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The Continued Fall-Out from Demise of Yellow Trucking

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Global Logistics, Global Trade Daily, logistics, Trucking

The Continued Fall-Out from Demise of Yellow Trucking

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The US trucking industry recently bid adieu to one of the sector’s oldest firms – Yellow. On the heels of turning 100, Yellow shut down in July and at the time was the third-largest US carrier in the less-than-truckload (LTL) market. LTL firms like Yellow work with terminal networks to haul in freight pallets, transfer the merchandise onto trailers, and push the products out to their final destinations. 

Terminals are highly valued as they are generally close to cities to help speed the delivery process to regional businesses. Yellow owned a network of approximately 170 terminals, estimated to be worth roughly $1.5 billion. As the nearly 100-year-old behemoth was dismantled, a host of rivals lined up to consider the purchase of said terminals. Rival trucker Estes Express Lines came in with an initial offer of $1.3 billion. Old Dominion Freight Line followed with $1.5 billion. 

A bankruptcy court-supervised auction is slated for October 18th. While Old Dominion is the likely buyer there will be plenty of bids from rival trucking firms as well as the industrial real-estate sector. The sheer quantity of ready-to-operate facilities that will be available is quite rare. Trucking terminals are expensive to build and the space, especially in large cities, is scant. 

Earlier this summer Yellow sold a Compton, California single terminal for $80 million. The terminal was situated in a high-demand area – close to two of the country’s busiest seaports as well as Los Angeles City. The hefty price tag had to do with the population density. Terminals in less densely populated areas are much cheaper. 

Yellow will be seeking to repay its largest creditors. One of those is the US government to the tune of approximately $700 million. Yellow holds $1.92 billion in total liabilities and the company’s lawyers have let the bankruptcy courts know that they expect to raise the funds necessary to repay all creditors. The rumored real estate value of Yellow’s portfolio is $1.1 billion coupled with $900 million worth of trucks (11,700) and trailers (36,000).    

It is more than likely that one buyer ends up with all the terminals. Yellow will want to find the quickest and easiest transaction as opposed to negotiating with smaller, regional carriers on separate terminals. Some industry analysts are not confident Yellow will receive the appraised value of its equipment. Yellow’s fleet of newer trucks could go for as much as $100,000 but the models with high mileage will see suppressed offers. Used trailer and truck values skyrocketed during the pandemic but lagging freight volumes have suppressed the demand for trucks since midway through 2022. 

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Global Logistics, Global Trade Daily, News, Ocean Ports

Focusing on Hidden Details can Save Charters Huge Sums in Demurrage Costs, Says Voyager Portal

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Charterers can save hundreds of thousands of dollars of unnecessary demurrage costs by drilling down to the detail – and acting on what they find, says Voyager, the operations and demurrage management platform for bulk commodity shipping.

Two remarkable case studies demonstrate the value gained by customers using Voyager’s Statement of Facts (SoF) Parser and Demurrage Module. In both cases, hidden details in routine operations have been uncovered, leading to significant savings.

One customer is leveraging the Voyager technology to conduct root cause analysis of its port calls, specifically focusing on weather. At one specific port, the data showed that heavy winds were leading to an average two-hour delay per call – costing the company more than US$200,000 per year.

On reviewing its contracts, the company could see that delays due to weather were still entirely for the charterer’s account – even though it is common practice to share the cost of delays due to unforeseen weather conditions.

In the second case study, wasted time was the issue. SoF data showed that an ‘inspector/surveyor’ arrived at the side of the vessel at 13.15 and ‘gangway down’ was at 13.48, but ‘inspector on board’ was not logged until 14.15.

The time spent at the side of the vessel before coming on board might appear to be a tiny detail – but it represented US$625 in wasted time.

By using Voyager’s data and reports, the operator noted that the particular behavior of this surveyor, and of other providers, was happening for a significant portion of its voyages – costing an estimated US$137,000 over one year of operations.

The maritime sector is focusing intently on efficiency and cost optimization but one area that still has significant challenges is demurrage, said Voyager co-founder and COO Bret Smart.

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Global Logistics, Global Trade Daily

How to Amend 5 Factors Driving Younger Workers Away From the Supply Chain

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There is a severe labor shortage in many essential roles in the sourcing, manufacturing, shipping and logistics sectors. Baby boomers are leaving in droves as they reach retirement age and the younger generations of workers have no desire to work in the supply chain.

Why aren’t Millennials and Gen Z interested in the numerous job openings? What can business leaders do to improve their hiring success among these demographic groups? 

Here are some effective strategies for attracting and retaining young workers in supply-chain occupations.

The 5 Factors Driving Young Workers Away

Everyone has a personal reason for avoiding a career path, but these five overarching themes have clearly impacted young people’s career decisions.

