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3 Ways Payment Automation Helps Build a Robust Revenue Model For Logistics Operations

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Global Logistics, Global Trade Daily

3 Ways Payment Automation Helps Build a Robust Revenue Model For Logistics Operations

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The transportation and logistics industry faces a myriad of challenges that impact their business operations. Rising costs, driver shortage, and inefficient operations have a major impact on helping organizations meet revenue targets. One of the major challenges that easily gets unnoticed is maintaining a healthy cash flow. The use of highly configurable Logistics Management Software can help the company meet the need for speed to display payments and get paid. As per Gartner, over 50% of the global midmarket and large enterprises will deploy procure-to-pay suites by 2025.

In this blog, get a detailed explanation of how different personas like DHL, FedEx, Mcdonald’s, KFC, Amazon, and Uber, to name a few,  benefit from a robust revenue module. 

  • Rules-based Costing Charts For Shippers- 

By using logistics management software, the business can set separate rate charts for each shipper. The dispatcher can set the rate profile for different shippers and define the service area. They can easily create multiple rate profiles for delivery types. For example, express delivery, standard delivery, 2-day delivery, special delivery, etc.  Additional costs that can be incurred during delivery can include-

  • Set rates for handling fees
  • Location-based fees are based on wait time, load, and unload time
  • Any miscellaneous/ custom fees
  • Surcharge
  • Insurance
  • Cancellation fees
  • Reattempt fees
  • Discounts 

By supplying these details, the system will automatically help calculate prices for different service types and cost to customers for shippers. This automated calculation will remove manual errors and streamline shipping payments for seamless deliveries for all your shippers under one platform. 

  • Optimizing Costs For Carriers- 

Whether you are using owned fleet or third-party service providers, timely payments to carriers are of utmost importance. They can be the source that might have to be properly studied to ensure efficient utilization of the fleet for deliveries. But how can the cost be calculated to ensure delivery is assigned to the best carrier?

Basic Cost- This will calculate the base rate of operation, which is combined with rates based on distance, weight, volume, and pooled milestones. This gives insight into the actual fleet cost.

Basic Cost= Base Rate + Rates Based On (Volume+ Weight + Volume + Pooled Milestone)

  • Surcharge fee that includes: Fuel surcharge, Zone surcharge, and Surge timings
  • Cash handling fees on completion of milestones
  • Assign handling fees based on skill sets offered 
  • Location fees
  • Insurance
  • Cancellation fees
  • Reattempt fees
  • Taxes on milestone completion

By computing all the costing, the operations managers can get detailed information on delivery in the reports and analytics section. This will help the team understand the best carriers which can be assigned for specific types of delivery. And this will relate to cost savings for the dispatcher. 

  • Daily Driver Payments Updates- 

One of the best ways to retain drivers and improve fleet efficiency is by offering them incentives. For example, the business can incentives drivers for handling delivery during surge hours or holiday seasons.

Using this policy, the dispatcher can set rate profiles for deliveries associated with every delivery associate. Similar to carriers, the driver rate profiles can be created using logistics management software to ensure seamless delivery. The drivers using the driver app can be easily notified daily to keep track of their incentives. 

A leaderboard can easily be generated to keep drivers motivated to outperform their counterparts. With bonuses and incentives easily integrated and calculated, drivers get real-time updates and remain informed about the payments- offering complete transparency regarding their payments. 

This helps the organization to retain drivers, create an efficient fleet to ensure on-time delivery. As the calculations can be handled by the logistics management software, there is no longer any need for manual intervention to calculate the payments. This will future help the organization reduce operational costs as they will be saving costs for additional resources or third-party integrations to get the job completed. 

Additionally, modern logistics management software also can integrate with digitizing payments by integrating with QR payments or via PoD payments to avoid cash collections and go fully digital. This helps remove additional human intervention at warehouses/ hubs, ensuring no gaps in payment collection. Payments Source reports that 92% of electronic invoices are paid instantly as compared to 45% of paper invoices.

