Trending Now

Building a Resilient Supply Chain with Advanced Predictive…

New Articles

What Can We Learn From the Recent Surge in Railway Accidents?

accident railway rail accidents
Global Logistics, Global Trade Daily, Rail

What Can We Learn From the Recent Surge in Railway Accidents?

Leave a comment

The past few years have seen a worrying surge in railway accidents, particularly those involving hazardous materials. By analyzing the leading causes behind these accidents, transportation and logistics leaders can take action to improve rail safety. How serious is the increase in rail transportation accidents, and what are the main takeaways?

You can also Read 8 Reasons for Trucking Accidents & How to Avoid Them

Are Railway Accidents Really Increasing?

The past several years have seen headlines about several severe railway accidents, particularly train derailments. For instance, in 2023, 50 cars were derailed in East Palestine, Ohio, 20 of which contained hazardous materials. The derailment resulted in soil, water and air pollution, forcing over 1,000 people to evacuate the area. While train derailments are fairly common, incidents on this scale are not. However, they seem to be a growing risk.

Data from the U.S. Bureau of Transportation Statistics shows that train accidents have decreased significantly over the past 20 years. There were less than 2,000 total rail accidents in 2022, down from over 3,000 per year in 2004.

Injuries and fatalities due to rail accidents have decreased, as well. In 2017, there were 8,892 total reported injuries and 817 deaths. In 2022, there were 6,252 injuries and 954 deaths. However, it is worth noting that more injuries were reported in 2022 than in 2021 or 2020. 2022 had the highest rail accident injury rate since 2019.

There are a few important takeaways from this data. Overall, railway accidents are generally less common than 10 or 20 years ago. Recent data shows that accidents and injuries may be on the rise again, though. For instance, there were more rail accident deaths in 2022 than in 2017.

This trend applies to train derailments, as well. Derailments have fallen sharply over the past few decades. There were 2,639 derailments in 2004, while there were only 1,259 in 2022. However, there were more derailments in 2022 than in 2021 or 2020. Derailments make up 71% of all train accidents.

The Role of Infrastructure, Maintenance and Workers

The increase in railway accidents is certainly concerning, but analyzing the cause of this trend may help reverse it. Rail accidents are on the rise due to a combination of factors, mainly infrastructure, maintenance and worker-related issues.

Infrastructure

One of the leading underlying causes of rail accidents today is aging infrastructure. Derailments are often the result of malfunctions or mechanical failures with the tracks or roadbeds, the structures that form the base of the tracks. Like any infrastructure, railways can degrade over time and lose structural integrity, especially if they aren’t getting adequate maintenance.

The issue of train length is also a factor here. Freight train length has steadily increased over recent years, with some trains reaching nearly 3 miles long. The longer a train gets, the harder it becomes to control. Poor control can have serious consequences for safety, operations and rail infrastructure since longer trains put more physical strain on the tracks.

The takeaway here is clear — railway infrastructure needs more attention. In some cases, this simply means better track maintenance. However, in other areas, it may require large-scale updates to aging, unsafe infrastructure.

Updates may be more critical in the states with the most rail traffic and the most rail accidents. As of 2022, Illinois and Texas are nearly tied for most derailments, both with over 13,000 on record since 1975. The two second-place states, Pennsylvania and California, have roughly half that many recorded derailments. These high accident rates can point analysts toward the states needing rail infrastructure updates most.

Maintenance

The way railways and trains are cared for has a major impact on safety. If rail operators cut corners or fail to provide enough time for maintenance, the likelihood of an accident increases.

Countless details go into ensuring rail safety. Something as simple as a malfunctioning bearing can trigger a serious accident. The high accident rates in the rail industry today indicate that rail companies need to allow more time for their employees to inspect and repair trains and railways adequately.

Maintenance is especially critical in hazardous materials transport. Sadly, many serious rail accidents in recent years have involved hazardous materials, including the derailment in East Palestine, Ohio, and an explosion at a rail yard in Omaha, Nebraska.

Hazardous materials already have strict regulations for storage and transportation safety. For instance, the U.S. Department of Transportation (DOT) requires containers for hazardous materials to meet safety and design regulations to minimize the risk of a spill. Considering the extreme damage from train derailments involving hazardous materials, rail companies may need to adopt even higher standards for their freight cars.

Technology may also help address maintenance problems. Automation can help cover employment gaps and reduce the likelihood of mechanical issues going unnoticed. Rail companies could use technologies like sensors connected to the Internet of Things (IoT) and predictive maintenance equipment to improve train car monitoring and prevent accidents. 

Rail Workers

Human error is one of the leading causes behind rail accidents, but that may not entirely be rail workers’ fault. The number of people working in rail transportation in the U.S. fell 73% between 1980 and 2020, from 539,700 workers to 144,500. Between November 2018 and December 2020, the industry lost over 40,000 jobs.

