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How to Gain an Advantage in Manufacturing Facilities During Post-Crisis Times

manufacturing

How to Gain an Advantage in Manufacturing Facilities During Post-Crisis Times

In the United States today, as many manufacturers have entered post-crisis phases in their facilities, some have a much different business model than they did entering 2020. Others, such as those who manufacture medical supplies, craft supplies, and pet supplies, don’t look much different than they did at the beginning of the year, outside of a backlog of orders that they are doing their best to fill in a timely fashion. 

Some manufacturers were surprised at how well their products did during crisis times earlier in the year. For example, LumenAID, a manufacturer of portable, solar-powered lanterns that double as a phone charger, has seen a huge uptick in sales. It seems with people preparing for times unknown, emergency supply manufacturers of this type can’t fill the shelves quickly enough. Other manufacturers were well aware of the need for their products, like office chairs, school supplies, and pet training products. The comforts of home for those stuck at home became the quick front-runners in sales, and suppliers with stored inventories were pleasantly surprised with their sales numbers. 

Yet, for some manufacturing facilities, especially in the hardest-hit areas of the country, it wasn’t a lack of demand that shut down the product lines. It was the lack of production associates able to make it to the facility. Quarantine, public transportation being shut down, mandatory stay at home orders, and a lack of child care left some facilities looking much like a part of a ghost town. The most prepared of those production facilities put that time in the hands of their plant engineers and maintenance managers, and for good reason. 

In an industry where it is often common for machines to run in 72-hour cycles or longer to meet production needs, the downtime came as a blessing in disguise to many engineers and mechanics. They strapped on their tool belts and began performing preventative maintenance that had been put off, in some cases, until the machinery refused to operate any longer. While many production associates were home by no choice of their own, skeleton crews of mechanics and engineers quietly worked behind the scenes to ensure that the production lines that these associates returned to were repaired, lubed, and ready to run for another 100,000 rotations. 

While You Were Out…

Although we’re not positive what the “new” normal will look like, manufacturers are doing their best to get back to business as usual.  One key element is ensuring that their facility can handle the workload, and well-maintained production lines are a fundamental part of that process. Even those production facilities that did not have to implement the Emergency Contingency Plan and were still able to run socially distanced production shifts were finding difficulty in getting the parts necessary to perform preventative maintenance on their production machinery. 

Facilities with CMMS systems that handled their maintenance parts rooms were seeing just how much those systems did for them, possibly for the first time ever. These manufacturing facilities were able to perform preventative maintenance as normal, because of the reorder point set in the CMMS, ensuring that the parts to perform the maintenance were, indeed, stocked in the parts room. Due to the human element being removed by CMMS, the moment the last technician performed the PM and took the part off of the shelf, the system already issued a purchase order and had a replacement on the way. 

Full Speed Ahead

As manufacturers are getting back into the swing of things, especially those fortunate enough to have orders that they need to fill, the appreciation for well-maintained machines is at an all-time high. With most of the country able to return to work, and production lines full of associates thankful to be back on the line, returning to a facility with newly maintained machinery is just another day in manufacturing. However, from the mechanics and engineers who worked solo overnight shifts to prepare for firing the production lines back up, there is a nearly audible sigh of relief when the conveyor belts start running. 

Preventative maintenance was, in some facilities, the only items that could be completed during the height of the crisis, and production managers are reaping the benefits of those overhauls at the moment. In notoriously under-maintained facilities, the quietly operating, well-oiled machinery that is producing post-pandemic inventory is a sign of moving into stronger financial times. 

As A Post-Crisis Model

If your production facility is running at a pre-pandemic rate, you’ve more than likely gotten back into the normal preventative maintenance schedule, less a few adjustments. For those facilities that don’t have the need to run full production shifts at this point, investing labor dollars into machine maintenance is a smart move. Although the need may not be there at the moment, when the orders do come in, the ability to perform full production runs without stopping because of unperformed routine maintenance will be one more way to stay competitive. 

Well maintained machinery produces to specification, which reduces scrap and reworks exponentially. By producing a consistent and reliable product, your facility develops a reputation for quality, and that is priceless in post-crisis America. By ensuring that your production facility is adhering to a preventative maintenance schedule, you’re committing to running products that are manufactured to strict standards at a time when they’re more valued than ever. A CMMS is another tool in a manufacturer’s facility to ensure that they’re producing items that meet or exceed the expectations of their customers. 

In addition, maintenance costs are decreased by 5-10 percent by having a preventative maintenance program in place in a manufacturing facility. It also decreases the time spent repairing machinery by 20-50 percent. In terms of looking out for the bottom line as manufacturing facilities try to push forward in uncertain economic times, a strong preventative maintenance program makes sense. In saving both time and money long term for manufacturing facilities, preventative maintenance can help manufacturers get a leg up in the post-crisis American economy. 

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Co-Founder and CEO of REDLIST. Raised in a construction environment, Talmage has been involved in heavy equipment since he was a toddler. He has degrees and extensive experience in civil, mechanical and industrial engineering. Talmage worked for several years as a field engineer with ExxonMobil servicing many of the largest industrial production facilities in the Country.

ships

DON’T LOOK SOLELY AT THE LARGEST SHIPS IN GLOBAL SUPPLY CHAINS

When it comes to ocean transportation, some might automatically think of massive container vessels carrying loads upon loads of cargo with ease. Vessels such as the OOCL Hong Kong, COSCO Shipping Taurus or Madrid Maersk are on the list of the largest shipping vessels across the globe. Although these and other large-scale shipping vessels significantly contribute to the movement of goods in the supply chain, there are quite a few smaller vessels and ships that are just as important and continue contributing to the transportation of goods and fulfilling other purposes for those on the water.

Our goal is to give these smaller vessels credit where it is rightfully due, all while examining their position in the ocean transportation industry and where they are headed.

