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6 Proactive Ways Supply Chain Managers Can Start Preparing for Winter Weather

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Global Logistics, Global Trade Daily

6 Proactive Ways Supply Chain Managers Can Start Preparing for Winter Weather

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Winter typically brings brutal weather conditions across the United States — especially in the North. However, snowstorms can still reach the Sun Belt states. Regardless of location, supply chain managers must prepare for snow, sleet, ice and other conditions.

Preparation is crucial for fortifying businesses and staying resilient throughout the season. Supply chain managers should employ these six proactive measures to brace for winter. 

1. Checking Regional Weather 

Weather can change at a moment’s notice, making it hard to predict. Though, meteorologists can gauge the upcoming winter by looking at data from previous seasons. These scientists also use sea surface temperatures and climate patterns as indicators for December, January and February. 

For instance, North America has seen three La Niña years in a row — producing colder and wetter winters on the West Coast. However, experts are 95% certain this upcoming winter will see El Niño, bringing a drier and warmer winter to the American West. 

Supply chain managers should look at their regional weather outlook to predict what’s coming. These professionals should consult local meteorologists and climate experts for their opinion and use it to determine the necessary preparations.

2. Establishing Emergency Plans

Logistics professionals should prepare for winter regardless of conditions by establishing emergency plans. The weather can change rapidly and defy expectations from meteorologists, giving businesses in the community little time to prepare for treacherous conditions. Developing emergency plans ensures supply chain managers are ready for the winter weather. 

First, managers should assess risk and find the facility’s vulnerabilities. Power outages and worker and product safety are two of the most significant concerns because either situation can turn fatal if an organization isn’t ready. Then, supply chain managers should review their communication protocols to ensure everybody is on the same page when torrential winter weather arrives. 

Sometimes, winter conditions will be devastating enough to force evacuation. Supply chain managers should develop contingency plans to protect workers and goods and reduce downtime. These strategies may include moving products to a temporary storage facility or finding alternative means of transportation. Managers should draw these plans now to prepare for the cold days of the future.

3. Preparing Facilities

Winter can cause headaches for business owners if their facilities aren’t ready for the frigid conditions. Supply chain disruptions have tightened budgets, so the last thing managers need are shipping delays or damaged equipment. Minor issues like icy walkways can become significant if employees or clients slip and fall. These incidents can bring unwanted costs from workers’ compensation and legal fees.

Prepping the building should be high on the priority list for supply chain managers. They should start with inspecting exposed pipes or cracks in the windows and doors. Using caulk and weatherstripping prevents outside air from penetrating the facility and protects employees and inventory from cold conditions.  

Building owners should inspect their HVAC units to ensure they’re ready for the winter. These systems protect the building from cold weather, so examining the entire unit from top to bottom is essential. Supply chain managers can hire a professional to inspect the HVAC or audit the machine. HVAC reviews typically include checking the following parts:

  • Air filter: The HVAC’s air filter should be free of dirt and debris to ensure airflow and efficiency throughout the winter. 
  • Coils: Contaminants can also harm the coils, so inspectors should ensure the condenser and evaporator coils are in working order. 
  • Freon: Many HVAC units produced before 2020 contain freon, so building owners should ensure their systems have adequate refrigerant levels.

4. Inspecting Fleets

Logistics professionals rely on their fleets to transport millions of dollars worth of cargo, so protecting them all year is crucial. Cold weather significantly affects all kinds of vehicles, emphasizing the need for routine maintenance. Supply chain managers should be proactive by inspecting their cars, vans and trucks before the season’s first snow. Routine inspections include:

  • Tires: The first place winter hits fleets is the tires. Some regions face dramatic temperature drops, causing tires to lose significant air pressure. Supply chain managers should swap for winter tires before cold weather and regularly inspect each tire’s psi. Every drop in psi leads to 0.2% worse fuel economy, costing money unnecessarily for businesses.  
  • Fluids: Another critical winter preparation for fleets is caring for the fluids. The engine will run better with low-viscosity oil to help the fluids flow. Supply chain managers can start with 5W-30 oil because of its flexibility year-round. If the cold weather worsens, fleet managers should consider 0W-20 or 0W-30 to ensure their vehicles are in good shape. 
  • Battery: Cold weather also strains batteries because they have to work harder in frigid temperatures. Battery maintenance is even more critical if logistics professionals own electric vehicles (EVs). Fleet managers should emphasize keeping vehicles charged and using block heaters to ensure the battery doesn’t drain quickly. EVs shouldn’t charge to 100% or rest at 0%, so finding a happy medium is vital. 