The use of logistics management software that can account for payment history, track dispute details, and automate the collections process will enhance the relationship between buyers and suppliers. Companies that use electronic or software invoicing see a significant reduction of up to 49% in delayed payments and a 37% reduction in failed payments. By adopting logistics management software, organizations can also speed up their payments, helping the team to focus on other areas, and helping elevate customer experience.

Summary

This article discusses how the use of logistics management software can help  businesses build a robust payments module that can optimize costs for shippers, carriers, and drivers. This will help your organization beat competition and focus on other key areas to enhance customer experience.

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!

 

Damotech warehouse security soundproofing
Global Logistics, Global Trade Daily, Warehousing

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.

sheer
Global Logistics, Global Trade Daily, News

Sheer Logistics Introduces Customized Scope 3 Carbon Dioxide Emissions Dashboards to Help Shippers Achieve Their ESG Goals

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Real-time dashboards are powered by SheerExchange, Sheer’s proprietary integration Platform as a Service (iPaaS)

Sheer Logistics, a premier provider of Managed Transportation Services, TMS technology and integration Platform as a Service (iPaaS) solutions purpose-built for mid-market companies, today announced the introduction of customized ESG dashboards that empower its clients to track and measure their Scope 3 carbon dioxide (CO2) emissions in real-time across all modes of transportation in their supply chain.

The customized Scope 3 CO2 dashboards are enabled by SheerExchange, Sheer’s proprietary integration Platform as a Service (iPaaS). SheerExchange acts as a “universal translator” that quickly and seamlessly connects and automates the supply chain, including vendors and industry leading technologies such as ERPs, Fuel Programs, Rating Engines, Real-Time Transportation Visibility Platforms (RTTVPs) and more.

SheerExchange connects disparate systems, normalizes and warehouses the aggregated data, and provides easy access to actionable business intelligence. Aggregating transportation data in a single location allows Sheer’s clients to accurately track, measure, and report on their Scope 3 CO2 emissions. Sheer Logistics leverages the framework developed by the Global Logistics Emissions Council (GLEC) to ensure its clients’ Scope 3 CO2 emissions are measured using a harmonized and globally recognized standard.

Learn more about Sheer’s Scope 3 Carbon Dioxide Emissions Dashboards here.

About Sheer Logistics

Sheer Logistics is a premier provider of logistics and supply chain management solutions purpose-built for mid-market companies. With a deep understanding of the unique challenges faced by mid-sized businesses, Sheer Logistics offers customized solutions that help companies optimize their supply chains, reduce costs, and improve efficiency while gaining visibility to actionable business intelligence empowering and improving management decisions.

The company’s comprehensive range of services includes Managed Transportation, SheerTMS (Transportation Management System), the SheerExchange Integration Platform as a Service (iPaaS), supply chain consulting, value-added strategic multimodal capacity solutions and more.

By leveraging leading technology and a team of experienced professionals, Sheer Logistics provides mid-sized businesses with the tools and expertise they need to compete in an ever-changing global marketplace. With a focus on building long-term relationships through transparency, trust and providing exceptional customer service, Sheer Logistics is dedicated to helping mid-market companies succeed and drive profitable growth.

Tech and humans working together, one of the ways how AI and robotics are revolutionizing manufacturing
Global Logistics, Global Trade Daily, Uncategorized

How AI and Robotics are Revolutionizing Manufacturing

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New technologies constantly bring improvement and offer an edge to those who adopt them sooner than competitors. The same, naturally, applies to the field of manufacturing. As such, let’s go over how AI and robotics are revolutionizing manufacturing so you can use them! 

The rise of smart factories

Smart factories are at the forefront of the improvements in American manufacturing. These state-of-the-art facilities are revolutionizing the industry by integrating cutting-edge AI and robotics technologies. This technological revolution is boosting manufacturing and making it more accessible in every single way, making this a pivotal step towards a more promising future.

