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Top 7 Logistics Challenges Facing the Industry

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3pls, Archives, Global Logistics, Global Trade Daily

Top 7 Logistics Challenges Facing the Industry

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Few industries have as much impact as logistics. In a way, it keeps the world economy going. Manufacturers, retailers, farmers, and even service providers all depend on it. But even though it plays a significant part, there are still plenty of logistics challenges facing the industry. Today, we’re talking about the seven of the biggest ones.

Now, there are numerous reasons why things got so tough in the last couple of years. Consumers’ expectations are shifting, and technology advances and new regulations are constantly coming out. On top of that, the COVID-19 pandemic didn’t make it easier.

Of course, all these issues bring an opportunity for growth and improvement. If you can find a way to overcome the challenges, you can be sure that you’ll capitalize on that. Here’s what you should pay attention to in the following year.

1. Cutting Transportation Costs

We can safely say that this is the single biggest problem in the industry at the moment. In some cases, the transportation costs come to reach 50% of the value of the product. Still, the demand for shipping companies is rising almost as fast as the fuel price. There’s plenty of work, but it seems that there’s not enough money to go around for everyone.

Many retailers and distributors are choosing to let just one or two shipping companies take care of their complete transport. Their reasoning is simple — if you’re shipping more with one carrier, you can get better rates. And while all that is true, you have to trust one company with your entire stock. Imagine what you’d have to go through if there’s a week’s delay.

2. Meeting Consumer Expectations for Visibility

Due to companies like Amazon and Walmart, customers nowadays want to know where their shipment is at any given moment, as well as when they can expect it to arrive. And things aren’t much different if we’re talking about transport visibility in B2B. As a matter of fact, the problem is even more complex.

To meet all of their demands, you need to improve the visibility across your entire supply chain. You should be able to track each of your shipments and maintain constant communication with the drivers. However, you also need a real-time alerts and notifications system. It allows fleet managers and drivers to make prompt decisions if any issues occur.

3. The Shortage of the Drivers

The next of the logistics challenges facing the industry that we want to talk about is driver shortages. These are demanding jobs, and it seems that at the moment, there just aren’t enough drivers to fulfill the needs of the industry. There are also these government regulations that force companies into being more strict about hiring their drivers.

Hence, the recruiting process is long and expensive, and it’ll stay like that for a while. There’s not much you can do but follow the rules. On the other hand, you can optimize the routes your drivers are following and stretch the capacity that way. It’ll give you at least some leverage.

4. Getting Sustainable

Carbon emission reduction is more important today than it ever was. The public wants to see environmentally-friendly practices in the private sector, so governments have to push it.

Although this isn’t bad on its own, it’s putting a lot of stress on logistics companies. And if you’re at the front of one, you must act quickly, but luckily there are plenty of things you can do to make your logistics more sustainable:

-Adopt route and load optimization

-Upgrade your engines

-Track and report emissions

-Use alternative fuels

Going down any of these paths won’t be cheap, but it’ll pay off in multiple ways.

5. Improving Cooperation With Your Partners and Suppliers

If you want your transport and logistics company to be successful, you must talk to your partners and suppliers and get to agreements that benefit all of you. They must be satisfied with your service, and you must be happy with theirs. It sounds like common sense, but at the end of 2021, we feel like we need to stress it.

You should all understand the state of the market and the moment and get on the same page. If you support and help each other now, many new improvement opportunities will open up in the future.

6. Adopting New Technologies

As we already mentioned, logistics companies already need to start adopting new and innovative technology solutions. They help you increase productivity and reduce costs in the long run. And we’re already at the stage when things like warehouse management systems are becoming non-negotiable.

However, with so many options available, it’s hard to pick the right one. Don’t rush it, and consider all your unique business operations before you make a decision.

7. Grappling With the New Way of Doing Business

It’s clear to all of us that the COVID-19 pandemic brought plenty of challenges to the game. However, some of them are here to stay, and some we didn’t even see yet. Changes are happening all across the industry, and it’s difficult to predict what will be the next big thing.

So, we’ll say that the final of the logistic challenges facing the industry is that you can’t be sure what to expect. And with that in mind, making your processes as flexible as they can be is the best way to go.

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Harper Mullins is a logistics specialist and a passionate freelance writer. At the moment, he’s working with Fit 2 Move on improving their storage and transport capabilities. He uses his free time to read every book he can get his hands on. 

e-Commerce: Last mile delivery india profit 8fig amazon logistics
Archives, Global Logistics, Global Trade Daily, Warehousing

7 Little Things to Improve an eCommerce Business

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An eCommerce business is more dependent upon the goodwill of its clientele than brick-and-mortar stores. It is very simple really. In an average real-world store, once a customer walks in they are more likely to purchase something. After all, they have made the effort of reaching the store and checking the products. Few people walk out of a physical store empty-handed. However, the same does not apply to an eCommerce outlet since they can simply close the link and go to another site.

Here is what you can do to make sure that this doesn’t happen frequently.

1. Downtime is off time

One of the best things about an eCommerce site is that it’s always available,  24/7. Now that more and more people are logging on to the net to buy products, you can take advantage of it by selling your wares even when you are fast asleep. However, that won’t happen if unfortunately, your site crashes repeatedly. If the site is offline, it is likely that your target audience won’t wait and simply move on to another site.

2. Slow sites don’t get many customers

The average attention span of an online buyer is around 3-4 seconds. If the site doesn’t open fast enough, it is likely your customers will simply move on in search of other options. And why not? After all, there are millions of other online eCommerce outlets out there. If you want your customer to stay with you, make sure your site is as fast as possible.

3. Make sure the CTA is always accessible

Why should your customers come to you instead of your competitors? It is because of your CTA. This is basically the ‘call to action’ that attracts people into the web marketing tunnel. If this call to action is not available or accessible, you will lose out on a lot of customers. Your shopping cart should also be easy to see so that the customer knows how to buy the product.

