Trending Now

New Articles

Introducing FleetCheck: An Indicator of the Health of Your Fleet

fleet
Archives, Global Logistics, Global Trade Daily, Trucking

Introducing FleetCheck: An Indicator of the Health of Your Fleet

Leave a comment

In an industry currently struggling with finding and hiring drivers, it grows more and more painful seeing your drivers inexplicably leave — especially when you have a gnawing feeling it probably could have been prevented with a simple conversation.

Not knowing what you don’t know is frustrating, but when viewed through the right lens it’s like so many things in life – an opportunity to improve. It’s not a revolutionary idea that you should want to focus on keeping the drivers you have and learn more about the issues they encounter that make their jobs difficult. Fortunately, the time to implement a retention program that listens to drivers’ needs couldn’t be better.

Putting a plan in place to effectively improve driver retention is easier than it sounds, and with the introduction of Insights earlier this year, Tenstreet clients now have a clearer view into what drivers experience at four distinct stages in their lifecycles. But what about getting a good read on your fleet as a whole, and on a more frequent basis?

Checking the oil in your fleet

Your fleet is the engine that keeps your company moving. If you neglect to regularly check the oil in your car, you run the risk of damaging vital engine parts, which could lead to expensive repairs or even a total replacement. Just like using a dipstick to check oil levels in your car gives you a good indicator of your engine’s health, you need a way to regularly check the overall health of your fleet.

Today, we’re introducing a new retention survey to our Insights platform that gives you a look into all the moving parts of your company. Our new FleetCheck survey module works similarly to an NPS tool in that it sends an anonymous two-question survey to your drivers once a week (or twice, depending on your preference). It gives you visibility into the current condition of your fleet at a regular frequency to show you immediately whether your fleet is running smoothly or if it needs something more to keep it going strong.

How surveys help you retain drivers

When drivers take your FleetCheck surveys, dashboard reporting automatically compiles the results, showing you an overall ranking, how many drivers responded, which drivers have not responded, and which drivers are detractors (or gave a below average score) – which may indicate an at-risk driver who could be saved with an intervention. Detractors are given the option of foregoing their anonymity should they wish to discuss their issue 1-on-1 with their manager.

You’ll also be able to see the satisfaction levels of your fleet week-over-week and month-over-month, connecting carrier and industry events to general driver sentiment–helping with that bigger picture objective–and ensuring your fleet is well-lubricated with everything it needs to give it power to drive.

As drivers start to see their feedback put into action, they’re more likely to feel like a valuable contributor in the organization and will grow more empowered to share things they otherwise might keep to themselves. Strengthening the driver-carrier connection cultivates a more dependable and loyal driver base, and ensures you get the most miles out of your fleet.

Finding and hiring drivers requires time, resources, and capital – all of which are wasted when drivers leave because nobody’s listening. Find out what you don’t know by checking in with your fleet. When drivers and carriers are communicating regularly, retention rates improve, trucks stay full, and your company runs more smoothly.

Need help building a retention solution?

Complement FleetCheck with additional Insights surveys to get a more holistic view of a driver’s sentiment both across his tenure and at specific stages therein.

Not sure what you need or how to get started? Reach out to us today! Our industry-experienced team will help you create a plan to help you listen to your drivers so they stay with you for the long haul.

Talk to Tenstreet

cameron's coffee
Archives, Global Logistics, Global Trade Daily, Warehousing

How Cameron’s Coffee Tracks Their Products from Bean to Carton with a WMS

Leave a comment

Cameron’s Specialty Coffee and their Mission:

A smooth cup: Part of Cameron’s mission is to provide a smooth cup of coffee by handpicking the best beans in the world. However, their mission goes beyond that.

All around the world: Cameron’s Specialty Coffee is directly involved with the farmers supplying them with their coffee beans. Members of their team go around the world to meet farmers and their families to build a relationship based on social responsibility. Cameron’s is therefore dedicated to help their farmers grow in a healthy environment.

A Green Company: Cameron’s feels responsible not only for its partners but for the environment. Therefore, they strive for eco-friendly processes. They are dedicated to minimizing their footprint through big and small actions such as minimizing water consumption and using recyclable materials.

 

Cameron’s Specialty Coffee’s Supply Chain Needs

 

To accomplish their goals, Cameron’s Coffee had to overcome three challenges, all of which required a change to their inventory management.

-Responding to growing eCommerce demand

-Responding to growing expectations for traceability in the Food and Beverage industry

-Replacing their paper-based processes

By first replacing their paper-based process to an electronic one, we can simultaneously resolve their other challenges.  Adapting inventory processes enables employees to be more efficient, and the reduction in error would equip Cameron’s Specialty Coffee with the right strategy to satisfy their online customers. The same goes for satisfying visibility standards by tracing all ingredients, where use of real-time data instead of paper processes would yield greater inventory visibility and traceability.