AI-powered predictive maintenance

One of the main driving forces behind why AI and robotics are revolutionizing manufacturing is predictive maintenance. By harnessing the capabilities of artificial intelligence, manufacturers now predict equipment failures before they occur, minimizing downtime and maximizing productivity. Whereas traditional maintenance approaches often lead to reactive repairs, causing costly disruptions. Moreover, with AI, real-time data analysis and machine learning algorithms identify early warning signs of potential malfunctions, enabling proactive maintenance. This shift from reactive to predictive maintenance saves manufacturing companies time, resources, and expenses. 

Collaborative robots (Cobots) in manufacturing

Collaborative robots, or Cobots, are another reason AI and robotics revolutionize manufacturing. Unlike traditional industrial robots that require safety barriers and isolation, Cobots are designed to work safely alongside human workers. With built-in safety features such as force-limiting technology, Cobots detect human presence and respond by slowing down or stopping. These user-friendly robots can be easily programmed and reprogrammed for different tasks, reducing the need for specialized skills. So, Cobots take on repetitive, mundane, and demanding tasks, freeing human employees to focus on complex aspects of manufacturing. 

AI-driven quality control

AI-driven quality control is transforming manufacturing by automating and enhancing the accuracy of product inspections. Traditional quality control processes often rely on manual checks, which can be time-consuming and prone to human error. However, with AI, manufacturers can employ sophisticated algorithms to analyze vast amounts of data and accurately detect defects. Computer vision systems with this tech can identify even the slightest imperfections in real-time. That ensures that only products meeting the highest standards reach the market. Integrating AI into quality control processes not only boosts product consistency but also reduces waste and associated costs. Finally, by streamlining quality assurance, the tech enables manufacturers to deliver superior products, increasing customer satisfaction. 

Supply chain optimization with AI

Supply chain optimization with AI is revolutionizing supply chain management by streamlining and improving the efficiency of the entire process. Traditional supply chain management involves numerous complexities, including inventory management, logistics, and demand forecasting, which is challenging to handle manually. However, with the power of the new tech, companies can now leverage advanced algorithms to analyze vast amounts of data in real time, enabling more accurate demand predictions and better decision-making. AI-driven systems can also optimize inventory levels, reducing excess stock while ensuring products are available when needed. Moreover, AI can optimize route planning and transportation, reducing shipping costs and delivery times. 

AI-enhanced design and prototyping

AI-enhanced design and prototyping are revolutionizing product development by accelerating innovation and optimizing design iterations. Creating and testing new concepts in traditional design and prototyping can be time-consuming and resource-intensive. However, with the integration of AI, designers can leverage machine learning algorithms to analyze vast amounts of data and generate creative design solutions. AI helps designers explore various possibilities, considering materials, performance, and aesthetics. Additionally, AI can predict potential design flaws and suggest improvements, leading to faster and more efficient prototyping. This synergy of human creativity and AI-driven optimization results in higher-quality products and reduced time-to-market. Furthermore, AI benefits 3D printing and rapid prototyping technologies, making the iterative process even more seamless. 

Robotics and autonomous material handling

Robotics and autonomous material handling are transforming the logistics and warehousing industry by revolutionizing how goods are moved and managed. Traditional material handling can be labor-intensive and time-consuming, but with robotics, companies can deploy automated systems that efficiently handle tasks like picking, packing, and transporting goods. Autonomous mobile robots equipped with sensors and AI can easily navigate complex warehouse environments, reducing the need for manual intervention. These robots can also work collaboratively, optimizing workflows and improving operational efficiency. Moreover, AI-powered algorithms analyze real-time data to optimize inventory storage and replenishment, reducing costs and improving accuracy. 

