Featuring everything from inspirational keynote speakers to intimate breakout sessions, product demos, and vendor expos, these shows help put attendees at the forefront of the latest industry happenings. (Bonus: mingling with peers and colleagues during the shows is great for business development and career advancement.)

So, mark your calendars and get ready for these key supply chain events in 2024.

TRUCKING/SMALL PACKAGE

TMC 2024 Annual Meeting & Transportation Technology Exhibition

Mar 4-7, New Orleans
tmcannual.trucking.org

Who Should Attend: Trucking fleet professionals, vehicle manufacturers, component suppliers, and other commercial trucking professionals

What to Expect: A technical conference focused on helping attendees maximize fleet performance and efficiency.

Highlights: Task force meetings, new TMC member orientations, study sessions, Trucking Technology Marketplace

Truckload 2024

Mar 23-26, Nashville
tcaconvention.com

Who Should Attend: Truckload professionals

What to Expect: Education and insights on the latest truckload issues and industry best practices, committee meetings, networking functions, and exhibition hall.

Highlights: Executive leadership panels, keynote speech by “Mr. Wonderful” Kevin O’Leary of Shark Tank, Young Trucking Executives discussion

Home Delivery World USA

Jun 5-6, Philadelphia
bit.ly/HomeDelivWorld24

Who Should Attend: Retail logistics and supply chain professionals, autonomous technology companies, delivery services, grocers and manufacturers, warehousing operators, final mile providers

What to Expect: Technologies, strategies, and best practices for the full scope of retail logistics from inventory management and fulfillment to delivery, customer experience, and returns.

Highlights: The Middle Mile, a co-located event dedicated to middle-mile logistics; 300+ exhibitors; speakers from top retailers including Macy’s, Walmart, IKEA, Best Buy, and others

Last Mile Delivery Conference & Expo

Jun 27-28, Las Vegas
lmdconference.com

Who Should Attend: Shippers, e-commerce retailers, transit and fleet operators, 3PLs, professionals from academia and government, and courier, express, and parcel companies

What to Expect: A summit to explore last-mile logistics and the cutting-edge technologies that are disrupting the status quo in warehousing, delivery, and customer service.

Highlights: Hosted buyer meetings, panel discussions, vendor demos

Parcel Forum

Sept 16-18, Dallas
parcelforum.com

Who Should Attend: Shippers, distributors, parcel logistics providers, freight auditors, and other small-package supply chain professionals

What to Expect: Attendees will explore innovations in last-mile delivery, e-commerce logistics, and shipping technologies.

Highlights: Top-rated conference program, peer-to-peer networking, exhibit hall experience with dedicated hours

Accelerate! Conference & Expo by Women in Trucking Association

Nov 10-13, Dallas
bit.ly/AccelerateWIT

Who Should Attend: Motor carriers, 3PLs, manufacturers, retailers, truck-driving schools, financial and insurance providers

What to Expect: “A unique event with a critical mission,” Accelerate! seeks to elevate, empower, and level the playing field for women in all facets of the trucking industry.

Highlights: Six different educational tracks, career-development seminars, featured trucks and trailers, 150+ exhibitors

AIR CARGO

Air Cargo Conference

Feb 11-13, Louisville, KY
aircargoconference.com

Who Should Attend: Shippers, airlines, airport authorities, freight forwarders, expedited providers

What to Expect: Insights on how to navigate today’s complex, global air cargo challenges including cargo theft, global regulations, congestion, and emerging technologies.

Highlights: A keynote speech from Captain Houston Mills, UPS President of Flight Operations & Safety; exhibit hall with 83 booths; women’s networking event

IATA World Sustainability Symposium

Sept 24-25, Miami
bit.ly/IATAWSS24

Who Should Attend: Shippers, airlines, airport authorities, OEMs, ANSPs, solutions providers, policy-makers and regulators, banking/financial institutions

What to Expect: Air cargo sector and government experts exploring ways to successfully execute on the industry’s commitment to decarbonize aviation by 2050.

Highlights: Sessions on how to finance the transition to sustainability, how to comply with sustainability regulations, what to expect next

Air Cargo Forum

Nov 12-14, Miami
bit.ly/AirCargoForum24

Who Should Attend: Shippers, freight forwarders, ground handlers, airports, airlines, manufacturers, solutions providers

What to Expect: Conference sessions covering key air cargo issues including sustainability, education/training, and technology.

Highlights: 15,000+ sq. ft. expo space with 220+ exhibitors, comprehensive networking program including golf tournament, receptions, pre/post event excursions, and after-parties

MARITIME/PORTS

CMA Shipping

Mar 12-14, Stamford, CT
cmashippingevent.com

Who Should Attend: North American maritime professionals

What to Expect: Three days of sessions on key maritime issues, challenges and opportunities, as well as insights on the future of the maritime supply chain from top industry leaders.

Highlights: Networking Gold Card, comprehensive expo hall, Commodore Gala

AAPA 2024 Smart Ports Seminar & Expo

Jul 9-12, Seattle
bit.ly/AAPASmartPorts

Who Should Attend: Maritime professionals, technology providers

What to Expect: A detailed exploration of how smart technology is transforming ports as well as insights on facilities engineering and port security.

Highlights: Port tour, exhibit hall showcasing emerging technologies and solutions providers

Breakbulk Americas

Oct 15-17, Houston
americas.breakbulk.com

Who Should Attend: Logistics and supply chain managers involved in the movement of breakbulk products; specialized service providers

What to Expect: 5,000+ attendees sharing the latest breakbulk and project cargo strategies and exploring emerging industry trends and technologies.

Highlights: More than 280 exhibitors, Women in Breakbulk breakfast, other networking events

AAPA Annual Convention and Expo

Oct 27-30, Boston
bit.ly/AAPAAnnual24

Who Should Attend: Port professionals, terminal operators, service providers, transportation leaders, supply chain partners

What to Expect: Key takeaways on the latest industry trends and innovative solutions impacting the future of American ports.