  • Lack of Awareness

The biggest reason for the supply chain’s talent shortage is a general lack of awareness among Millennials and Gen Z. Many people don’t know about the numerous job positions available in this industry and only consider the entry-level roles, such as warehouse workers and truck drivers. They don’t see the advancement opportunities hiding behind the scenes.

Moreover, many people don’t know what a supply-chain job entails or the industry’s challenges. A 2022 survey of economic literacy found 40 percent of Americans can’t give a concrete definition of “supply chain” or explain its current state. Employers must do their part to raise awareness for the industry, for the sake of the company and for the country.

  • Weak Culture

A strong company culture is one of the main things young workers look for when browsing for new jobs. They want to work with friends, not with acquaintances. 

They want the company to make the work environment fun and supportive, not bland and disconnected. Creating this environment can be challenging in the fast-paced world of supply chain management.

  • Differing Values

Young workers might also have values that differ from supply chain companies. Sustainability and work/life balance are the top two priorities for Millennials and Gen Z. 

While there are many initiatives to make supply chains more eco-friendly, it’s impossible to guarantee a balanced work schedule for entry-level positions in this industry.

  • Limited Hybrid Opportunities

Almost half of all work-eligible people in the 18-29 age range say they prefer the hybrid work model over a 100 percent in-person position. Most supply-chain jobs have to be in person all the time, which presents a major conflict of interest. This problem has become much more prevalent in the last few years, thanks to COVID-19.

  • Obsolete Technology

The final major factor driving younger workers away from the supply chain is obsolete technology. Millennials and Gen Z grew up in the age of the internet, and are more tech-savvy than baby boomers. 

They don’t want to work in an environment with outdated and dysfunctional devices. They want to use state-of-the-art tools to make their jobs easier and accelerate their career advancement.

How Businesses Can Make Amends

Supply chain companies can’t force young people to change their attitudes about the industry, but they can provide new information to sway their opinions. Here’s how businesses can amend their relationships with the next generation of employees and rebuild their workforces for the foreseeable future.

Increase Brand Visibility

The most important thing businesses can do to attract young workers is increase brand visibility. That means getting active on social media and drumming up interest in supply-chain issues. 

It’s not an easy subject to discuss with college-aged people, but company representatives can make it more interesting by highlighting the career benefits and unique success stories.

For example, the Council of Supply Chain Management Professionals conducts a biannual survey of young workers in the industry. The latest poll from 2021 found 99 percent of young professionals believed they made a quality career choice, while 95 percent were excited about training and advancement opportunities.

Interacting with underrepresented groups — namely young women — is especially important for raising awareness and increasing the talent pool. The average driver age in the for-hire over-the-road truckload industry is 46, and although women make up almost half of the entire U.S. labor pool, only 6.6 percent are currently working in this specific sector. 

Show Off the Culture

Along with staying active on social media, showing off your culture is the next essential step to attracting young workers. The Forbes Business Council outlines five key steps to developing culture in the workplace:

  • Accept that culture matters: A strong culture can attract and retain talent, and is even more important than salary for most people.
  • Define and share the company’s mission, values, and goals: Every company should be able to explain its mission statement, value system and long-term goals to prospective employees.
  • Encourage healthy communication: A strong culture allows employees to share their ideas, questions and concerns freely. Consider setting communication guidelines to establish a firm hierarchy and avoid confusion.
  • Prioritize employee well-being: Companies must treat their workforce respectfully and compassionately. Mentorship programs, leadership development, learning opportunities and support groups are foundational pieces of an empathetic culture.
  • Monitor and nurture the culture: Those pieces are also crucial for monitoring and nurturing the culture in the long run. Establish connections between old and young employees through company traditions and activities.

Building a strong culture also addresses any conflicting values the company might have with young workers. Hiring teams can demonstrate their commitment to work/life balance during the interview process. Talk about the company’s work schedules, PTO policies, sick days, mental health resources and any other factors that might sway a young interviewee’s decision.

Offer Flexible Work Options

Supply chain companies should offer more than one scheduling option for each opening. Providing hybrid or remote opportunities for positions that do most of their work online is a good starting point. The idea is to provide a schedule so employees can complete tasks when they’re most productive rather than fitting everyone into the same box.

For positions that have to work on-site, companies should offer a reasonable break policy to avoid overwhelming employees and maintain their quality of work. HR departments must emphasize these policies during onboarding and encourage employees to take full advantage of them.

Invest in New Technologies

Lastly, investing in new technologies demonstrates a full commitment to the next generation. Artificial intelligence software, project management tools, automated mobile robots, autonomous guided vehicles and wearable devices are just some of the latest technologies making waves in the supply chain.