AI for demand forecasting

Another way AI and robotics revolutionize manufacturing is through demand forecasting, which is particularly helpful when dealing with global logistics. Traditional forecasting methods often rely on historical data and manual analysis, making adapting to dynamic market changes challenging. However, with AI-powered algorithms, businesses can analyze vast amounts of real-time data from multiple sources, including social media, weather patterns, and economic indicators, to make more accurate predictions. That enables companies to optimize inventory levels, reduce stockouts, and avoid excess inventory, leading to cost savings and improved customer satisfaction. Moreover, AI can identify demand patterns and seasonality, helping companies plan for peak periods and ensure timely product availability. 

Human-machine collaboration in manufacturing

Human-machine collaboration in manufacturing is reshaping the industry by fostering a harmonious partnership between human workers and machines. Rather than replacing humans, advanced technologies augment human capabilities and transform how work is done. Human workers contribute their creativity, problem-solving skills, and emotional intelligence, while machines handle repetitive, dangerous, or physically demanding tasks with precision and efficiency. This collaboration streamlines production processes, enhances productivity, and ensures consistent quality. So, companies are investing in reskilling and upskilling their workforce to adapt to new roles in this evolving landscape. 

Conclusion on how AI and robotics are revolutionizing manufacturing

With everything we covered on how AI and robotics are revolutionizing manufacturing, it’s obvious that the future is bright. So, the only thing left is to integrate this new tech into your business!

Author Bio

Alexandra Foster is a logistics expert at Bravo Moving California, passionate about optimizing supply chains and embracing human-machine collaboration. With years of experience in global logistics, she’s a strong advocate for sustainability and AI-driven solutions in the industry. Through her insights and expertise, Alexandra aims to inspire efficient and innovative transportation and supply chain management practices.

consumers New DHL service organizes last-mile deliveries for ecommerce shipments of export cargo and import cargo in international trade. autonomous
Global Logistics, Global Trade Daily

The Future of Last-Mile Delivery: Innovations, Trends, and the Rise of Autonomous Solutions

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The rise of online shopping has revolutionized the retail industry and has created a growing demand for efficient last-mile delivery solutions.

In 2023, numerous trends and innovations are shaping the future of the delivery industry, driven by the need to improve efficiency, reduce costs, and enhance the customer experience.

Let’s explore key developments and figures that highlight the transformative nature of last-mile delivery. From integrating various delivery methods and leveraging data analytics to adopting real-time tracking technology and focusing on sustainability, companies are taking bold steps to meet evolving customer expectations.

Additionally, the market for autonomous last-mile delivery is expanding rapidly, driven by advancements in technology and the increasing demand for fast and convenient package delivery.

Innovations and Trends Shaping Last-Mile Delivery in 2023

The last-mile delivery landscape is evolving rapidly, driven by innovative approaches and emerging trends. In 2023, 13 key innovations and trends are expected to have a significant impact on the industry.

  1. Integration of Delivery Methods: Retailers are adopting a hybrid model that combines their fleet with third-party providers and crowdsourced delivery options. This approach offers greater control and flexibility over last-mile operations, enabling businesses to optimize costs and enhance the delivery experience.
  2. In-house Shipping Carriers: More businesses are investing in their own fleet to provide secure local delivery services. This allows retailers to exercise better control over costs and the overall delivery experience.
  3. Data Analytics: By leveraging customer behavior analysis and demand prediction, companies can optimize delivery times, personalize the purchase experience, and improve overall efficiency.
  4. Urban Warehousing: Locating warehouses in urban areas minimizes transit time and enhances the customer experience by enabling faster deliveries.
  5. Real-time Tracking Technology: Providing customers with updates on the delivery process enhances their sense of control and improves overall satisfaction.
  6. Autonomous Vehicles: Companies like Amazon are investing in self-driving cars and delivery drones, enabling the potential for 24/7 delivery. However, regulations and rules surrounding autonomous vehicles are still being developed.
  7. Green Logistics: Businesses are investing in electric delivery vehicles to address environmental concerns associated with transportation.
  8. Large and Heavy Item Delivery: Meeting the needs of delivering large and heavy items efficiently and effectively is a growing focus in the last-mile delivery industry.
  9. Drone Delivery: The use of drones for delivery purposes is gaining traction, offering faster and more flexible delivery options.
  10. Automated Last-Mile Delivery Management Platforms: Automation streamlines delivery operations, reducing costs and improving overall efficiency.
  11. Route Planning and Optimization Software: Optimizing delivery routes improves efficiency and reduces transit times, resulting in enhanced customer satisfaction.
  12. Contactless Delivery: The COVID-19 pandemic has highlighted the importance of contactless delivery methods to ensure customer safety.
  13. Omnichannel Retailing: Integrating various sales channels provides customers with a seamless shopping experience, promoting customer loyalty.