5. Salting the Ground

Prepping vehicles for the season is an excellent start, and supply chain managers can go the extra mile by strengthening the roads and parking lots. Logistics professionals can’t stop the snow but can prevent the road from icing by using salt. Sodium chloride lowers water’s freezing point and makes vehicles safer. Below-freezing temperatures are less of an issue, depending on how much salt is in the solution.

Supply chain managers can speed up the salting process by using salt spreaders on their property. Acquiring a salt spreader now helps businesses prepare to de-ice the roads and keep their fleet moving. These machines are more efficient and accurate than humans spreading salt, so it’s worth considering for the season.

Logistics professionals should know salt has its limitations. The Minnesota Department of Transportation says salt won’t melt snow fast enough when temperatures dip below 15 degrees Fahrenheit, making the salt spreader less cost-effective. Alternatively, businesses can use sand to make surfaces less slippery. 

6. Ensuring a Full Staff

The end of the year brings increased demand for logistics companies due to the winter holidays. FedEx, UPS and Amazon often see their peak between November and January before cooling down closer to the spring. The increased demand emphasizes how businesses must be ready, and supply chain managers can prepare by ensuring they have a full staff. 

Many logistics companies require seasonal employees to fill the demand amidst labor shortages. This trend stretches across several industries, impacting logistics, manufacturing, retail and more.

Experts predict the shortage will continue for the remainder of the decade, so hiring managers should start early when looking for temporary workers. Supply chain managers should give themselves and their seasonal employees at least three months to acclimate and adequately prepare for the demand. 

Preparing for Winter

Winter is challenging for logistics professionals due to increased demand and the weather. Frigid conditions can compromise vehicles and facilities and cause critical downtime. Supply chain managers should use these six proactive ways to prepare for winter. 

Author Bio

Oscar Collins is the editor-in-chief at Modded, where he writes about a broad spectrum of topics. Follow him on Twitter @TModded for frequent updates on his work. 

 

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Archives, Education, Global Logistics, Global Trade Daily, Uncategorized

10 Must-Have Tools for Supply Chain Managers in 2023

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Today, people spend thousands of dollars on their businesses. And if they make a simple mistake, their business might get doomed. Moreover, their competitors can take their place. But with supply chain management tools, business owners can avoid such errors. 

As per recent reports, 57% of companies consider they gain a competitive edge from supply chain management.

So, the future of your business is bleak without supply chain management. With it, you can certainly succeed and won’t have any margin for error. 

That’s why in today’s competitive supply chain market, if you are not the best, then you aren’t winning. And to do the best, you need some tools for supply chain managers.

The article covers the 10 must-have tools for supply chain managers in 2023. These tools help them cut down on financial loss and errors.

Must-Have Tools for Supply Chain Managers in 2023

As the world of business changes, so too does the role of the supply chain manager. Newer, more efficient methods are replacing what was once considered best practices. Supply chain managers must constantly innovate and expand their toolkits to stay ahead of the curve. 

But with so many options on the market, it can be difficult to know which tools are worth investing in. This list of 10 must-have supply chain tools for 2023 will help you make the right choices for your business.

  • Communication Tools

During the recent global COVID pandemic, staff shortages and shipment delays have occurred. This created problems for supply chain managers. This is where communication became more critical than ever in supply chain management.

As you know, effective communication is a vital component of business success. In fact, according to Grammarly and Harris Poll research, U.S. businesses lose $1.2 trillion annually because of poor communication. 

That’s why communication tools are essential to reduce supply chain risks. Risks include missed opportunities, poor inventory management, late deliveries, and damaged client relationships.

Proper communication, as a whole, reduces employee stress and increases supply chain productivity. The communication tools include virtual phone numbers, emails, video conferencing, instant messaging, etc., as a medium to keep the business communication going in full flow.

  • Shipment Tracking Software

Companies invest in shipment tracking software to provide real-time updates to their customers. Warehouse scheduling software collects and updates data in real-time so customers can know the exact location of their order.

