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Blockchain: The Next Big Tech Paradigm Shift

blockchain

Blockchain: The Next Big Tech Paradigm Shift

While most of blockchain’s success over the past decade has been linked to bitcoin, Ethereum, and other cryptocurrencies, distributed ledger technology is now poised to move into mainstream applications and launch new opportunities in multiple markets.

Technological change has followed a predictable path over the past fifty or so years. Chips and devices got smaller, more processes were automated, and life became more convenient. Since the beginning of 2020, we have seen a rapid uptake in the pace, not to mention the massive adoption of technologies into our everyday lives. As we adapt to a long-term period of social distancing, the paradigm in which technology evolves has been upended, and every member of society has had to quickly find new technology-based solutions to accomplish tasks previously taken for granted. In the coming decade, technology will shift from automating and replacing manual labor to replacing routine cognitive work, and blockchain is poised to be a key driver of the “fourth industrial revolution.”

The paradigm shift into the “fourth industrial revolution” was first postulated by Klaus Schwab in a 2015 article published by Foreign Affairs, and refers to the evolution in the way we live, work and relate to one another, enabled by extraordinary technology advances. According to Schwab, these advances are merging the physical, digital and biological worlds. The social distancing measures required to respond to the global pandemic has put this fourth industrial revolution into overdrive.

What is blockchain, and why will it ascend over the next decade?

Blockchain’s influence will affect all aspects of your life, including how you work and purchase goods from clothes to groceries to houses. Everything.

Simply put, blockchain involves recording information in a way that creates trust in the data recorded. Blockchain is proof that you own something digital—whether it is a bitcoin or your personal health records. Blockchain proves you are the owner of whatever digital information you have on the distributed, decentralized public ledger.

Initially, blockchain was created along with bitcoin to give power back to the people. Since its creation, it has expanded well beyond cryptocurrencies and is growing exponentially. Estimates suggest that blockchain technology has been adopted by more than one-third of the world’s companies.

 

 

We already live in a digital universe. We no longer visit Blockbuster to rent movies, and very few of us have DVDs. Instead, we use Netflix, Hulu, and Amazon Prime to watch our shows and movies. We order all manner of products online. Blockchain has become essential because it allows us to own our digital goods, assets, and data.

A blockchain can be trusted as a source of truth. Suppose certain information (data) was included in the blockchain sometime in the past, but the data may not be correct. Records on the blockchain are immutable and provide an unalterable trail. A mistake can only be corrected by adding another block to the chain with consent from all participants. A blockchain records tangible and intangible assets among a network of peers that use the same software, algorithms, and cryptography to maintain the records.

Currently, there are two types of blockchain: permissionless (public) and permissioned (private). Participants use pseudonyms to protect their identity with permissionless blockchains, and there is no identification of participants. On the other hand, permissioned blockchains are protected by access privileges. Participants are authenticated, and a super-user may control the network. Permissionless blockchains are considered more reliable because of the consensus principle.

Blockchain currently enables many uses, including Tokenization to protect sensitive data, unalterable timestamping, the transfer of assets through a payment channel, and the facilitation of smart contracts. To date, blockchain has been used to make more processes more efficient by replacing components or by providing an entirely new blockchain service. The most well-known example of blockchain’s usage is cryptocurrency, but its possible applications are still being explored across many industries.

Why companies are integrating blockchain solutions

By 2023, the global blockchain market is set to reach $20+ billion, indicating how quickly businesses are expected to adopt blockchain solutions. The most prominent and influential companies worldwide have all turned their attention toward blockchain. Tech giants like Apple, Microsoft, Google, Amazon, and Facebook are investing billions in powerful technology. And, Wall Street wants in, too. What makes blockchain so attractive to business?

First and foremost, it reduces operational costs by obviating the need for a centralized authority. Removing intermediaries is crucial for business because it reduces costs and points of contact, improving company efficiency and growth. What could be better in the eyes of a business leader? Estimates suggest the adoption of blockchain technology will save than $100-$150 billion by the year 2025. Blockchain’s adoption will reduce the costs of personnel, support, operations, IT, data breaches, and much more.

In addition to blockchain’s efficiencies and security, it allows for the completion of transactions in seconds rather than days. Transaction speed is especially important in international interchanges.

We previously survey the investment environment for blockchain-based businesses here.

Despite blockchain’s many advantages, it is imperative that we understand the legal implications, risks, and opportunities its use presents.

Legal issues to watch for

Stakeholders in blockchain solutions will need to ensure that their products comply with a legal and regulatory framework that was not conceived with this technology in mind. From a commercial law standpoint, smart contracts must be contemplated for negotiation, execution and administration on a blockchain, and in a legal and compliant fashion. Liability, first and foremost, needs to be addressed. What if the contract has been miscoded? What if it does not achieve the parties’ intent? The parties must also agree on applicable law, jurisdiction, proper governance, dispute resolution, privacy, and more.

There are public policy concerns that should be taken into account in shaping new laws, rules and regulations. For example, permissionless blockchains can be used for illegal purposes such as money-laundering or circumventing competition laws. Also, participants may be exposed to irresponsible actions on the part of the “miners” who create new blocks. Unfortunately, there aren’t any current legal remedies for addressing corrupt miners.

Potential solutions

As lawyers and technologists ponder these issues, several solutions are being bandied about. One possible remedy involves a hybrid of permissioned and permissionless blockchains. Some transactions require intervention by a responsible party, such as when Know Your Client regulations are in play. All participants in blockchains and smart contracts where data is exchanged are data controllers. This means participants must comply with all data protection requirements.

Another consideration is what goes on the chain or what, instead, goes in the smart contract and off-chain. While it is possible to include provisions regarding liability, jurisdiction, and other legal aspects in the smart contract, this allows no room for interpretation because it is based on conditions. A better solution may be to have a real contract stored off the chain, but linked to it with a hash-secure value, for added confidence.

The ongoing regulatory push for more data with trends like controlled free trade, increased border security, and accreditation of economic operators, leads to higher compliance costs. This means that parties trading globally need higher supply chain visibility and security. Data that is both high quality and secure and trade compliance systems that can cope with the electronic exchange of data, are requirements.

Global trade involves many parties beyond the buyer and seller, such as customs and regulatory authorities, financial institutions, shippers, brokers, and insurers. There are multiple exchanges of data among those participants, presenting opportunities for implementing a blockchain to trigger and record invoices, bills of lading, and customs compliance.

Welcome to the future

As blockchain technology matures, global trade supply chains will increasingly use the technology, with the authorities monitoring transactions and compliance with customs declarations, duty payments, and sanctions rules. Further, combining blockchain with the Internet of Things will give manufacturers the ability to track products, manage risk in distribution networks and demonstrate good corporate governance.

