary stock of products while minimizing excess inventory and avoiding supply chain disruptions. It is a continuous process that forms an important function of a business. The constant improvement in technology has made this business function possible. However, its accuracy is still not dependable.

Demand Planning Vs. Demand Forecasting

Often the two are used interchangeably but they differ in their scope and function. Demand forecasting is only a part of the supply chain demand planning process. Demand forecasts are usually done for a specific period of time that varies for different organizations. The demand forecasting process lays the groundwork for the crucial process of demand planning.

Demand Planning: Process

Demand planning is done through close observation of sales, seasonality data, historical sales, and consumer trends. This assessment enables the business to meet customer demand in an efficient manner. In order to achieve accurate results, businesses use statistical forecasting. In statistical forecasting, statisticians use historical data to generate supply chain forecasts using various advanced statistical algorithms. Data-backed forecasts in demand planning help to avoid stock-outs or overstocks while ensuring customer satisfaction.

Each business has different demands and hence demand different algorithm. In order to select the best algorithm for a business, the statisticians have to try different algorithms to see which forecast is more accurate by reviewing each model’s accuracy and bias measures. With the help of statistical forecasting, demand planners can easily identify outliers and exclusions that are based upon user-defined parameters that include standard deviation or the interquartile range.

Demand Planning: Significance

The most important function of demand planning is to strike the right balance between customer demand and stock inventory. This is imperative for delivering customer satisfaction and thereby filling the sales funnel of the business. Although the function of demand planning is very crucial, it is very difficult to achieve accurate results. The complexity associated with demand planning is due to the fact that it requires coordination across the entire organization.

Excess inventory not only blocks the working capital of the business but also adds inventory carrying costs that could otherwise be utilized towards buying fresh stocks or developing the technologies used in the business. On the other hand, a shortage of stock supply can lead to backorders, hasty buying of costly raw materials, and most importantly a bad image of the organization. Shortage of stock is one of the most prominent causes of customer dissatisfaction that can adversely affect the goodwill of the organization.

Demand Planning: Procedure and Best Practices

Demand planning is as complex as it is important for the business. It is a multi-level process that involves speculation and good analytical skills. To make you understand things better, we have broken down the entire process into simple steps.

1. Defining and Collecting Relevant Data

The first and most important step is understanding the data that would be relevant in forecasting the demand. The data is subjective to the nature of business and the scope of its operations. For this, the planners discuss the data with the internal sales and marketing team about the timing of price changes, marketing campaigns, and promotions that could affect demand.

2. Utilizing External Data

Now that your internal database is ready, the next step is to collect the relevant external data. The external data could include metrics regarding the recent performance and delivery timelines of suppliers and distributors and the latest purchasing habits of your key customers. Other factors include the economic conditions that can have a bearing on the demand and sales of your product.

3. Analyze Demand Forecast

After collecting and analysing the internal and external data, professionals decide upon the most appropriate forecasting model that is relevant to your business. After a model is decided, the next step is to determine how much inventory is needed to fulfill the forecasted demand.

4. Measure Results

The final step is to measure the results against the forecasted demand. This step is very important to ensure that you are able to plan the future forecast accurately. For measuring the results, demand planning professionals identify the Key Performance Indicators(KPI) that help you determine the efficiency of your planning.

Your Takeaway

Now that you know the importance and other nuances of demand planning, it is just about time that you invest in a good team that can ensure a smooth flow of supply.

B2B
Archives, Commentary, Global Trade Daily

B2B Customer Behavior is Changing. What Should Marketers Do?

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If there’s anything the last decade has taught us—and that the COVID-19 pandemic punctuated in grand fashion—it’s that businesses must get digital, or they may become invisible. Branding—once an exercise that involved plastic signs, billboards, and newspaper print ads—has now firmly taken up residence in the world of bits, bites, smartphones, wearables, and, occasionally, a desktop computer.

The digital transformation—already fully ensconced when we dropped the ball in 2020—picked up considerable steam in the last year or so. Today, forward momentum in the digital strata is not just required—but mandatory—to assure business growth, especially in the B2B arena.

Customer behavior is changing

About 15 years ago, the one-two punch of social media and email campaigns entered the picture – and established a new method of showcasing your expertise as a means of getting people to look in your direction. Post Covid-19, a McKinsey study on B2B buyer preference showed how much of each phase of the buyer’s journey is being done online in a self-service way. The punch line: there has been a dramatic change in consumer behavior over the past 3 years.

In the research/education phase, there has been an 85% increase in the preference for B2B buyers to conduct their research online. In the evaluation stage, the results are even more dramatic: a whopping 238% increase in buyer preference for self-serve looking for information on the companies’ website.

