New Articles

MOVING FORWARD: GLOBAL TRADE’S TOP FREIGHT FORWARDERS OF 2021

freight

MOVING FORWARD: GLOBAL TRADE’S TOP FREIGHT FORWARDERS OF 2021

Established in 1980 to meet the needs of a newly deregulated domestic transportation market, Armstrong & Associates provides unparalleled third-party logistics market research. With offices smack dab in Middle America (Milwaukee and Madison, Wisconsin, to be precise) and a newsletter that is emailed to more than 88,000 subscribers globally, A&A, as the hep cats call it, churns out market estimates found in media accounts, trade publications (like you-know-who) and securities filings by publicly traded 3PLs,

One thing consumers of A&A’s research gobble up every year is the Top 25 Global Freight Forwarders List. The 2021 version (see accompanying chart) includes rankings based on 2020 gross revenue and freight forwarding volume.

Once again, DHL, Kuehne + Nagel, DB Schenker, DSV Panalpina, Sinotrans, Expeditors and Nippon Express take the power positions, but there are also new entrants: Apex Logistics International and CTS International Logistics.

Wherever your company falls (or does not fall) on the list, it is important to consider that we are (fingers crossed) coming out of unprecedented times in the ocean freight shipping game. A shipping container shortage led to a massive spike in freight rates. Of course, during the height of the pandemic, production and trade halted, leaving ocean carriers in limbo—and many are still trying to regain their sea legs. 

Yes, the busiest trade routes are humming again. The Long Beach/Los Angeles port complex experienced a 23% spike in volume in December 2020 compared to the previous year and, despite the pandemic, the second busiest December in their history. On the opposite coast, the ports of Charleston, South Carolina, and Savannah, Georgia, also dealt with massive influxes in traffic.

Ports that did not share in that success can at least take solace in knowing congestion has created fresh headaches for the industry leaders. Maersk and MSC have pulled certain carriers from their regular rotations in the short term. Timing shipments, so products can navigate through offshore parking lots and reach store shelves in time for the holidays, has become the sweet science. 

Meanwhile, many shippers say they’re operating at losses to meet their global customers’ demands. Keep in mind this is at a time when investing much more into that magic bullet known as digitization is all the rage. The aforementioned Maersk is using technology to streamline freight booking, particularly spot booking. CMA CGM, Yang Ming Marine and Hapag-Lloyd also introduced freight booking tools. And artificial intelligence (AI) is growing as a major force in global shipping.

Here comes another headache: The reliance on tech increases the risks of cyberattacks. Since 2017, nearly half of the top 10 freight carriers worldwide were victims of digital security breaches, including a $300 million loss from Maersk due to a ransomware cyberattack.

While noble, sustainability efforts create another money-sucker for ports and logistics companies. The freight shipping industry represents approximately 2.2% of all global greenhouse gas emissions, which expected to rise by 50% by 2050 if action isn’t taken. Carriers are doing their part by switching to more environmentally friendly fuels, such as liquified natural gas (LNG). Around 13% of new vessels ordered this year are LNG fueled, because a clean planet = priceless.

ARMSTRONG & ASSOCIATES
2021 TOP 25 GLOBAL FREIGHT FORWARDERS LIST

2021 Rank*

Service Provider

Gross Revenue 
(US$ Millions)**

Ocean 
(TEUs)

2020 Rank

1 DHL Supply Chain & Global Forwarding 28,453 2,862,000 1
1 Kuehne + Nagel 25,787 4,529,000 1
2 DB Schenker 20,761 2,052,000 2
2 DSV Panalpina 18,269 2,204,902 3
3 Sinotrans 12,174 3,750,000 4
4 Expeditors 10,116 1,091,380 5
5 Nippon Express 19,347 660,152 6
6 CEVA Logistics*** 7,416 1,081,100*** 7
7 C.H. Robinson 15,490 1,200,000 9
8 Kerry Logistics 6,867 1,019,924 10
8 UPS Supply Chain Solutions 11,048 620,000 8
9 GEODIS 9,135 866,631 12
10 Bolloré Logistics 5,265 761,000 11
11 Hellman Worldwide Logistics 2,972 905,100 12
12 Kintetsu World Express 5,750 640,063 13
13 Agility 4,018 771,000 14
14 Yusen Logistics 4,248 764,000 14
15 CTS International Logistics 2,160 1,021,007 Not listed
16 Hitachi Transport System 6,346 662,000 16
17 DACHSER*** 6,591 492,440 15
18 Toll Group 7,260 523,300 18
19 Maersk Logistics (DAMCO) 6,369 401,369 17
20 Apex Logistics International 2,274 190,000 Not Listed
21 Logwin 1,292 698,000 19
22 Mainfreight 2,467 347,638 21

 

* Ranking also factors in a forwarder’s air cargo shipments by metric tons.

** Revenues and volumes are company reported or Armstrong & Associates, Inc. estimates. Revenues have been converted to US$ using the average annual exchange rate in order to make non-currency related growth comparisons. Freight forwarders are ranked using a combined overall average based on their individual rankings for gross revenue, ocean TEUs and air metric tons.

*** Includes LCL shipments.

customers

Did Your Customers Disappear? How To Get Them Back In 2022.

Perhaps orders are down, in-store traffic has hardly rebounded, revenues are frustratingly slow to return and employee spirits are in the tank as well.

When customers go away and don’t come back, business owners and CEOs are left to scratch their heads as they try to figure out why. A probable culprit is that the business failed to maintain authentic customer and employee connections while implementing the latest communication technologies that have pushed relational interactions outside of the reality of their consumer’s experience, says Phil Kelley Jr. (www.philkelleyjr.com), author of Presence and Profitability: Understanding the Value of Authentic Communications in the Age of Hyper-Connectivity.

“Technology is rapidly changing the way people exchange information and ideas leading to tremendous efficiency opportunities, but no matter how much technology changes things, people have the same psychological need for positive human interactions,” says Kelley, who is president and CEO of Salem One, a company that specializes in direct marketing, packaging, printing and logistics.