At the same time, rail traffic has remained relatively steady. Since significantly fewer people work in rail yards and on trains than there used to be, smaller teams have to support a workload designed for far more people.

This shift means it’s much more difficult for rail employees to keep up with the demands of their jobs. The increased stress is a major cause of high workplace accident and injury rates. Stress also means rail employees are more likely to make mistakes on the job, contributing to the increasing rates of rail accidents.

Understaffing is a particularly big issue in maintenance. Many rail accidents are entirely preventable but happen anyway because a mechanical failure goes unnoticed. This fact indicates that rail employees may need more time to conduct thorough inspections. Allowing more time and resources could prevent hundreds of accidents.

Improving Railway Safety

The past few years have seen a sharp increase in railway accidents, particularly those involving hazardous materials. A few main factors are driving the uptick in rail accidents, including poor infrastructure, inadequate maintenance and staffing cuts. By addressing the leading causes behind recent rail accidents, transportation and logistics leaders can take action to improve rail safety for everyone.

prices
Uncategorized

Road Freight Prices Rise unexpectedly in the Lead up to Christmas, Increasing in November for First Time Since 2019

Leave a comment

Significant increases in courier prices have contributed to rising overall costs, adding further strain to UK freight service providers during peak season.

As costs mount in the busiest period of the year, the latest data from the TEG Road Transport Price Index has shown a jump in road freight prices in November. This marks the first November since 2019 to experience an increase, however, prices remain lower than November prices in the previous two years. With pressure on the haulage sector following a record year of UK haulier insolvencies, industry players will be hopeful for a year of less volatile costs heading into 2024, with unpredictable fuel prices creating an uncertain forecast.

November figures show a rise in the overall price per mile for haulage and courier vehicles, increasing by 1.4% from 120.5 to 122.2. This rise was largely due to a notable jump in courier prices, increasing 125.5 to 128 points (2.0%). Haulage prices also increased slightly, rising 0.6 points from 114.8 to 115.4 during November, just 0.5%.

Despite the price of road freight services rising, fuel prices have dropped in the height of peak season, which will come as welcome news to operators reigning in expenditure during the most expensive period of the year. Following recent legislation forcing fuel retailers to display fuel prices online, current petrol prices are at £151.02 (-2.65% change), with diesel prices at £158.97 (-1.98% change). With motorists able to shop around, the initiative looks to be a success with prices down an average of 20.79% from last year.

463 UK haulage firms fold in the last year

The last year has proved exceptionally challenging for many UK hauliers. Data collated by accountancy firm Price Bailey has shed light on the pressures faced by UK haulage businesses, with twice as many going bust in the last 12 months as two years ago.

The industry has been struggling due to a number of factors constraining profits, including soaring overheads and interest rate hikes which have made servicing debt increasingly expensive.

The data report noted particular risk for London-based haulage businesses, with 41% currently classified as maximum risk versus 26% this time last year. This trend will undoubtedly spread across the UK, with pressures mounting as a result of untenable operational costs.

Autumn Statement reflections – Chancellor falls short of tangible support for haulage

The recent Autumn Statement was largely underwhelming for the industry, with announcements lacking in notable provision for UK hauliers requiring support for the year ahead.

The announcements did include a pledge of £2bn dedicated to supporting the manufacturing and development of zero-emission vehicles, which will be a great help in supporting net-zero efforts. However, the Chancellor made no mention of cancelling the planned increase in fuel duty next April, or plans to tackle the UK’s pothole problem, despite £8.3 billion being pledged.

Lyall Cresswell, CEO of Transport Exchange Group, says:

“We’ve seen rising prices over the last month, when typically prices experience a dip at this point in the pre-Christmas busy season. It will be interesting to see if this head start in prices rising pushes December prices up even further. Fortunately, fuel prices are continuing to drop and road freight prices remain lower than last year, so we are entering 2024 with cautious optimism.

“As we look towards next year, we’re hopeful that government promises to the haulage sector will be upheld and that we will see notable progress in the proposed initiatives to accelerate net-zero efforts.

“While the recent Autumn Statement was lacking in significant support for the industry, we are confident that the new year will bring many exciting opportunities, and that 2024 will be a better year for the road freight industry.”

Kirsten Tisdale, Director of Logistics Consultants Aricia Limited and Fellow of the Chartered Institute of Logistics & Transport, says:

“Despite volumes being (a very believable) 10% down this year according to Richard Smith, Managing Director of the RHA, and diesel being deflationary compared to a year ago, the TEG haulage price index rose very slightly, narrowing the gap on last year’s figure.

