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Should Five Percent Appear Too Small? The Penny Lane of E-commerce.

taxes
Archives, Banking, Global Trade Daily, International Trade

Should Five Percent Appear Too Small? The Penny Lane of E-commerce.

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Benjamin Franklin may not have predicted the internet, but he got it right (inspired by Christopher Bullock’s 1716 insights) when he wrote that, “…in this world nothing can be said to be certain, except death and taxes”. On that note and in related news: buying that inflatable yellow submarine just got more costly! Slowly but surely, shopping from the hopefully convenient home sofa is becoming more expensive: what used to be a ‘tax-free experience’ is now a joyful web-shopping outing until the very end when you see a surprise invoice that includes taxes you’ve never heard of. That surprise now extends to Consumer to Consumer (C2C) sales that historically never used to incur taxes.

Probably not invited and (therefore?) a little late to the internet party, tax authorities found the long and winding road on how to subject e-commerce sales to sales and/or other taxes. With more than 50% of government income depending on taxes in most countries (up to 80% in some, according to ourworldindata.org) and booming internet sales (39% growth in Q1 2021 in the U.S., according to statista.com) nibbling away at that revenue, it’s a surprise that it took this long for the taxman to issue comprehensive legislation to get back to what once belonged. Over the last few years, as more tax authorities found the right tune for enforcing taxes on e-commerce (Australia, New Zealand, and the U.S. were recently followed by the EU and other countries), more and more taxes have appeared in that cute little checkout cart. It progressed from customs duties on international sales over a certain threshold to sales tax (or its local equivalent like consumption tax or value-added tax (VAT)) on B2C sales and, recently, many countries (including the EU) went all-in and now tax practically all internet transactions.

From a compliance perspective, multiple e-commerce platforms have been quick to implement tools for sellers to apply taxes. In many instances, taxes are automatically collected and submitted, with the seller only responsible for filing monthly or quarterly reports/returns on sales and taxes charged. And, as a considerable percentage of transactions are routed through a small number of major platforms (e.g., Amazon, eBay, Shopify, Magento), conducting audits is not reaching for Lucy in the sky. Compared to decentralized in-store retail sales, authorities have a relatively easy job with enforcement for online sales. Obligatory penalties and the threat of shutting down the seller—or even the site—when regulations are ‘forgotten’ make it easier to get taxes accounted for.

But what about those low-value exemptions? Glad you asked. The low-value exemption (Section 321 Type 86 shipments in the U.S.) may still apply on the customs duty portion of a purchase, or even on the local tax part, but e-commerce legislation in many countries requires the seller to charge taxes on every transaction, no matter how small—which is why a 5% tax on a $10 purchase is no longer impossible. Keep those pennies coming! For example, on that eBay purchase of some fine Portuguese stamps, the seller will either charge local Portuguese value added (e-commerce) tax or be required to register in the country of destination and charge that country’s sales/consumption/value-added tax—not good for the buyer’s wallet (especially as VAT can be as high as 25%), yet excellent for the tax authorities.

And the news for the Revenue Service is only getting better: e-commerce is projected to grow to $4.88 trillion in 2021, with McKinsey predicting growth of 8-9% annually in countries like Germany and France and 20% for countries in Asia. That adds up nicely, especially since taxes, as mentioned, are now collected on C2C transactions that were previously never taxed. Furthermore, with the e-commerce model having struck a serious chord with Gen Z, C2C growth is projected at 35% annually for the next four years (C2C e-commerce: Could a new business model sell more old goods?, McKinsey), which in total adds up to quite the lucrative revenue source. Quick note: this is different from the revenue related to the taxation of digital services, for example, digital marketing or reselling of user data.

While many traditional retailers, other than perhaps the barber showing photographs, have had to close due to the pandemic and the never-ending wave of e-commerce, the tax authorities are in a much better position than before to both collect and increase tax revenue on e-commerce and other sales—leaving them to safely count even more pennies from their own hopefully comfortable sofas.

Anne van de Heetkamp, is the VP of Product Management GTC at Descartes

Supply Chain Industry
3pls, Archives, Global Logistics, Global Trade Daily

Factors that are Reshaping the Supply Chain Industry

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In the modern supply chain, the technology and software you use are as important as your strategies. Plenty of decisions and actions you need to take now happen in the digital world. So, you must pick the right technology if you want to see better efficiency in your chain. In essence, choosing the solution you want to use can make or break your position on the global stage. Hence, technology is and will stay one of the main things that define the game. But, what are the exact factors that are reshaping the supply chain industry? Well, that’s what we’re here to find out.

Last year, COVID-19 took the supply chain to a new place, but not all in a bad way. The changes that took place opened new opportunities and created new practices for companies. We found ways to improve agility and eliminate risks, and things are only getting better.

To figure out how to make them better for your system, take a look at the key things that are transforming the industry at the moment.

Artificial intelligence

Algorithm-based decision-making software and data analyzers are being adopted in every niche, so it’s clear that the era of useful AI has arrived.

