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Warehouse Management: Top 6 Order Picking Problems and How to Solve Each 

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Global Logistics, Global Trade Daily

Warehouse Management: Top 6 Order Picking Problems and How to Solve Each 

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One thing easily stands out when it comes to warehouse management: you must be prepared to organize, maintain and manage it as best as you can. But while this may sound like an easy-to-do job, the truth is that you can’t do it on your own.

While optimizing the entire process may help, your business may still be exposed to errors that slow down its operations and affect its bottom line. If your business has started experiencing order-picking problems, it is time to learn how to fix them.

As a warehouse executive, you can showcase your leadership skills by teaching your team how a warehouse management system can assist in addressing the issues at hand. Below is a look at the top six most common problems you’ll likely face and how to handle each.

1. Accidental Redundancies

A cursory look at any warehouse operation shows multiple operations happening at any one time. Every ongoing process follows a particular order which ensures that nothing goes wrong. In an ideal situation, none of these operations collides or get repeated severally.

The presence of redundancies in your operations will only lead to mistakes and lost time.
To address this, implement a warehouse management system to automate your operations. With it, you can rest assured that employees won’t pick, mark, and mistakenly ship one order multiple times. Integrating barcoding tech into it will assist in preventing duplication.

2. Misplaced Items

How often do your workers head to where a product is supposed to be, only to find that it has been moved? Marking and placing items in the wrong bin or category causes your pickers to spend additional time trying to trace the missing item. This, in turn, affects trucking efficiency!
Improper marking leads to delayed orders, delayed shipping, and frustrated customers.

A frustrated customer will, in most cases, leave a negative review affecting your conversion rates. You can increase efficiency by using a warehouse management system. The system tracks the location of every product in the warehouse, allowing for better order fulfillment.

3. Employees Choose the Wrong Product or Quantity

When an employee fulfilling an order chooses the wrong product or quantity, you hope that the packers will notice the issue. Regrettably, these are some of the problems that go unnoticed in warehouses where speed is critical to order fulfillment.

Sending out an incorrect order is expensive and makes your business look unprofessional, especially when there are too many returns. Remember that too many complaints online regarding your order fulfillment rates will affect your overall business reputation.

Once again, you can solve this issue by ensuring all products being fulfilled get scanned using a barcode scanner. The scanner will send a notification to the pickers ensuring this mistake gets rectified before the product gets to the hands of the packers.

During dispatch, the packer can then scan it again to confirm all its details are correct.

4. Your Warehouse Layout Is a Mess

A 2018 survey on warehouses by Logistics Management established that only 68% of all warehouse space is well utilized. And the clearest indication that something is wrong is when you find that your vertical space is open, aisles are cramped, and employees are confused.

The first thing that you’ll ask yourself here is how a warehouse management system can help solve this mess. What you may not realize is that many such programs can use gathered data and 3D modeling to provide layout recommendations.

Using the information the system provides can also offer a glimpse into which products will soon go into demand, depending on the season. From this, you can have the employees update the warehouse locations and layout of items accordingly, bringing the in-demand items closer.

5. Relying on the One Order Per Picker System

Whenever a new order comes in, what’s the recommended action? Does one picker search the warehouse for every product on the order list, or do you send multiple selectors to look for different products? While at it, have you considered using warehouse zoning for product pickups?

Different strategies work differently for each warehouse. But regardless of how you look at it, having a picker locate one product per run is ineffective. It will lead to the wastage of valuable resources making the whole order fulfillment process last longer than it should.

Often this happens in warehouses where pickers have to wait for printed order papers before scouring for products. With a sound warehouse management system, you can reduce the time wasted by using coordinated workflows.

The system will assign specific runs to one employee, enabling them to collect multiple items simultaneously. In such a scenario, the person on that run will get all the items on their order sheet from one zone, leading to better order fulfillment rates.

6. Who Selected a Certain Order?

Lack of proper accountability in the warehouse leads to increased irresponsibility. Your people will become demotivated, and their productivity will begin to decline. A functional warehouse needs visibility and accountability.

It calls for you to have a way to know who picked what order and at what time.
An ideal warehouse management system can help you set up detailed workflows. The workflows allow you to track the progress of each order. Using it, you can communicate with your people, monitor their performance, and send notifications whenever necessary.

Besides communication and alert notifications, such a system also increases order traceability. If a problem occurs with the order, you can use the system to track its progress to try and determine when the issue may have happened and take measures to prevent a recurrence.

Conclusion

Warehouse management is among the most essential processes that typically occur in a warehouse. Given its importance, this is not something that you can afford to implement incorrectly.
Considering that most processes in the warehouse are linked in a way, a problem in one phase can lead to costly mistakes in the subsequent phases. All the six problems mentioned above provide a clue about what can go wrong in a warehouse at any time.

Fortunately, you can prevent this by educating yourself and your people on the warehouse challenges you will likely face and how to deal with each. In the long run, you can implement a warehouse management system to reduce the damage they may cause or prevent them from happening.

Author Bio

Sean Richardson is the owner of Complete Plumbing Solutions, a full service plumber in Cork.

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Global Logistics, Global Trade Daily

Slowing E-commerce is Putting a Strain on Logistics 

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E-commerce growth has slowed leaving pandemic-fueled firms in a bind. Blue Apron, American Eagle Outfitters, and Shopify are just a few of the companies that ramped up their logistics networks in 2020/21 with customers homebound and purchasing online. Amazon has been the gold standard in this arena, but few firms can achieve scale. Now that online commerce is back to pre-pandemic levels, delivering goods at the same speed to home after home is proving to be a strenuous undertaking. 