The implications for a B2B marketer are huge. Now they must literally compete online, providing the information for which buyers are looking, and they need a comprehensive content strategy to win.

Learn how customers want to interact online

What the past decade taught us—and what COVID reiterated in the past couple years—is that the conversation around digital goes far beyond just plain awareness. In fact, the businesses that are the best at digital branding have constructed a lead generation machine around these capabilities. They’ve taken the knowledge of clients’ needs and wants and translated it into an incubation device that effectively appeals to this group.

So, what are some of the ways that you can change the thinking within your business to improve the success of your digital branding efforts? Here are four critical elements every marketer should master:

#1 Know The Decision Makers

In B2B in particular, you’ll often find multiple decision-makers involved in the buying process. That’s OK. This simply means  we have to appeal to each of their “decision journeys.” We have to understand their challenges and obstacles, whether they are a CFO or an engineer, etc. Invariably, they will have different selection criteria, success metrics, and the like.

#2 The “Amazon” Effect

With so much buying activity across the digital space during COVID, a remarkable thing has happened. Now, even B2B buyers want the same type of information and transparency in their professional lives as they get when they make personal purchases from Amazon. These buyers give a thumbs-up to live chat and clear, concise information; and a thumbs-down to having to dig for information, deal with technical issues, and to overly complex websites.

#3 Big M, Little m

It’s time to draw a solid, unbroken, line in the sand. Marketing today—with a capital M—relates to what we’ve mentioned here: real insights and strategies that will drive new business and grow your company. No longer is it satisfactory to lean on “little m” tactics, like pretty pictures that look gorgeous but say nothing.

#4 Marketers: The Business Development Rep’s Best Friend

No longer should marketers consider themselves an ancillary resource to more sales-oriented folk; they should take hands-on responsibility to ensure that their activities drive as many qualified leads to business development as possible. As important is to be in close coordination with business development so the leads that come in get the attention they deserve! Research shows that up to half of sales go to the partner or vendor that responds first. In the past, we’ve done a great job, as marketers, of saying we are experts, but then throwing the ball over the fence to business development. That’s an old way of doing things; now, we should be aligned and attached at the hip as we jointly journey further and further into the funnel. This includes being aligned on the funnel metrics that are used to measure efficacy and success.

Bottom Line

Time is of the absolute essence in today’s marketplace, and you must find that extra gear to operate your digital branding machine.  When you decide to turn on your digital machine, you need to know exactly what you’re looking for and to be ready to respond.

So, how is your company’s digital brand presence? Are you relevant or invisible? If you want to know, a digital audit—to see how your company stacks versus the competition—is a great place to start, and we are ready to help you.

___________________________________________________________________

Adriana Lynch is a Partner and CMO with Chief Outsiders, the nation’s fastest-growing executive-as-a-service company.

WMS supply chain
Archives, Global Logistics, Global Trade Daily, Warehousing

How SOLOCHAIN WMS Can Enable Your Growth Strategy

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Successful growth strategies require technology-enabled innovation. Manufacturers can look at various technologies to automate operations, improve efficiencies, and scale more efficiently throughout the entire supply chain. A WMS is one technology that can help manufacturers transform their warehouse or plant operations to scale for growth. 

A good WMS will provide real-time inventory visibility and create new efficiencies within inbound, warehousing, manufacturing, and outbound processes. SOLOCHAIN WMS combines warehouse management and manufacturing execution system capabilities to deliver a cloud-based, flexible platform with features and capabilities to enable efficiencies and support operational excellence.

Inbound Processes – Improve Receiving, Inspecting, and Put-Away of Inventory

The goal of a WMS is to reduce the number of steps in a process and the touches or movements of inventory. During inbound processes, SOLOCHAIN WMS optimizes inventory receiving.

-SOLOCHAIN WMS enables cross-docking by receiving, creating the picks, and staging the inventory to ship out within a cross-dock zone without putting the inventory into overstock or pick locations within the warehouse. Cross-docking can help move products more quickly based on sales orders and reduce overall handling and movement of inventory.

-Put-away logic in SOLOCHAIN WMS can help workers put inventory in the best or right location when it enters the warehouse. This is important for frozen, refrigerated, and other goods to ensure it is in the proper place. Likewise, put-away logic can bring additional efficiencies if it makes sense from a logistics standpoint to allow forward pick locations to be topped up during the receiving process while still respecting FIFO/FEFO rotation. Put-away logic will help optimize the picking process and improve inventory turnover.

Warehouse Processes – Improve Inventory Control, Accuracy, and Movement of Inventory

SOLOCHAIN WMS can improve inventory control and accuracy within warehouse processes and make inventory movement more efficient and productive.