4. Get rid of slow-selling products

In every store, there are products that sell fast and those that don’t. Concentrate on the former and eliminate the latter entirely from your store. They will stop your cash flows and over the course of time, bring down your business. Of course, you don’t have to throw them away. You can offer them at a real sale (as opposed to one where retailers inflate prices and then cut them down to give an impression that they are on sale). Once the customers see that you are offering a brief opportunity to add real value to their lives, they will buy your slow-moving products and help you clean your shelves. This way, you will also be able to get your cash flows moving.

5. Make sure your site is mobile-friendly

The number of people shopping with their smartphones has increased dramatically in recent months, and there is no sign that the trend will be slowing down anytime soon. In fact, 79% of smartphone users have made an online purchase using this mode within the last six months! This means a site that is not mobile-friendly will lose all of that vast potential market. It is absolutely imperative that your site should be mobile-friendly so it can be easy to see even on a small screen. Apart from that, you should also work on your SEO (search engine optimization) techniques so your site will show up on organic searches on the search engines.

6. Add a live chat option

Live chats will help to gently nudge your customers towards the purchase decision by answering all of their questions. It is a great way to boost your conversion rates and keep your target market happy. Even if they don’t buy the product, the speed and excellence of your response will make them come again. At the very least, they will bookmark your site.

7. Consider using residential proxies

Using residential proxies for market research will give you great insight into the buying habits of your target audience. At the same time, they will allow you to remain incognito.

If you are really interested in increasing your sales and improving your eCommerce business, you must make sure there is no downtime or latency on your site. You should also use residential proxies to help you with your market research with regard to your target audience.

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Archives, Global Logistics, Trucking

Transportation Solutions for Retail Companies

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One of the most headache-inducing tasks in the retail sector is undoubtedly transport management. The increasing complexity of flows between suppliers, warehouses, stores, end customers and, of course, the inevitable returns. This can create a nightmare universe for those responsible for coordinating the transportation area, but, above all, it can open a gap through which the company’s profitability is lost surprisingly quickly.

It is normal for the retail industry to face daily fluctuations and changes in its transportation needs, and in these conditions, having an effective Transportation Management System (TMS) solution is what makes the difference between companies that can always track and manage the movement of their goods and those that continue to blindly trust that everything will go according to plan.

Transportation technology as a lever of value

As companies realize the importance of transportation and its direct impact on business results, TMS technology solutions are emerging as key tools to help improve the customer experience, increase the efficiency of their shipments to stores and reduce costs in their transportation network.

Download Our TMS Product Sheet

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A TMS facilitates route and load optimization, contract writing, order tracking and shipment notifications so that not only is uncertainty reduced, but decisions can be made and executed in real time based on available information.

Multi-collection, multi-delivery, optimization of resources in terms of volume, weight and optimal mileage are unavoidable needs for a retailer who wants to stay in the market and not be left behind. As if all these day-to-day difficulties were not enough, Covid-19 has introduced more variability, uncertainty and difficulties in planning or maintaining fixed routes, so the flexibility provided by a TMS now takes on vital importance.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

This originally appeared here. Republished with permission. 

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Archives, Global Logistics, Global Trade Daily, Warehousing

Creating an Accessible Warehouse for Workers with Disabilities

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The warehousing industry faces a growing labor shortage, yet many facilities are overlooking a ready and willing workforce. According to the Bureau of Labor Statistics, just 19.3% of people with disabilities are currently employed. At the same time, 877,400 people with disabilities are actively looking for work.

These workers could help warehouses become far more productive, but the facilities need to become more accessible first. Accessibility issues are common in the industry, and they stand in the way of hiring these eager employers. With that in mind, here are seven ways warehouses can become more accessible for those with disabilities.

Customize Mobile Computers

Mobile computers are some of the most important tools in the warehousing business. Despite how crucial they are to the job, many facilities may not be getting all they can out of them. Their default settings may limit their accessibility, leading to errors and inefficiencies.

For example, the text on these devices’ displays is often small, and scanning distances are short. This can make it difficult for workers with visual impairments to read correctly and lead to discomfort for those with restricted mobility. Using computers with longer scan distances and customizing them to show larger text will solve these issues.

Text-to-speech options, high-contrast displays and customizable color coding are other personalizations that could make these tools more helpful. When they’re easier to use for more workers, picking and related processes will accelerate.

Employ Robotic Assistance

Another way to make warehouses more accessible is to capitalize on automated systems. Some tasks, like picking items off high shelves or moving heavy materials, may be too physically strenuous for some workers. Automating them, at least in part, can open these tasks up to a broader workforce.

Musculoskeletal disorders (MSDs) account for one-third of all worker injuries and illnesses and often come from overexertion. If workers have a disability that limits their mobility, they’re at even higher risk of these injuries. Automating processes likely to cause MSDs would then make workplaces significantly safer and more efficient.

Automated guided vehicles or powered forklifts could also help workers with disabilities move materials throughout the warehouse. As an added benefit, these technologies make workflows faster as well as more accessible.

Rethink Shelving

Some facilities may need to reorganize or redesign their shelving systems. If items are too high or too low, workers may need to bend over or reach above their heads to retrieve them. While some exercises can improve flexibility by 25%, these actions can still be hazardous, especially for workers with disabilities.

The most frequently picked items should be between waist and chest height. That way, workers can reach them without overextending themselves. Shelves can use automated retrieval systems to grab higher-up items to make the most of vertical space. Alternatively, facilities could implement mezzanine racking.

Mobile shelves that shift to meet workers according to their specific needs could also help, though these may be more expensive.

Replace Stairs

Capitalizing on vertical space is one of the best ways to optimize warehouse layouts, but it poses a problem. Stairs are an obstacle for workers with some disabilities, so they limit who can access which items. As a result, they can hinder a facility’s productivity, keeping it from getting the most from the whole workforce.

Stairways are unavoidable, but warehouses can replace some of them with ramps. Some facilities may be able to install elevators as well. These options are more accessible, letting any worker reach higher-level items if necessary.

In addition to making warehouses more accessible, traveling up a ramp is often faster. They also allow for more vehicle traffic between levels, making automation more efficient.