American Eagle was especially aggressive over the last three years having established a logistics subsidiary, Quiet Platforms, to facilitate increased demand. The company spent hundreds of millions of dollars to scale, eventually offering its services to similar and even rival retailers. Management reports that delivery costs were indeed streamlined, but the overall performance of Quiet Platforms in 2023 is not meeting expectations. As a result, the workforce has begun to undergo a trim.

A major component of the e-commerce ramp-up was the construction of last-mile delivery services. Namely, centralized systems, warehouses, sorting and loading solutions, and the corresponding transport to the customer’s residence. Buyers will always want their product as quickly as possible, but the most time-consuming and expensive part of the shipping process is the “last mile.” One estimate places 53% of the shipment’s total costs just on the last mile. Moreover, chain inefficiencies can result in up to 25% losses during this stretch alone. 

It took Amazon roughly two decades to build its logistics network. This spans trucks, planes, warehouses as well as the collaboration of FedEx and United Parcel Service. Yet even the Seattle behemoth has had to pull back on logistics growth in this challenging economic environment. Blue Apron is another example of a company that scaled rapidly during the pandemic. Their pre-measured meal kits with attractive and easy recipes were supported in great numbers by a slew of homebound clients. In the face of rising demand Blue Apron hired 1,200 new employees and opened two warehouses. Today sales are stagnant and Blue Apron is selling its logistics assets to a specialized firm. 

Shopify was another company seeking to rival Amazon during 2019 and 2020. They acquired two logistics firms but are now selling their fulfillment operation to Flexport. Shopify, like Blue Apron, is focused on the merchant experience and letting third parties handle the logistics. The pandemic demanded a strategic shift, but the shift back to pre-pandemic markets has been costly.  

 

   

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Global Logistics, Global Trade Daily

Lowering Transportation Costs: Utilizing Freight Auditing Software for the Cost Conscious

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Like an unwelcome guest, inflation has made its presence known globally, leaving no industry untouched. The supply chain industry finds itself grappling with the far-reaching effects of these rising prices. As the cost of goods steadily climbs, day-to-day operations within the supply chain industry face significant disruptions and challenges. The impact of inflation on this industry manifests in various ways, including increased costs, reduced profit margins, and heightened logistical complexities.

Escalating costs of raw materials, labor, and transportation have directly contributed to the strain experienced by businesses worldwide. With inflation eroding the purchasing power of currencies, procurement of essential inputs becomes more expensive, resulting in higher production costs. Companies are consequently compelled to either absorb these additional expenses, leading to reduced profit margins, or pass them on to consumers and dampen demand. In addition, the rising costs of transportation, driven in part by fuel price hikes, pose a significant challenge to the industry. 

Amidst these tumultuous circumstances, the supply chain industry seeks respite and creative ways to mitigate the adverse impact of inflation on day-to-day operations. Enter freight auditing software—a beacon of hope in a landscape fraught with challenges. This smart technology has gained prominence for its ability to provide enhanced visibility and optimization opportunities within the supply chain.

In an era dominated by evolving technologies and digital transformations, freight auditing software emerges as a vital tool for the supply chain industry to navigate the challenges posed by inflation, therefore offering tangible benefits to supply chain stakeholders by providing better visibility and actionable insights. 

Advantages of Freight Auditing Technology in a Modern World

Freight auditing software empowers businesses to effectively tackle transportation costs. A key advantage of freight auditing software is its ability to detect and rectify billing errors and overcharges. One in every four invoices gets rejected and has to be remediated, resulting in unnecessary costs for businesses. Automatically scrutinizing each invoice against contractual agreements and shipping data through freight auditing software is a much simpler way to conduct business. It can swiftly flag discrepancies, such as incorrect rates, duplicate charges, and unauthorized fees. This meticulous approach helps businesses recover overpayments and negotiate better terms with carriers, ultimately reducing transportation costs.

The beauty of freight auditing software lies in its ability to uncover hidden patterns and trends that may have otherwise gone unnoticed. This software facilitates comprehensive data analysis, empowering leaders with insights from their shipping activities. Through the examination of historical shipping data, businesses can pinpoint areas of inefficiency and waste. For instance, the software may uncover recurring instances of underutilized truck capacity, inefficient routing, or excessive handling costs. Armed with this knowledge, businesses can make data-driven decisions to optimize their transportation operations, eliminate redundancies, and reduce costs. The ability to proactively manage transportation operations not only reduces costs associated with delays or expedited shipping but also enhances overall supply chain efficiency. 

Finding Overall Success with Smarter Solutions

In the face of inflationary pressures, freight auditing software is a proven method for lowering transportation costs. As companies strive to optimize their operations and adapt to evolving market conditions, the integration of freight auditing software emerges as a critical step toward achieving enhanced visibility, cost efficiency, and overall success in the supply chain landscape.

Steve Beda is the Executive Vice President at Trax Technologies, the global leader in Transportation Spend Management (TSM) solutions. Trax elevates traditional Freight Audit and Payment (FAP) with a combination of industry-leading cloud-based technology solutions and expert services to help enterprises with the world’s more complex supply chains better manage and control their global transportation costs and drive enterprise-wide efficiency and value. For more information, visit www.traxtech.com.  