The Growth of the Autonomous Last-Mile Delivery Market

The autonomous last-mile delivery market is experiencing significant growth, driven by the increasing demand for fast package delivery and advancements in delivery vehicle technology:

  1. Market Size and Growth: According to a report by Allied Market Research, the global autonomous last-mile delivery market is projected to reach a value of $90.21 billion by 2030. In 2021, the market size was estimated to be $11.12 billion, with a projected compound annual growth rate (CAGR) of 23.7% from 2021 to 2030.
  2. Factors Driving Growth: The demand for faster package delivery and technological advancements in delivery vehicles are the primary factors driving the growth of the autonomous last-mile delivery market.
  3. Challenges and Opportunities: Lack of infrastructure and stringent government regulations pose challenges to market growth. However, the development of aerial delivery drones and more efficient delivery methods creates opportunities for the industry.
  4. Vehicle Types: Ground delivery bots are expected to dominate the market until 2030, contributing nearly two-fifths of the global market share in 2021. Aerial delivery drones are expected to grow at the fastest annual growth rate of 26.1% from 2021 to 2030.
  5. Applications: The retail segment is projected to lead the market throughout the forecast period, driven by increased customer demand for retail goods.
  6. Geographical Trends: North America is expected to hold the largest market share in 2021, accounting for two-fifths of the global autonomous last-mile delivery market. The region’s adoption of advanced technology and continuous development in the last-mile delivery system contribute to its high demand and investment in the market.

The Impact of Technology on Last-Mile Delivery and Logistics

Technology has transformed consumer behavior, leading to increased impatience, and emphasizing the importance of efficient last-mile delivery for transport and logistics companies.

To meet these evolving demands, companies are embracing autonomous delivery solutions and implementing partnerships to optimize their operations:

  1. Changing Consumer Preferences: Consumers expect instant gratification and faster delivery times, driving the need for efficient last-mile delivery solutions.
  2. Autonomous Delivery Solutions: Autonomous delivery vehicles, such as drones and ground delivery bots, offer the potential for faster and more convenient deliveries.
  3. Key Players: Companies like Amazon, FedEx, and Volkswagen are at the forefront of developing autonomous delivery solutions, with Amazon’s Prime Air drone system and FedEx’s autonomous road vehicles being notable examples.
  4. Partnerships: Collaboration between companies without access to autonomous vehicles has become crucial. Examples include Zoom2U partnering with Greyhound Australia to utilize buses for cost-effective next-day delivery services and online truck aggregator service providers bridging the gap between truck owners and end users.
  5. Warehouse Optimization: As e-commerce continues to grow, efficient storage and organization of goods in warehouses become vital. Companies like DHL Supply Chain are investing in automation and robotics to optimize their warehouse operations.
  6. Streamlining the Supply Chain: Real-time tracking, route optimization, and analytics help streamline processes, improve employee efficiency, and meet customer expectations.

Technology and innovative approaches are reshaping the last-mile delivery industry, providing opportunities for improved efficiency, enhanced customer experiences, and sustainability.

With the increasing demand for fast package delivery and advancements in delivery vehicle technology, the autonomous last-mile delivery market is projected to reach a value of $90.21 billion by 2030. Integrating various delivery methods, leveraging data analytics, adopting real-time tracking technology, and focusing on sustainability are among the key trends driving the industry forward.

