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How to Make Your Logistics More Sustainable with Green Delivery Packaging

packaging

How to Make Your Logistics More Sustainable with Green Delivery Packaging

As the online retail industry continues to boom, delivery packaging is becoming an ever more important sustainability concern. Due to the Covid-19 pandemic, there has been a significant increase in online orders, and with technology constantly developing and improving, this is going to continue to increase.

In an article written by Kayla Jenkins entitled “How has E-Commerce Adapted During the COVID-19 Outbreak?” we see that there has been a 32.4 percent increase in e-commerce sales in 2020 and e-commerce shops as a whole achieved sales in the value of over $270 billion. That is a lot of boxes and packing being used; which will lead to a lot of waste and packaging materials that take hundreds of years to biodegrade.

A lot of companies are guilty of not being sustainable when it comes to packaging. Boxes are unnecessarily being used to ship slightly smaller boxes; styrofoam peanuts are being thrown into boxes and can take up to 500 years to biodegrade. In the United States, about 165 billion packages each year are shipped with cardboard which roughly equates to over one billion trees. In a study carried out by Statista, it states that 77 percent of people who order online prefer packaging that fits the actual size of the product to reduce their impact on the environment.


 

Over at 2Flow, they have put together an infographic entitled “How to Make Your Logistics More Sustainable with Green Delivery Packaging.” The infographic outlines the environmental impact of packaging; the opportunities that come with having a more green approach; the business benefits of going green; the goals of sustainable delivery packaging;  how to go about making your product delivery packaging more green; and what the business experts have to say on the topic by showing suitable case study examples.

How to make your logistics more sustainable with green delivery packaging

 

breakbulk americas

BREAKBULK IS BACK: AFTER PANDEMIC HICCUP, BREAKBULK AMERICAS RETURNS TO HOUSTON

After missing 2020 due to the COVID-19 pandemic, Breakbulk Americas is returning in September.

“This event from September 28 to 30 is all about getting together as an industry after a very long two-year break,” says Leslie Meredith, Marketing and Media Director for the event. “Breakbulk Americas is the first Breakbulk event to return to the market post-pandemic. We are working very closely with the City of Houston and the George R. Brown Convention Center to make sure that this is a safe experience for all.”

You might say Breakbulk Americas has gotten a shot in the arm.

“Fortunately, the vaccine rollout has been very efficient and Americans are able to move around with a great deal of freedom, which bodes well for the event this fall,” Meredith says.


 

Safety for all involved is paramount for event organizers, Hyve Group. In January, Visit Houston, the city’s entity that governs events and tourism, outlined its exceptional safety measures that will be in place for the event along with other improvements to support the region’s top event for the project cargo and breakbulk industry.

John Solis, senior vice president of Sales & Client Services at the George R. Brown Convention Center (a.k.a. GRB Center), said in a communiqué to Breakbulk, the convention center has made significant enhancements to its facility. The GRB Center is the first convention center in the world to deploy the Integrated Viral Protection (IVP) system, which deploys biodefense filtration technology proven to eliminate SARS-CoV-2 (99.999%) and other airborne contaminants. 

In addition, a new virtual studio inside the GRB Center will provide flexibility to maximize opportunities for hybrid experiences. This feature will allow Breakbulk to host remote expert speakers should that be necessary due to travel or budgetary considerations, along with its in-person industry panelists. 

A third enhancement will be permanent thermal scanning stations located at all entry points that can process up to 100 guests per minute, ensuring no delays to access the exhibition floor.

The new features complement Hyve’s own safe and secure program that is applied to all Hyve events.

At the last Breakbulk Americas convention in 2019, more than 4,800 attended, which has made Breakbulk Americas the region’s largest and most influential event across Canada, the U.S., Latin America and the Caribbean for all those involved in the project cargo and breakbulk community.

Meredith said organizers have “some exciting plans for Breakbulk Americas to fuel networking for new business opportunities, which has never been more important. The traditional welcome reception held Tuesday evening at the GRB Center will embrace the spirit of Texas as thousands gather for the Reunion at the Breakbulk Saloon. The entire exhibition floor will be decked out Western-style with ‘watering holes’ (themed bars) throughout the hall.”

Leading up to the reunion will be an exclusive Executive Summit for C-level exhibitors and shippers to tackle post-COVID recovery together. On a lighter note, all attendees are invited to participate in the 2021 Maritime Workers Emergency Medical Fund Golf Tournament at the Hermann Park Golf Course in Houston.

The first full day of the exhibition and conference begins on Wednesday, Sept. 29, continuing through Thursday afternoon, Sept. 30. On the main stage, industry leaders will present a wide range of insights on the evolving impact of COVID on business and projects, President Biden’s infrastructure plan, U.S. offshore wind project opportunities, the carrier sector, women in breakbulk on tackling the imposter syndrome and the effects, both long term and short term, of the greening of the oil and gas supply chain.

Meredith said that “an integral part of Breakbulk Americas is contributing to the next generation of transport and logistics professionals, which we do through the Jerry Nagel Education Day and guided tours of the exhibition floor. With strong ties to Texas universities and beyond, Breakbulk typically hosts around 200 students and their instructors at this introduction to the industry and to its leaders. Education Day will be held on Thursday.”

(Agenda: https://americas.breakbulk.com/business-programme.)

Breakbulk Americas attracts new exhibitors annually, but there are many who make it a “must” event, like the Port of Baltimore.