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Global Trade Daily

ISTA European Packaging Symposium will bring together Global Transport Packaging Leaders to Focus on E-commerce, Sustainability and More

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The International Safe Transit Association (ISTA), the leading industry developer of pre-shipment performance testing standards for packaged products, today announced programming for its European Packaging Symposium, which will be held 27-28 September at the Amsterdam Marriott Hotel in Amsterdam, Netherlands.

The ISTA European Packaging Symposium is the global transport packaging industry’s staple event in Europe, providing a broad international platform for directors, managers and technicians of logistics, packaging, production, purchasing, R&D, product design and development of companies in the following sectors: packaging, fast moving consumer goods, computers and electronics, retail sector, logistics, transport and storage, test laboratories, and test equipment manufacturers.

Presentations will cover sustainable packaging development, e-commerce packaging challenges, packaging performance testing applications, packaging optimization and damage reduction success stories, research, best practices and more. The event also features a new track focused on temperature-sensitive life science product distribution, with sessions on innovative cold chain packaging solutions, temperature monitoring strategies, sustainability case studies, design qualification guidance, mechanical testing best practices, emerging technologies and more.

Companies presenting include Amazon, HelloFresh SE, SEE, Stora Enso, SmartCAE, ITAINNOVA Merck Sharp & Dohme (MSD), Stora Enso, ITENE, Safe Load Testing Technologies, Research Institutes of Sweden (RISE), Lansmont Corporation, Validaide, CADFEM India Pvt. Ltd., ELPRO-BUCHS AG, Pregis, Ring (an Amazon company), Billerud AB, Sonoco ThermoSafe, Smithers, CSafe, WESTPAK, Inc., Fisher Packaging, LLC, RP Pharma Consulting Ltd and Cold Chain Technologies.

For the first time, ISTA is offering in-person training for its Packaging Dynamics Professional (ISTA PDP) Certification program prior to the symposium on 26 September. ISTA’s PDP certification program encourages and recognizes development and excellence in the packaging industry.

The event will be held in person with several networking opportunities, including general sessions, a social mixer, breaks with sponsors and a closing dinner at the Amstel Boathouse.

For more information about the event and to register, visit www.ista.org. The discounted early-bird rate ends August 31.

Since 2019, ISTA has invested nearly $2 million into research to better understand the hazards found in the transport of products around the world, including studies in India, Europe, China, the U.S., spanning across sea, rail, full-truckloads and parcel. There are currently 22 ISTA testing standards covering different applications, package types, distribution modes and products.

ISTA’s more than 1,100 corporate members are located in 45 countries and include over 650 certified testing labs, 400 leading brand owners, 300 packaging suppliers, and 300 research and academic institutions and students.

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Global Logistics, Global Trade Daily

DP World – Issues Facing the Manufacturing Supply Chain & Their Fixes 

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Solving our persistent manufacturing supply chain problems requires global communication and collaboration.

Technology adoption is critical to smoothing global supply chains for manufacturers. But it’s just a start. The problems are global and integrated. And the solutions must be as well.

Here’s the issue with the problems facing our manufacturing supply chains: Too often, we talk about them in isolation. Inventory management problems are distinct from poor contingency planning. Supply chain visibility is a different challenge than finding reliable suppliers. And logistical challenges are varied and many. These are all fundamentally different things. 

But they’re so interconnected we can only truly address them in an integrated, holistic way. 

“The global manufacturing supply chain is a single, integrated ecosystem of trade that requires an all-hands approach if it’s to operate efficiently and fluidly,” said Robert Parker, Director of Logistics at DP World Canada. “Technology is a critical part of the solution. But technology is just where it starts. Ultimately, suppliers, manufacturers, and customers all must commit to ongoing communication and collaboration for the manufacturing supply chain to operate as we all want it to.” 

Let’s look at each of the five most common manufacturing supply chain challenges in turn, before we explore the path forward.

1 – Supplier Reliability

In recent years, concerns about political instability around the globe have led both North American and Western European countries (amongst others) to embrace near-shoring. 

This has served to shrink the length of supply chains not just physically (e.g., the North American automobile industry expanding aggressively in Mexico) but socio-politically (e.g., with some Western companies relocating facilities away from political hotbeds to countries with reliably democratic systems of government). 

Near-shoring makes it more likely we can address some of our stickiest supply chain issues. But as we’ll see, it alone is no guarantee of success. 

2 – Supply Chain Visibility

Supply chain visibility problems compound all the other issues you might be facing. 

Without an effective view of where your shipments are in the world – which carrier they’re with, what delays they’re facing, their expected arrival times, and what it all means for your inventory – it makes it next to impossible to address all your other common challenges. 

This means that a manufacturer without visibility into its supply chain may lose control of its operations and, ultimately, fail. The company may be able to stagger along for a while, but the challenges are too great in our current environment to fly blind. That’s how important supply chain visibility is in 2023.

Happily, the solution here is relatively simple: technology. And manufacturers don’t need to go in it alone when it comes to supply chain visibility technology either. They can now work with an end-to-end service provider, which will give them full line-of-sight into their supply chain. 

3 – Poor Inventory Management

Without the right software, effective inventory management is becoming increasingly impossible. Large companies already know this. However, there are still some smaller and medium size companies which still prefer to have people with pads and paper walking around a warehouse doing inventory instead of investing in a technology solution. But that won’t be sustainable much longer. With a move away from push-to-pull distribution, and the mainstreaming of a just-in-time approach to inventory, there simply isn’t enough slack in the system to effectively control inventory with an old-school approach.