If customers feel that they are not getting that interaction, he says, they are going to move to another business in search of it.

As businesses move into 2022, Kelley has advice for how they can bring back customers they have lost because of both external and internal communication misfires:

Customers want to talk with people, not machines. Kelley is wary of technology that cuts costs but fails to take the customer experience into account. ​​”Anyone at my company will tell you that I have a passion for answering phones as quickly as possible,” he says. “I absolutely refuse to use an automated call-response application. I know that if a client is calling us, they need something and want to talk to a person, not a machine.”

Relationships are built on true relational moments. Racking up “likes” on Facebook or Twitter, or sending and receiving canned sales pitches on LinkedIn, are not examples of really connecting with others, Kelley says. “Relationships don’t get built automatically, and leadership does not get conveyed by the number of keystrokes you make,” he says. “Success is based on the value you bring to the table, and comes only after investments of time and effort. A connection in and of itself is not a relationship, and for most people connections are missed opportunities.”

Brand communication should meet customers on their terms. Businesses often fail to get the most out of their advertising because the connection to the customer is off in some way, Kelley says. He gives as an example how online advertisements often work. If someone searches for a product, they soon see advertisements for that product on nearly every website they visit, even if the website isn’t appropriate for the brand. That can become annoying. “You need to know where your brand is showing up, and what kind of customers and potential customers your brand is in front of at all times,” Kelley says. “You also need to know who those customers are, what their tastes and preferences are, and how they do and don’t like to experience things.”

Connect in a way that turns customers into repeat customers. Long-term success depends on repeat customers, but too many businesses treat their relationship with customers as simply transactional, Kelley says. That doesn’t make for a satisfying relationship. “The highest-value communications are person-to-person, but that certainly doesn’t mean that your company can’t make a connection without those face-to-face communications,” he says. “Amazon is masterful at forging relationships with its customers just via their website. They do it by making it easy to find, order, and have delivered things that people really need or want. They make it easy to find more information on the products and make it easy to return something the customer isn’t satisfied with.”

Know that a great corporate culture results in satisfied customers. It’s well-established that an organizational culture where people feel engaged, connected and purposeful helps achieve financial success, Kelley says. “This is because the attitudes of the people in an organization ultimately reach and affect customers,” he says. “To put it simply, satisfied employees tend to foster satisfied customers. So, the time and energy you devote to creating a positive corporate culture is not an add-on to getting the job done. It’s an essential part of getting the job done – or at least, getting it done well.”

“Relationships are so important to people,” Kelley says, “that any company that makes a real connection with a customer can win that customer’s loyalty for life.”

_____________________________________________________________________

Phil Kelley Jr. (www.philkelleyjr.com) is the author of Presence and Profitability: Understanding the Value of Authentic Communications in the Age of Hyper-Connectivity. He also is president and CEO of Salem One, which specializes in direct marketing, packaging, printing and logistics. Kelley holds bachelor’s and master’s degrees in industrial and systems engineering from Georgia Tech as well as an MBA from Clemson University. He has served on the boards of directors of multiple nonprofit and for-profit organizations. Kelley has been an active voice in the print industry, refocusing industry success definitions within the rapidly developing world of corporate communications. 

trade

Take note: Address Global Trade Issues Early in Your Negotiations to Avoid Liability and Costs (Yes, this applies to you).

Premise: Nearly all companies have exposure to international trade laws when doing business. Spotting these risks early when negotiating agreements and transactions will prevent future liability and costs. So, when drafting agreements engaging in mergers or acquisitions, and conducting diligence parties, should be considering a number of important trade risk points that may be sprinkled throughout various business activities.

“Supply chain” is the buzzword right now for a reason, it’s an area where trade liabilities are growing significantly. On top of backups and slowdowns, additional tariffs or duties (import taxes) can make importing from certain locations more expensive than it once was, and more restrictions are being added to this already highly regulated activity. New ESG and human rights restrictions along with an expanding list of prohibited parties make planning a supply chain more challenging than ever. Additionally, if done incorrectly, the penalties associated with customs violations can be quite high, or, in a worst-case scenario, your shipments can also be seized and even destroyed without compensation.

Trade Controls Are Broader Than You Think 

Always screen your transaction for other tangential cross-border issues. If the company is directly or indirectly supplying the U.S. government with goods or services under a procurement agreement, ensure someone has reviewed whether any relevant Buy America criteria are met. Enforcement is on the rise so include proactive requirements for antiboycott compliance and anti-corruption representations in agreements and ensure training is being done as needed for both employees and third parties to decrease the risk of violations. Most trade-related rules and regulations apply to U.S. persons and U.S. companies both directly and indirectly. For example, if a third-party distributor sells your product to a person in Iran without required authorization – you can be liable.

Importing is Getting More Complicated

Before you commit to acquiring, merging with, or working with any business, ensure the security of its supply chain and that it is reporting the correct country of origin, classification codes, and other required information properly. Confirm that it has all relevant IP rights and that there are no infringing marks being used, and determine whether any anti-dumping or countervailing duties might apply to the imported product. If it turns out that additional, high tariffs are due – not only may penalties be imposed, but the government will also demand interest on its unpaid revenue. So, when drafting agreements consider representations from parties to minimize risks of wrong or missing information, changing regulations, and government enforcement cases, limit your liability if possible, and choose INCOTERMS (contract terms that determine which party has responsibly shipped goods at any time during the shipping process) wisely to limit exposure.

Sanctions Apply To all of Your Customer and Supplier Relationships

Like import regulations, U.S. sanctions prohibitions and restrictions are also expanding at a steady rate. To protect yourself and your business in this dynamic and fast-changing environment, ensure that any target companies or business partners already have sanctions compliance programs and are pro-actively complying with economic sanctions and associated mandatory requirements. This is an area in which you want to limit successor and indirect liability, as penalties can be extremely high. You don’t want to learn after the fact that your business partner has been buying inputs from or selling your product to a restricted party in China. So, for your own best interest, take the initiative to educate your partners as needed and get your information and inspection rights regarding the supply chain, indirect sales, and distribution network in writing.