Provide Wheelchair-Friendly Transportation

If warehouses have company vehicles for employees to use, they should consider wheelchair-friendly options. These cars are of limited utility if not every employee can drive them. Adding at least one wheelchair-friendly vehicle makes them more useful.

In today’s market, warehouses have plenty of options for wheelchair-friendly transportation, too. Companies can outfit most vehicles with hand controls, and multiple systems exist for helping wheelchair users into the driver’s seat.

Having an accessible company vehicle could also improve worker morale. When employees show they appreciate their workplace, they’ll be more productive as a result. Warehouses and their workers will benefit all around from these changes.

Enable Multiple Picking Methods

Picking is often one of the most inefficient processes in a warehouse. Similarly, it’s also one of the most frequently inaccessible for workers with disabilities. One of the ways to address this problem is to use multiple systems that account for everyone’s needs.

As mentioned earlier, some mobile computer displays can be challenging to read. Pick-to-light systems could replace text-based solutions, guiding workers to the correct items without reading a small, possibly low-contrast screen. These systems also typically improve pick rates by 30%-50%, so they offer multiple benefits.

Voice picking systems are another alternative. Offering voice, light and traditional systems will let workers use whichever works best for them. That way, no matter what conditions an employee deals with, they can work efficiently.

Keep Aisles Wide and Open

Many warehouses reduce their aisle space to accommodate more shelves. However, this can make facilities less accessible for workers with some disabilities. Keeping them open allows for smoother traffic and easier picking.

If aisles are too narrow, workers with wheelchairs may not be able to pass through if there’s another employee there. Similarly, those that need to use robotic assistance tools may not have room to maneuver. Making aisles wider lets any people and machinery pass through more easily, removing this barrier.

Wider aisles also let workers pick items off low or high shelves without taking up as much of the path. That way, more employees can reach objects without impeding the productivity of others.

An Accessible Warehouse Is a Productive One

When warehouses become more accessible, they can welcome more workers with disabilities. This benefits both parties, giving people a source of income while helping employers overcome persistent labor shortages. Facilities that already have disabled employees can help prevent injury and become more productive, too.

Changes like these let employees work more efficiently and safely. As a result, overall morale and productivity will improve. No matter what a warehouse’s workforce looks like now, improving accessibility could boost their efficiency.

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3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

Generix Supply Chain Solution on Gartner Magic Quadrant

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A global provider of SaaS-based supply chain solutions, Generix Group has been recognized for the third year in a row among providers of WMS solutions with its inclusion in the 2021 Magic Quadrant for Warehouse Management Systems. 

A closely-followed series of market research publications produced by Gartner, the Magic Quadrant or “Gartner MQ” uses an evaluation matrix to analyze the positioning of technology-based companies, rate technology vendors based on defined criteria, and display vendor strengths and weaknesses, according to Techopedia.

Used to evaluate a vendor before a specific technology product, service, or solution is purchased, the Gartner MQ evaluates each vendor on vision completeness and execution ability. Digging down deeper, it classifies each vendor into four different quadrants: leaders, challengers, visionaries, and niche players.

Magic Quadrant for WMS

An industry-standard resource for supply chain professionals wanting unbiased research on the key players for advanced WMS solutions, the Gartner Magic Quadrant for Warehouse Management Systems is compiled based on the research firm’s rigorous methodology. With this information at their fingertips, companies can make a solid evaluation of WMS vendors based on multiple different criteria.

“The WMS market remains vibrant with vendors continuing to innovate,” Gartner points out. “Progress is being made in adaptability and support for automation while cloud services grow faster than the overall market. Supply chain technology leaders should use this (Gartner MQ) research to understand the current state of the WMS market.”

Gartner Magic Quadrants offer visual snapshots, in-depth analyses, and actionable advice that provide insight into a market’s direction, maturity, and participants. Magic Quadrants compare vendors based on Gartner’s standard criteria and methodology. Each report comes with a graphic that depicts a market using a two-dimensional matrix that evaluates vendors based on their completeness of vision and ability to execute.

Generix WMS Systems 

With two distinct WMS solutions, Solochain WMS and Generix WMS, Generix Group provides full-featured WMS functionality, high visibility and trackability, highly configurable automation platforms, and interactive on-the-job workforce training. The modern and intuitive visual interface supports real-time decision-making and critical business needs, including fast-moving consumer goods (FMCG) as well as slow-moving consumer goods (SMCG) industries.

Working together with Locus Robotics, Generix recently rolled out automated warehouse solutions across Europe that include Locus’s innovative autonomous mobile robots (AMRs).

Furthermore, with ever-increasing changes in the industry, Generix can swiftly accommodate high growth needs from level-1 warehouse operations up to level 5, thus allowing hyper-growth for clients while digital transformation exponentially accelerates organic growth.

Solochain WMS is built on a scalable and flexible platform that powers its use as a warehouse management system, a manufacturing execution system, a transportation management system, and more. Highly configurable in terms of information layout, mobile workflow processes, reporting, and optimization rules, the WMS’ technological infrastructure is designed for maximum configuration flexibility and performance scalability.

Solochain WMS adapts and scales to meet a company’s needs all from within the same warehouse facility. It’s a highly flexible and adaptive warehouse management system that’s built for companies that need their supply chains to be nimble, efficient, and scaling, while ensuring execution excellence, compliance, and operational stability. And, for companies that perform product transformation (manufacturing, product kitting, etc.), Generix’s fully native Manufacturing Execution System (MES) can be enabled in WMS for complete inventory visibility throughout work-in-progress stages.

The Power of One  

Highlighting Generix’s strengths, Gartner says the company is expanding with a new entity in the Netherlands, a software engineering center in Romania, and its services center in Portugal. The company is also growing in North America with more than one-quarter of its business now outside its home geography.

“Solochain is well-suited to combination manufacturing and warehouse operations because it offers a seamlessly integrated WMS and MES,” Gartner says in its review. “This goes beyond simple transactional integration and addresses complexities of process integration between the warehouse and the shop floor.”