When it comes to the supply chains, among other things, AI can help you eliminate human error and reduce costs. It’ll allow you to restructure workflows, so all your workers can be more focused and productive. The technology will support them and make their jobs easier. We’ll explain how this happens a bit later.

The pace of technological change

Technology is developing faster than we can learn to use it. Let’s take eCommerce as an example. It provided people with a whole new way of shopping and took the world by storm. All of a sudden, you’re able to find anything you need and have it delivered to your door without ever having to leave the comfort of your home. Thanks to it, customer demands and expectations have changed. Now, they expect quick and even same-day deliveries. So, the logistics industry has to respond to that to stay in favor of people.

As a company, the only way to stay relevant is to build a reliable infrastructure and learn how to use new technology developments. Experts believe that online and mobile shopping will be the preferred way of buying for the majority of people in the future. Even today, people are getting everything from groceries to appliances online, so why would that change in the years to come?

To update your system, try to make your processes more streamlined. That will give you a better chance of keeping up with modern timeframes.

The Internet of things

We can’t talk about the factors that are reshaping the supply chain industry and not mention the Internet of things. Although most people will associate the term with smart home appliances, this technology is actually invented to deal with sensors and tracking equipment.

So, the IoT is what you’ll use if you want to reduce commercial warehousing costs. However, it can help you do much more than just that. With it, you can connect all the products, people, and processes within your organization and share information among them in real-time. Just like that, everything becomes streamlined, and your productivity goes up.

Automation and robotics

Of course, people have been using task-specific robots for decades in industries such as automotive. However, the latest generation of robots can learn how to do multiple tasks, so they have much more potential.

In supply chains, you can find a use case for these almost anywhere. Add AI into the mix, and you quickly realize that robots can bring many new things to manufacturing processes and reduce staff costs. With time, more and more repetitive or dangerous tasks will be performed by these.

Big Data

Big Data is used to track data and measure the performance of factories in real-time. In past times, to survey workers, you had to put an entire factory under surveillance. But today, modern sensors and networks give us insights that we couldn’t get before. You can even collect data on each and every employee if you want to. This way, you’ll spot problems much more easily and fix them sooner.

When you remove the bottlenecks in the delivery process, you’ll also improve the lives of your workers. You’ll streamline their roles, and they won’t waste time on unnecessary or frustrating tasks. If you rely on Big Data-driven decision-making, you’ll create a leaner business model and reduce wastage.

3D printing

If we’re talking about prototyping new products and designs, there isn’t a tool as useful as 3D printing. Companies that invested in it say that they managed to halve their prototype production times, and that’s a huge thing. If you have to wait for weeks until you get parts to start working, that creates problems right down the supply chain. It lengthens the process and increases the costs. On the other hand, 3D printing alleviates supply chain weaknesses that already exist.

Use it, and you can apply design iterations to the molds within hours. So, you’ll be speeding up the process and encouraging the closer engagement of product designers and the manufacturing team. And for that, 3D printing is one of the factors that are reshaping the supply chain industry.

Factors that are reshaping the supply chain industry – delivered

Incredible advancements in technology are at the root of all factors that are reshaping the supply chain industry. If you fail to incorporate them, you will fall behind. Therefore, follow the latest trends and introduce the changes that will streamline your processes, make your business functioning more efficiently and productive.

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Deon Williams is a freelance writer with a degree in systems engineering. Although it’s not his main job, he loves to write articles and share his expertise. In the past, Deon helped companies like zippyshelldmv.com to streamline their processes and increase their earnings. When he’s not working, he loves to read in his comfy chair and play basketball with his two sons. 

logistics
Archives, Global Logistics, Global Trade Daily, Warehousing

What Does 2022 have in Store for the Shipping & Logistics Industry?

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The word logistics derived from the French term ‘logistique’ originated around 1830 in the military and is referred to as the movement of supplies and equipment in the war field. 

In layman’s terms, logistics is the overall process of managing how resources such as equipment, inventory, food, liquids, materials and people are acquired, stored and transported to their final destination. 

The logistics industry which was valued at $7,641.2 billion in 2017 plummeted to $5,200 billion in 2020. The COVID-19 pandemic was mainly responsible for this massive slowing of logistics activities across the world. 

While some industries struggled badly during the pandemic, many industries such as the daily essential goods industry, e-commerce, healthcare and pharmaceuticals affected the logistics industry positively. With the COVID situation easing gradually and the world getting back on track, the logistics industry is projected to reach $12,975.64 billion by 2027. 

In the year 2022, the logistics industry is predicted a bright outlook and several new trends are expected to dominate the industry. Let us discuss some of the top trends that will determine what is in store for the logistics industry in 2022.


Micro Warehouses and Last Mile Logistics

More micro warehouses are likely to be the trend in 2022. Micro warehouses are dedicated small warehouse spaces focused on moving inventory closer to the customer, especially in densely populated urban areas. It results in faster and efficient last-mile logistics to cater to the increasing demand for same-day and next-day deliveries.