Sustaining growth: Cameron’s saw much growth in the last few years. eCommerce grew particularly fast during the Covid-19 pandemic. Additionally, Cameron’s was purchased by a larger Colombian company, which also increased the scale of their operations.

 

Using a WMS

 

Cameron’s Coffee turned to Generix to automate their processes and implemented WMS Solochain.

Managing growth: As a result of a 50% growth in demand, they had to enlarge their warehouse space by more than 25% between 2018 and 2020. Switching from paper-based processes to a WMS and automation made sure that Cameron’s could absorb all this growth without being overwhelmed by it. The implementation of the WMS also enabled them to do more with less: they did not have to increase the headcount of their finance department. They simply made it more efficient.

 

Attracting the New Generation of Warehouse Employees

 

Opting for the WMS solution also allowed smooth integration of the new processes with the warehouse employees as well as with those from finance. Employees prefer using tablets and computers to stacks of paper because they are polyvalent and interactive. It also relieves them from having to carry around a lot of material such as pens, notepads, and clipboards and all while operating warehouse equipment such as forklifts. The tablet replaces all those objects and are easy to carry.

To maximize efficiency, the system also needs to be user-friendly. The employees from Cameron’s Specialty Coffee reported that they adjusted quickly and easily to their new tool. Learning the ways of the warehouse was also made easier on new employees since processes are clearer in the WMS display than learning every corner of the warehouse by heart.

Warehouse automation also made work easier for people in the finance team since they could easily understand all the warehouse workflows and processes. Gone are the times of having to read people’s handwriting on sheets of paper.

In the end, automating the processes by making everyone’s job easier, eliminated most errors, whether they be found in the production chain, inventory count, or in shipping.

 

Optimized Processes

 

Thanks to the visibility offered by the WMS, Cameron’s Coffee is now able to reduce waste in its production chain by repurposing coffee beans. For example, if by mistake a batch is over-roasted, it can be easily re-routed to be utilized in the production of a darker roast. The WMS helps ensure that the correct type of bean and roasting degree is respected.

Amy Fitzgerald spoke to us about the implementation process and how enthusiastic the end-users were about switching to a more automated process: “Everyone likes to use electronics, it’s just exciting”, she said. The switch to high tech was also welcomed by end-users since it provided more accuracy for their tasks, leading them directly to locations and preventing errors. This made everyone’s day brighter.

Cameron’s Specialty Coffee had goal-specific challenges which were solved by streamlining processes and optimizing their warehousing operations and production by implementing the WMS and MES.

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), Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES), such 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. 

christmas
Archives, Departments, Dispatches, Global Trade Daily

MERRY CHRISTMAS IN JULY, FROM SEKO LOGISTICS

Leave a comment

SEKO Logistics, which began in 1976 as a single-office operation in Chicago and now has a global reputation for innovation and first-class logistics services, has a special season’s greetings for the supply-chain industry: Get your shipments in order now for the peak Christmas holiday shopping season.

The Grinch causing this disruption: COVID-19, whose “lingering effects . . . meant that the Port of Los Angeles and Long Beach were hugely congested earlier this year by the surge of importing, and it’s only going to get worse before it gets better,” according to a SEKO release. 

Compared to previous years, shipments need to be booked up to eight weeks earlier than usual, according to Akhil Nair, SEKO’s VP Global Carrier Management & Ocean Strategy APAC. “The current global ocean freight supply chain is facing huge issues, none of which seem to be going away any time soon, and definitely not before Christmas,” Nair maintains.

“Based on what we are seeing, the current port-to-port lead times are being impacted by two major factors. One, origin–shippers are unable to get equipment or space to get their cargo out in time. And two, destination–the port congestion is having a severe impact on schedule reliability. This is resulting in further delays–up to 20 days on major export trades from Asia.” 

Bah, humbug!

tariffs
Archives, Global Trade Daily, International Trade

How Will the Biden Administration Enforce Tariffs?

Leave a comment

It was no secret that the Trump administration had an aggressive trade policy with higher tariffs on China, tariffs on steel and aluminum products, new trade agreements, and pulling out of others. Customs duty revenue increased drastically under the Trump administration from $34.6 billion in 2017 to $74.4 billion in 2020. This major increase in revenue for the federal government has left many asking what the priorities will be for the Biden administration when it comes to U.S. trade deals.