“Breakbulk cargo is a very important subject matter for the Port of Baltimore and Breakbulk Americas is a must-attend conference,” says William Doyle, executive director of the Maryland Port Administration. “Last year, Baltimore handled more than 173,000 tons of breakbulk cargo, which was a 23% jump over 2019 and so far this year we are up 4% over last year.”

Doyle continued: “We regularly handle power and heat steam recovery generation machinery, wind turbine equipment, transformers and other energy production equipment. We also serve as a major gateway for breakbulk premium fresh fiber paperboards, including folding boxboards, food service boards and white kraftliners, especially since the e-commerce boom.” 

He noted that his facility’s “excellent geographic location to states like Pennsylvania, West Virginia and Ohio allows Baltimore to be an ideal port for handling breakbulk cargo destined to those states. Baltimore also has two, heavy-lift cranes and direct-to-rail capabilities. The Breakbulk Americas conference allows us to meet and connect with our current breakbulk customers and seek out opportunities with prospective customers. We will have our breakbulk sales representative Rick Pagley at the event.”

For Barnhart Crane and Rigging in Fairhope, Alabama, “there is really no greater opportunity to connect and network with those involved in the heavy transport and project cargo industry than Breakbulk Americas,” says Chris Teague, Barhart’s director of Marketing. “Barnhart has been committed to this event for years because it has always borne fruit. As a national company with 50 locations across the U.S., Breakbulk is the one event for which our sales team can gather and engage with customers, vendors and key influencers within the industry. Year-after-year, all Breakbulk Americas attendees and exhibitors can always be guaranteed to interact with the (pun intended) movers and shakers in the industry.” 

Ken Carey, manager, Business Development, with the St. Lawrence Seaway Management Corp., says “Highway H2O has been attending this event for many years. We find the quality of the event, the attendees and the other exhibitors to be world-class.”

Carey adds that, “Given the bi-national scope of the Seaway-Great Lakes transportation system, we also enjoy the opportunity to meet new contacts and expand on relationships we have developed over the years.”

Convention exhibitor Port Tampa Bay looks at Breakbulk Americas as key to its business, according to Wade Elliott, the port’s vice president of Business Development. 

“We are Florida’s largest port for steel cargo and have been receiving increasing volumes of breakbulk lumber, thanks to a new service which was launched last year,” Elliott says. “Breakbulk Americas provides a great networking forum for us to meet with the carriers, importers and exporters and coordinate plans to serve our growing market, in particular the Tampa/Orlando I-4 Corridor, Florida’s distribution hub.”

Annual Breakbulk Americas attendee Wolfe House Movers/Buckingham Heavy Transport has between two and four company members at the event, says Anna Brovont, the Bernville, Pennsylvania, company’s marketing administrator.

“As a heavy haul transporter, we have found that Breakbulk Americas has been integral to our business in bringing us an opportunity to discuss their interests with our clients, expand our networks and stay abreast of developments within the industry,” she says. “We do some business but use Breakbulk Americas primarily to touch base with clients.”

Sustainable

Sustainable Warehousing: New Requirements to ‘Green’ Online Retail Demand

Although the pandemic rapidly increased the demand for online shopping, the e-commerce industry has been experiencing rapid growth for years. Spurred by consumer desire to have unlimited choices instantly, e-commerce is expected to represent 26 percent of all retail sales in the U.S. by 2025 — resulting in the need for an additional 330 million square feet of distribution space. With ambitious plans to make the U.S. carbon neutral by 2050, warehousing and logistics organizations have an obligation to decrease the industry’s carbon footprint. This means taking a low-carbon approach to construction and building maintenance, as well as improving site selection and availability for warehouses to reduce transportation emissions.

Warehouse Site Selection

The increase in e-commerce has inevitably led to a rise in demand for warehouse space. Ideally, providers are seeking options closer to where their consumers live — near major metropolitan areas. However, warehouses require expansive spaces, with most key players in the industry looking for facilities over 100,000 square feet or even 250,000 square feet. This can make it challenging to find suitable sites to meet new demand, hiking up costs for warehousing land. Additionally, distribution centers are finding it difficult to locate existing assets to lease or purchase that meet these requirements. Many end up looking for new builds or refurbishing abandoned commercial assets, such as malls or office spaces.


 

Currently, most warehousing demand is coming from the Western U.S., including markets such as Phoenix and California’s Central Valley. These areas are heavily populated but also offer vast land resources close to city centers. Moving further outside of cities and major metropolitan areas can increase availability and decrease cost, but it has an adverse impact on the environment. When distribution hubs are located farther from where the demand is, journeys will be longer, increasing carbon emissions. In order to improve the sustainability of the industry, government strategies are needed to reduce land requirements for distribution centers, allowing them to be placed closer to where consumers live. In circumstances where this isn’t possible, companies need to consider means to lower the emissions caused by distribution strategies, such as using Electric Vehicles (EVs) to transport products to consumers.

Repurposing existing spaces can help reduce the carbon emissions of warehousing sites, as it reuses resources and potentially allows for shorter distribution timelines. Unfortunately, there is still a lot of work required to get these facilities up to standard for modern warehousing and manufacturing needs. Another key trend that will improve site selection by allowing for smaller horizontal square footage and improved proximity to city centers is the growing popularity of vertical warehouses. In metropolitan areas where horizontal land is not an option, logistics facilities are going vertical, creating multi-floor warehouses and manufacturing sites. Logistics demands are changing as new industries enter the market, including food services. This has inspired innovation in the design of buildings.