REEFER SHIPS (AND CONTAINERS)

Known for being smaller in size and scale, the reefer ship serves a special purpose in transporting goods, specifically perishable goods including food and other items requiring specific cooling capabilities. The major differentiator among these ships is their unique design exclusively for transporting cold items. These ships are typically equipped with specific access points and pallets capable of holding reefer containers (usually twenty-foot TEUs). Port Technology has appropriately referred to these reefer containers as “large fridges carried by containerships.”

Among the types of cargo commonly found on one of these reefer ships, bananas are considered the most important over fruits, meats, and even blood and other expensive types of cargoes, according to Port Technology. Other items include pharmaceuticals, flowers and other perishable food varieties. Without the capabilities of these reefer ships to ensure proper temperatures are maintained during transport, many parts of the supply chain would suffer.

The reefer ship does have its competition, however. The previously mentioned “large fridges” are becoming savvier and offering more in terms of temperature variations during transport. Port Technology reports that in 2018, only eight total reefer transport specialist companies existed out of the original 20+ back in 2000. These upgraded reefer containers are cited as the main culprit of this.

BARGE VESSELS

Known for its unique “raft” appearance and functions, the barge vessel stands out by offering much more than what meets the eye. This special type of transport method requires some powering from another source, meaning it does not have its own engine to keep it moving. Although there are some self-powered barges in the modern market, the classic barge in known for relying on a tugboat to move from point A to point B successfully. The barge maintains its position for inland transportation through its environmentally friendly benefits such as reduced fuel usage while transporting more in fewer miles compared to trucks.

According to a report from the American Maritime Partnership, more than 750 million tons of cargo are moved by the famous tug-and-barge combination every year, in addition the $30 billion economic impact in America. The barge industry is not exempt from disruptions, however. Last year proved to be a difficult time for the industry due to extreme flooding and trade tensions, directly impacting the agricultural sector. The Waterways Journal reported that 19.8 million acres went without planting in 2019 due to flooding.

“While some freight rates have appreciated, we still face downward pressure in agricultural and coal markets that need significant improvements in demand before the barge industry can realize a true recovery from what we have seen in the last three to four years,” commented Mark Knoy, president and CEO of American Commercial Barge Line (ACBL) in the report.

TUGS

Think of tugs (or tugboats) as a “part two” of the barge vessel. The tug holds its own in the maritime world, however, and is not solely confined to pulling the barge in its lifetime on the water. Whether it is an ocean, sea, rescue or harbor tug, these much smaller helpers on the water work alongside non-powered vessels or other watercraft, including some sizeable ships that needs assistance when in trouble.

These small-but-mighty supporters have a decent range of displacement anywhere from 300 to 1,000 tons, depending on which type (ocean, rescue, harbor). Large tugs are of great importance to global navies. One of the largest of these types of tugs is the Russian Navy’s Vsevolod Bobrov, which boasts a 9,700-ton displacement and the ability to break ice when needed.

CHEMICAL TANKERS

Think of these tankers as the hazmat vessels of the maritime shipping world. Ranging from S1, S2 and S3 rankings of ships, the chemical tankers on the ocean vary in degrees of safety measures based on the types of chemicals onboard and their requirements outlined by the International Bulk Chemical Code (IBC). These tankers vary in size but are typically anywhere from 5,000 dwt all the way up to 50,000 dwt, although the larger tankers are not as frequently seen. These ships come equipped with individual deep well pumps, pipelines and other systems to ensure minimum risk of exposure and potential contamination.

Chemical tankers are a different breed of ships as they come with an increased set of risks from the liquids they transport. Among common risks, cargo compatibility, cargo spillage, toxicity and flammability all pose potential problems for those onboard and the environment. Compliance simply cannot be subpar in efforts when it comes to transporting chemicals and leading chemical carriers such as Odfjell Tankers, Fairfield Chemical Carriers, and B+H Shipping continue to make waves in the transport of chemicals and other related liquids across the globe.

These are just a few of the various types of watercraft supporting the global supply chain. Without these ships guiding the way, many of the things needed to keep domestic and global economies afloat would not be as easily accessible, transportable, or available. As containerships and other mega-vessels continue to challenge the ocean shipping landscape, it is important to consider the ways these smaller ocean vessels and ships can transform to better meet market demands while supporting sustainable operations. At this point in time, these smaller players in ocean shipping are here to stay.

railway

France, Italy, and Austria Drive the European Railroad Rail Market

IndexBox has just published a new report: ‘EU – Railway Or Tramway Track Construction Material Of Iron Or Steel – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2019, the EU market for railway or tramway track construction material of iron or steel increased by 1.9% to $3.1B, rising for the third consecutive year after two years of decline. Overall, consumption continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 with an increase of 9% against the previous year. Over the period under review, the market hit record highs at $3.7B in 2008; however, from 2009 to 2019, consumption remained at a lower figure.

Consumption by Country

The countries with the highest volumes of consumption of railway or tramway track construction material of iron or steel in 2019 were France (463K tonnes), Italy (434K tonnes) and Germany (369K tonnes), together accounting for 40% of total consumption. These countries were followed by the UK, Poland, Austria, Spain, the Netherlands, Romania, Belgium, the Czech Republic and Luxembourg, which together accounted for a further 52%.

From 2007 to 2019, the most notable rate of growth in terms of consumption of railway or tramway track construction material of iron or steel, amongst the main consuming countries, was attained by France, Italy, and Austria, while consumption of railway or tramway track construction material of iron or steel for the other leaders experienced more modest paces of growth.

In value terms, the largest iron and steel railway construction materials markets in the European Union were France ($601M), Italy ($506M) and Germany ($333M), together accounting for 47% of the total market. These countries were followed by Spain, Austria, Poland, the Netherlands, Romania, Belgium, Luxembourg, the Czech Republic and the UK, which together accounted for a further 43%.