Export Requirements Can Apply in the US Too

Similarly, export laws also carry a specific set of risks and liabilities for exporters. Filing and licensing requirements are complex and the rules apply broadly to all U.S. origin goods and technologies (even online only and SaaS products). Ensure that any target company or potential business partner has determined the correct export classification for its products and technology before you commit to investing, acquiring, or merging. Look out for red flags that products are being transshipped to countries without the proper authorizations. Similarly, if you are going to contract with an agent or distributor, make sure they understand export compliance because your liability does not end when you hand over the product.

Further, export classifications are no longer something companies only need to know if they export physical products to locations outside of the U.S. Export controls is also implicated if you share technology domestically in the U.S. with foreign nationals. and export classification can be a determining factor in whether a CFIUS (Committee on Foreign Investment in the U.S.) filing to the Department of Treasury is required before closing a deal – and this filing requirement may apply regardless of whether the target company exports at all.

Update Your Agreements and Compliance Materials

The government is expanding its enforcement initiatives and broadening its scope of review in corporate criminal enforcement cases. Thus, it is worth your time to slow down and do your homework to avoid bigger problems later. Talk to your Colleagues. Identify whether if you are already addressing these issues, and if not, create a plan to work trade reviews into your regular processes and workflows.

Don’t let simple compliance actions slip through the cracks. If you have compliance materials- read them and ensure they are up to date and are useful to protect the company. If not work with someone familiar with the risks and the law to update, retool, or enhance them.

Make your materials practically employable, set a tone at the top that compliance procedures are taken seriously, and ensure your standard agreements include trade provisions to minimize your risk. Once you’re comfortable that you have a solid compliance program or transaction checklist well-tailored to your business activities, complete an internal audit at set intervals to make sure that it’s being used and working.

Addressing trade risks before closing a transaction or signing a contract may save you not only from headaches but from getting to know the U.S. authorities all too well.

____________________________________________________________________

Abbey Baker, counsel at Lowenstein Sandler LLP, works with businesses and entrepreneurs seeking to expand their market position in the global economy while considering national security, trade regulation, and foreign policy concerns.

Doreen M. Edelman is the chair and founder of the Global Trade & Policy practice. She has more than 30 years of experience advising clients on the risks associated with export controls, customs matters and U.S. sanctions in cross-border M&A and investment transactions, and on the compliance requirements pertaining to technology, software, defense articles and services, and commercial goods.

automation tompkins

Automation Versus Human Innovation: How To Engineer An Equitable Economy

Are some companies moving closer to having more robots than employees?

Recent studies indicate a trend in that direction.

The data: Research from Google Cloud shows two-thirds of manufacturers who use artificial intelligence in their day-to-day operations say that their reliance on AI is increasing. And a report from PwC predicts that by the mid-2030s, up to 30% of jobs could be automated.

The key questions: How much automation vs. how much human innovation? Which is better for a sustainable economy? And why are some businesses spending more on automation than people?

Thought leader’s take: Jarl Jensen (www.jarljensen.com), ForbesBook author of The Big Solution: Deactivating The Ticking Time Bomb Of Today’s Economy, says large inequities between the labor class and corporations exist in part because of cheap lending practices, enabling corporations to borrow large sums from banks – and one result is the trend toward more automation.

“Corporations would rather have an employee base full of robots, and a select few humans to monitor the robots, because it saves them money in labor cost,” Jensen says.

“Borrowing without a maximum limitation means it is easy, and often more affordable, for corporations to invest in automation or robotics than their labor force. It is cheaper to take a loan from a bank to finance the purchase of artificial intelligence software than it is to re-train workers or engage in improving work skills. The unfortunate reality of our economic system is that there is no incentive for banks to stop making loans to rich people and corporations – even if the end result is a decrease in jobs due to automation and artificial intelligence.”

Jensen thinks the economy can be engineered to make it more equitable – ”an economy for the people.” These are three of the tools he suggests to fix the economy:

Direct deposits. “The first and best tool at our disposal is the money that a new and better version of the Federal Reserve would deposit directly into the bank accounts of every American of working age,” Jensen says. “This is not a basic income. It is an essential liberty.”

Jensen’s idea is that the direct deposits would be made for future work. The amount each working person would receive would be adjusted according to the signals being received from the economy.  “The way out of the debt trap is direct deposits,” he says. “Direct deposits put the people first. It forces the system to adjust to the needs of the people. The money we’re talking about for these direct deposits is money that the Fed simply creates out of thin air like it does when it issues money for loans to banks. But this money is not creating a debt that has to be repaid, thus does not grow the national deficit or become a debt burden for the Americans who receive it.”

Blue sky markets. Jensen describes blue sky markets as money for businesses that pursue the common good. This tool, he says, takes big problems out of the government’s hands and puts them in the hands of entrepreneurs. ”Blue sky markets issue money directly to fund commodity exchanges that effectively solve these big problems,” he says. “They create money for the purpose of fixing what is broken and making a more sustainable, stable, and compelling future.”

One example of implementing this tool is in addressing climate change. “Businesses would bid on the exchange to remove CO2 from the atmosphere,” Jensen says. “Money that is not debt-based, taken directly from the Federal Reserve, would pay the lowest bidder to remove the CO2. Competition for profits would compel entrepreneurs to figure out how to do it efficiently and effectively.”

New kind of savings account. “Today, any money you put in the bank doesn’t sit in your account,” Jensen says. “It gets repurposed. The bank uses it to invest, to loan out to other people or entities, and to create more debt. But if, alongside these new direct deposits, you had new high-interest bank accounts that are accessible to everyone, then that would keep some of the money out of circulation. Many people would choose to save the money and collect the interest.”

Jensen says the money to pay those higher interest rates would come from the Fed. With more people saving because of this high-interest incentive, and much less of that money going out in circulation, he reasons that inflation would not set in despite all the direct deposits and blue sky markets. “And as a huge bonus,” he says, “this system makes planning for retirement a lot easier.”