Low-carbon Construction and Operation

According to a United Nations Environment program study, buildings and new construction are responsible for huge carbon emissions, accounting for 36 percent of global energy use and 39 percent of annual energy-related carbon dioxide emissions. With warehousing requirements increasing, it is a pivotal time for this industry to evaluate construction-related emissions and consider environmentally aware building methods.

Modular construction has been used across several sectors with great success, including life sciences and residential construction, and these same practices can be applied to warehousing and logistics. Modular construction takes place off-site in manufacturing facilities, with completed designs moved on-site for installation. This can reduce material waste, as it uses a controlled environment for building. It also creates reusable, standardized building designs. Because the building parts are plug-and-play, it also makes the demolition of buildings more sustainable as the units can be removed when they are no longer needed, then repurposed elsewhere. Using hydrogen-powered transportation to move modular projects on-site can help further reduce carbon emissions, but this new trend is only sustainable if companies invest in hydrogen manufacturing plants.

The materials used in warehouse construction are also important. Utilizing steel building frames can reduce wear and tear on the building. It’s also recyclable and can be reused on other projects. Reusing materials from other projects, or using materials that have lower embodied carbon, can bring down the carbon footprint of the building. All materials used in warehouse construction need to be carefully considered if a company wants to reach sustainability goals.

Sustainable practices should also be followed when the building is in use. In a warehouse environment, energy efficiency is important, but it must be balanced against workers’ needs. Workspaces must be illuminated and heated properly to keep workers safe and comfortable. Implementing energy-efficient lighting and heating, as well as using alternative energy sources, can help meet sustainability goals while managing requirements for workers. Technology can be used to monitor energy efficiency, manage inventory and create more efficient internal processes, thereby reducing overall energy consumption.

Smarter warehouses are also needed, whereby technology can be implemented to reduce consumption. Warehousing is now implementing robotics to reduce manual labor requirements while improving efficiency. Although the use of robotics is mostly to improve productivity, when used in conjunction with other sustainable design initiatives, the results can reduce carbon emissions. For example, JD.com, a retailer out of China, opened an automated warehouse in 2018 that boasted only four employees but 200,000 daily package fulfillment. When China announced its goal of reaching carbon neutrality by 2060, JD.com began exploring low-carbon, innovative solutions for warehousing, such as solar panels to power the robots. As new technologies emerge, building considerations will need to change. For example, the use of drones in delivery means that spaces need to accommodate charging stations and landing pads. In new warehouses, companies will need to look towards new technology trends to ensure buildings are prepared for the future.

Traditionally thought of as straightforward projects, warehouses are becoming increasingly complicated. New design, technology and sustainability requirements are forcing companies to innovate in order to develop forward-facing warehouses that will meet future demand. At the same time, increased demand is forcing companies to accelerate timelines while reducing costs. Traditionally reserved for complex life sciences projects, project control consultants will become increasingly necessary on new builds, as well as refurbishing projects.

Environmentally Aware Warehousing and Logistics

Large e-commerce companies are starting to see the importance of creating environmentally sustainable operations. Many U.S. companies that moved manufacturing capabilities overseas are now looking to reinvest in U.S. infrastructure to reduce shipping timelines. California’s World Logistics Center is aiming to be the most sustainable center of its kind in the world, investing in green vehicles and green technology, rooftop solar panels and conservation grants, among other efforts. Other large logistics players are also making promises to reduce the industry’s environmental impact.

These positive changes show that the industry is ready to ‘green’ online retail demand. To do so, there needs to be serious considerations around where and how warehouses and logistics centers are being built. The benefits for the operators are there — a low-carbon approach to construction can lower future operational costs. But it also has a larger impact on future industries that are experiencing increased demand, such as data centers and life sciences. If logistics can show the benefits and ease of sustainable construction and design, it can pave the way for future sustainable construction booms.

_____________________________________________________________________

Damien Gallogly is Vice President, Americas West Region at Linesight and has over 17 years experience in the construction industry. As a project controls expert, he has worked on a number of large-scale projects, and benefits from considerable international experience across the U.S., UK, Ireland, the Middle East, and Asia. This gives him an in-depth understanding of working on major developments and complex projects, from early engagement through to project closeout. Damien has worked with a range of multinational clients, supporting their development and ambitious programs with valued, strategic counsel.

This article originally appeared here. Republished with permission.

digital

Train Your Employees in Digital Tools: 3 Best Practices

Mastering flow management solutions, interacting with autonomous mobile robots, running a warehouse remotely during periods of confinement: the digitalization of the supply chain requires logistics professionals to develop their digital skills. Here are the 3 best practices to make your digital transformation a reality and optimize it.

In a sector that is constantly evolving and undergoing digital transformation, the effectiveness of training for logistics operators and managers is both a competitive lever and a competitive advantage.

-How can you transfer new skills and reflexes to employees in an agile and sustainable way?

-How can you encourage the adoption of digital tools in the face of potential resistance to change?