Gartner goes on to say that Generix Solochain offers powerful visual tools to facilitate, accelerate, and enhance implementations, and to provide ongoing support. It provides a model-driven architecture and back-office capabilities that document every client interaction in the application, facilitating upgrades.

According to one Gartner peerinsights user review, the company’s Solochain implementation was a multi-phased project. The first phase involved implementing the core WMS software and the second phase was the full integration with the firm’s existing ERP systems.

“The Solochain implementation team focused closely on our business process. Understanding the nature and rationale of our operations was the priority,” the company says. “Solochain offers many great best practice features out of the box. Understanding that functionality and relating it to our processes allowed us to redesign poorly performing operations and optimize others. We found the implementation team to be open-minded and very knowledgeable.”

Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Generix Group North America:

Solutions exist today that can ensure any warehouse or distribution center operates at peak efficiency, 24 hours a day, seven days a week. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

This article originally appeared here. Republished with permission.

Strategies
3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

7 Proven Strategies That Eliminate Downtime in the Supply Chain

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Eliminating downtime is a concern for any business, but supply chains face more pressure than most. Disruptions and delays will ripple throughout the industries that rely on them, potentially causing massive losses. By the same logic, reducing supply chain downtime likewise reduces it elsewhere.

While most organizations likely understand the importance of eliminating logistics downtime, the path to that end is less clear. Frequent delays showcase considerable room for improvement in the world’s supply chains.

Thankfully, several companies have also found effective strategies for eliminating these delays. Here are seven of these proven methods.

1. Optimized Warehouse Layouts

Poor warehouse arrangements are easy to overlook, but they’re a common source of supply chain delays. A poorly laid-out warehouse slows the picking process and makes it harder to track inventory levels. With less insight into their stock, companies are more likely to run into shortages they could’ve otherwise avoided.

Lack of stock visibility is all too common an issue, with 43% of small businesses not tracking inventory. As a result, the U.S. retail industry has an inventory accuracy rate of just 63%. Without an accurate picture of stock levels, companies can’t expect to order new items in time, leading to delays.

Better warehouse layouts improve inventory visibility, informing more accurate orders. One of the most important changes to make is implementing an electronic tracking solution, like a warehouse management system (WMS). These systems will help keep track of stock levels, eliminating downtime from inventory issues.

2. Predictive Maintenance

Equipment breakdowns are another one of the most common causes of unplanned downtime. While these situations are common and highly disruptive, they also have a fairly straightforward solution. Supply chains should implement predictive maintenance systems to keep all machinery in optimal condition.

Predictive maintenance analyzes equipment performance data to determine when it will need upkeep. While this comes with high upfront costs from the necessary equipment, the results are impressive. Operating off these predictions lets facilities prevent unplanned downtime from breakdowns and unnecessary repairs.

These benefits aren’t just theoretical, either. Studies show that predictive maintenance increases equipment availability by 5%-15% and reduces maintenance costs by up to 25%. Those savings across an entire supply chain add to a tremendous reduction in downtime.

3. Distributed Sourcing

Another common source of downtime in supply chains is delays or interruptions from suppliers. Many supply chains get parts or products from a single source, which keeps costs down but exacerbates these disruptions. When an unforeseen event occurs at these suppliers, everything else comes to a standstill.

For example, in 2017, a fire at an auto part supplier in the Czech Republic stopped production. An automaker who relied on this plant as its single supplier consequently couldn’t produce 20,000 vehicles in time. Supply chains must embrace distributed sourcing to avoid massive disruptions like this.

When a supply chain has multiple suppliers, a shortage at one won’t affect the entire operation. Other companies can make up for it, and if not, the overall loss still won’t be as significant.

4. Contingency Plans

Similarly, supply chains must also create contingency plans for likely or potentially disruptive events. Companies can’t afford to expect that no unexpected circumstances will ever arise. Having a backup plan for any possible emergencies reduces downtime from these situations and shortens the recovery period.

Some emergency response plans can be relatively simple, but companies should still standardize and record them. For example, if a vehicle dies, drivers can start it without jumper cables fairly easily if need be. However, if there’s no standard practice in place for this situation, they may waste time thinking of what to do and who to contact first.

Having a specific, codified contingency plan ensures workers can respond quickly to any eventuality. The faster they can adapt, the less likely an unforeseen event is to cause significant downtime.

5. Employee Training

Some strategies to eliminate downtime are relatively straightforward but can have a significant impact. Employee training is the perfect example. While a single worker’s mistakes may not seem to have a considerable effect on overall operations, most downtime comes from user error.

Mistakes in data entry can lead to incorrect inventory information, causing order-related shortages. Similarly, machine usage errors can end in equipment failure, leading to downtime for repairs. Employee errors can cause substantial disruption, but that also means better training can prevent many stoppages.

Periodic refresher training can ensure workers remember proper techniques and best practices. Supply chains can also look to employees themselves for information on how to improve the training process. Workers can report what types of onboarding experiences they wish they had, revealing how to improve.

6. Emphasizing Workplace Safety

On a similar note, improving workplace safety can help eliminate supply chain downtime, too. On-the-job injuries have a considerable impact on productivity, resulting in 105 million lost days in 2019 alone. That figure doesn’t include non-disabling injuries, either, which may still hinder worker efficiency, making downtime more likely.

If supply chains can reduce employee injuries, they’ll decrease these days of lost work. One of the most important parts of improving safety is better safety training. When employees know what risks they face and how to avoid them, they’ll pay more attention to workplace hazards.

Other steps like automating the most dangerous tasks and using data analytics to find where most injuries occur will also help. Even seemingly small improvements can have a substantial effect on reduced downtime.

7. Improving Staff Communication

Another minor adjustment that can have significant ramifications is communication. Supply chains should ensure employees understand the causes of downtime and how they affect profits. This communication can help build a spirit of shared responsibility, helping workers understand their impact on the business as a whole.

Improving communication also means making it easier for staff to suggest improvements. Supply chains should reward employees whose suggestions lead to meaningful reductions in overall downtime. This will encourage more workers to take an active role in ensuring operations run as smoothly as possible.