Millennials and Gen Z have been surrounded by technology for their whole lives. They expect their employers to be up to date on recent developments. If companies want to attract talent from these generations, they must show off their tech resources every chance they get.

Appeal to the Next Generation

Most young workers might not see supply chain operations as a desirable career path, but business leaders can do several things to change that attitude. It starts with increasing brand visibility on social media, showing off the workplace culture, providing flexible work schedules and investing in new technologies. 

These four pillars will appeal directly to the next generation and set the company up for future success.

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3pls, Global Logistics, Global Trade Daily, Technology

How AMRs Are Fulfilling the Potential of Automation in Modern Supply Chains

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Supply chains have been slow and disruption-prone in the COVID-19 era, largely because of operational deficiencies and a lack of skilled labor. 

Automated mobile robots (AMRs) can address both challenges by replacing outdated technologies and giving the workforce a boost of artificial manpower.

Here are some ways that AMRs are fulfilling the potential of automation and getting modern supply chains back on track.

How Do AMRs Function?

An AMR is a type of robot that can perform tasks without human guidance. It’s the next step in the evolution of autonomous robots, coming after the autonomous guided vehicle (AGV) that could only do certain predetermined tasks under close supervision. While AGVs are still useful for transporting materials and working alongside human employees, AMRs bring more value.

AMRs use a variety of sensory technologies including cameras, magnetic tapes and lasers to process their environments, which isn’t a new concept. AMRs are so special because of their artificial intelligence and machine learning software. When a sensor identifies an unexpected obstacle, the built-in software can immediately reroute the robot and continue its assigned task.

What Are the Different Types of AMRs?

AMRs fall into three broad categories based on their functions — transportation, order picking and sortation. The main AMRs for transportation are self-driving versions of traditional vehicles — namely self-driving trucks that can reduce congestion and fuel consumption on busy supply routes. Self-driving forklifts and pallet jacks are other common examples.

The main AMR devices for picking orders are industrial robotic arms, which fill the positions of assembly line workers in warehouses or manufacturing plants. There are numerous types of robotic arms that play key roles in supply chain automation, including multipurpose six-axis robots and collaborative robots that are designed to work alongside humans.

High-speed tilt tray robots are the primary AMRs that warehouses use for sortation. They include a simple reclining tray and barcode reader to classify products into their appropriate incoming or outgoing lines, but the AI software works at a much faster and more efficient rate than human sorters.

Benefits of Using AMRs

AMRs are admittedly challenging to adopt because of their deployment and reconfiguration costs compared to AGVs. Feeding an autonomous robot new information and keeping it in good condition is hard work. However, the long-term benefits far outweigh the costs. Here are the biggest reasons why supply chain professionals should invest in AMRs.

Compensates for Lost Labor

The most immediate benefit of using AMRs is the compensation for lost labor. Wholesale trade and manufacturing were among the hardest hit industries by the Great Resignation that took place from 2020 to 2022. These sectors have more than one million combined job openings in the U.S. as of March 2023. 

Rather than attempting to hire more employees, companies can fill those empty roles with AMRs instead. AMRs are the ideal devices for the mundane and repetitive tasks that make up a majority of supply chain processes. Robots can move, pick and sort the entire inventory while humans continue to occupy more people-oriented departments.

Greater Supply Chain Efficiency

Outsourcing monotonous tasks to AMRs leads to greater efficiency at every step in the supply chain. They remove human limitations from the equation, leading to fewer errors and allowing operations to run 24/7. Managers no longer need to account for independent variables such as an employee’s health or mood on any given day.

Fleets of self-driving trucks can transport goods with better driving techniques and thus fewer delays. Self-driving forklifts, pallet jacks and other warehouse devices can move items to their assigned destinations with pinpoint accuracy and cause no damage. Industrial robotic arms also operate with surgical precision when assembling and packaging products, minimizing waste.

Safer Work Environment

Implementing autonomous robots also creates a safer work environment. AMRs use safety-rated LiDAR systems, one example being the OTTO Lifter. It has a 360-degree view of its surroundings, allowing it to avoid accidents that may lead to injuries.

Instead of having a bunch of employees driving forklifts around a warehouse with innumerable obstacles, managers can switch to AMRs that navigate around obstacles without error or hesitation. Similarly, performing dangerous tasks like incisions, welds or handling hazardous materials is much safer in the hands of a robot rather than a human.

Higher Product Quality and Quantity

When a company maximizes its safety and efficiency, the inevitable result is higher product quality and quantity. Every item that an AMR handles will look and function the same. On the rare chance that a defect occurs, managers can add that information to the AMR’s software to ensure it never happens again. 