In 2019, the highest levels of per capita consumption of railway or tramway track construction material of iron or steel were registered in Luxembourg (108 kg per person), followed by Austria (30 kg per person), Belgium (9.15 kg per person) and the Netherlands (8.78 kg per person), while the world average per capita consumption of iron and steel railway construction materials was estimated at 6.13 kg per person.

From 2007 to 2019, the average annual growth rate of the per capita consumption of railway or tramway track construction material of iron or steel in Luxembourg totaled -3.5%. In the other countries, the average annual rates were as follows: Austria (+14.8% per year) and Belgium (+0.2% per year).

Production in the EU

In 2019, production of railway or tramway track construction material of iron or steel increased by 1.4% to 3.2M tonnes, rising for the second consecutive year after two years of decline. Overall, production, however, continues to indicate a relatively flat trend pattern. In value terms, production of railway or tramway track construction material of iron or steel expanded remarkably to $5.4B in 2019 estimated at export prices.

Production by Country

The countries with the highest volumes of production of railway or tramway track construction material of iron or steel in 2019 were Austria (718K tonnes), Poland (406K tonnes) and Spain (387K tonnes), with a combined 48% share of total production.

From 2007 to 2019, the most notable rate of growth in terms of production of railway or tramway track construction material of iron or steel, amongst the main producing countries, was attained by Poland, while the production of railway or tramway track construction material of iron or steel for the other leaders experienced more modest paces of growth.

Imports in the EU

For the third consecutive year, the European Union recorded growth in overseas purchases of railway or tramway track construction material of iron or steel, which increased by 4.9% to 1.4M tonnes in 2019. Total imports indicated a temperate increase from 2007 to 2019: its volume increased at an average annual rate of +2.2% over the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2019 figures, imports increased by +32.8% against 2016 indices. Over the period under review, imports attained the peak figure in 2019 and are likely to see gradual growth in years to come. In value terms, imports of railway or tramway track construction material of iron or steel dropped to $1.3B (IndexBox estimates) in 2019.

Imports by Country

In 2019, Germany (314K tonnes), distantly followed by Italy (173K tonnes), France (155K tonnes), the UK (118K tonnes), Poland (88K tonnes) and Belgium (86K tonnes) were the major importers of railway or tramway track construction material of iron or steel, together creating 69% of total imports. The Czech Republic (59K tonnes), Sweden (55K tonnes), Spain (55K tonnes), the Netherlands (35K tonnes), Hungary (33K tonnes) and Portugal (27K tonnes) occupied a minor share of total imports.

From 2007 to 2019, the most notable rate of growth in terms of purchases, amongst the leading importing countries, was attained by Italy, while imports for the other leaders experienced more modest paces of growth.

In value terms, Germany ($271M), Italy ($201M) and France ($126M) appeared to be the countries with the highest levels of imports in 2019, with a combined 45% share of total imports.

Import Prices by Country

The import price for railway or tramway track construction material of iron or steel in the European Union stood at $993 per tonne in 2019, falling by -11.2% against the previous year. Over the period under review, the import price showed a mild curtailment.

There were significant differences in the average prices amongst the major importing countries. In 2019, the country with the highest price was Hungary ($1,402 per tonne), while the UK ($655 per tonne) was amongst the lowest.

From 2007 to 2019, the most notable rate of growth in terms of prices was attained by Hungary, while the other leaders experienced a decline in the import price figures.

Source: IndexBox AI Platform

cargo

Shipping Strategies for High-Value Cargo

Shipping cargo of any kind requires taking certain precautions to ensure the shipment arrives at its destination safely. Things get more complicated when high-value cargo is involved. Shipping cargo that includes unique pieces of art, fine jewelry, electronics, luxury apparel, pharmaceuticals, alcohol, and high-end food is riddled with even more risk. Any company can use a variety of shipping strategies for high-value cargo. The main aim, however, is always to completely eliminate the risk of damaging, losing, or anyone stealing the items. The strategies have to account for an optimal delivery route and provide security at each stage of shipping – transshipment, transport, and storage.

How does cargo theft happen?

Most logistics companies worth their salt are able to ensure their shipments of high-value cargo do not get lost or damaged by taking all of the necessary precautions. However, one risk that is getting increasingly harder to eliminate is that of theft. If the company’s capacity is tight, this might force them to work with carriers they don’t have longstanding relationships with. This can open up the door for sophisticated theft. People who do this know a lot about the luxury goods supply chain. They are able to obtain the right credentials, or at least look like they did.

If they don’t opt for fraud, they will opt for hijacking. Different territories around the world report different criminal patterns. Shipping companies have to toe the line of providing the best and most effective security strategies for the shipping of high-value cargo without their surcharges skyrocketing. Through careful planning, identifying problem areas, and mitigating risks, a company can develop successful shipping strategies for high-value cargo.

Speed

One of the simplest ways of eliminating the risk of theft when it comes to high-value cargo is to expedite the entire shipping process. The more quickly it happens, the fewer opportunities there are for something to go wrong. Picking the right timing can both help with the speediness of the delivery as well as further lowering the risks. For example, it is advisable to avoid the shipping of luxury items during weekends and holidays. The company should also plan the route meticulously. In turn, it should require the drivers to check in with the dispatcher at regular intervals as well as report any detours.

Expedited shipping requires a lot of careful planning and ensuring the security of the entire supply chain. Properly preparing the shipments for transit, monitoring the security measures, and ensuring visibility of the shipment throughout the process are all important strategies to ensure the safety of high-value cargo.

Building trust

Unfortunate incidents are more likely to happen when dealing with new partners companies don’t have sufficient experience with. Creating lasting business relationships means staying informed and involved in every part of the shipping process. It is one way to ensure your high-value cargo arrives at its destination safely at the allotted time. Building the trust between a company and its partners requires a lot of work on the ground. This includes regular visits to the facilities, educating the personnel about security threats and how to spot them, and learning about the language, infrastructure, and common practices of new countries they do business in.