“Having an economy for the people is all about reimagining how we value money and restructuring how banks do business,” Jensen says. “It’s about real freedom, sustainability, and the optimization of society.”

__________________________________________________________________

Jarl Jensen (www.jarljensen.com) is ForbesBook author of The Big Solution: Deactivating The Ticking Time Bomb Of Today’s Economy. He’s the founder and president of Inventagon, a company creating simpler research and development solutions for organizations across the globe. Jensen holds patents for medical technologies that have reached sales of over $1 billion. He founded EuroMed, a company he sold in 2016, and has written five books about the economy and its relationship with society.

logistics

Sales Digitalization Trends in the Logistics Industry

The logistics industry across the globe is entering a new era. The accelerated development of digital technologies, combined with recent pandemic events, is the main catalysts for this change. With an increased demand for mobility and remoteness, digitalization is affecting all transportation segments, including sales processes that were firmly rooted in traditional procedures. As a result, companies worldwide are following sales digitalization trends in the logistics industry. They gather, process, and organize large volumes of information and work on making them easy to understand and use.

Current and future sales digitalization trends in logistics

This emergence of digitalization across various fields is bringing a lot of new players to the market. Once primarily dominated by large businesses, the transportation industry is experiencing a large influx of smaller distribution companies. The rise of modern, dynamic, remote-focused, and customer-oriented companies is now creating high competitiveness, which calls for a range of changes, from marketing to sales procedures, for many. The sales funnels need to go through a complete transformation to improve business operations.

What changes in technologies will have a breakthrough impact on the business now and in the next few years? Here are several sales digitalization trends every logistics company should be aware of:

-Online sales and automated pricings

-Shifting the focus to customer journey

-Automatization of procedures (AI)

-Customer acquisition changes

-Blockchain efficiency

Online sales and automated pricings

More than half of logistics companies are establishing online sales processes. However, not all the steps are touched equally. One example is the ability to provide online quoting and price estimates. Previously, they served more as an approximate estimate based on a specific set of static rules. Followed later by calls or contacts in person for negotiations. But, the ongoing digital sales revolution calls for a more dynamic solution. In general, by considering the type of goods, average delivery time, prioritization of shipments, and overall costs, the sales departments need solutions to provide instant and more precise results.

One way to solve this problem is to use dynamic automated pricing engines. They will collect real-time data by analyzing and combining different resources. Only then will you be able to successfully forecast and derive instant and precise rates. More likely, something similar to the software solutions airline companies are using today.

Shifting the focus to customer journey

The future of sales lies in their ability to focus on the customer journey. So far, it’s been proven multiple times that relationships with customers are what drive the best results. In essence, this requires specific tools like Customer Relationship Management (CRM) software solutions, which will allow you to better manage current and potential customers and communication with them. You will be able to gather behavioral and other data to help you increase sales through better customer service. In addition, CRM allows you to track and trace a variety of data – everything necessary to identify patterns so you can predict customer preferences. And prevent potential issues in the supply chains. There are also IoT tracking and tracing tools logistic companies can use to monitor shipments on both ends. Allowing such transparency will increase your company’s credibility, improve procedures, and make the transportation process more profitable.

Automatization of the procedures (AI)

Dealing with new technologies on a larger scale is never easy. Many companies experience difficulties when they need to adjust new salespeople to the changes. Fortunately, the training process can be much easier with the help of digital solutions. With Artificial Intelligence (AI) available today, we can automate many previously manual procedures, making the entire training and working system more efficient and less time-consuming. Rather than investing a lot of resources into slow mentor-like coaching, sales can use the capabilities of automation through upgrading their infrastructure and technology.

Another aspect of why AI is much better to focus on lies in these systems’ additional functionality. Features like tracking finances, anomalies, delays, and better delivery planning and predicting will reduce the overall logistical risks.

Customer acquisition changes

Like for many other industries, the logistics salesforce has to follow new arising trends in customer acquisition. This is the use of social media and other alternate networks. You can increase your business operations and provide better customer relations by using these digital platforms for engagement. Previously, social media channels were the mere focus of marketing teams. However, the need and goals of marketing and sales have to align and combine perfectly to give sales a chance to improve their operations. Whether we like it or not, this shift to social network communications is establishing itself as more than just a place of entertainment for customers. Active publishing means more quality leads for your sales in the future.

Blockchain efficiency

In addition, blockchain technology solutions can make your logistics process more effective. And improve your brand image as a whole. By allowing your customers to follow the delivery, you will increase the transparency and credibility of your services. It’s time effective and creates a better customer experience. Everything you will need to acquire more loyal customers.

Adopting all the digital solutions in your sales process doesn’t come without challenges, especially for older, larger, and more established logistics companies. When everything is firmly rooted in traditional approaches, transforming the entire business model is complex. Fortunately, scaling everything across your salesforce is everything but impossible. If you follow the best sales digitalization trends in the logistics industry, you can easily remain competitive in this new industrial revolution that is shaking the transportation world.

_______________________________________________________________

Dave Atkinson is currently working with the Best Movers in Florida on providing helpful information and guidelines for researching, improving, and planning the moving business. His writings can be used by both transportation companies and their customers to better understand advanced technologies in logistics processes.

tech

Retaining Talent Through Sustaining Momentum: Tech’s Starring Role in The Great Resignation

We’re in the middle of a major shift in the workforce.

The pandemic caused a massive change from shared office space to remote work. As people spent time at home—and as they faced a multitude of intense stressors and even direct loss—they reevaluated what’s important when it comes to their careers.

Because of this, we’ve seen four million people quit their jobs in July 2021, and a record-breaking 10.9 million jobs remain open. You may have also seen the troubling statistic that up to 95% of the workforce is considering leaving their current company right now.

Companies looking to recruit and retain high performers are smart to take action in light of this Great Resignation. However, the answers may not be found in hefty signing bonuses or hasty returns to in-office collaboration.

The key is to lean even harder into the technology that has gotten us through this pandemic.

