August 2023 – Inbound Logistics https://www.inboundlogistics.com Thu, 14 Sep 2023 19:13:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.2 https://www.inboundlogistics.com/wp-content/uploads/cropped-favicon-32x32.png August 2023 – Inbound Logistics https://www.inboundlogistics.com 32 32 5 Ways to Design a Sustainable Supply Chain https://www.inboundlogistics.com/articles/5-ways-to-design-a-sustainable-supply-chain/ Thu, 24 Aug 2023 14:46:00 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37581 Companies are realizing that reducing greenhouse gas emissions can also help uncover hidden cost savings throughout the supply chain. A growing number of supply chain leaders are beginning to quantify sustainability metrics as part of strategic supply chain design decisions.

Planning with supply chain sustainability in mind delivers on the triple bottom line: people, profits, and the planet. Here are five elements to consider when designing a sustainable supply chain:

1. Start by measuring CO2 emissions.

The most common place companies start on their sustainability journey is by measuring and reducing carbon emissions. This element of sustainability is quantifiable across several supply chain processes—production, shipping, warehousing, and general operations.

2. Consider measuring water usage and other critical resources.

Best-in-class organizations are also evaluating their use of critical resources such as water, aluminum, steel, copper, and other commodities that for so long were considered unlimited in supply.

Supply chain design teams should be working with product design and manufacturing to quantify key resources used—beyond traditional bill of material items—and develop strategies to reduce, reuse, or find alternatives that are more sustainable.

3. Understand alternative power sources.

Understanding all available power sources can help drive more sustainable options.

For example, consider using wind or solar energy instead of electric to power office buildings, warehouses, and plants. Supply chain design teams can model investment requirements and the return on investment for these types of projects to understand what to take on and in what priority order.

4. Examine recycling flows and landfill impact.

To design a more sustainable supply chain, analyze recycling flows and contributions to landfills, from the cradle to the grave.

For example, Ingka Group, IKEA’s parent company, is committed to a circular business model. The company can now recycle every mattress disposed of in the Netherlands.

Forward and reverse supply chains can be part of the supply chain design workflow.

5. Quantify sustainability risk factors, including fair trade.

Supply chain design teams need to quantify how risky their supply chains are in terms of internal factors. They also need to understand and examine external risk factors, and identify alternative plans they can use as playbooks if/when disruptions occur.

With the right tools, any brand can begin to identify supply chain network changes that can start paying dividends in both sustainability and profitability right away.

]]> Companies are realizing that reducing greenhouse gas emissions can also help uncover hidden cost savings throughout the supply chain. A growing number of supply chain leaders are beginning to quantify sustainability metrics as part of strategic supply chain design decisions.

Planning with supply chain sustainability in mind delivers on the triple bottom line: people, profits, and the planet. Here are five elements to consider when designing a sustainable supply chain:

1. Start by measuring CO2 emissions.

The most common place companies start on their sustainability journey is by measuring and reducing carbon emissions. This element of sustainability is quantifiable across several supply chain processes—production, shipping, warehousing, and general operations.

2. Consider measuring water usage and other critical resources.

Best-in-class organizations are also evaluating their use of critical resources such as water, aluminum, steel, copper, and other commodities that for so long were considered unlimited in supply.

Supply chain design teams should be working with product design and manufacturing to quantify key resources used—beyond traditional bill of material items—and develop strategies to reduce, reuse, or find alternatives that are more sustainable.

3. Understand alternative power sources.

Understanding all available power sources can help drive more sustainable options.

For example, consider using wind or solar energy instead of electric to power office buildings, warehouses, and plants. Supply chain design teams can model investment requirements and the return on investment for these types of projects to understand what to take on and in what priority order.

4. Examine recycling flows and landfill impact.

To design a more sustainable supply chain, analyze recycling flows and contributions to landfills, from the cradle to the grave.

For example, Ingka Group, IKEA’s parent company, is committed to a circular business model. The company can now recycle every mattress disposed of in the Netherlands.

Forward and reverse supply chains can be part of the supply chain design workflow.

5. Quantify sustainability risk factors, including fair trade.

Supply chain design teams need to quantify how risky their supply chains are in terms of internal factors. They also need to understand and examine external risk factors, and identify alternative plans they can use as playbooks if/when disruptions occur.

With the right tools, any brand can begin to identify supply chain network changes that can start paying dividends in both sustainability and profitability right away.

]]> Transportation When Life is on the Line https://www.inboundlogistics.com/articles/transportation-when-life-is-on-the-line/ Thu, 24 Aug 2023 14:00:26 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37583 When my local coffee shop is out of “grande” cups, I deal with it. But what if I’m in a hospital and they are out of critical supplies or equipment? That’s unacceptable and it’s why having the right transportation partner to handle your shipments, sensitive or not, is critical to running your operation.

Medical suppliers regularly tell me that they need service, professionalism, and hands-on delivery. What they really want is an easy button. What does this mean? With sensitive deliveries, it is essential that trust, transparency, and open communication is established at the first stage in the process.

Imagine a driver showing up for your delivery late, wearing a T-shirt and cargo shorts, smoking a cigarette. Then the driver asks you to help unload. This is a classic case of you get what you pay for. If you push the cheapest price or fail to establish expectations up front, you won’t get a positive outcome.

Here’s where white-glove delivery service is crucial. Medical devices and supplies are delivered to hospitals, labs, urgent cares, and healthcare facilities. These are not typically warehouses with forklifts and supply chain personnel. And medical equipment often carries a value of several hundred thousand dollars.

Expedited carriers typically offer white-glove service for fragile or sensitive items that need special care and handling. Drivers may even help load and unload to prevent breakage and reduce damaged freight.

When scheduling pickup and/or delivery times as specific as a two-hour window, time-sensitive shipping ensures that goods are delivered under the required parameters and reduces the long-term costs associated with missed deadlines and lost products.

Shipments often require a pre-call to a contractor or installation crew. Timing is critical in order to execute, so that medical professionals can properly service their patients.

Here are three steps healthcare buyers investigating partnerships with logistics/supply chain providers should consider.

1. Know your partner and how they operate.

Vet providers and select those with experience handling medical devices and supplies. Go deeper during the discovery phase: Ask how they vet their drivers, carriers, and contracted partners. Insurance is important as well. Ask your providers how they process claims. The industry standard for cargo insurance is $100k. Is this enough to support your business?

2. Build an SOP for alignment.

Besides trust, another important piece of the discovery phase is working together to create a standard operating procedure (SOP) to support and meet business expectations.

Most companies are hyper-focused on minimizing cost, but they should evaluate their products and services appropriately so that they don’t have to cut corners and sacrifice service by partnering with the cheapest 3PL or carrier. Pick a provider that you trust and establish an SOP where all parties are aligned with pickup, in-transit, and delivery expectations.

3. Gain stakeholder buy-in during onboarding.

Bring all stakeholders into the onboarding process, and provide the opportunity for them to have candid conversations, express concerns, and set expectations. It is also important to have a health-check call at the 60-90 day mark to give all parties a chance to refine and improve a new partnership.

In the end, it’s more profitable to create a healthy balance of price with service and avoid additional back-end costs resulting from poor service.

]]> When my local coffee shop is out of “grande” cups, I deal with it. But what if I’m in a hospital and they are out of critical supplies or equipment? That’s unacceptable and it’s why having the right transportation partner to handle your shipments, sensitive or not, is critical to running your operation.

Medical suppliers regularly tell me that they need service, professionalism, and hands-on delivery. What they really want is an easy button. What does this mean? With sensitive deliveries, it is essential that trust, transparency, and open communication is established at the first stage in the process.

Imagine a driver showing up for your delivery late, wearing a T-shirt and cargo shorts, smoking a cigarette. Then the driver asks you to help unload. This is a classic case of you get what you pay for. If you push the cheapest price or fail to establish expectations up front, you won’t get a positive outcome.

Here’s where white-glove delivery service is crucial. Medical devices and supplies are delivered to hospitals, labs, urgent cares, and healthcare facilities. These are not typically warehouses with forklifts and supply chain personnel. And medical equipment often carries a value of several hundred thousand dollars.

Expedited carriers typically offer white-glove service for fragile or sensitive items that need special care and handling. Drivers may even help load and unload to prevent breakage and reduce damaged freight.

When scheduling pickup and/or delivery times as specific as a two-hour window, time-sensitive shipping ensures that goods are delivered under the required parameters and reduces the long-term costs associated with missed deadlines and lost products.

Shipments often require a pre-call to a contractor or installation crew. Timing is critical in order to execute, so that medical professionals can properly service their patients.

Here are three steps healthcare buyers investigating partnerships with logistics/supply chain providers should consider.

1. Know your partner and how they operate.

Vet providers and select those with experience handling medical devices and supplies. Go deeper during the discovery phase: Ask how they vet their drivers, carriers, and contracted partners. Insurance is important as well. Ask your providers how they process claims. The industry standard for cargo insurance is $100k. Is this enough to support your business?

2. Build an SOP for alignment.

Besides trust, another important piece of the discovery phase is working together to create a standard operating procedure (SOP) to support and meet business expectations.

Most companies are hyper-focused on minimizing cost, but they should evaluate their products and services appropriately so that they don’t have to cut corners and sacrifice service by partnering with the cheapest 3PL or carrier. Pick a provider that you trust and establish an SOP where all parties are aligned with pickup, in-transit, and delivery expectations.

3. Gain stakeholder buy-in during onboarding.

Bring all stakeholders into the onboarding process, and provide the opportunity for them to have candid conversations, express concerns, and set expectations. It is also important to have a health-check call at the 60-90 day mark to give all parties a chance to refine and improve a new partnership.

In the end, it’s more profitable to create a healthy balance of price with service and avoid additional back-end costs resulting from poor service.

]]> 10 Tips: Avoiding Compliance Pitfalls https://www.inboundlogistics.com/articles/avoiding-compliance-pitfalls/ Wed, 23 Aug 2023 04:00:31 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37586 1. Know what you’re shipping. Businesses often don’t realize they’re shipping DG. Know what goods are classified as dangerous—you might be surprised that items ranging from medical devices and cell phones to nail polish and perfume are regulated when being transported.

2. Maintain current safety data sheets. A product’s components, dimensions, and origins impact every process required for safe and compliant shipping, including packaging, labels, documentation, employee training, and more. Maintain current safety data sheets with complete and accurate information for all products you ship to help ensure you comply with all shipping regulations.

3. Keep up to date with regulations. Regulations can differ based on quantity, country, and transportation mode, and can continue to change. So don’t just assume that what was correct one year ago is correct today; stay up to date on the latest regulations to make the necessary changes to your shipping operations.

4. Automate compliance processes. Manual compliance processes are inefficient and can lead to errors that bring about delays, penalties and other interruptions. DG technology can automate and streamline the shipping process by producing documentation, validating shipments against the latest regulations, and more. You can then implement these repeatable and reliable processes across all locations, departments, and supply chain partners.