Most experts do not expect any drastic changes in the early months of the Biden administration. Biden himself has stated that he will not make any immediate moves on tariffs with China. Some think he will stay tough on trade with China but may ease tariffs with allied countries. It is also presumed that he will make certain exceptions to the Section 232 tariffs on steel and aluminum for imports from certain allies.

These duties and tariffs have not been popular among many importers and foreign exporters. Some of these companies have resorted to fraud to avoid paying what they owe. As a result, the federal government has renewed a commitment to take enforcement action against companies who evade duties owed on imported goods.

Customs duties are implemented in order to level the playing field for U.S. manufacturers. In addition, the money the government collects from these duties goes directly to paying for programs such as veterans’ benefits, education, and infrastructure. When companies scheme to avoid paying the proper duties, they obtain an unfair advantage in the U.S. markets and cheat the federal government and taxpayers. Many companies have found schemes to avoid duties that are easy to pull off and give them a significant advantage over competing manufacturers and importers.

U.S. Customs and Border Protection is responsible for enforcing trade laws, including import compliance and revenue collection. However, CBP has limited resources and can’t possibly check every shipment for compliance. With millions of containers entering the U.S. each day, CBP tries to best allocate its resources to detect the imports at the highest risk of violation, making it easy for many fraudulent schemes to slip through the cracks. Some companies see the low risk of detection as an opportunity to save money by lying on import declarations to avoid paying higher duties.

Importers must declare the value of goods, country of origin, classification of goods, and amount of duties owed. Essentially, the process works on an honor system in which the importer is responsible for making sure the information declared is accurate. However, foreign exporters and U.S. importers have found ways to cheat the system by not accurately reporting information on their customs import declarations. Below are some of the common schemes used to avoid customs duties:

1, Undervaluing goods – Import duties are based on the value of goods as declared by the importer. By undervaluing the price of goods on declarations, importers wrongfully avoid paying the appropriate duties.

2. Misrepresenting country of origin – Shipments imported into the U.S. must be marked with the country of origin. Tariff rates vary by country of origin and certain countries are subject to anti-dumping tariffs and countervailing duties. By disguising the country of origin, importers avoid paying certain tariffs and duties. Most commonly, transshipping is a scheme used to misrepresent the country of origin. Transshipping involves shipping goods to another destination prior to reaching the final point of entry and relabeling to conceal the true country of origin.

3. Misclassifying goods – Import duties are also determined by the classification or category of goods being imported. Importers avoid paying the full amount of customs duties by falsely declaring goods under a different category that is subject to a lower duty.

Since these acts are so easily committed and concealed, customs fraud is often difficult to detect. The federal government relies heavily on whistleblowers to come forward and aid in the undercovering and prosecuting of customs violations. Insiders and competitors are typically in the best position to uncover and report customs fraud.

The False Claims Act (FCA) authorizes individuals to bring a lawsuit on behalf of the federal government and share in the monetary recovery from that lawsuit. Whistleblowers who have evidence of customs fraud may bring a lawsuit under the FCA.

Many people are concerned about reporting their employers or others for committing fraud because they fear retaliation. The FCA ensures whistleblowers are protected from retaliation, such as being fired, demoted, or denied benefits. A whistleblower attorney can help ensure these protections.

Maintaining the integrity of U.S. trade policies is critical to the nation’s economic stability and security. The revenue collected from customs duties belongs to the American people. The federal government, taxpayers, and other U.S. businesses get cheated when dishonest companies scam their way out of paying tariffs and duties. Rooting out these fraudsters is made easier when brave and honest individuals come forward to do what’s right.

________________________________________________________________

About Andrew Miller

Andrew Miller is a shareholder at Baron & Budd where he represents whistleblowers in qui tam cases. To learn more about whistleblower protections, go to www.becomeawhistleblower.com.

intermodal
Archives, Executive Education, Global Trade Daily, News

UPCOMING: Intermodal Association of North America

Leave a comment

Intermodal Association of North America EXPO is the intermodal industry’s platform for products, services, and solutions; a classroom for new skills and know-how; and an exchange for ideas and business.

Join us in Long Beach, California, September 12– 14, 2021 for three days of breakthrough thinking and real connections with intermodal executives from across the world.

From quality exhibitors to more than 700 companies including 3PLs,  global carriers and shippers, and more, the annual event is known as the connecting force behind intermodal freight.

Leaders in the industry can attest to the event, such as South Carolina Ports Authority’s president and CEO, Jim Newsome:

“It’s to have the exposure to the movers and shakers in the intermodal industry,  to learn about trends that are occurring and how one can leverage that to make their business better.”