Manufacturing products with this level of accuracy also leads to a higher overall output. AMRs can’t directly solve the shortages of raw materials in various industries, but they can get the most out of the limited resources a company has. Moreover, AMRs can absorb new data, make objective decisions and adapt to external variables in ways that humans can’t.

Significant Savings

The final benefit of using AMRs in supply chain operations is significant savings — both from operational costs and scaling. Safe and efficient operations yield great savings because companies don’t have to pay for equipment damage, defective products, employee accidents and other disruptions. Labor costs are also much lower with AMRs included in the workforce.

AMRs are also highly flexible, so businesses can add them to their growing operations as needed. This unmatched scalability allows managers to free up capital for other expenditures and add more AMR units over time. Investing in a new technology in the long run is more affordable than modifying or replacing a fixed system in the short term.

Keeps Up With Supply Chain Trends

Lastly, businesses that invest in AMRs have made a critical step in following the latest supply chain trends. With the rise of lightning-fast e-commerce and changing customer expectations, the demand for speed and efficiency has never been higher. Human employees in a depleted workforce can’t keep up with this demand, but AMRs can.

Armed with scalable robotic solutions, companies can adapt to the changing attitudes of their customers without missing a beat. They can easily change an AMR’s functionality by adding new data to the software instead of causing downtime to upgrade the facility. AMRs operate independently and can shift to a new task or location without hiccups.

AMRs Are the Present, Not the Future

New technologies like AMRs often get discussed in terms of future benefits, which is a mistake. AMRs are the present, not the future. They are playing critical roles in supply chain optimization right now, and they will only become more indispensable as time goes on. Business leaders need to invest in AMRs now if they want to overcome today’s economic challenges.

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3pls, Global Logistics, Global Trade Daily

Top Five Strategies to Fortify Supply Chains in 2023

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Developing a robust risk management strategy is vital for businesses. It enables them to tackle potential supply chain risks head-on and establish resilient plans that can withstand unforeseen challenges. Despite the backdrop of significant supply chain disruptions in recent years, it’s evident that a number of organizations are still in the process of enhancing their preparedness. A survey conducted by Hubs, involving over 300 participants, revealed that a significant 76.6% of companies encountered disruptions in 2022. This underscores the need for further efforts to fortify businesses against upcoming supply chain challenges.

This article sheds light on key elements for organizations to establish a resilient supply chain. Interestingly, these very solutions found resonance among participants in Hubs’ survey.

1. Automation

2. Reserve inventory

3. Geographical diversification

4. Agile internal processes

5. Supply chain monitoring.

1. Automation

With Robotic Process Automation (RPA), many repetitive manual tasks can be digitized and streamlined, reducing supply chain complexity and lessening reliance on manual labor.

Automating the Request for Quote (RFQ) and design for manufacturability (DFM) processes allows companies to provide precise quotes in a matter of seconds. Instead of relying on conventional rule-based quoting methods, the integration of machine learning algorithms enables instantaneous quotes when a customer uploads a CAD file.

Automation also helps businesses break down silos and streamline the sharing of data among supply chain links. By using industrial IoT devices such as smart shelves and sensors, data can be gathered for warehouse monitoring. This, in turn, allows suppliers to pinpoint inventory needs and identify supply chain bottlenecks and vulnerabilities.

2. Reserve inventory

Though it goes against lean manufacturing principles, building a reserve inventory can significantly improve supply chain resilience. This approach effectively creates a buffer, ensuring that if a link in the supply chain breaks, there is ample inventory to maintain operations while the link is restored. It is especially beneficial to maintain reserve inventory for critical parts and those not easily sourced from alternative suppliers.

While cost has been an obstacle to the widespread adoption of reserve inventory strategies, the rise of AI-driven cost analyses and predictions is changing the landscape. Supply chain partners will soon be able to more accurately forecast the likelihood and cost of supply chain disruptions, balancing these against the expenses of bolstering inventories.

3. Geographical diversification

Recent events have highlighted the importance of diversifying supply chains. For instance, pandemic lockdowns in China halted manufacturing at various times between 2020 and 2022, and Europe’s heavy reliance on Russia for gas resulted in notable energy shortages in the first half of 2023. In our latest survey, 41% of companies indicated that diversifying their supply chain is the optimal strategy to avert future disruptions.

With a robust, distributed network of suppliers or potential suppliers, supply chains can adjust to regional disturbances and shifting geopolitics. If one geographic area is impacted, suppliers from another region can step in to bridge the gap. Establishing a sturdy and varied network of suppliers is challenging. Companies that lack internal resources to get this done, can turn to distributed manufacturing platforms like Hubs.

4. Agile internal processes

Supply chain resilience isn’t just about external flexibility; internal processes play a crucial role too. Large organizations should be more receptive to agile processes, allowing team members to move swiftly and dynamically in business growth. Promoting cross-functionality and granting teams more autonomy can make internal procedures, such as product development, faster and more adaptable.