With a solution like this, you can gain better insights into your supply chain. Some benefits include

  • Delay or late delivery alerts are sent to shippers.
  • When packages get damaged in transit, companies are notified. This will allow them to solve the problem and please their customers.
  • Shipment Status Alerts and Updates are a great way to ensure your shipments arrive on time.

ShipHawk and Orderhive are the best shipment tracking tools for SMEs.

  • Order Processing and Management Tools

Order processing is of utmost importance to any supply chain manager. That’s why companies need order management tools to handle all the orders. 

Order management software is used to place orders for goods and services. With this tool, you can manage your orders, process sales orders, fill orders, process payments, and bill your customers.

Companies can streamline their order process by simplifying and automating it. Users can also access historical data related to the order and track order status in real-time, so there is no chance of any order errors.

  • Lean Inventory Management Tools

A manufacturing-oriented business needs the proper amount of raw materials and inventory. The warehouse should not have materials stored because it causes unnecessary maintenance costs. A shortage of materials is also not ideal. 

That’s why lean inventory management tools are necessary. These lean inventory management software avoid the excess production of goods.

The concept involves businesses providing as many products as there are orders. Calculations are based on customer demand. With Lean inventory tools, businesses can reduce warehouse premise space and inventory expenditures, accelerating order planning.

  • Warehouse Management Tools

A company booster’s supply chain should always include warehouse management tools. The tool will help you manage all warehouse activities and tasks daily. 

The tools are customizable and can be tailored to the needs of your business. Tracking and receiving products, route planning, and cycle counting are all intertwined aspects of logistics they can help you manage.

Further, these warehouse management software help companies manage the bundling and kitting process. It also enables users to manage many warehouse locations.

Amazon has revolutionized warehouse management systems, including how companies manage their warehouses. Logix Platform and SphereWMS are the ideal warehouse management tools for the supply chain management.

  • Demand Forecasting Tools

As we discussed, lean inventory tools are effective for supply chain management. But to achieve lean inventory operations, you must meet clients’ ever-changing needs. And the most effective way to do so is with demand forecasting tools.

Using a demand forecasting tool will help you generate accurate projections for the future based on past trends. You can generate forecasts at your convenience and use the insights gained to improve your strategy quickly. 

With the help of supply chain forecasting tools, companies can anticipate customers’ needs, plan production, manage suppliers’ relationships, and anticipate new needs.

Several factors have contributed to the global trade roller coaster ride, resulting in continuous fluctuations in supply-demand dynamics. This has made demand forecasting critical for businesses worldwide.  

Logility Solutions and SAP integrated Business Planning are the best demand forecasting tools.

  • Supplier Management Tools

You must have Supplier Management software if your business has multiple suppliers in different regions or needs to perform quality procurement. 

These tools help businesses to manage costs and better understand the timeline and impact of a business partnership.

Further, supplier performance analysis shows how each supplier has impacted a business model. 

With this software, you can adjust or change your supplier relationships by estimating the value of your partners, collaborators, and contributors. This software is often used to conduct bids, auctions, and negotiations.

  • Analytics and Reports Tools

After supply chain software gathers information, business analytics and reports tools are necessary to determine the best action. A supply chain analytics and report tool are vital to analyzing consumer demand and estimating suppliers’ performance. 

Using supply chain analysis tools, you can evaluate your inventory, your brand’s viability, and its market competitiveness. They also compress the data and reveal a complete picture of the physical inventory, shipments, and the company’s health.

With demand forecasting, analytics can help you identify errors and gaps in your supply chain to ensure you are not just meeting demand but doing so as efficiently as possible. Using analytics, you can gain insight into the company as a whole or its sectors individually.

Additionally, reports are the final result of analytics. But the different types of analytics can produce different kinds of reports. Yet, all have one purpose: to convey what the data means. Each report will teach you how your supply chain is doing compared to your key performance indicators. 

With reports tools, you can find out the popularity of a product, process orders, and determine if there have been any errors or malfunctions. They will instantly detect even the smallest delays in your supply chain.

In this way, you can organize your supply chain management strategy to meet your goals.

  • Security Features Tools

Typically, supply chain managers concentrate on the supply chain, ignoring security. However, ignoring safety exposes your business to risks. 

Businesses risk losing partners, customers, and reputations due to data theft. Your customers may also be at risk of having personal information, credit cards, and passwords stolen.

For instance, a third party with access to your demand forecasts will likely know who your customers are and what they like. Consequently, other companies have a better chance of selling to your market and lowering your profit margin. Moreover, having financial data stolen can damage supplier relationships.