While no one can predict how the future will unravel, it seems clear that blockchain will play an important role.

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Louis Lehot is the founder of L2 Counsel. Louis is a corporate, securities and M & A lawyer, and he helps his clients, whether they be public or private companies, financial sponsors, venture capitalists, investors or investment banks, in forming, financing, governing, buying and selling companies. He is formerly the co-managing partner of DLA Piper’s Silicon Valley office and co-chair of its leading venture capital and emerging growth company team. 

L2 Counsel, P.C. is an elite boutique law firm based in Silicon Valley designed to serve entrepreneurs, innovative companies and investors with sound legal strategies and solutions.

manufacturing industry

AI is Transforming the Manufacturing Industry: Pros and Cons

The expansion of the global economy continuously triggers the use of new technologies across sectors. There’s no doubt that the manufacturing industry headlines the application of artificial intelligence technology. From product design, production, supply chain, and logistics, manufacturers are using AI software.

The use of these AI analytics and data has helped improve product quality and efficiency. It has also improved the safety of employees and delivery processes.

However, the AI-powered industrial revolution is not without criticisms. Thus in this post, we’ll consider the pros and cons of AI in transforming the manufacturing industry.

Pros of AI transformation of the Manufacturing Industry 

Generally, AI’s beneficial to the various aspects of manufacturing and product distribution. Here are the positives of artificial intelligence:

Predictive Analytics for Increased Production Output

AI manufacturing systems make use of predictive analytics and machine learning algorithms. Since the manufacturing sectors have a large volume of data, the AI predictive analytics is powered from this data. Data are kept in the cloud for analysis and monitoring of any process or equipment disruption.

With this predictive setup, companies can now easily apply a predict-and-fix maintenance model. The guesswork regarding what is wrong with the equipment or process is eliminated. Rather than stop the whole production to detect-and-fix the problem, AI predictions pinpoint anomalies more quickly. It likewise suggests tools and solutions to correct the problem.

Furthermore, manufacturers can also sync production schedules to enhance production output. A report from Mickensey says that an AI predictive maintenance model can increase productivity by 20%. And it can decrease maintenance costs by as much as 10%

Better Generative-Design Process

Another AI advantage is that manufacturers can create better ways of designing their products. With generative-designs, the designer can input product details. Such details include the type of material, appropriate production methods, budget, and time. The designer is also able to input all possible constraints. Using an AI algorithm, the details can be processed to meet a list of possible product options.

The appropriate solution is then tested to suit manufacturing conditions. What makes the generative-design stand out is it eliminating human bias design options. And then it proposes more suitable performance demands.

Improved Process Quality 

Artificial intelligence technology enables a more innovative production process and better product quality. It ensures that products meet the required quality standards and regulations. Manufacturers can achieve this by using equipment that operates with AI technologies like ML and big data.

For instance, tracking sensors could be used in logistics and haulage. It will help to monitor location, take stock, freight charges, and more. According to reports, automation of inventory improves process services by 16%. At the same time, inventory turnovers are likewise increased by 25%.

Such inventory data is used to check for any impending faults that may affect the product delivery service. Thus the company can attain a higher level of specialization. It also eliminates process downtime and increases productivity.

Ever-changing Market Adaptability 

Besides production, there are other significant aspects of manufacturing where AI is pivotal. These include distribution and supply chains, monitoring, customer behavior, and change patterns. Therefore, AI in manufacturing ensures that companies can predict possible market changes. With this, they can go ahead to strategize towards better production and other cost management processes.

Additionally, manufacturers can use AI algorithms to estimate market demands. Such estimates are possible because AI uses the information gathered from different sources. Such as consumer behavior, inventory of raw materials, and other manufacturing processes.

Optimizing Supply Change

When AI technology is adopted in the supply chain process, there’s transparency and increased data. It’s used to enhance manufacturing processes and customer service further. Data from multiple devices are collected and analyzed in real-time to get a more in-depth insight like a possible challenge. Manufacturers are then able to make informed industry-related decisions. AI helps minimize cost and time that may be incurred on warehousing and shipping in the event of any mishap.

AI tools and solutions also help schedule factory activities, demand and supply gaps, and avoid over or under production. Mckinsey estimates that AI technology-based supply chain management enables businesses to cut down forecasting errors by 20-50%.

 

 

 

Furthermore, AI chatbots enable taking care of client inquiries using human-type interactions. In turn, it helps to free up human resources. Such technology allows manufacturers to address clients’ requests and enquires quickly. For instance, a custom writing review service like Online Writers Rating may need to go through thousands of papers daily. And, at the same time, they’ll have to address customer inquiries. But with chatbots, AI provides the necessary customer support, while employees focus on the papers.

Cons of AI in the Manufacturing Industry

As earlier stated, AI in manufacturing is not without criticisms. These are contained in the following artificial intelligence cons:

It’s on the Pricey Side

Artificial intelligence implementation and maintenance costs are on the high side. The budget is one that is often too pricey for small companies and start-ups. Although AI cuts manufacturing labor costs, it still requires installation and maintenance fees. You also don’t want any cyberattacks on your systems, so you’ll also need to consider the cost of cyber threat protection.

Scarcity of Experts and Skills Persons 

Because AI tech is a continually evolving field, thus AI experts with the requisite skills are usually few. Since these tools need regular sophisticated programming, it’s essential to consider expert availability. And also, because they are in high demand, the cost of employing such hands will be on the high side.

Open to Vulnerabilities

Another artificial intelligence con is its vulnerability to cyber-attacks. A recent World Economic Forum report shows that cyber-attacks are among the top five global stability risks. Such information can be pretty scary for any manufacturer using AI software. As AI becomes powerful and wide-spread, cybercriminals are working hard to device new hacking methods. One minor breach can disrupt or fully shutdown a manufacturing business.

Conclusion

AI goes a long way in sustaining your manufacturing business, even amid constant change. It provides predictive analysis that can help manufacturers make more informed decisions. From the product design down to customer management, there’re several positives of artificial intelligence. These include an improvement in process quality, optimized supply chain, adaptability, etc.

However, AI technology isn’t without its cons. Such as expensive budgets and vulnerability to cyber-attacks. Yet the pros of AI outweigh these cons. Therefore, the manufacturing industry can only improve by leveraging AI applications.

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Frank Hamilton has been working as an editor at essay review service Best Writers Online. He is a professional writing expert in such topics as blogging, digital marketing and self-education. He also loves traveling and speaks Spanish, French, German and English.