An agile approach prioritizes ongoing collaboration with clients and stakeholders at every step. By continually refining based on their feedback, we ensure superior product quality, clear processes, heightened efficiency, and minimized risks, with projects under constant observation and assessment.

To put things in perspective, during the pandemic, 93% of businesses observed that their agile units outperformed their non-agile counterparts.

5. Supply chain monitoring

In the manufacturing industry, tier-one suppliers provide parts or materials directly to the original equipment manufacturer (OEM). Tier-two suppliers supply these parts or materials to tier-one suppliers, while tier-three suppliers do the same for tier-two suppliers. While many businesses focus on the first and second tiers because of their apparent importance, broadening their scope could offer added advantages.

Tier-three suppliers can have a substantial impact on the entire supply chain. Delays from these deeper-tier suppliers can ripple through and disrupt the entire supply chain. Monitoring suppliers across all levels allows businesses to detect potential issues early on, preventing larger disruptions down the road. However, the intricacies involved in tracking everything from raw materials to the finished product might explain why only 11.6% of survey respondents viewed extensive supply chain monitoring as a vital measure against disruptions. Fortunately, the emergence of specialized software tools has made supply chain monitoring more accessible.

Furthermore, companies are increasingly tapping into AI and machine learning to enhance supply chain efficiency. While a mere 13.1% of surveyed companies admitted to leveraging AI and ML, an impressive 90.9% of those who did found it extremely beneficial.

This article is a part of Hub’s Supply Chain Resilience Report 2023. You can download the complete report for free by clicking here.

About Hubs

Hubs is an on-demand digital manufacturing platform that was founded in Amsterdam in 2013. The platform offers easy access to a wide variety of manufacturing capabilities supplied by a global network of more than 300 manufacturing partners. Hubs was acquired by Protolabs in 2021 to bring customers the world’s most comprehensive manufacturing solution.

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Global Logistics, Global Trade Daily

10 Factors to Consider When Choosing a Logistics Management Software

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Logistics management is critical in today’s fast-paced corporate setup for streamlining the supply chain and guaranteeing seamless operations. As an organization’s logistical requirements keep rising, it becomes clear that manual methods and legacy systems hamper progress. The solution is to invest in reliable logistics management software (LMS). In this blog, we give you ten critical aspects to consider when choosing the best logistics management solution for your organization.

Q.  Can the logistics management software empower my organization to scale operations effortlessly?

Solution: Check the software’s Scalability and Flexibility: A LMS that can fit your current requirement but has no option to grow, would be a waste of resources. Hence, to accommodate growth,  scalability, and flexibility are key to future-proofing your logistics operations. An ideal logistics management solution should adapt to your evolving requirements, allowing you to add new features, and users, and integrate with other business systems seamlessly.

Q. Can the logistics management system seamlessly bridge gaps between departments, eliminating silos and increasing collaboration?

Solution: Look for Integration Capabilities: The ability of the software to interconnect with multiple departments will ensure smooth data flow between various departments and external vendors. Always look for solutions that can integrate with your existing Enterprise Resource Planning (ERP) systems, warehouse management software, and transportation management systems.

Q. How to make reports to inform top management to make easy decisions to steer the company towards unmatched efficiency?

Solution: Ensure Real-time Visibility: Having real-time visibility into your logistics operations will help top management with decision-making and mitigating potential disruptions. A reliable LMS solution provides comprehensive tracking and reporting features. This will enable you to monitor inventory levels, shipment status, and delivery times at any given moment.

Q.Can logistics management solutions foster quick adoption across departments, bringing the entire organization on board without any hassle?

Solution: Check for a user-friendly Interface: A user-friendly interface is critical for widespread adoption within your organization. Employees who are not trained in handling complex software may become resistant to its use, hampering workforce productivity. Through its user-friendly interface, the right logistics management solution simplifies workflows, minimizes errors, and saves critical time.

Q. Does logistics management software have ironclad security measures to protect my valuable logistics data from cyber risks?

Solution: Check for Security and Compliance: The sensitive nature of logistical data demands stringent security measures. Ensure that the software meets industry-leading security and compliance standards. Role-based access control and data encryption protect your data from potential attacks.

Q. Can a logistics management system offer power analytics to make data-driven decisions, leading to continuous process improvements and competitive advantages?

Solution: Test Analytics and Reporting: Data-driven insights are critical for identifying areas for improvement and optimizing logistical procedures. Look for software with powerful analytics and reporting capabilities that will enable you to acquire useful business intelligence from your logistics operations.

