Companies with extensive field operations are seeing the value of mobile technology for enterprise-wide use. In Zebra’s Future of Field Operations Vision Study, 97% of companies surveyed expect to expand mobile technology for enterprise use to replace paper-based systems.

This explosion in adoption was made possible by the spread of 4G/5G service and other emerging technologies, with 60% of companies embracing a mobile-first strategy to integrate and scale technology across the enterprise.

The interest in automating many transportation and logistics functions is driven by macro-level challenges facing many companies. Making each employee more effective with mobile technology relieves some of the pressure on staffing operations. Rising labor costs improve the ROI narrative for investment in technology.

At the same time, the demands on transportation and logistics companies are higher than ever. Operational visibility has never been more critical, with an unrelenting need to know where assets are located from the warehouse through delivery and back, with reverse logistics.

Each aspect of the operation is under pressure to improve process efficiency. Speed and timeliness are critical to creating fluid operations. Visibility improves asset utilization to support efficient drop-and-hook operations and helps avoid costly detention fees.

Transportation and Logistics Automation Solutions

Automation is a critical piece of the solution. With rugged mobile devices in the hands of drivers and the cab, paperwork becomes a thing of the past. Real-time visibility of information transforms operations from reactive to proactive, with insights into drivers, vehicles, and customers. Improved management drives efficiency and profitability while overcoming the challenging environment. Enterprise devices eliminate the complexity and risk of managing consumer-level personal devices.

By embracing automation and mobile devices, transportation and logistics managers have the real-time information they need to reduce the cost of delivery operations, get the most value out of assets and personnel, and improve the quality and consistency of their customer service.

5 WORKFLOWS TO AUTOMATE

Rugged mobile devices close the gap between front-line work and the back office, making supporting field workers easier and giving managers access to real-time information.

• Last-Mile Delivery. Improve visibility from pick-up to delivery to ensure the right package gets to the right person at the right time without errors.
• Proof of Delivery (POD). Create accurate chain of custody during pick-up and delivery with electronic signature capture and mobile receipts. Improve financial results with same-day invoicing and reduce damage claims with photographic proof of condition at delivery.
• Electronic Logging Device (ELD). Replace paper with real-time processes throughout the delivery network to reduce costs and improve service quality. Because the devices track mileage and hours logged, fleet managers automatically collect regulatory information, such as hours of service and fuel tax data.
• Routing. Improve dispatch and routing efficiencies with immediate visibility into vehicle location and routing within the context of network-wide operations. The stream of real-time location information allows dispatchers to better manage routes and ensure drivers arrive on time, with the least miles traveled.
• Fleet Management. Automate proactive maintenance and compliance checks for all assets. Improve fleet uptime with preventive services that keep trucks on the road.

Companies face two primary challenges in transitioning to increased ecommerce volumes: material handling equipment and labor.

An existing distribution center may have been designed to support pallet loads and store fulfillment, so the current handling systems are not optimized for parcels. Adapting inflexible equipment and a facility for parcel operations could be costly and time consuming. Some equipment simply can’t be unbolted and redesigned.

At the same time, companies are challenged with labor issues, including hiring, retention, and training. Warehouse labor pools are experiencing high levels of turnover, even with rising wages as an incentive for longer tenures. The rapid influx of new employees requires constant vigilance in training and management to ensure accuracy and product quality.

In addition, ecommerce is typically more labor-intensive than pallet operations. Staffing and training are ongoing obstacles to supporting ecommerce operations capable of meeting customer service expectations.

With the ongoing labor gap, warehouse mechanization and automation are essential for parcel shippers to achieve their business and service goals.

Automated Parcel Handling Solutions

Automated parcel solutions streamline the process of measuring the dimensions and weight of packages within a warehouse or fulfillment center. Automation employs AI and computer vision-based dimensioning technology that measures the dimensional information of all regular and irregularly shaped parcels in less than a second.

Integrate automated parcel solutions with label printers, automated label application, scales, barcode scanners, and various shipping software to streamline the entire shipping process.

Modular, scalable equipment parcel handling architecture allows the facility and operation to adapt to changing requirements for inbound and outbound processing. Growing parcel processing operations require flexible automation solutions designed to provide customizable options, such as sorting, dimensioning, labeling, barcode reading, OCR reading, and RFID capabilities. A flexible automation solution allows operators to adapt to existing facilities while supporting variable volume and market requirements.