AI

AI and Cryptocurrency – How They Can Work Together Effectively

There will soon come a time when artificial intelligence will be running on top of cryptocurrency systems like Blockchains with its capability to increase machine learning capacity and create new financial products. It will take the technology leaps and bounds further in making it one of the mainstream emerging technologies.

According to the research being conducted about the future of AI, the market is estimated to grow to a whopping $190 billion worth of industry by 2025. Considering how much the market is expected to grow, Blockchain and AI convergence are inevitable.

Both the emerging technologies have been around for a decade now and deal with data and value. Where Blockchain enables a secure storage and sharing path of data, AI analyzes and generates significant insights from data to create value.

Having such similarities, there is no doubt that both the technological realms can be merged to create a more advanced and efficient machine learning blockchain system to benefit the masses. Let’s have a look at how Blockchain and AI are a perfect match.

How Blockchain and AI Is the Perfect Match

The following are some key pointers and examples that evidently showcase how combining Blockchain and AI is a consequent step forward in the right direction for increased efficiency and profitability.

Blockchain connecting with the AI basics

Firstly, it is essential to know that most of the hype surrounding startups integrating Blockchain with artificial intelligence is exactly just that, hype. Such companies are far too young and inexperienced in the industry to be talking about a big game. With few clients and less commercialization, it is understandably not possible to carry out such advance convergence.

The majority of such companies have raised money through the initial coin offering or the ICO. This means that the solutions they offer are as thoroughly evaluated as they would have been had the company raised a significant amount of venture capital money.

However, it is quite so possible that these companies may become successful in the future, but until then, they just create useless hype about the advancements in this technology.

Many people limit the usage of Blockchain technology and associate it with just cryptocurrency transactions. As a digital ledger that can record economic transactions, Blockchain can be expanded to virtually record almost anything of value.

There can be both public and private blockchains. Where the public ones are open to the public, the private or ‘Permissioned’ blockchains are restricted for usage by ‘invitation-only’ and mainly used in the corporate environment. This also makes them faster than public forums as the users are mainly trusted and verified personnel making the transactions verifiable faster.

One of Blockchain’s more important features is that it allows even the unrelated parties to carry out a transaction and share data through a mutual ledger. As cryptography validates the transactions, it makes it more efficient for participants not to rely on third-party evaluators to carry out a transaction. Deploying cryptography ensures that data transactions are secure, incorruptible, and irreversible once recorded.

Artificial Intelligence is not a term making rounds for a decade now. It very much comprises of every new technology that has near-human intelligence to carry out a task. AI models are used to assess, understand, classify, and predict using relevant data sets. Machine learning then cleanses the data as it gathers insights creating better useful data sets for use.

As it is evident, data is the central component to AI and Blockchain that allows a secure and collaborative effort towards data sharing. Both Blockchain and AI ensure the trustworthiness of data and extract valuable insights from it.

How Microsoft is Improving Machine Learning for Blockchain

According to the research conducted at Microsoft, the company is working on finding out ways to design efficient collaborative machine learning models hosted on public blockchains. The incentive behind this effort is to make AI decentralized and a more collaborative forum using Blockchain.

While there is no doubt that advances are being made in machine learning, the benefits that are being created as the results of these efforts are not as openly available. The masses have limited resources and cannot always access cutting-edge technology such as machine learning systems.

Such systems are highly centralized and used as the proprietary datasets. Not only are they costly to recreate, but even the best models can become outdated if not consistently refreshed with new data.

The idea is to allow advanced AI models and bigger datasets to be easily accessible, sharable, updated and retrained to increase the adoption, acceptance, and overall effectiveness of AI. People will soon be able to adopt this easy and cost-effective method to run and access advanced machine learning models through regular devices such as laptops and smartphone browsers and collectively participate in improving data sets and models.

Therefore, Microsoft is keen on developing what they call a Decentralized & Collaborative AI on the Blockchain framework. It will significantly increase AI community collaborations to retrain such models with valuable datasets on public blockchains. The machine learning models would be made free for public use as they would know the code they are interacting with.

Some applications that Microsoft is looking forward to integrating are virtual assistants and recommender systems like used by Netflix to recommend shows to its audience. Considering such models, Blockchain makes sense because of the increased security and how trustworthy it is for the participants.

The well-established nature of the blockchain system and the associate smart contracts ensure that the models will always perform up to the specific requirement. As the models are consistently updated on the Blockchain used unhinged by the user’s local device, every user gets to see the one genuine version of the model.

Hence, even though Microsoft’s framework isn’t favorable for operating at large scale for now, but sooner or later, it will be the norm. There is little to no doubt that organizations like Microsoft are doing advanced research and practical work to converge AI and cryptosystems like Blockchain. There is no doubt that cryptocurrency is the future of money. So it is in the best interests of the organization to start working on merging Blockchain and AI for improved benefits.

How can an organization merge Blockchain and AI?

Just as Microsoft, more advancement is made for combining Blockchain and AI for fulfilling specific usage requirements. Such cases will depend on the company’s specific needs, but the core preference would be related to data. This will allow companies to improve their digital and data capabilities by developing a combination of AI and Blockchain solution to fit their operations.

The very first step needs to be taken by the executives to identify the specific business needs and whether creating an AI and Blockchain system would address that need. This can become easier if the organization has already worked on AI and taken initiatives in other operations because now you can integrate Blockchain to improve them.

Similarly, if the company owns valuable data, they can monetize by converging a blockchain environment and sharing the data with AI model creators. For instance, a progressive car company like Tesla probably has a good collection of valuable data collected by its cars. They can put it on a blockchain system as their self-driving cars will continue to collect huge amounts of data that they can use to improve the neural networks powering self-driving operations and functions.

With a trusted name as Tesla, the public would not be too complacent about maintaining their privacy. Blockchain would allow the company to make the driver information anonymous to ensure privacy while collecting data to improve neural nets in use.

The company can even share anonymous data with car insurance companies. It would allow the insurers to price their insurance packages for self-driving cars more efficiently and with an educated mind, given how the risk profile of a self-driving car is different from that of a regular car.

The whole packaged win-win situation here is that where the company would improve its cars, the public would get advanced transportation, complete privacy, and the right insurance for the right price without getting exploited.

Using Digital Investment Assets for Trading through Blockchain

You must be already aware of how Blockchain is already a ready-made, and good-to-go digital ledger used to store and trade financial instruments such as cryptocurrencies and cryptographic tokens. However, Blockchain is still a nascent technology, been only around for a few years. Where cryptocurrency has definitely taken the world by storm, cryptographic tokens are comparatively more nascent.