5. Don’t assume functionality. Many transportation and warehouse management systems and enterprise resource planning platforms lack the functionality required to fully address dangerous goods shipping processes. Don’t assume your existing systems have the compliance capabilities you need. You may need additional DG-specific software that can often integrate into your existing platforms.

6. Be aware of carrier policy changes. Carriers can impose tighter restrictions than what regulations require, or they can decline shipments altogether. Even if you’re 100% in compliance regarding training, paperwork, and packaging, individual carriers still may not accept your shipment.

7. Invest in quality training. Ensure all employees involved in shipping and handling DG receive the required training in accordance with 49 CFR 172.704. Online interactive and 3D training can help them digest complicated regulations in a more convenient and engaging format. And know where their training records are—that’s the first thing regulators request during an audit.

8. Know what ships with your goods. Compliance doesn’t pertain just to your company’s products; it also pertains to the items shipped with them. This encompasses items such as those used to regulate temperature or track shipments, including dry ice and monitors containing lithium batteries. These are regulated goods themselves and have their own rules and restrictions.

9. Don’t forget about returns. Return shipments must comply with the same hazmat rules as items shipped to consumers, and it’s the shipper’s responsibility to ensure compliance. Establish standardized returns management processes, such as providing compliant packaging with the required labels and markings, shipping all returns via ground transportation, and training customer service representatives to answer customers’ questions about return shipments.

10. Consider partnering with an expert. Shipping DG is complicated. Partner with an industry expert to help make sense of the regulations and implement the necessary processes and systems to ensure compliance across your supply chain.

SOURCE: Brian Beetz, Director of Regulatory Affairs and Corporate Responsibility, Labelmaster

]]> 1. Know what you’re shipping. Businesses often don’t realize they’re shipping DG. Know what goods are classified as dangerous—you might be surprised that items ranging from medical devices and cell phones to nail polish and perfume are regulated when being transported.

2. Maintain current safety data sheets. A product’s components, dimensions, and origins impact every process required for safe and compliant shipping, including packaging, labels, documentation, employee training, and more. Maintain current safety data sheets with complete and accurate information for all products you ship to help ensure you comply with all shipping regulations.

3. Keep up to date with regulations. Regulations can differ based on quantity, country, and transportation mode, and can continue to change. So don’t just assume that what was correct one year ago is correct today; stay up to date on the latest regulations to make the necessary changes to your shipping operations.

4. Automate compliance processes. Manual compliance processes are inefficient and can lead to errors that bring about delays, penalties and other interruptions. DG technology can automate and streamline the shipping process by producing documentation, validating shipments against the latest regulations, and more. You can then implement these repeatable and reliable processes across all locations, departments, and supply chain partners.

5. Don’t assume functionality. Many transportation and warehouse management systems and enterprise resource planning platforms lack the functionality required to fully address dangerous goods shipping processes. Don’t assume your existing systems have the compliance capabilities you need. You may need additional DG-specific software that can often integrate into your existing platforms.

6. Be aware of carrier policy changes. Carriers can impose tighter restrictions than what regulations require, or they can decline shipments altogether. Even if you’re 100% in compliance regarding training, paperwork, and packaging, individual carriers still may not accept your shipment.

7. Invest in quality training. Ensure all employees involved in shipping and handling DG receive the required training in accordance with 49 CFR 172.704. Online interactive and 3D training can help them digest complicated regulations in a more convenient and engaging format. And know where their training records are—that’s the first thing regulators request during an audit.

8. Know what ships with your goods. Compliance doesn’t pertain just to your company’s products; it also pertains to the items shipped with them. This encompasses items such as those used to regulate temperature or track shipments, including dry ice and monitors containing lithium batteries. These are regulated goods themselves and have their own rules and restrictions.

9. Don’t forget about returns. Return shipments must comply with the same hazmat rules as items shipped to consumers, and it’s the shipper’s responsibility to ensure compliance. Establish standardized returns management processes, such as providing compliant packaging with the required labels and markings, shipping all returns via ground transportation, and training customer service representatives to answer customers’ questions about return shipments.

10. Consider partnering with an expert. Shipping DG is complicated. Partner with an industry expert to help make sense of the regulations and implement the necessary processes and systems to ensure compliance across your supply chain.

SOURCE: Brian Beetz, Director of Regulatory Affairs and Corporate Responsibility, Labelmaster

]]> How to Counter a Hazy Warehouse Employment Outlook https://www.inboundlogistics.com/articles/how-to-counter-a-hazy-warehouse-employment-outlook/ Tue, 22 Aug 2023 12:49:03 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37591 The first solution many supply chain leaders look at is money. That’s a fantastic start, but salary alone likely isn’t enough to keep employees for the long term. Warehouse managers must also consider the intangible benefits of the role. A few areas to start:

Get off on the right foot.

No supply chain leader considers their team “cogs in a machine.” But it’s understandable how, if not onboarded properly, employees could get that impression—sent immediately into a massive facility to complete repetitive tasks over long hours. Warehouses must dispel that notion from the minute new team members walk in the door.

Kenco launched the “First Year Experience” to immediately connect employees to their purpose within the warehouse. This comprehensive onboarding process fosters a sense of purpose among new employees, helping them understand how their job is critical to keeping our warehouses operating. By engaging employees early, warehouse managers can prevent employee feelings of being alone on an island.

Recognize the whole person.

Sometimes it seem as if the boundaries between our work life and personal life blur. Warehouses must not only recognize these boundaries, but also support their employees outside the facility.

Shift flexibility can be a good place to start a benefits initiative. Just because established shifts work well for your warehouse doesn’t mean your employees’ calendars fit neatly into those 8-hour windows. Leaving some wiggle room in the calendar can open up recruitment to a whole range of potential employees.

Potential employees also want an employer who will further their professional development. Tuition assistance or reimbursement have become popular options in the past decade, with many companies now offering students support. A tuition program is ultimately a win-win—the employee feels valued, while the knowledge they gain can help drive process improvement, and even prepare the employee for a management role.

Lend a helping hand.

For those who aren’t deeply familiar with warehouse operations, stories of repetitive stress injuries and harsh work environments can be a turnoff. But automation has made picking and packing tasks safer and far less strenuous.

Take telematics and location-tracking tools. Telematics devices allow fleet managers to monitor how material handling equipment is operated throughout the warehouse—ensuring unlicensed employees can’t drive vehicles, or malfunctioning vehicles are detected and kept off the warehouse floor. Real-time location services can set virtual “perimeters” to ensure no heavy equipment ends up in employees’ paths.

Bottom line: an investment in automation is an investment in labor recruitment and retention efforts.

Become the warehouse employees flock to.

By introducing benefits that support employees’ lives outside the warehouse, and technology that simplifies their job inside the warehouse, you’ll find that your employees are far more satisfied and, in turn, your hiring efforts are far more sustainable.

]]> The first solution many supply chain leaders look at is money. That’s a fantastic start, but salary alone likely isn’t enough to keep employees for the long term. Warehouse managers must also consider the intangible benefits of the role. A few areas to start:

Get off on the right foot.

No supply chain leader considers their team “cogs in a machine.” But it’s understandable how, if not onboarded properly, employees could get that impression—sent immediately into a massive facility to complete repetitive tasks over long hours. Warehouses must dispel that notion from the minute new team members walk in the door.

Kenco launched the “First Year Experience” to immediately connect employees to their purpose within the warehouse. This comprehensive onboarding process fosters a sense of purpose among new employees, helping them understand how their job is critical to keeping our warehouses operating. By engaging employees early, warehouse managers can prevent employee feelings of being alone on an island.

Recognize the whole person.

Sometimes it seem as if the boundaries between our work life and personal life blur. Warehouses must not only recognize these boundaries, but also support their employees outside the facility.

Shift flexibility can be a good place to start a benefits initiative. Just because established shifts work well for your warehouse doesn’t mean your employees’ calendars fit neatly into those 8-hour windows. Leaving some wiggle room in the calendar can open up recruitment to a whole range of potential employees.

Potential employees also want an employer who will further their professional development. Tuition assistance or reimbursement have become popular options in the past decade, with many companies now offering students support. A tuition program is ultimately a win-win—the employee feels valued, while the knowledge they gain can help drive process improvement, and even prepare the employee for a management role.

Lend a helping hand.

For those who aren’t deeply familiar with warehouse operations, stories of repetitive stress injuries and harsh work environments can be a turnoff. But automation has made picking and packing tasks safer and far less strenuous.

Take telematics and location-tracking tools. Telematics devices allow fleet managers to monitor how material handling equipment is operated throughout the warehouse—ensuring unlicensed employees can’t drive vehicles, or malfunctioning vehicles are detected and kept off the warehouse floor. Real-time location services can set virtual “perimeters” to ensure no heavy equipment ends up in employees’ paths.

Bottom line: an investment in automation is an investment in labor recruitment and retention efforts.

Become the warehouse employees flock to.

By introducing benefits that support employees’ lives outside the warehouse, and technology that simplifies their job inside the warehouse, you’ll find that your employees are far more satisfied and, in turn, your hiring efforts are far more sustainable.

]]> GOOD QUESTION: What’s Your Controversial Take on a Supply Chain Issue? https://www.inboundlogistics.com/articles/good-question-whats-your-controversial-take-on-a-supply-chain-issue/ Mon, 21 Aug 2023 01:15:25 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37625

The current global supply chain is unsustainable. A sustainable model embeds environmental, social, and governance best practices into how raw materials are sourced, turned into products, and delivered to market. Global supply chains have been focused on achieving financial efficiency. The result is messy and fragile supply chain systems.

–Abishek Bhat
Vice President, Business Development
Trigent Software

Forced standards, even if imperfect, make more sense. While historically standards have been determined by the free market (VHS vs. Betamax, etc.), the pandemic demonstrated alarming gaps in all supply chains. We need to act quickly and we do not have enough time for the free market to crown a winner.

–Michael Johnson
CEO
Metrc

Manufacturers and logistics providers face a crucial choice: They must either (1) engage in candid discussions with their economic development and governmental leaders to invest in the supply chain workforce or (2) embrace an accelerated adoption of automation. The challenges in the supply chain workforce cannot be left unattended.

–Craig Turner
President
World Trade Center Buffalo Niagara

Nearshoring will not be around for the long term. It’s a short-term reaction to turmoil in overseas sourcing points. In the long term, raw materials will always be sourced from wherever demand can be met at the lowest cost.

–Eric Elter
Director
Information and Technology Services
KDL Logistics

Things would run smoother if more governing organizations intervened when major bottlenecks occurred. I don’t believe any single company or union should have the power to control a process when it hinders the entire supply chain.

–Eric Vasquez
Owner
Veterans Logistics Group

The Russian invasion of Ukraine and subsequent war have been tipping points in weakening global supply chains—but climate change has been undermining their resilience since long before that. War might get resolved, but climate change is still the biggest long-term threat to supply chains and is excluded from decision-making.