Automated parcel solutions can help companies transform ecommerce fulfillment operations through greater efficiency and lower costs.

5 Reasons to Automate Parcel Handling

Automated parcel handling solutions help warehouse and distribution center operators boost speed and accuracy with lower labor costs to meet the demands of consumer buying habits.

1. Labor. Process more packages faster with fewer people. Let automation handle the details and spend less time training. Reduce the need for manual dimensioning, labeling, and routing.

2. Cost. Reduce the need for manual labor and handle higher volumes without incremental cost increases.

3. Accuracy. Measure parcel dimensions consistently and accurately for fewer errors and lower shipping costs. Real-time data can flow from the parcel handling system to the WMS, OMS, ERP, and other solutions.

4. Flexibility. The ability to handle different types and dimensions of parcels increases the warehouse’s capabilities to adapt to changing inventory and operations.

5. Customer service. Improve traceability and visibility of parcels and give customers more accurate shipping time estimates while reducing shipment handling time. There’s less chance of product damage with automated handling before the package enters the delivery stream.

Shippers in this situation may overlook the unique experience of a van line carrier, some of which are best known for moving household goods. Van line carriers have a wealth of experience moving everything from grandma’s grand piano to a multimillion-dollar CAT scanner.

Load bars, straps, pads, decking, liftgates, and pallet jacks are just some of the equipment that is standard for a van line specialty carrier. These carriers provide their customers both the option of delivering to a dock and the flexibility of delivering to locations that may require a liftgate to unload the cargo.

Medical, hospitality, electronics, retail, and telecommunications are industries that benefit from a specialty carrier.

Specialty carriers are experienced with white-glove services such as inside pickup and delivery, uncrating, equipment placement, and assembly.

Oversized cargo like generators, pressure vessels, and construction components also take specialized carriers. This type of oversized cargo often requires rigging expertise at the origin and destination. Permits, pilot cars, and other preparation for oversize loads may be necessary to move this type of shipment.

Retailers frequently utilize specialty carriers for seasonal rollouts, new construction, and store remodels that require inside deliveries performed with a liftgate. These van line carriers offer their customers the additional services of on-day and on-time deliveries and often after hours. Other additional services that may be required are uncrating, assembly of fixtures, placement according to a blueprint, and debris removal. These types of additional services are what set van line specialty carriers apart from the standard freight carriers.

Reverse logistics can sometimes be a challenge for any carrier. When most medical equipment leaves a shipper’s location, it is prepared for transport; however, the new equipment often replaces an existing piece of equipment that needs to be removed. This equipment is not packaged. Using their standard equipment, a van line carrier can protect the cargo using pads and straps to prevent damage during the return transport.

Shippers with specialized demands and complex logistical projects benefit from working with an experienced project management team to provide solutions with a single point of contact. A project manager will understand shippers’ time-sensitive needs and unique concerns and requirements, supported by industry-specific expertise and attention to detail.Precise timing and operational consistencyensure your projects are completed on schedule and according to plan.

How to Select a Specialty Carrier

Here are three types of questions shippers should consider as they select a project manager and carrier.

• Equipment Requirements. Is the cargo oversize that would require permits? Will it be loaded/unloaded somewhere other than a dock? Do you need strapping, dunning, pallet jacks, a lift gate, or other specialized gear?
• Specialized Handling Requirements. Will the shipment require inside pick up or delivery? White-glove uncrating and set up? Specialized material handling equipment? Labor-intensive manual unloading?
• Carrier Requirements. Does the carrier require hazmat certification or additional insurance requirements based on the value or risk of the load? Does the carrier have an adequate safety record?

Recommerce is a fast-growing service focused on reselling problem inventory to extract value from existing products and reduce the environmental impact of manufacturing and transportation.

Companies spend an estimated $100 billion a year on cross-border returns. Currently, cross-border sellers see a return rate of up to 30% on all online purchases; resulting in substantial costs, logistics and sustainability challenges.

The returns phenomenon is relatively new, and COVID has amplified the weaknesses of the reverse logistics flow because returns have not been treated as an opportunity. In the past, brands have thought that there is no money in returns, so they’ve tried to execute at the lowest possible cost, which typically gives the wrong people the wrong tools and generates ineffective targeting.