Hence, it is evident that there is no probable activity and enough data yet to apply AI to financial products like a cryptocurrency that are traded through Blockchain. However, the upgrading technology and data sets show a promising future for AI taking insights from these data sets to create financial products and trade them autonomously.

How can an organization merge Blockchain and AI?

The convergence of artificial intelligence and Blockchain would be a huge step forward, and the process will cover four distinct yet inter-linked stages.

Stage I: Proof of concepts

Stage II: Asset tokenization

Stage III: Digital Investment Assets DIA

Stage IV: AI agents trading DIA

The four stages will represent how Blockchain is proof of concepts initially. On the second stage, assets are tokenized and traded. Tokens can represent underlying security methods, physical assets, cash flows, and utilities. This reduces the alleged transaction cost and decreases the time taken for settlement to improve audit accountability.

AI and Blockchain Applications

There is no denying that a decade back if someone would have presented us with an idea of magical internet money called crypto in the future, we would have laughed and made fun of the person for coming up with Superman and Kryptonite theories. Fast forward to ten years down the line, and cryptocurrency not only exists, but there are real-world integrations of its blockchain system with AI.

Smart computing power

Think of a machine learning code that would upgrade and retrain when given the right data. That is exactly what AI affords the users to tackle tasks more efficiently and intelligently.

Diverse data sets

The combination of Blockchain and AI can create smarter and decentralized networks to host various data sets. Creating a blockchain API would enable the intercommunication of AI agents resulting in diverse codes and algorithms to be built upon diver data sets, ensuring development.

Data protection

It doesn’t matter if data is medical or financial. Certain data types are too sensitive to be handled by a single company and their coding system. Storing such data on a blockchain and accessed through AI would give its users a huge advantage of personalized recommendations, suggestions, and notifications while securely storing data.

Data monetization

Data monetization would make both AI and advance Blockchain easily accessible to smaller companies. As of now, developing and growing AI is costly for organizations, especially those who do not own data sets. A decentralized market would create space such companies for which it is otherwise too expensive.

Trusting AI for decision making

AI is growing smarter with time. Through the use of blockchain systems like crypto, transactions will become smarter, making the process easier to audit.

Conclusion

All in all, the collaborative effort of blockchain technology and AI is still majorly an undiscovered territory. One of the main reasons why we still have yet to see a commercialized joint adoption of the Blockchain system and artificial intelligence is that the upscale implementation of their convergence is quite challenging.

Many businesses, although having ventured on with AI, are skeptical when it comes to conjoining Blockchain. They are in their early stages for testing the waters for AI and Blockchain coming together in isolation. As they continue to figure it out for appropriate public distribution, the convergence of the two technologies has had its fair share of scholarly attention as well. Yet still, projects solely developed to promote the groundbreaking match are still primarily not catered to.

There is no doubt that the potential of this combination is clearly there and developing, but how it will play out for future public use can be anybody’s call.

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Claudia Jeffrey is currently working as a Junior Finance advisor at Crowd Writer, an excellent platform to get assignment help UK. She is a self-proclaimed crypto-influencer. She has gained significant expertise and knowledge in this regard over the years and likes to share it with an interested audience.

innovation

Remote Innovation Is More Than Possible: Six Tips From a Tech and Digital Revolutionary

A few years ago, Centric Consulting team member Carmen Fontana launched her first Artificial Intelligence project. The goal? Craft machine learning to predict and manage human resources conundrums, such as project staffing. The initiative involved a new-to-Carmen technology, a dual-shore team and a healthy dose of ambiguity. We funded her anyway.

Carmen was participating in Centric’s newly minted innovation incubator which allows any employee to conceive and share product and process improvement ideas. Her idea was stellar, even if the roadmap was sketchy at best.

Carmen thought if companies like Netflix, Amazon and Spotify could observe, record and learn user behavior, allowing them to continually fine-tune their recommendation algorithms far beyond the scope of a traditional Boolean (and/or) statement, then HR could do the same with staffing.

Although much about this innovation journey may sound familiar — from the ambiguity of methods to the lofty (but vision-packed) goals — there’s one core element that most likely does not:

The entire project took place remotely. And we were even able to use it to guide our weekly staffing calls.

Since its inception 20 years ago, Centric has had a thriving “office-optional” workforce, which has grown from just a handful of people to more than 1,000 employees in 13 cities in the U.S. and India.

At a time when everyone is struggling to transition to remote work while innovating, we’ve won an award while doing just that. This year, we were included in Fast Company’s list of “100 Best Workplaces for Innovators.”

As we all hunker down in our separate home offices, physically apart, the stakes around innovation are only increasing. Innovation will remain a key differentiator in the market today and tomorrow. And there’s no turning back from the changes the pandemic has brought to the workplace.

Luckily, remote innovation is something that can be planned for, managed and grown, much like every other aspect of remote work. Below is our blueprint for keeping the creative wheels turning and amping up innovation when employees aren’t always working side-by-side:

Make Extemporaneous Encounters Intentional

The right collaboration tools can create the same sort of opportune encounters that Apple and Pixar champion while also facilitating remote collaboration. Microsoft Teams and Slack, for example, provide an online space for people to talk about new ideas and track progress on innovation projects.

While working on a recent Healthcare VR project, for instance we managed all of our interactions through a Microsoft Teams space — including meetings, brainstorming chats, project management and the collection of all of our teams’ output and materials.

Start a Problems-to-Be-Solved Repository

Nothing triggers innovation like having a problem you’re itching to solve. That’s where a remote repository of problems comes in handy. The more people contribute to the repository, the better: Innovation requires a lot of ideas coming in from a variety of people.

Although you do want to collect as many ideas as possible, you also want to provide some guidelines to make sure those ideas align in some way to larger company goals or to real client or industry challenges.  A repository can be a great tool for vetting which new ideas fit the bill.

A repository can also connect a firm’s natural innovators with employees who may not have an idea to offer but are strong problem-solvers and creative thinkers. Successful innovation efforts engage both types of people.

Hold Sessions Geared Towards Innovation-Generation

Whether in-person or remote, innovation-focused sessions for gathering and testing the latest thinking, ideas and problems are key. Employees usually leave these sessions energized and excited to be part of something new.

One recent example is Expedition: Data, an in-person event to encourage and develop machine learning and data science talent. Early this spring, Centric employees worked with Microsoft and RevLocal, a national digital marketing company, to come up with innovative ways to use Microsoft’s Azure Suite and other tools to improve RevLocal’s employee and customer retention. The winning team got bragging rights and $100 Amazon gift cards.

Institute A Virtual Innovation Lab

Too many organizations focus only on getting ideas, neglecting what comes next. If one of your employees has a concept they want to explore, do they know how to go about developing it?