Our advice for optimizing the commitment of employees in the crucial process of ‘digital upskilling’:


 

1. Make digital meaningful again, with training in context or on the job

According to McKinsey, 90 million European workers will have to significantly renew their skills in the coming decade, as more than 20% of their current tasks will be taken over by technology. This is considerable, and it is likely that this figure will be even higher in the supply chain sector, where robotization and process automation are already prevalent. If these transformations can raise legitimate concerns in warehouses and logistics platforms, professional training is the ideal place to demystify technology by providing evidence of its usefulness and interest for employees. However, this is only possible if it provides concrete and realistic answers to everyday problems.

For your training courses, avoid focusing on generic e-learning modules or only on theoretical training courses, which are too disconnected from the reality of the field. When it comes to digital technology, employees need to project themselves. By organizing sessions directly in the workplace, through real-life applications, employees will be able to appropriate digital tools and perceive their impact. And thus, judge for themselves their potential benefits. This includes: the reduction of work drudgery, more space for initiative, quality control, and communication.

The rate employees are trained in digital technology and the completion rate of training courses are indicators that HR/training departments monitor closely. Especially in an industrial context, where access to online training is more complicated to organize. Some companies, such as Continental, have decided to install “learning boxes”, a kind of bubble equipped with screens and digital tools, in the heart of production areas, to encourage employees to take self-service training through technical tutorials or serious games.

2. Encourage reverse mentoring

In the jargon of human resources, we speak of ‘reverse mentoring’. The principle is to create a bilateral learning system between a young ‘digital native’ employee and a senior employee, less familiar with digital and technological uses. This approach can be part of an official mentoring program run by the company’s training department, with predefined training content, an action plan, and objectives. Or it can be more informal and spontaneous, with exchanges and collaborative workshops. In all cases, this practice not only promotes the transfer of digital skills, but also stimulates intergenerational links within companies, while encouraging employee commitment and retention.

3. Leverage virtual reality (VR) or augmented reality (AR) devices

Used for training purposes, virtual reality offers the advantage of immersing employees in a work environment similar to their own, without risk to their safety and without interrupting the production line. In the case of augmented reality, they can even be immersed in the real ‘setting’ of their company. Equipped with a helmet, a joystick and a screen, learners can thus familiarize themselves with new gestures and undergo various business scenarios in a fun way. For example, they can drive a remote-controlled forklift truck while avoiding obstacles or try to find the fastest way to a product reference. They can even simulate inventory management in a virtual warehouse. This type of immersive experience allows the employee to be an actor in his training and to learn from his mistakes. Customized to the company’s needs or available off-the-shelf from training program publishers, these devices can integrate collective simulation experiences, aimed at training multidisciplinary teams.

This VR-based approach is still relevant in the post-Covid era, where more and more tasks are destined to be performed remotely.

Thanks to virtual reality, Danone and Generix Group have developed, in Russia, a methodology allowing the production of remote warehouse management systems (WMS) in several sites in a synchronous way. Discover our dedicated content.

-Data Science: new jobs in the Supply Chain

-Warehouse storage: when algorithms facilitate optimization

-Digitalization of the supply chain: what impact on the skills required?

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

chicken meat

Chicken Meat Prices Skyrocket Due to Restored Demand in the HoReCa, a Flash of the Bird Flu and Increasing Costs for Grains

IndexBox has just published a new report: ‘World – Chicken Meat – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Since the start of 2021, prices in the global chicken meat market shot up as a result of high demand, rising costs for feed grain and food as well as a decreasing rate of chicken slaughter in the EU, South Korea and Japan. Heightened costs for shipping containers are additionally driving the growth in export prices. As of year-end 2021, worldwide production and exports of chicken meat are forecast to remain at the previous year’s level. Demand for chicken meat in China is dropping while the pig population in the country is recovering and hog prices are decreasing. Saudi Arabia’s ban on imports of chicken products from Brazil may lead to diminished exports from that country.


 

Key Trends and Insights

All around the world this year, prices for chicken meat are growing at a fast pace. According to FAO, export prices for chicken cuts and edible offal from the U.S. spiked from $977 per ton in January 2021 to $1138 per ton in June 2021. The price for broiler meat in the EU during the 29th week of 2021 was at 204.5 euros for 100kg or 10% higher than the same period of the previous year. The price increase is caused by demand growth from the HoReCa sector and retail in western countries, particularly the U.S., high costs for poultry feed and a slow production pace in the EU following a flash of the bird flu. Rising rates for shipping containers is also adding to the increased export prices.

Based on USDA figures, IndexBox calculates that at year-end 2021 chicken meat production globally will remain at 123M tonnes, the same level as the previous year. Falling demand for chicken meat in China is the main factor holding back production growth. China is intensively recovering its hog population after widespread disease led to a major decline in numbers. As a result, prices for swine are decreasing and boosting pork consumption. The high cost for feed grain and lingering impacts of Highly Pathogenic Avian Influenza in the EU, South Korea and Japan are also hindering expansion in the poultry industry.

In 2021, chicken meat exports globally will remain at the previous year’s levels. Drops in meat shipments from the EU and Brazil will be offset by an increase in supply from the U.S. and China. The U.S. is the second world’s largest exporter of chicken meat with a 24% market share of global exports. The country will ramp up deliveries by +1% y-o-y to 3.5M tonnes. Chinese exports are projected to grow by 10% y-o-y to 176K tonnes.