Visit https://www.IntermodalExpo.com to learn more about the conference, advanced discount pricing and discounted registrations for new IANA members and first-time attendees.

warehouse
Archives, Global Logistics, Global Trade Daily, Warehousing

5 KEY FACTORS TO IMPROVE WAREHOUSE WORKFORCE MANAGEMENT

Leave a comment

The global e-commerce industry could grow up to $2.7 trillion by the end of 2021. Jobs must be filled, and warehouse operations will likely accelerate at an unprecedented pace. Yes, robotics and automation technology can improve the efficiency of the workforce, but the people working in these warehouses still represent the backbone of the industry. 

The five factors that follow are vitally important if you wish to improve your management scheme and enhance morale in the workplace. Do not be afraid to make changes—even if you manage a “well-oiled” machine. Society is changing by the second, and making progress at work requires a few changes from time to time.

Focus on Employee Engagement and Retention

Given the recent boom in demand for warehousing, attracting and retaining talent has become increasingly more difficult. What’s more, this comes down to a lot more factors than simply salary and benefits.  

The more intangible factors include recognition, personal development and opportunities. Or in other words, engagement. An emerging trend in this field is the gamification of warehouse work. Similar to fitness tracker apps, these digital platforms have goals and milestones for employees to achieve. Once achieved, they’re rewarded with both virtual recognition, such as topping a leader board or gaining badges, as well as more tangible perks such as reserved parking spaces and gift cards. 

The idea is to provide positive reinforcement to workers, so instead of doing the minimum required for their paycheck, they go the extra mile and earn lots of small perks along the way.

Aside from the more fun and inventive engagement tactics such as gamification, managers shouldn’t forget the basics. Being present on the warehouse floor for a portion of each shift pattern, and taking a bit of time to check in with staff, is still one of the best ways to build rapport. This also helps nip in the bud any issues that workers may have, before potentially becoming a bigger problem. 

Forming Strategic Partnerships with Staffing Agencies

As warehousing demands continue to increase and seasonality continues to drive peaks, forming strategic partnerships with staffing agencies is becoming more crucial. A good agency that you have a long-term and trusted relationship with can be relied upon to provide quality hires as you ramp up to manage increases in order cycles. 

The more agencies you partner with, the more you’re spreading your risk. Think about an extreme but possible staffing scenario, where order volumes spike to the near physical capacity of the facility. How many additional hires would you need to manage this? How many hires could each of the staffing agencies you partner with be able to provide within a few weeks to a few months? 

This is also where building strategic relationships with the staffing agencies you work with are crucial, so you have confidence that they’ll prioritize your needs above other operators that are also trying to staff for seasonal peaks. 

When it comes to striking the optimal balance between permanent, directly employed workers, and agency temps, the 80/20 rule is a good one to work to. This ensures that the majority of the workforce are committed permanent members of staff “in it for the long haul,” while the remaining 20 percent allows you to easily scale up or down with seasonality. 

Implement COVID-19 Screening and Security

With all warehouse operators having spent the past 12 months getting their premises COVID-19 secure, now is a great time to think about your screening regimen and any improvements you should make.

A debate you may be having right now is what the best type of screening process is for your operations, especially seeing as experts expect COVID-19 to continue having an impact on our daily lives for the whole of 2022.  

There are two broad options available here: symptom screening or virus testing. Symptom screening is the far more affordable option compared to testing and has the least impact on your employee scheduling. App-based screening platforms enable employees to self-screen for symptoms before they leave their homes for the start of each shift. This can also be supplemented by temperature checks on arrival. 

Virus testing, on the other hand, will detect asymptomatic cases and early infections, but the costs can be prohibitive for many warehouse operators. And of course, you need to plan regular testing around shift patterns and consider what the pay implications are of asking employees to report to work 30 minutes before their shift starts to receive an on-site rapid test.

It’s little surprise then that screening employees for COVID-19 symptoms is a more practical solution for many warehouse operators, who are looking for a cost-effective way to protect staff while also lowering a business’s risk of litigation and, potentially, its insurance premiums.  

Reassess Demand and Reoptimize Processes 

Demand for specific goods has shifted enormously over the past 12 months, which has had a big impact on warehouse product velocity. So, the products that were moved most frequently in the recent past may no longer be the case. Therefore, operators need to ensure they’re regularly reassessing their velocity slotting, at a much greater frequency than perhaps they were pre-pandemic, given how volatile demand has been for certain products since. 

As demand levels shift, distribution centers must become a lot more agile, quickly reassigning priority shelving and circulation flows, and relaying this information to employees as part of the process. Employees will then have an easier job on their hands hitting targets if products are being more frequently reassigned to shelving based on up-to-date movement flows.  

Invest in Enhanced Labor Management Systems

With the high demand for warehouse staff pushing up wages, especially with the likes of Amazon paying above average and inflating wages in the areas where they’re based, cost savings will become more crucial than ever throughout 2021. To this end, many operators are focusing on enhanced labor management systems (LMS) to deliver much of these savings.