The pandemic as an unfortunate but powerful catalyst

The COVID-19 pandemic dramatically changed business as usual, and companies had to become virtual, digital-centric, and agile faster than they could have imagined.

According to a global survey of executives conducted by McKinsey, companies took an average of only 11 days to move to remote working–40 times faster than they thought possible. Companies also adopted digital technologies for advancements in operations and decision-making 25 times faster than expected.

The pandemic disruption removed (sometimes artificial) barriers to adopting new technology and made it imperative that companies keep investing in technology to sustain, grow, and thrive.

Now let’s take it a step further: If we can leverage technology to get our businesses through a global pandemic, we can absolutely do the same to keep our people happy and engaged.

Here’s how.

1. Dig into the tools you already have

Businesses jumped into collaboration tools out of necessity over the pandemic with a very practical goal of keeping operations running remotely. With that hurdle cleared, it’s time we refocus our efforts from pure functionality to connection, culture, and engagement.

My team, for example, has been using Slack for nearly all of our internal communication and collaboration since 2017. Back then, our primary goal was to lessen email fatigue (which 38% of office workers say is likely to make them quit their jobs).

Once the pandemic hit, we needed that platform to do some heavier lifting for us. Some changes we’ve made include:

-Creating new forums (channels) for conversation around everything from the pandemic itself, to how we can best deliver value to our clients remotely, to social injustice and unlearning bias.

-Adding new integrations including more practical HR tools that “show” who is out when you can’t physically see your team, and fun tools like the Donut bot that randomly pairs employees up and facilitates conversations.

-Learning and taking advantage of the package’s ongoing developments, like the “huddle” feature and direct messaging with outside organizations.

-Doubling down on using our few mandatory channels for clear communication on changing policies, amplifying team achievements, and—perhaps most importantly—soliciting feedback.

Of course, keep in mind that simply providing tools is never enough; you have to also provide your team with the training to take proper advantage of them, and the safety and opportunity to do so. This is a place where active involvement (and modeling) from your leadership team can make a big difference.

2. Evaluate your tech through the lens of individual experience and equity

When it comes to engagement, 42% of employees say their peers have the greatest influence. We have also (fortunately) entered the stage where employees will not stand for what they perceive to be unfair treatment.

It’s incumbent on employers, then, to zero in on how employees experience their work on a day-to-day basis and whether they feel connected to their team and heard as an individual.

Take a run-of-the-mill department meeting, for instance. Say your new hybrid configuration has half the department in your office and half at home. Do the remote workers have equivalent means to participate in the meeting itself? In the more casual chit-chat that takes place before and after?  Can they clearly hear who is speaking and when they can interject? Can they read and add to notes being taken? Do they have the same opportunity to execute on any follow-up items?

Unbalanced interactions like this are subtle, but over time will erode connection and leave certain teammates feeling alienated. Identify places where you may be unintentionally creating rifts, and use that pandemic-inspired tech confidence to fix them. Some common areas for improvement are:

-A better conference room setup with barrier-breaking tools like the Vibe whiteboard and the Poly Studio soundbar/camera.

-A better home office setup with external cameras and speakerphones as needed, a stipend for better internet bandwidth, extra monitors, and so forth.

-Standardizing on a document co-authoring solution like SharePoint or Google Docs.

-Training your managers to opt for the most inclusive meeting and collaboration formats over what is most convenient.

Any new tools you add will require—you guessed it—training!

3. Make sure your digital presence reflects your priorities

My final point is one of visibility. If your company is making these great strides to do right by your team, do them and your business a favor by giving talented job seekers enough insight to want to join you.

Questions to consider are:

-Does our online presence (website, social media) show—not tell—our commitment to our people?

-Do our online employee reviews paint an accurate picture?

-Do our job descriptions capture our values in a way that an outsider would grasp? Are we explicit about remote work policy and benefits?

-Does our hiring process mirror our culture? Does it blend the responsiveness of automation with empathy?

Part of this involves the thoughtful use of specific technology tools. We, for example, have had great success with Bamboo HR to digitize, secure, streamline, and humanize our hiring and onboarding processes.

But a lot of this is the evolution of taking our office-bound corporate cultures digital. First and foremost we make sure all employees, regardless of location, are connected and bought into our culture. Then we take it externally and let all the talent out there know what we’re bringing to the table.

And the more we can get our current employees to tell our story online, the better—not only do most candidates inherently trust individuals over brands, but this also reinforces engagement with those employees.

Final thoughts

It’s true that the Great Resignation and the current labor shortage won’t last forever; people who want to change jobs or careers right now will make those shifts, and eventually the waves will settle.

The question is which organizations will come out on the other side with their high-performing employees intact, and with some new star players (whose previous employers weren’t savvy enough to keep them) on board.

If you want it to be yours, keep the momentum going. Technological competence and creative use of the right tools at the right time will empower your team to forge strong connections no matter where they’re physically located.

There are few competitive advantages as powerful as that.

________________________________________________________________

Heinan Landa is the Founder and CEO of Optimal Networks, Inc., a Rockville, MD-based IT company that helps law firms and associations achieve measurable business results by way of thoughtful technology guidance and white-glove support. For three decades clients have turned to Optimal when they are spending too much time overseeing their IT team, are worried about the security of their data, or are concerned their technology isn’t providing the mobility or flexibility that their employees and clients expect. For more, www.optimalnetworks.com, 240-499-7900, or info@optimalnetworks.com.

technology CGS supply

Resolving Fluidity Challenges in Today’s Bottlenecked Supply Chain Environment with Technology

In today’s demanding supply chain environment, SMEs (small and medium-sized enterprises) are facing unprecedented supply chain challenges much like larger companies and, as a result, have been investing in their own fleets due to the lack of equipment available in the marketplace.

Equipment scarcity as well as the reliance on outdated, legacy technologies to resolve today’s challenges are fast becoming the key underlying obstacles affecting SMEs to maintain their competitive advantage in today’s bottlenecked supply chain reality. More and more, companies are understanding that along with the investment in the assets must be the investment in asset management technology.