-Cycle counting within SOLOCHAIN WMS allows for inventory control and accuracy. Inaccurate inventory is one significant way businesses lose revenue. A strong cycle counting process gives a warehouse an ongoing measurement of inventory accuracy while reducing stock shrinkage and shutdowns and the ability to identify out-of-sync inventory or mistakes more quickly.

-Warehouse movements are managed in SOLOCHAIN WMS. These can include put-away moves, replenishments, pre-emptive replenishments, manual moves, and picking. To improve operational efficiency within the warehouse, task interleaving can reduce deadheading and maximize travel time. For example, a forklift operator will complete the next closest task based on their location in the warehouse – it could be a pick, a cycle count, a replenishment, etc.

Manufacturing Execution Functionality – Support Kitting, Multi-Stage Manufacturing, and Recall Reporting

Unlike many WMS, SOLOCHAIN WMS has MES functionality built into the platform to give businesses real-time visibility and traceability throughout the supply chain.

-Kitting or multi-stage manufacturing processes can be managed with SOLOCHAIN WMS to produce finished products. The warehouse becomes connected with the production floor to ensure a consistent material flow.

-Traceability and recall reporting is made possible by SOLOCHAIN WMS. Throughout assembling or producing a finished product, detailed information about each material used is tracked, including lot numbers. As a result, manufacturers can trace forwards and backward. For example, if there was an issue with a single ingredient, the manufacturer can trace all finished products where it was used. Alternatively, if there was an issue with a finished product, the manufacturer can also identify all raw materials used to produce the good. Real-time traceability allows for recall reporting in instances where there are product issues. This functionality is ideal for industries with traceability regulations such as food, cosmetics, and nutraceuticals.

Outbound Processes – Manage Order Types, Fulfill Efficiently, and Meet Customer Compliance Requirements

As customer buying behaviors have shifted significantly, businesses strive to enable new channels to support customer needs, such as eCommerce and omnichannel experiences. How efficiently outbound logistic processes operate is critical to success. Outbound processes managed within SOLOCHAIN WMS are flexible and highly configurable.

-Multiple order types are managed within SOLOCHAIN WMS, and the solution looks to optimize the picking process for the specific order type. A warehouse can fulfill orders for direct eCommerce, omnichannel, and traditional wholesale more efficiently as WMS will direct the pick from the most efficient location. For example, if a large pallet quantity is in the order, the WMS may suggest picking the oldest pallets from bulk overstock rather than from forward pick locations. Likewise, customer compliance requirements can be generated through SOLOCHAIN WMS.

-From a shipping perspective, SOLOCHAIN WMS can be integrated with a TMS system. If the WMS is integrated with the TMS system, the platform can further optimize the picking process. For example, SOLOCHAIN WMS can wait for enough case quantities to create a picklist that will pull a full pallet shipped out by UPS. The UPS shipping labels are printed and applied in sequence during the pick creation as the worker picks the product. With a whole pallet of product, the worker can move and load it onto the UPS trailer versus taking it to a packing station.

The core capabilities of SOLOCHAIN WMS optimize processes – inbound, outbound, manufacturing, warehousing – and accurately capture data and use it to enable new efficiencies. To learn more about the features and capabilities of SOLOCHAIN WMS, download the Gartner Magic Quadrant for WMS Report today.

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About Generix Group

As omni-channel driven demands become the norm, with resulting customer satisfaction harder to achieve, supply chain professionals need to leverage advanced WMS technology to keep their operations nimble, efficient, and scaling – especially in these volatile times.

Given Generix Group’s completeness of vision and ability to execute, as recognized once again by the Gartner analyst community, their SOLOCHAIN WMS is well positioned to help companies needing a modern, flexible and agile solution that can easily adapt to their changing needs. We invite you to contact us to learn more.

This article originally appeared here. Republished with permission, 

logistics
Archives, Global Logistics, Global Trade Daily, Warehousing

4 Effective Tips for a Successful Logistics Business Model

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People who move around rely on logistics companies to bring them to a new city, new life, and new goals. Likewise, businesses count on logistics companies to deliver goods and services to specific places.

A reliable logistics company will move, track and deliver everything timely, prioritizing the customer’s needs. The goal is to provide logistics services efficiently. Fortunately, renowned logistics companies have steady business models and experiences for smooth transportation.

Moreover, the logistics sector is fast-growing. Better still, it’s booming in the online marketplaces, thanks to the growing e-commerce business. Besides, every business has to deal with the supply and delivery of its products and services. Now, logistics companies know no borders as they transport things globally.

Because it’s a highly demanding sector, how can you make the business model successful? Read on.

What Makes the Logistics Industry a Good Investment?

Undeniably, the growth of the eCommerce sector is also causing the rise of the logistics industry. Also, the startups are now providing B2C supply chain services to online stores. Better still, the logistics sector is becoming a steady investment plan for most B2B investors.