Q. Will the logistics management software provider offer employees a dedicated support team  through the software’s implementation and usage

Solution: Check for Customer Support and Training: Implementing new software presents obstacles and strong customer support may make or break the process. Choose a logistics management solution vendor that provides comprehensive training and continuous assistance to enable a smooth transition and full use of the system’s capabilities.

Q. How good is the logistics management system with flexibility requirements based on data-on-the-go?

Solution: Ensure Mobile Accessibility: In a mobile-first environment, the ability to access logistical data on the fly can have a substantial impact on decision-making and responsiveness. Logistics management software that includes a mobile application allows your team to stay connected and make key decisions from any location at any time will be crucial for business success. 

Q. The investment cost of a logistics management solution is high, how to convince the top management to bring about the change (digitize operations)?

Solution: Measure cost-effectiveness: While investing in a logistics management system is a vital step toward optimization, the return on investment (ROI) must also be considered. Look for a solution that strikes the perfect combination of price and features, resulting in long-term savings and increased productivity.

Q. How to choose the right logistics management software?

Solution: Check Industry Reputation and References: Finally, before making a selection, look into the software provider’s reputation and get recommendations from other companies that have used the same solution. Positive feedback and success stories from other firms instill trust in the software’s capabilities. This will ensure you embark on your transformative journey with the utmost confidence.

Conclusion

Choosing the best logistics management software is an important decision that affects the performance and effectiveness of your supply chain operations. Whether you want to convince the top management or at the top level, you must invest in a solution that optimizes logistical processes, streamlines operations and boosts the organization’s competitiveness. By taking these ten crucial factors into account, you can be assured to find your ideal logistics management solution. Remember that the right software is more than a simple tool; it is a driver of progress and growth in the fast-paced world of logistics management.

Author Bio

Matt Murdock works for a leading SAAS-based platform called LogiNext Solutions. Where he helps businesses optimize their logistics operations and improve their delivery performance. With a passion for innovation and technology, Matt is always looking for new ways to streamline logistics processes and enhance customer experiences. In his free time, he enjoys writing blogs based on his experience in the logistics industry. Happy reading!

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Global Logistics, Global Trade Daily

The Introductory Phase of Generative AI and Industrial Supply Chains

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Logistics firms are seeking to capitalize on the generative artificial intelligence (AI) revolution. Vast networks and significant revenue hangs in the balance. Yet, many are choosing to proceed cautiously as the chatbots common in the consumer products world have the sector wary of error rates and the potential fallout. 

There is a big difference between a chatbot fouling up a t-shirt order compared to botching the delivery of millions of dollars worth of goods. For big freight brokers such as RXO, the logistics provider Phlo Systems, and trucking firm XPO, intrigue in advancing with generative AI is there but relegated for the time being to more mundane and less risky tasks such as declaring imports, booking loads, and tracking shipments. 

In November of last year, OpenAI launched its ChatGPT bot. Everyone from law firms to retailers jumped at the opportunity to integrate a technology capable of sifting through massive amounts of information, calling out patterns, and then making predictions in minutes. For law firms this was a no-brainer, allowing the firm to save human resources time on tasks like performing legal research, analyzing contracts, and drafting documents. Retailers capitalized by using generative AI to scrutinize customer search queries and then route them to similar products according to the customer’s profile and purchasing history. 

For many in logistics, however, the stakes are high when you’re relying on generative AI to make supply-chain decisions across dozens of partners along the chain. The data behind aiding manufacturers and retailers to move shipments over air, ground, and sea is fast-changing, proprietary, and very complicated. If something goes awry the last “person” you want to be relying on is a chatbot. 

The previously mentioned RXO is analyzing the automation of customer support for only small and medium-sized firms. This could lessen the burden on sales so they can focus their efforts on new business development. Yet, at the same time RXO understands that a human option will always need to be present in the event something goes wrong – the risk is too great. In the business world being 80% to 90% accurate is not an option, so a hybrid approach is a given. 

From a trucking perspective, XPO is planning a bot to provide customers the ability to receive rate quotes, create pick-up requests, and track their freight. Meanwhile, Phlo Systems works with customs declarations and a chatbot to answer frequently asked questions. There are all introductory steps with a heavy, and appropriate, dose of caution.  

 

 

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Global Logistics, Global Trade Daily, News, Ocean Ports

Qatar Airways Cargo Launches SecureLift: a solution for Valuable and Vulnerable shipments  

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SecureLift is designed to offer optimum protection and secure storage for high-value and vulnerable shipments.

Qatar Airways Cargo today announced the launch of its special product SecureLift under its VISION 2027 and Next Generation strategy. SecureLift marks a significant milestone for Qatar Airways Cargo, as it allocates dedicated resources to cater to the specialized needs of valuable and vulnerable shipments, while maintaining an enhanced standard of security and vigilance.