Micro warehouses may not be well suited for products that need to be kept in a climate-controlled environment such as food, beverage and pharmaceutical products. But for common consumer goods and apparel that require minimum special handling, micro warehouses are a great fit.

Increased demand for 3PL and 4PL services

Due to the phenomenal rise of e-commerce, increased demand for 3PL (Third-Party-Logistics) and 4PL (Fourth-Party-Logistics) services are expected.

According to a report by Allied Market Research, the global 3PL market is expected to reach $1.1 trillion over the next six years. 3PL companies that provide warehouses in multiple locations will be more in demand as that would result in efficient last-mile logistics. 

3PL and 4PL offer numerous advantages such as being a cost-effective, faster and responsive model. It does have a few disadvantages too, such as lack of direct control and increased dependency of the manufacturer on the logistics provider. In case of any discrepancy, the blame will be on the company and not the logistics provider. 

But the advantages outweigh the disadvantages and 3PL and 4PL services are expected to be increasingly in demand.

Big Data and IoT

In these times when excessive data can mind-boggle us, Big Data by its sophisticated and predictive analytic methods uses this complex set of information and forecasts the likelihood of possible events. 

Some of the immense benefits of Big Data to the logistics industry are:

-Reducing inefficiencies and helping to make informed decisions

-Predicting things such as, which mode of transportation and carrier to use to maximize profits and meet delivery schedules

-Forecasting demand with more accuracy by understanding customer buying cycles

IoT (Internet of Things) is interconnecting devices and physical objects with embedded sensors, to allow a continuous exchange of data over the internet.

IoT will be increasingly used by the logistics industry to offer innovative solutions to their numerous challenges. Some of the benefits are:

-Increased operational efficiency 

-Enhanced visibility into assets such as the location of vehicles and condition of cargo

-Increased security and real-time notification of missing or stolen assets

-Ability to predict the exact time of delivery leading to enhanced customer satisfaction

While the advantages are plenty, the application of Big Data and IoT in logistics can be intimidating for traditional players, prove costly in its initial deployment and may need additional training of personnel. 

But as the technology will mature, it will gain more traction and such technologies will become commodified. Business owners of all sizes can then easily adopt and reap its benefits.

Automation and Technology

Automation according to the management consulting firm McKinsey, will be among the top agenda for the logistics industry, owing to three factors: increasing demand from online retailers, a growing shortage of labor mainly in the US, and intriguing technological advances. 

Fully automated high-rack warehouses with autonomous vehicles patrolling the aisles would be more commonplace. Managers equipped with AR (Augmented Reality) glasses would ensure full visibility of the entire operations and coordination between robots and humans. 

By 2030 it is estimated that most logistics operations could be automated with AI taking over the repetitive and simple tasks performed by humans earlier.

Specialized Staff

The skillset required by people to work in the logistics industry will change dramatically. 2022, will demand staff well aware of the latest technologies. 

Some of the most sought-after profiles will be of experts in areas such as process automation, big data and AI. Those who could develop intelligent environments with the use of IoT would be highly valued. 

The globalization of the workforce is another trend since the majority of manufacturers will have multi-country operations. Due to the lack of labor in many countries such as the US, outsourcing logistics jobs could be very well a trend.

Green Logistics

Environmentally responsible practices are the need of the hour for all industries including logistics. Green logistics is one such trend that will be increasingly adopted by the industry.

The ways by which logistic companies can adopt green logistics are:

-Eco-friendly warehouses that use timers to gauge and monitor the usage of resources such as electricity, heat, water and gas in their facilities

-Electric and solar-powered vehicles

-Biodegradable packaging

-Using software to calculate the carbon footprint

Blockchain

Blockchain is the much-talked-about method of storing and transferring information in which the record of the transaction is maintained across several computers that are interlinked. 

The logistics industry, by using blockchain can integrate all the components into a single platform. This would enhance visibility as logistics providers, carriers, shipping lines and others in the value chain can use the same platform. Payments and invoicing can also be made from the same system. 

The benefits include: updating customers and companies of the product journey, identifying problems before they occur and unparalleled data protection.

Robotics

Robotics continue to be used increasingly in the logistics industry and is expected to remain among the top trends in the future as well. 

Many companies are increasingly using drones to make deliveries of smaller products. Driverless vehicles are also likely to become more and more common. 

Robotics can improve the productivity of the logistics industry drastically by speeding up monotonous and labor-intensive tasks. It does not intend to replace humans but by delegating repetitive tasks to machines, humans can focus on other higher-value tasks.

Conclusion

The future of the logistics industry looks buoyant, given the phenomenal rise of eCommerce and the increasing trend of online shopping. The aftermath of COVID-19 has also been instrumental to fuel the growth of logistics and international shipping.

The logistics market by end-use is projected to be lucrative for most segments and Healthcare is expected to top the charts.