Highlights: Full slate of sessions, speakers, and exhibit hall; port tour

INTERMODAL/RAIL

IANA Intermodal Expo 2024

Sept 9-11, Long Beach, CA
intermodal.org/intermodalexpo

Who Should Attend: Intermodal professionals from shippers, railroads, motor and ocean carriers, ports, technology suppliers, equipment manufacturers, leasing companies, 3PLs

What to Expect: Intermodal topics to be tackled include terminal design, transloading, driver productivity, sustainability, regulatory risk, and chassis provisioning, among others.

Highlights: 21 hours of educational content, nine hours of exclusive exhibit hours, 10 hours of networking

20th Annual Southwestern Rail Conference

Apr 15-16, Dallas
bit.ly/SWestRail24

Who Should Attend: Public- and private-sector freight and passenger rail professionals

What to Expect: Key inputs and discussions from across the rail sector concerning transportation planning, government affairs, emerging technologies, freight logistics, supply chain management, and sustainability.

Highlights: An expanded program of sessions, key networking opportunities

North American Rail Shippers Annual Meeting

Apr 30-May 2, Chicago
https://bit.ly/RailChicago24

Who Should Attend: Rail shippers, transportation providers

What to Expect: Speaker and panelist lineup consisting of high-profile rail transportation executives and experts from academia and government; ample networking opportunities.

Highlights: Co-located with the Traffic Club of Chicago’s annual golf outing and gala dinner

SUPPLY CHAIN & LOGISTICS

MODEX

Mar 11-14, Atlanta
modexshow.com

Who Should Attend: Manufacturing, supply chain, and transportation professionals

What to Expect: A focus on how to future-proof your supply chain via sessions about emerging technologies and equipment led by practitioners across the supply chain and manufacturing ecosystem.

Highlights: 150+ free education sessions, exhibit hall with 1,000+ providers, networking with 45,000+ attendees, keynote speakers including actor Jeremy Renner and comedian Colin Jost

ISM World 2024

Apr 29-May 1, Las Vegas
bit.ly/ISMWorld24

Who Should Attend: Procurement and supply chain management professionals

What to Expect: More than 2,000 attendees coming together to exchange insights and strategies on top procurement and supply chain issues

Highlights: ExecIn, a conference within the conference for senior leaders; post-event 90-day access to a comprehensive library of all the breakout sessions

WERC 2024 Annual Conference

June 2-5, Dallas
bit.ly/WERC2024

Who Should Attend: Warehousing, distribution, and logistics professionals

What to Expect: Explore new ideas, tools, and techniques with front-line innovators and thought leaders, covering topics ranging from labor and inventory challenges to digital transformation within the industry.

Highlights: Roundtable discussions, peer-to-peer sessions, facility tours, networking events, WERC Sponsor Showcase

CSCMP EDGE 2024

Sept 29-Oct 2, Nashville
cscmpedge.org

Who Should Attend: Logistics, transportation, and supply chain management professionals

What to Expect: Actionable takeaways from 100+ educational sessions spanning the end-to-end supply chain. The event is hosted by The Council of Supply Chain Management Professionals (CSCMP).

Highlights: Supply Chain Exchange featuring demonstrations, equipment, systems, and technologies; pre-conference Academic Research Symposium; 15 Continuing Education Units

The post Trade Shows You Need to Attend in 2024 appeared first on Inbound Logistics.

← Raymond Integrated Tether System: The new tether solution from Raymond is an operator assist tool designed to alert workers and managers and to limit lift truck functionality if an operator is not properly tethered. The wireless connection in the system is compatible with Raymond lift trucks and offers data-gathering capabilities that can help reinforce best practices with operators.

→ Ergodyne Thermal Solutions: Ergodyne introduced four new thermal solutions, designed for work crews in refrigerated facilities. The N-Ferno 6475 insulated freezer coveralls, 6476 insulated freezer jacket, and 6477 insulated freezer bib overalls are rated to -50°F for up to five hours of moderate activity. The ProFlex 850 insulated freezer gloves are rated to -20°F for up to one hour of moderate activity.

↓ Combilift CB15-5E: Equipped with ergonomic features, the counterbalance truck has multidirectional ability and can handle long and bulky loads. A recent addition to Combilift’s line of electric models, the truck offers 15,500 pounds of lift capacity, long battery life, and an auto swivel seat for driver comfort.

← ResGreen LilBuddy: The autonomous mobile robot (AMR) can move loads up to 220 pounds without tape, reflectors, or tags. Utilizing natural feature guidance or magnetic tape hybrid guidance, it can tow loads and drop them off automatically at a given location. With a 17-inch by 17-inch base, LilBuddy is one of the smallest AMRs in the industry. It can turn in place, making it ideal for narrow areas.

• HaiPick A42T Telescopic Lift ACR: The A42T autonomous case-handling robot (ACR) from Hai Robotics can pick and store plastic totes and carton boxes at a height of up to 32.8 feet. The A42T has multiple storage trays to carry up to nine payloads simultaneously.

↓ Yale Narrow Aisle Reach Truck: The Yale reach truck is designed to maximize productivity in high-density configurations. The truck offers 3,000-to-4,500-pound load capacities and single or double-deep reach capabilities to take advantage of positions in storage racking two pallets deep, helping maximize storage density. Ergonomic features include an optional suspended floor that reduces shocks and vibrations transmitted to the operator by up to 60%.

↓ AutoStore Storage & Retrieval System: The AutoStore system from Dematic is a compact, scalable robotic storage and piece picking solution. The ultra high-density storage and buffering system supports goods-to-person piece picking. The AutoStore solution brings products directly to the operator, streamlining the picking process by reducing warehouse foot traffic and keeping products close to where they are required to be.

← BionicHIVE SqUID: The SqUID solution from BionicHIVE eliminates the need to manually pick or walk between aisles. The autonomous robotic solution can sort, pick, and replenish cartons directly to/from any spot in the existing warehouse racking. The robots can travel on the ground alongside humans and other equipment and, when rails are installed, they can also move vertically on any rack, placing and retrieving boxes and delivering them anywhere in the facility.

↓ SnapControl: Synergy Logistics’ multi-agent orchestration platform, SnapControl, helps warehouses get the most out of automation devices and robots in their distribution centers. The software recently helped a U.S. e-retailer optimize the allocation of tasks between human and automated resources and achieve a sixfold increase in productivity.