Products having high declared value like precious metals, stones, gold bullions, banknotes, jewellery or watches would fall under the Valuable category while commodities that carry a risk of pilferage like high value electronics and newly launched products would fall under the Vulnerable category.

Key features include high loading priority, close monitoring of shipments, inclusion of approved data loggers and shipment escorts, in addition to secure handling, transportation and storage of the product. Valuable shipments would also be moved in specialized containers and boxes for protection of the product, and kept in the strong-room with restricted access providing added security.

The temperature inside the strong-room is maintained between 20°C – 25°C. The expert SecureLift team is well trained and plays a pivotal role by adhering to strict security protocols at every stage of the journey.

The cargo carrier achieved a remarkable track record having transported over 9,000 tons of valuable and vulnerable cargo in 2022, including electronics, banknotes, art shipments and various sensitive commodities. This impressive volume underlines the carrier’s expertise in handling cargo requiring special care with exceptional precision and attention to detail.

The carrier offers its customers an extensive network of more than 150 destinations as part of its scheduled services and can also provide part or full dedicated charters for SecureLift products to destinations not part of its network.

Digitalization is a key pillar for the world’s leading cargo carrier and it enhances the service further as SecureLift shipments can now be easily booked through Qatar Airways Cargo’s innovative online platform, the Digital Lounge, streamlining the booking process for customers.

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Global Logistics, Global Trade Daily, News

The Intermodal Association of North America and the Bureau International des Containers Expand Collaboration to North America Geofencing

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The Intermodal Association of North America (IANA) and the Bureau International des Containers (BIC) are extending their collaboration on container facility identification, which began in 2021, to include geofencing. IANA will take the leadership role in collecting and reviewing geofence coordinates for North American intermodal facilities for inclusion in the global BIC Facility Code database and in the IANA Intermodal Facilities Directory.

The BIC Facility Code database is a global database of over 17,000 container facilities and provides a facility name and address, latitude/longitude point and harmonized facility code. As part of the 2021 harmonization exercise, the locations in IANA’s North American Intermodal Facility database were assigned a global BIC Facility Code, and an API synchronization was put in place.

The database is being expanded to include geofences coordinates to help support the industry’s adoption of smart containers. The methodology and recommendations for the project were developed by a global working group assembled by the United Nations Center for Trade Facilitation and Electronic Business (UN/CEFACT) and includes ocean carriers, IoT providers, and software platforms.

The objective is to provide a neutral open library of geofences linked to container handling facilities to ensure that all parties in the supply chain can reference the same geofence for a facility regardless of the provider or platform they may be using, thus improving reliability, interoperability as well as safety and security.

BIC staff will attend IANA’s Intermodal EXPO in Long Beach, September 11-13 to explain the new platform and to assist depot and terminal operators/owners in setting up geofences for their facilities.

Global Logistics, Global Trade Daily

Blueprint for a Green Chain: 8 Steps for Fostering Sustainability

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The supply chain and sustainability have become interconnected in the past few years, with companies worldwide emphasizing environmental consciousness for themselves and their supplies. 

It’s crucial for reputation, and going green benefits businesses by lowering costs, driving innovation and improving employee satisfaction. 

How can company leaders improve sustainability? Here’s how supply chain professionals can transform their organizations.

How Can Supply Chains Become More Sustainable?

Talking about sustainability is easy, but incorporating new policies is challenging. These five reasonable changes demonstrate what supply chain professionals can do today to improve their organizations. 

  • Mapping the Supply Chain

Before implementing new policies, company leaders must visualize the supply chain to find liabilities. The flow of goods and materials provides the necessary insights into what aspects of the business require changes. 

For example, a manufacturer may review its suppliers and find other options closer to its facility. Oil and gas account for 15% of energy emissions worldwide, so shortening the supply chain reduces fuel costs and improves a company’s carbon footprint. 

Managers can also use their supply chain map to identify waste. E-commerce companies may use more packaging materials than needed, leading to misuse. A business can improve operations by using more sustainable materials and increasing focus on recycling.  

  • Setting Sustainability KPIs

After mapping the supply chain, logistics professionals can develop policies to strengthen their weak spots. However, these actions are only worthwhile if leadership monitors progress and continues to find improvement. Supply chain managers should set sustainability key performance indicators (KPIs) to ensure the company follows its promise to be more environmentally conscious. 

KPIs are integral for sustainability goals because they provide a clear benchmark for employees to strive for. Company leaders can measure progress over time and adjust their strategies when necessary. If something isn’t working, it’s better to know early rather than later. KPIs are also beneficial because they’re effective communication with stakeholders. Leadership can use them to demonstrate progress and build credibility with the board.