One of the most common sources of problem inventory comes in the form of ecommerce returns, particularly cross-border ecommerce returns. Compared to traditional methods of managing ecommerce returns, recommerce delivers benefits in commercial, environmental, and operational areas.

Recommerce reduces the timeframe in which returns are managed which, in turn, boosts cash flow. By comparison, the standard approach views returns as a cost center, rather than a revenue opportunity.

The recommerce approach reduces cross-border returns by utilizing in-country resale channels so businesses can drive down storage and freight charges.

Brands can emphasize their positive environmental impact with a recommerce strategy that emphasizes two critical aspects of sustainability—the longevity of a product and the carbon footprint it leaves behind. Recommerce gives products more than one life and more than one buyer. Some brands are encouraging secondary sales in recognition of growing consumer emphasis on sustainability.

The recent rise in recommerce is just beginning, and it is going to become an integral element of the retail market and the global supply chain.

Providing Quantifiable Financial Benefits

With the transformation across ecommerce and within the global supply chain, clear operational changes are required to address certain outdated practices. Retailers have trained consumers to expect fast and free delivery, but in reality, there’s no such thing as free.

• Operationally, customer practices were founded on the idea that there was no money in problem stock, and brands didn’t invest in it or understand—it was treated as a "rear-view mirror" problem. The process of cross-border returns has been founded on a lack of awareness, a lack of data, and a lack of process.
• An effective strategy helps retailers identify high-value items that should be consigned to recommerce, and which items justify a cross-border return. For example, in fashion and apparel, top-selling shirts are flown back to the point of origin, and lower-value items are left in the original location or moved to another marketplace where they can be resold at a lower price point.
• A recommerce solution builds operational proficiency because of the data it provides through a product grading system. Each item is assigned an attribute map, which provides consistent data that can be applied across different locations so retailers can compare the process and outcomes consistently, allowing for better business decision-making.

Companies are now in a position where they need to hedge against having too much inventory and working capital tied up, while seeking the necessary agility and resilience to manage multiple supply chains.

As businesses recover and re-imagine their world, leadership must ensure transparency, establish critical components, determine the origin of supply, and identify alternative sources.

Here are some key strategies for improving your supply chain in the current environment, as well as, preparing to adapt to the uncertainties ahead.

Discover opportunities with available inventory. Depending on the industry, assessing the inventory and value chain could provide additional sales opportunities for such items as spare parts or after-sale stock. Monetizing these assets could provide the necessary bridge to keep production and supply chain running efficiently.

Ensure employee and facility safety. In these uncertain times, safety is paramount. Prioritize the safety and well-being of your team to ensure a healthy workforce and foster loyalty. Continue supplying personal protective equipment (PPE), prioritize facility management, and develop health and safety contingency plans for both workforce and materials.

Assess capacity. Identify, estimate and secure your logistics capacity so your company is able to recognize and adapt to dynamic demand in real time.

Re-evaluate your technology stack. Your supply chain is only as good as the technology behind it. Whether you operate in B2C or B2B channels, supply chain technology must provide the highest level of visibility for inventory and facilities in today’s environment. The goal is to ultimately provide the best velocity to market. Does your supply chain technology offer seamless integration, branded tracking and real time data?

Embrace VUCA. Volatility, uncertainty, complexity and ambiguity—
these are the watchwords for 2020 and the future. Embrace and adapt to these new norms to foster a mindset of preparation, readiness and planning. The new norm is an irregular puzzle that the world is solving together. With the right team and technology, your company can embrace change, move forward and turn those problems into solutions.

If there is a positive to come out of the current scenario, it is that business leaders can take this opportunity to assess and improve every aspect of their organization.

4 Ways To Manage The Last Mile

The last mile is taking on greater importance as retailing moves to a higher level of ecommerce supported by parcel and heavy goods home delivery.

Unless shippers adopt new last mile perspectives, the complexity of the fulfillment network can drive up costs and hinder efficiency, creating unhappy consumers. Here are some things to think about to combat last mile issues for 2020 and beyond.