Supply Chains Must Actively Reduce Downtime

Reducing downtime in the supply chain can minimize disruptions across an entire industry. Similarly, if supply chains don’t eliminate downtime, they could cause massive, far-reaching damage.

These seven strategies represent proven methods for eliminating downtime. Supply chains that implement them can become far more resilient and efficient.

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Archives, Global Logistics, Software, Warehousing

WMS Software: Is a Warehouse Management System Worth the Cost?

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In the modern business world, software such as word processing programs, expense report software, payroll software, etc., continue to emerge. The usage of these applications is to increase and measure operations and productivity and conduct other business functions effectively.

Like those mentioned above, another software program that aids in controlling and managing a warehouse’s everyday operations is the warehouse management system (WMS). The WMS software directs inventory receipt and storage, improves order picking and shipping, and offers recommendations on inventory replenishment. A warehouse management system could be used as a standalone tool or as part of a wider Enterprise Resource Planning (ERP) framework.

Primarily, warehouse inventory management systems could only deliver vital functions, primarily on the storage location information. WMS functionality can now range from basic best practices in grab, load, and ship features to sophisticated programs facilitating improved interactions with material-handling devices and yard maintenance.

A warehouse management system helps to reduce the possibility of errors occurring when a product is shipped. The program can also help you fulfill orders on time and track ordered products inside the warehouse in real-time.

Additionally, a third-party service provider can host WMS in-house (on-premise) or online (via the cloud). The latter is becoming more popular as the business landscape shifts more towards digital. A cloud-based WMS is simple to scale, allowing you to pay only for the number of users and software technologies you need. And, as appealing as this all sounds, keep in mind the underlying costs and other factors when considering WMS.

Factors You Should Consider When Estimating WMS Costs

You must carefully evaluate the offerings of your prospective technology providers and each merchant’s capabilities in providing a WMS. It is recommended to obtain quotations for the various services included in the system and compare them to the intended budget for the WMS implementation. But most importantly, it is first necessary to understand that WMS prices vary according to an organization’s size, products, industry, and specific needs. The following are some of the essential factors to consider when determining the cost of a WMS:

The Number of Users

The total sum of users who will use the software is one of the most important factors to consider when calculating a WMS cost. Note how many administrative staff or warehouse workers will have to use the WMS as this will definitely affect the fees of the subscription. The majority of technology providers base the cost of WMS on the number of users—the more users, the more expensive it may be. To determine the cost of these licenses, multiply the base WMS subscription fee by the number of users.

Products and Industry

Other things to consider when assessing the expenses of a WMS include the types of items processed or distributed by a company, as well as the sector to which they belong. WMS cost quotations vary by the complexity of a product’s storage, manufacturing, and shipping. Furthermore, companies’ regulated goods by governmental bodies, such as medicines or cosmetics, may increase WMS costs. These factors influence prices because the technology provider considers the scope and extent of an organization’s processes to assist the software.

Hardware

Companies may also have to consider the costs of any hardware or equipment integrated into the system. Some third-party vendors may offer devices such as a barcode or tag printers, data and voice terminals, and so on – but at a higher initial cost. If an organization already has hardware and software, it can be modified to save money.

Other than these, it is also essential to consider the value of purchasing a WMS for organizations. The best WMS for any company is one that can meet its specific needs and requirements, allowing it to grow and become more effective in an ever-changing business world. Following this, there is more discussion about the benefits of using a WMS.

Benefits of a Warehouse Management System

A good WMS benefits both your business and your customers. Here are a few reasons why having a good WMS is advantageous:

Faster Inventory Turnover

Improving inventory management is the first step toward improving the efficiency of your warehouse and, as a result, your business. It means complete inventory control, from receipt to shipping, when we say inventory management. An effective WMS can significantly enhance inventory management and speed up inventory turnover. A WMS can assist cut lead times by minimizing inventory movement and improving record accuracy, lowering the demand for safety stock.

Enhanced Customer Service

A warehouse management system (WMS) reduces inventory documentation by letting the digital storage of reports, pick tickets, move tickets, and do invoices and packing. Product availability may be more accurately determined, offering customers more realistic delivery dates, reducing customer complaints, and improving overall customer service by expediting operations from the order through delivery.

Warehouse Personnel Reduced

A WMS system can greatly help your warehouse run better and more efficiently by standardizing inventory movements, picking procedures and inventory placements, and minimizing potential error rates and of course, training expenses. It can also aid in stock-flow optimization through the use of an automatic replenishment system.

Better Stock Control

Because of the nature of warehouses, the stock is constantly in motion. Goods are traveling in multiple directions, whether they are coming in, being stored, or leaving, making the process confusing. It is recommended that you keep track of which stock items have the highest turnover rate so that you can store them more efficiently and keep downtime to a minimum.

Optimized Warehouse Space

Ample storage space is essential for a successful warehousing operation. Correct warehouse organization can increase the number of goods stored; for example, using narrow-aisle equipment allows you to place racking closer together.

Improved Labor Productivity

A slow, inefficient, and unproductive warehousing operation is likely the result of several minor issues, such as outdated processes and a lack of employee motivation. It is critical to develop modern systems and techniques to help increase efficiency. A warehouse management system can assist with this.

Final Thoughts

A well-designed Warehouse Management System (WMS) may give several advantages to the company. These benefits include real-time inventory visibility, substantial cost reductions, decreased mistakes, increased productivity, and efficiency gains. Expenses connected with implementing and maintaining a WMS might vary based on which solution is appropriate for your company. Thus, it is critical to carefully analyze all options and costs associated with implementing and maintaining a new WMS.

A successful warehouse management system will require internal preparation for the company before implementation. It will need configuration to ensure that it includes all of the necessary functions for the business. It must ensure that all employees understand how to operate the new system entirely. Each of these processes will have its own set of expenses, which may vary based on the size and complexity of the project. Costs associated with configuration might rise if modifications surpass the extent of the project’s initial scope. It must have careful preparation and think on the part that could help to avoid incurring unnecessary expenses.