Centric created its Virtual Innovation Lab to guide innovators as they explore their idea and see if it has legs. The lab acts as a collaboration portal and provides tools and resources for remote teams to work through the innovation lifecycle, helping them overcome major hurdles as they mature their concept and get it to the minimum viable product (MVP) stage.

Our virtual lab essentially provides a blueprint for rapid prototyping using agile development and human experience design principles, among other innovation frameworks. The goal is to help innovators quickly assess proof of concept and proof of value. This is important. If something works, that’s great, but is it feasible from an operational standpoint? Does it actually provide value to the end users or customers? Does it solve a real problem? If the answer is no to any of these questions, your innovator either needs to pivot or kill the project.

Be Deliberate About Forming Teams

Our virtual innovation process relies on agile development, which in its purest form requires teams to be together every day. So how do we get around that as a remote company? We’re very intentional about how we put teams together.

While self-forming teams can work and come together easily when you’re in an office setting, in a virtual environment, team formation needs to be more deliberate. To do this, get to know your internal network and who has what skills, capabilities and passions. Use that knowledge to build teams that will mesh well and play off one another’s strengths. The goal is to virtually replicate the relationships and collaborative spirit that happen effortlessly in an office.

Make Transparency Your Mission

As with any effort in your organization, communication plays a critical role. And in a virtual environment, it’s easy to forget to share information or see what your teammates are doing. That’s why we’ve made transparency a key focus for our virtual innovation lab.

Transparency is not only vital for networking and team building, but it’s also necessary for defining the success metrics that matter. Innovation isn’t easy — and intentionally prioritizing transparency forces learning and greater understanding. Perfection and polish are not required (at least not until the idea is commercialized). Drive the difficult conversations now, and always try to operate in the light.

Treat Failure As Additive, Not Subtractive

Many companies are failure-phobic, and in the interest of profits, many penalize employees and divisions for losing money. But innovation only succeeds through trial and error.

To innovate, you have to embrace failure and help your teams do the same. Give them the tools and the space to test new ideas or processes. Celebrate their efforts regardless of the outcome. Organize sessions – remote or in-person –  where they share stories about their failures. We have, and it has served us well.

information technology

Investing in Technology to Build Knowledge-Based Companies

Executives understand how knowledge management as facilitating organizational processes and activities uses information technology to organize existing information. Information technology plays a crucial role in creating, retrieving, storing and applying organizational knowledge stated by Maryam Alavi and Dorothy Leidner’s MIS Quarterly review.

Executives focus on individuals as the major source of knowledge and show how followers tie together so that they can affect the sharing, storage, transfer, and apply knowledge within organizations. Executives, therefore, see these connections, and the related shared knowledge and memory, as central to the effectiveness of knowledge management.

How Technology Matters?

Executives are well versed today on information technology and usually have a fleet of followers in this department that they can depend on. Sandy Weil, a financial executive, wanted one number when he left the office that determined his value at risk. His technology team delivered and came up with one number called VAR (Value At Risk). Wiel slept much better knowing what risk he faced while running one of the largest financial organizations in the world. He was controlling operational risk and inspiring employees to follow where he leads.

Technology, as one would imagine, is often associated with information and communication dispersed within companies. Considerable alignment between information technology and the knowledge-based view connects the two to develop and disseminate knowledge throughout the organization which, in turn, is an important factor of sustainable competitive advantage.

Executives agree with Robert Grant, who states that knowledge integration is one of the main reasons for the existence of companies. Furthermore, Andrew Gold, Arvind Malhotra, and Albert Segars suggest information technology as an important resource for strategic planning for knowledge integration. Olivier Caya posits that information technology enables knowledge integration by using three possible mechanisms:

1. Impersonal

2. Personal

3. Collective

Executives can use the impersonal mechanism to enact regulations, procedures, and rules aimed at coordinating intellectual capital within organizations. Information technology disseminates protocols among members and allows them to be knowledgeable of their progress toward meeting determined milestones stated in the strategic plans.

The personal mechanism is used by executives to vertically and horizontally exchange knowledge between employees and collective mechanism is used when information technology manifests itself as a synthesizer of ideas and knowledge acquired from multiple organizational members. Thus, information technology encourages people to embark on technological facilities, such as shared electronic workspaces, to provide new ideas and possible solutions for solving organizational problems. As a result, it is viewed that information technology plays a critical role in integrating knowledge and is therefore aligned with the knowledge-based view.

Executives can use information technology as a communication mechanism manifestation and deployment and decision-aid technology. For example, Hsin-Jung Hsieh argues that communication technology provides ways to enhance interactions among members and departments within organizations. This type of technology eliminates the barriers of organizational communications while improving the extent of knowledge sharing and access for all followers at various levels of the organization.

Thus, there is a strong correlation between communication technology and social capital view that sheds light on the development of relationships within organizations to aggregate human capital into social capital so as to provide further information and opportunities for all members. This subsequently creates valuable resources for an organization as a whole.

Furthermore, decision-aid technology develops cohesive infrastructures to store and retrieve the knowledge to enable followers in creating more innovative solutions to problems and managing operational risks. Ergo, information technology supports knowledge by enabling interactions and providing more comprehensive and effective solutions to solve organizational problems.

Unleashing the Power of Knowledge in Companies

Today, technology has changed the business world ten-fold. Every day there is an easier way to process, access, and disseminate information. Technology – now referred to as Information technology – is an internal resource that increasingly facilitates organizational communication and improves the search for knowledge. When executives have people in place to manage information technology, the organization can see increased revenues, better satisfaction by employees and customers, and most importantly enhance their own effectiveness as leaders.

The social capital view supports the idea that knowledge creation is highly dependent on developing organizational communications and interactions. Information technology enables organizations to overcome space constraints in communication, and promotes the depth and range of knowledge access and sharing within companies.  More specifically, communication technologies can be employed to enhance the conversations and knowledge exchanges between organizational members. Scholars such as Andrew Gold, Arvind Malhotra and Albert Segars argue that this knowledge shared through information technology could positively contribute to knowledge integration.

I also introduced executives to what the scholar Robert Grant describes using the knowledge-based view. Highlighting knowledge integration as a major reason for the existence of a company. Knowledge sharing itself can develop more innovative climates and facilitate knowledge creation in organizations. Thus, communication technologies can play a crucial role in improving knowledge creation.

Communication technology is an internal resource that develops and integrates organizational knowledge as the most strategic factor of competitiveness. As executives use expert systems for decision-making, technology becomes a decision-aid. As mentioned earlier, decision-aid technology can be also considered as a facilitator of the knowledge creation process by providing the essential infrastructures to store and retrieve organizational knowledge.