• Zone skipping: Reduce handling within parcel networks by combining shipments to the destination region. This allows individual shipments to be sent for delivery, rather than each package moving across several zones.
• Balance delivery options: Today’s tech-savvy consumers want a choice. Offer standard shipping for free, but add a premium for express shipping. For many consumers, free is a better attraction than fast, but offering choices allows consumers to control their own shipment journey. You can improve margins and serve customers at the level they’re willing to pay for.
• Precision packaging: Optimize box sizes to reduce excess dimensions and void fills for lower dimensional rates.
• Diversify the carrier base: Add smaller regionals, 3PLs and couriers to complement existing networks.

For small to mid-size companies that ship LTL several times a week, but don’t have an in-house transportation director and analysts on staff, managing a $10 million annual LTL spend can be challenging. There’s a tipping point of around two or more LTL shipments per day where managing LTL manually becomes overwhelming for existing staff.

Partnering with a 3PL that offers a comprehensive transportation management system can help your enterprise take control of LTL spend. A TMS geared toward mid-size shippers can be like a travel booking site where you can compare rates for carriers all at once. Rather than making phone calls to get quotes, the TMS pulls quotes from three carriers and allows the shipper to make an informed decision without a lot of back-and-forth with phone calls and emails.

Like an airline booking site, the user inputs origin, destination, and freight characteristics. The system connects to multiple LTL providers to retrieve quotes. The shipper can select the carrier, rate, and service level that fits their budget and shipping requirements.

The system automates the quote and booking process and allows for gathering and analyzing data about your transportation spend that isn’t very easy to manage with spreadsheets.

The data will help CFOs analyze the transportation spend, which can be a hidden expense. The TMS can shine a spotlight on transportation costs so that companies can be assured their money is being well spent. Larger companies may have the headcount for a transportation analytics staff. With a comprehensive TMS, smaller organizations can benefit from the same functionality.

In partnering with a 3PL, the shipper can use a DIY model or a DIFM, or "do it for me" model. The 3PL can handle the quote and booking process, or the shipper can manage that internally.

As the competitive landscape in global and domestic supply chains gets tougher every day, managing transportation spend is a powerful tool for maximizing a company’s financial health.

A TMS can help a company get a handle on the variables in the supply chain, and reduce the opportunity to make mistakes due to lack of information. Adopting a TMS to simplify the LTL quote and management process can reduce spend, improve service, and give management the information they need to manage for success.

7 Things a TMS Can Do for You

1. Get multiple rate quotes: Stop back-and-forth calls.
2. Book freight: Use a click instead of a phone call.
3. Print bills of lading: Automate document flow.
4. Print packing lists: Use a single source of information.
5. Track and trace: Get information instantly instead of dispatchers calling drivers.
6. Proof of delivery: Speed up payments with real-time documentation.
7. Freight claims and auditing: Analyze spend for misclassifications and mistakes.

One way to manage the complexity is by using an expedited carrier. With expedited service, it is not only the speed of the service but also the level of communication that is provided that can simplify the process of moving goods in either direction.

Expedited shipping isn’t just for emergencies anymore. Many companies use an expedite carrier simply to ensure precise delivery requirements are met, or premium communication is provided. Expedited shipping means less handling and greater oversight for each step of the shipment. Services are available in a range of truck sizes as well as air freight.

Crossing goods in and out of Mexico can be a confusing and sometimes frustrating ordeal, so it is essential to use experienced carriers that can manage the process in a timely fashion.

Utilizing carriers that voluntarily participate in the Customs Trade Partnership Against Terrorism (C-TPAT) program with U.S. Customs and Border Protection provides an advantage, as they are less likely to be examined at U.S. ports of entry.

Standard truck freight bound for Mexico typically involves multiple lengthy steps. Once all the correct documents are obtained, a freight forwarder works with a Mexican customs broker to prepare the shipment to cross the border. The forwarder inspects the load to ensure correct quantity and description, and completes customs documentation.

Once this has been completed, and the consignee pays the duties in Mexico, the forwarder hires a local drayage company. The drayage company then moves the shipment over the border and through customs clearance. Once at the dray yard in Mexico, it is common that another carrier then completes the shipment. It is not uncommon for this process to take days, or even weeks, should any bit of information be missing, or an inexperienced carrier is not well versed in remedying these situations.

This process is much more streamlined when using an expedite carrier, as many of them will already have direct relationships with Mexican customs brokers and are set up to have their shipments receive preferential treatment to be processed due to the time-critical nature of their usual shipments. Also, there is often not another carrier involved for the drayage, as the expedite carrier itself will cross and deliver the goods to their final destination in Mexico.