↓ Destuff-it™ Portable Ergonomic Conveyor: The portable conveyor from Gorbel can provide a safe and efficient method for handling floor-stacked products. The Destuff-it features an adjustable hydraulic platform and battery-powered drive system. Workers can position the machine against a product wall and slide each product onto a conveyor without bending or reaching. The Destuff-it can also reduce the number of doors needed for the unload operation with more trailer turns per door.

← The Hyster® A Series: The line of forklifts offers configurability to match operational requirements—supporting scalable operations and offering a low total cost of operation. The Hyster Dynamic Stability system comes standard on each truck, improving stability and lowering the likelihood of forward and sideways tip overs.

→ StorFast Automated Storage and Retrieval System (AS/RS): Signode’s cart-based system can manage the location of every pallet in a facility, determining which pallets to retrieve based on inventory rules and replenishing high-volume locations. The solution integrates with existing warehouse management systems and works within the building footprint to optimize storage space.

↓ Interroll LCP AMR Top Module: The new solution from Interroll combines its light conveyor platform (LCP) with an autonomous mobile robot. The top module enables the handling of lightweight goods on the AMR. It allows the LCP to integrate with other robotic solutions to support scalable materials handling operations.

No Flip-Flopping on Supply Chain Efficiency

Alpargatas—owner of Rothy’s and the Havaianas sandals brand—turned to Mecalux storage solutions for help fulfilling and distributing 1,500 orders per day at two logistics facilities in Brazil: Campina Grande and Santa Rita.

The Campina Grande distribution center consolidates stock from the company’s manufacturing centers in northeastern Brazil. Merchandise is stored on conventional racks with capacity for 34,000 pallets. This DC features 40 loading docks and a staging area to handle the fulfillment and shipment of 1,500 orders per day, including Havaianas flip flops. The footwear is distributed in the country and internationally.

For the Santa Rita plant, Alpargatas chose Mecalux’s semi-automated pallet shuttle to perform pallet storage and retrieval operations. The high-density system houses more than 1,000 pallets in less than 3,230 square feet. The compact solution consists of a shuttle car with an electric motor that transports pallets inside the racking autonomously.

Warehouse Tech Helps With Young Recruits

One-third of warehouses are more than 50 years old, with 70% constructed before the 21st century, finds a report from real estate services firm Newmark. While innovation is necessary for operations, it is also vital for recruitment—especially the next generation of warehouse workers.

The new generation of warehouse workers wants to work in a digital warehouse alongside robots, leverage AI for efficiency, and automate mundane tasks. Given the majority of millennials’ and Gen Z’s lives have been centered around technology, these solutions are attractive because they offer flexibility, independence, and career advancement.

–Brandon Black, SVP and General Manager, Ivanti Wavelink

The post Warehouse Solutions Hit the Mark appeared first on Inbound Logistics.

Whatever your goals, third-party logistics (3PL) service providers are ready to help you meet them—now and as you plan and prepare for future growth. 3PLs bring expertise and experience, advanced technology tools, access to capacity, and significant economies of scale to just about any challenge that shippers face. The end result? Your supply chain is primed and ready for success.

Cost Reduction Gets Glossy

Consider the perpetual drive to reduce expenses. Although freight rates, particularly spot rates, have dropped a long way since the early post-pandemic days of 2022, moving a load still isn’t cheap.

“Our drivers are paid a lot more now than they were in 2019,” says Jeff Bullard, senior vice president of operations at asset-based 3PL Penske Logistics in Reading, Pennsylvania. “Equipment and insurance costs are going up.”

To offset those increases, Penske helps customers fine-tune their logistics networks to make them more efficient.

Nexterus, a 3PL based in Baltimore, also helps shippers re-engineer their networks for greater economy and efficiency. “A lot of manufacturing companies, in particular, have learned to deepen their supplier bases, embrace better processes, and utilize technology to identify how to ship smarter and where their warehouses need to be,” says Ryan Polakoff, the company’s president.

Also, Nexterus secures good rates for shippers by forging deep partnerships with carriers. “It’s about getting into the carrier’s mindset, trying to understand how their network works, where they have capacity, where they do and don’t want freight,” Polakoff says.

Brand owners trying to cut costs might ask 3PLs to help reduce inventory carrying charges. “They realize they have too many SKUs [stock keeping units], and they’re not focused on their top movers,” says Bryan Corbett, vice president of sales and marketing at Barrett Distribution in Franklin, Massachusetts.

Barrett has developed many well-tested practices that help its customers better match inventory to sales and gain other supply chain efficiencies.

One of those practices is standardization. For example, consider the packaging used in the dedicated distribution center that Barrett operates for Carhartt, the workwear brand.

“Every box is the same size in the active storage zones,” Corbett says. That makes it easier to implement automation, including robotic picking. To further enhance productivity, Barrett is also implementing standard box sizes for outbound shipping.

In addition, Barrett uses storage engineering to keep products moving efficiently. “Once you get a standardized profile on the inbound and outbound, then you can design a layout on the floor that maximizes units per hour,” Corbett says.

It’s not just about cost. 3PLs often provide digital tools that help shippers develop effective supply chain strategies, modify those strategies as needed, and execute effectively on their plans.

Not every company can rely on in-house resources to implement and maintain such technology. “Many times, one of the biggest inhibitors to change is, ‘How am I going to do this technically?’”says Brent Cavanaugh, senior vice president of strategic sales at Redwood Logistics in Chicago.

Brushing up on Technology

Adding their own warehouse space is often too costly for manufacturers and wholesalers. Instead, they turn to 3PLs such as ELM Global to help meet demand while retaining flexibility.

Redwood is a 4PL, providing traditional 3PL services, plus other services focused on technology integration and orchestration.

Its flagship offering, Redwood Connect, is a “platform-as-a-service” that can integrate a wide range of supply chain solutions and data sources. The platform enables Redwood Logistics to get new software up and running and producing results much faster than many shippers can, according to Cavanaugh.