With the ethos shifting from using these systems to identify underperformers, to instead uncover ways to optimize the workforce, an intelligently deployed LMS can help distribution centers to achieve more with less.

A big focus now with LMS is measuring and comparing the performance metrics across different facilities within the same organization. A few years ago, this would have been prohibitively expensive for many, but thanks to cloud computing and SaaS pay-as-you-go models, this is now easily affordable. And once you can measure something, you can improve it, such as focusing efforts on underperforming facilities.  

But of course, it’s not just at the macro level that LMS are increasingly being used to measure performance; the focus is also on the level of the employee. AI is helping managers to demand forecast in real-time better than ever before, based on pick counts and other KPIs during each shift. So, 2021 could be the year that we start to see fewer managers moving staff around on the fly and instead begin to rely on predictive modeling.    

Ultimately, the past 12 months were focused on survival and rapid-adaption for many businesses. Now we’ve made it through the tough part, it’s time to take a pause, take stock, reassess processes, and then begin optimizing for the new normal. And focusing much of that attention on workforce management improvements is a great investment for any distribution center.

________________________________________________________________

Adam Day is president & CEO of Time Rack, a time & attendance, payroll integration, and HR SaaS platform that provides warehouse time & attendance systems and HR administration services that create work-life harmony. Visit timerack.com to learn more.

maintenance decentralized
Archives, Global Logistics, Global Trade Daily, Software

Why Mobility is Vital for Maintenance Management

Leave a comment

Companies are fortunate enough to be operating during a time when there are several technological advancements regularly occurring in several sectors, including the maintenance sector. From 5g technology to predictive maintenance conducted with the assistance of sensors. The maintenance sector continues to benefit from technological advancements. 

A technological advancement that is sometimes overlooked is the smartphone. We often take for granted the benefits of a mobile device. However, the system can provide many benefits for businesses too. Many companies have already begun integrating mobile applications into their processes and cannot imagine conducting maintenance operations without them. 

While several maintenance applications are operable on a smartphone, from enterprise asset management systems to integrated workplace management systems. The focus will be on computerized maintenance management systems. 

While a CMMS is often usually operated from a fixed desktop within a workstation, this option has never fully gelled with the responsibilities undertaken by a maintenance manager. Maintenance requires employees who are energetic and proactive. Aways on the move. While administrative duties are unavoidable, they cannot be the core focus of a maintenance manager. With this in mind, mobile devices can be seen as a tool that can leverage the benefits of a CMMS and respond to how maintenance employees operate. It is also important to note that in the current business environment a lot more is expected of employees. When you couple this with an increase in machine production, maintenance employees are expected to be more responsive and attend to the task as soon as possible.

A CMMS that is operable on a smartphone instantly increases flexibility and communication among employees. The system provides flexibility by providing a platform for employees to access information whenever they require it. Having the ability to access information whenever necessary means that maintenance employees are empowered to be more responsive when conducting their tasks. Employees can also communicate more effectively when it comes to maintenance activities as they have a platform to upload and review information. Previously this would have had to be done through email or call, which leaves the employees open to miscommunication. Now employees can access and communicate in a simplified way over the CMMS platform. 

Features of a CMMS

Let’s look at some of the features that make a mobile CMMS application vital for so many companies, or whether mobile capabilities are just a nice-to-have.

Work order assignment and monitoring 

Often the first function that comes to mind when looking at the benefits of a mobile CMMS. With a mobile CMMS, employees can be more agile in the way they conduct their work orders. If an employee spots a problem with one of the assets, they can immediately send a notification via the CMMS. This will result in a work order being created and sent to the relevant technician. 

Another benefit of a mobile CMMS is that the manager that oversees the facility, factory or plant, does not need to present to get feedback. Once the technician finishes their work they can upload the details onto the application for review. 

Access inventory on the go

Out of sight, out of mind. This saying is particularly true for inventory. Within large enterprises inventory, such as spare parts or lubricants, is vital. However, often the teams in charge of these items cannot recall whether they have these items or not and how much of it they do have. With a CMMS inventory, data can easily be uploaded and accessed at any time. This allows for efficient utilization when necessary. The accessibility of the information can also help the supply chain team with data that will reduce the company from making unnecessary purchases. 

Keeping track of spare parts is also much easier with a CMMS. The ability to know what spare parts are needed, and what is available can increase the speed at which maintenance and repairs are completed. 