Thanks to technology, it’s becoming easier for the logistics industry to meet the high distribution demands. So, investors are not having second thoughts on sowing to reap abundantly from this industry.

Practical Tips for a Successful Logistics Business Model

With a few practical tips and tricks up your sleeve, you are set to succeed in your logistics business. Check out below some ways that will improve your logistics business productivity.

Automation

Today, technology relies on the digitalized world. Automation is the fundamental drive for improved efficiency in a company. Also, automation is an essential aspect of business process optimizations.

The logistics industry is rapidly becoming technology-compelled. Fortunately, there are valuable ways a company can use to improve its efficiency for success. A business website is among the best ways to automate your business model. a website developer will incorporate various software to make processes flow smoothly.

However, a good and effective website relies on web development and design. Irwin Hau, the Chromatix CEO, says they make websites that offer credibility for businesses to attract new clients. “With a no-nonsense data-driven approach, our knowledge of UI & UX coupled with human psychology techniques and conversion analytics means that we can guide our clients with tangible facts to make the best and most accurate decisions,” the Chromatix CEO stressed.

Besides, automating a logistics company is to expand and reach new heights.

Aside from a website, reliable business process software will streamline the processes by:

-Offering punctual updates about the movement of products

 –Being part of track movement

 –Build transparency

-Allow safety network

-Offer good customer experience

-Boost proficiency in the management process

Moreover, tracking business software provides valuable details for the client and operator on:

-Goods released from the supplier

-Procurement of products from the warehouse

-Arrival and delivery of the goods

This way, the business saves time because of no use of manual procedures. Besides, automated tracking also provides an accurate response, which improves general process management.

Automation makes it effortless to organize and manage account and employee details through software. Ultimately, a logistic industry needs to embrace automation to increase productivity.

Proper Planning

For any management to thrive, a proper planning structure is vital. Planning involves many factors, for instance, procurement, storage, and delivery. Still, costs, time, and transportation fall under the planning structure.

A logistics operative should understand how to create the flow chart for the entire operation. Good planning targets to accomplish maximum work in the shortest time. Still, the planning aims to get more profits in the shortest time.

Moreover, a good logistics management plan needs an experienced manager. This way, the manager will plan and prepare for unpredictable circumstances. Such unpredictable circumstances can affect:

-The products,

-Lack of transportation,

-Any internal problem in the company, and 

-Research and choice of the suitable freight.

Still, a backup plan is necessary to handle emergencies. With this plan, the company needs to put it in place to prevent any logistics failure. So, no logistic planning is effective if it lacks a ready emergency plan.

Good Relationships

The team is the backbone of any organization. The steady growth and success of a business are the team’s sole responsibility. Everyone has a role in a logistics company, from the delivery driver to the warehouse manager. Everyone should be perfect in their duties for excellent productivity.

It would be best to offer proper training for employees to enable work efficiency. So, going for regular training workshops will update employees with the newest trends in the industry. In the end, there will be improved work and management efficiency. There’ll also be better customer experience and satisfaction.

It’s normal for plans to fail sometimes. But, don’t panic! Such situations call for a sensible and reliable person to handle the issues with caution and efficiency required. That’s why a logistics manager is an essential asset for the organization due to their flawless interpersonal skills.

Better still, if the manager has valuable, authoritative contacts in the industry, it means opening business opportunities for the organization.

Warehouse Management

Good warehouse management plays a fundamental role in effective logistics management. In the warehouse, the operations planning and structure vary with the different products they handle.

Additionally, the delicate handling of perishable goods like meat and dairy products will require refrigeration facilities. Grains last longer since they are in an open environment.

Equally, the conditions of operations and management of the warehouse rely on the type of goods available. Therefore, a good warehouse must ensure minimum waste of goods by developing correct warehouse inventory.

Maximizing the storage capacity in the warehouse is crucial. Installing vertical storage columns is a good use of the space. Besides, bulk storage can make a space disorganized and time-consuming.

Remarkably, a software application arranges the products chronologically for easy and quick access when needed. Hence, it would be best to train all relevant staff for the warehouse software operations.

Final Word

Using the above practical tips for a successful logistics business model gives the organization an edge against the competition.

These tips will enable process optimization to improve logistics operations. Also, it makes the logistics management processes more effective.

digital experience
Archives, Commentary, Global Trade Daily

How to Enhance the Customer’s Digital Experience from Search to Sale

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Many companies were engaging in digital transformation before COVID-19 hit, doing so to meet changing customer expectations and business needs. But leaders saw the pace of their digital journey accelerate dramatically during the pandemic in order to keep up with the evolving customer experience.