Security measures

Shipping strategies for high-value cargo usually involve several different security measures. Some of the common combinations are using box trailers or anti-slash curtains, dedicated trucks, carefully selecting and training carriers, and having fixed parking instructions. It is also important to ensure that the shipment is monitored at all points of transport. Visibility means following a shipment from the pick up to its final destination. Some of the tools used for this include barcoding, RFID tags, and GPS trackers.

Another one of the great strategies for preventing theft is hiding the fact that the shipment is anything worth stealing. Checking the regulations and working within their confines can help you make the documentation as generic as possible. As much as they can, shippers try to use generic terms or code instead of listing specific information about the shipper and consignee. This is particularly important to apply to the description of the high-value cargo.

Furthermore, it might even be a good idea to limit access to sensitive information within the shipping company itself. It is also important to require a sign-off of count and condition whenever the shipment changes hands.

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Neal Samson is a freelance writer with extensive working experience in the logistics industry. He mostly writes articles for companies like Tik Tok Moving and Storage and covers a variety of different topics related to logistics, shipping, and moving.

Transport Management

Quality Tips for Better Transport Management

With the world becoming more interconnected than ever, the pressure and expectations from the transport industry have increased exponentially. Everyone wants a smooth, safe, and secure journey whether they are moving for their jobs or to meet someone. Moreover, the expectations from the logistics companies have been increased too. 

Transportation management is no more about just moving freight at a lower cost. The technology has advanced and the structure of the supply chain is no more linear. Along with complex structures, many other factors are compelling shippers to improve their services in order to gain a competitive edge in the market. 

Increased demands:

Customers are looking for quick, efficient, and secure deliveries where they are constantly updated about the location of their products too. 

We cannot deny that in the context of supply chain operations,  logistics and transport management are interrelated. Transportation plays a major role right from manufacturing to the final delivery of the product. Better transport management can lead to successful order completion. There can be a different outcome if there is a flaw in the logistics or transport policies. Let us find out the things you can do in order to have a more efficient transport system network. Below, some tips to improve transportation networks are discussed.

Using Technology for Various Transport Operations

Technological advances in the communication and transport industry can help bring sustainability and adaptability in transportation networks. One of the most significant jobs belongs to the transport managers since they can encourage and advertise buying and adapting technologies that support cleaner and greener vehicles and eco-friendly technologies. Potential advantages include:

-Reduced emissions

-Lesser vehicle expenses 

-Less fuel utilization

Go for Automated Solutions

There is no simpler method to smooth out your transport management than to automate the whole process. An automated transportation network can simplify and streamline all operations. With automation, transport managers can constantly keep themselves updated and know:

-If the trucks are operating

-Real-time location of the fleet

-Their destination

ERP Framework:

One of the best approaches to examine and save money on working expenses is to embrace mechanized arrangements like an ERP framework. This product robotizes the whole cycle, guaranteeing each cycle runs rapidly and decisively so any blunders that lead to misfortunes can be limited. Moreover, the framework likewise empowers you to assess salary and costs for a specific period so you will have the option to plan your spending all the more carefully.

Big Data

Constant improvement in viable transportation the executives are currently regularly acknowledged by key transporters on account of the expanded utilization of technology and using air freight framework giving the capacity to obtain informative reports for meaningful business knowledge. This enormous development towards more utilization of the information to gather bits of knowledge made by measures inside innovation is known as “Big Data.” 

How Can Transport Software Help?

The latest transport management software can provide other facilities including:

-Keep a track of journeys 

-Organize delivery trips

-Monitor the usage of fuel per vehicle

-Allocate and track drivers 

-Analyze the collected data

Transit Applications

Develop transit applications to provide real-time information regarding the route and location of the vehicle. This can also help the drivers to adopt the best and the most efficient route and improve the overall services.

Analyze the Overall Performance

Time to time analysis of the performance is necessary. The initial phase in making economical arrangements is to completely investigate and understand everything related to the whole transportation including:

-Costs

-Policies

-Procedures

-Operations and activities

This gives the information to create noteworthy sustainable systems. Fleet managers can begin by exploring existing measurements and observing devices to evaluate the use of vehicles, patterns, and mileage. This will help spot all the pros and cons and new improvement open doors in various business zones.

Using Metrics

It is necessary to monitor the transportation footprint and network. One can do it by using metrics. With huge amounts of data, identification of key operating indicators can help you look for the right information. The management must have the ability to convert the data into useful information.

Identify the Needs and Priorities

The transport business is focussed on the need to satisfy the customer’s needs. A sustainable approach in transport management can lead to more profit and better performance.

To achieve this, the business policies and priorities must be understood thoroughly.  Business needs could incorporate operational data, for example:

-Where vehicles are based and how they are planned,

-Their journey

-Stacking 

-Strategy necessities

Sustainability

The pressure on companies to go for sustainable solutions is increasing. Ecological targets could incorporate carbon decrease, practicing air quality control, and improvement of the eco-management tracking. Sustainable measures can include:

-Driverless fleet

-Cleaner vehicles

-Inclusion of eco-friendly technologies

-E-cargo bikes

Self-Driving Trucks:

The innovation for self-driving trucks is still under the process of development and it needs to defeat certain hindrances, for example, improving driverless programming to make it ready to proficiently work on urban streets with heavy traffic. No one can deny that it’s one of the transportation future trends. Transportation organizations need to plan for upcoming innovation changes inside the business and begin including self-navigating management systems in their trucks that can learn from genuine drivers.

E-Scooters

According to reports, the popularity of scooters has increased and the number of bike users has increased exponentially. This indicates that citizens are also contributing to a greener environment.

Cargo e-bikes can reduce congestion and deliver faster. They are environmentally friendly as they are charged with battery and can be ridden on sidewalks. Amazon and UPS have already started delivering through them.