Develop and access maintenance schedules

Maintenance schedules are vital, and one of the main benefits of implementing a CMMS is to simplify the maintenance scheduling process. Having the ability to access the maintenance schedule of a mobile CMMS is just as important. Schedules are more accessible to a maintenance team through a mobile CMMS app. This means that employees can come into the factory in the morning and know exactly what activities they need to conduct for the day. More importantly, with the insight received from being on the floor, technicians can assist in creating more accurate maintenance schedules. 

Conclusion

After looking at the benefits a mobile CMMS provides to employees. From operational flexibility to simplified access to information. We can see that a CMMS with mobile capabilities is no longer a luxury in today’s work environment. But rather a necessity that enables maintenance employees and technicians to operate at the optimal potential. 

_________________________________________________________________

Shayur Maharaj, Marketing Analyst. My interests include researching innovative business ideas that increase the well-being and quality of life for employees. I aim to make an impactful and positive change.

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

The Tech Bet is Essential for 3PLs in 2021

Leave a comment

It’s now clear that consumer expectations are changing at a much faster pace than ever before, especially in the B2C arena. The pandemic has made us realize that market evolution, while already familiar to industry professionals, can be much faster and more demanding than we might think, but undoubtedly irreversible.

Companies are faced with the challenge of adapting their distribution and production models to align their operations with the changes taking place. Being equipped with greater agility, efficiency and transparency is no longer a simple competitive advantage. Every day, new competitors emerge who are well prepared in terms of technology and perfectly able to manage new challenges. Relying on a 3PL capable of offering efficient, robust, and scalable solutions becomes a primary need.

The five key tools a 3PL must have to succeed

–Warehouse Management system

-Visibility Solutions (tracking)

-Electronic data exchange

-Web portals

 

key_tools

 

What does the customer look for in a 3PL partner?

Connectivity

The 3PL must be part of a logistics ecosystem capable of ensuring integration between customers and suppliers. Only in this way can it guarantee the visibility that is essential for a supply chain capable of offering a high-quality service to the end customer.

Collaboration between different partners is an added value for the logistics chain and avoids one of the endemic evils that have always afflicted the supply chain: the interruptions in the exchange of information. Having an integration platform to manage the electronic exchange of data has become an indispensable factor for today’s logistics operators.

On the other hand, it is important that the warehouse management system be capable of integrating with external automated tools, such as sorters, automated guided vehicles (AGVs), RFID, pick-to-light, robots for automated picking, and all solutions that optimize a wide range of processes within the warehouse.

Finally, it is important to emphasize the ability of logistics to provide visibility, both internally and externally, by making use of tools such as collaborative portals, where information related to warehouse operations and shipment tracking can be consolidated. In this case, through connectivity with transportation companies or mobility apps.

Intelligence

The 3PL must have access to information about the client’s operations so that they can make thoughtful decisions and direct interventions toward improving operations based on real and accurate data.

The information also speeds up the billing process for logistics services with tools that collect billable items and issue invoices in EDI or any other format.

Scalability

The 3PL needs to focus on Software as a Service (SaaS) tools. Businesses and markets can change in a matter of months, so it is essential to be able to adapt quickly. A SaaS operating model allows for scalability, but it also reduces “time to market” by allowing various information systems to be integrated in a shorter timeframe.

Speed

The 3PL must be able to respond in moments of peak activity.

Logistics has become an increasingly short delivery time, so it is essential to react quickly, not only to manage peaks in activity, but also to be able to adapt with agility to the different ways of preparing orders. In this sector, warehouse management software is an essential tool for achieving the degree of planning and process automation necessary for the rapid and efficient execution of activities.

What technologies do customers require from a 3PL?

Technology has now been implemented within the entire supply chain, and the technology is advancing rapidly. Current logistics operators are aware of this, just as they know that present and future economic investments will have to go in that direction if they want to remain in the market and compete with new operators, who are starting with the best technology.

A bit like a race where you never reach the finish line, in the future technologies will evolve and shift to Big Data, Artificial Intelligence and Machine Learning. Technologies that will profoundly transform logistics and, more importantly, allow whoever adopts them to have an advantage in quality and an unbeatable positioning. Providing the customer with a plus in service, such that they do not have to resort to strategies based solely on prices, which are the biggest threat to the profitability of the logistics sector.

Tools that can bring tremendous value to the supply chain are the adoption of a control tower that can provide greater visibility across the chain, the use of blockchain, automated warehouses and robots to manage repetitive tasks such as warehousing, order picking, and arranging goods on the loading docks.

Investing in this type of technology will:

-Provide quick responses to the consumer.

-Take advantage of excellent customer service.

-Focus on differentiating yourself from the competition, a goal that, from a pricing strategy perspective, will allow you to provide a service that others cannot.

-Have an unprecedented amount of data that enables comprehensive supply chain analysis.