–Himanshu Gupta
CEO and Co-Founder
ClimateAI

In the next 10 years we will see a heavy unionization of roles due to automation and artificial intelligence standards becoming the norm. Based on the impact of these technologies, I see governments enacting laws to ensure the future of work is sustainable, equitable, and beneficial for all mankind.

–Ann Marie Jonkman
PMP, Senior Director, Global Industry Strategies
Blue Yonder

The billions of dollars spent by startups on technology with the intent to completely automate the brokerage industry won’t prove to yield a high return on investment. The billions of dollars spent by large incumbent brokerages on technology to create efficiencies and better serve their clients and carriers is where real value will be created in the industry.

–Zach Jecklin
Chief Information Officer
Echo Global Logistics

Nearshoring or ally-shoring will prove difficult if not impossible. As much as companies would like to decouple from certain countries, there are powerful reasons (manufacturing expertise and scale) why they will simply have to deal with sourcing from higher-risk countries.

–Tony Pelli
Practice Director, Security and Resilience
BSI

We need to take a hard look at port disruptions and labor shortages. These issues won’t go away by conducting business as usual. What’s at the heart of work slow-downs? Why aren’t the jobs we have to offer attractive? Finding answers to tough questions will keep global supply chains moving.

–Jason Totah
President
International & Alaska
Odyssey Logistics

California’s AB5 and CARB decisions are having a significant and deleterious effect on the American economy. They are causing driver shortages, owner-operators to exit, and will massively increase costs by forcing electric truck utilization and slowing the supply chain due to long charging times versus fuel pumping.

–Joe Adamski
Senior Director
ProcureAbility

The ripple effects of the pandemic have ultimately left logistics and procurement in a better place. Yes, they have made for the toughest operating conditions in a generation—but have also shaken up the industry, forced us to embrace innovation and agility, and provided the infrastructure to tackle future challenges.

–Matthias Gutzmann
CEO and Founder
DPW

The recent rise in fraud in the domestic truckload market will lead to more consolidation of power by large 3PLs and trucking companies that also have large brokerages.

  • Smaller companies have a higher likelihood of going out of business if they are hit by these schemes.
  • The costs to ensure compliance will continue to rise, which will more negatively impact providers with smaller shipment counts.
  • Customers will look to lower the number of carriers they work with to have less exposure to potential fraud schemes that negatively impact their business.

–Eric Masotti
President, Logistics
Trailer Bridge

AI-powered supply chain solutions should never strive for 100% automation. In the event they do, organizations will fail to uncover new opportunities that are exposed via human interactions, and progress will stagnate. People fuel growth and expansion, AI powers efficiency.

–Alyssa Myers
VP Technology
RXO

Blaming the supply chain for what ails us is no longer in vogue. It’s a worn-out cliché customers no longer find acceptable. Some would even say it’s insulting. Establishing and maintaining an impactful comeback means better forecasting, demand planning, and multi-sourcing products.

–Eric Allais
President & CEO
PathGuide Technologies

Most companies don’t look at inventory in the right way. I recall reading an article back in the late 1980s entitled J.I.T.–Just in Time or Just Inviting Trouble? I worked for a Japanese consumer giant at the time. That article stuck with me right up to the present day, and the dilemma should resonate with all of us.

The answer is not simple, and it can be vastly different depending on the complexity of the supply chain. It’s also important we recognize the following:

  • The companies hit worst by recent events were the leanest (e.g. automakers; were they “just inviting trouble?”)
  • These shortages will come again. Demand and supply will forever be at odds. Understanding where the risks are in advance is everything.
  • OEMs will again panic buy and jam orders for way more than they need. This will cause supply chains all around the world to swell and potentially burst, wreaking havoc on the ecosystem around them.

–Andy Pepper
VP, Global Supply Chain, Diversified Manufacturing Services (DMS)
Jabil

The question is not whether or not companies will incorporate artificial intelligence. It’s a matter of when, in what capacity, what platform, and how much to invest. AI also will create new cybersecurity issues that will need to be addressed and combated.

–Salvatore DiDonato
Chief Technology Officer
STG Logistics

Companies should prioritize sustainability over cost efficiency. While cost reduction is important, environmental concerns and social responsibility should also be given equal weight in decision-making to ensure a more sustainable and ethical supply chain.

–George Maksimenko
Chief Executive Officer
Adexin

U.S. logistics companies who ignore, delay, decry or deride the importance of having an ESG roadmap or program will find themselves without invitations to RFPs for large domestic and international cargo owners. They see logistics companies as mandatory partners in helping them reduce carbon emissions and meet their sustainability goals.

–Scott Case
Founder
Position : Global

Exchanges should not be the highest priority for customer returns. Amazon has proven that providing convenient drop-off options with quick refunds is what drives long-term trust, loyalty, and profit.

–Dan Nevin
GM
Inmar Post Purchase Solutions

Sustainable delivery is not more expensive. Many retailers fail to understand that sustainable home delivery costs less. Consumers are interested in sustainable delivery options and ones that combine or slow deliveries down or increase delivery density are lower cost alternatives. It’s up to retailers to present sustainable delivery options and let consumers pick them.

–Chris Jones
EVP of Industry and Services
Descartes

Now is the time to automate supply chains. Pressure to automate has subsided with slack demand. Yet automation is best done during down cycles as slack demand reduces implementation risk and prepares firms for the next cycle.

–Paul Asel
Co-founder and Partner
NGP Capital

To combat the labor shortage in the logistics industry, many leaders rush to automate. However, this can be a mistake if companies do not first involve all necessary company departments, establish clear objectives, and know their warehouse processes inside and out. Preparation is key to successful automation.

–Felix Vicknair
Vice President of Supply Chain Solutions
Kenco

Reaching out to receive quotes from all of your vendors at least quarterly could lead to much cheaper rates and big savings in the long run. Rates change for existing partners regularly, and it’s important to compare and contrast a variety of freight companies. At the end of the day, simply taking the time to do your due diligence and ask questions on a regular basis can go a long way, even making or breaking an entire operation.

–Bryan Gerber
Founder & CEO
HARA Supply

There is some confusion in the marketplace on the various supply chain forecasts for the remainder of 2023 and into 2024. Some organizations are saying the issues are resolving for them and others are saying challenges will continue to be a burden and may increase through 2024. So, what is the right answer? Is it dependent on the industry? Is it preparing for the worst and hoping for the best? Answering this question is critical to success and planning for businesses that rely on the supply chain for operational success.

–Ravi Panjwani
President
Brother Mobile Solutions

Most warehouse management systems can’t get the job done in today’s high-volume direct-to-consumer environment. These legacy systems were built for yesterday—when purchases were made in stores. A better architected, flexible DTC fulfillment solution is required to connect today’s complex ecosystem to fill and deliver orders fast and meet consumer expectations.

–Erhan Musaoglu
CEO/Founder
Logiwa Inc.

Communication with supply chain partners is shifting away from EDI and towards B2B-via-APIs. EDI will remain, but APIs offer simplicity, quicker onboarding, and data modularity that will motivate logistics organizations to adopt and promote APIs whenever possible. Real-time data connectivity helps businesses efficiently capitalize on these API-based benefits.

–Jerod Johnson
Senior Technology Evangelist
CData

The future is about a transition to serialized, real-time visible demand chains, with carbon and even better biodiversity as an important quality. Every item will be tracked with a digital twin or passport. Drivers to this transition will be food safety compliance in the United States, and the EU’s Carbon Border adjustment tax (CBAM), which will transform the flow of materials around the world. Through the standardization by wireless carriers of ambient IoT technology, which will decrease the cost of tracking 100x, borders and compliance will be automated and frictionless.

–Antony Yousefian
VP Climate & Circularity
Wiliot

Rising freight prices and extended lead times have posed challenges, and exploring alternative transportation modes, fostering local production, and embracing digital solutions may not fully address the underlying issues. Relying on suppliers and optimizing stock inventory will contribute to more sustainable and resilient long-term solutions.

–Giorgio Ferdinandi
Head of Procurement
Linnea SA

Several trucking and logistics companies made decisions around maximizing profits for the past few years and are now paying the price for that. Shippers tend to remember companies that only took spot freight and didn’t protect their contracts. How this plays out in the coming years is going to be very interesting. Who will be standing?

–Mitch Luciano
CEO
Trailer Bridge

In our interconnected global economy, the traditional notion of “supply chain” falls short in capturing the complexity and interdependence of modern business networks. Companies, regardless of size or geographic location, now operate within expansive supply networks that include contract manufacturers, contract packaging, and outsourced warehousing. While you may agree, I would argue it’s time to replace “supply chain” with “supply network” in our day-to-day.

–Tony Harris
SVP & Chief Marketing & Solutions Officer
SAP Business Network

Retailers must embrace the circular economy by reframing returns and overstock items as valuable resources. Leveraging reverse logistics and partnerships in the secondary market enables sustainable solutions, unlocking hidden value and creating a resilient supply chain ecosystem.

–Girish Jaguste
Vice President of New Business Development
Liquidity Services

Most supply chain software on the market is far too narrow in the problems it addresses. Brands and retailers need to start thinking far more comprehensively about digitalization. That means adopting software that considers all supply chain workflows and integrates them into one platform for maximum accuracy and efficiency.

–Eric Linxwiler
Vice President
TradeBeyond

Poor supply chain integration can be a deal breaker, literally. Costly delays, disruptions, and frustrated employees can quickly turn a promising deal on its head. To secure long-term value from a merger or acquisition, companies must prioritize a plan for effective supply chain integration prior to closing to gain a competitive edge.

–Geoff Coltman
Vice President, Client Engagement
Catena Solutions

]]>

The current global supply chain is unsustainable. A sustainable model embeds environmental, social, and governance best practices into how raw materials are sourced, turned into products, and delivered to market. Global supply chains have been focused on achieving financial efficiency. The result is messy and fragile supply chain systems.

–Abishek Bhat
Vice President, Business Development
Trigent Software

Forced standards, even if imperfect, make more sense. While historically standards have been determined by the free market (VHS vs. Betamax, etc.), the pandemic demonstrated alarming gaps in all supply chains. We need to act quickly and we do not have enough time for the free market to crown a winner.

–Michael Johnson
CEO
Metrc

Manufacturers and logistics providers face a crucial choice: They must either (1) engage in candid discussions with their economic development and governmental leaders to invest in the supply chain workforce or (2) embrace an accelerated adoption of automation. The challenges in the supply chain workforce cannot be left unattended.

–Craig Turner
President
World Trade Center Buffalo Niagara

Nearshoring will not be around for the long term. It’s a short-term reaction to turmoil in overseas sourcing points. In the long term, raw materials will always be sourced from wherever demand can be met at the lowest cost.