To remain competitive and efficient, the industry players need to continuously upgrade in terms of processes and technology. The adoption of trends that are expected to dominate the industry in the future, such as the ones we discussed will become necessary for the industry players to sustain and flourish. 

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Tim Robinson is Digital Marketing Manager at PACK & SEND, a 25+ years old and respected brand in ecommerce, logistics, and freight delivery solutions. Tim has 20 years of combined experience in sales and marketing. Logistics, D2C, franchising, business planning, and operations management are his core expertise. Connect with Tim on LinkedIn.

POS terminals
Archives, Banking, Global Trade Daily, Special Reports

5 Notable Trends Driving Global Retail POS Terminals Market Forecast

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Consumer preference is shifting towards electronic payment systems. A growing emphasis of governments across the globe towards a cashless economy will primarily drive the retail POS terminal market expansion in the forthcoming years.

Reportedly, the global non-cash transactions increased about 14% between 2018 and 2019 to reach 708.5 billion transactions. In which the volume of cashless transactions in the Asia Pacific accounted for 243.6 billion in 2019. A surging number of non-cash transactions globally will complement the high adoption of POS terminals across retail shops.

According to a Global Market Insights, Inc., analysis report, global retail POS terminals market size is estimated to surpass US$45 billion by 2026. Below mentioned are some key aspects of a cashless payment system driving its demand among customers.


Growing preference for electronic payment cards

High usage of alternative forms of physical currency such as electronic payment cards, which includes ATM, debit, and credit cards would positively influence movements of cashless economy in the Asia Pacific and Europe region. Cash-based transactions have certain disadvantages and inconveniences, mainly in terms of security, irregularity in counting, and others.

On the other hand, retail POS terminals render advantages such as swift purchase transaction, consistent pricing, high reliability & durability, and others, as compared with other traditional payment systems. On account of such benefits, POS terminals have been increasingly deployed across small and medium-sized retail stores.

mPOS terminals in out-of-store transaction

The mPOS terminal segment is expected to witness considerable growth in the upcoming years, due to its mobility and ability to provide secure transactions in out-of-store environment. The product is widely utilized in local retail shops, flea markets, events, and tradeshows to easily process a large amount of sales transactions and reduce transactional time.

The escalating security concerns pertaining to data privacy due to the rising incidences of cyberattacks will impede the retail POS terminals industry growth to some extent. Also, the high cost of deploying these systems on a large scale could slow down its adoption rate in retail shops.

Software applications in POS terminals

The software segment in the retail POS terminals industry is projected to grow significantly by 2026. The software used in POS terminals stores transactional records of consumers which further helps in monitoring their buying behavior and shopping trends.

These features further aid retailers in enhancing customer experience and escalate sales. Additionally, the integration of sophisticated technologies including the Internet of Things and advanced security software protects the crucial data of consumers.

Robust demand in supermarkets

The hypermarkets and supermarkets segment will expand exponentially in the forthcoming years owing to the presence of a well-organized retail sector across the globe. The introduction of customized POS terminals provide real-time dashboard options and detailed users’ profile. It helps in classifying their preferences and brings more value to the customers. These features also enable large-scale retailers to organize their workflow and propel sales and profits.

Growing cashless economies across APAC

The Asia Pacific retail POS terminals industry is expected to experience substantial growth trends owing to the evolving retail sector in countries like India and China. The recent economic reforms in India such as demonetization have tremendously boosted consumer preference towards cashless transactions. The regional manufacturers are emphasizing on introducing QR code-enabled devices to accept payment through other cashless mediums, which will eventually complement the regional industry landscape in the upcoming years.

PAX Technology, NCR Corporation, NEC Corporation, Ingenico SA, and VeriFone Systems, are the prominent companies functioning in the global retail POS terminals industry. The industry expansion is majorly attributed to the growing demand for technologically advanced systems offering features like gathering customer information, payroll data, and inventory management.

The integration of highly secured software and other advanced technologies in retail POS terminals and the government support to encourage the utilization of electronic payment systems will positively impact the industry growth.

outsourcing
Archives, Commentary, Global Logistics, Global Trade Daily

More Companies Choose To Outsource – Here’s Why You Should Too

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When it comes to outsourcing, businesses take different approaches based on their goals. Some focus on increasing efficiency, some on lowering the cost of their products or services. whatever the reason may be, outsourcing is becoming more popular than ever due to its many benefits. In this post, you will learn what outsourcing is and why many businesses outsource certain operations, especially on the logistics side of operations.

What Is Outsourcing?

In business, outsourcing is the practice of contracting an external company or organization to provide a product or service that the firm itself would otherwise produce. It has been associated with job moves overseas in recent years, though this is not always the case. Outsourcing can be done in other companies within the same country and isn’t always for fiscal reasons. For example, one of the most famous forms of outsourcing can be seen with Amazon’s Fulfillment by Amazon program. In essence, online retailers will outsource their logistical needs to Amazon to focus on their core business rather than handling packaging, deliveries, and refunds. This is just one form of outsourcing.