-Improve warehouse storage density.

-Increase the productivity potential of different operations.

Generix software for 3PLs who want to adapt to customer needs

The Generix Supply Chain Hub platform, which is offered in SaaS format allows logistics operators to manage the supply chain in an integrated and efficient way through its various tools, which have already been mentioned throughout the article.
Warehouse Management System

Recognized in Gartner’s Magic Quadrant, it responds precisely to the needs of the main sectors of activity (retail, eCommerce, automotive, beverages, food…) by providing the flexibility and configuration power demanded by logistics operators.

Generix WMS allows managing multi-warehouse and multi-customer operations through a tool with complete standard functionality. Thanks to its more than 30 years of experience in the market, Generix offers solutions for the management of e-commerce flows, the invoicing of logistics services or the connection with automated systems.

Technology is the bet that the most competitive 3PL companies are making to keep up with market demands and to be able to meet their customers’ expectations. We are facing a difficult but exciting change that will undoubtedly transform the logistics sector in a very short time.

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.

sawnwood
Archives, Global Trade Daily, News

Prices in the American Sawnwood Market Went Through the Roof Amid Construction Boom

Leave a comment

IndexBox has just published a new report: ‘U.S. Sawmill Products Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

In 2020, the construction boom in the U.S. set off an unprecedented demand for sawnwood, outpacing the rate of recovery from disruptions due to Covid. With stocks depleting, product prices have skyrocketed over the previous year. From February 2021, lumber mill utilization began to fall following a softened activity in the construction sector. According to the results of the year, growth in the sawnwood market is predicted, stimulated by a continuing increase in construction.

Key Trends and Insights

The construction boom in the U.S. has driven a record demand for sawnwood in 2020. Throughout the year lumber mills were at 80-90% utilization. Sawnwood production increased by 5% y-o-y compared to 2019 and reached 71M tonnes. Lumber futures on the Chicago Mercantile Exchange peaked at $1,515 in May 2021, up 300% from the same period in 2020.

The maximum utilization of lumber mill capacities was suitable in January 2021 (92%), but in February it dropped to 83%, and lumber production declined due to a curtailment in demand from the construction sector. Despite the record demand for new housing, construction companies are slowing down their activity due to land shortages, rapidly growing material costs and labor shortages.

In March 2021, there was a drop in sales for single-family houses, which was caused by a shortage of ready-made houses on the market. In some areas, the situation is so tense that some buyers are applying for all free lots, which very quickly sell out. Against the background of increased demand, housing prices continue to rise, which alongside rising food prices, accelerates inflation.

The high vaccination rate in the U.S. allows to expect a gradual return to normal activities, which will support economic growth. The housing shortage will remain in the coming years, which will stimulate growth in construction and increase the demand for sawnwood. The American sawnwood market is expected to grow at an average annual CAGR of 3.4% and to reach 101M tonnes by 2030.

American Sawnwood Market Size

The U.S. sawmill product market was estimated at $28.7B in 2020, increasing by 4.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +4.5% from 2013 to 2020.

Imports into the U.S.

In 2020, supplies from abroad of sawmill products decreased by -11.2% to 9.3M tonnes, falling for the second consecutive year after three years of growth. In value terms, sawmill product imports totaled $5.8B (IndexBox estimates) in 2020.

In 2020, Canada (8.6M tonnes) was the main supplier of sawmill product to the U.S., accounting for a 92% share of total imports. It was followed by Brazil (258K tonnes), with a 2.8% share of total imports.

In value terms, Canada ($5.2B) constituted the largest supplier of sawmill product to the U.S., comprising 90% of total imports. The second position in the ranking was occupied by Brazil ($128M), with a 2.2% share of total imports.

In 2020, the average sawmill product import price amounted to $626 per tonne, picking up by 13% against the previous year. Over the last seven years, it increased at an average annual rate of +2.4%.

Average prices varied noticeably amongst the major supplying countries. In 2020, the country with the highest price was Canada ($612 per tonne), while the price for Brazil amounted to $496 per tonne. From 2013 to 2020, the most notable rate of growth in terms of prices was attained by Canada.

Source: IndexBox Platform

cosmetics
Archives, Global Trade Daily, International Trade

Cosmetics: To Cope with Booming E-commerce, Manufacturers Deploy Warehouse Robots

Leave a comment

The cosmetics industry in France is a major driver of the economy. Despite the drop-off in exports caused by the pandemic, the sector achieved total revenues of over €15.7 billion in 2020 and leads the world with a 24% share of the global cosmetics market. The exceptional circumstances over the past year have had another effect on the industry – they have amplified consumer trends and pre-existing purchasing practices such as personalization, transparency and the boom in online sales. The net effect has been the total disruption of the product mix occasioned by, for example, the surge in demand for natural, healthy products and a fall in the demand for lipstick.