  • Communicating With Suppliers

The supply chain starts with an individual company but involves all suppliers, manufacturers, distributors, retailers and consumers. Professionals should communicate with suppliers and other entities to ensure they employ sustainable practices. Some companies offer discounts, favorable contracts and other financial incentives to go green and reduce their carbon footprint.

Logistics professionals can share sustainability knowledge to improve the supply chain for all organizations involved. Companies can also collaborate on benchmarks to benefit both entities. For example, two businesses could pledge to use greener packaging or reduce energy consumption. Communicating with suppliers builds trust through transparency. 

  • Reviewing Supplier Performance

After communicating with suppliers, reviewing their performance over time is essential. Companies must be willing to identify and improve their sustainability weaknesses. If they don’t, they become liable and harm the supply chain’s environmental consciousness. A business’s suppliers reflect on it, so checks are crucial. 

Suppliers improving their practices can remain partners in the supply chain, but companies that don’t risk replacement. For example, a manufacturer may request its distributors to increase the use of electric vehicles (EVs). EVs improve sustainability with zero tailpipe emissions and less energy consumption than gas-powered cars. Partners that don’t comply risk losing an integral part of their supply chain. 

  • Implementing Sustainable Sourcing

Supply chain managers reviewing their flow of goods should scrutinize material sourcing. Some sustainable practices sound environmentally friendly, but a closer look shows a different story. For example, a manufacturer may produce EV batteries. These devices don’t rely on fossil fuels for power, but they require mining lithium, cobalt, nickel and other items harmful to the environment.

Environmental impact is something companies should consider because of its long-term ramifications. One practice may seem profitable now, but how will it affect the bottom line 30 years later? Supply chain professionals should ensure their suppliers enforce sustainable methods.

For example, fishing companies use trawling, unreported fishing and other unsustainable strategies to capture seafood. These practices may bring short-term profits, but they harm the environment. The United Nations says 3 billion people worldwide rely on seafood for their daily diets, so unsustainable methods impact a significant percentage of the planet’s population. Harming this many people affects long-term profits and expansion opportunities negatively.

How Can Professionals Aim High With Sustainability?

Some goals take longer than others, often requiring decades to implement. While they need more time, these three ambitious targets significantly improve the supply chain’s sustainability.  

  • Becoming Carbon-Neutral

Greenhouse gas (GHG) emissions are difficult for companies to avoid entirely. However, organizations can offset their emissions by becoming carbon neutral. This transition is challenging for multinational corporations, but it’s a worthwhile long-term venture. 

Numerous prominent companies worldwide have committed to carbon neutrality this century to demonstrate sustainability. This goal is central among automakers. General Motors has pledged carbon neutrality by 2040 by eliminating tailpipe emissions and using renewable energy in all manufacturing facilities worldwide. 

Increasing renewable energy and reducing waste are terrific ways to reach carbon neutrality, but supply chain professionals can also use carbon offsets. Companies can participate in tree-planting projects, environmental cleanups and other projects to limit carbon liability. 

  • Investing in Advanced Technology

Some companies face financial roadblocks when improving their supply chain’s eco-friendliness. Advanced technologies are often expensive due to high demand and the required materials. Many devices are also new and have limited competition on the market to drive down the price. While it may be costly, it significantly improves sustainability. 

For example, some companies are turning to blockchain to track their goods. This technology improves supply chain visibility and traceability by allowing businesses to monitor their products throughout the process. However, blockchain costs more than traditional databases and requires employees with expertise to implement it properly. Otherwise, it could be wasted money. 

The last few years have seen construction companies use 3D printers to build houses and offices. These machines lower costs but have a high upfront price. These printers start at around $180,000 but can eclipse $1 million for top-of-the-line devices. 

  • Creating a Circular Economy

Many companies create products for their suppliers and customers without considering what happens afterward. However, these leaders are doing themselves and their employees a disservice by not considering the entire life of their items. Professionals can enhance their sustainability by creating a circular economy for what they manufacture. Allowing consumers to upcycle and recycle improves the supply chain. 

Companies can create a circular economy by intentionally designing their products for reuse and recycling. For example, sustainable EV battery producers allow consumers to recycle them at the end of their life. Recycling facilities extract lithium and cobalt from the battery and repurpose the metals for other uses — thus reducing demand for consuming virgin materials.

Creating a circular economy comes with added costs, making it a lofty goal for some businesses. For example, some areas may lack recycling facilities to incentivize companies. Additionally, producing recyclable materials costs more because of complicated manufacturing processes or high expenses.

Fostering Sustainability in the Supply Chain

The global supply chain has come under the microscope in recent years. Various disruptions have challenged companies worldwide to become more sustainable and resilient in an ever-changing world. Professionals can improve sustainability and go green by implementing reasonable and ambitious solutions.