It has become clear that the right asset management platform—meaning the right technology, the right team of experts, the right level of adaptability and scalability– can serve as an invaluable tool to not only manage assets, but also transform operations and streamline processes.


The growing importance of technology for competitive advantage

While SMEs are looking for technology to help them respond to market shifts and evolving business strategies, they typically rely on modest IT budgets and stretched-thin admin teams. As their current software is reaching its end-of-life phase, SMEs are looking for cost-effective, scalable technology that can address today’s needs as well as those of the future. They rely on technology partners to help understand what is necessary: Is it an upgrade to a current system? Is a modification or new feature in order? Will a plug-in elevate the system to where it needs to be? Should this be a start-from-scratch system?

There is no doubt that as time goes on, SMEs–even those who may have resisted technology– will rely on technology services and solutions more and more, as the agility and flexibility of small and medium-sized enterprises within the supply chain have become ever more vital to supply chain fluidity. Innovative asset management technology platforms are enabling fleet managers to optimize their assets, control costs, manage M&R (maintenance & repair) as well as reduce admin costs. Tools designed to manage M&R help ensure streamlined communications, accountability, productivity and, most importantly, safe equipment. Customers utilizing asset management technology realize these robust benefits and more.

When selecting an asset management platform, it’s important to work with a partner with a proven track record, such as, Consolidated Intermodal Technologies (CIT), which was developed by Consolidated Chassis Management (CCM) and, for the last 10 years, has served as the asset management tool for its chassis pools. CIT is designed for fleet managers looking to upgrade their technology to support a growing fleet in a sustainable, scalable and efficient manner. CIT’s platform focuses on various intermodal equipment fleets, including chassis, trailers, containers, reefers and gensets of around 100 units.

These types of technology solutions are emerging as a competitive advantage by providing real-time visibility that enables businesses to make strategic decisions based upon quantitative analysis. Efficient asset management will provide the opportunity for SMEs and larger companies to outsource many back-office activities, enabling internal resources to be redirected to value-adding processes, including supply chain management. In fact, these services offer the possibility for SMEs to reduce labor costs, and the human capital necessary to manage their supply chain operations.

When it comes to investing in technology, we at CIT believe it is important to remember that one size does not fit all. It is crucial to collaborate with a technology partner who understands your business, your IT capabilities and resources as well as your goals. With the right asset management platform and team of experts that “get you,” businesses of all sizes can address the most complex and critical challenges to optimize operations, align business objectives and enhance corporate culture practices.

CIT is an innovative and proprietary asset management platform designed to enhance efficiency, elevate productivity, increase visibility, improve workflows and processes while lowering expenses and eliminating time-consuming redundancies. CIT understands the pain points of fleet managers as well as the importance of optimizing assets that are in compliance and on the road. For more than 10 years, the CIT platform has been the technology behind CCM’s fleet optimization system.

__________________________________________________________________

A seasoned technology executive with over 30 years of transportation IT industry experience, Mr. Thomas Martucci oversees the development and implementation of technology strategies that generate revenue and reduce costs. As VP for CCM and CTO for CIT, Mr. Martucci is responsible for business process management, software development, and technology implementation.

supply chain

WHY AND HOW BIG DATA IS A GAME CHANGER FOR THE SUPPLY CHAIN

In its 2013 report titled Big Data in Logistics, DHL proclaimed that “The logistics sector is ideally placed to benefit from the technological and methodological advancements of Big Data” and predicted “huge untapped potential for improving operational efficiency and customer experience and creating useful new business models.”

Today, the transformation of logistics to a data-based model is no longer a futuristic fantasy. The ability to create a digital ID, carry it through the supply chain, capture all transactions along the way and implement action against that data has now become a reality. Intelligent identification solutions exist to optimize item-level data captured at the beginning of a product’s journey, enabling full inventory visibility and accuracy, as well as enhanced routing speed for all partners along the supply chain. With product-level data, supply chain execs are empowered to analyze and make intelligent real-time decisions with the ebbs and flows of demand.

As a global industry, 3PL professionals need to understand the promise of identity solutions and the key benefits they offer. The first step for leaders across the enterprise is recognizing that the supply chain is not a set of standalone “links.” On the contrary, supply chains should be viewed holistically to leverage advances in data infrastructure that enable a total ecosystem of item + shipping specific information across each touchpoint of a supply chain. 

The Importance of Accuracy 

Among the many advantages of assigning digital identities to products is speed—and the key to speed is accuracy. Think of it this way: The utilization of item data throughout the supply chain enables speed with accuracy. 

Consider a logistics scenario with an RFID-enabled intelligent label applied at the source of an item. As the item begins its journey, the data captured and carried in that label enables shipment verification. When the “intelligently” labeled products arrive at a facility or warehouse, the recipient can quickly confirm that what was received is precisely what was expected. 

The data contained in the intelligent labels also allow outbound verification to the store or e-commerce retailer. In turn, the same label gives the retailer the inbound verification they need to move the items directly into inventory, with data that assures its accuracy. At the end of the supply chain the retailer has confidence that they can show the customer exactly what is available.

Shipping errors are another logistics challenge that can be addressed through accurate data. Currently, up to 4% of shipping errors are due to misrouted items that must be returned to the distribution center for re-routing. Legacy operations that rely on separate processes (with the six to eight touchpoints that a product moves through) increase the chance of such errors. Therefore, there is an operational benefit to routing solutions that are based on item- or parcel-level data to allow cross-docking optimization within the supply chain that enables greater speed accuracy. Put simply, velocity increases as accuracy improves.

Moving Toward Sustainability

As the supply chain becomes more normalized post-pandemic, back-burnered sustainability goals are re-emerging, driven by consumers, regulations, and cost—not necessarily in that order. The supply chain as an industry is being specifically tasked with sustainability.

A report from the management consulting group BCG stated, “By implementing a net-zero supply chain (the state in which as much carbon is absorbed as is released into the atmosphere), companies can amplify their climate impact, enable emission reductions in hard-to-abate sectors, and accelerate climate action in countries where it would otherwise not be high on the agenda.” This report also noted that “in most supply chains, the costs of getting to net-zero are surprisingly low.”