The warehouse management system is worth the cost for companies trying to enhance their warehouse management operations. Instead of relying on employees to do repetitive and simple activities, a WMS enables companies to leverage their employees’ skills, knowledge, and experience to grow and improve the company. In addition, the new warehouse management system may demand modifications to their existing warehouse. Companies may need to upgrade their Wi-Fi or install cabling for specific hardware charging stations, reorganize inventory placements, or take other essential actions depending on the WMS. It is to ensure that they can fully benefit from all of the features available. Therefore, it is crucial to remember that these alterations may result in higher initial investment costs for their system than planned.

absenteeism
Archives, Global Logistics, Global Trade Daily, Warehousing

How to Deal with Employee Absenteeism

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While on average an employee would miss 54 days of work in 2020, the logistics sector holds an unfortunate record: one of the highest annual increases in absenteeism, putting it just behind the health sector, i.e. 32% over one year. Beyond the exceptional sanitary situation, the supply chain is facing a chronic problem of workforce retention. What HR and organizational levers should be used? Here are a few ways to encourage employee commitment and well-being… and reduce absences.

In its annual survey based on data from 671 companies and more than 350,000 employees, Gras Savoye Willis Towers Waston confirms that absenteeism has increased sharply and steadily over the last five years, particularly in SMEs and ETIs. If the first containment has had an obvious impact, it is far from being the only explanatory factor. While the “transport and logistics” category now holds second place in the sectors most affected by this phenomenon, the study reminds us that the average cost of absenteeism in a company of 1,000 employees varies between 1.7 and 3.5 million USD per year. The weight of logistics activities in this loss of earnings is considerable. Faced with the growing risks of delays and shutdowns in the supply chain field due to lack of personnel, here are three steps for dealing with absenteeism.

 

1. Offer visibility to employees regarding the impact of their tasks on the entire operation

Just like remuneration or benefits offered by the company, the quest for meaningfulness is now well known as a major lever for commitment to the workplace. But how to motivate employees when the tasks they are entrusted with are by definition simple and repetitive? As a manager in the logistics sector, taking the time to regularly explain the stakes and the purpose of your job to each employee, and being able to give them concrete and personalized feedback on the impact of their work, is a way to give meaning to low-skilled logistics functions. Examples include employees knowing which customer profile is ultimately targeted, having details on the products handled and the marketing promise, knowing and understanding all the other technical steps upstream and downstream of his or her intervention. This type of information will help everyone understand his or her role in the supply chain, and therefore, empower teams individually and collectively.

Today, integrated HR tools and advanced warehouse management solutions offer a comprehensive view of current operations and can provide data and visibility to managers.

To learn more about technology that can help you optimize your workers’ performance and increase motivation, read our WMS – Decision Making Guide

2. Invest in technology and robotics to reduce drudgery

Implementing voice command devices for operators or equipping them with exoskeletons is a way to limit strenuous movements and loads carried, thus reducing the risk of musculoskeletal disorders. Some companies are even starting to equip themselves with ‘cobots’, these robotic collaborative assistants that help employees prepare orders and reduce their movements.

Used wisely, these tools have the dual benefit of reducing the risk of sick leave and work-related accidents while optimizing overall warehouse performance.

3. Incentivize employees through game-based management

Sometimes alone at their workstations, with no real opportunity to communicate with their colleagues for long hours, supply chain operators can legitimately feel isolated. Keeping them motivated is a daily challenge for managers and HR. Gamification is one way to encourage commitment, pride of belonging and team concentration. For example, it is a matter of organizing interactive performance contests, between peers or between teams, aiming at collecting a maximum of points to obtain symbolic or material rewards. Or measuring the quantity of plastic recycled by each person, with rewards at stake. These challenges can also encourage employees to follow professional training courses or to respond to co-optation campaigns. These initiatives contribute indirectly to the fight against dropping out of the workforce and absenteeism.

Generix Group North America helps distribution & manufacturing companies achieve operational excellence with their WMS & MES Supply chain solutions. We invite you to contact us to learn more.

This article originally appeared here. Republished with permission.

DTC
Archives, Global Logistics, Global Trade Daily

4 Ways DTC Brands Can Beat Supply Chain Logjams

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With the holidays fast approaching, global supply chain disruptions are threatening to cast a shadow over the peak shopping season for both brands and consumers. COVID-19 related shutdowns, production delays, rising materials costs, labor scarcity, shipping container shortages, and port congestion could all leave retailers short of products to sell, and consumers without gifts to give.

That’s troubling for both digital and traditional retailers who rely on final-quarter sales to drive their revenues. For direct-to-consumer merchants, though, it isn’t all bad news. Despite the challenges, direct-to-consumer merchants have a real opportunity to leverage their brand equity, weather the storm, and come out ahead by capitalizing on supply chain disruptions this holiday season.

That’s partly because DTC sellers have less risk exposure than marketplace merchants or real-world retailers. More than half of Amazon’s sellers, for instance, are now based in China, meaning the marketplace could be especially hard-hit. Besides global shipping issues, China is also facing widespread power shortages that could curtail manufacturing operations and leave Amazon facing tremendous shortfalls in inventory — both for Chinese sellers and for U.S. sellers that import Chinese-made products into Amazon’s FBA network.

Traditional physical retailers face similar challenges. Their geographical footprint requires a multiple-step distribution process, creating greater costs, slowing down delivery times, and heightening the potential impact of logistical logjams and labor shortages. Full-truckload shipping is especially tough, with drivers in such high demand that high schools are now training teenagers to drive 18-wheelers. Inventory shortages are also likely to be more noticeable in brick and mortar stores, where empty shelves will impact customer experience and could dissuade shoppers from entering stores in the first place.

By comparison, DTC dropshippers have a much simpler task. Like any ecommerce operation, DTC brands have significantly lower fixed operating costs than brick-and-mortar retailers. That’s especially significant when inventory runs low: if nobody has products to sell, it’s far better to be on the hook for small, manageable hosting costs than to be stuck paying a sky-high commercial lease.