“The courier index was more buoyant, nearly closing the recent gap against last year, which may have something to do with the timing of Black Friday.”

medical
Global Logistics, Global Trade Daily

Challenges in Supply Chain Logistics for Global Medical Product Distribution

Leave a comment

The global distribution of medical products presents a labyrinth of challenges within its supply chain logistics. The transportation, storage, and delivery of pharmaceuticals, vaccines, medical devices, and other healthcare essentials demand precision, efficiency, and adherence to stringent regulations. However, amidst the noble pursuit of ensuring timely and equitable access to these crucial products, various hurdles pose significant challenges.

The Nuances of Supply Chain Logistics

In recent times, the importance of a resilient supply chain for medical products has come to the forefront. The intricacies of managing inventory, optimizing transportation routes, maintaining quality control, and navigating regulatory frameworks have become more evident than ever before.

Supply Chain Disruptions: Global crises, geopolitical tensions, natural disasters, and pandemics have exposed vulnerabilities in supply chains. Interruptions in manufacturing, transportation bottlenecks, and sudden surges in demand often lead to shortages and delays in the distribution of essential medical products.

Regulatory Compliance: Strict regulatory requirements, varying across regions and countries, add layers of complexity to global medical product distribution. Compliance with diverse standards and documentation necessities requires meticulous attention and resources.

Temperature-Controlled Logistics: Many medical products, particularly vaccines and certain medications, demand strict temperature control throughout the distribution process. Maintaining the cold chain, especially in regions with inadequate infrastructure, poses substantial logistical challenges.

Aiding Distribution Efficiency

In addressing these challenges, prescriber points are pivotal in streamlining the distribution process. These points help optimize healthcare professionals’ allocation and prescription of medical products, fostering efficient supply chain logistics.

Enhanced Inventory Management: Prescriber points facilitate better inventory management by providing real-time data on product usage, demand patterns, and expiration dates. This information aids in preventing overstocking or understocking of essential medical supplies.

Efficient Prescription Practices: Healthcare providers utilizing prescriber points can ensure the appropriate and timely prescription of medical products. This not only avoids unnecessary stockpiling but also helps in forecasting demand accurately.

Optimized Distribution Channels: By utilizing prescriber points effectively, distribution channels can be streamlined, ensuring that medical products reach their intended destinations promptly and efficiently.

Tackling Challenges Through Innovation and Collaboration

The evolving landscape of supply chain logistics for global medical product distribution demands innovative solutions and collaborative efforts.

Technological Advancements: Integrating technology, such as blockchain for transparency and traceability or AI-driven predictive analytics for demand forecasting, can significantly enhance supply chain resilience.

Public-Private Partnerships: Collaboration between governments, international organizations, pharmaceutical companies, logistics providers, and healthcare institutions is crucial. Such partnerships can pool resources, expertise, and infrastructure to overcome logistical hurdles.

Education and Training: Investing in training programs for personnel involved in supply chain logistics ensures a skilled workforce capable of handling the complexities of global medical product distribution.

In conclusion, the challenges inherent in supply chain logistics for global medical product distribution are multifaceted and demanding. However, with concerted efforts, leveraging prescriber points, embracing innovation, and fostering collaboration, the industry can navigate these challenges more effectively. Supply chain resilience is pivotal in ensuring the continuous and equitable distribution of essential medical products worldwide.

supply chain
Archives, Uncategorized

How to Manage Your Supply Chain No Matter What Comes Next

Leave a comment

By the first quarter of 2022, most companies hoped pandemic-related supply chain disruptions would be a distant memory. But new complications arose: port congestion, raw material shortages, labor challenges, inflation, and an ongoing war in Ukraine led to bottlenecks in every link of the chain over air, sea, and land. At the same time, climate change caused the threat of natural disasters to loom ever closer. As a supply chain leader, you may have to adapt quickly by the day, or even by the minute, to navigate uncharted territory. Here are key strategies to help you stay on top in the coming year — no matter what arises.

Top Supply Chain Challenges

Research suggests supply chain issues will continue to affect supply chain operations through 2023. There was a shortage of over 80,000 truck drivers in the United States in 2021, and that number could reach 160,000 by 2030. This scarcity is having a strong effect on retailers.

Similarly, a lack of warehouse space prevents retailers from meeting consumers’ expectations. Warehouses are already overflowing; there is no more available space to fill. The only solution to rising consumer demand seems to be acquiring new warehouses, which is expensive. Real estate prices have skyrocketed due to competition from other industries for the land and building supplies needed.

Furthermore, since the pandemic began, online shopping has trended upward. Consumers expect more items from retailers, and they expect them promptly. However, this stretch on the supply chain will likely reduce retailers’ abilities to keep up with customer expectations. All of this presents you with problems in the coming year.

How to Stay on Top of Today’s Biggest Supply Chain Challenges

Short-Term:

  • Leverage near-term trends and patterns.

Given the constant upheavals of recent years, accurate, effective demand planning has become a top priority for businesses worldwide. With proper supply chain planning, you can sense demand for the near term, taking into account real-time market fluctuations. This helps you accurately plan and forecast demand, keep your expectations realistic, and ensure the right amount of product is available in the right place and at the right time.