Don’t Miss Out on the Chances to Improve

A significant improvement can be brought by keeping a track of fuel expenses and its total consumption along with fulfilling all the arrangements and travel demands. Effective management of transportation is impossible without the worker’s awareness and his/her adherence to the company’s strategies. To promote a spirit of cooperation, teamwork, and commitment among the employees, the managers need to have:

-Continuous monitoring

-Improvements in the operation

-Acknowledgment of employee’s good performance

These improvements combined not only prove to be profitable for the companies but can also help them to have a stronger logistics network that can reduce:

-Accidents

-Traffic congestion

-Pollution

Scalable Business Operations

By going for scalable solutions, companies with larger networks can deal with demand and complexity issues. Joining all the separate supply chains can help view everything from a single lens. A centralized system can assist in analyzing the role of each department including customer service, marketing, and sales efficiently.

At the point when all the steps included are run manually and independently, it can become hard for the supervisor to recognize issues, screen progress, and take actions. That is why it is crucial to embrace a centralized structure that joins all the steps.

Appropriate Planning and Preparation

The first step towards effective transport management is to have proper planning. The reason to invest in planning is to achieve maximum output in a shorter amount of time. There are numerous components associated with this, from the acquisition of products and their storage to their final delivery. 

Other important things:

Other things that need to be taken care of are time, transportation, and expenses. Supply chain administrators must have the option to build up an extensive work process to guarantee the efficient running of operations. 

Unexpected Situations:

Though the planning is done to get the best possible results and efficient performance, yet the possibility of uncertain threats must not be overlooked. The best example of an uncertain situation can be taken from the recent pandemic which led to numerous supply chain problems all across the globe.  It is better to be prepared for surprising conditions, including:

-Bad weather

-Shortages 

-Delays 

-Damages to goods, etc.

Training and Guiding Employees

Your employees play an integral role in the growth of your business. No job should be considered trivial or unimportant. All the departments and all the workers including the drivers, delivery guys, warehouse workers must be given proper guidance and training for productive performance. 

Agility

It is the company’s job to improve their abilities and bring agility in the operations. They all must be well aware of the:

-Company’s rules

-Their jobs

-Technologies they are working with

A centralized HRM system can monitor the performance of the workers and help conduct training.

Streamline Your Warehouse Management

Transportation jobs can’t run easily without proper inventory management. The capacity of products and course of action of distribution centers influence the transportation cycle. In this manner, make sure that all things are organized.

Accessibility of Products:

Efficient transportation management takes into consideration the accessibility of materials and customer’s requirements, guaranteeing that those goods are ideally used and distributed. Moreover, the degree of consistency helps the transporter carrying out his job in a better way.  

-Accelerate the picking cycle

-Simplify forklift working

-Use barcode scanners to add more speed and accuracy

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Danielle Gregory is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for QAFILA. Danielle’s writing relates to a range of subjects such as logistics and IoT. Besides writing, she enjoys traveling, Cooking, and Riding

dangerous goods

Automation Trends and Challenges in Transporting Dangerous Goods

In just about every moving part of shipping logistics in the modern trading landscape, automation in some form or capacity is present or in the works to better support operations. From robotics to drones to autonomous vehicles, technology innovation is changing the way logistics operates, one bleep at a time. But when it comes to the transport of dangerous goods, there are factors present that create more of a danger when paired with innovation, creating more of a need for risk mitigation measures. The safety and compliance efforts going into transporting goods (particularly if they are dangerous goods) should always be just as important as the level of efficiency of the transportation process.

Drones, for example, continue making news headlines in logistics-focused transportation. Not only do drones provide an emissions-free, congestion-free and cost-effective alternative, but they also provide a new method of competitive positioning, according to Navigant Research. Pharmaceuticals have successfully been delivered utilizing this method of transportation in the last year. UPS is among the big names reinventing the way healthcare logistics is approached after the company announced its new drone logistics partnership with AmerisourceBergen, a pharmaceutical distributor.

“Delivery bots, RDVs and drones are set to displace millions of truck and van deliveries over the next decade, as they are far smaller, more flexible, lower in cost, and naturally suitable for automation and electrification,” says Ryan Citron, senior research analyst at Navigant Research, in a release earlier this year. “These technologies are expected to make last-mile logistics (LML) more efficient and sustainable, while also transforming local commerce and user experience through new business models such as on-demand store-hailing.”

While this is great news for some of the goods transported on a daily basis, drones are not exactly a realistic solution for the case of dangerous goods, at least for the time being in transportation and innovation regulation. That is when the conversation of autonomous vehicles comes in.

When transporting dangerous goods on wheels, what role does the autonomous vehicle fulfill? Let us start with what could go wrong with transporting dangerous goods. In an interesting evaluation of this process, Occupational Health and Safety released an in-depth article outlining the potential risks associated with ground transportation of dangerous goods. These risks included collisions and accidents, emergency response measures, loading and unloading, and the measures taken to properly secure such materials after loading for the ride. In all of these examples given by OHS, a physical driver is needed in some form or capacity, and not just any driver, but a trained hazmat employee. Without the properly trained employees or advances in technology to ensure compliance is met, a physical employee will need to be present for the majority of the “autonomous” vehicle experience, even if that employee isn’t the one doing the driving.

Another important thing to remember when merging technology and the transport of dangerous goods is their compatibility with other important–and vital–parts of the process. In a recent blog from Labelmaster, the concept of a solid data foundation is explained as a key part of a three-pillar system. The company’s VP of Software & Customer Success, Mario Sagastume, reiterates that when one of these pillars is off, the others follow suit.

Technology innovation does not always equal fancy robotics or massive automation takeovers. In some cases, it boils down to a clear set of data that provides a clear view of the big picture while identifying bottlenecks, risks and a lack of resources. It is important to consider the basics of technology before diving into complex solutions. After all, dangerous goods shipping is already a challenge. You want to simplify and support the process, not overcomplicate it. Solutions such as Labelmaster’s hazmat shipping software solution, DGIS, is an example of how data and technology work together for success in hazardous shipping processes.