Chicken meat exports from Brazil, the largest supplier in the world, will decrease by 3% y-o-y to 3.7M tonnes as a consequence of Saudia Arabia’s ban on imports going into effect in May 2021. The ban specifically focuses on 11 poultry processing plants in Brazil. Saudia Arabia is one of the largest importers of Brazilian chicken meat, but this year, the country will aggressively develop its domestic production and offset the drop in imports from Brazil with shipments from China, Cuba and Angola.

Global Chicken Meat Production by Country

In 2020, the amount of chicken meat produced worldwide rose by +4% to 123M tonnes, growing compared with 2019. In value terms, chicken meat production reached $192.4B in 2020 estimated in export prices.

The countries with the highest volumes of chicken meat production in 2020 were the U.S. (20M tonnes), China (15M tonnes) and Brazil (14M tonnes), together comprising 40% of global production. These countries were followed by Russia, India, Indonesia, Mexico, Japan, Iran, Argentina, Poland, Turkey and Peru, which together accounted for a further 25%.

Global Chicken Meat Exports by Country

In 2020, the amount of chicken meat exported worldwide rose slightly to 15M tonnes, growing by +3.9% compared with the previous year’s figure. In value terms, chicken meat exports contracted slightly to $21.6B (IndexBox estimates) in 2020.

Brazil (3.9M tonnes) and the U.S. (3.5M tonnes) represented roughly 49% of total exports of chicken meat in 2020. It was distantly followed by the Netherlands (1.4M tonnes) and Poland (1.2M tonnes), together creating a 17% share of total exports. The following exporters – Turkey (516K tonnes), Belgium (439K tonnes), Ukraine (430K tonnes), the UK (427K tonnes), Thailand (341K tonnes), Germany (295K tonnes) and France (228K tonnes) – together made up 18% of total exports.

In 2020, the most notable rate of growth in terms of shipments, amongst the main exporting countries, was attained by Turkey (+68.0% per year), while exports for the other global leaders experienced more modest paces of growth.

In value terms, the largest chicken meat supplying countries worldwide were Brazil ($5.5B), the U.S. ($3.4B) and the Netherlands ($2.5B), together accounting for 53% of global exports. These countries were followed by Poland, Thailand, Belgium, Ukraine, Germany, Turkey, France and the UK, which together accounted for a further 28%.

The average chicken meat export price stood at $1,451 per tonne in 2020, declining by -8.3% against the previous year. In 2020, the most notable rate of growth in terms of prices was attained by the U.S., while the other global leaders experienced a decline in the export price figures.

Source: IndexBox Platform

WMS

Solving Manufacturers’ Pain Points with a WMS

Generix Group is a global leader in warehouse and logistics solutions and based on internal research of customers around the globe, the 7 most common pain points that affect the manufacturing industry are:

-Inventory Visibility
-Quality Assurance (QA)
-Risks of miscommunication and disruptions often from incorrect and incomplete data
-Recalls
-Omnichannel Distribution
-Relying on predictive data
-Just-in-time-delivery

When choosing the right WMS for your business you should consider how a WMS will resolve your particle pain point and improve the rest of your warehouse. The right WMS should be both customizable and flexible enough to resolve any pain point in your operation now or in the future. It should also provide your business with the tools and resources to increase efficiency and expand.

Visibility within the warehouse

 

An essential tool of any WMS is traceability. For inventory, QA, and recalls the ability to locate the item in real-time anywhere within the warehouse whether it is in a location or with a worker is imperative. It’s also important to trace the history of your items. If an item is recalled or on QA hold the complete history of the item should be readily available, so that you can find a solution with as little interruption to the warehouse as possible.

Traceability is also the solution to minimizing incorrect and incomplete data. By tracing inventory through the warehouse in real-time the WMS has many data points that the user can quickly and easily view. This provides a roadmap to quickly locate and fix any error.

Using Predictive analytics

 

The right WMS should be capable of expanding with your warehouse and growing into new areas. For example, if you are adding a new sales channel such as ecommerce, you will need a WMS capable of managing different vendors and workflows. In addition, a WMS capable of collecting and analyzing predictive data is important for any business relying on consumer demand. In turn, consumer demand drives the industry, any warehouse that can predict the consumer has an advantage over the competition.

Businesses utilizing just-in-time delivery should look for a WMS that has automated full cycle order management, along with the features listed above. Automated order management can greatly reduce any error in order fulfillment by quickly and automatically order items necessary to fulfill any order. Combine this feature with predictive analytics and your WMS can expand your business tremendously.

Natesan Andiyappillai published an article in the International Journal of Computer Applications. According to his research data analytics play a key role in optimizing logistics. He concluded that “Logistics business becomes complex due to globalization and ever-changing market and consumer behavior. And it is critical for the business not only to use the sophisticated IT WMS systems to capture the right data as much as possible but also to analyze the data extensively and optimize the logistics channel accordingly to be competitive in the market.”

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, our 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. 

chloride

Canadian Potassium Chloride Exports Rise Due to Burgeoning Supplies to Asia

IndexBox has just published a new report: ‘Canada – Potassium Chloride (MOP) – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Canada dominates the global exports of potassium chloride, providing 42% of its total volume. In 2020, Canadian potassium chloride exports grew by +8.8% y-o-y to 21M tonnes. The U.S., Brazil and China remain the key importers of Canadian potassium chloride. Last year, supplies to India, Indonesia and Brazil saw the most prominent growth rate among other trade partners. The average export price for Canadian potassium chloride dropped by -16.1% compared to the figures of the previous year. 