–Eric Elter
Director
Information and Technology Services
KDL Logistics

Things would run smoother if more governing organizations intervened when major bottlenecks occurred. I don’t believe any single company or union should have the power to control a process when it hinders the entire supply chain.

–Eric Vasquez
Owner
Veterans Logistics Group

The Russian invasion of Ukraine and subsequent war have been tipping points in weakening global supply chains—but climate change has been undermining their resilience since long before that. War might get resolved, but climate change is still the biggest long-term threat to supply chains and is excluded from decision-making.

–Himanshu Gupta
CEO and Co-Founder
ClimateAI

In the next 10 years we will see a heavy unionization of roles due to automation and artificial intelligence standards becoming the norm. Based on the impact of these technologies, I see governments enacting laws to ensure the future of work is sustainable, equitable, and beneficial for all mankind.

–Ann Marie Jonkman
PMP, Senior Director, Global Industry Strategies
Blue Yonder

The billions of dollars spent by startups on technology with the intent to completely automate the brokerage industry won’t prove to yield a high return on investment. The billions of dollars spent by large incumbent brokerages on technology to create efficiencies and better serve their clients and carriers is where real value will be created in the industry.

–Zach Jecklin
Chief Information Officer
Echo Global Logistics

Nearshoring or ally-shoring will prove difficult if not impossible. As much as companies would like to decouple from certain countries, there are powerful reasons (manufacturing expertise and scale) why they will simply have to deal with sourcing from higher-risk countries.

–Tony Pelli
Practice Director, Security and Resilience
BSI

We need to take a hard look at port disruptions and labor shortages. These issues won’t go away by conducting business as usual. What’s at the heart of work slow-downs? Why aren’t the jobs we have to offer attractive? Finding answers to tough questions will keep global supply chains moving.

–Jason Totah
President
International & Alaska
Odyssey Logistics

California’s AB5 and CARB decisions are having a significant and deleterious effect on the American economy. They are causing driver shortages, owner-operators to exit, and will massively increase costs by forcing electric truck utilization and slowing the supply chain due to long charging times versus fuel pumping.

–Joe Adamski
Senior Director
ProcureAbility

The ripple effects of the pandemic have ultimately left logistics and procurement in a better place. Yes, they have made for the toughest operating conditions in a generation—but have also shaken up the industry, forced us to embrace innovation and agility, and provided the infrastructure to tackle future challenges.

–Matthias Gutzmann
CEO and Founder
DPW

The recent rise in fraud in the domestic truckload market will lead to more consolidation of power by large 3PLs and trucking companies that also have large brokerages.

  • Smaller companies have a higher likelihood of going out of business if they are hit by these schemes.
  • The costs to ensure compliance will continue to rise, which will more negatively impact providers with smaller shipment counts.
  • Customers will look to lower the number of carriers they work with to have less exposure to potential fraud schemes that negatively impact their business.

–Eric Masotti
President, Logistics
Trailer Bridge

AI-powered supply chain solutions should never strive for 100% automation. In the event they do, organizations will fail to uncover new opportunities that are exposed via human interactions, and progress will stagnate. People fuel growth and expansion, AI powers efficiency.

–Alyssa Myers
VP Technology
RXO

Blaming the supply chain for what ails us is no longer in vogue. It’s a worn-out cliché customers no longer find acceptable. Some would even say it’s insulting. Establishing and maintaining an impactful comeback means better forecasting, demand planning, and multi-sourcing products.

–Eric Allais
President & CEO
PathGuide Technologies

Most companies don’t look at inventory in the right way. I recall reading an article back in the late 1980s entitled J.I.T.–Just in Time or Just Inviting Trouble? I worked for a Japanese consumer giant at the time. That article stuck with me right up to the present day, and the dilemma should resonate with all of us.

The answer is not simple, and it can be vastly different depending on the complexity of the supply chain. It’s also important we recognize the following:

  • The companies hit worst by recent events were the leanest (e.g. automakers; were they “just inviting trouble?”)
  • These shortages will come again. Demand and supply will forever be at odds. Understanding where the risks are in advance is everything.
  • OEMs will again panic buy and jam orders for way more than they need. This will cause supply chains all around the world to swell and potentially burst, wreaking havoc on the ecosystem around them.

–Andy Pepper
VP, Global Supply Chain, Diversified Manufacturing Services (DMS)
Jabil

The question is not whether or not companies will incorporate artificial intelligence. It’s a matter of when, in what capacity, what platform, and how much to invest. AI also will create new cybersecurity issues that will need to be addressed and combated.

–Salvatore DiDonato
Chief Technology Officer
STG Logistics

Companies should prioritize sustainability over cost efficiency. While cost reduction is important, environmental concerns and social responsibility should also be given equal weight in decision-making to ensure a more sustainable and ethical supply chain.

–George Maksimenko
Chief Executive Officer
Adexin

U.S. logistics companies who ignore, delay, decry or deride the importance of having an ESG roadmap or program will find themselves without invitations to RFPs for large domestic and international cargo owners. They see logistics companies as mandatory partners in helping them reduce carbon emissions and meet their sustainability goals.

–Scott Case
Founder
Position : Global

Exchanges should not be the highest priority for customer returns. Amazon has proven that providing convenient drop-off options with quick refunds is what drives long-term trust, loyalty, and profit.

–Dan Nevin
GM
Inmar Post Purchase Solutions

Sustainable delivery is not more expensive. Many retailers fail to understand that sustainable home delivery costs less. Consumers are interested in sustainable delivery options and ones that combine or slow deliveries down or increase delivery density are lower cost alternatives. It’s up to retailers to present sustainable delivery options and let consumers pick them.

–Chris Jones
EVP of Industry and Services
Descartes

Now is the time to automate supply chains. Pressure to automate has subsided with slack demand. Yet automation is best done during down cycles as slack demand reduces implementation risk and prepares firms for the next cycle.

–Paul Asel
Co-founder and Partner
NGP Capital

To combat the labor shortage in the logistics industry, many leaders rush to automate. However, this can be a mistake if companies do not first involve all necessary company departments, establish clear objectives, and know their warehouse processes inside and out. Preparation is key to successful automation.

–Felix Vicknair
Vice President of Supply Chain Solutions
Kenco

Reaching out to receive quotes from all of your vendors at least quarterly could lead to much cheaper rates and big savings in the long run. Rates change for existing partners regularly, and it’s important to compare and contrast a variety of freight companies. At the end of the day, simply taking the time to do your due diligence and ask questions on a regular basis can go a long way, even making or breaking an entire operation.

–Bryan Gerber
Founder & CEO
HARA Supply

There is some confusion in the marketplace on the various supply chain forecasts for the remainder of 2023 and into 2024. Some organizations are saying the issues are resolving for them and others are saying challenges will continue to be a burden and may increase through 2024. So, what is the right answer? Is it dependent on the industry? Is it preparing for the worst and hoping for the best? Answering this question is critical to success and planning for businesses that rely on the supply chain for operational success.

–Ravi Panjwani
President
Brother Mobile Solutions

Most warehouse management systems can’t get the job done in today’s high-volume direct-to-consumer environment. These legacy systems were built for yesterday—when purchases were made in stores. A better architected, flexible DTC fulfillment solution is required to connect today’s complex ecosystem to fill and deliver orders fast and meet consumer expectations.

–Erhan Musaoglu
CEO/Founder
Logiwa Inc.

Communication with supply chain partners is shifting away from EDI and towards B2B-via-APIs. EDI will remain, but APIs offer simplicity, quicker onboarding, and data modularity that will motivate logistics organizations to adopt and promote APIs whenever possible. Real-time data connectivity helps businesses efficiently capitalize on these API-based benefits.

–Jerod Johnson
Senior Technology Evangelist
CData

The future is about a transition to serialized, real-time visible demand chains, with carbon and even better biodiversity as an important quality. Every item will be tracked with a digital twin or passport. Drivers to this transition will be food safety compliance in the United States, and the EU’s Carbon Border adjustment tax (CBAM), which will transform the flow of materials around the world. Through the standardization by wireless carriers of ambient IoT technology, which will decrease the cost of tracking 100x, borders and compliance will be automated and frictionless.

–Antony Yousefian
VP Climate & Circularity
Wiliot

Rising freight prices and extended lead times have posed challenges, and exploring alternative transportation modes, fostering local production, and embracing digital solutions may not fully address the underlying issues. Relying on suppliers and optimizing stock inventory will contribute to more sustainable and resilient long-term solutions.

–Giorgio Ferdinandi
Head of Procurement
Linnea SA

Several trucking and logistics companies made decisions around maximizing profits for the past few years and are now paying the price for that. Shippers tend to remember companies that only took spot freight and didn’t protect their contracts. How this plays out in the coming years is going to be very interesting. Who will be standing?

–Mitch Luciano
CEO
Trailer Bridge

In our interconnected global economy, the traditional notion of “supply chain” falls short in capturing the complexity and interdependence of modern business networks. Companies, regardless of size or geographic location, now operate within expansive supply networks that include contract manufacturers, contract packaging, and outsourced warehousing. While you may agree, I would argue it’s time to replace “supply chain” with “supply network” in our day-to-day.

–Tony Harris
SVP & Chief Marketing & Solutions Officer
SAP Business Network

Retailers must embrace the circular economy by reframing returns and overstock items as valuable resources. Leveraging reverse logistics and partnerships in the secondary market enables sustainable solutions, unlocking hidden value and creating a resilient supply chain ecosystem.

–Girish Jaguste
Vice President of New Business Development
Liquidity Services

Most supply chain software on the market is far too narrow in the problems it addresses. Brands and retailers need to start thinking far more comprehensively about digitalization. That means adopting software that considers all supply chain workflows and integrates them into one platform for maximum accuracy and efficiency.

–Eric Linxwiler
Vice President
TradeBeyond

Poor supply chain integration can be a deal breaker, literally. Costly delays, disruptions, and frustrated employees can quickly turn a promising deal on its head. To secure long-term value from a merger or acquisition, companies must prioritize a plan for effective supply chain integration prior to closing to gain a competitive edge.

–Geoff Coltman
Vice President, Client Engagement
Catena Solutions

]]> NOTED: Supply Chain Highlights https://www.inboundlogistics.com/articles/noted-supply-chain-highlights-0823/ Mon, 21 Aug 2023 00:48:48 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37597

Good Works

• Reusable packaging company ORBIS Corporation hosted its third annual ORBIS Good Days for Kids golf outing, which raised more than $330,000 for the Children’s Wisconsin Pediatric Simulation and Resuscitation Program, the region’s only independent healthcare system dedicated to the health and well-being of children.

• American Airlines Cargo is the first U.S. airline and cargo carrier to join United for Wildlife, a group dedicated to ending the illegal trafficking of wildlife.