“Being able to deliver on that investment in a matter of weeks or months rather than years is critical, especially in this post-pandemic landscape, where capital markets are tight and a lot of companies are held to stringent goals,” he adds.

Another benefit 3PLs provide is greater access to capacity. For instance, now that fast fulfillment is the norm in ecommerce, manufacturers and merchants want to locate fulfillment centers closer to consumers.

“That has created a shortage of industrial space, because everybody needed to expand their operations,” explains Bill Conboy, president of ELM Global Logistics in Brentwood, New York.

As demand for warehouse capacity has pushed up prices, manufacturers and wholesalers often find it too costly to add new space of their own, Conboy says. But an asset-based third-party logistics provider can meet the need, as ELM does with several facilities in the New York metropolitan area.

Broad Strokes

Using a 3PL’s warehouse not only gives a shipper a broader footprint than it might be able to maintain on its own, but it also makes the company more agile. It can store more or less inventory, and use more or less labor, as demand for its products rises and falls over time.

“There’s no contract obliging the shipper to space or man hours,” Conboy says.

When a company relies on its 3PLs to provide space in their warehouses, those facilities can also become integral links in the shipper’s supply chain.

That’s the case with one ELM client, a large manufacturer of corrugated boxes. The manufacturer ships rolled paper by rail to ELM, which holds the product in one of its facilities. Then ELM provides the production line with a steady stream of paper, as needed.

“We deliver up to 15 or 20 loads a day to their manufacturing plant,” says Bill Conboy, ELM’s president. When the boxes are finished, ELM arranges to deliver them to customers such as Amazon.

A large canning company in California also relies on 3PLs to provide a network of distribution facilities throughout the United States. This reduces the distance that product needs to travel from warehouse to customer to fulfill an order.

“The company decided to rail inventory to ELM and allow their customers to pick up here instead of opening their own facilities on the East Coast,” Conboy says. “We manage the inventory, pick the orders, and load the trucks.”

The manufacturer gains faster access to customers without having to invest in its own facilities or hire its own labor.

While some 3PLs own warehouse space that they lease to customers, others specialize in helping companies decide where to place their products; then they help them find appropriate facilities. The search isn’t easy. “Public warehouse space isn’t nearly as available as it used to be,” says Polakoff.

To help its customers in the hunt, Nexterus recently formed a reselling partnership with Warehowz, an online warehousing marketplace that lists more than 2,500 properties. Warehowz’s service is as quick and easy to use as Airbnb, Polakoff says.

Staying low on the risk ladder

Supply chain risk is a perpetual concern, but the pandemic shone an especially glaring light on the issue. As the virus shut factories in China and elsewhere, manufacturers learned for the first time that their products were tied to vulnerable regions—perhaps because a supplier’s supplier sourced from one of those locations.

“Now there’s an increased desire to try to map the supply chain to see where product is coming from, so they can better measure risk in their supply chain,” says Bullard.

Pre-COVID, Penske already had a crisis management platform that it used to forecast how hurricanes and other hazards would impact customers’ logistics networks. During the pandemic, the company fed virus transmission data from Johns Hopkins University into that platform and built models to predict where factories might soon shut down, so companies could plan for that disruption.

Penske is now enhancing its platform to account for more potential disruptions, such as port congestion, geopolitical conflict, civil unrest, and problems at the U.S.-Mexico border. Based on those predictions, the 3PL will help customers determine how to mitigate their risk.

Penske also helps customers figure out which products they should continue to procure from far-flung locations, which they should source closer to home, and whether it’s best to buy a particular product from one vendor or several.

Using models that Penske has developed, its experts can help a customer redesign its network for the new sourcing strategy—deciding, for example, whether it needs a warehouse near its U.S. factory or a consolidation center in a country where it has multiple suppliers. “We can cost out the physical parts of the supply chain and then work with them on whether there are any other risks that this will expose them to that they are not considering,” Bullard says.

In today’s business environment, it’s a rare company that can mitigate every risk and seize every growth opportunity solely on its own. That’s why so many companies, large and small, augment their resources by forming strong partnerships with 3PLs and priming their businesses for growth.

PRIME PARTNERSHIP: Taking Root in the U.S.

In 2015, Oemeta, a German manufacturer of cooling lubricants for industrial use, was trying to increase its North American presence. It had a warehouse in Canada, but for U.S. customers it mostly shipped products from Europe with help from a freight broker.

Seeking a better way to handle its fast-growing U.S. business, Oemeta formed a relationship with Nexterus, a 3PL based in New Freedom, Pennsylvania. “Our first round of work was to look at where their demand was in the United States and get a distribution center in place that made sense,” says Ryan Polakoff, president of Nexterus.

An analysis determined that Oemeta should locate a distribution center in Salt Lake City. But to keep things running while the manufacturer built that facility, Nexterus got Oemeta into a contract warehouse in Altoona, Pennsylvania, and began managing the company’s logistics operations.

“We switched our brokerage business to Nexterus, so they would handle all of our importing into the United States and some into Canada,” says D.J. Latford, chief supply chain officer at Oemeta in Salt Lake City. “We also used them as a 3PL for all our shipping needs throughout the United States.”

The Salt Lake facility opened in 2018. Along with a DC, it includes a manufacturing plant and Oemeta’s U.S. headquarters. Oemeta’s own employees staff the DC, but Nexterus continues to manage all the transportation and helps Oemeta develop strategies for future growth.

Nexterus makes Oemeta’s logistics operations much easier than they would be otherwise—for example, by helping Oemeta negotiate today’s complicated transportation landscape, Latford says. On the strategic side, Nexterus is now helping Oemeta expand its distribution network, choosing locations for new DCs in the Eastern U.S. and in Mexico.

Finding a reliable facility in Mexico is a particular challenge, Latford says. But with its modeling technology, Nexterus can search for locations that provide what Oemeta needs. “Nexterus offers studies to help shippers find the best locations and the best setups for their business,” Latford notes.

PRIME PARTNERSHIP: Better Data, All Tied Together

Based in New Berlin, Wisconsin, IEWC distributes wire and cable products and manufactures custom fiber assemblies, serving customers around the world. Several years ago, company leaders decided they needed to improve their logistics processes and make better use of their data.