One report shows that over half of consumers believe online experiences will be more important than in-person ones. With an increasing amount of shopping, buying and selling being done online, companies have to learn how to connect with customers in the digital realm and give them an experience that will make them want to come back, says Christena Garduno (www.mediaculture.com), chief executive officer of Media Culture.

“The customer experience has been revolutionized and improved through digital technology,” Garduno says. “It presents a tremendous marketing opportunity. Now the reality is that the customer experience has gone mostly digital, and it’s become imperative for companies to focus on the entire experience, which is the totality of the path a consumer takes while seeking, purchasing, and using a product or service.

“It’s every step and every touchpoint in the journey from interest to acquisition. Many companies need to rethink the different types of interactions that consumers have with them. When digital is done well across the board, it can allow your business to build its brand and long-lasting relationships with customers.”

Garduno offers tips for companies to enhance the customer experience through digital means:

-Be prepared with the right information. “Your customers are always ‘on’ in the digital world, so it’s essential to deliver the right information to address their needs,” Garduno says. “This is a big task; one person can’t deal with so many scenarios. But being upgraded digitally gives a company the technology to have a centralized knowledge platform where information can be quickly accessed.”

-Go beyond data and interact with customers. Using analytics helps you understand where users go once they land on your website or open your app. But getting customers’ opinions is crucial. “Talk to those who have been through your digital experience,” Garduno says. “Take data from surveys, emails, and social media to gather more info. Plot out a digital customer journey to highlight the touchpoints and make sure each interaction works.”

-Be consistent across all platforms. “You want your customers to experience unity across all the digital channels they use when interacting with your brand,” Garduno says. “Data needs to be consistent and interactions similar across all platforms. You need to know your brand and make sure you have it positioned so that everything online supports it.”

-Optimize for mobile. With consumers living through their phones, Garduno says it makes a lot of sense to make sure that your website, app or other materials found online are optimized for mobile. “Pay attention to page load time and ease of navigation,” she says. “People want speed and convenience.”

“It’s essential to create the best customer experience strategy for positive digital interactions with your brand,” Garduno says. “Brands that don’t adopt digital solutions will suffer. The pandemic expedited this transition to an exciting time for forward-thinking companies.”

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Christena Garduno (www.mediaculture.com) is chief executive officer of Media Culture, a multichannel brand response media agency that drives growth for global clients with innovative and performance-driven media campaigns. She is a member of Forbes Agency Council.  

amazon
Archives, Global Trade Daily, Special Reports

Washington Cannot Let Amazon Water-Down Consumer Protection Legislation

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The holiday season is a reminder that with more Americans than ever heading online to do their shopping, lawmakers must continue taking action to prevent consumers from falling prey to internet scammers. That’s why it was welcome news when Amazon recently reversed course on its longstanding opposition to bipartisan consumer protection legislation in Congress that would require third-party online marketplaces to verify independent sellers, with the goal of reducing counterfeits and stolen goods from these platforms.

But while Amazon’s public change of heart seemingly paves the way for the eventual passage of the bill, known as the INFORM Consumers Act, lawmakers must ensure that the retail giant and other tech companies do not work behind the scenes to water down the legislation and render it toothless. Counterfeits pose great harm to consumers and small third-party sellers, and Congress must pass strong, comprehensive enforcement mechanisms to adequately protect both groups.

Amazon’s decision to endorse INFORM was certainly a surprise. Just this summer, Amazon launched an aggressive lobbying campaign to kill a more robust version of the legislation. But while Amazon ostensibly supports the current bill, it has reportedly unleased its lobbyists in the Beltway to weaken it. While lawmakers such as Sen. Dick Durbin, one of the bill’s co-sponsors, say they refuse to let this happen, they should remain on high alert.

This is because we’ve seen Amazon’s playbook for publicly supporting legislation while simultaneously working to weaken it behind the scenes. For instance, Amazon CEO Jeff Bezos won praise earlier this year when he embraced President Biden’s plan to raise the corporate tax rate. But behind the scenes, the company enlisted an army of lobbyists to maintain the research and development tax credit, which has been estimated to save the company hundreds of millions of dollars a year. As I’ve said before, Bezos’s support for a corporate tax hike is meaningless if the company can continue to engage in egregious tax avoidance schemes.

And it’s not just Amazon; other Big Tech companies have resorted to similar “two-faced” tactics to weaken legislation. In April, an investigation by The Markup uncovered how some of the country’s most powerful technology companies, including Facebook and Google, advocated for mostly toothless privacy protection legislation in statehouses across the country — all with the intention of preempting state lawmakers from taking stronger action in the future.

Now with the prospect of a comprehensive consumer protection measure being signed into law, Congress must resist Amazon’s arm twisting. Counterfeits are far too serious of a threat, and watered-down legislation will fall short of creating the bold transparency measures that are desperately needed. Online counterfeiters have been known to peddle toys and children’s products, putting those most vulnerable in grave danger. These products fail to go through robust safety testing, meaning there is potential for serious health consequences.