• During its annual Geeks for Kids Delivery Day Celebration, LEARN Science & Math Club, a non-profit organization based in Kansas City, Missouri, gave away more than 60 customized electric cars and assistive devices for children with mobility limitations. Long-time partner and sponsor Wagner Logistics used its specialized handling skills to transport and deliver the vehicles.

Green Seeds

• Canadian Pacific Kansas City (CPKC) and CSX Corporation entered into a joint venture to build and deploy hydrogen locomotive conversion kits for diesel electric locomotives. As an initial step, CSX will convert one of its diesel locomotives using a hydrogen conversion kit developed by CPKC.

Shovel Ready

• Tippmann Group and Cold-Link Logistics broke ground on a new 198,000-square-foot cold storage facility in Ellisville, Mississippi. The state-of-the-art food-grade warehouse will offer nearly 27,000 pallet positions of frozen and refrigerated storage space.

M & A

• Crowley has purchased Tamarind Consolidated, a logistics company serving the United States to the British Virgin Islands, to enhance end-to-end supply chain capabilities for the Caribbean region.

• Global logistics services provider Alba Wheels Up acquired VT Mancusi, a provider of customs brokerage and trade compliance services primarily for the flavors and fragrances end markets.

• Dupré Logistics, a Louisiana-based transportation company, acquired Interstate Transport, Inc., a temperature-controlled and time-sensitive food and beverage logistics services provider based in St. Petersburg, Florida.

• Logistics Plus, a worldwide provider of transportation, logistics, and supply chain solutions, acquired Jan Krediet, a logistics company with offices and warehouses in the Netherlands.

• Supply chain services provider Redwood Logistics acquired Rockfarm Supply Chain Solutions and Global Distribution and Logistics. The acquisition supplements Redwood’s growing tech-enabled managed services.

Recognition

• GEODIS was named Vendor of the Year by Mitsubishi Logisnext Americas, a leading manufacturer and provider of material handling, automation, and fleet solutions. GEODIS in Americas was selected out of 1,100 suppliers and is the first service provider recognized in the award’s seven-year history.

• PLS Logistics Services is the recipient of the Mars Wrigley Broker Carrier of the Year award.

• Ernst & Young (EY) honored AIT Executive Chairman and CEO Vaughn Moore as an EY Entrepreneur of the Year 2023 Midwest. EY recognized Moore’s accomplishment of building AIT from a mid-size domestic forwarder to a global logistics enterprise.

• Two Southeastern Freight Lines drivers—Larry Spinks and Michael Crapps—were recognized for joining Malcolm Bryant as the only three truck drivers in the company’s history to drive for 50 years with no accidents.

Sealed Deals

• Brooks Running, a global performance running footwear and apparel company, selected the TrusTrace platform to deepen visibility across its manufacturing supply chain and help identify and mitigate responsible sourcing and business continuity risks.

• High Ridge Brands, an independent branded personal care company, engaged ODW Logistics to help streamline communications through multiple third-party logistics providers. Integrating transportation and warehousing with ODW Logistics allowed for operation efficiencies including strategic load planning and freight consolidation solutions into major retailers.

• Footwear and lifestyle brand TOMS selected Cart.com as its U.S. fulfillment partner. The partnership enables TOMS to meet increasing consumer demand by leveraging Cart.com’s inventory management, 3PL, and fulfillment capabilities.

Up the Chain

Lance D. Roberts

• The supervisory board of Hellmann Worldwide Logistics appointed Jens Drewes as chief executive officer to succeed Reiner Heiken, who will retire in 2024.

• Lance D. Roberts was named chief operating officer for Candor Expedite. He is responsible for sales, trucking, production, and human resources as well as the company’s long-term direction and performance.

• Union Pacific announced that Jim Vena will become CEO, Beth Whited will become president, and Mike McCarthy will become chairman of the company. They succeed current Chairman, CEO and President Lance Fritz, who is stepping down. As part of the transition, the company’s supply chain, operations, finance, marketing and sales, and technology functions will report directly to Vena.

Melissa Nick

• ShipBob hired Melissa Nick as its first chief supply chain officer. She most recently served as Amazon’s vice president of North America customer fulfillment, where she led operations, planning, and engineering teams across more than 250 fulfillment centers.

]]>

Good Works

• Reusable packaging company ORBIS Corporation hosted its third annual ORBIS Good Days for Kids golf outing, which raised more than $330,000 for the Children’s Wisconsin Pediatric Simulation and Resuscitation Program, the region’s only independent healthcare system dedicated to the health and well-being of children.

• American Airlines Cargo is the first U.S. airline and cargo carrier to join United for Wildlife, a group dedicated to ending the illegal trafficking of wildlife.

• During its annual Geeks for Kids Delivery Day Celebration, LEARN Science & Math Club, a non-profit organization based in Kansas City, Missouri, gave away more than 60 customized electric cars and assistive devices for children with mobility limitations. Long-time partner and sponsor Wagner Logistics used its specialized handling skills to transport and deliver the vehicles.

Green Seeds

• Canadian Pacific Kansas City (CPKC) and CSX Corporation entered into a joint venture to build and deploy hydrogen locomotive conversion kits for diesel electric locomotives. As an initial step, CSX will convert one of its diesel locomotives using a hydrogen conversion kit developed by CPKC.

Shovel Ready

• Tippmann Group and Cold-Link Logistics broke ground on a new 198,000-square-foot cold storage facility in Ellisville, Mississippi. The state-of-the-art food-grade warehouse will offer nearly 27,000 pallet positions of frozen and refrigerated storage space.

M & A

• Crowley has purchased Tamarind Consolidated, a logistics company serving the United States to the British Virgin Islands, to enhance end-to-end supply chain capabilities for the Caribbean region.

• Global logistics services provider Alba Wheels Up acquired VT Mancusi, a provider of customs brokerage and trade compliance services primarily for the flavors and fragrances end markets.

• Dupré Logistics, a Louisiana-based transportation company, acquired Interstate Transport, Inc., a temperature-controlled and time-sensitive food and beverage logistics services provider based in St. Petersburg, Florida.

• Logistics Plus, a worldwide provider of transportation, logistics, and supply chain solutions, acquired Jan Krediet, a logistics company with offices and warehouses in the Netherlands.

• Supply chain services provider Redwood Logistics acquired Rockfarm Supply Chain Solutions and Global Distribution and Logistics. The acquisition supplements Redwood’s growing tech-enabled managed services.

Recognition

• GEODIS was named Vendor of the Year by Mitsubishi Logisnext Americas, a leading manufacturer and provider of material handling, automation, and fleet solutions. GEODIS in Americas was selected out of 1,100 suppliers and is the first service provider recognized in the award’s seven-year history.

• PLS Logistics Services is the recipient of the Mars Wrigley Broker Carrier of the Year award.

• Ernst & Young (EY) honored AIT Executive Chairman and CEO Vaughn Moore as an EY Entrepreneur of the Year 2023 Midwest. EY recognized Moore’s accomplishment of building AIT from a mid-size domestic forwarder to a global logistics enterprise.

• Two Southeastern Freight Lines drivers—Larry Spinks and Michael Crapps—were recognized for joining Malcolm Bryant as the only three truck drivers in the company’s history to drive for 50 years with no accidents.

Sealed Deals

• Brooks Running, a global performance running footwear and apparel company, selected the TrusTrace platform to deepen visibility across its manufacturing supply chain and help identify and mitigate responsible sourcing and business continuity risks.

• High Ridge Brands, an independent branded personal care company, engaged ODW Logistics to help streamline communications through multiple third-party logistics providers. Integrating transportation and warehousing with ODW Logistics allowed for operation efficiencies including strategic load planning and freight consolidation solutions into major retailers.

• Footwear and lifestyle brand TOMS selected Cart.com as its U.S. fulfillment partner. The partnership enables TOMS to meet increasing consumer demand by leveraging Cart.com’s inventory management, 3PL, and fulfillment capabilities.

Up the Chain

Lance D. Roberts

• The supervisory board of Hellmann Worldwide Logistics appointed Jens Drewes as chief executive officer to succeed Reiner Heiken, who will retire in 2024.

• Lance D. Roberts was named chief operating officer for Candor Expedite. He is responsible for sales, trucking, production, and human resources as well as the company’s long-term direction and performance.

• Union Pacific announced that Jim Vena will become CEO, Beth Whited will become president, and Mike McCarthy will become chairman of the company. They succeed current Chairman, CEO and President Lance Fritz, who is stepping down. As part of the transition, the company’s supply chain, operations, finance, marketing and sales, and technology functions will report directly to Vena.

Melissa Nick

• ShipBob hired Melissa Nick as its first chief supply chain officer. She most recently served as Amazon’s vice president of North America customer fulfillment, where she led operations, planning, and engineering teams across more than 250 fulfillment centers.

]]> Made in America? Earning the Label https://www.inboundlogistics.com/articles/made-in-america-earning-the-label/ Mon, 21 Aug 2023 00:34:09 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37605 4 Ways to Leverage the Cloud https://www.inboundlogistics.com/articles/4-ways-to-leverage-the-cloud/ Mon, 21 Aug 2023 00:27:09 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37595 While the pandemic is largely behind us, supply chain disruptions remain a constant threat. Here are four ways to leverage the cloud to enhance resilience.

1. Eliminate data silos. Manufacturers operate in a complex ecosystem involving multiple tiers of suppliers, distributors, and logistics partners, each with their unique set of challenges.

Some companies try to address disconnected applications by adding data to various spreadsheets, but this process requires a huge volume of manual activity. By the time an issue is spotted on a spreadsheet, it’s often too late to change course, reroute shipments, or negotiate with a new supplier.

Investing in integrated applications, analytics tools, and data management in the cloud enables businesses to achieve a higher level of visibility and transparency. With accurate and timely data, organizations can make informed decisions, proactively identify issues, and optimize supply chain processes.

2. Automate supply chain processes. Over the years, businesses have continued to improve their supply chain planning capabilities with fewer and fewer people. Various techniques and capabilities—ABC analysis, blanket orders, EDI—have made planning more efficient and effective by automating mundane and less risky tasks.

As supply chains continue to get more complex and demanding, automation helps to improve speed, accuracy, and resiliency. Automation is critical in enabling supply chain leaders to spot anomalies early and take decisive action based on accurate and timely data.

3. Add AI and predictive technology. Demand forecasting enables organizations to prepare their supply chain and operations for changes in demand. While not perfect, evolving algorithms and machine learning techniques have improved forecast accuracy and helped to improve customer satisfaction and balance inventories.

AI gives organizations the ability to model complex scenarios, anticipate disruptions, and quickly adapt operations in response to disruptions or changing market conditions. The combination of external data signals (weather, traffic, supplier financial performance) with internal supply chain signals (shop data, logistics, ERP data) creates billions of data points that would overwhelm human analysts.

But these algorithms need to be embedded in business processes that often span multiple business areas and require significant compute power. To successfully apply AI to business processes, core applications need to leverage an integrated cloud platform sitting on a high-performance computer infrastructure.