Executives agree with Shahnawaz Muhammed who highlights major functions for information technology and explains that information technology enhances learning and sharing knowledge by providing access to knowledge, and stimulates new ideas and knowledge generation, transfers an individual’s knowledge to other members and departments, and improves knowledge capturing, storing, and accumulating, aiming at achieving organizational goals. Bringing us to the conclusion that information tech has a positive association with knowledge management performance in companies.

In Conclusion

Standing on the shoulders of scholars before us, I indicate that information technology is a major factor for knowledge management success and supports the positive impact of information technology on knowledge management performance.

For executives, this article can portray a more detailed picture of the effects of information technology on knowledge management. Many organizations still implement knowledge management initiatives without sufficient consideration of their technological infrastructures.

When executives ensure the effectiveness of knowledge management projects they increase control and lesson operational risk. I also suggest that a firm’s ability to enhance knowledge management can be highly affected when executives implement information technology. Furthermore, I suggest that scholars take these ideas and continue to conduct research using executives as the focal point so that academic scholarship can meet the needs of managerial implications at the higher echelons of organizations worldwide.

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Mostafa Sayyadi works with senior business leaders to effectively develop innovation in companies and helps companies—from start-ups to the Fortune 100—succeed by improving the effectiveness of their leaders. He is a business book author and a long-time contributor to business publications and his work has been featured in top-flight business publications.

post-pandemic

Four Post-Pandemic Technology Solutions for the New Normal

Currently, organizations around the world are strategizing ways to return their workforces to being back in-office and other places of work, as the world begins to re-open post-pandemic. Guidelines and protocols issued by federal, state, and local agencies will be key drivers of what the new normal looks like in a corporate setting. From staggered groups of employees allowed in the office each day, to thermal screenings and the end of communal or high-touch areas, businesses will need to have flexible return to work plans in place that allow for social distancing and reduce the risk spreading COVID-19.

The new reality is that workplace environments will be anything but “normal.” Organizations will operate with reduced in-office staff, manage both remote and in-office team members and combat economic slowdown by reducing spending and optimizing resources. Technology is essential to accommodating this new post-COVID business environment. While overall budgets will decrease, technology spending will increase.

Here are four technology solutions that will help enterprises navigate and operate in a new reality:

1. Automation Solutions

Business process automation has become a strategic enabler of business agility for present-day organizations, from helping to speed up business processes and reduce errors, to eliminating repetitive work. Specifically, robotic process automation (RPA) has quickly become an essential tool that an increasing number of CIOs are utilizing across their organizations. Through RPA, mid- to large-sized enterprises can configure a “robot” to deal with various interrelated processes, to unify and streamline day-to-day work internally. The right RPA tools can not only save reduce staffing costs and human error, but also streamline communication, improve management and retain customers.

2. Chatbots

As social distancing and a global remote workforce are the new normal during these unprecedented times, it’s helpful to boost collaboration and productive engagement across an organization’s remote teams through chatbots. Chatbots help reduce the load on the technical support team and cut operational costs. Furthermore, they offer a progressive avenue for marketing and sales departments to streamline customer and client communications, ultimately improving sales and customer services. In a time of a pandemic, combined with the increasing number of remote workers, the adoption and implementation of chatbots will only continue to grow.

3. Communication and Collaboration Platforms

Communication and collaboration platforms like Microsoft Teams, Basecamp, and others help bridge the gap between physical presence and remote collaboration. With the new social distancing guidelines and protocols, a combination of virtual and in-person work environments will be essential to ensuring business continuity across an enterprise. Whether an employee is in-office or remote, a robust communication and collaboration platform ensures they can take and access their work anywhere. It enables employees to give optimal output, while also minimizing the physical disruptions caused by COVID-19.

4. Hybrid Cloud Infrastructure

Hybrid cloud infrastructures have changed the way enterprises store, access and exchange data. In the wake of the global pandemic, it will tremendously alter the landscape of corporate environments. Hybrid cloud is a computing environment that uses a combination of private cloud and public cloud services. Organizations can achieve the perfect equilibrium between private and public clouds by leveraging both platforms to run critical workloads. This architecture provides businesses greater flexibility and more data deployment options when working with a reduced workforce.

As a result of the business impacts that COVID-19 has had on the business world, a new wave of technological innovation is sweeping across the industry to help transform various aspects of business. As organizations look to combat an economic depression, they will need to implement technology solutions to “get the job done” with the limited staff they have on hand. Therefore, tools and platforms that allow employees to perform tasks without any high-level coding or professional development skills will be high in demand. Automation solutions, chatbots, communication platforms, and hybrid cloud infrastructures will provide the businesses of tomorrow the ability and flexibility to operate successfully and competitively in a post-pandemic “new normal.”

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Ajay Kaul is a visionary leader and a trendsetter. As managing partner of AgreeYa Solutions, he has been instrumental in leading the company through solid growth and international expansion for the past 20 years. Kaul has three decades of experience in building powerful and innovative solutions for businesses across various industries and verticals. His expertise and knowledge expand across enterprise sales management, marketing and strategy, global delivery, and mergers and acquisitions.

businesses

How Businesses can Weather COVID-19: Start with Empathy to Employees

Major U.S. businesses are adjusting operations, laying off employees or reducing hours in response to the coronavirus outbreak.

It’s uncharted territory for the nation, and companies from large brands to small businesses, like everyone else, are operating without a playbook to deal with an unprecedented public health threat that will also have economic implications. How businesses adjust to the pandemic and respond to this “new normal” is critical to the future of their business.

“The most important part is showing empathy to employees – now more than ever in these uncertain times,” says Ed Mitzen (www.edmitzen.com), founder of a health and wellness marketing agency and ForbesBook author of More Than a Number: The Power of Empathy and Philanthropy in Driving Ad Agency Performance.

“While every company is dealing with the effects of the COVID-19 outbreak, it’s important to keep in mind that your employees are being affected in more ways than one. Added challenges to daily life now include your partner working next to you, your children being home from school, and having to keep an extra close eye on elderly relatives. In these unusual circumstances, people will notice which companies are treating their employees with empathy and compassion and which are not.”

A business leader’s response during a time like this defines who they are as a leader.

Mitzen thinks this challenging time could be used by business owners to assess their company culture and consider that how they treat employees is central to that culture and vital for business results. He explains how leaders can show empathy to employees, strengthen company culture and drive performance:

Lead with support, not force. “Culture starts at the top, and the best results come when leaders support their people and help them get the most out of life, rather than trying to squeeze them to work harder and harder,” Mitzen says. “People can sacrifice for the job for only so long before they burn out. It may sound counterintuitive, but sometimes prioritizing life over work actually improves the work product. Once you hire good people, you don’t have to push them with crazy deadlines to squeeze productivity out of them.”