Companies are investing in their own delivery fleets, using in-house shipping carriers to gain better control over costs and the delivery experience. The integration of autonomous vehicles, such as drones and ground delivery bots, offers the potential for faster and more convenient deliveries. Partnerships and collaborations are also being forged to leverage existing infrastructure and optimize operations.

As the e-commerce industry continues to thrive, the demand for efficient last-mile delivery solutions will only increase. By embracing technology, optimizing warehouse operations, and streamlining the supply chain, companies can meet customer expectations and thrive in the era of instant gratification and online shopping.

Author bio

Marc Such has been active in the Supply Chain world for 20 years. He has built a solid expertise on many Supply Chain processes: Logistics Strategy, Demand & Supply planning, Logistics and E-commerce & Omnichannel.

Co-founder and Managing Partner at SuCh Consulting, he is involved in major transformation projects, from diagnosis to the design of a new Supply Chain, up to the implementation in local or international contexts.

About SuCh Consulting

SuCh Consulting is a Supply Chain consulting company. We accompany our clients in their transformations with the aim of significantly improving their performance.

Our technical expertise, combined with our operational experience, enables us to develop sustainable solutions that specifically meet their company’s needs and objectives.

Convinced that an efficient Supply Chain is an essential vector of success, we lead our customers towards excellence.

 

Damotech warehouse security soundproofing
Global Logistics, Global Trade Daily

A Dampening Goods Demand Has Warehouses in a Bind 

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After two years of declining availability, the industrial real-estate vacancy rate is up again. According to real estate services firm Cushman & Wakefield, the first quarter of 2023 posted a 3.6% nationwide industrial real-estate vacancy rate marking the third straight quarter increase. Warehouse space and logistics networks continue to be pared back and the remaining half of 2023 will appear to follow a familiar trajectory. 

The pandemic fueled a red-hot warehouse hiring spree adding roughly 700,000 workers over a two-year period. Average hourly pay increased by 8% and investment in logistics networks was beefed up. Tales of companies worried that workers would leave their centers for modest pay increases down the street were common. Workers maintained tremendous leverage with US warehousing employment hitting a peak of 1.96 million jobs in June 2022. Since then, however, over 41,000 jobs have been shed. 

Like most sectors, broader economic uncertainty is driving this cooling trend. There’s been a pullback of online sales and a looser US labor market has left employers with little wiggle room. Many companies had put in place attendance bonuses and similar incentives during 2021 and 2022 to retain workers, especially around the end-of-year peak season. The market for 2023, however, is drastically different, and even though the US jobs market overall has remained strong (consumer spending has boosted 1.5 million jobs over the first five months of 2023), the nature of the spending is what matters. 

For example, Americans spent more on services in May, but less on goods. Despite recession fears and lingering inflation, air travel was a service that continues on an upward trajectory. Many airlines project healthy profits and a continued strong summer demand, as does the healthcare industry. But warehousing and distribution networks rely on goods. E-commerce sales dropped by 15.1% in the first quarter of 2023. Contrast this with the middle of 2020 when e-commerce sales represented 16.5% of overall US retail sales. 

According to the Bureau of Labor Statistics, compared to two years ago the number of warehouse workers is still approximately 275,000 jobs ahead. But the ramp-up was so extreme that it will take time to move back to a more calibrated level. The average hourly wage for a US warehouse worker stands at $23.71 – this remains 8% higher than in 2022. Contrast this with pre-pandemic hourly wages in the $14 to $18 range and there is room for downward movement. E-commerce sales will eventually pick up but it’s hard to say if the pandemic peaks can be replicated again. 

 

 

 

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Global Trade Daily, International Trade, Uncategorized

World Trade Center® Addis Ababa Will Elevate Africa’s Status in the Global Market

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Damotech warehouse security soundproofing
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.