  • Refresh your products.

Over- and under-ordering, producing, stocking, and spending have led to the unimaginable wastage of material, free cash flow, and sustainability in businesses across the world for decades. By identifying a roadmap of top-priority products based on sales and margins, you can quickly rectify and effectively accelerate your bottom line, thus driving a sustained market advantage. You can effectively save costs by leveraging optimized production, product mix, material movement, inventory management, and asset utilization.

Long-Term:

  • Fine-tune your forecasting.

Of course, you can’t predict the future, but you can closely monitor your flagship products and track their prices, delivery times, and other factors. For example, if the price of a key product suddenly goes up, that could mean that a supplier is having trouble delivering. Determining when and why suppliers are struggling can be important for the early identification of disruptions in your supply chain. Don’t wait for critical products to stop showing up at your door or until prices soar sky-high.

  • Look around you.

If a particular supplier is giving you trouble, can you switch suppliers? Maybe shift from an overseas manufacturer to one that’s closer to home? If you can’t source one manufacturing component, are there any alternatives you can look into? Taking variables like shipping time into account when considering your supply options may help you choose the best choice for your business. For example, transportation costs from Southeast Asian markets have been increasing over the last few years, but a supplier in Central America could be an affordable alternative.

5 Supply-Chain Strategies to Keep Your Business Relevant

  1. Use accurate forecasting.

Correct forecasting can help you anticipate changes in customer demand so you can determine how much inventory you should have. Maintain close communication with your customers to understand their current needs and wants. Be willing to adjust your offerings as needed to keep up with changes in the marketplace. Meanwhile, keep a close eye on your competition and what they are doing to stay ahead of the curve.

  1. Invest in artificial intelligence and other technology.

Implement artificial intelligence solutions and advanced analytics to make data-driven decisions. This can include tools that offer real-time insight into your inventory levels, orders, and supplier performance. Knowing this information can help you avoid the worst supply chain volatility.

  1. Understand supply chain challenges and how they affect you.

Supply chain management is about more than just sourcing raw materials. It’s about understanding and optimizing all the processes in between. That’s why it’s important to utilize existing data, analytics, and modeling tools to analyze your supply chain operations and identify areas of risk and potential improvement opportunities. Look for ways to optimize processes, reduce waste, and improve efficiency across the board.

  1. Reevaluate your inventory location.

Consider where your inventory is located. Does it make sense to move it closer to your customers? If not, think about other ways to optimize your supply chain and distribution processes to stay ahead of the curve.

  1. Make contingency plans.

Always prepare for unexpected disruptions or crises by having plans to keep operations running even if something goes wrong. For example, how long can you hold out if you can’t move your product due to a disruption? Do you have a line of credit so you can secure a cash flow or get a short-term loan? How many customers can you afford to lose if you can’t sell a key product? Whether it’s dealing with natural disasters, labor strikes, regulatory issues, or any other problem that might arise, be prepared to take swift action to mitigate the impact on your bottom line and reputation.

Above all, stay focused on continuous improvement, whether that’s leveraging new technologies or finding creative solutions to today’s enormous challenges. The demanding supply chain landscape requires constant evolution and adaptation. Still, with careful planning and a willingness to take risks, you can ensure that your business remains competitive for years to come.

Author Bio

Anita Raj is a seasoned technology thought leader and product marketing expert for building impactful go-to-market strategies for targeted markets such as Europe, the U.K., and the U.S. She is the vice president of product marketing at ThroughPut Inc., responsible for the vision, strategy, and execution of go-to-market and product marketing initiatives, including value proposition, product launches, customer marketing, and product life cycle marketing.

 

forklift warehouse
Global Logistics, Uncategorized

Is Brett Favre Running Your Supply Chain? 

Leave a comment

As a die-hard Packers fan, it’s been 30 years since I’ve worried about a quarterback. While your average Bears fan suffers from PTSD after watching 30 different quarterbacks over the same period, I’ve been unconsciously lulled into thinking we will always have a Hall of Fame QB under center. Brett Favre joined the Packers in 1992, the very same year I drew up the industry’s first modern WMS architecture. Since then, we have made halting and incremental progress, building on aging standards that calcify how operations are driven inside the warehouse. 

In our industry, we fell asleep; Brett Favre is still under center. We need to move on. The warehouse has become the heart and soul of the supply chain, where inventory, demand, suppliers, distributors, customers, value-added services, and labor all meet to orchestrate increasingly complex processes to serve customers. 