Before you ship to or from Mexico, ensure you are working with an experienced trans-border carrier that can manage the complexities involved with this important trade partner south of the border.

Know Your Mexican Customs Documents

Shippers must understand customs requirements for goods moving into Mexico.

• Pedimento de importación: The basic Mexican import/export document that must be completed for all commercial crossings.
• Prefile: The document required for entry into the United States from Mexico.
• Carta de Instrucciones: A form that contains all the information for all parties involved to be on the same page.
• Commercial invoice (in Spanish).
• Bill of lading
• Guarantee of payment of additional duties for undervalued goods (see Customs Valuation) if applicable.
• Documents demonstrating compliance with Mexican product safety and performance regulations if applicable.
• NAFTA Certificate of Origin for products qualifying as North American to receive preferential treatment. The exporter can complete this document, and it does not have to be validated or formalized.

Midwest logistics hubs are typically within a day’s drive of more than half the U.S. population and one-third of Canadian residents, as well as about half the U.S. manufacturing capacity. Perhaps as important as proximity is the relatively uncongested highways and airports in the Midwest compared to traditional coastal hubs.

These two factors help create a supply chain based on speed to the Midwest. With the implementation of electronic logging devices for long-haul truck drivers, proximity to distribution centers and customers is vital as well. With the ELD mandate, what were once one-day deliveries have turned into two-day runs. Using a distribution hub closer to your network will reduce transit times.

Midwest logistics hubs can include airfreight, intermodal, and truck deliveries. Even better, a few Midwest airports offer freight-only services that allow shipments to bypass mixed-used airports dealing with record levels of passenger traffic. Also, a robust Foreign Trade Zone program can help shippers, from fast fashion to retail to e-commerce, reduce their customs expenses and speed up processing.

For example, shippers have found that air cargo routed through Rickenbacker International Airport, part of the Columbus Regional Airport Authority, can be offloaded and trucked to Chicago faster than the freight can be offloaded and tendered for pickup at Chicago O’Hare.

An ocean shipper moved its logistics hub to the Midwest from the Port of New York/New Jersey because it could land containers at the Virginia International Terminal and transfer them via rail to the Midwest within 28 hours, compared to a seven to 10-day move from the East Coast.

By bypassing congested urban terminals and moving logistics closer to the customer base, shippers can take days out of their supply chain and reduce landed costs. A supply chain built on speed to the Midwest can create a market differentiator in any business.

3 Questions to Ask When Selecting a Midwest Logistics Hub

• 1. Proximity to supply chain and customer base? Reducing travel time and using highly efficient ports can take days out of your supply chain, increasing efficiency and reducing costs at each step.
• 2. A freight-only hub? Look for a logistics hub dedicated to serving multiple freight modes. At major passenger airports, freight has a lower priority, and space can be at a premium. A hub focused on freight understands the need for efficiency and has the infrastructure to support it.
• 3. A vision for growth? Look for a logistics hub that’s responding to the changing nature of logistics, driven by the e-commerce revolution. Many companies are shifting to smaller, more frequent moves compared to traditional pallet and trailer loads. A thriving hub will be investing in infrastructure to support the realities of today’s demanding supply chain.

It happened to one shipper who didn’t audit their freight payments for several years. It turns out one shipment went out air expedited, and somehow every customer order after that went out the same way. A lack of oversight cost the company tens of millions of dollars in unnecessary freight spend.

A transportation management system (TMS) with an integrated freight approval tool could stop these kinds of problems before they occur. The tool implements a decision tree for managers, with multiple levels of approval so that the decision can escalate to another level if a manager is not available for any reason. The tool can be set up to require approval over a specific dollar amount or for certain modes.

A freight approval tool adds management visibility to the front end of the process. An ongoing and thorough freight audit program can save a company millions on the backend. Industry experts estimate that, on average, companies pay 7% to 10% more in freight expenses than they should due to billing errors.

However, freight audit is about more than correcting errors. It will also empower your company with the data to identify weak spots and highlight paths to improve performance. The expedited shipping fiasco was spotted during a freight bill audit. Are there similar horror stories hiding in your billing data?