Against this background, in addition to its usual challenges – time to market, the growing demand for personalization and the management of peaks in activity – the cosmetics industry is being compelled to change and adapt its logistics model. Warehouses are having to automate storage and order picking without losing sight of the particular nature of personal care products – high unit values, tight technical specifications, critical shelf life and low individual despatch unit volumes – in order to be fully effective strategic assets, delivering products increasingly quickly and meeting new consumer expectations.

The benefits of Goods-to-Person robotization in meeting new logistics challenges

As new trends coalesce into a dynamic that demands a response, Goods-to-Person robotization – where robots transport shelf units containing goods to operators – is set to revolutionize logistics in the cosmetics industry.

– Given the change in consumer behavior and habits: In response to new consumption trends, today’s cosmetics industry is setting its sights on omnichannel sales and distribution together with digital technology. Consumers are demanding a simplified buying journey in every channel, from next-day delivery by e-commerce sites to click-and-collect, and a smooth item return process for online purchases. In warehouses, this rapid omnichannel delivery is translating into an exponential increase in retail order picking activity, which is both time- and resource-consuming.

Advantages of Goods-to-Person robotization: Besides reducing storage space by up to 30% using mobile shelf units where many products can be economically stored in small quantities, the Goods-to-Person robotics solution guarantees quicker picking of retail orders. It eliminates unnecessary movement and actions by operators to ensure the careful handling of fragile products. The gain in picking productivity can be as much as 40%.

– In this age of hyper-personalization: The other great challenge facing the cosmetics industry is the advent of hyper-personalized cosmetics where the ingredients and packaging are adapted to match consumers’ individual requirements. To this is added a boom in kits that allow consumers to make their own beauty products. The impact of these developments on warehouses is an increase in the range of products to be stored and picked, the need for short or on-demand production runs complying with the regulations on cosmetics (which are particularly demanding in Europe) and the need for personalized packaging combined with adherence to tight delivery times.

Advantages of Goods-to-Person robotization: Goods-to-Person robotization enables small quantities to be picked rapidly and moved seamlessly to areas where orders are personalized in terms of labeling, preparation and/or packaging.

– Ever-increasing trackability and transparency: Another fundamental trend rapidly becoming established in the cosmetics industry is the demand for natural products and the consumers’ need for transparency, reinforced by the Covid-19 crisis. Consumers now want sustainable products, in phase with their concerns, together with all the necessary information on their ingredients, origin and manufacturing process. Their desire to care both for themselves and the environment looks set to continue as “clean” beauty, eco-friendly packaging, short supply circuits and products made in France gain in popularity. Trackability of products in the warehouse is a key factor in meeting the consumer-driven demand for transparency.

Advantages of Goods-to-Person robotization: Scallog’s Goods-to-Person robotics solution makes it possible to optimize locations according to batches, expiry dates, etc., and to ensure flawless trackability throughout the picking process.

– And therefore security: This demand for trackability is linked to that of security. Cosmetics products are recognized for their high monetary value, which increases the risk of theft. Cosmetics manufacturers must mitigate the risk of products “flying away” from warehouses that run a multitude of processes and are often staffed by a high proportion of temporary staff. Any solution that helps to combat theft and shrinkage improves the manufacturer’s margin.

Advantages of Goods-to-Person robotization: The Goods-to-Person system is based on a fully enclosed and secure storage area in which robots operate, moving shelf units. In addition, when picking orders, operators are guided and monitored in everything they do.

– Many triggers that cause peaks in shopping activity: The cosmetics industry today offers consumers many incentives to shop in order to boost its sales. To the traditional festive season, always a time of high shopping activity, are now added promotional offers, Valentine’s Day, Black Friday, Cyber Monday and similar “special” events that result in booming sales of perfumes and cosmetics over a few days. Warehouses must once again cope with a significant increase in order picking over a short period.

Advantages of Goods-to-Man robotization: Scallog’s Goods-to-Person robotics solution absorbs peaks by smoothing order picking efficiently and cost-effectively. It handles increases in order picking requirements by extending its operating times, only needing limited additional human resources.

A competitive and dynamic sector, the cosmetics industry is having to reinvent itself and its logistics model in response to today’s unusual situation. The main post-Covid-19 challenges, wide-scale sustainability and “naturalness” – natural ingredients with recyclable, zero-waste packaging – all represent sources of growth for the industry. Goods-to-Person robotization can play an important role in maximizing this opportunity as its flexibility, adaptability, productivity and sustainability are guaranteed!