We need a modern, creative, and flexible quarterback, er, I mean WMS/WES, to run today’s increasingly complex offense…ugh…increasingly complex warehouse. Think no code/low code warehouse optimization. In the next two to five years, we will see profound transformations in warehouse operations. \

The Technological Battleground of the Warehouse

Let’s talk about real life, life in the modern world of supply chain. The floor is now the technological battleground of the warehouse. It houses sortation, mechanized picking, high-speed conveyors, autonomous mobile robots (AMRs), and various other picking technologies. Each system comes with its own system and logic, which may or may not align with the rest of the facility. Warehouses need an intelligent system that can orchestrate the entire operation – that’s where the WES – or Warehouse Execution System – comes into play. WES, one of the most confusing terms in warehousing, has been bantered about to describe all kinds of concepts. But let me summarize. WES provides coordination and optimization across automation subsystems that share data to drive maximum ROI – essentially the quarterback of the warehouse. 

WES originally began by coordinating low-level warehouse control system elements. Most WES-only vendors’ scope of visibility is limited to this level of the system. But, in addition to data feeds from low-level equipment, the ideal WES should provide a truly higher-level dynamic orchestration for customers. It should work downward to optimize the order fulfillment flow by digesting massive amounts of data from order feeds, the progress of waves and SLA commitments, and other higher-level data. It should also provide end-to-end warehouse visibility and updates so your warehouse can run at peak efficiency. 

The solution should be a modern composable platform that enables orchestration across various devices and systems on the warehouse floor – enabling WES to reach the pinnacle of functionality. This high-speed streaming data engine should provide a comprehensive, bird’s-eye view of your warehouse operations and enable data-driven decisions. 

Streaming event data allows you to perceive every aspect of your operation, from low levels to the highest, in ways that allow you to take systematic action. Being able to see all the warehouse elements, such as order volumes, labor placement, and moment-to-moment structural pressures, is crucial in making informed decisions – and informed decisions increase ROI. 

This modern solution should take the pulse of your sortation system, the health of conveyor belts, the automation availability status of different stations, order volumes, and SLAs, and provide all of this data to make better operational decisions and scale your business. It should help you see everything from incoming order volumes to blocked sensors as the WES expands your scope of influence to every part of the order fulfillment operation.

Maybe Jordan Love is the answer; we need more “unit and volume testing” in the Packers offense for sure. I do know in today’s digitally demanding landscape, we should focus on interoperability and composability to meet modern warehouse management needs to provide customer choice, agility, scalability, and satisfaction. It’s the only path forward for companies to reach maximum ROI, and fast.

Author Bio

Mark Fralick is a software expert known as the “founding father of modern WMS architectures.” He is also Chief Technology Officer for Softeon, the only tier-1 warehouse management system (WMS) provider focused on optimizing warehouse and fulfillment operations, with the capability to run the most complex 3PL warehouses in the world. Softeon is laser-focused on customer results, with a 100% track record of deployment success. He also loves the Packers. For more information, please visit www.Softeon.com.

 

chain global failure friedman footprint relationship chinese registrar supply analytics life
Global Trade Daily, News, Uncategorized

GEP Global Supply Chain Index Signals Prolonged Manufacturing Downturn Through 2024

Leave a comment

The GEP Global Supply Chain Volatility Index, a key indicator monitoring demand, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses, remained in negative territory at -0.34 in November. This indicates an eighth consecutive month of spare capacity in global supply chains, suggesting a persistent manufacturing slump into 2024.

Todd Bremer, Vice President of Consulting at GEP, highlighted the ongoing excess vendor capacity, signaling that the end to the global manufacturing recession is still distant. North America stands out in resisting global economic headwinds, while Asia’s sustained excess supplier capacity gives manufacturers leverage to drive down prices in 2024.

GEP Global Supply Chain Volatility Index

November saw a continued weakness in demand for raw materials, components, and commodities, with North America showing signs of recovery. Output and new orders at intermediate goods makers in the U.S. improved. Conversely, Europe faced a severe demand slump, and Asia experienced one of the greatest degrees of underutilized supplier capacity since the post-pandemic era began, posing challenges for the global manufacturing outlook.

Key Findings for November 2023:

– DEMAND: Despite a softer downturn, weakness in demand persisted globally, with North America and Asia showing less aggressive cuts to purchasing compared to considerable declines in Europe.
– INVENTORIES: Global businesses remain cautious about building up stocks, with inventory managers reluctant to hold surplus stock in warehouses.
– MATERIAL SHORTAGES: Reports of item shortages fell in November and remained at their lowest since January 2020.
– LABOR SHORTAGES: Reports of backlogs due to labor unavailability remained historically subdued, indicating unconstrained production capacities.
– TRANSPORTATION: Global transportation costs stabilized, holding close to the long-term average in November.