Potassium Chloride Exports from Canada

Canada remains the largest potassium chloride (MOP) exporter worldwide. The supplies from Canada account for 42% of the global potassium chloride exports.

Potassium chloride exports from Canada reached 21M tonnes in 2020, growing by +8.8% on 2019 figures. In value terms, potassium chloride exports dropped to $4.5B (IndexBox estimates) in 2020.

The U.S. (10M tonnes) was the main destination for potassium chloride exports from Canada, accounting for a 48% share of total exports. Moreover, supplies to the U.S. exceeded the volume sent to the second major destination, Brazil (3.4M tonnes), threefold. China (2.4M tonnes) ranked third in terms of total exports with a 11% share.

In 2020, the average annual growth rate of volume to the U.S. stood at +3.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Brazil (+19.9% per year) and China (-3.6% per year).

Last year, supplies from Canada to India, Indonesia and Brazil saw the highest growth rate among other destinations. Exports to India grew by +40% y-o-y to 1.8M tonnes, while supplies to Indonesia and Brazil rose by +45% y-o-y to 1.3M tonnes and +20% y-o-y to 3.4M tonnes respectively.

In value terms, the U.S. ($2.2B) remains the key foreign market for potassium chloride exports from Canada, comprising 48% of total exports. The second position in the ranking was occupied by Brazil ($698M), with a 15% share of total exports. It was followed by China, with an 11% share.

The average potassium chloride (MOP) export price stood at $212 per tonne in 2020, shrinking by -16.1% against the previous year. Average prices varied noticeably for the major foreign markets. In 2020, the destinations with the highest prices were the U.S. ($214 per tonne) and China ($214 per tonne), while the average prices for exports to India ($207 per tonne) and Brazil ($208 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to the U.S., while the prices for the other major destinations experienced a decline.

Source: IndexBox Platform

trucking

WHY DO WE HAVE A TRUCKING SHORTAGE?

The truck driver shortage presents an ongoing challenge for the logistics industry.  However, many people understandably wonder why it’s still a problem. 

One often-cited challenge is that there are not enough new drivers entering the workforce as veterans retire. A recent study confirmed that there were more than 14 million truck driver job postings between 2019 and 2020. That tremendous amount details the extent of the issue and suggests it will take time to address.

The research also concluded that nearly 57 percent of all truck drivers are older than 45. Then, almost a quarter (23 percent) are in the 55+ age bracket. 

A paragraph in the study explained, “The workforce composition suggests that young workers are not being recruited at rates that will replace current workers as they exit the market due to age or disability. This issue is further compounded by a relative dearth of younger workers overall compared to the abundance of baby boomers.”

Finding Women to Fill the Driver Shortage

Some trucking companies have dealt with the issue by ramping up their efforts to recruit women, a historically underrepresented group in the sector. One excellent way to do that is to focus on safety. 

Ellen Voie, the CEO of the Women in Trucking Association, says that the females who speak to her about the industry often cite safety as their top priority. However, maintaining safe working conditions and environments benefits everyone. 

She clarified that safety doesn’t only mean addressing one aspect: “That [safety] includes the maintenance of the equipment, the perception of when a driver should or should not drive in inclement weather or in areas of civil unrest, and how safe the loading dock is for drivers. Is it well lit, secure or in a dangerous neighborhood? Those are all aspects of a carrier’s safety culture.”

Canada’s Skelton Truck Lines found that recruiting women became easier when more females filled leadership roles in the company. It currently has nine female department managers. It’s notable that more than 30 percent of its drivers are women. The company also offers team freight so that women could do runs with their spouses. 

Efforts to recruit more women in the industry won’t account for all the aging workforce issues. However, they help, while making trucking a more gender-balanced industry. 

Industry Turnover Rates Exacerbate the Driver Shortage

Some people who get trained and licensed as truckers ultimately discover that they don’t want to make long-term careers out of the endeavor. However, some recent changes in the industry aim to provide more flexibility, which could reduce turnover rates.

More specifically, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) published new rules that went into effect at the end of September 2020. 

One of them is that drivers must take 30-minute breaks after driving for at least eight hours. There is no requirement that they are consecutive hours, and drivers can count periods when they are on-duty but not driving while calculating the eight hours. There is also an updated definition of what constitutes adverse driving conditions.

Pay Tops the List of What Keeps Drivers Committed

A 2021 study about truck driver retention showed some gender-based differences in what makes a person stick with the career and particular companies. However, the top concern for both men and women was that the company provided them with enough pay or settlement. 

Having a work/life balance was also more important for women, the study showed, as females ranked it as their third priority, and men chose it as their seventh. 

Carriers Mention Retention as a Pressing Concern

Another survey, this one published in October 2020, showed that trucking carriers brought up retention as their second most urgent problem. However, of the more than 1,000 drivers who responded, compensation was one of their primary concerns. 

Paying drivers more could be a vital step in making them feel that companies value them and their service. Moreover, it is ideal if compensation goes up according to a person’s experience level and reliability. Then, truckers should be more willing to stay in the career rather than looking for opportunities they perceive as more attractive. 

Another study indicated that 50 percent of drivers polled saw their current wages as uncompetitive. On top of that, many found that companies did not offer career paths for them. Data from that research also found that half of respondents did not feel safe on the road. If drivers struggle with feeling unsafe and realizing that they could earn more in other jobs, many will see what other possibilities exist. 