Many businesses are finding that they need to use sophisticated technology to scale their business to new heights. However, this is often easier said than done. For instance, if a company is looking for a fully equipped remote IT support service, they might outsource this to a company that understands this topic deeply instead of setting up new technical departments and hiring a raft of new staff. In this instance, choosing a company experienced in this sector makes financial sense and makes practical sense in that they want it done by a business that understands the task. In light of the above, what are some of the biggest benefits of outsourcing certain aspects of a company?

Businesses Can Focus On Your Core Business

One of the primary reasons many businesses outsource is to focus on the things that make them money. By looking at the earlier example of Amazon, you can see the benefits an online retailer has when outsourcing their logistical needs to another company (especially one as far-reaching as Amazon). Logistical operations are hugely complex, time-consuming, and costly if incorrectly handled. Therefore, this leaves only two options for most businesses:

1. Hire and train new staff

2. Outsource

Although hiring new staff may be cost-effective for large multinationals, many SMEs simply cannot afford to invest the time and money in such a task.

Technology Is Accessible Without The Investment

Operations like supply chain management and logistics often require significant investments in specialist technologies to facilitate smooth and accurate operations. Similar to why you choose not to hire and train new staff, many SMEs do not have the resources to invest in the technology needed to perform these complex tasks. Furthermore, logistics is often only a certain percentage of business operations, so directing resources in technology that you will only use a certain amount of the time is unfeasible. Outsourcing this part of your business to a business devoted to it entails paying a fair amount for them to manage this part of your business and invest in the technology required for successful completion.

It Can Improve Customer Satisfaction

Continuing the e-commerce example, it is clear that outsourcing the delivery of goods facilitates a higher level of customer satisfaction. For example, no matter how much you strive to make customers happy, it is inevitable that some items will be faulty (especially if you have a high revenue). In these cases, it is good practice to simply ask your customer to return the product and provide them with a replacement or a refund. Even though this sounds straightforward, it is fundamentally a loss-making activity you’d rather avoid and instead focus on the profitable side of the business. If said e-commerce business had outsourced this task to a logistics company, they would be responsible for returns and replacements, thus allowing the business to focus on its core activities while maintaining a happy customer base.

Reduced Liabilities

While this point is aimed explicitly at the logistical side of things, it also applies to other industries. By not having to deliver products, a company will immediately cut out the myriad of liabilities that comes with transposition, from accidents to lost packages, etc. However, this also holds for other industries. For example, a company might need a bespoke piece of software to perform specific tasks. By outsourcing to another company, they don’t have to worry about an intellectual property infringement as this will be covered by the outsourced software provider.

Outsourcing can be a massive benefit to businesses. Businesses can save money by outsourcing manufacturing, marketing, logistics, and even accounting. It allows companies to focus on their core competencies and plow all of their efforts into the profitable parts of their business.

payment
Archives, Banking, Commentary, Global Trade Daily

Top 5 Payment Providers for Retail Businesses

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Payment providers are critical in assisting organizations to thrive as technology, new payment choices, and markets continue to evolve. Making your website capable of making online purchases, on the other hand, is more difficult than you might think. Connecting your website to a payment processor frequently necessitates significant technical knowledge. Fortunately, third-party payment service solutions provide this functionality without complication to process transactions and improve the shopping experience for your customers.

There are various types of payment service providers in the market. They differ in terms of features, capabilities, and pricing. How can you know which one is right for you?

How to select a payment provider for your retail business

Choosing a payment gateway for your retail business can be more difficult than you think. When assessing payment providers for your website, you can consider a point of sale software connected with secure payment terminals or look for the following crucial features:

Fees: Different pricing schemes might have varying effects on your business. You should be careful of providers that charge for set-up, monthly fees, and variable volume levels. Transaction Processing: You should keep track of how long it takes you to receive paid following the transaction.

Integration: Before choosing a provider, you may ensure that the payment solution interfaces with your website or any of your other applications.

Customers: You should take into account your consumer base’s preferences. Using a supplier that your customers already use for their payments can ensure a faster and less complicated checkout for the vast majority of your customers. Do you have a large number of eBay customers? They are probably familiar with PayPal, for example.

PCI Compliance: You should ensure that your provider adheres to PCI DSS requirements to ensure safe transactions for both your customers and yourself.

Let’s take a look at some of the best payment providers accessible for your retail business!

Paypal

PayPal is often considered the “godfather” of all payment gateways. It becomes a dominant presence in the industry with over 375 million active registered accounts in over 200 countries.

During the checkout process, PayPal Express Checkout asks customers to leave your site and log in with their PayPal account or establish a new one. Your website will have a PayPal button.

Customers leave your site to check out and connect to their PayPal account, or they pay by credit card without needing to sign up for an account when using PayPal standard. PayPal Pro enables you to host and modify the whole checkout process, without requiring the customer to leave your site. It also takes credit cards over the phone, fax, and mail.