Better yet, DTC brands don’t just have lower costs and less risk exposure — they also have more control over the customer experience. While marketplace sellers have little option other than to simply remove listings for out-of-stock products, and real-world retailers are left with bare shelves, DTC brands can respond more creatively — updating their websites to guide shoppers to available products, say, or reducing SKU count to create a more focused browsing experience.

This agility, combined with deeper brand equity and a more loyal fanbase, gives DTC brands a path to generating revenue and deepening customer relationships even in the face of product shortages. The best approach will vary from brand to brand, but a few key strategies include:

1. Transparency. 

Be honest with your customers. Many will have read about global supply chain issues, but they may not be aware of how acute they are or how they are impacting your brand. While consumers will get frustrated by marketplace sellers or real-world retailers that don’t have the products they’re seeking, they will tend to be more sympathetic toward DTC brands that communicate about the challenges they’re facing in purposeful and honest ways.

Start by reaching out via your customer email list — an asset most marketplace sellers and real-world retailers lack, or fail to actively maintain — and follow up with a posting on your website. Strike a forthcoming and optimistic tone, and avoid defensiveness, and you’ll find your transparency will increase your credibility with your customers.

2. Assortment 

Because DTC brands often have lower SKU counts than other retailers, the impact of a single product being out of stock can be disproportionately large. To combat this, merchants should leverage their brand equity and promote available product-adjacent and brand-extension items, such as branded merchandise or related products and accessories.

Taken to excess, this could dilute your brand — but executed tastefully and in a way that’s still aligned with your core brand, it can be an effective strategy. Bringing new temporary products to market requires some additional research and investment, but it’s also an opportunity to learn more about your customers, and potentially identify new SKUs to incorporate into your permanent product lineup.

3. Promotions

Given the likelihood of shortages and delays, try to drive engagement by running one or more promotions. Easy options include gift cards and credits, discounts for late delivery, and freebies such as accessories and merchandise. You could also offer free gift-wrapping or small personal touches such as notes of thanks to customers whose gifts arrive later than expected.

The key is to offset late delivery or other inconveniences with an elevated experience — something that marketplace merchants simply can’t offer, but that can be a great option for DTC brands shipping high-value, high-demand items.

4. Pricing 

When supply issues cause order volumes to drop or COGS to rise, the easiest way to make it up is by increasing prices. This is harder to do in marketplaces where competitors’ products are only a click away, or in brick and mortar settings where overhead is higher, but DTC  merchants with strong brand equity are better-placed to command higher prices this holiday season.

If you pursue this strategy, distribute increases across your best-selling items to reduce the effects of price elasticity, and be forthcoming about why prices are going up to preempt sticker shock and underscore your commitment to transparency. Alternatively, consider pursuing a more aggressive bundling and up-selling strategy, including tailored product recommendations and checkout up-selling, to increase AOV without increasing item price.

Control your destiny

Of course, how well these recommendations will work for you depends on your brand and your customer base. The most important thing, though, is to realize that as a direct-to-consumer brand you have far more control over your destiny than pure-play marketplace sellers and traditional retail brands.

If there was ever a time to use the strengths of the direct-to-consumer model to your advantage, it’s now. The global supply chain disruptions will undoubtedly affect sellers of all kinds this holiday season. That makes it all the more important to use every tool in your arsenal to face these challenges head on, and to leverage your brand equity to strengthen customer relationships and drive revenues in the months ahead.

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Remington Tonar is the Chief of Staff at Cart.com, the first end-to-end ecommerce solutions provider delivering a fully integrated and owned suite of software, expert services, and infrastructure to scale businesses online.

multimodal
Archives, Global Logistics, Global Trade Daily, International Trade

Leveraging International Multimodal Transportation in the Face of Globalization

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Transportation activity has expanded considerably in recent years with the globalization of trade. However, in the face of accelerating flows of goods and passengers, supply chain players have had to review their supply strategies, especially in terms of demand and regulatory standards. In this context, multimodal transport is a sensible solution to meet consumer needs and solve the problem of network saturation. With new methods that move lines internationally and stimulate innovation in the field of logistics and transportation, we won’t complain!

The new challenges of international transport

The supply chain today is subject to multiple factors to be considered to propose the right transportation solutions. But what are the points that must be respected to meet the needs of consumers around the world?

New consumption patterns

Consumer trends observed around the world have a very significant impact on logistics services: diversity of consumption habits according to countries and areas of residence, changes in customer expectations at the point of sale, and new delivery requirements.

The end of the “one size fits all” era

Contrary to what we had thought in the past, globalization is no longer synonymous with standardization. The era of “one size fits all” is over. Consumption patterns vary greatly from one country to another: it would be dangerous to ignore them.

Export companies must be able to meet local requirements as precisely as possible. The key to international success now lies in the customization of the offer.

Variable customer profiles according to culture

To be successful at the international level, brands must deal with different consumption patterns according to cultural habits. Regional specificities must be considered in companies’ commercial strategies.

Although it is shared in Europe and the United States, the e-commerce trend is taking shape, for example, in totally different ways in different countries, especially when it comes to services. In China, companies are confronted with the needs of two main categories of consumers: city dwellers, who want quality and services, and rural dwellers, who buy products in bulk at low prices.

In the promising African market, professionals expect a lot from the implementation of banking services and infrastructures to catch up. As for the Middle East and North Africa group, they are ideally located at the crossroads of international highways. On the other hand, the political and social changes currently taking place in Libya, Syria and Yemen bode well for the future.

Increasing urbanization and demand diversification

Sociologically, the global trend is towards urbanization. According to a UN study published in May 2018 in New York, the world’s population living in urban areas is expected to increase from 55% in 2018 to 70% in 2050. Therefore, consumer expectations and needs are inevitably changing. Customers now prefer smaller stores, which in turn also have less storage space, and are demanding more and more services such as home delivery or click and collect.

While convenience shopping is becoming increasingly common online, customers also want a different experience at the point of sale. As a result, brands that once focused on low prices and self-service must now question everything. They must also adapt to a growing middle class whose needs, homogeneous in terms of basic offerings and services provided, are diversifying into products that offer better margins.