So business risk management is one of the crucial tasks a supply chain manager should take of. And they can use security features tools to eliminate the risk of identity theft, data theft, or data exposure and safeguard themselves. 

By utilizing machine learning services for supply chain security, you can ensure that your business is safe, intact, and protected from fraudulent behavior.

Companies can include security measures such as avoiding third-party vendors with low-security standards, proactive patch management, prohibiting the creation of backdoors, and breach response procedures.

These smart security features tools take the extra step in shielding your data and provide restricted dashboard reporting. 

Further, it prevents third parties from interfering and restricts access to specific files. You can also utilize biometric devices to track accountability. These security measures act as risk management.

  • Compliance Tools

Consumers, now more than ever, want their products to be well-made, safe, and ethical. Interested consumers want to know how and where the products are manufactured. That’s why suppliers need to ensure that their standards meet the consumer, government, and industry expectations.

Fortunately, today’s tools make it easy to comply with environmental and ethical regulations. For example, some solutions permit users to inspect suppliers to ensure that the minerals obtained are conflict-free.

The purpose of compliance tools is to simplify the process of analyzing your suppliers and prevent you from ordering products that are not compliant. Thus, compliance tools in supply chain management make way for clean and transparent business processes. 

Furthermore, because supply chain management tools offer ease of use at their core, it is easy to access records to prove compliance during audits. 

Conclusion

Optimizing supply chain processes is made possible by supply chain management software. These tools can help users reduce costs and errors and optimize the entire process. 

Indeed, these specialized tools and techniques enable brands to avoid too costly pitfalls. Using all the tools to remain competitive and increase production is better. When these entire supply chain tools are coupled together, they maximize the efficiency of the overall supply chain.

FAQs

What are the tools used in supply chain management?

A supply chain manager must use the latest tools and technologies to remain competitive. The most that are used in supply chain management are

  1. Communication Tools
  2. Shipment Tracking Software
  3.  Order Processing and Management Tool
  4.  Lean Inventory Management Tool
  5.  Warehouse Management Tools
  6.  Demand Forecasting Tool
  7. Supplier Management Tool
  8.  Analytics and Reports Tools
  9. Security Features Tools
  10. Compliance Tool

What are the 7 R’s of supply chain management?

A strong supply chain management process consists of the seven R’s for effective logistics. And according to the Chartered Institute of Logistics and Transport UK (2019), the 7 R’s are:

  • Right product
  • Right place
  • Right price
  • Right customer
  • Right condition
  • Right time
  • Right quantity

What are the 3 pillars of supply chain management?

The three main pillars that support the sustainability of supply chains are

  • Strategy
  • Service
  • Cost. 

What are the 5 P’s of logistics?

5Ps are the biggest cause of logistics and marketing conflicts. And these 5 P’s are:

  • Product
  • Price
  • Place
  • Promotion 
  • Packaging
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Archives, Global Logistics, Global Trade Daily, International Trade

Spotlight on Supply Chain Management: Raising the Profile & Importance of the Supply Chain Manager

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Supply chain management has become a much more important business function in all companies since the pandemic began in February 2020. Let’s frame the issues which have made this executive and management change occur.

The Covid-19 pandemic has been devastating to the performance of both domestic and global supply chains. The disruption, uncertainty, cost escalations, and delays which began in March 2020, continue into the fall of 2021.

The crisis caused by a disturbing and unanticipated imbalance between demand and supply in all world markets has resulted in unprecedented challenges facing all managers and operations personnel engaged in the supply chain, procurement, manufacturing, warehousing, logistics, transportation, customer service, import/export, and sales.

The challenges and their impact extend to all the support functions to supply chains: service providers, freight forwarders, carriers, 3PL’s, technology providers, consolidators, and distributors.

While the supply chain has generally had a “subordinated” posture in most companies, the Pandemic has now elevated this area of responsibility because the consequences of poor performance and failure are so impactful in the success of a business’s margin, profit, growth, and sustainability.

The importance of this area runs equally now to the importance of the supply chain manager, who may be known under the various “Titles” in the organization. Supply Chain, Procurement, Logistics, Warehousing & Distribution, Manufacturing, Materials Management, Demand Planning, etc.

With this “increase in importance”:

The disruption has impacted every company, executive, and business vertical. And we must also acknowledge the consequences to people and their families.