Regional Supply Chain Volatility:

– NORTH AMERICA: The index rose to -0.21, its highest level since April, suggesting that the manufacturing downturn has passed its peak in the U.S.
– EUROPE: The index rose to -0.85, indicating significant economic weakness and a looming recession for the continent.
– U.K: An increase in the index to -0.58 tentatively suggests that the U.K.’s economy may fare better than some of its European peers, but suppliers still experience considerable spare capacity.
– ASIA: The index rose to -0.24, still indicating one of the greatest degrees of vendor spare capacity in the post-pandemic era.

retailers
Global Logistics, Global Trade Daily, Uncategorized

6 Reasons Retailers Should Care About Supply Chain Visibility During the Holiday Peak Season

Leave a comment

As the holiday season approaches, retailers are gearing up for the annual rush, both online and in-store. The 2023 holiday season will pose many challenges due to changed consumer demand, the uncertain economy, ever increasing delivery charges and unreliable delivery service in part caused by lack of warehouse labor. During this festive, yet highly complex, frenzy, supply chain visibility emerges as a critical factor that can make or break the holiday success for retailers. Real-time Item Level Visibility (RTILV) supported by technologies such as Radio-Frequency Identification (RFID) and advanced traceability software play a pivotal role in achieving this visibility goal. 

Here are six compelling reasons why retailers should make supply chain visibility a top priority, especially during the holiday peak season:

  1. Accurate Inventory Management

One of the primary challenges during the holiday season is managing inventory effectively. RTILV enables real-time tracking of products as they traverse the supply chain through the use of RFID technology allowing retailers to move beyond traditional barcode scanning. Paired with traceability software, this technology provides a comprehensive view of inventory levels, locations, and even product conditions. Retailers can thus maintain precise control over their stock, ensuring that popular items are readily available and reducing the risk of overstock or stockouts.

  1. Enhanced Order Fulfillment Speed

Holiday shoppers expect swift and reliable order fulfillment. RTILV allows retailers to monitor the progress of orders in real time. When integrated with traceability software, this data can be leveraged to identify bottlenecks and streamline fulfillment processes. By optimizing order processing speed, retailers can meet customer expectations for timely deliveries and elevate their overall shopping experience.

  1. Proactive Issue Resolution

The holiday season is rife with potential disruptions, from unexpected surges in demand to logistical challenges. RTILV empowers retailers to identify issues before they escalate. By tracking the movement of goods in real time and providing key insights based on the collected data, retailers can pinpoint delays or inefficiencies in the visibility platform, allowing for swift intervention and resolution. This proactive approach minimizes the impact of disruptions, ensuring a smoother supply chain operation during the critical holiday period.

  1. Optimized Customer Experience

Consumer expectations continuously increase and even more during holiday peak season, making an exceptional in-store experience paramount. RTILV enables retailers to go beyond basic inventory tracking. Smart shelves and real-time pricing adjustments become possible, providing customers with accurate product information and reducing the likelihood of frustration due to inaccurate stock levels or pricing discrepancies. This also creates efficiencies for in-store employees improving their jobs and allowing them to focus more on the in-store shopper.

  1. Data-Driven Decision Making

RTILV platforms generate a wealth of valuable data providing retailers with real-time insights that can be turned into real-time decisions. Retailers can leverage this data to gain insights into consumer behavior, supply chain performance, and overall operational efficiency. By applying artificial intelligence and machine learning on this data, retailers can make more real-time, faster, better informed, data-driven decisions that extend beyond the holiday season. This analytical approach positions retailers to adapt quickly to changing market conditions and continuously optimize their supply chain strategies.

  1. Increased Retail Profitability

Retail profitability is significantly impacted by supply chain visibility in several ways. When retailers have a clear and real-time understanding of their supply chain processes, it enables them to make informed decisions, reduce operational costs, enhance efficiency, and ultimately improve their overall profitability.

Enhanced visibility allows retailers to identify and eliminate inefficiencies in their supply chain processes. This can result in reduced operating costs, including transportation, warehousing, and labor expenses, contributing directly to improved profitability. Accurate visibility into inventory levels and demand patterns helps retailers optimize stock levels. By preventing overstock or stockouts, retailers can reduce carrying costs, minimize the need for markdowns, and avoid missed sales opportunities, positively impacting profitability. Clear visibility further enables retailers to minimize holding costs associated with excess inventory. This includes costs related to storage, insurance, and potential obsolescence. Reduction in holding costs directly contributes to higher profit margins. Improved visibility also facilitates better decision-making in order fulfillment processes. Retailers can choose the most cost-effective shipping methods, warehouse locations, and distribution strategies, leading to cost savings and increased profitability. Finally, supply chain visibility helps minimize stockouts by providing insights into inventory levels and demand fluctuations. This prevents lost sales opportunities and ensures that retailers can meet customer demand, positively impacting overall revenue and profitability.

The holiday peak season presents both challenges and opportunities for retailers. By embracing real-time item level visibility, retailers can ensure seamless operations during the holiday rush and also establishes a foundation for long-term success. Supply chain visibility allows retailers not only to meet but to exceed customer expectations during the most crucial time of the retail calendar.