Build a team of caring people. “Business is a team sport,” Mitzen says. “To have an empathetic culture, you need people who care for each other and work well together. Build teams by looking for people who lead with empathy.  Don’t hire jerks. People who are super-talented but can’t get along with others tend to destroy the team dynamics, and the work product suffers.”

Define a positive culture – and the work. Showing empathy to employees can be an engine generating creativity and productivity. “The internal culture at a company defines the work the company produces,” Mitzen says. “Culture influences who chooses to work for you, how long they stay, and the quality of work they do. And the core of the culture is empathy, starting with employees and extending to customers and the communities that you live in. There’s a strong connection between a healthy work culture, which inspires people, and the work customers are receiving. That kind of company makes sure customers are treated the same way they are being treated.”

“Now more than ever, empathy, kindness and compassion are important values to keep at the forefront of your organization,” Mitzen says. “Business leaders can take the lead in doing the right thing, starting with their employees.”

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Ed Mitzen (www.edmitzen.com) is the ForbesBook author of More Than a Number: The Power of Empathy and Philanthropy in Driving Ad Agency Performance and the founder of Fingerpaint, an independent advertising agency grossing $60 million in revenue. A health and wellness marketing entrepreneur for 25 years, Mitzen also built successful firms CHS and Palio Communications. Fingerpaint has been included on the Inc. 5000 list of fastest-growing companies for seven straight years and garnered agency of the year nominations and wins from MM&M, Med Ad News, and PM360. Mitzen was named Industry Person of the Year by Med Ad News in 2016 and a top boss by Digiday in 2017. A graduate of Syracuse University with an MBA from the University of Rochester, Mitzen has written for Fortune, Forbes, HuffPost, and the Wall Street Journal.

nominations

Global Trade Magazine Accepting “Women in Logistics” Nominations

Global Trade Magazine officially opened nominations for its May/June cover story, “Women in Logistics” beginning this week through the end of March. This marks the publication’s second annual feature spotlighting leading female executives reshaping the way companies approach industry disruptions. The ideal candidate has a proven track record of creating long-term solutions impacting various sectors including transportation, warehousing, shipping, and supply chain management.

“As we continue to see a rise in female leaders within the logistics industry, I wanted to take recognition to the next level for female executives fostering positive company culture while displaying exemplary leadership all industry players can learn from,” said Eric Kleinsorge, Publisher and Chairman of Global Trade Magazine. “Last year’s cover story was a huge success. We received a lot of positive feedback from our readers and we’ve already received impressive nominations for this year’s feature.”

Among leading ladies featured in the 2019 issue included Joan Smemoe of RailInc., Jane Kennedy Greene of Kenco, Wendy Buxton of LynnCo Supply Chain Solutions, and Barbara Yeninas and Lisa Aurichio of BSYA. This year’s selected nominees will be selected based on factors including tenure, industry relevance, impact on the industry, the health of relationships with employees, with a high emphasis on their workplace culture approach. Nominations will be limited to one executive per submission and participants can enter their executive of choice until March 31st at 5 p.m.

“I encourage workers from around the globe to take a few minutes and submit female leaders that have changed the way they view leadership and have made a positive impact on their career and industry. It’s important to the evolving culture of global companies to recognize these women for their dedication to the industry and the workers that make success possible,” Kleinsorge concluded.

To submit a nomination, please click here or call (469) 778-2606 for more information. 

4PL

ONE, TWO, 3PL … or 4PL? DETERMINING WHICH MAKES THE MOST SENSE FOR YOUR BUSINESS

The supply chain ecosystem is becoming more demanding as consumers are conditioned to expect nearly instantaneous free shipping and where order delays can inflict serious damage to brands. As a result, shippers must carefully select their supply chain partners, as their performance has a much greater potential impact on customer satisfaction and the bottom line than ever before.

However, shippers are often perplexed when faced with the choice of partnering with a 3PL or 4PL to tackle their logistics and transportation challenges.

“Every shipper is unique, but many face the same challenges and share the same goals: reducing costs, optimizing their network, consolidating shipments, changing behaviors, improving customer service, and improving visibility, to name a few,” says Ross Spanier, senior vice president of Sales and Solutions at GlobalTranz, a Phoenix, Arizona-based tech company that provides a cloud-based, multimodal transportation management system (TMS) to shippers, carriers and brokers.

“The common thread that links these challenges and goals is data,” Spanier continues, “and many companies lack the data they need to make truly informed business decisions.”

He should know. Spanier brings more than 17 years of experience—which includes stops at C.H. Robinson and Logistics Planning Services—to the discussion of 3PL versus 4PL partnerships. Shippers, he maintains, should focus on the capabilities of the prospective partner and seek out partners that combine the technology, people, multimodal services and solutions they need to in gain a competitive advantage.

“Many shippers really cannot afford to staff and maintain an internal transportation and logistics team,” he notes. “Finding a partner that can act as an extension of their business is key. It’s also extremely important to make sure your partner can provide technology and experience in implementation, execution and integration. That can be a significant cost and a disruption for businesses that attempt to do that by themselves.”

Whether you’re a medium-sized business or listed on the Fortune 1000 annual list, deciding between a 3PL and a 4PL sets the stage for all moving parts.

“A common misunderstanding is that a 3PL is just a broker, when the reality is they can be much more than that,” Spanier says. “At GlobalTranz, our managed solutions are a great example of that. We can offer a more strategic and consultative approach for our customers including having ‘skin in the game’ on the broker side, where we’re taking on pricing commitments, service level commitments, managing the risks and owning the contracts.

“Many times, that is one of the common misunderstandings because a 3PL can act very strategically with customers and not necessarily need a fourth party. The 4PL typically offers strategic insights and management of a company’s entire supply chain, and often if one goes back to the question of ‘what is the difference between a 3PL and 4PL,’ 4PLs are the right fit for much more mature, large or complex organizations.”

GlobalTranz positions itself as a leader in customized solutions for a wide variety of shippers across many industry verticals. From LTL to truckload, final mile or white-glove service, intermodal, ocean, air, and cross-border Mexico transportation … are all part of the GlobalTranz offering. In addition, the company offers an award-winning TMS. The company takes pride in collaborative efforts between the people driving their technology as an integrated solution offered to their customer base.