Stripe

Stripe is one of the most well-known eCommerce payment gateway services. It was founded in 2010 and today controls between 10% and 20% of the market (second only to PayPal). Having trouble figuring out how to connect a payment gateway to Shopify for example? Not to worry! Stripe’s integration with Shopify is simple.

Furthermore, Stripe operates in over 40 countries and accepts over 135 currencies, allowing your consumers to pay in their currency while you get payments in yours. Stripe Checkout is ideal if you do not want to create payment forms from scratch. It is a payment form that can be embedded into a desktop, tablet, and mobile device. Customers do not leave your site to finish the transaction because they store their payment information with Stripe. Stripe is quickly becoming a household name in the business, and for good reason.

Square

One of Square’s biggest features is how simple it is to set up. Users can install the program for free on any iOS or Android device and accept payments using a free plugin mobile credit card reader provided by Square. Merchants may accept credit card payments with only a smartphone or tablet, making it ideal for food carts, farmer’s markets, craft stalls, and other mobile merchants.

Braintree

Braintree is a payment gateway that combines flexibility, security, and customization. It was purchased by PayPal in 2013 when the online payment giant realized the potential of its competitor. Braintree accepts international payments in over 130 currencies in over 45 countries and regions worldwide.

Wepay

WePay is a bit of an enigma in the digital payment provider market, but it is still beneficial for enough small eCommerce business owners that we placed it on this list. The uncertainty stems from WePay’s failure to make its pricing plan transparent. If you are interested, you must contact them directly for a quote.

Having said that, Wepay has a plethora of appealing features. There are no cancellation costs, for example. That’s correct. Unlike most other payment gateways, you will not be fined if you choose to stop using WePay’s services

Conclusion

Choosing a payment gateway provider will be one of the first milestones in your trip through the world of retail businesses. With this information cutting down the list of payment solution alternatives, you’ll be ready to conduct additional studies and choose the ideal solution for you.

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Richard has been an enthusiastic writer in the retail industry for more than 3 years. He mainly writes about how POS solutions help retailers improve their business efficiency and maximize profit. With long-year experience, Richard never stops updating his industry knowledge so that he can spread it to the world and help people realize the true potentials of having a digitalized POS system in this modern age.

tech
Archives, Features, Global Trade Daily, Stories

LEAVE IT TO TECHNOLOGY TO MEET MODERN CHALLENGES: PART I

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

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

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

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

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

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

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

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

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

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

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

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

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

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

3PL

Company: KSP Fulfillment of Fridley, Minnesota

Challenge: Rapid growth putting pressure on order fulfillment

Problem Solver: Softeon of Reston, Virginia

Solution: Cloud-based warehouse management system (WMS)

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

Why is there always a “but?” 

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

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

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

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

AIR CARGO LOGISTICS

Company: American Airlines Cargo of Fort Worth, Texas

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

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

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

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

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

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

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

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

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

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

BANKING/FINANCE

Company: Old Dominion Freight Line of Thomasville, North Carolina

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

Problem Solver: Relay Payments of Atlanta, Georgia

Solution: Instant electronic payments 

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

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

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

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

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

E-COMMERCE

Company: Hermes Fulfillment of Hamburg, Germany

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

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

Solution: Wearable barcode scanners and backend digital systems

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

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

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

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

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

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

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

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

Supply Chain Professions: Women’s Place Today?

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

 

 

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

 

Marie-Laurence Deruaz: Logistics Director at Suez Eau France

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

How can we make these jobs more attractive to women?

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

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

 

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

 

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

 

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

 

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

 

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

This article originally appeared here. Republished with permission. 

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Archives, Global Trade Daily, Special Reports

The 5 Common Mistakes of Online Print E-Commerce Solutions

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It’s not an understatement to say that Web-To-Print solutions are a raging business to invest in. Why? Well, digitization is the latest trend, one which is going to stay for a long time. As per research, the Web-To-Print industry is expected to grow at a rate of 5.1% and will earn a revenue of $30.5 billion by 2023. Anyone investing in this field is likely to capture huge customer markets and in turn, earn high revenue.

With the entire world going digital, printers should also invest in software that offers quick-time solutions. All, including B2B and B2C customers, want a rapid-paced solution with a custom product design feature. The tedious process of going physically to a designer, sharing a concept, waiting for the design, ask for edits and then get a final draft, is outdated now.

A W2P solution helps to minimize the operational cost and production time by offering online product design, which is ready to print. As per statistics, 58% of the printing businesses that chose Web to print solutions, felt an increase in sales and 55% reported a sharp rise in profits. Therefore, owning an online print store is certainly a great bet for entrepreneurs who want to launch into a feasible and profitable money-making business.

After pondering on the positive aspects of the venture, there are certain pitfalls that must be considered before taking a plunge into buying a design tool for a printing business.