Whether you’re transporting dangerous goods by sea, road, rail or air, one common element is ever-present: the human factor. This factor is identified in several studies as one of the main culprits of risk when evaluating potential issues in transporting dangerous goods. One specific study conducted by Jelizaveta Janno and Ott Koppel from Tallinn University of Technology, School of Engineering, Estonia, states that, “…the risk of DGT is strongly related to a human factor as all decisions, processes and procedures within a transportation chain are made by different parties involved.”

The authors explain that every part of the transportation process of these dangerous goods involve the human factor in some capacity, as seen with the previous point of autonomous vehicles and the required human presence for parts of the process.

This brings the conversation to the topic of adequate training. With all the technology, innovation and automation in the world, the human factor will almost always be present. This is not a bad thing, it is a wakeup call that technology cannot fix what thorough training, education and accountability can.

In another blog from Labelmaster, survey results from the annual Dangerous Goods Symposium revealed that the complex nature of hazmat and dangerous goods regulations, along with lack of robust education efforts, are causing headaches for a variety of shippers in the supply chain. One survey responder specifically cited the need for curriculum specific to the dangerous goods arena of supply-chain management.

Training and education (on regulations and operations) must be held to a higher standard for those filling positions in the supply chain, but especially for those handling dangerous goods at every level. Without this imperative part of the equation, technology and innovation efforts will be compromised. The investment must start with the employees and with leadership.

Before investing heavily in the next technology solution on the market, look carefully at the internal processes first. Take an honest inventory of how compliance is managed, how paperwork is processed, and the quality of employee communications. Recall the example from the experts at Labelmaster: Technology is a part of the bigger picture. When one pillar is impacted, they are all impacted.

vehicles

How Artificial Intelligence is Driving the Memory Market for Autonomous and Connected Vehicles

One of the important technologies that have emerged over the past few is that of artificial intelligence (AI). The technology is being utilized in various industries for making processes and operations simpler. Just like other industries, AI is also being widely utilized in the automotive industry for making vehicles safer and more secure. The technology is being utilized in infotainment systems that are now serving as personal assistants, aiding the driver by offering efficient navigational support, and responding to voice commands. This increasing utilization of AI is creating wide data storage capacity.

Autonomous and connected cars are generating large amounts of data, since they are extensively making use of electronic functions for providing greater efficiency, greater safety, driver assist capabilities, richer telemetric and entertainment functions, and communication between local networks and vehicles. Owing to these factors, the global memory market for autonomous and connected vehicles generated a revenue of $4,310.8 million in 2019 and is predicted to advance at a 23.9% CAGR during the forecast period (2020–2030), as per a report by P&S Intelligence. The major applications of the memory market in the automotive industry are telematics, navigation, and infotainment.

Out of these, the largest amount of data was generated by navigation features in the past, which can majorly be attributed to the surging adoption of these systems in vehicles. Navigation systems generate data related to alternative routes, shortest route, and traffic or checkpoints on the road, and need efficient storage mechanism. Apart from this, the telematics application is also predicted to make create demand for data storage capacity in the coming years, which is particularly because of the increasing preference for autonomous and connected vehicles. The system captures data via sensors, radars, and cameras.

Different types of memories in the automotive industry are NOT-AND (NAND) flash, dynamic random-access memory (DRAM), and static random-access memory (SRAM). Among all these, the demand for DRAM has been the highest up till now, owing to their effective storage of data and relatively low cost. Both commercial and passenger vehicles generate data, thereby creating a need for memory; however, the largest demand for memory was created by passenger cars in the past. This is because of the fact that passenger vehicles are produced more than commercial vehicles. Furthermore, new technologies are first implemented in passenger vehicles for testing purposes in the automotive industry.

In the past, North America emerged as the largest memory market for autonomous and connected vehicles, and the situation is predicted to be the same in the coming years as well. This can be ascribed to the presence of a large number of automotive technology companies and increasing sales of connected and autonomous vehicles in the region. Moreover, the disposable income in people in North America is high as well, owing to which, they are able to spend more on luxury vehicles that are equipped with advanced, connectivity, safety, and autonomous features.

Hence, the demand for memory in autonomous and connected vehicles is growing due to the increasing demand for safety features in vehicles.

Source: P&S Intelligence

cross-border

Supporting Global Supply Chain Strategy with Cross-Border Shipping

COVID-19 has shed light on the importance of shippers being prepared to work through unforeseen market conditions. This is especially true for cross-border shippers, whose businesses are reliant on multiple countries’ markets. To better prepare for these variations, businesses that rely on cross-border shipping should consider optimizing their supply chain strategies now by dedicating time to understand the cross-border options available to them. There are two primary choices: through-trailer and transloading.

What’s the difference?

Through-trailer shipping is the process of moving shipments in the origin trailer through border crossings. Whether exporting or importing, through-trailer shipments are handled on one side of the border with a carrier from the same country who has an interchange agreement. A different carrier from the other country handles the second part of the shipment.

To illustrate, a Mexico carrier with a trailer interchange agreement with a U.S. carrier picks up the freight. It’s taken to a secure yard where a border drayage driver transports the trailer across the border to the U.S. carrier’s yard for final delivery.

The shipment remains in the same trailer throughout the transport process, leading some shippers to believe the shipment seal is not broken. This is not necessarily true. U.S. and Mexico customs officials often break seals during border crossing inspections to verify product details.

Transloading is another option and is often considered more efficient. Transloading is the process of transferring shipments from one trailer to another at the border crossing. For example, a Mexico carrier picks up the freight and moves it to a secure yard at the border. A border drayage carrier moves the trailer across the border to a transloading facility. The facility then transfers the product to a U.S. carrier for final delivery.