But what many may not realize is the impact that counterfeits have on third-party sellers. As someone who works with Amazon sellers every day, I know exactly how legitimate businesses suffer when criminals sell fakes at below the market value. Small businesses are doing everything they can to fight these criminals — even if it means spending hundreds of thousands of dollars to do so.

Many of those selling fakes from the comfort of their own homes and hurting American businesses are overseas. According to the Department of Homeland Security, a staggering 85 percent of contraband items seized by U.S. Customs and Border Protection came from Hong Kong and China. Nonetheless, Amazon’s marketplace has become a hub for China-based sellers.

Amazon has no problem touting all of the measures it has taken to clean up its third-party marketplace. But, as I have explained, it’s a common tactic of Amazon’s PR department to just share the numerator — and not the denominator. Thus, the $700 million it invests to fight fraud is pennies in the bucket when you consider that Amazon’s worldwide gross merchandise volume is estimated to be $490 billion.

It is critical that Congress advances the INFORM Consumers Act as it stands today. While I welcome Amazon’s endorsement of the common-sense measure — along with the other third-party marketplaces that recognize the benefits it would bring to e-commerce shopping — I can only hope it is sincere. Working behind the scenes to weaken this bill will be devastating to the millions of shoppers and sellers who have come to depend on Amazon’s third-party marketplace.

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Jason Boyce is the author of “The Amazon Jungle” and founder of Amazon managed services agency, Avenue7Media. Previously, Boyce was an 18-year Top-200 Amazon seller.

shipping
Archives, Global Logistics, Global Shippers 101, Global Trade Daily

How to Avoid 2021 Holiday Shipping Delays

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The question of how to avoid the 2021 holiday shipping delays is hot right now. Both logistics companies and their clients want to get an answer — how can we make this work?

People got used to the fact that they can order anything they want online, and it’ll be on their doorstep in a day or two. They got fond of convenience, so the demand kept growing. However, during the last two years, we’ve seen a shift in the logistics challenges facing the industry. The waits are longer than before, and we can’t expect that they’ll get shorter during the holiday season.

Luckily, things are going fine for now. People are getting their packages, but the real rush is yet to start. So, let’s see how customers can help the retailers, and then we’ll talk about how to prepare for shipping out.

How to Get Your Packages In Time

It’s only natural that you want to surprise your friends and family during the holiday season. If some of them live abroad, you might want to send them a package to unwrap on Christmas morning and share your love that way. However, you’re not the only one thinking this way.

As we’re getting closer to the end of the year, more and more people are sending parcels. Shipping companies are busy, and you need to account for that. Let’s go over a few things you want to keep in mind if you didn’t do your Christmas shopping just yet.

First off, expect delays. We know it sounds contrary to what we’re trying to achieve, but you want to stay realistic.

Secondly, plan ahead. Of course, if there’s a chance that there will be a jam near the end of the month, send or request your packages early. If you can, there’s nothing wrong with doing it right away. You’re better off if they arrive at their destination early than late.

Finally, be prepared to pay the premium. Planning so much in advance is often tricky, especially if you have a lot on your mind. Thus, if you see that you’re already behind, pay the premium to ensure your parcel will arrive when it should.

What Can Businesses Do?

Both retailers and eCommerce companies want to boost their sales, and the end of the year is the best time to do it. If you want to bring your sales up and keep your customers happy, you’ll want to learn how to avoid the 2021 holiday shipping delays. Here’s what you need to do.

Prepare Your Inventory and Packing Supplies

Go over your books and your inventory, and think once again about what is likely to sell a lot at this time. Predict the number of orders you’ll get and make sure you have enough stock to go around.

On top of that, you mustn’t forget about the packing supplies either. No matter how many orders you get, they won’t be of much use if you can’t send the items people want to buy. And according to Murphy’s law, you’ll run out of them in the worst possible moment.

Don’t let this happen to you, and get yourself a bit more packing supplies than you think you’ll need. These aren’t that expensive – so you can afford them, and even if you end up with some leftovers, you’ll use them later.

Set Up Delivery and Return Strategies

If you want to be carefree this holiday season, you must sort out and fine-tune your shipping system. Get in touch with a reliable company and see if you can get a deal. They’ll be more than busy for sure, but if you have a few big shipments to send out, you might even get some kind of discount.

You also want to sort out your return strategy. Some people won’t like what they get, and they’ll want to return it. If you want to improve your eCommerce business and retain customers, your job is to go out of your way and make that possible.

Why Do Holiday Shipping Delays Happen?