One of the main challenges of global transportation is undoubtedly the issue of delivery times. A major problem for Supply Chain players, penalized by infrastructure capacity problems and difficulties in finding labor.

To learn more, consult our TMS Product Sheet here!

Transport infrastructure capacity: a major challenge

Regardless of the mode of transport they use, all carriers face network congestion problems. Therefore, new solutions remain to be invented to develop transport modes, especially in terms of capacity.

Globalization and its limitations

Shipping, which covers more than 90% of world trade, is still the cheapest mode of transport today. But it is less and less responsive to the challenges of today’s trade. The consequences? A capacity crisis causing many delays with unavoidable negative impacts.

And the increase in the capacity of container ships does not change this, as it also limits the possibilities of accommodating cargo ships in ports. There are few infrastructures capable of accommodating large vessels and with sufficient resources to load and unload them.

Always cost-effective and flexible, road transport is the essential option for door-to-door deliveries. But the shortage of truck drivers in Europe and North America is limiting its development.
Rail transport is also reaching its limits, with heterogeneous infrastructures in Europe generating a high rate of damage. In fact, a global trade route war is currently being waged, with significant financial investments.

How to overcome the problem of road transport?

Different approaches are being explored to address the problems encountered in road transportation.

Investing in autonomous vehicles

Autonomous vehicles are undoubtedly the future of transportation, provided that regulations are changed and that this new mode of transportation is accepted by the population. Although the technology is almost ready, there are still some bottlenecks. As proof: in the absence of benefiting from a regulatory framework for non-polluting vehicles, Deret electric trucks were recently blocked at the entrance to Paris during the first days of alternating traffic.

Evolution of rail transport

The railroad began its offensive with the commissioning of a new rail route between China and the Netherlands. The first train carrying cargo containers arrived at the port of Rotterdam in 2015. It took only 18 days to complete the journey, compared to 44 days by sea.

The problems of punctuality and tracking have yet to be solved, but the rail industries are testing new technologies to reduce these risks. Like the partnership between IDEO (a subsidiary of ID Logistics) and Lille-based start-up Everysens to produce connected wagons integrating IoT sensors on behalf of Danone Eaux.

Consider alternative solutions

Other interesting solutions have been developed to address specific issues. Take Steve Jobs, for example, who invested $50 million in buying air cargo space to ensure delivery of his new translucent blue iMacs by Christmas.

The revolution is underway. International companies cannot ignore it: to think globally, they must empower themselves to act locally, according to the context and characteristics of the market.

Multimodal transport: A response adapted to consumer needs?

Global trade also means international sourcing, distance from production sites and mass flows of goods. These are all challenges in terms of logistics. To meet these needs, actors in the supply chain are increasingly using multimodal transport, which has many advantages.

A bit of history

A small leap in time. In the 1960s, the advent of the container was a real revolution in transportation. Thanks to this invention, it was possible to transport goods all over the world without breaking the cargo. This could be done by sea, air, rail, road or water. In this context, multimodal transport was able to take off.

Today, although globalization and the large production centers located in Asia have accelerated the development of maritime transport of goods, alternative means of transport are still necessary to reach the end consumer. Thus, today, transport is mainly overseas (by ship or plane), but road transport is essential when approaching ports and for home deliveries.

So, it is not only maritime freight transport that has benefited from internationalization: road transport and other available means have managed to develop in its wake. But in addition to the complementarity between maritime and road transport, other forms of multimodality have emerged. Take the example of Switzerland and Austria, which have developed rail highways to transport complete road units by train to improve regularity and limit pollution.

The advantages of multimodal transport

As an alternative to 100% road transport of goods, multimodal transport combines at least two different modes of transport, from the departure of production units to their arrival as close as possible to the final consumer. The transfer takes place without load breakage since the same loading unit (the container) remains the same for the entire duration of the transport of the goods.

Its many advantages justify the enthusiasm it generates in the supply chain:

1. Improved delivery times.
2. Increased security of the goods.
3. Optimization of costs related to the transport of consumer goods.
4. Improved load capacity, which is higher than that of road transport.
5. Greater respect for the environment.

Reconciling urban logistics and quality of life

Last mile delivery, which represents about 20% of freight transport costs, is the current challenge for logistics professionals. New organizational schemes that respond to the commercial strategies of brands and meet the urban and ecological policies implemented in the territories have not yet been found.  Multimodal transport could once again play a key role in this area. Proof of this is the multiplication of multimodal transport experiences and the structuring of shared logistics platforms in urban areas.

Some examples of multimodal procurement

Several brands have already taken the next step by focusing on new multimodal transport solutions. Monoprix, for example, has chosen to combine rail and road freight transport for its supplies within Paris.

From the departure of the warehouses to a logistics platform based in Bercy, goods are first transported by rail. The products are then transported as close as possible to consumers by road: gas-powered trucks are used to supply the points of sale, in addition to electric vehicles for home deliveries.

Thanks to a partnership with XPO Logistics, Ports of Paris and Voies Navigables de France, the Franprix brand (Casino group) has entered the urban waterway shipping market.

Urban centers are multiplying

Logistics is not lagging in terms of multimodal sourcing: several initiatives underway in Lille, Saint-Etienne and Paris show a strong will to offer innovative solutions.

A multimodal urban distribution center opened in the port of Lille in 2015, for example, makes it possible to consolidate upstream transport and group deliveries in the city center. In the same spirit, the Saint-Etienne metropolitan area is a laboratory for urban delivery with the pooling of its goods distribution platform, transported to the city by a fleet of electric vehicles.

In Paris, the Chapelle International project is also proving to be a bold challenge in terms of urban logistics. Its objective: to reintroduce rail transport in the capital by building a 45,000 m2 logistics hotel on a former railway wasteland located at the Porte de la Chapelle in the 18th arrondissement.

Faced with the many challenges posed by the globalization of trade, multimodal transport now seems to be a solution of choice. Experiments are multiplying in this field, each one more innovative than the other. It remains to find the right level of regulation and innovative capacity for supply chain players to effectively implement the change.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

This article originally appeared here. Republished with permission.