4. Embrace SaaS over cloud-hosted delivery models. Supply chain application updates can have a significant impact on resilience. The ability to quickly apply updates to fix issues, add features, and improve the accuracy of AI algorithms without downtime is critical in enabling businesses to rapidly respond to change.

Application architecture makes a huge difference. For example, a software-as-a-service (SaaS) delivery model enables organizations to consume updates quarterly without downtime or business disruption. In contrast, if an organization hosts its supply chain applications on a cloud hyper-scaler, it will need to reimplement to take advantage of new features and enhancements.

By embracing continuous innovation on an integrated business platform, organizations can enhance visibility, create adaptable and resilient supply chains, and meet customer expectations.

]]> While the pandemic is largely behind us, supply chain disruptions remain a constant threat. Here are four ways to leverage the cloud to enhance resilience.

1. Eliminate data silos. Manufacturers operate in a complex ecosystem involving multiple tiers of suppliers, distributors, and logistics partners, each with their unique set of challenges.

Some companies try to address disconnected applications by adding data to various spreadsheets, but this process requires a huge volume of manual activity. By the time an issue is spotted on a spreadsheet, it’s often too late to change course, reroute shipments, or negotiate with a new supplier.

Investing in integrated applications, analytics tools, and data management in the cloud enables businesses to achieve a higher level of visibility and transparency. With accurate and timely data, organizations can make informed decisions, proactively identify issues, and optimize supply chain processes.

2. Automate supply chain processes. Over the years, businesses have continued to improve their supply chain planning capabilities with fewer and fewer people. Various techniques and capabilities—ABC analysis, blanket orders, EDI—have made planning more efficient and effective by automating mundane and less risky tasks.

As supply chains continue to get more complex and demanding, automation helps to improve speed, accuracy, and resiliency. Automation is critical in enabling supply chain leaders to spot anomalies early and take decisive action based on accurate and timely data.

3. Add AI and predictive technology. Demand forecasting enables organizations to prepare their supply chain and operations for changes in demand. While not perfect, evolving algorithms and machine learning techniques have improved forecast accuracy and helped to improve customer satisfaction and balance inventories.

AI gives organizations the ability to model complex scenarios, anticipate disruptions, and quickly adapt operations in response to disruptions or changing market conditions. The combination of external data signals (weather, traffic, supplier financial performance) with internal supply chain signals (shop data, logistics, ERP data) creates billions of data points that would overwhelm human analysts.

But these algorithms need to be embedded in business processes that often span multiple business areas and require significant compute power. To successfully apply AI to business processes, core applications need to leverage an integrated cloud platform sitting on a high-performance computer infrastructure.

4. Embrace SaaS over cloud-hosted delivery models. Supply chain application updates can have a significant impact on resilience. The ability to quickly apply updates to fix issues, add features, and improve the accuracy of AI algorithms without downtime is critical in enabling businesses to rapidly respond to change.

Application architecture makes a huge difference. For example, a software-as-a-service (SaaS) delivery model enables organizations to consume updates quarterly without downtime or business disruption. In contrast, if an organization hosts its supply chain applications on a cloud hyper-scaler, it will need to reimplement to take advantage of new features and enhancements.

By embracing continuous innovation on an integrated business platform, organizations can enhance visibility, create adaptable and resilient supply chains, and meet customer expectations.

]]> Packaging Innovations 2023: Making Ecommerce & Sustainability a Package Deal https://www.inboundlogistics.com/articles/ecommerce-sustainability-a-package-deal/ Fri, 18 Aug 2023 02:38:23 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37635 Every detail in the supply chain today is under the microscope to be studied, examined, weighed, and tested in search of new efficiencies and advantages. Packaging is among those components to receive a heightened emphasis in recent years, resulting in new innovations that are helping in a variety of critical ways.

“The profile of packaging has never been so high,” says Rachel Fellows, sales director for retail & 3PL national accounts for Macfarlane Packaging, a distributor of protective packaging products. “Retailers have high expectations for their packaging and all stakeholders’ demands need to be heard and considered. 

“Balancing the different priorities of various departments within a packaging solution is a complex task, especially when sustainability and circularity remain at the heart of the decision-making,” she adds.

The challenges those in the supply chain face now are less intense than during the pandemic. Though that might lessen the pressure of the moment, “companies are becoming more flexible in making changes in order to keep their supply chain agile,” says Brian Techter, senior vice president, packaging solutions, forms and labels for RRD, a Chicago-based company that provides marketing, packaging, print, and supply chain solutions.

Packaging is changing in a climate that requires adjustments. While packaging and label decision-makers began to see some supply chain and market conditions stabilize in 2022, 87% of those participating in RRD’s 2023 (Un)Packaging Reality survey still report that disruptions to their global supply chain prompted their organization to change how it sources packaging or labels. 

Of those respondents, 72% had to make packaging selection changes during the year. Nearly three-fourths of respondents made changes to minimize cost, and 60% altered their designs for efficiency and transportation cost reductions. 

The survey also shows that packaging decision-makers are planning their selections more in advance than in the past.

“Based on this data, we can see companies paying closer attention to how, where, and what packaging materials they source, and how that will affect their overall supply chain,” Techter says. “It’s an intricate process, not a one-size-fits-all.”

Packaging that integrates technology such as RFID labels enables item-level tracking to optimize inventory management and supply chain efficiency.

Sustainability Gains Attention

No topic in packaging today is getting more attention than sustainability. 

“Sustainability was just about all everyone was talking about” at a UN Subcommittee Meeting of Experts on the Transport of Dangerous Goods in July 2023, says Jay Johnson, senior manager of Labelmaster Services at Labelmaster, a provider of products and services for dangerous goods and hazardous materials transportation.

“Five to 10 years ago, people complained about the cost of packaging, but they weren’t as worried or mandated to get packages back, or to use them again, or to not use certain types of materials to ship because of how they impact the landfills and the waste streams,” Johnson says. “But we’re getting that now. 

“You almost have to apply for an exception or exemption to be able to use certain types of packaging material because countries don’t want them to be added to their waste streams,” Johnson notes.

Sustainability in packaging remains a top priority for the industry, with 90% of decision-makers in RRD’s report calling it a key consideration. Innovations such as the reduction of material waste (72% of respondents), material recyclability (66%) and the inclusion of recycled material (50%) are among the key areas of focus in sustainability packaging trends. 

Sustainable packaging can include biodegradable, compostable, or recyclable packaging options and might include lighter packaging solutions that provide the same level of product protection as heavier counterparts. Circularity—when an item is renewed or regenerated rather than wasted—is also a component of sustainability gaining attention and exploration.

“Packaging designers consider the question of how to produce material more sustainably without negatively impacting performance so retailers can focus on getting the highest-quality products without sacrificing effectiveness,” Techter says.

Macfarlane also has seen that sustainable packaging is “a huge priority” for retailers, Fellows says.

“Once viewed as a commodity product, more businesses are seeing the potential environmental savings that the right packaging can offer,” she says. “On top of this, consumer pressure is mounting for businesses to continue to swap for sustainable packaging alternatives.”

Labelmaster’s new Capsuloc reusable, plastic hazmat shipping container provides a safer, more convenient way to ship flammable liquids and other hazmat compared to metal paint cans that leak, dent, and require tools to open and close.

Reducing packaging, improving protection

Mcfarlane’s 2022 Unboxing Survey revealed almost one-third of consumers will not buy again if the retailer does not use sustainable packaging. “We see this manifest with more retailers considering the total carbon dioxide emissions of their packaging throughout the entire packaging lifecycle,” Fellows says. 

“Solutions are centering around reducing packaging materials while improving product protection,” she adds. “When weighing the swap to sustainable packaging alternatives, it is important for retailers to consider not just the material being used but all areas of the supply chain that the packaging touches.”

Some new, sustainable packaging materials can be more expensive and not perform as well as previous versions. At the UN subcommittee meeting, Labelmaster arranged a presentation on aligning dangerous goods regulations to support sustainable packaging systems—a particularly difficult challenge.

“It’s certainly a mandate from everybody we’re dealing with globally to provide easier package sustainability and recyclability, but sometimes you can’t do that with dangerous goods because they react negatively,” Johnson says. “But there are attempts to adjust insulated packaging, chemical packaging, and infectious packaging to be able to better provide safety for the public.”

Aligning protection and sustainability will continue to require adjustments. The safety of those handling and transporting the packages—as well as the public along the way—remains paramount.

“In some cases, sustainability causes some transportation problems,” Johnson says. “As industry moves and things change, and you switch from hardwood virgin paper to soft wood to recycled, the quality of the fiber strands, the amount of glue, and the structure of the cardboard can be affected to the point where boxes do not perform as well as they used to.”

Similar challenges can emerge with using recycled plastic or recycled fiberboard that must meet both performance and environmental standards. Many manufacturers and other parties are swiftly trying to refine their packaging systems as a result. 

In addition, some shippers face stiffer requirements related to the protection their packaging provides while being transported. 

“We see a lot of that, which isn’t a bad thing,” Johnson says. “Recognizing that packaging needs to perform a certain way during transportation to protect the public needs to be ingrained.”

For packaging providers and their clients, now is a time of testing new techniques, processes, and materials to explore usability and performance. The challenge can be especially steep for hazardous materials transportation.

“There’s a heightened awareness to try to use sustainable products for hazmat transportation, but not all the recycled sustainable products requirements are able to protect dangerous goods in transportation without compatibility or performance issues,” Johnson says.

“You still need a package strong enough to protect the public from the risk or hazard an item represents in transportation while at the same time is cost effective, easily available and usable, and doesn’t create massive amounts of waste in the process,” he adds.

Ecommerce affects regulations and compliance

The growth of ecommerce caused many companies to seek help learning about regulations that apply specifically to ecommerce-related packaging.

“One of Labelmaster’s big projects has been helping people develop their ecommerce programs and helping them realize that the postal regulations are not the same as regular ground or air or vessel,” Johnson says. “Each mode and each competent authority has several differences. Companies need to get a handle on what they are doing, how the products are regulated, and what the packaging requirements and limitations are.”

Ecommerce is having a clear impact on packaging trends. In RRD’s survey, 60% of respondents say that their company had seen an increase in ecommerce orders over the previous year.

“To keep up with demand, packaging and label specifiers had to adapt their selections to meet these needs—74% changed materials based on availability for packaging, and 64% did the same for labels,” Techter says. “A focus on ecommerce packaging design is rivaling brick-and-mortar packaging design, which is an interesting development as ecommerce continues to outperform previous years.”

Smart Packaging

The pressure on delivery speed that has emerged from ecommerce’s rise has made supply chain visibility and tracking more important than ever. That has drawn increasing interest in smart packaging that integrates technology and enables item-level tracking. Smart packaging can strengthen efficiency by providing companies with data to improve inventory management, among other benefits.