On the consumer side, a research study from Deloitte found that “concerned consumers are adopting a raft of different measures to shop and live more sustainably. One of the most prominent lifestyle changes is “shopping for brands with environmentally sustainable values.” In fact, over a third of consumers surveyed indicated that they value ethical practices in the products and services they buy. 

The data captured and carried in intelligent labels provide real-world efficiency solutions for achieving sustainability in logistics. One of the areas in which supply chains can address carbon emissions is in the transport of goods. One factor that deters sustainability in 3PL is trucks not being loaded to their full capacity.

In fact, our own studies have shown that up to 14% more volume can be loaded into a truck by utilizing key data that consider size and weight of parcels, creates the most efficient delivery route and considers other variables such as perishability.  Clearly, such sustainability initiatives have the potential to lower costs as well.

Caution: Hazardous Materials

There is yet another issue that is becoming more urgent and that is the prevalence of hazardous materials in the supply chain. First, it is necessary to define hazardous materials. These are substances or materials that the U.S. Secretary of Transportation has determined are “capable of posing an unreasonable risk to health, safety and property when transported in commerce.”

These materials include hazardous substances and wastes, marine pollutants, elevated-temperature materials, and other materials designated by federal Hazardous Materials Regulations.

In supply chain operations, the Federal Aviation Administration (FAA) requires these items to have “Hazardous Material” markings and/or labels. There are significant financial penalties for incorrect shipping identification, including accruing fines that can amount to more than $78,000 per instance.

Among the many items on the FAA’s list are the lithium-ion batteries used in many consumer products, each of which require the special markings and/or labels and have their own specific requirements for placement in cargo. Sorting solutions that use digital product identities currently exist to alert shippers where certain items, such as these batteries, should and should not be placed.

The importance of data in logistics will only increase over time. Deploying RFID intelligent label solutions at the source of an item will carry it safely, sustainably and quickly through all of the touchpoints along the supply chain—and beyond. The future of a data-enabled logistics eco-system is here. 

____________________________________________________________________

Michael Kaufmann is director, Market Development, Logistics with Avery Dennison. The company recently launched its the atma.io connected product cloud platform that gives unique digital IDs to physical objects for end-to-end tracking from the source to the customer and even beyond to take part in the circular economy. 

product

See Line Item in Action with a Live Webinar or Product Demo

You already know that CPG e-commerce has taken a leap forward during the pandemic—and that business intelligence has become table stakes for success. This is because knowledge is power, and what you don’t know is hurting you. In such a dynamic market, you must monitor changing demand patterns and analyze the risks of CPG e-commerce without business intelligence. We’ve gone beyond analyses and caution, though, to share how the right business intelligence platform can help you sell more on Amazon and Walmart, the giants that control the retail market. And we’ve shared an overview of the good, better, and best tools for e-commerce e-analytics to show how Line Item helps CPG and e-commerce marketers master their market with insights to drive sales growth.

Now to compliment our industry-specific articles, we’re offering live webinars and product demos so you can see Line Item in action.Why watch a live webinar, or tune into an on-demand session? Simply put, a live product tour brings Line Item’s features to life in specific ways for your category or product portfolio. It’s a way for you and your colleagues to understand the power of business intelligence for your business, not just for CPG and e-commerce in general (though of course, that’s important, too).
Here are four reasons to join us for a live Line Item webinar or product demo.#1: Understand value through product attributes.
Line Item’s deep insight into product attributes is what sets it apart from other analytics platforms. With a single tool built specifically for CPG and e-commerce, marketers can improve performance and profitability by understanding exactly what’s driving value. Line Item’s proprietary AI engine can calculate attributes for every item, even across hundreds of items in a category. These include form (like liquid or powder), size, flavor, and packaging (like pouch, box, and more).With a live product demo, you can see how Line Item enables visibility into this granular detail for business intelligence that powers better decision-making. See when competitors are coming out with new items that could threaten your sales. Detect new attributes that drive value. Know what consumers value about your product and your brand.

#2: Learn how to truly optimize your search results.
Search results matter. They can make or break whether your product makes it into customers’ carts, in-store or online. There can be many reasons why your product isn’t getting its share of page one, but if you don’t know them, you can’t address them with a fix. And it’s not enough to look at them as separate. A smart and successful digital strategy is built and optimized across all selling platforms. You need to know if your e-commerce SEO is working across all sites and all search terms.

In a webinar, you can understand the power of Line Item in optimizing SEO strategy across all keywords, retailer websites, and online marketplaces. Line Item provides insight into how your brands and items are ranking and analyzes page share, rank by item, brand, form, and other attributes. You can also ask questions specific to your brand or category on SEO strategy and how Line Item powers it.

#3: Discover how to drive sales with smarter insights.
How do you know if your promotions are performing? Which search terms are working across all retailers and platforms? Which keywords are worth investing in? This level of detail is where the battle for the digital shelf is won, but it’s impossible to access without deep insight. And it’s not actionable without the kind of visibility into your e-analytics that Line Item enables. This is just one example of how smarter insights can drive sales growth in the fiercely competitive e-commerce market.

Here are some others. Are your out-of-stocks hurting revenue? Are they giving competitors the edge if you don’t maintain inventory on Amazon? Optimizing inventory is enough of a challenge without having to second-guess your strategy. Line Item gives you the insights to understand how inventory is affecting your sales and ultimately your profitability. A webinar or live demo can show you how Line Item can be a game-changer for your e-commerce portfolio.

#4: Level up your ability to monitor third-party activity.
Amazon may be the world’s biggest marketplace, but it’s also the world’s most competitive. Keeping tabs on authorized and unauthorized third-party activity is key to success on the platform, but it can be complex even with the right tools. Unless, that is, you’re using Line Item. In a webinar or live product demo, you can see how a deep dive with Line Item can reveal when an unauthorized third-party seller starts selling your product online. With Line Item, you can understand when your items are priced correctly as well as when competitors or third-party sellers are undercutting your price. From pricing to competitor activity, see how Line Item can help you understand more about your market.