Supply chain visibility is also a critical factor in enhancing retail profitability. By optimizing operations, reducing costs, and making strategic decisions based on real-time data, retailers can create a more efficient and resilient supply chain, ultimately leading to improved financial performance.

Author Bio

Bart De Muynck is a strategic advisor at Mojix, a provider of enterprise SaaS solutions for the automation and digitization of operations and supply chains in the luxury, retail, food, and industrial markets. He has worked for major international companies, including EY, GE Capital, Penske Logistics and PepsiCo, as well as several tech companies. He also spent eight years as a vice president of research at Gartner and, most recently, served as chief industry officer at project44. He is a member of the Forbes Technology Council and CSCMP’s Executive Inner Circle.

logistics plus
Global Logistics, Global Trade Daily, News, War

Logistics Plus Successfully Executes Complex Delivery Amidst Ukraine’s Ongoing Challenges

Leave a comment

Logistics Plus, a global leader in transportation and logistics, recently accomplished a formidable task—overseeing the delivery of 22,000 tons of essential gas pipes to Ukraine’s Port of Chornomorsk. This achievement, marking the first non-grain, U.S.-managed ship to reach the port since the onset of the war, showcases the company’s commitment to excellence in the face of demanding circumstances.

Challenges arose during the project as Russia’s withdrawal from port access agreements and subsequent bombings of Ukraine’s port infrastructure forced Logistics Plus to reroute the shipment through Romania’s Constanta Port. This strategic move enabled the safe and efficient transport of the gas pipes to Ukraine, involving multiple modes of transportation, including ships, barges, and over 1,000 truck shipments.

Teams from Logistics Plus across China, Poland, Ukraine, Turkey, and the USA played crucial roles in planning and executing the project. Despite ongoing assaults on Ukraine’s port infrastructure, the company successfully delivered the final shipment to the Port of Chornomorsk, demonstrating its global risk management capabilities and dedication to overcoming logistical challenges.

Jim Berlin, Founder & CEO of Logistics Plus, highlighted the operation as a testament to the company’s ability to navigate complex challenges, emphasizing the collaborative effort of international teams. With over 27 years of service, Logistics Plus continues to be a reliable logistics partner, overcoming obstacles to meet client needs and support communities worldwide. This recent operation adds another proud chapter to the company’s successful history across 50+ countries.

solution transportation Venezuela, Colombia Open Binational Bridge to Boost Trade logistics third-party drummond arrive rockfarm businesses
Global Logistics, Global Trade Daily, Uncategorized

The Solution Leading Supply Chains into the Future

Leave a comment

As supply chains have become increasingly opaque as a result of growing global transport and competition, a simultaneous need for increased transparency and efficiency has developed in order to meet increasing regulatory requirements. 

To date, the solution has been simple: Scan it. 

Warehouses, transport vehicles, shipping centers, workers, and end-users have historically relied on manual scanners to determine what items are where, how quickly they’re moving, and when they’re due at their final destination. 

It’s undeniable: scanning is ubiquitous for supply chain management. Though that doesn’t necessarily mean it’s the best solution. As the labor market tightens, technological advances mean that retailers can implement new tech to change the fundamental ways the market operates. 

Is it time for a supply chain technology revolution? 

Scanning has been transformative for many businesses and retailers. It was demonstrably superior to the old, paper-and-pencil method of tracking inventory, which is why billions are spent each year on radio frequency identification (RFID) readers — a market still growing at almost 10 percent a year. Even more is spent on barcode readers. 

Despite this, there is a downside to scanning, which leads us to our primary question: Is the supply chain industry ready for a new solution? 

Millions of scanners are in use everyday, though they rely on the a human’s ability to work effectively and with a 100% accuracy rate.  

All of this is happening at a time when supply chains are growing more complicated, not less. In the U.S. alone, companies ship 59 million parcels each day, a number expected to rise to 110 million by 2027. The contents of these millions of parcels end up in people’s homes, in business inventory, or on retailers’ shelves—provided they don’t get lost along the way. 

No wonder businesses are looking for solutions that allow them to better track products – from manufacturer, to distributor, to retailer, to customer.

Scanners have been a solution, but they are not the end game.  We need a tracking technology with more accuracy and precision that eliminates manual scanning – and the inevitable human error. 

So we need to pose this essential question:  Is reliance on millions of scanners the best use of human resources? Or is today’s tracking technology, long established, merely yesterday’s step towards a more innovative solution.   

The ‘Scan It’ to ‘Sense It’ Evolution

With a better, more ubiquitous, and low-cost tracking solution, companies won’t need to invest the billions of dollars into scanners or the infrastructure required to use them. Workers can be redeployed in ways that add value to their business. Additionally, 100-percent automation means supply chain and inventory tracking errors can be virtually eliminated.

The ambient Internet of Things (IoT) is the solution we’ve been looking for. 