If you did everything we talked about, you did everything you could. It’s not like you can take each package and take it where it needs to go by yourself. You’ll have to rely on transport companies to do it for you, and they’re under a lot of stress at the moment. Here are some of the factors that you can’t influence and that can make your shipment run late.

Bad weather. The weather can be unpredictable in the winter, and the shipping company can’t do anything about it. A significant snowfall certainly can push delivery dates a bit further.

A high number of shipments. As we mentioned, more and more people are ordering things online, and the higher the number of shipments is, the higher chances for delays are.

Traffic jams. They’re unpredictable and happen in a split second. So, even if delivery companies know about the existing jams, they can’t predict where the next one will happen.

And that’s all you need to know about how to avoid the 2021 holiday shipping delays. Be honest with your customers, encourage them to order early, and do your shopping as soon as possible.

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Tobi Hook is an experienced transport specialist and a freelance writer. At the moment, he’s working with City Movers on improving their processes and spreading the word about their company. He loves to spend his free time reading sci-fi novels and building model rockets with his son. 

micro fulfillment
Archives, Global Logistics, Global Trade Daily, Warehousing

LET’S GET SMALL: WHY MICRO FULFILLMENT IS SO BIG RIGHT NOW

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It’s almost hard to believe that two years have passed since the onset of the COVID-19 pandemic and its merciless impacts on the supply chain, consumer behavior and how the world conducts business as usual. There is really nothing “usual” about conducting business nowadays, particularly for fulfillment operations in a myriad of sectors now saturating the e-commerce market. 

The fact of the matter is that e-commerce is no longer just thought of for a holiday list or bargain deal that cannot be found in traditional brick-and-mortar shops. E-commerce is becoming more of a first option for some and a permanent solution for others. Grocers, retailers, department stores and beyond are feeling the full effect of the e-commerce trend and despite the pandemic, it could very well be here to stay. 

So, how does this change the way fulfillment providers conduct operations? According to KPI Solutions’ Brittain Ladd, micro fulfillment is the key to capturing lost dollars and keeping up with demand.

“About 20% of all sales today are direct-to-consumer,” Ladd shares. “Prior to the pandemic, only about 3% of grocery sales were online. And only about 6% of all retail sales were online prior to the pandemic, so we’ve seen a massive shift. Grocery retailers and retailers of general merchandise had to change their business models to keep up with direct-to-consumer demand.”

Ladd serves as the chief supply chain and marketing officer with Kuecker Pulse Integration (KPI) in addition to his position as a Forbes Councils member. KPI Solutions is the result of an integrated partnership between Kuecker Logistics Group Inc., PULSE Integration and QC Software. Known best for bringing system integration and robotics automation to a variety of sectors, KPI Solutions approaches fulfillment operations uniquely by implementing and innovating their own software to meet demand.

“KPI Solutions has partnerships with leading robotics companies, and we can install basically any system that exists,” Ladd says. “We work with some of the largest global companies to help them automate their fulfillment and sharpen their strategy to identify more cost effective and innovative ways to meet customer demand. Consumers want more speed, especially now, and a lot of analysts are confused because they fail to realize that the goal isn’t to just deliver groceries in 10 to 15 minutes, it’s to deliver apparel, shoes, electronics and other products as well.”

So, where does micro fulfillment fit? And more importantly, how can it support fulfillment operations now and in the future? Let’s start by understanding how companies–such as grocers—a re struggling beyond the surge in e-commerce. Ladd shares that contrary to the widely held belief, grocers are suffering significantly with e-commerce, as they not only spend more to fulfill these orders, but they must keep up with the labor involved in third-party services, which further complicates the process.

Keep in mind, grocery retailers are now faced with a new wave of demand and speed. Ladd shares that companies in Europe that have entered the U.S. market, such as Buyk and Jokr, are now offering “rapid grocery delivery” in as little as 10 minutes.

“On average, grocery retailers lose anywhere from $7 to $15 on every online order they fulfill,” Ladd says. “And in some cases, they can lose as much as $25 on every online order they fulfill. Most retailers barely break even on any of their curbside pickup orders, except for the product since it’s a little higher value. 

“Imagine being a retailer who is now forced into a model where they’re having to change everything they do to meet the changing demands of consumers, but everything the consumer wants them to do the retailer loses money on. That’s the challenge.”

That’s also where micro fulfillment centers and technology can not only capture these costs but turnaround the way e-commerce fulfillment is streamlined. 

Geek+, Berkshire Grey, AutoStore, and Addverb Technologies are a few of the companies that are innovating fulfillment operations through automated robotic systems. These fully automated systems reduce the chances for human errors with mobility and capability of reaching inside inventory bins quite literally to fulfill orders. Ladd shares that most of these automated solutions cost around $1.2 million to $1.5 million with a return on investment realized within 18 to 24 months, paying for themselves while re-inventing fulfillment.