The problem for small and medium size companies is usually cost (the relevant software is perceived as too expensive), complication (the software requires various workarounds to be effective) or culture (they’ve always managed inventory by hand) but those challenges will increasingly pale in comparison to the competitive disadvantage of poor inventory management.

That’s a couple of challenges now that can be partly or fully addressed by technology. But of course, in global trade, software alone won’t fix what ails us.

4 – Logistical Challenges

Logistical problems will never go away. Anyone in manufacturing will tell you that. Freight is routed and rerouted millions of times around the globe every single day due to equipment availability issues, mechanical problems, bottlenecks at ports and on roads and rail, weather-related events, political unrest, and dozens of other all-too-common challenges. 

The sheer scope of a typical manufacturer’s supply chain – even one that’s been near-shored and optimized with the latest technology – creates significant opportunities for something to go wrong.

Which leads us – and manufacturers – to the next big issue.

What happens when something does go wrong?

5 – Contingency Planning

It’s fair to argue that the global supply chain has not optimized its ability to plan for contingencies. This is also true of individual companies. 

This is intuitive when you think about everything we’ve discussed in this article up until now. If a manufacturer doesn’t have visibility into its supply chain (problem #2), how can it effectively plan for logistical challenges (problem #4)? And if that same manufacturer has a supplier reliability issue (problem #1) that will only be compounded by poor inventory management (problem #3).

A system-level problem requires a system-level solution.

While any single manufacturer can address *some* of these issues by implementing technology or seeking out reliable logistics providers, this is a system-level problem that requires a system-level solution.

“There’s no single silver bullet to solve this,” said Parker. “At DP World Canada, we see supply chains from every angle. Our footprint covers ports and terminals, and we’re making massive investments in innovative technology. But without our partnerships with the other players in the supply chain, without their commitment and collaboration, even an organization as large as ours can’t drive all the changes we need to make.”

“This is a global problem. Which means it’s a problem for the everyone around the globe.”

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Global Logistics, Global Trade Daily

The Evolving Landscape of Logistics: Trends and Challenges in the Digital Age

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As a heartbeat of commerce, supply chain management and logistics pulse with the responsibility of keeping the global engine running. At a time of e-commerce and rapidly changing client expectations, these important duties have assumed a central role, integrating efficiency and effectiveness into the foundation of successful company operations.

Yet navigating the landscape of contemporary logistics is challenging. The supply chain’s complexity, increasing transportation costs, and the persistent problem of labor shortages all cast their shadows. But, in keeping with the innovative spirit, companies are responding to the challenge, equipping themselves with technology as their sword and creating connections with third-party logistics providers as their shield. Let’s unfold this tale, one keystroke at a time.

Recent Trends Shaping the Logistics Landscape 

Logistics firms increasingly invest in last-mile delivery options as consumers seek speedier deliveries. Logistics scaleups and startups use blockchain for end-to-end traceability, goods monitoring, and authenticity verification due to concerns about authenticity and ethics. Moreover, supply chain and logistics entrepreneurs are developing solutions to meet the unique requirements of the pharmaceutical supply chain, make warehouse dimensioning possible, and lessen carbon emissions, among other things.

Across many sectors, sustainability has emerged as a top concern, and logistics is no exception. Businesses are implementing sustainable practices to suit consumer needs as consumers become more aware of how their purchases affect the environment. The primary goals of green logistics are reduced carbon emissions, improved transportation routes, and eco-friendly packaging materials. Using alternative fuels, electric cars, and streamlining logistics networks can minimize environmental impact, save money, and enhance brand reputation.

In logistics, data is a new wealth. Every supply chain step produces enormous volumes of data, offering insightful information that improves operational effectiveness and strategic decision-making. By utilizing big data and analytics, logistics experts can see trends, foresee demand variations, optimize routes, and boost supply chain performance. Moreover, real-time data tracking and analytics make proactive risk management possible, guaranteeing prompt intervention during delays or interruptions.

AI, AR, and ML: Pioneering the Logistics Revolution with Intelligent Innovation

A digital twin is a virtual representation of a real-time updated version of a physical system, process, or item. The system uses AI and ML algorithms to imitate the behavior of machines in the real world, enabling organizations to estimate machine lifespans and foresee maintenance requirements. 

Immersive technologies like Augmented Reality (AR) and Virtual Reality (VR) are used to create creative solutions that improve both customers’ and workers’ digital experiences. Due to their many benefits, these technologies are becoming more widely available and used in logistics. Augmented reality technology can improve staff training and lessen warehouse accidents. AR can provide employees with real-time assistance by superimposing digital data on the physical world, lowering the learning curve for recruits and increasing overall operational efficiency.

When it comes to common warehouse problems like fluctuating inventory levels and lost products, AR is a fantastic solution. Unlike conventional paper-based management, augmented reality (AR) directly projects information about product locations or ideal picking routes into employees’ eyes, helping them avoid errors and finish jobs more quickly.

Into the Unknown: Embracing Change and Confronting Logistics Challenges 

Transport and logistics firms need to address two key issues if they want to become more customer-focused: Knowing what constitutes a positive customer experience and establishing a strong, unified experience across all channels to transform the company into customer-centric.