“We’re excited about Radio Frequency Identification, or RFID, mainly because it directly affects supply chain efficiency,” Techter says. “While RFID is not new to the industry, resurgence is happening as top U.S. retailers mandate their suppliers pre-label certain products with RFID labels to optimize inventory management and supply chain operations. 

“Whether you’re in a store or warehouse, scanning an RFID label tells you all about product origin, movement, and destination, helping the retailer provide a more seamless experience for consumers,” he adds.

From a technology perspective, “a particular trend that has great value is the ability to use QR codes and other technology to drive safety and security in specific areas,” notes Peter Anderson, chief supply chain officer for WestRock, a packaging solutions company based in Atlanta.

He also points to smart packaging’s value in providing increasingly sophisticated measurements of the conditions that products are stored in while being transported.

“Where smart packaging is concerned, an exciting capability that contributes to the integrity of the supply chain is the ability to track temperature variance in temperature-controlled environments—particularly valuable in the food and beverage space, as well as in pharmaceutical health care packaging—namely clinical trials,” Anderson says.

Optimizing Packaging to Limit Waste

Standard go-to options in packaging are being replaced with highly optimized variants. Optimized packaging aims to have the ideal size, material, components, and design for individual products, which limits waste and maximizes protection. 

For example, the in-house design team at Macfarlane’s Innovation Labs has engineered an ecommerce package that is 14% stronger than a standard European Federation of Corrugated Board Manufacturers style carton while using 13% less material and being 35% less wasteful and removing the need for gluing.

“The goal of the variants is to deliver a better brand experience, reduce the amount of void fill required, and provide increased strength and performance,” Fellows says. “These needs must be balanced by requirements for ecommerce packaging to be curbside recyclable and to offer some kind of secondary use, with a view to reducing overall CO2 emissions. 

“Space and energy-efficiency will continue to be given more consideration,” she adds. “Total cost reduction will be a big priority, and optimized packaging can play an important role in managing costs and tackling challenges such as storage and labor costs.”

The array of packaging options and challenges can prove confusing. For shippers and other supply chain parties, the key often is homing in on their specific needs and demands and analyzing how the right packaging can bolster their overall supply chain.

“You can make packaging do as much or as little as you need depending on what your goal is,” Johnson says. “Often it’s just figuring out what you are trying to accomplish and identifying your pain points.

“Then you just need to invest to help you overcome those challenges.”

Building Boxes in Seconds

Macfarlane Packaging launched a new rapid box assembly system that helps packers build cardboard boxes in seconds and increases packing efficiency by up to 70%.

Created by Macfarlane’s Innovation Lab team, the new patent-pending solution has been designed to increase operational productivity by reducing manual box assembly times from 10 seconds to less than three seconds.

The unique piece of packaging equipment will be made-to-order for Macfarlane customers and works with Macfarlane-exclusive box designs that have been optimized to provide more performance strength while using less material—increasing pallet fill and reducing transportation costs and CO2 emissions.

The 3D printed units can quickly assemble boxes up to 16 inches x 12 inches, with variable depth options. This makes the solution attractive to online and multi-channel retailers packing a high volume of small parcel size packages.

]]> Every detail in the supply chain today is under the microscope to be studied, examined, weighed, and tested in search of new efficiencies and advantages. Packaging is among those components to receive a heightened emphasis in recent years, resulting in new innovations that are helping in a variety of critical ways.

“The profile of packaging has never been so high,” says Rachel Fellows, sales director for retail & 3PL national accounts for Macfarlane Packaging, a distributor of protective packaging products. “Retailers have high expectations for their packaging and all stakeholders’ demands need to be heard and considered. 

“Balancing the different priorities of various departments within a packaging solution is a complex task, especially when sustainability and circularity remain at the heart of the decision-making,” she adds.

The challenges those in the supply chain face now are less intense than during the pandemic. Though that might lessen the pressure of the moment, “companies are becoming more flexible in making changes in order to keep their supply chain agile,” says Brian Techter, senior vice president, packaging solutions, forms and labels for RRD, a Chicago-based company that provides marketing, packaging, print, and supply chain solutions.

Packaging is changing in a climate that requires adjustments. While packaging and label decision-makers began to see some supply chain and market conditions stabilize in 2022, 87% of those participating in RRD’s 2023 (Un)Packaging Reality survey still report that disruptions to their global supply chain prompted their organization to change how it sources packaging or labels. 

Of those respondents, 72% had to make packaging selection changes during the year. Nearly three-fourths of respondents made changes to minimize cost, and 60% altered their designs for efficiency and transportation cost reductions. 

The survey also shows that packaging decision-makers are planning their selections more in advance than in the past.

“Based on this data, we can see companies paying closer attention to how, where, and what packaging materials they source, and how that will affect their overall supply chain,” Techter says. “It’s an intricate process, not a one-size-fits-all.”

Packaging that integrates technology such as RFID labels enables item-level tracking to optimize inventory management and supply chain efficiency.

Sustainability Gains Attention

No topic in packaging today is getting more attention than sustainability. 

“Sustainability was just about all everyone was talking about” at a UN Subcommittee Meeting of Experts on the Transport of Dangerous Goods in July 2023, says Jay Johnson, senior manager of Labelmaster Services at Labelmaster, a provider of products and services for dangerous goods and hazardous materials transportation.

“Five to 10 years ago, people complained about the cost of packaging, but they weren’t as worried or mandated to get packages back, or to use them again, or to not use certain types of materials to ship because of how they impact the landfills and the waste streams,” Johnson says. “But we’re getting that now. 

“You almost have to apply for an exception or exemption to be able to use certain types of packaging material because countries don’t want them to be added to their waste streams,” Johnson notes.

Sustainability in packaging remains a top priority for the industry, with 90% of decision-makers in RRD’s report calling it a key consideration. Innovations such as the reduction of material waste (72% of respondents), material recyclability (66%) and the inclusion of recycled material (50%) are among the key areas of focus in sustainability packaging trends. 

Sustainable packaging can include biodegradable, compostable, or recyclable packaging options and might include lighter packaging solutions that provide the same level of product protection as heavier counterparts. Circularity—when an item is renewed or regenerated rather than wasted—is also a component of sustainability gaining attention and exploration.

“Packaging designers consider the question of how to produce material more sustainably without negatively impacting performance so retailers can focus on getting the highest-quality products without sacrificing effectiveness,” Techter says.

Macfarlane also has seen that sustainable packaging is “a huge priority” for retailers, Fellows says.

“Once viewed as a commodity product, more businesses are seeing the potential environmental savings that the right packaging can offer,” she says. “On top of this, consumer pressure is mounting for businesses to continue to swap for sustainable packaging alternatives.”

Labelmaster’s new Capsuloc reusable, plastic hazmat shipping container provides a safer, more convenient way to ship flammable liquids and other hazmat compared to metal paint cans that leak, dent, and require tools to open and close.

Reducing packaging, improving protection

Mcfarlane’s 2022 Unboxing Survey revealed almost one-third of consumers will not buy again if the retailer does not use sustainable packaging. “We see this manifest with more retailers considering the total carbon dioxide emissions of their packaging throughout the entire packaging lifecycle,” Fellows says. 

“Solutions are centering around reducing packaging materials while improving product protection,” she adds. “When weighing the swap to sustainable packaging alternatives, it is important for retailers to consider not just the material being used but all areas of the supply chain that the packaging touches.”

Some new, sustainable packaging materials can be more expensive and not perform as well as previous versions. At the UN subcommittee meeting, Labelmaster arranged a presentation on aligning dangerous goods regulations to support sustainable packaging systems—a particularly difficult challenge.

“It’s certainly a mandate from everybody we’re dealing with globally to provide easier package sustainability and recyclability, but sometimes you can’t do that with dangerous goods because they react negatively,” Johnson says. “But there are attempts to adjust insulated packaging, chemical packaging, and infectious packaging to be able to better provide safety for the public.”

Aligning protection and sustainability will continue to require adjustments. The safety of those handling and transporting the packages—as well as the public along the way—remains paramount.

“In some cases, sustainability causes some transportation problems,” Johnson says. “As industry moves and things change, and you switch from hardwood virgin paper to soft wood to recycled, the quality of the fiber strands, the amount of glue, and the structure of the cardboard can be affected to the point where boxes do not perform as well as they used to.”

Similar challenges can emerge with using recycled plastic or recycled fiberboard that must meet both performance and environmental standards. Many manufacturers and other parties are swiftly trying to refine their packaging systems as a result. 

In addition, some shippers face stiffer requirements related to the protection their packaging provides while being transported. 

“We see a lot of that, which isn’t a bad thing,” Johnson says. “Recognizing that packaging needs to perform a certain way during transportation to protect the public needs to be ingrained.”

For packaging providers and their clients, now is a time of testing new techniques, processes, and materials to explore usability and performance. The challenge can be especially steep for hazardous materials transportation.

“There’s a heightened awareness to try to use sustainable products for hazmat transportation, but not all the recycled sustainable products requirements are able to protect dangerous goods in transportation without compatibility or performance issues,” Johnson says.

“You still need a package strong enough to protect the public from the risk or hazard an item represents in transportation while at the same time is cost effective, easily available and usable, and doesn’t create massive amounts of waste in the process,” he adds.

Ecommerce affects regulations and compliance

The growth of ecommerce caused many companies to seek help learning about regulations that apply specifically to ecommerce-related packaging.

“One of Labelmaster’s big projects has been helping people develop their ecommerce programs and helping them realize that the postal regulations are not the same as regular ground or air or vessel,” Johnson says. “Each mode and each competent authority has several differences. Companies need to get a handle on what they are doing, how the products are regulated, and what the packaging requirements and limitations are.”

Ecommerce is having a clear impact on packaging trends. In RRD’s survey, 60% of respondents say that their company had seen an increase in ecommerce orders over the previous year.

“To keep up with demand, packaging and label specifiers had to adapt their selections to meet these needs—74% changed materials based on availability for packaging, and 64% did the same for labels,” Techter says. “A focus on ecommerce packaging design is rivaling brick-and-mortar packaging design, which is an interesting development as ecommerce continues to outperform previous years.”

Smart Packaging

The pressure on delivery speed that has emerged from ecommerce’s rise has made supply chain visibility and tracking more important than ever. That has drawn increasing interest in smart packaging that integrates technology and enables item-level tracking. Smart packaging can strengthen efficiency by providing companies with data to improve inventory management, among other benefits.

“We’re excited about Radio Frequency Identification, or RFID, mainly because it directly affects supply chain efficiency,” Techter says. “While RFID is not new to the industry, resurgence is happening as top U.S. retailers mandate their suppliers pre-label certain products with RFID labels to optimize inventory management and supply chain operations. 

“Whether you’re in a store or warehouse, scanning an RFID label tells you all about product origin, movement, and destination, helping the retailer provide a more seamless experience for consumers,” he adds.