“Whether a customer is best-suited for a 3PL or 4PL solution is typically not already known when we walk in the door, Spanier explains. “We like to show where a customer can gain the most value based on the solution and its capabilities. More times than not, it’s about voicing that to the customer and understanding where their constraints are and how we can put a solution together–a 3PL or a 4PL solution.”

GlobalTranz boasts a different approach when it comes to serving its customer base. Its robust managed solutions offerings serve a variety of needs that can be tailored upon identifying where the client’s business needs it the most. The experts at GlobalTranz take the process of solution identification one step further by evaluating the needs and configuring a solution from there. There is no “one-size-fits-all” solution, which is exactly how GlobalTranz separates itself from the rest as a leader in logistics solutions–whether that be a 3PL or 4PL solution.

“People, processes, and technology are important, and it’s crucial to establish relationships and communications that are aligned with company goals,” Spanier contends. “Without strong relationships in place, technology and process won’t deliver the needed support or what they’re looking to get out of a partner. When you have a customer looking at a 3PL solution, you want to make sure that a 3PL has the ability to bring in carriers no matter what markets they operate in. This is critical because they may be in one market today but with growth, both organic and through acquisitions, and the changing dynamics in customer demand and expectations, the footprint could expand and it’s important to have a partner that is quick to react and agile in respect to their carrier partners as well.”

So, when deciding on what makes the most sense for your business, consider partners that not only provide solutions but are agile and customizable based on specific business goals.

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As the GlobalTranz Senior Vice President of Sales and Solutions, Ross Spanier leads the enterprise sales organization as well as the design and delivery of innovative and customized supply chain solutions that drive efficiency, cost savings and competitive advantages for current and prospective customers. With more than 15 years of experience in the supply chain and logistics industry, Spanier has developed and grown sales and operations teams specializing in best-in-class service execution of LTL, TL, expedite, supply chain management, projects & heavy haul, white glove and managed transportation service lines. Prior to joining GlobalTranz in 2017, he held sales and operations leadership roles at both C.H. Robinson and Logistics Planning Services (LPS).

costs

10 Tips for Cutting Costs and Improve Customer Service in Supply Chain Logistics

As organizations continue to create and source raw materials from overseas, controlling expenses remains the number one priority for players involved in international trade.

One critical factor that executives should monitor closely is logistics management. This sector covers important activities relating to procurement, transport, and storage of goods. In most industries, supply chain logistics account for 5% to 50% of a product’s total cost.

Some of the issues that affect logistics costs include fuel prices, complex international trade laws, and security. High transportation fees are mainly caused by high fuel prices delays in ports. Complex international trade laws increase warehousing costs by lengthening delivery times.

As technology evaluation.com reports, air-freight shipment takes about eight to twelve days. During these days, the cargo is on ф route around 5% of the time. 95% of the time is spent lying in warehouses waiting for compliance checks and documents. So, how can you cut down costs and improve customer service in supply logistics? Keep reading!

1. Use your space efficiently

Using your space efficiently will save you a lot of money in the long run. As you already know, storing your supplies in a warehouse comes at a cost. Figure out whether you are making the most out of your space or not.

You might discover other ways of finding spaces that are best suited for your business. As we’ve seen, supplies, spend most of their time in warehouses waiting for compliance checks. The more efficient you are at warehousing; the more profits you’ll generate at the end of the day.

2.  Automate your processes

Organizations that use technology solutions to automate compliance processes have the power to speed up the process four times as much compared to organizations that rely on manual work. Automating tasks such as document preparation will eliminate expensive mistakes and errors.

Automating your processes also leads to fewer delays at crossing points thus resulting in timely deliveries, increased customer satisfaction and avoidance of expensive fines.

3. Inform decision-makers

According to dissertation service, providing decision-makers or your customers with the costs of freight associated with each service level, the reliability of every lane and the total cost of transporting inventory will make it easier for them to make informed decisions and work with you in the future. In most cases, your customers will select the cheapest option that complies with the laws to meet their needs.

4. Figure out the real costs of sourcing overseas

Before sourcing overseas, you need to calculate freight, brokerage, duty, and transportation costs to support these long supply chains. You should factor in other costs such as engineers flying overseas. Once you figure out the total landed cost and its impact on your business, you might discover that domestic buy is quite attractive. For instance, sourcing from Ohio to your plant in the US might be cheaper in the long run compared to sourcing from China.

5. JIT inventory management

There are many benefits to implementing Just-in-Time inventory management. With this system, you can order and receive inventory only when you need to. In the long run, this will reduce your inventory transportation costs, protect against write-downs attributed to dips and eliminate unnecessary overhead costs caused by excess inventory.

6. Sales and operations planning

For a supply chain to function at its highest efficiency, sales, and operations planning is required. Optimal performance greatly depends on creating proper plans. However, it can be complicated and expensive in the long run.

By working with a third-party logistics provider, your team will eliminate waste and redundancies thus enabling you to analyze data, forecast and enhance visibility so that everyone is involved. During the sales and operations planning process, you should address issues such as unrestrained stock-outs, obsolete inventory, inaccurate forecasts and adjusting demand and production schedules.

7. Package your products well

Packaging your products well will result in less or no damages during the shipping process. Ensuring that the people responsible for packaging your products do it properly will minimize quality costs and build your reputation. As the saying goes, it’s the smallest things that matter the most.

8. Assess your performance

You have to measure the performance of your strategies to forge the way forward. Doing business without assessing your performance regularly is a recipe for disaster. By not assessing your performance, you’ll have a hard time determining how much money you are spending and saving. Come up with your key performance indicators and gauge how well your business is doing.

9. Eliminate variability during transit times

The more variable the transit times, the higher the likelihood that the receiving party is using premium freight, ordering more quantity than is necessary to compensate for the uncertainty of creating buffers of inventory. When you understand these dynamics, you’ll realize that paying for higher freight costs will enhance variability and save your company loads of cash in the long run.

10. Choose your mode of transport.

Which mode of transport is the cheapest? Trains? Airplanes? Automobiles? In most cases, rail is cheaper when transporting bulky goods than air or trucking. Also, water is cheaper than air. Regardless of the delivery model, it’s important to get all the quotes from different modes of transport available.

Conclusion

Managing a supply chain logistics company is not the easiest thing to accomplish. You have to make the right move every time out to avoid expensive mistakes and losses. The ten tips discussed above will help you reduce your costs and grow your business. You owe it to yourself to assess your situation and determine what needs to be changed or implemented.

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This guest post is contributed by Kurt Walker who is a blogger and college paper writer. In the course of his studies he developed an interest in innovative technology and likes to keep business owners informed about the latest technology to use to transform their operations. He writes for companies such as Edu BirdieXpertWriters and uk.bestessays.com on various academic and business topics.