Customers’ activities determine how the consumer progresses through a digital journey, but the workflow itself is created to meet the company’s demands. A digital journey’s triggers, actions, appearance, and feel can all be customized to meet the specific business needs of any logistics provider. Digital travels in logistics take many different shapes and cover topics like supply chain management and customer service.

Another challenge that must be addressed is that businesses that aren’t willing to innovate will soon find it hard to compete with startups that are focused entirely on the digital market. This highlights the importance of last-mile distribution, which is now the focus of innovation. It is challenging to meet customer demand for same-day or even same-hour deliveries of consumer goods due to heavy traffic in metropolitan areas and new environmental regulations like diesel bans or electric-only regions.

Data drives the advancement of Logistics 4.0. Everything is driven by it, including supply chain and warehouse management, marketing and sales. Making sense of the fragmented information housed in siloed systems is one of the key issues for logistics organizations. A single version of the truth is frequently difficult to achieve in a company with legacy systems that must be integrated with digital front-end technologies, making the process and customer experience optimization difficult. 

The ability to store, process, and analyze data on customers, suppliers, goods, and services is essential for logistics and transportation businesses. Digital data collection technologies can automatically gather data from working equipment, or people can use IoT devices to collect data on logistical activities. Automation is essential, as is replacing human data input techniques.

Lastly, business models are being impacted by social movements. Especially when it comes to retail or manufacturing, many logistical operations rely significantly on taking advantage of weak labor abroad. In the industrialized world, there is growing discussion over the moral ramifications of making money from inequalities everywhere. It is becoming more difficult for businesses to get away with disregarding these consequences due to the shift in customer and business partner responses and public perceptions around these concerns.

Wrapping Up

Digital technologies play the melody of innovation in the symphony of supply chain transformation. Companies must coordinate their efforts while embracing the promise of digitization to stay in the forefront. Company strategy must be adjusted with each note, designing logistical processes that sway to the rhythm of client demands.

In this competitive environment, winning the title of preferred provider is the goal. Industry can only prosper and guarantee its position in the logistics of the future by being adaptable, thinking forward, and having the guts to push the boundaries.

 

Global Logistics, Global Trade Daily, Technology, Trucking

Autonomous Trucks – Improving Cost, Speed, And Efficiency For Logistics Companies 

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Autonomous trucks have the power to revolutionize logistics with a 30% reduction in costs, a 50% increase in daily driving range, and virtually 24/7 operations, Deloitte reveals. Indeed, self-driving trucks are increasingly being deployed on roads across the United States, and, based on reports from developers, it’s likely commercial autonomous long-haul trucks will be in operation as soon as next year. For businesses across the supply chain, self-driving trucks can improve efficiency, and save plenty of time and money, while also helping meet the growing demand for quicker and more reliable shipping.
30%+ per-mile cost reduction 
In particular, autonomous trucks are estimated to produce a 30% or greater per-mile cost reduction when compared to the current manually-driven truck model, as revealed in Deloitte’s report. This cost decrease is the combined result of reduced labor costs and improved driving times and range, along with better fuel efficiency and safety performance. And, since self-driving trucks are able to run virtually 24/7, daily range also increases dramatically — up to 1,200 miles from 600 miles. The daily schedule is no longer slowed down due to the need for regular breaks necessary for human drivers. As such, productivity and delivery capacity benefits from a sizable boost — all without having to increase fleet sizes.
Solving the driver shortage
There’s currently a truck driver shortage of 80,000 in the United States — a figure set to surpass 160,000 by 2030 if current trends continue, the American Trucking Association reveals. And, since trucks transport over 70% of the nation’s freight by weight, a driver shortage is bad news for the supply chain. So, although driver retention is an ongoing challenge for logistics companies, autonomous trucks are a potential solution since they reduce the number of drivers needed. Self-driving trucks also have the benefit of improving safety and eliminating road accidents caused by human error.
Optimizing the supply chain network
Self-driving trucks can revolutionize the supply chain network for shippers. Lack of capacity versus available loads currently results in high transport expenses. Self-driving trucks, on the other hand, can minimize costs and bring prices down — making them a more attractive option over trains. Virtual 24/7 operation also means shorter lead times, so autonomous trucks are also a cheaper option compared to expensive air freight. More than that, self-driving trucks also have the potential to remove various touch points along the shipping journey — beginning from manufacturing site through to consumption destination — therefore further cutting costs and saving time.
Solving the challenges of cold chain logistics
Cold chain logistics refers to the transportation of temperature-sensitive products like food, drink, and pharmaceutical products. The goal is to keep the products refrigerated the whole time in order to prevent spoilage — which poses a greater challenge when compared to transporting a typical load. In fact, food loss occurs at every stage of the supply chain with around 30%-40% of the country’s food supply lost this way in total, according to the U.S. Department of Agriculture estimates. A potential solution? Refrigerated autonomous trucks with the ability to move goods fast and can operate at almost all hours of the day. As a result, fresh produce has a longer shelf life, therefore resulting in lower consumer prices, fresher food, and less waste. These self-driving trucks also reduce carbon emissions since they keep the total amount of time the refrigeration unit on the trailer runs for to a minimum.
As an example, Hirschbach Motor Lines, Inc, — an Iowa-based transportation service — recently teamed up with Aurora Innovation, Inc. to launch a new commercial pilot program testing automated refrigerated trucks. The Peterbilt 597, outfitted with the Aurora Driver, transports temperature-controlled cargo between Houston and Dallas — a 400-mile round trip. Since self-driving trucks can operate around the clock, a load can be transported from Dallas to Los Angeles in as little as one day.  By the end of 2023, the pilot load volume is set to increase to 100 loads per week, while commercial launch is expected for 2024. The Aurora Driver will also eventually be able to operate in diverse weather conditions — meaning it’ll be able to run freight across the country.
“Refrigerated goods need to be delivered in a timely manner otherwise they could spoil in transit and maintaining the proper functioning of the trailer is critical. We’re working closely with Aurora to ensure their operations accommodate this time sensitivity and that they have the proper procedures in place to ensure our refrigerated cooling units in the trailer are fueled and monitored for the right temperature,” said Richard Stocking, Hirschbach co-CEO.
Self-driving trucks have the potential to revolutionize logistics. By slashing costs, improving efficiency, and solving the challenge of cold chain logistics, autonomous trucks are sure to soon optimize the supply chain.
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Global Logistics, Global Trade Daily