From a technology perspective, “a particular trend that has great value is the ability to use QR codes and other technology to drive safety and security in specific areas,” notes Peter Anderson, chief supply chain officer for WestRock, a packaging solutions company based in Atlanta.

He also points to smart packaging’s value in providing increasingly sophisticated measurements of the conditions that products are stored in while being transported.

“Where smart packaging is concerned, an exciting capability that contributes to the integrity of the supply chain is the ability to track temperature variance in temperature-controlled environments—particularly valuable in the food and beverage space, as well as in pharmaceutical health care packaging—namely clinical trials,” Anderson says.

Optimizing Packaging to Limit Waste

Standard go-to options in packaging are being replaced with highly optimized variants. Optimized packaging aims to have the ideal size, material, components, and design for individual products, which limits waste and maximizes protection. 

For example, the in-house design team at Macfarlane’s Innovation Labs has engineered an ecommerce package that is 14% stronger than a standard European Federation of Corrugated Board Manufacturers style carton while using 13% less material and being 35% less wasteful and removing the need for gluing.

“The goal of the variants is to deliver a better brand experience, reduce the amount of void fill required, and provide increased strength and performance,” Fellows says. “These needs must be balanced by requirements for ecommerce packaging to be curbside recyclable and to offer some kind of secondary use, with a view to reducing overall CO2 emissions. 

“Space and energy-efficiency will continue to be given more consideration,” she adds. “Total cost reduction will be a big priority, and optimized packaging can play an important role in managing costs and tackling challenges such as storage and labor costs.”

The array of packaging options and challenges can prove confusing. For shippers and other supply chain parties, the key often is homing in on their specific needs and demands and analyzing how the right packaging can bolster their overall supply chain.

“You can make packaging do as much or as little as you need depending on what your goal is,” Johnson says. “Often it’s just figuring out what you are trying to accomplish and identifying your pain points.

“Then you just need to invest to help you overcome those challenges.”

Building Boxes in Seconds

Macfarlane Packaging launched a new rapid box assembly system that helps packers build cardboard boxes in seconds and increases packing efficiency by up to 70%.

Created by Macfarlane’s Innovation Lab team, the new patent-pending solution has been designed to increase operational productivity by reducing manual box assembly times from 10 seconds to less than three seconds.

The unique piece of packaging equipment will be made-to-order for Macfarlane customers and works with Macfarlane-exclusive box designs that have been optimized to provide more performance strength while using less material—increasing pallet fill and reducing transportation costs and CO2 emissions.

The 3D printed units can quickly assemble boxes up to 16 inches x 12 inches, with variable depth options. This makes the solution attractive to online and multi-channel retailers packing a high volume of small parcel size packages.

]]> VERTICAL FOCUS: Sports & Recreation https://www.inboundlogistics.com/articles/vertical-focus-sports-recreation/ Fri, 18 Aug 2023 01:54:13 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37626 Be a Good Sport

The sporting goods industry played a good game during the past two years, with growth equaling or outperforming pre-pandemic levels, but economic conditions could derail progress for some industry players, according to Sporting Goods 2023: The Need For Resilience In A World In Disarray, a study conducted by the World Federation of the Sporting Goods Industry and McKinsey.

The study identifies six actions that active lifestyle companies can take to tackle inflationary and other economic pressures:

1. Implement smart pricing and channel management. Data and analytics related to price elasticity and competitor offerings could inform flexible pricing strategies and revenue management to protect net margins and limit volatility.

2. Reset return on investment. Conduct a top-down review of efficiency by channel and SKU to invest for growth.

3. Strengthen brand communications. Optimize and refocus communications on the brand’s core value proposition to help boost revenue.

4. Build supply chain resilience. Review sourcing and supply chains and apply next-generation levers to the cost base.

5. Foster next-generation organization productivity. An agile approach and innovations, including robotic process automation, could lead to long-term savings. Review warehousing and transportation costs to increase productivity.

6. Optimize finance. Focus on freeing up cash and exploring divestments and acquisitions.

At Your Athleisure

The athleisure market (sneakers, leggings, T-shirts, hoodies, sweatshirts) is expected to grow from $4,18,690 million in 2022 to $8,33,199 million by 2030.

Athleisure’s market value has an annual growth rate of 8.1% worldwide.

The United States is the largest market for athleisure products. It accounts for about 30% of worldwide sales.

A growing interest in physical fitness among young people in the Asia-Pacific region and a cultural shift in apparel preferences has that region set to overtake the United States as the world’s largest athleisure buyer in a global market.

Athleisure is the largest product segment among young people worldwide. In some places, it accounts for more than 65% of the clothing purchased by people in their teens and 20s.

–Linchpinse

How the Lifestyle Industry Stays in Shape

Four key trends are shaping the active lifestyle industry in 2023, according to McKinsey:

1. Brand relevance will increase. Consumers who were once motivated first by factors such as functionality, design, and price, are now increasingly driven by brand. Notably, the industry’s high performers in terms of value creation are characterized by high levels of brand equity and loyalty.

Sporting goods companies need to build strong and trusted brands that leverage the direct-to-consumer revolution, collaborate with other brands, and engage in community marketing.

2. Sustainability. Brands, retailers, and manufacturers have made bold promises of a more sustainable future, but are they up to the challenge? With self-imposed deadlines on the horizon, it is time to deliver.

In an environment where both regulators and consumers are targeting greenwashing, companies should carefully consider how they deliver on their actions and ambitions.

3. Nearshoring. It is important that the nearshore country meets the requirements for raw materials and components and offers the right capabilities and capacity. A detailed business case should take into account a holistic set of variables to determine financial impact and feasibility, as well as potential government incentives.

4. Hot target for private investors. The sporting goods industry has grown strongly over recent years and is likely to continue on that path. In addition, the industry has proven to be more resilient in downturns, bouncing back faster than others.

Further, it comprises many smaller but well-differentiated brands that make attractive targets for consolidation or growth plays. These factors have fueled interest among private investors, with the number of annual deals doubling in the past decade.

On Your Mark, Get Set, Go Shopping

Although online retailing has remained a considerably stable distribution channel for the sales of sports equipment in the past, it is expected to gain more prominence in the future due to the associated convenience, finds a Mordor Intelligence report.

Specialty stores, however, hold the largest share in the current market scenario, the report notes.

The sports and leisure equipment market is projected to register a compound annual growth rate of 4.5% over the next five years. Increased online retailing, widely spreading distribution channels, and easy availability of sports equipment and necessary courses required for tournaments and other competitions are expected to boost market growth.

10 Best-Selling Sneakers of All Time

1. Nike Air Jordan 1
2. Converse Chuck Taylor All Stars
3. Nike Air Force 1
4. Air Jordan XI
5. Air Penny 2
6. Air Jordan XII
7. Nike Zoom Kobe IV
8. Reebok the Question
9. Converse Weapon
10. Nike Air Zoom Huarachie 2K4

]]> Be a Good Sport

The sporting goods industry played a good game during the past two years, with growth equaling or outperforming pre-pandemic levels, but economic conditions could derail progress for some industry players, according to Sporting Goods 2023: The Need For Resilience In A World In Disarray, a study conducted by the World Federation of the Sporting Goods Industry and McKinsey.

The study identifies six actions that active lifestyle companies can take to tackle inflationary and other economic pressures:

1. Implement smart pricing and channel management. Data and analytics related to price elasticity and competitor offerings could inform flexible pricing strategies and revenue management to protect net margins and limit volatility.

2. Reset return on investment. Conduct a top-down review of efficiency by channel and SKU to invest for growth.

3. Strengthen brand communications. Optimize and refocus communications on the brand’s core value proposition to help boost revenue.

4. Build supply chain resilience. Review sourcing and supply chains and apply next-generation levers to the cost base.

5. Foster next-generation organization productivity. An agile approach and innovations, including robotic process automation, could lead to long-term savings. Review warehousing and transportation costs to increase productivity.

6. Optimize finance. Focus on freeing up cash and exploring divestments and acquisitions.

At Your Athleisure

The athleisure market (sneakers, leggings, T-shirts, hoodies, sweatshirts) is expected to grow from $4,18,690 million in 2022 to $8,33,199 million by 2030.

Athleisure’s market value has an annual growth rate of 8.1% worldwide.

The United States is the largest market for athleisure products. It accounts for about 30% of worldwide sales.

A growing interest in physical fitness among young people in the Asia-Pacific region and a cultural shift in apparel preferences has that region set to overtake the United States as the world’s largest athleisure buyer in a global market.

Athleisure is the largest product segment among young people worldwide. In some places, it accounts for more than 65% of the clothing purchased by people in their teens and 20s.

–Linchpinse

How the Lifestyle Industry Stays in Shape

Four key trends are shaping the active lifestyle industry in 2023, according to McKinsey:

1. Brand relevance will increase. Consumers who were once motivated first by factors such as functionality, design, and price, are now increasingly driven by brand. Notably, the industry’s high performers in terms of value creation are characterized by high levels of brand equity and loyalty.

Sporting goods companies need to build strong and trusted brands that leverage the direct-to-consumer revolution, collaborate with other brands, and engage in community marketing.

2. Sustainability. Brands, retailers, and manufacturers have made bold promises of a more sustainable future, but are they up to the challenge? With self-imposed deadlines on the horizon, it is time to deliver.

In an environment where both regulators and consumers are targeting greenwashing, companies should carefully consider how they deliver on their actions and ambitions.

3. Nearshoring. It is important that the nearshore country meets the requirements for raw materials and components and offers the right capabilities and capacity. A detailed business case should take into account a holistic set of variables to determine financial impact and feasibility, as well as potential government incentives.

4. Hot target for private investors. The sporting goods industry has grown strongly over recent years and is likely to continue on that path. In addition, the industry has proven to be more resilient in downturns, bouncing back faster than others.

Further, it comprises many smaller but well-differentiated brands that make attractive targets for consolidation or growth plays. These factors have fueled interest among private investors, with the number of annual deals doubling in the past decade.

On Your Mark, Get Set, Go Shopping

Although online retailing has remained a considerably stable distribution channel for the sales of sports equipment in the past, it is expected to gain more prominence in the future due to the associated convenience, finds a Mordor Intelligence report.

Specialty stores, however, hold the largest share in the current market scenario, the report notes.

The sports and leisure equipment market is projected to register a compound annual growth rate of 4.5% over the next five years. Increased online retailing, widely spreading distribution channels, and easy availability of sports equipment and necessary courses required for tournaments and other competitions are expected to boost market growth.

10 Best-Selling Sneakers of All Time

1. Nike Air Jordan 1
2. Converse Chuck Taylor All Stars
3. Nike Air Force 1
4. Air Jordan XI
5. Air Penny 2
6. Air Jordan XII
7. Nike Zoom Kobe IV
8. Reebok the Question
9. Converse Weapon
10. Nike Air Zoom Huarachie 2K4

]]>