“We weren’t satisfied with our data quality, reporting, and shipment level visibility, due to having separate processes for inbound and outbound freight,” says Gregg Mollen, senior global logistics manager at IEWC.

To meet its goals, the company might have implemented a transportation management system (TMS) on its own. But instead, it engaged with Chicago-based Redwood Logistics to implement the Oracle TMS.

“By partnering with Redwood, we could quickly utilize best practices designed specifically for the IEWC/Oracle TMS,” Mollen says. “And they would provide us with the ongoing technical resources to resolve any challenges or introduce continuous improvement opportunities.”

Using its Redwood Connect platform to link the various processes and systems, Redwood integrated the TMS with IEWC’s SAP enterprise resource planning (ERP) solution. The resulting system lets IEWC manage contracting, rates, and execution for both inbound and outbound freight on a single platform.

Since the system went live in February 2022, IEWC has gained better reporting and data, both overall and at the shipment level, Mollen says. The company employs the data to monitor shipments in transit and to manage and analyze shipment exceptions, among other uses.

Thanks to the new system, IEWC now gives its customers better information—and faster. “In addition, we have been able to exceed the baseline ROI cost savings, and the TMS allows us to continue to optimize our freight and actively mitigate freight costing changes,” Mollen says.

The company is also better equipped to inform customers about the status of shipments in transit, and to analyze delivery performance to make sure it’s meeting customers’ expectations.

The post Primed for Growth: 3PL Partnerships Help Shippers Roll With It appeared first on Inbound Logistics.

In 2022, the value of items returned by consumers across the globe totaled $1.8 trillion, up nearly three-fold since 2015, according to IHL Group, a research and advisory firm. And, IHL notes, most retailers report return rates that are outpacing revenue growth.

Along with the ballooning volume, retailers and other shippers need to wrangle with the expenses they incur to process returns. On average, it costs $30 to process a $100 return, once transportation, warehousing, and other costs are considered, according to Optoro, a provider of returns solutions.

Yet, companies can’t inordinately tighten, let alone eliminate, return policies and still remain competitive. Returns are a crucial part of the shopping experience. More than four in five shippers rank the returns process as very or extremely important to customer loyalty, finds a recent Penske survey.

What’s more, consumers who make returns tend to be loyal customers. Optoro research shows approximately two-thirds of consumers tend to make most of their returns at stores or locations where they shop or spend the most.

The result is a “fundamental clash,” says Matt Guiste, global retail strategy lead with Zebra Technologies Corporation. Consumers want fast and easy returns, he notes, yet retailers often struggle to offer this cost-effectively.

Reverse Logistics Headaches

Almost 40% of online retailers list fraud as a top returns challenge, notes Vijay Ramachandran, vice president of go-to-market enablement and experience for Pitney Bowes. While fraud isn’t new, it has ramped up as more purchases have moved online. And, even honest consumers often aren’t skilled at packaging returns. The costs generated by shipments that have unreadable labels or are poorly sealed and open during transit quickly add up, Ramachandran says.

Adding urgency to the need for efficient returns is the perishable nature and seasonality of many items, particularly in fashion. “Most retailers have a limited window for re-merchandising returns,” says Matthew Hertz, co-founder of supply chain consultancy Second Marathon.

Returns also add complexity to a company’s overall supply chain network. An order might ship from one warehouse, while its return is directed to another location or an outside party, like a logistics provider, for instance.

In addition, customers often use the majority of their allowable return window, leaving retailers without those products for a period of time. To compensate, a retailer may need to hold more inventory than would be necessary if returns occurred more quickly.

Overall, organizations need to focus on both reducing the costs of handling returns and maximizing recovery of the returned items, says Gaurav Saran, founder and chief executive officer with Reverse Logix, which offers a returns management solution.

From ‘Gift Gone Wrong’ to ‘Return Right’

Vegan skincare line Soapwalla takes a proactive approach to minimizing returns. Extensive online product descriptions and trial sizes help ensure consumers purchase items they will want to keep.

In developing a returns strategy, one starting goal is reducing the overall volume of returns.

“It’s more efficient to deliver to a customer exactly what they want the first time around,” says Rachel Winard, founder of Soapwalla Inc., a provider of vegan skincare products, who has taken a proactive approach to reducing returns.

She works with clients as a “skin care sleuth” to help them identify the products that will best meet their needs. At times, she’ll suggest customers start with fewer items than they had in their carts. And by introducing travel sizes, Soapwalla enables customers to experiment with different products before buying full-size items.

The Soapwalla team also tweaked product descriptions on the website to highlight, for instance, which products are particularly effective for conditions like eczema or rosacea.

Heading Off Returns

Along with customer service, technology can also help to head off returns. A growing universe of AI tools helps customers with sizing concerns. A solution might let customers know that if they wear a size large in Brand A, they’ll likely need an extra-large in Brand B.

Virtual fitting rooms are gaining popularity, too, notes Jamie Dixon, senior director of supply chain with TMX Transform, a supply chain consultancy. Retailers offering virtual fitting rooms use augmented reality or AI to place virtual products over an image of the customer, so they can check the size, style, and fit.

With some purchases, it makes more sense to let customers simply keep the product they were planning to return. Pipsticks, an e-tailer of stickers and other low-cost paper products, takes this approach at times.

“With our price points, our policy is to tell the customer to give the product away to a friend instead of returning it,” says Nathaniel Vazquez, the brand’s co-founder and CEO. “It’s not worth the cost—financial or environmental—of a return.”

Currently, many merchants—both smaller brands and retail giants—employ third-party technology systems to help manage returns. In addition, more than three-fifths of retailers responding to a recent Zebra survey say they plan to deploy reverse logistics technology by 2026. A primary goal is more effectively managing fulfillment pressures.

To accomplish this, reverse logistics technology needs to provide three functions: visibility, transparency, and traceability, says Douglas Kent, executive vice president of corporate and strategic alliances with the Association for Supply Chain Management.

“These three pieces need to come together to give retailers a control-tower view and keep players informed of where things are,” Kent says.