4 Benefits of Integrating an Automated Storage and Retrieval System

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As logistics professionals investigate how to keep productivity high while workers handle an increasing number of items, many believe automated storage and retrieval systems (ASRS) could help them achieve the desired scalability and consistency. An emerging trend involves using artificial intelligence (AI) for even better results. Here are some things leaders can expect by implementing such systems.

1. Raise Order Fulfillment Rates

Many companies must fill more orders than ever, particularly with customers from all over the country or world purchasing goods online and expecting the products to arrive in a matter of days. Logistics professionals must carefully coordinate what happens once goods leave a factory, but they can get off to a strong start by improving the coordination of warehouse-related movements. Automated storage and retrieval systems can help.

One such system — which utilizes AI, smart sensors and robotics — can bring significant workflow advantages. They include picker productivity rates increasing by four to five times, so workers can get more done in less time.

This particular system uses mobile robots to go down aisles, reach individual bins and bring them to the proper workstations. From there, humans can do the necessary processing tasks to prepare products for shipment. Such productivity improvements are particularly advantageous for companies that often deal with demand fluctuations.

For example, many businesses process more orders during the holiday season or when students return to school. ASRS infrastructure supports decision-makers to handle those spikes with ease.

Before investing in ASRS options with built-in AI technology, people should consider which problems they want to overcome or what they hope to achieve. They should then use that information to determine which commercially available systems match their requirements most effectively. Alternatively, custom solutions are possibilities when people have specific needs commercial products don’t yet meet.

2. Integrate ASRS With Warehouse Management Systems

Many logistics leaders find they must use warehouse management systems (WMS) to stay competitive in changing environments. These tools help users with multiple needs. For example, they can rely on the associated data to determine whether they have enough employees to handle anticipated labor needs.

A WMS can also track goods as they move around the warehouse. That’s beneficial for preventing high-value or large shipments from getting lost, which could represent significant losses for the affected companies. Similarly, if a business has ongoing problems with goods getting lost or broken, the WMS could help leaders determine what’s going wrong and why.

Most of today’s leading WMS systems have AI features. These typically assist with resource management, including predicting which products will sell fastest or recommending when people should reorder certain items to avoid unplanned stockouts.

One way to make the most of those offerings is to let the AI guidance shape how people use ASRS infrastructure. Perhaps the WMS algorithms predict a product will sell much faster than others. In that case, people may change how much of the item they have on hand, as well as its location within the automated storage and retrieval system. Those who take that approach should always give themselves ample time to learn how to use AI features.

It’s also important to use artificial intelligence as a guide that supports human expertise without replacing it. Well-trained algorithms can process data much faster than humans, allowing them to spot trends. However, AI tools aren’t perfect, so people should always apply their judgment before approving anything an algorithm suggests.

3. Maximize Available Storage Space

Many warehouse managers face the challenge of accommodating increasingly more products and categories. Such circumstances increasingly push people to investigate storage options. For example, a pallet flow racking system allows storing products up to 20 pallets deep, significantly increasing the warehouse’s available density.

Logistics professionals know how important it is to store things strategically, creating systems that support defined business needs. An ASRS solution is not the only option, but it’s popular due to the benefits of combined density and automation. People can also customize how items get stored in their facilities.

One frequently chosen possibility is the first-in-first-out method. It’s one of the best ways to manage perishable goods in the food, beverage or pharmaceutical industries. This approach means the products in storage the longest are the first ones a company uses. It can prevent items from expiring before customers use or even see them.

Some ASRS infrastructure also lets people take advantage of shallow and deep storage, depending on their needs. One beverage bottler in the Asia-Pacific region has an incredible 12,000 storage locations, allowing the business to handle current and emerging requirements.

When decision-makers want their ASRS to have integrated artificial intelligence features, they must always consider their must-have attributes. Automated storage and retrieval systems with AI are still relatively new. That may mean it’s necessary to have some tradeoffs when people are adamant their new system must include AI.

4. Save Time With Pick-Path Optimization

The pick path is an employee’s route through a warehouse when grabbing items to fill orders. However, most automated storage and retrieval systems also optimize their pick paths to work as efficiently as possible.

One commercially available AI solution reduces congestion and dwell time while minimizing travel distances. It can still achieve those benefits when users store goods in differently-sized containers. This option suits warehouses with up to 20,000 SKUs, providing up to 40% more throughput than manual operations.

Some companies also combine automated storage and retrieval systems with mobile robots to further reduce workers’ time moving through warehouses. That’s a practical way to implement artificial intelligence if the ASRS does not include the technology.