“The best way I can describe it is like holding a Rubik’s cube in front of you,” Ladd says. “Each of the cubes has some type of inventory inside and sitting on top of the Rubik’s cube are robots that go back and forth and side to side reaching down and picking up these cubes and moving them from one side to another, pulling out inventory. That’s exactly what they do as a robotic picking and fulfillment system.”

Embracing technology is what comes full circle for retailers attempting to overcome the e-commerce surge. And options such as these not only fully automate fulfillment processes but keep human involvement to a minimum. Retailers are catching on and the U.S. market is now starting to see what the European market has already adopted. In fact, Ladd shared that three European companies have recently entered New York City, and they are bringing exploding growth with them.

What makes these systems even more enticing (beyond the fact that they are fully automated) is the ability to operate after-hours–or in the dark when stores are closed. Micro fulfillment centers are intelligent enough to automate the fulfillment process, but small enough that grocery retailers can install them inside their stores–completing all of the fulfillment tasks and mileage usually completed by employees. 

“These systems are quite easy for retailers to embrace and adopt,” Ladd says. “Companies including Kroger, H-E-B, Albertson’s, Instacart and DoorDash are among the more recognized brands that are exploring these innovative options and either installing these systems or exploring how to use these systems. Make no mistake, the future of retail is robotics. Retailers that don’t embrace robotics will never be able to survive long term.”

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Brittain Ladd, chief supply chain and marketing officer with KPI Solutions, is recognized as a leading expert in business strategy, supply chain management, logistics and last-mile delivery. He was one of the first individuals to research, design and recommend that retailers install micro-fulfillment centers in their stores and chains.

hauliers
Archives, Global Logistics, Global Trade Daily, Trucking

How Can Hauliers Cope With an Even Higher Demand This Christmas?

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The Christmas rush is something hauliers anticipate every year. But it’s going to be felt more acutely this year with the additional pressures of a driver shortage and Brexit affecting the supply of some goods.

The haulage sector is set to experience its busiest Christmas period on record. On top of the usual increase in demands, there’s the perfect storm of the HGV driver shortage and supply chains impacted by Brexit and COVID. By focusing on increasing efficiency and reducing empty running, hauliers can meet these higher demands and ensure their customers receive the highest level of service.

This means hauliers will need to be even more efficient and prepared in order to meet the demands of businesses and consumers this Christmas.

Here, we cover how hauliers can cope with arguably the most demanding Christmas we’ve ever experienced.

Make planning more efficient

Efficient planning is paramount to success for all hauliers, but never has it been more important than right now. A Logistics UK survey revealed that 96% of hauliers are struggling to recruit drivers, with 13% saying their shortage is severe to very severe. To meet high demands with a potentially depleted workforce, hauliers need to get the most out of their available resources.

That’s where route planning software comes in. By feeding in all the collections and deliveries you need to make, and your vehicle and driver availability, you’ll be able to plan the most efficient routes and get the most out of your fleet.

With these solutions, you’ll have one view of your business supported by real-time information. Your planners can then make informed decisions. In the hectic traffic rush leading up to Christmas, it’s critical you can identify and manage exceptions as deliveries progress because it’s undoubtedly the busiest period on the road.

Eliminate empty running

When you have a larger-than-usual task on your hands to keep up with demand this Christmas, running empty seems even more wasteful than usual. Yet, for many hauliers, this is the case on their return journeys. If your drivers travel back empty from Glasgow to Plymouth on their return journey, for instance, that’s a lot of wasted mileage.

Using a freight exchange platform gives hauliers the opportunity to not only make the most of their journeys but also serve more customers in a time of increased demands. This can help optimize fleets in the short term and also enables hauliers to expand their network to connect with new shippers. Haulage companies with loyal customers but limited resources have the opportunity to subcontract their excess work on these platforms, meaning they can still take on additional haulage loads and get customers’ jobs done.

Allow your drivers to do more in their workday

The changes to drivers’ hours, which means drivers can work up to 11 hours a day twice a week, has been extended once again to January. But we know that making already overworked drivers work longer hours isn’t the solution, especially when many of the drivers who’ve left the sector have done so due to poor working conditions.

Giving your drivers the tools they need to achieve more in their workday is a much better solution. Not only will this allow your business to be more efficient, but you’ll also improve their satisfaction by making their jobs easier. Let’s face it, dealing with paper proof of deliveries is difficult to manage and adds time to their day.

It’s these inefficient processes that can frustrate drivers, cause delays, and even result in them finishing their day later than expected. It’s no wonder that drivers are leaving businesses that aren’t addressing this problem. Using digital tools like electronic proof of delivery and apps that provide real-time details of their deliveries allows them to focus on the job and get more done in their day.