Five Mistakes to Avoid While Choosing a Web-To-Print Solution:

 

1. Lack of research, homework and strategic planning

New bees need to do a reality check before venturing into a business that demands the purchase of a design tool for a printing business. Just like any other business, there are chances that this one may not work out for them. As per Forbes, 90% of the Startups fail (including W2P companies) due to lack of research, inability to gauge the target audience, poor marketing and many other reasons.

While 21.5% fail in the maiden year, 34% lose their grip in the second year, 50% suffer in the fifth year of commencing the business and 70% lose the game by the tenth year. Therefore, it is important to pool in experts who perform risk-benefit analysis before the actual investment.

The next step is to check the resources, brainstorm the process, build a marketing strategy and then only venture. This will be an ideal way to set up an online print store that will see the sunlight in the long run. So, the first thing is not to rush in the purchase of print store software.

2. Investing in the wrong software

After all the research and zeroing down on the idea of investing in a Web2Print eCommerce storefront, entrepreneurs need to search for the best technical machinery for it. As technology is changing in a blink miss and new concepts are coming up every day, they need to figure out which kind of W2P software works best for their company.

It is not advisable to invest in or subscribe to outdated software. In fact, it is recommended to enroll in the latest version of the software or add plugins that keep their Web-to-Print website up-to-date.

This may seem to be a tiny pointer but is certainly worth an incisive thought as outdated technology will demand more maintenance and rework in the future. To avoid such downsides, one must choose an eCommerce print shop that offers futuristic functionality, quick online product design modules, and a completely user-friendly interface.

3. Design over function

Know the purpose before creating a design!

It is said in the digital world that ‘form follows the function’. This means the purpose of creating a certain design or template should be very clear. Technocrats must gauge their target audience, assess the reason for choosing a particular Web-To-Print software solution and hunt for their probable market. This will aid in choosing the best print store software. When purchased with such clarity, the website offers custom product design, which pleases customers and eventually ends up in increased sales.

Suppose a print store owner wants to build a company that sells trendy T-shirts with unique prints. In this case, the first thing to figure out is the target audience – whether it is kids, youth or women of different age groups. Followed by this, the team needs to brainstorm the colors, the message, the design, and the fabric. Once the audience is known, it is easy to create a custom product design, which matches the demand of the audience.

Basically, when the function or purpose is known, the design part will flow effortlessly. Therefore, it is important to prioritize the evaluation of the function (purpose) and not jump on the creative aspect or the design element of the business.

4. Slow load times are the shortest way of losing customers

A business can fail even after knowing the heart of the target audience. Reason? Low-performing technology is the prime reason for the failure of a W2P website. The biggest reason for customers to choose an eCommerce print shop is to reduce the time for publishing the material.

Suppose, customers need to print brochures for marketing a certain feature of the company. They can easily do so by simply customizing the existing template and printing as many copies of the brochure as they want.

In this case, if the template takes time to show up or custom product design UI takes time to load then it can be very disappointing. Hence, it is important to choose a quick loading software solution that performs customization in a jiffy, designs products online, and gives ready-to-print material in the shortest possible time. In a nutshell, it’s important to minimize downtime to maximize the business!

5. Poor checkout process – Another sure shot way of losing customers!

According to a report by SaleCycle, around 57.60% to 84.27% of customers withdraw from an eCommerce store during checkout, irrespective of the industry. Businesses can lose a big portion of the customers by keeping a tedious checkout process. In terms of revenue, it turns out to be a whopping amount of $18 billion, which eCommerce brands lose due to cart abandonment.

Simplifying the checkout process will give significant results. Nowadays, people want to make purchases within few steps so, focus on offering a hassle-free checkout process. Make it multi-lingual to give added comfort to customers spread across the globe.

Apart from a simple three-step checkout process, the payment part should not ask for too much information. It can annoy the customer and he/she may walk out of the cart. Reports suggest that 12% of people drop out as the site demands a lot of unnecessary information. Nearly 11% of people abandon the checkout process if the website is too slow to load.

eCommerce experts suggest that around 7% of customers are lost due to the unavailability of payment options. Apart from a secure payment gateway, it’s important to offer multiple options for plastic money so that customers can pay as per their convenience. This way, by applying checkout optimization strategies, storefront owners can curtail the chances of losing customers during checkout and even increase the conversion rate by 35.26%.

To sum up, these are some of the reasons why businesspersons miss the mark in choosing a Web-To-Print solution. Anyone planning to launch an eCommerce print shop needs to consider the above aspects to succeed in the venture. By choosing the right technology partner, entrepreneurs can cut down the operational cost, minimize risk and maximize profits!

upskilling and reskilling
Archives, Global Logistics, Global Trade Daily, Warehousing

Fight the Labor Shortage with Upskilling and Reskilling

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Warehouse and logistics employees were getting harder to find pre-pandemic, and the COVID-19 outbreak has increased that level of difficulty. Companies across all industries are having a difficult time finding, recruiting and retaining workers in an industry known for requiring long hours on your feet, some heavy lifting and high overall employee turnover.