Obstacles Persist in Getting New Drivers Road-Ready

Getting more people interested in entering the trucking sector doesn’t solve the driver shortage. Industry leaders expect that COVID-19 restrictions could cause persistent backlogs that prevent new drivers from getting on the roads as efficiently as they otherwise might. 

For example, many Department of Motor Vehicles facilities delayed certain services during COVID-19 lockdowns and enforced social distancing rules that limited the number of people a location could serve in a given day. That affects all people who drive vehicles, including those who need to get their commercial licenses to operate trucks for the first time. 

Relatedly, some driver training centers had to close or hold smaller classes to abide by the applicable COVID-19 restrictions. Some people who were eager to get the necessary education may have found that they had to wait longer than anticipated to meet that goal. 

Drug Testing Crackdowns May Make Potential Drivers Wary

Another recent development related to the truck driver shortage is that the FMCSA’s Drug and Alcohol Clearinghouse took effect in 2020. It has already kept thousands of drivers from staying on the roads. 

New rules require all trucking companies to register in a database and conduct yearly queries on each driver. During 2020, the Clearinghouse system caught more than 56,000 violations, although just over 1,200 were alcohol-related. Marijuana was by far the most common drug found among drivers’ substance usage. Some people familiar with the matter attribute that statistic to the growing number of states that have legalized it.

When speaking about the 2021 driver shortage outlook, analyst Avery Vise noted that the Clearinghouse has “culled another 40,000 or so drivers directly from the market, and probably thousands more have exited because they think they might not pass a drug test.”

Other parties who specialize in driver recruiting noticed a decrease in new applicants. The tighter regulations for drug testing were not likely the sole reason for that trend. However, it could prove an important factor. For example, a person who uses legal drugs recreationally during their off-time might worry about getting called for a surprise drug test and not passing it because of their recent usage. 

That’s one example of how stricter regulations could worsen the driver shortage. If a trucker tests positive for marijuana, that does not necessarily mean they were smoking it while on duty. A person who keeps their legal drug use out of their work may ultimately decide that trucking is not an ideal industry after all due to the drug testing aspect. If they worry about their downtime choices affecting their careers, people may investigate other work opportunities. 

A Multifaceted Issue That Needs Strategic Solutions

This overview emphasizes that the industry could not target only one area to end the truck driver shortage. It’s an ongoing challenge that COVID-19 and other recent events negatively affected. 

However, one excellent starting point is for trucking company representatives to research the top things that their current drivers like and dislike about their jobs. That way, it’s easier to determine what to address first. If most people say that they enjoy their schedules but don’t get paid enough for what they do, that’s valuable information that could shape positive changes. 

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

shopping cart

Shopping Cart Abandonment: A Challenge for E-Commerce

Unfulfilled shopping carts are rampant in the retail industry and represent a significant source of additional revenues. Too many sales are left pending due to the lack of a smooth process and relevant options presented in real-time to the consumer. To “tighten the weave” of these abandoned sales, retailers need to manage unique and omnichannel baskets. Here is an analysis of best practices.

According to Baymard Institute, 55-75% of initiated shopping carts are abandoned. Despite these statistical findings, shopping cart abandonment is not fatal to retailers. Retailers like Cultura and FNAC have been demonstrating this for several years with a dynamic, 360° approach to their customers’ selections. Their strength? Ensure an overall view of the product selection and associate additional offers and advantages in real-time, regardless of the customer channel (at home, on the move, in-store).

Distributors: Aim for the Top!

“This ‘seamless’ connection between physical and digital channels is the first prerequisite for better basket completion” explains Philippe Petit, product marketing manager at Generix. “The second element relies on the retailer’s ability to analyze, in real-time, the nature and value of products, and to trigger personalized offers in correlation, which improve customer satisfaction and the retailer’s margin.”

According to a study by AB Tasty, a personalized e-commerce customer experience can increase the revenue generated by 15%.

To turn this promise into reality requires a software suite capable of transforming “static” shopping carts into dynamic allies for retailers. Omnichannel Sales ensures this mission by integrating ‘sales gas pedals’ that offer customers discounts, additional products, advantages or loyalty points depending on the products they select,” says Philippe Petit.

Golden Rules

1. A high-performance shopping cart is unique, omnichannel, and seamless

2. It is managed in a personalized, contextual, and real-time manner

3. It is a customer relationship and satisfaction tool

4. It improves sales, margin, and loyalty

The customer in search of omnichannel fluidity

Consumer journeys are made up of constant back and forth between several spaces (physical and digital), several terminals and several moments (information searches, price comparisons, analysis of comments, delivery conditions, etc.). In networks that combine in-store and online sales, too many baskets turn into a trap, due to a lack of management that is in line with this “mosaic” of expectations and behaviors.

There is also the case of franchised stores, which do not always have the same management systems as branches, resulting in a discontinuity in customer relations. In marketplaces, the rate of completion of baskets varies greatly depending on the costs and delivery conditions of each supplier.

The unified basket, a factor of recurrence, recognition, and valuing of customers

“The absence of a unified shopping cart, managed in real-time, penalizes the brands. Between two distributors that are apparently equivalent, customers always choose the one that offers them the most simplicity and recognition,” continues Philippe Petit. To reverse this trend, Generix Omnichannel Sales aggregates data into a single basket, thus freeing retailers from the problems of re-entering or merging files.