Actions speak louder than words. Join us for an upcoming webinar or request a live product demo to see how Line Item can transform your CPG e-commerce. You’ll understand why Line Item is your best option for mastering your market. It’s a single platform with comprehensive capabilities purpose-built for CPG e-commerce. In today’s competitive and uncertain e-commerce market, Line Item is your lifeline to more profitable e-commerce.


lading

AVOIDING ERROR IN THE BILL OF LADING LIFECYCLE

There is constant chatter surrounding gaps within the supply chain–from driver shortages to lack of technology adoption. While solutions to these problems may seem simple enough, many fail to realize the multiple moving parts of a supply chain that would need to adopt these solutions.

Just this year, the Port of Los Angeles became the first port in the Western Hemisphere to process 10 million container units in a 12-month period. “Over the past 12 months, port terminals have worked an average of 15 container ships each day, up from a pre-pandemic average of 10 ships a day, representing a significant increase in productivity,” the Port of L.A. reports. With America’s busiest port breaking records for annual volume, it sets a new standard for the industry.

With a new record of goods being shipped, this introduces a magnitude of opportunities for error. Perhaps one of the most common is in the bill of lading (BOL) lifecycle. A BOL serves as a contract between an original equipment manufacturer (OEM), the shipper and the carrier–acting as a legal document to protect all parties involved.

From the time an item is developed overseas to the time it takes to reach an end consumer, that product and BOL have switched hands multiple times. There’s the OEM, the carriers, port staff, freighter’s crew, other port’s employees, the carrier again, a potential distributor, more carriers and then finally the retail store, where the end consumer can purchase the product. With products being mass shipped and divided at ports or distribution centers, this leaves room for error when it comes to BOL accuracy.

Because of this, an electronic bill of lading tool (eBOL) can help create a valid, blockchain-like record of a product’s journey–from origination to end consumer–resulting in less human error, faster turnaround times and reduced inflation costs.

What can go wrong with the BOL? 

According to a recent study, the top challenges in supply chain management were recorded to be visibility (28%), fluctuating consumer demand (19.7%) and inventory management (13.2%). Consider the effects of COVID-19 this past year, and these areas have since then largely increased. In fact, the global e-commerce market is expected to total $4.89 trillion this year, and keep growing over the next five years. 

With rising demand, the BOL is essential in the supply chain lifecycle to ensure accuracy and transparency throughout. This means facilitating collaboration, standardization, digitization and automation across all supply chain parts.

With the BOL serving as proof that the shipper has given permission to haul goods, the traditional paper copy leaves room for human error. For example, during a pickup or delivery, the driver is recording the product, quantity, whether it’s cold storage or not and the final destination of a shipment. Next, the clerk would sign the paperwork and the driver would be on their way. After that, the BOL paperwork would need to be faxed in, but consider the driver’s route. A driver might be gone for a week or two (even more) before the BOLs would be able to be turned in. And it doesn’t stop there–once the driver’s packet of BOLs makes it back to headquarters, the office then needs to process them manually and store the physical copy for years for auditing purposes.

The long turnaround time simply sets companies back. Additionally, if a driver recorded the wrong product name or number, this could result in a product having to be returned, costing companies time and money.

How can an eBOL platform help?

An eBOL is not a new concept within the supply chain, but due to the amount of moving parts and interoperability challenges, it hasn’t reached wide-scale adoption. However, due to the visibility, inventory and growing capacity as well as safety challenges, companies are starting to include eBOL and digital pickup and deliveries as part of their supply chain digital transformation initiatives. An eBOL tool creates streamlined workflows for all supply chain parties, resulting in more efficient shipments and greater transparency. 

As discussed, traditional paper BOLs leave room for human error and improper documentation in addition to lengthy turnaround times. By eliminating paperwork and manual processes, an eBOL can instantly capture key information and significantly cut down on dwell times. In fact, companies who have used an eBOL tool saw a significant decrease in driver dwell times–from 66 minutes on average down to 23 minutes.

Going beyond paperwork, an eBOL tool has the ability to boost collaboration by supporting just-in-time manufacturing and replenishment planning. This provides visibility that allows logistics partners to make faster decisions in case freight needs to be re-routed to different plants, distribution centers and stores to meet customer demands. Overall, the entire supply chain becomes more agile. 

Additionally, given the current environment of COVID-19 cases spiking and taking into consideration the delta variant, eBOL tools are effective in reducing health and safety risks for drivers and yard workers by minimizing paper and physical interactions. Now that information can be accurately tracked and shared through a contactless option, this makes the process self-service for drivers and eliminates the need for in-person check-ins. 

What effect does an eBOL tool have on the end consumer? 

It all starts with capacity. Driver shortage is not a new concept in the supply chain and logistics industry. Currently, the supply chain is stressed with a heavy demand and not enough capacity due to driver shortages, which can drive up shipping costs that translate to the end consumer. 

However, if drivers across the supply chain spend less dwell time at facilities, that time can be spent making an additional stop. One more delivery added to a driver’s route could help create more capacity and stabilize shipping prices that has the potential to trickle down savings to consumer products.

In addition to strengthening supply chains, companies across the country are trying to find ways to keep inflation from rising. Using an eBOL tool turns those in-person interactions at facilities into quick, digital processes, streamlining the delivery and pickup process. By getting drivers in and out of facilities faster, companies can improve capacity challenges by enabling drivers to add another stop to their days, which will hopefully reduce shipping costs and benefit consumers in the long run. 

________________________________________________________________________

Brian Belcher is the COO and co-founder of Vector, a contactless pickup and delivery platform that ensures supply chain partners get the right load to the right place at the right time. Prior to Vector, Belcher led Customer Success at Addepar, a wealth management platform, which manages more than $2 trillion in client assets. Before joining Addepar, Belcher co-founded Computodos, a socially-minded supply chain solution that helps source, transport and distribute recycled computers to developing countries. He holds a bachelor’s degree in Business Administration from Santa Clara University.