“Competition for warehouse workers was already stiff before the pandemic. Stores were adding jobs at their warehouses and logistics networks as more customers ordered online,” CNN reports. When the global pandemic drove up ecommerce sales, it added more pressure on retailers to staff up at warehouses.

“Now, retailers are scrambling to add extra warehouse staff as they ramp up for the peak holiday season amid a record number of unfilled jobs,” CNN adds. Citing Korn Ferry statistics, the news outlet says 52% of retailers are facing “significant challenges” hiring warehouse employees right now, and that 33% of the companies surveyed are having an equally hard time staffing their stores.

Of course, at the opposite end of any major disruption lies new opportunities. In this case, companies have a chance to reverse the tide of the labor shortage through upskilling and reskilling. Are you up to the challenge? Read on to find out.

What are Upskilling and Reskilling?

The speed at which jobs are changing—sometimes due to automation and other times due to new business models—means that employees must constantly learn new skills in order to stay relevant and satisfied with their jobs. In many cases, traditional career paths or educational models aren’t enough to satisfy the rapidly evolving demands of the modern workplace. This is where upskilling and reskilling come in.

Upskilling is learning additional skills or enhancing existing abilities, often with the goal of advancement. A retail store clerk or office manager would upskill when transitioning to a management or corporate role, for example. Reskilling, on the other hand, is learning a new set of skills or training for a new role, often with the goal of transitioning to a new job or different industry. A truck driver who wants to become a computer programmer would need to reskill.

Updated Knowledge and Skillsets

Highlighting the value that upskilling and reskilling provide companies and their associates, Ohio News Time says more companies are investing in both because they help employees “perform better with the updated knowledge about their field and the latest developments in their industries.”

“Upskilling creates a positive impact on both organization and staff that can be witnessed through better performance and an increasing number of goals being achieved,” the publication points out. Upskilling and reskilling also help companies promote productivity and bring out the best in their associates; build more self-reliant, confident workforces; and help workers navigate through uncertainty.

“Uncertainty is a crucial reason for companies to invest in upskilling their employees,” Ohio News Time points out. “This includes all the technological advancements, new projects, and reorganizations.”

How Technology Supports Upskilling and Reskilling

With technology transforming every field and advancing the functionalities within those fields,  employees are learning how to leverage new advancements at work. The warehouse or distribution center (DC) is a perfect backdrop for seeing the value of upskilling and reskilling in action. Highly automated warehouses are much more attractive and require a more advanced skillset from the new generation of warehouse/supply chain employees.

For example, Cameron’s Coffee is a coffee roasting, packaging, and distribution company that receives its coffee beans from South America, stores them in Minnesota and ships them to hundreds of stores across the country. The company originally had a paper-only warehouse where individuals had to manually check and encode items.

Ready for a change, Cameron’s Coffee decided to update its warehouse and use a combination of the SOLOCHAIN WMS and MES that directly tied into its ERP. With the addition of the software coupled with iPads and handheld devices, the warehouse’s efficiency skyrocketed, sales increased by 50%, ecommerce grew by 200%, and the company was able to expand the size of its warehouse by 25%.

Equipped with their new software and iPads, the company’s employees were not only more efficient, but they were also happier in their jobs. The new technology increased their independence and reduced the amount of time required to complete tasks.

Time to Replace those Aging Systems

When you replace aging, manual warehouse systems with a modern WMS, you’ll not only get efficiency and productivity gains, but you’ll also experience an overall boost in employee morale. This is because the more you reduce the mental and physical strain on your employees the happier they will be.

Utilizing technologies that younger staff is comfortable with (e.g., iPads and touchscreen devices) helps them be more productive and safe at work. Implementing voice command technology in the DC, for instance, helps reduce mental strain and drives an increase in productivity.

5 Ways to Kick Off Your Upskilling Program

Over the next few years, upskilling and reskilling may become more important than ever before. According to the World Economic Forum’s most recent The Future of Jobs report, about 40% of employees’ core skills will change within the next five years. This means that 50% of all employees will have to upskill or reskill.

To companies that want to start their own in-house programs, AG5 suggests these five starting points:

1. Establish training programs for your current workforce.

2. Set up a mentorship scheme in which experienced veterans transfer still-needed skills to the younger generation.

3. Focus on creating versatile and multidisciplinary staff. Job rotation is a prime example of how to achieve this.

4. Add new tasks to existing job profiles so that staff have to learn new skills.

5. Hire specialists to fill gaps for which your current workforce has yet to be retrained.

With no end in sight to the current labor shortage, and with ecommerce once again expected to grow in the double digits in 2021, the time to start assessing your workforce and implementing upskilling/reskilling programs is now. Rather than waiting for your competitors to get a leg up on you, why not make some moves in this direction today?

Solutions exist today that can ensure any warehouse or distribution center operates at peak efficiency, 24 hours a day, seven days a week. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line.

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

This article originally appeared here. Republished with permission.