The impact to supply chains has moved up the ladder in every company all the way to the CEO, The Board, and the Shareholders.

In our consulting practice, where 90% of the time we deal with mid-level managers, in the last 20 months, my team and I have met with more CEOs than we have in the last ten years.

Supply Chain Managers and their colleagues have been forced due to the disorder in their business models, to work harder, work smarter and ultimately bring resources, experiences, and capabilities to the benefit of the disruptive impacts of the Pandemic.

Supply Chain Managers have been now tested in areas as never seen previously. Most companies, over time, have seen physical, weather-related geopolitical events impact their supply chains. Negative events happen all the time. While we have had some more notable micro-events in the supply chain in the last 10-15 years:

-The Recession of 2008/9

-Hurricane Sandy in 2012

-The 2011 Tsunami in Japan

-Hurricane Katrina in New Orleans in 2005

-Global Wildfires 2019

-Sichuan Earthquake in China in 2008

-South and Mid-West USA Tornados in 2013

-Mississippi River Flooding 2011

-Northeast Winter Storm in 2018

-The current Covid-19 Pandemic 2020-?

The impact on people, business, and the costs in billions and trillions from all these events is unthinkable. And the challenges that faced businesses and supply chain managers were dramatic.

However, this Pandemic has presented a unique set of circumstances:

-Every country and every person and business are impacted

-Personnel working from home has changed communications, team efforts, camaraderie and in some cases increased effectiveness and performance

-The tenure, now passing 20 months

-The uncertainty of planning out supply chain functions

-Demand Planning is almost impossible

-Lean Manufacturing and “Just in Time” Inventory Management Systems, have been retired

-All business models are being strained resulting in alternative and modified structures

-Managers and staff are working longer hours, becoming “burnt out” is a serious reality

-Hiring has been impaired

-Margins, profits, growth, and sustainability are all being challenged

With all these concerns having been identified as the “new reality” the good news is that many organizations’ talents, particularly in supply chain functions are finding ways to meet these challenges and maintaining their company’s business models to a necessary extent of successful operations.

Supply Chain Managers have become creative in their approach and along with companies like ours, Blue Tiger International, have found solutions to mitigate the impact of the Pandemic.

We have developed 14 Solutions, collaboratively with our supply chain managers. Some of these are:

The new roles and responsibilities of The Pandemic Supply Chain Manager require them to “think-out-of-the-box” and create approaches that were never thought of or utilized previously.

At Blue Tiger International, we become an extension of the supply chain manager’s resources and provide a business model to evaluate these options and apply them to the uniqueness of their business models and supply chains.

The four steps profiled above start with an overall assessment of the domestic and global supply chain. That review provides some solutions which must be tied into a financial evaluation that defines ROI.

This is followed by an operational review which determines what changes in the companies supply chain and business model require modification to meet the solution requirements. As an example, if it was assessed and evidenced ROI, the company choosing a Foreign Trade Zone as an option, it is likely changes would be made to the functions of compliance, security, product accountability, technology, and business process.

The last step is implementation, working collaboratively to make the solution work to the benefit of the business model.

This is all unfertile ground to the Supply Chain Executive. What we have observed is a significant “rise to the occasion” of many supply chain personnel, managers and executives to meet and successfully manage these required changes.

They are not necessarily eliminating the issues, but they are providing mitigating strategies all in the name of protecting market share, margins and sustainability.

Supply Chain Managers have become “Frontline Heroes” in the face of this Pandemic and deserve much credit and recognition for keeping supply chains functioning in the face of all these challenges.

This has and will continue to “raise the profile & importance” of Supply Chain Management in all companies’ business models. Additionally, senior management is recognizing their value to the organization, which has been a long-time coming.

________________________________________________________________

Thomas A. Cook is a 30 year seasoned veteran of global trade and Managing Director of Blue Tiger International, based in New York, LA and West Palm Beach, Florida.

The author of 19 books on international business, two best business sellers. Graduate of NYS Maritime Academy with an undergraduate and graduate degree in marine transportation and business management.

Tom has a worldwide presence through over 300 agents in every major city along with an array of transportation providers and solutions.

Tom works with a number of Associations providing “value add” to their membership services and enhancing their overall reach into global sourcing and in export sales management.

He can be reach at tomcook@bluetigerintl.com or 516-359-6232