Before using any automated systems in a facility, an excellent starting point is to ask workers which tasks consume most of their time and what could make them more efficient. Their answers may be valuable for planning which ASRS to use so employees can maximize their time.

People should also view pick-path optimization as a constantly changing aspect due to how circumstances shift when items get added or removed from a warehouse. One of the benefits of using AI is the technology can recognize what’s different and make decisions accordingly.

Automated Storage and Retrieval Systems Make Good Business Sense

The four reasons above highlight why logistics professionals commonly choose automated storage and retrieval systems to streamline operations. Selecting options with built-in artificial intelligence are particularly useful for supporting decision-making in high-volume, fast-paced environments.

 

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Global Logistics, Global Trade Daily

Survey Reveals Opportunities for Shipping’s Electronic Bill of Lading

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Global trade relies on efficient and effective communication across complex supply chains. One document plays a central role in this – the bill of lading (B/L). To date, it has remained stubbornly paper-based for a range of reasons, many of them highlighted by a survey of stakeholders including bankers, freight forwarders, carriers and shippers. However, many obstacles to an electronic B/L can be overcome by the widespread adoption of standards, smoothing the way for fast and effective information exchange in global trade. 

What is an electronic bill of lading? 

The bill of lading serves as document of title, contract of carriage and receipt for goods. Millions are issued every year yet only a fraction are electronic. 

Exchanging paper is time-consuming, expensive and not environmentally sustainable. It can also cause bottlenecks in supply chains because if a required document isn’t in place, or processed in time, cargo can get held up in ports. 

An electronic bill of lading (eBL) will help alleviate these issues. Information shared electronically can be exchanged more rapidly, reducing costs, improving environmental credentials and averting paperwork hold-ups. When based on standards, eBLs enable the seamless exchange of digital B/L information across disparate technology platforms.   

Survey shows the opportunity for an electronic bill of lading

For these and many more reasons, the Future International Trade (FIT) Alliance, comprising five organizations – BIMCO, DCSA, FIATA, ICC and SWIFT— was founded to facilitate and advocate for the digitalization of international trade. It set out to gauge awareness of eBL among member organisations, the extent to which eBLs are already being used and what might be hindering their adoption. 

The FIT Alliance surveyed bankers, freight forwarders, carriers, shippers, agents and consignees across 66 countries. It found that a huge majority – 94% – had heard at least a little about eBLs, but that only 5% had made a full transition to them. More than a quarter (28%) did use them in conjunction with paper, and over half (58%) of those who used only paper had plans to use eBLs in the future. 

It is important for the shipping industry that supply chain participants close the gap between intended and actual eBL use. The advantages of digitalisation are clear, as recognised by the survey’s respondents. A convincing 86% identified that increased speed could be achieved through eBLs and wider trade digitalisation. Meanwhile, over three-quarters (78%) identified process efficiencies, 73% improved customer experience, and the same percentage, cost savings. 

DCSA’s member carriers recently committed to a fully standardised eBL by 2030, with the goal of 50% adoption in 2027. This is a significant step towards digitalisation in container shipping and one that will contribute to simpler, more sustainable and resilient global trade processes. 

Why hasn’t the eBL already been adopted? 

Survey analysis revealed three key factors that have hindered eBL adoption to date. The first centres on technology, platform or interoperability concerns, cited by 73% of respondents. 

This is unsurprising because existing eBL platforms are not interoperable. Interoperability standards support platform choice because a non-standards-based eBL cannot flow from one platform to another.  

A second hurdle identified by the survey was insufficient eBL adoption by other stakeholders. Again, this was to be expected as container shipping comprises complex supply chains with many stakeholders, but standards can help stakeholders across these supply chains switch away from paper in favour of digital information exchange.  

The third most cited reason for not using eBLs was legal gaps. Over half (55%) of respondents selected this. Fortunately, legal barriers are now starting to break down. The United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Transferable Records (MLETR) offers a legal framework for countries that adopt it and the UK government is reviewing their bill to legalise digital trade documentation. eBL solution providers have also put in place legal frameworks to address the need.

The future of eBL

Standards-based, fully interoperable, universal eBL is a significant step towards paperless global trade in shipping. It will help unlock the potential that digitalisation offers, improving resilience, sustainability and reducing the time and cost associated with exchanging paper. 

A range of challenges that have hampered widespread eBL adoption to date can be overcome with the help of standards that support platform interoperability and enable seamless information exchange. Ocean carriers’ commitment to standards-based eBL adoption is a significant step forward in the drive towards digitalisation. 

However, all stakeholders are urged to become advocates for change in the industry. There are many steps that can be taken to facilitate eBL standards development and encourage adoption within an organisation such as: 

  • discussing what needs to be done to receive eBLs with departments such as IT and finance;
  • creating awareness of eBL within the wider organisation and among trading partners;
  • starting conversations about available eBL solutions with carriers and/or freight forwarders; 
  • joining DCSA working groups to provide input on eBL standards development.

With the promise of universal eBL at our doorstep, every stakeholder can take action to the benefit of their organisation and all of global trade. 

 

A delivery drone in action, one of the popular last-mile innovations.
Global Logistics, Global Trade Daily

Last-Mile Innovations: Exploring Alternative Delivery Methods Beyond Traditional Couriers

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Learn all about last-mile innovations and alternative delivery methods beyond traditions couriers so you can adjust the way you approach it!