Ambient IoT is an innovative evolution from scanning culture, and whether you know it or not, companies are already reaping the benefits.

The Tech Fueling Ambient IoT 

Ambient IoT technology combines inexpensive, self-powered, stamp-sized compute devices (called IoT Pixels) that are affixed to products and packaging.  These devices harvest energy from standards-based Bluetooth wireless communications; and cloud-based data collection and analytics. 

With this revolution in place, workers don’t need to scan anything, virtually eliminating human error from inventory operations and freeing them to add value in other ways. Ambient IoT Pixels communicate via an established mesh of existing wireless devices, such as smartphones and wireless access points, or through easily deployed, off-the-shelf, standardized gateways installed in retail stores, warehouses, delivery trucks, and more. 

What’s more, scanning goods provides data at just a point in time. The ambient IoT provides continuous information in real-time, tracking goods and inventory as they move through warehouse, shipping infrastructure, and the entire supply chain.  Wherever things are, Ambient IoT is. 

Moreover, ambient IoT technology includes sensors for monitoring conditions like temperature and humidity.  Importantly, it also enables carbon footprint calculations in the moment, versus the current after-the-fact solutions. 

Not only does better product tracking make companies more efficient and successful, it makes it fast and efficient for them to comply with a growing number of government traceability regulations. In the U.S., for example, the Food Safety and Modernization Act’s Rule 204 (FSMA 204), requires companies to track food products through the supply chain and share data with the Food and Drug Administration. For small and large companies, this means either a lot more scanning, or a golden opportunity to use ambient IoT for automated, real-time, end-to-end compliance.  

No matter how you look at it, industries are reaching an inflection point in their supply chains where complete visibility will become a necessity – from an ROI, regulatory, and investor perspective. 

Automation Helps Workers, Too

As companies reach the inflection point described above: an opportunity arises: do they continue to invest in a scanning infrastructure and attempt to hire all the workers required to execute? Or is it more effective to embrace ambient IoT technology and invest in re-allocated labor to help grow the business?

With ambient IoT, that decision just became a whole lot easier. 

With both a lower labor and infrastructure cost, the technology works simply due to its integration into the environment. Additionally, the tech requires no added training or human intervention. 

In a 2022 study, Harvard Business Review identified the perks and pitfalls of warehouse automation technologies.  HBR experts wrote, “Automation could make workers’ jobs safer and more meaningful,” in reference to technologies that minimize time spent in sprawling warehouses.  They noted that tools that “enable workers to do their jobs better,” could lead to better results. 

Interestingly, the researchers dispelled the myth that automation was at odds with worker satisfaction.  

With scanning as our primary inventory tool, businesses have cracked the code to digitalization, but not yet automation. With this critical distinction in mind, we must recognize that only ambient IoT holds the key to true automation. With the new technology, companies can track all of their goods, all of the time, allowing their employees to focus on positive and profitable customer experiences. 

armada
Global Logistics, Global Trade Daily, News

Armada Supply Chain Solutions Unveils State-of-the-Art Logistics Hub in Dallas to Propel Industry Growth

Leave a comment

Armada Supply Chain Solutions Expands Reach with Inauguration of Dallas Logistics Hub

Armada, a prominent provider of logistics solutions catering to the food industry, is thrilled to announce the official opening of its latest warehouse facility situated at 101 Enterprise Drive in Flower Mound, Texas. This cutting-edge Hub signifies a strategic move for Armada, enhancing its capacity, efficiency, and overall service to clients and the market. Spanning an impressive 465,000 square feet, the facility boasts three distinct temperature zones, making it an ideal space to support Armada’s flourishing business.

John Burke, the CEO of Armada, expresses his enthusiasm, stating, “The unveiling of our new Dallas Hub Center is the culmination of years of meticulous planning and hard work. As we consistently invest in infrastructure, the Dallas Hub stands not only as a physical space but also as a symbol of our unwavering commitment to innovation and industry growth. Armada’s resilience and our dedicated team will furnish both existing and future clients with the essential framework for success.”

The facility includes 357,069 square feet of ambient space, equipped with 72 dock doors to facilitate seamless operations. The temperature-controlled section comprises 33,678 square feet of refrigerated space and a 54,630 square foot freezer, complemented by a 16,723 square foot cool dock and 16 dock doors. Maintaining food-grade standards and Merieux NutriSciences approval, the facility employs Kargo optical reader verification for shipping and receiving, coupled with a narrow-aisle layout to optimize operational efficiencies.

The Dallas Hub aligns seamlessly with Armada’s existing facilities in Greencastle, PA, Romeoville, IL, and East Point, GA, all of similar size. Representing a significant milestone for Armada, the new hub is poised to offer enhanced flexibility and reliability to clients. Moreover, the operational expansion brings about the creation of 70 new jobs in the region.