One obstacle that can thwart these efforts is the level of trust between parties, Kent says, noting that not all business partners may want to share information. Varying levels of investment in different systems between parties in the ecosystem is another challenge.

Two technologies gaining favor for reverse logistics management are AI and tracking technology. AI and intelligent decision making can reduce returns fraud by helping shippers develop policies based on customers’ behavior.

For instance, advanced machine learning may help retailers distinguish honest customers from those who abuse return policies, Ramachandran says. Eventually, AI should help retailers target honest customers with benefits like early credit and fast exchanges, while discouraging fraudsters with return fees and deferred refunds.

Artificial intelligence can also streamline returns processing. For instance, AI-based returns applications can help companies determine how to use a single truck to execute both delivery and returns. Among other benefits, this boosts asset utilization and cuts carbon emissions.

Tracking solutions can help organizations prioritize returns, adds Second Marathon’s Hertz. For example, if a retailer is running low on holiday blazers in early December, management may decide to move these items to the front of the returns processing queue.

Similarly, shippers can leverage technology to implement parameters to identify items that are worth refurbishing. This may shift some returned products from “B” to “A” stock and boost recovery, says Saran.

Distilling the Right Strategies

While technology gets a lot of the buzz, companies can employ a variety of other strategies to make reverse logistics more effective. Here’s a sampling of what experts recommend:

• Price products to include return costs. In an ideal world, online consumers prefer both free shipping and low prices. Most ecommerce companies, however, need to choose one or the other, says Caleb Nelson, co-founder and chief growth officer with Sifted, a provider of logistics optimization software.

For brands to deliver both, they may want to consider boosting prices on products that are returned more frequently.

• Staff strategically. Until recently, few companies placed their star supply chain talent in the returns function, figuring it was mostly a cost center, says Dan Guide, professor of operations and supply chain management at Penn State.

Yet organizations that fail to think through their returns function and allocate appropriate resources can “leave a lot of money on the table,” Guide cautions.

• Don’t forget the KPIs. Many supply chain organizations drive performance, in part, by aggressively monitoring key performance indicators (KPIs) for their outbound logistics operations, but few do the same for their reverse logistics operations, Nelson says.

A shipper might start by identifying products that incur higher-than-average returns, and then research the reason: Is the sizing off? Is the description inaccurate?

Box? What Box?

Enabling online customers to make in-store returns is a smart way for retailers to quickly offer product for resale, helping to optimize the value of returned goods.

• Try no-box returns. No-box returns, in which consumers bring unboxed returns to a drop-off location, can help to mitigate fraud and counter lousy return packaging, Ramachandran says. Because consumers aren’t dropping off sealed boxes, they have less opportunity to ship the wrong item, or an empty box.

And when professionals pack the returns, they typically can cut the number of exceptions caused by poor packaging.

• Optimize, optimize, optimize. Returned items are often shipped between three and five times before they find their next best home, according to Natalie Walkley, senior director of marketing at Optoro. Each segment of this journey adds costs.

A decision-making engine like Optoro’s can help determine the returns destination based on resale value, cost to process, and other factors, Walkley says. That reduces the number of times returns are shipped, and accelerates the time to resale.

“Supply chain network design and optimization is becoming a critical competency,” Kent notes. Shippers need to determine if returns should be directed to the shipping entity, or a third party that specializes in returns. The decision should consider cost and customer service, as well as environmental concerns.

• Implement home pickup for high-value customers. One emerging strategy is enabling consumers to schedule return pickups—no box or label needed—at their homes, Walkley says. Because these returns are then consolidated, home pick-ups can cut restocking time, as well as shipping costs.

To be sure, home pick-ups come with a cost. E-commerce companies might decide to limit this option to higher-value customers.

• Consider using middle-mile consolidation. Middle-mile consolidation, in which returns are collected and sorted at high-volume processing centers, results in consolidated pallets of packages that cost less to ship, Ramachandran says.

This approach also presents opportunities to leverage different options for processing, such as routing higher-velocity or higher-value items so they’re returned to stock more quickly.

• Pre-print sparingly. Including pre-printed return labels with every order adds cost and complexity, as it requires including tracking numbers and barcodes in both the client’s and the carrier’s systems, Nelson says. This generates vast amounts of extraneous data if the labels aren’t used.

It’s generally more efficient to leverage technology that allows customers to print return labels once they initiate a return, he adds.

• Maximize in-store operations for returns. Ecommerce retailers with brick-and-mortar stores will benefit by implementing in-store returns procedures. When stores lack these policies, items can linger, depreciating in value and moving out of season, further cutting into potential recovery, Walkley says.

Training store employees on handling returns can make a huge difference in effectiveness, she adds.

Technology can also help here. Some reverse logistics systems offer decision engines that can help store associates determine how to handle different returns, says Guiste of Zebra.

For example, once an associate enters information on an item, an engine might let the associate know whether the return requires refurbishing. Soon, generative AI may make this even easier. An associate may be able to essentially converse with the system, which then will offer directions for handling the return.

A Renewed Focus on Reverse Logistics

While most e-commerce companies have highly calibrated and optimized efforts to protect product margins on the outbound side—such as aggressively negotiating with carriers and suppliers for lower rates and prices—the same attention is not always paid to reverse logistics.

Applying a similar focus to the reverse logistics function offers several crucial benefits, including optimizing inventory, salvaging potential value from returned items, and enhancing customer satisfaction by streamlining the return experience.

Reverse logistics is also a strategic move toward cost-efficiency, says Nelson: “There is a substantial amount of bleeding that happens on the return and reverse logistics side that needs to be accounted for.”

Giving Returns a Second Life Through Resale and Donation

One innovative way that e-tailers can boost recovery from returns is by leveraging the resale market. By 2027, the global second-hand market will almost double, hitting $350 billion, and in 2022, 52% of U.S. consumers shopped second-hand, according to ThredUp, an online second-hand retailer.

Reselling returns is also better for the environment. Some sustainability-focused brands, like Patagonia, feature sections of “gently used” merchandise on their websites—and this approach is gaining popularity.

Making it easier for consumers to donate items instead of returning is another smart choice gaining traction. Donation can both lower costs and help those in need, says Vijay Ramachandran, vice president of go-to-market enablement and experience for Pitney Bowes.