In logistics, one of the biggest challenges is last-mile deliveries. So, let’s look into last-mile innovations: exploring alternative delivery methods beyond traditional couriers. 

The rise of alternative delivery methods

Drones

Drones are one of the most popular last-mile innovations and have revolutionized the way logistics professionals approach last-mile delivery. These unmanned aerial vehicles offer numerous advantages for the transportation of goods. With their ability to bypass traffic congestion, drones can ensure swift and efficient delivery, saving time and resources. So, logistics professionals can rely on drones to reach remote or hard-to-access areas that traditional couriers may struggle to reach. Using drones in logistics operations also reduces costs by eliminating the need for human labor and minimizing fuel consumption. 

Drones offer improved tracking capabilities, allowing logistics professionals to monitor shipments in real-time and provide customers with accurate delivery updates. As technology advances, drones are poised to become an integral part of the logistics industry, streamlining operations and enhancing customer satisfaction.

Autonomous vehicles

Autonomous vehicles are also transforming the landscape of last-mile delivery for logistics professionals. These self-driving vehicles offer a range of benefits that enhance efficiency and reduce costs. With their advanced sensors and software, autonomous vehicles can navigate roads safely and effectively, minimizing the risk of accidents. Logistics professionals can rely on these vehicles to operate 24/7, ensuring round-the-clock delivery services. Moreover, autonomous vehicles contribute to improved fuel efficiency, reducing carbon emissions and promoting sustainability. By eliminating the need for human drivers, companies can also cut labor costs and allocate resources more efficiently. Autonomous vehicles even offer enhanced route optimization capabilities, selecting the most optimal paths to reach destinations promptly. 

Crowdshipping

Crowdshipping is an innovative solution that can significantly benefit logistics companies in reducing their fleet’s cost per mile. This concept involves leveraging existing travelers and their unused luggage space to transport packages. By utilizing crowd shipping platforms, logistics professionals can tap into a vast network of travelers already heading in the desired direction. This eliminates the need for maintaining a large fleet of vehicles and the associated costs such as fuel, maintenance, and insurance. Furthermore, this collaborative approach reduces costs and promotes sustainability by maximizing the utilization of existing transportation capacity. 

Micro-fulfillment centers and what makes them special

Micro-fulfillment centers (MFCs) are one of the more interesting last-mile innovations in the world of logistics professionals. These compact and strategically located facilities bring the fulfillment process closer to the end consumer, resulting in faster and more efficient delivery. MFCs are designed to handle a high volume of orders in a small space, utilizing automation and robotics to streamline operations. By leveraging advanced technology, logistics professionals can optimize inventory management, order picking, and packing processes, significantly reducing order processing times. The proximity of MFCs to urban areas also allows for quick localized delivery, enhancing customer satisfaction. Moreover, the compact size of MFCs helps minimize transportation costs and reduce carbon emissions. With their ability to handle many orders and expedite last-mile delivery, MFCs are becoming an essential component of modern logistics strategies, enabling businesses to meet the growing demands of e-commerce while ensuring efficient and timely deliveries.

The collaborative efforts of retailers and local businesses

Collaborative efforts between retailers and local businesses significantly improve last-mile delivery for logistics professionals. By joining forces, retailers can tap into the extensive network of local businesses for efficient and timely deliveries. Local companies, on the other hand, benefit from increased visibility and additional revenue streams. Therefore, this collaborative model helps overcome last-mile delivery challenges, such as traffic congestion and limited delivery windows. This is because retailers leverage the existing infrastructure of local businesses, like stores or pickup points, to offer convenient delivery options for customers.

Furthermore, these partnerships enable retailers to expand their delivery reach into inaccessible areas using traditional courier services. By working together, retailers and local businesses optimize resources, reduce costs, and provide personalized and community-focused delivery experiences. This collaborative approach benefits logistics professionals, strengthens the local economy, and fosters a sense of community engagement.

The future trends and innovations in last-mile delivery

Future trends and innovations in last-mile delivery are shaping the logistics landscape based on technology and customer demands. For example, logistics professionals are exploring eco-friendly solutions as environmental sustainability becomes a pressing concern. One such trend is the integration of green warehousing practices, prioritizing energy efficiency, waste reduction, and renewable resources. Implementing sustainable technologies like solar power, energy-efficient lighting, and intelligent temperature control systems can significantly reduce the carbon footprint of warehouses. Additionally, utilizing electric vehicles or alternative fuel options for transportation can further minimize environmental impact. Logistics professionals can achieve a double win of efficient and eco-friendly last-mile delivery by combining these green warehousing practices with future innovations like autonomous vehicles, drones, and route optimization algorithms. This holistic approach doesn’t only enhance operational efficiency. It also demonstrates a commitment to environmental responsibility, meeting the demands placed on last-mile innovations.

Working on the future of last-mile deliveries

With everything we covered on last-mile innovations, you are now better prepared for the challenges ahead! Even with all the difficulties posed by last-mile logistics, options are definitely growing more numerous. So, we can expect even more convenient solutions to develop and come available to discerning business owners! And, hopefully, you will now be better prepared to take advantage of them.

Author Bio

Emily Carter is a seasoned logistics professional with expertise in last-mile delivery strategies. As a dedicated team member at Zapt Movers California, Emily plays a crucial role in optimizing logistics operations to ensure seamless and efficient services. With years of experience in the industry, she brings a wealth of knowledge in innovative technologies, collaborative partnerships, and sustainable logistics practices.