The Benefits of Transloading

While both options have their pros and cons, transloading can offer some unique benefits that fall into three categories:

Additional Carrier Capacity: Transloading offers shippers additional carrier capacity because it enables them to access the full capacity of two independent carrier bases. Any U.S. carrier can pair with any Mexico carrier on a shipment, increasing available carrier options and granting additional flexibility. Through-trailer service only allows shippers to use carriers with an interchange agreement in place with a counterpart carrier on the other side of the border, limiting the capacity pool. With lessened demand not filling up truckloads, the ability to leverage the additional carrier capacity to identify which carriers’ trucks best match truckloads keeps products moving to meet consumer demand.

Lower Shipping Costs: Transloading grants access to additional capacity on both sides of the border, which means more, and potentially more efficient, carrier options. With transloading, shippers and logistics providers can identify carriers whose networks most closely align with theirs, resulting in more cost-effective rates. During a time when all departments are urged to cut costs where possible, the method with lower shipping costs benefits everyone involved.

Fewer Border Delays: The broad variety of carriers available to shippers makes it easier to source carriers on both sides of the border that best match the ideal pick-up and delivery time frames. Through-trailer shipments are dependent upon the limited capacity of the two carriers tied to an interchange agreement. In turn, this can lead to delays at borders and in overall shipments. Such delays are becoming more widespread because of the imbalance between northbound and southbound freight.

The Types of Freight to be Transloaded

Any specialized transloading facility located near a major border should have the ability to handle a variety of freight, although some types work better than others. Freight loaded on slip sheets or pallets typically fare best with transloading, especially consumer packaged goods, food and beverage, and raw materials. Transloading is also prevalent when shipping to warehouses with strict labeling and palletization requirements. Conversely, freight is better off using through-trailer shipping when it requires specialized loading, contains over-dimensional products, or includes flatbed shipments.

The needs of each shipper with a global supply chain strategy differ and come with unique challenges and requirements. It’s critical for each shipper to know their cross-border options and determine which will work best for their business. By being knowledgeable and prepared, shippers can more easily select which process to implement based on what is most important to their company at the time, whether that be price, shipping time, or carrier capacity.

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Kyle Toombs is the VP and Head of Mexico and Canada at Coyote Logistics

dachser peru

Here’s How Dachser Peru Continues Operations Despite the Pandemic

Dachser Peru recently announced the successful transportation of two 180-ton locomotives from the Port of Houston to the customer’s Lima facility, further supporting advancements in the region’s railroad infrastructure efforts. Amid the challenges presented by the heavy-lift cargo project, Dachser continues to demonstrate its methods of meticulous and successful planning to keeping customers satisfied while fostering economic growth across the globe. Global Trade had the opportunity to speak with Eduardo Rey, Managing Director at Dachser Peru, on this success and how Dachser is keeping operations going during a global pandemic through careful planning and the use of technology solutions.


Let’s talk about special measures that were taken to successfully transport the two 180-ton locomotives from Port of Houston to Lima, Peru. How did these measures differ from regular methods of transportation?

To move the two locomotives as we did was a special task, indeed. These special tasks require a very detailed plan if you want a successful story. What we did is we took not only one, but several measures in order to ensure success. First, it was the right selection of our service partners. That’s always a priority we require to perform our job well. We ensure to work with reliable companies that are not necessarily the cheapest one, but the ones who offer secure operations. For us, security, especially in these times, is most important.

Secondly, we executed a very detailed plan for the transport itself. We oversaw the big picture plan from the arrival of the locomotives into the port of Houston until the end delivery in a place in Lima, Peru. We were responsible for the whole service from start to finish. While executing this very detailed plan, we considered all the possible challenges that may occur in the process. We always have a plan B. For heavy cargos like this, logistics is not a paper issue. It requires in-depth involvement in the operations. Communication is key and coordination within the processes needs to be very well planned. That’s exactly what we did.

How about the role of technology in the transport of these locomotives? Do you see it changing future processes?

Well, technology in our times is something that needs to be on top of all our activities. Last generation’s equipment has been used for these transports, especially during the last phase of the loco transportation to the final destination in Callao in Peru. A last generation heavy hauler was used to move these units where they were directly discharged from the vessel into the units and transported through the streets of Callao.

There were a lot of air cables, electricity and phone cables by the streets that required us to take care of all the height concerns of the locomotives in order not to cross or to destroy it. Again, it was a very detailed plan. In the end, it arrived at the final destination and discharged over the railroad tracks using 400 cranes, last generation as well. Technology is always on top of our activities.

How is Dachser currently navigating logistics and limitations presented by the pandemic? Has anything really changed?

Dachser is one of the largest worldwide logistic providers. During the pandemic, we have been one of the most active companies around the world. Indeed, our own airfreight charters has been great support for several countries. In Peru, a clear demonstration has been the heavy cargos transport, of course. Despite the legal restrictions due to the pandemic and all the security and safety protocols we followed, we were able to proceed this way. Dachser is acting with full responsibility, following the security procedures and the country regulations in every country we operate in. We are in the logistics business and logistics never stops, even though most of us are working from home. Yes, there are indeed limitations, but nevertheless we are able to ensure a class A logistics service.

How is the company preparing to further support rail infrastructure projects in the future?

Well, having done this latest move demonstrates our full capabilities to organize logistics for appropriate cargoes. Dachser is ready for future opportunities, of course, not only in the rail industry, but for any other industry that supports the infrastructure development in Peru. In our country, we have an infrastructure deficit in roads, ports, airports, etc. Considering the worldwide Dachser network, we are fully prepared to support these developments. To give you an example, we got a call the other day from the ministry of health in Peru because they were trying to move some special equipment for oxygen production. There are so many hospitals that have a need for more oxygen. We are always alert for those kinds of requirements and opportunities.