An effective process for donating returns requires aligning both consumers’ and retailers’ incentives, he notes. Consumer incentives may include credits for their purchases, and the satisfaction of ensuring their items do not end up in a landfill. Retailers’ incentives would be lowering returns costs, as well as minimizing their environmental footprint, Ramachandran notes.

The post Reverse Logistics: Curing the Holiday Returns Hangover appeared first on Inbound Logistics.

“Freight forwarders orchestrate the movement of goods,” says Richard Patry, vice president, managing director, Canada, with DHL Global Forwarding.

Among other responsibilities, forwarders can act as intermediaries between the many parties involved in international supply chains, coordinate transportation modes, manage documentation, and help to “de-mystify” the complexity inherent in international trade.

For instance, some companies have diversified their international supply chains in what’s sometimes referred to as China Plus One. They continue to source from China, while seeking suppliers in other countries. This reduces the risk of relying so heavily on vendors in one country, but it also adds complexity.

“Many companies don’t have full teams to manage the complexity, so they have a greater need for freight forwarders,” says Lauren Pittelli, principal with Baker Logistics Consulting.

Domestic Freight Forwarding Business Grows

While most freight forwarding activity focuses on international shipments, a growing segment is geared to domestic shipments and over-the-road services. One reason is the increased activity in nearshoring and reshoring. The Reshoring Initiative reports that 364,000 jobs due to reshoring and foreign direct investment were announced in 2022, up 53% from 2021.

With supply chain visibility becoming more critical, so has collaboration among shippers, suppliers, freight forwarders, and logistics partners, as well as the application of digital technologies, says Matt Goker, CEO with ATA. Through technologies like artificial intelligence, the Internet of Things, and blockchain, freight forwarders that offer digital platforms can provide shippers with real-time visibility and market intelligence to inform decision-making.

By implementing application programming interfaces (APIs), freight forwarders can retrieve real-time data—such as information on potential obstacles from port congestion or weather-related events—from third parties. They then can determine how best to adjust to the changes.

Here’s a look at a few successful freight forwarder partnerships that provide shippers with innovative solutions, relevant advances in technology, and productive collaborations.

Dermavant and Hellmann Worldwide Logistics:
48 Hours to Product Distribution

Hellmann Worldwide Logistics helped Dermavant Sciences ship to customers within 48 hours after FDA approval of its VTAMA cream.

About 48 hours after Dermavant Sciences received approval from the U.S. Food and Drug Administration (FDA) to provide VTAMA (tapinarof) cream 1% in the United States, the company was shipping the product from its U.S. distribution centers into pharmacies and patients’ hands.

This feat typically takes companies three months after FDA approval, says Chad Eastman, director of global logistics with Dermavant. VTAMA cream is the first novel chemical entity approved for psoriasis in the United States in the past quarter-century, the company reports.

The rapid distribution was made possible through the Pre-Launch Activities Importation Requests (PLAIR), which enabled Dermavant to import VTAMA cream into U.S. distribution centers for staging, ahead of FDA approval.

Dermavant worked with the FDA to be granted the ability to import under the PLAIR program. Once it was granted, Hellmann Worldwide Logistics assisted in the shipping and importation clearance of VTAMA cream into the United States.

“Shipping to our customers within 48 hours of FDA approval is an incredible feat,” Eastman says, noting that VTAMA cream, like all medical products, must comply with stringent temperature and other controls while it’s in transit.

Behind the launch was more than one year of planning, as well as close integration between Dermavant and Hellmann. While waiting for final FDA approval, both Dermavant and Hellmann prepared a detailed playbook that would guide the launch.

The partnership between the two companies started in late 2021. “We quickly aligned on shared interests,” Eastman says.

Dermavant was looking for a partner that takes a “white glove” approach to logistics and could design a best-in-class shipping structure. Hellmann brought a deep understanding of healthcare logistics, a strong global network of products and services, and the distribution practices and policies to help Dermavant comply with the myriad regulations that govern cross-border shipments of healthcare products.

While all medical products must comply with rigorous safety requirements, “Dermavant’s launch processes and requirements are industry leading,” says Chris DiBernardi, director of business development healthcare with Hellmann.

The playbook documents the rigorous risk mitigation processes and protocols Hellmann and Dermavant jointly follow. This includes, for example, the processes to follow if a truck breaks down or if any products fall outside the temperature controls during transportation.

Through its Smart Visibility solution, Hellmann leverages 5G technology to provide full, real-time visibility from dock-to-dock or port-to-port on every shipment’s temperature, location, and security across all modes of transportation.

“You turn the transmitter on and can see real-time shipment location and conditions inside the container. Smart Visibility also has the capability to track carbon dioxide emissions and provide KPI dashboards and reports,” DiBernardi says.

Should any deviations from established parameters occur, both companies know and can immediately implement the protocols in place to address them. “It provides a level of surety,” he says.

The Smart Visibility system also offers robust reporting tools that enable shippers to analyze and improve performance. As Dermavant continues to compile this data, it’s starting to focus on the next phase of its logistics processes. For instance, it’s considering potential alternative transportation modes that could be more sustainable, while maintaining product quality and integrity.

The tight communication and integration with Hellmann’s customs brokerage team, as well as its involvement in planning, also contributed to the successful product launch. While many operations and brokerage groups operate in disparate realms, having them work together was more effective. “We don’t encounter challenges because all the documentation was reviewed in advance by their teams,” Eastman says.

“Dermavant offers a white-glove, high-touch customer focus,” he says. “This requires extensive preparing and planning and aligning with partners like Hellmann that share our commitment.”

Kaiser Aluminum and SEKO Logistics:
An Innovative Shipping Approach

A strong partnership with its forwarder enabled Kaiser Aluminum to move its aluminum mill products despite international shipping disruptions.

Prior to the international shipping crisis of several years ago, Kaiser Aluminum Corporation, a leading producer of semi-fabricated aluminum products, enjoyed “very set lanes and an extremely stable shipping environment,” says Karen Sales, planning project facilitator and outbound logistics manager for the Trentwood, Washington location. “That almost all broke overnight.”