The solution integrates the entire spectrum of information including the basket (items, value), the customer journey (physical and digital), the transaction, promotions, loyalty, and history (recency, frequency, value). This makes consumers feel known, recognized and rewarded for their loyalty. “This is a strong element of differentiation, with a purchase act that is supported from start to finish, regardless of the channels and paths,” emphasizes Philippe Petit.

The statuses can be configured (pending, abandoned, or canceled). The customer, the sales advisor, and the after-sales service can find, in real-time, the shopping cart created via an e-commerce site, a wish list prepared on the phone, an order placed on a salesperson’s tablet.

The retailer can create and instantly distribute discount codes sent by SMS, encouraging consumers to go to the store or online. Omnichannel Sales even offers web services for VAT processing and legal collection of shopping carts generated via a salesperson’s tablet or an in-store kiosk.

According to a study by OpinionWay and iloveretail 48% of French shoppers use their store while in a store.

Clear and efficient returns management: An important decision factor for e-customers

Returns are the third most important decision factor for e-customers, after price and delivery terms. The clearer the brand is on the conditions of return (deadlines, logistics), the more it encourages customer trust and commit to purchasing.
“Generix uses the complete information of the registered baskets in the case of a partial or complete return of a purchase”, underlines Philippe Petit. Whether it was generated in-store and/or online, the single basket kept in Omnichannel Sales facilitates the management of returns, with the same level of information whatever the origin of the order (mobile, web, store, call center, etc.).

Generix hopes to eventually offer an analysis of the reasons for basket abandonment, whether it’s due to a product line’s pricing policy, an over cost between the product’s value and its delivery cost, or a lack of clarity on the return conditions. The result is a significant reduction in the number of unfulfilled shopping carts in consumer e-commerce.

As omnichannel-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. 

robotics

ZEN AND THE ART OF COBOT MAINTENANCE

Innovative robotics and automation technology are helping organizations get more done, in less time and with limited facility space. 

Warehousing, distribution centers and logistics companies are some of the organizations that are seeing big benefits with robotics.

According to the 2020 MHI Annual Industry Report, 67 percent of survey respondents said they believed robotics had the power to disrupt their industry and offer a competitive advantage for their organization.

Therefore, it’s no surprise that 39 percent of surveyed companies said they’ve adopted robotics and automation. An additional 73 percent of those surveyed said they plan to add more robotics or start implementing robotics in the next five years.

Benefits of robotics and automation

There’s no doubt that robotics and automation can help organizations meet their mounting needs to standardize production and overcome challenges related to high staff turnover rates. With robotics, you can increase your facility’s outputs without expanding your physical footprint or facility size.

Robotics can help organizations with staffing challenges by offering the following:

-High staff turnover rates often mean added expenses in training and keeping a facility running at full capacity. Robotics can help reduce this fluctuation in staffing by offering a consistent and reliable work source.

-As warehouses, logistics companies and distribution centers look to streamline operations, it often means increasing the weight of fulfillment carts. This puts added strain on workers and can lead to workers’ compensation claims and costly time off, lowering production. Robotics help streamlines product picking and packing activities without straining employees physically.

-Robotics can assist staff members with learning efficient routes through warehouses to pick and pack products. With artificial intelligence, robotics can map out a way to efficiently pick and pack products throughout a facility. This can offer heightened job satisfaction for workers that use “cobots” (collaborative robots) to assist them in their daily activities, allowing them to be more efficient.

But robotics offer more than just improved staffing and a reduction in fluctuations from staff turnover. Robotics can also help facilities do more with the same amount of space. Some ways robotics help with stronger outputs despite capacity limits include:

-Better inventory management allows your organization to automate the inventory process so you have to keep less on hand.

-Set aisle sizes based on robotic width and smart technology that tells machines when another robot is in an aisle. That way, you reduce the need for two-way traffic in an aisle so you can shrink the aisle size and make better use of the space.

-Reduction in need for additional workspaces, such as electronic scales, because it’s built into the robot’s system.

Maintenance for robotics and automation

But with robotics comes new requirements for the maintenance team. 

Preventative maintenance becomes increasingly more important as keeping equipment up and running is crucial to your business operations.

If the robots fail regularly, you could experience worse staff turnover rates than you did without the technology as staff members get frustrated and tired of the loss in productivity. Your organization’s agility and ability to respond quickly to requests become more important than ever as you begin to rely more heavily on robotics.

To add robotics to your warehouse, logistics or distribution center operations, you need a maintenance plan that includes:

-Condition monitoring: Prepare a dashboard that shows each robot’s condition and expected date for new parts to prevent breakdowns.

-Work order requests: Allow staff members to make a work order request and have a process for assigning those work orders to your maintenance team for fast service.

-Reporting: Run reports that help your maintenance team see how often each robot requires maintenance so you can project and anticipate that maintenance in the future to avoid costly breakdowns.

Computerized Maintenance Management Systems (CMMS) help warehouses, logistics companies and distribution centers operate efficiently while taking advantage of the competitive advantage robotics can offer. 

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For more than 30 years, Eagle Technology Inc. has worked with various industries. The Mequon, Wisconsin-based company offers clients the ability to boost productivity, control costs and maintain compliance, all from its web and mobile-enabled CMMS software, Proteus MMX.