Dachser is well known in the local market for the perishables export for all its logistics. For example, we have a very well-known and prepared staff of people giving 24/7 service for the exports of fruits and vegetables. In Peru, those products are the main non-traditional exports from the country. That means that our service portfolio is not only focused on one specific industry like projects or trains, but it is actively bringing the best quality for logistics services. Looking at what is most important for us which is our customers’ full satisfaction.

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Mr. Eduardo Rey was born in 1964 in Lima, Peru. He attended the University Ricardo Palma, where he studied architecture.

It was later, through his working experience, that he discovered his true vocation: the logistics industry.

He quickly understood that, in order to get a better sense of the work he was so passionate about, he needs to further his studies, so in 1987 he obtained a post-graduate degree in Foreign Trade and did other various courses related to air and cargo and in 1999 he completed an MBA.

Mr. Rey started his career within the industry as an Export Manager for a trading company that specialized in hydro-biological products. Ever since, he has been working in the forwarding business, for more than 27 years now and to today, he still feels as passionate about his work and the world of transportation, as he was when he started in this domain.

In 2003, he took on an offer to become the General Manager of a local Peruvian freight forwarder and soon was promoted to the role of Managing Director.

It was in 2016 when Mr. Rey was appointed as Managing Director for DACHSER Peru and he brought his extensive experience and deep knowledge of the industry both locally and globally to the company.

Mr. Rey appreciates his initial architectural studies and feels that they are helping him in his every day work and provide him with the organized mind of an architect, when dealing with the daily operations of the company and his team.

Electronic Manufacturing

Electronic Manufacturing Services Market is Set to Surpass USD 650 billion by 2026

According to a recent study from market research firm Global Market Insights, The Electronic Manufacturing Services Market is anticipated to witness exponential growth on account of rising investments and innovation in technologies like IoT & AI. Manufacturing companies are steadily adopting automation and smart manufacturing techniques to enhance their production capabilities, reduce operational costs and develop high-quality products.

Incorporation of industrial robots for smart production could enhance operational performance of the industrial unit and minimize human intervention. In November 2017, Asteelflash introduced a pilot program for its production facility in California for the creation of smart factory. The program would include installation of collaborative robots and connected equipment to increase productivity and generate real-time data.

Growing inclination towards smart home devices coupled with increasing integration of Internet of Things (IoT) & artificial intelligence (AI) solutions in consumer appliances may drive electronic manufacturers to adopt EMS. Considering these aspects, Global Market Insights, Inc., estimates that the electronic manufacturing services market could reach USD 650 billion by the year 2026.

The Electronic Manufacturing Services Market from the medical & healthcare application segment is poised to register a CAGR of over 4% through 2026. This appreciable growth rate is characterized mainly by the rapid digitalization of medical devices and surgical machinery. For instance, Bigfoot has developed a novel medical system, designed to offer continuous glucose monitoring capability and on-demand delivery of insulin to patients with varying diabetic conditions.

The solution includes a sensor-based wearable medical device, a data processing engine as well as an insulin dosage calculator for fully automated glucose management and delivery. Such endeavors are anticipated to significantly expedite the demand for EMS solutions in the medical domain, as the focus on delivering secure and safe treatments intensifies.

In addition to this, the growing adoption of real-time monitoring devices and systems in the healthcare sector is enhancing the need for effective PCB assembly through EMS, which is in turn likely to augment industry outlook over the projected timeframe. Key medtech entities such as Philips Healthcare, Fresenius Medical Care, Johnson & Johnson Medical Devices Companies, and GE Healthcare, among others are making collaborative efforts with EMS solution providers to facilitate cost-efficient production of advanced medical devices. For instance, Johnson & Johnson Medical Device Division partnered up with Jabil in 2018, for the manufacture of invasive surgical devices and orthopaedical devices. This joint effort not only enabled the companies to enhance medical device production but is also anticipated to help J&J achieve savings of nearly $600 million to $800 million by 2022.

The logistics segment held nearly 5% of the Electronics Manufacturing Services (EMS) industry share in 2019 and is expected to depict commendable growth at a 3% CAGR through 2026. This growth is attributed largely to the rising investment by EMS solution provides in logistics and transportation operations, in order to facilitate on-time deliveries and mitigate any potential service defects stemming from improper transportation.

The global Electronic Manufacturing Services Market consists of several key players offering logistics services, including SIIX Corporation, Kitron ASA, KENCO, and Syrma Technology, among others. Additionally, the ongoing trend of highly priced technical products has urged consumer electronics producers to engage third-party logistics services. This collaboration with contract manufactures will enable the companies to expand their global presence whilst ensuring quick and timely deliveries.

The consumer electronics sector, particularly in the APAC region is undergoing a major shift in manufacturing trends, mainly due to the current political tensions between China and the United States. Numerous electronics producers, including Samsung, have moved their operations bases to countries such as Vietnam and India, when the first visible fallouts from the tensions first came to light.

Moreover, lucrative policies implemented by the government of India, such as the Foreign Direct Investment initiative are providing foreign players ample opportunities to establish a manufacturing presence in the region. These favorable policies coupled with an abundance of cheap labor and raw material supply in the region will add impetus to electronic manufacturing services market expansion over the estimated timeline.

Key Companies covered in Electronic Manufacturing Services Market are Advanced Semiconductor Engineering Inc., Benchmark Electronics, Inc., Celestica Inc, Compal Electronics, Inc., Delta Group Electronics, Inc, Fabrinet, Flex Ltd, Foxconn Technology Group, Integrated Micro-Electronics, Inc., Inventec Corporation , Jabil Inc., KeyTronicEMS , Kimball Electronics, Inc. ,Plexus Corp., Quanta Computer, Sanmina Corporation, SIIX Corporation, Sparton Corporation, TPV Technology Limited, TT Electronics, Wistron Corporation

Source: https://www.gminsights.com/industry-analysis/electronic-manufacturing-services-ems-market