The freight audit piece should be part of a comprehensive TMS that incorporates a system of business rules and automates many route tasks. That way, managers can focus on managing exceptions and driving efficiencies rather than completing routine tasks. For example, tools like automated spot quoting and reverse auctions deliver a high level of productivity while ensuring the processes follow the established business rules such as carrier and routing selection. Tying the TMS into the ERP will ensure the purchase order information supports the shipment from managing quantities to shipment and delivery windows.

For freight bills created in the TMS, automated audit analyzes bills to ensure the BOL and proof of delivery match to approve automatic settlement. If there’s a discrepancy, the bills are flagged for resolution. Automation boosts efficiency and cuts costs with each transaction.

These tools are useful for managing inbound, outbound, and intra-company moves. Look for a tool that’s available for all modes that your organization uses—air, ocean, truckload, LTL, and parcel. Don’t segment your operations by mode.

Top 5 Freight Audit Targets

• Accessorials: Ensure that any accessorial services were actually received and any discounts applied.
• Base Rate: Ensure the bill starts with the correct rate, whether it’s a negotiated or spot market rate.
• Duplicates: Find double billing due to counting one shipment as two or using different options for invoice receipt and payment.
• Classification: Ensure that freight is assigned to its proper National Motor Freight Classification and charged accordingly. Misclassification can cost millions in overcharges.
• Taxes/Fees: Ensure all state and local taxes, as well as customs fees, tariffs, and international taxes are applied as appropriate.

Top 3 TMS Targets

• Spot Auction: Secure loads with an automated auction system that encourages market rates.
• Freight Approval: Avoid surprises with approval for specified modes or shipment costs.
• Analytics: Identify cost-effective carriers and lanes and make strategic decisions.

Do You Need Robotic Process Automation?

Similarly, technology-driven and customized TMS solutions are available for BCOs that provide speedy online bookings, handling documents, statutory compliances, and tracking in real time.

A large enterprise with multiple shipping locations may negotiate shipping contracts from each branch or with centralized purchasing supporting shipping to and from multiple locations. Without the proper tools, the cargo owner’s organization doesn’t have full visibility into the rates and routing to optimize each shipment. A third-party provider such as a freight forwarder or NVOCC won’t deliver the needed visibility either.

With a cloud-based logistics management platform, BCOs can streamline and optimize their global supply chain with greater visibility into each shipment. Capabilities such as contract and rate management, cargo tracking, and full transport management can transform a supply chain better than managing by spreadsheets.

Rate management systems compare rates by carrier and route options to highlight the optimum rates for each move. Cargo-tracking visibility manages on-time arrivals for cargoes to reduce costs and communicate revised ETAs throughout the supply chain. This is a vital function considering that on-time arrivals ranged from 65% to 76% in 2018. Improving on-time performance can deliver cost savings and service improvements across the enterprise.

Contract management functions can highlight areas of overlap in routing and disparities in rates. Shippers can see where contracted routes and volumes may overlap, or where there may be gaps to be filled.

With a cloud-based solution, employees can access the information they need, when they need it. Time zones are no longer a barrier, and information is not locked up in someone’s desktop PC. Also, cloud-based applications can be easily customized for users.

BCOs can take control of their ocean shipping rates and routing with an optimized platform that allows companies to share information internally. By using new technology tools, shippers can take control of their supply chains and manage rates and routes for better visibility and increased buying power.

Do You Need Robotic Process Automation?

Here are four questions shippers can ask themselves to understand the benefits of a solutions provider that offers data-driven decision making from automation.

• Do You Use Manual Input and Manipulation of Data? Manually managing data means you’re always behind the curve. Automating processes can free up resources for higher return activities.
• Is It Difficult to Share Information Within Your Organization and Outside Parties? Seamless digital data sharing will eliminate silos and improve efficiency for all parties in the supply chain.
• Do You Want More Automated Alerts for Cargo Tracking? You can stay up to the minute with cargo location with automatic alerts, and notify other parties of any changes at the same time. You can eliminate phone calls, faxes, and emails that waste time.
• Do You Desire More Visibility and Control of Your Supply Chain? Shippers can use technology tools to manage their ocean shipping on their own and eliminate bottlenecks in the process. With artificial intelligence and robotic process automation, you can choose the best routing options and rates for optimum results from your transportation spend.