Sales reached out to more than 60 contacts, searching for a firm that could offer a cost-effective way to move products across North America and on to other parts of the world. Most providers pointed to the upended state of international shipping and said there was nothing they could do. “SEKO Logistics was the first one to try to figure out what we could do together,” Sales says.

SEKO suggested trucking shipments from Washington state north to Vancouver, Canada, and then using Canada Rail to move them across the country. It was an option SEKO had begun evaluating during the West Coast port strikes. “It was part of our fallback plan,” says Paul Burkhart, managing director for SEKO.

The Seattle area had been cut off from ocean routing to Europe and South America for roughly two years. Burkhart and his team had been looking for a solution for smaller volumes, as some of SEKO Logistics’ customers were losing business due to the lack of shipping options.

SEKO had been using truckers to help move smaller container volumes to Canada. The company then added the ability to move flatbeds to Canada. “We thought, ‘Let’s give it a try,’” Sales says.

“It takes a leap of faith to move freight into another country before we export to a third country,” Burkhart says. The solution requires thorough documentation and knowledge, as well as a strong partner and a top-notch information system to track shipments.

Kaiser Aluminum and other shippers can track their shipments through SEKOHarmony. “We use it daily,” Sales says.

In fact, Kaiser has decided to continue to send shipments from the United States through Canada, due to the stability and efficiency of the route, Sales notes.

Dukal and Mallory Alexander: A Healthy Future

Healthcare professionals continue to confront product delays and shortages, as well as supply chain disruptions. At the same time, a lack of visibility to the disruptions often leaves healthcare organizations without the insight they need to proactively address these challenges, says Amanda Frisbie, marketing communications manager with Dukal LLC, a developer and manufacturer of healthcare products.

In addition to the impact on patients’ treatments, product stockouts, delays, and cancellations stress the financial state of healthcare organizations, many of which are already under strain.

Dukal, through its partnership with Mallory Alexander International Logistics and the development of Dukal InSight, is helping to change this.

The team at Dukal believes better health leads to a better future, and that an effective supply chain has a role to play in achieving this.

“Manufacturing and supply chain excellence allows us to mitigate disruptions and create solutions that better serve the needs of healthcare professionals and patients,” says Siobhan Kelly, vice president of supply chain.

One key to Dukal’s efforts is its partnership for the past several years with Mallory Alexander. Together, the companies developed Dukal InSight, which provides intelligent, real-time visibility from each product’s point of purchase until it’s delivered.

“We’re able to build an intelligent and proactive supply chain,” Kelly says. “We can see and respond to disruptions before they impact patient health or healthcare organizations’ revenues.”

The system also facilitates on-time and accurate product delivery, as well as advanced product assignment.

“Mallory’s order management process brings horsepower to Dukal’s InSight solution,” says Daniel Woodcock, vice president of administrative services with Mallory Alexander. This not only boosts efficiency, but also becomes a selling point, as customers today—and particularly those in healthcare organizations—require detailed and granular visibility.

At the start of production, Dukal InSight assigns each order a product allocation. Because the system provides visibility to inventory on hand, inventory in production, and inventory in transit, as well as each customer’s requested delivery date, it can assign inventory in ways that make the most sense.

For example, if the system shows inventory on hand, as well as a shipment that’s slated to arrive in the next day or two, Dukal might assign the inventory in transit to an order with a deadline that’s one week away, knowing it will arrive in time. The on-hand inventory can remain available for new customer orders that have tighter delivery deadlines.

Having this visibility also enables Dukal to focus on exceptions, such as unforeseen production delays.

It’s not only Dukal that can leverage this information. Mallory’s work to enable electronic data interchanges allows Dukal to communicate this data to its customers.

The shipment data collected by Dukal InSight extends to the item level and is communicated to customers with open orders through weekly automated emails. Customers receive a spreadsheet with order milestones, such as the date and time a sales order is received, the date it departs the port of origin, and when it arrives at a U.S. port.

They can upload the information into their systems and convert it to their preferred format.

“Offering customers full visibility means they can be proactive and maximize efficiency,” Frisbie says.

Thinking Outside the Box

By working with Mallory Alexander, Dukal was able to “think outside the box,” Kelly says. While this project began with the goal of making the order management process easier, it evolved to a system that leverages intelligent visibility to mitigate supply chain disruptions and better serve customers—offering Dukal a competitive advantage.

“Now, we’re able to see the supply chain end to end and can take action,” she adds.

The solution continues to evolve. “We’re continuing to add information and insights,” Frisbie says, “and provide them for our customers.”

5 Things to Look for in a Freight Forwarding Relationship

Here are 5 factors to consider when evaluating prospective freight forwarders.

1. Your organization’s size. “While the biggest shippers often get dedicated staff, smaller shippers can get lost in a big shop,” says Lauren Pittelli of Baker Logistics Consulting.

2. Customer service. Ask about the process if something goes wrong. For instance, how quickly can you connect with a person?

3. Visibility to first generation data. Freight forwarders should be able to access automated feeds from carriers and government agencies. If they can’t and instead, have to retype data, the risk of errors and delays increases.

4. Consolidation and deconsolidation services. The ability to consolidate shipments boosts transportation efficiency.

5. Expertise. The freight forwarder should possess in-depth knowledge of regulations, custom procedures, and other complexities of international trade.

The post Freight Forwarders & Shippers: Forward Motion appeared first on Inbound Logistics.

Additional risks that can result from unaddressed blind spots include wasted labor and inaccurate forecasts and commitments, says Carly West, senior director analyst with Gartner’s supply chain practice. These drive up transportation and inventory costs, among other expenses.

Putting Your Company’s Reputation at Risk

An inability to monitor suppliers’ practices creates ethical and compliance risks, given consumers’ rising expectations of social and environmental sustainability.

“Brands and retailers need to be able to ensure every supplier they use, even a backup supplier, meets their company’s standards,” says Eric Linxwiler, senior vice president of TradeBeyond, a provider of extended supply chain management solutions for retailers.

Are You Missing Sales Opportunities?

Poor supply chain visibility can mean missed opportunities, says Bart De Muynck, strategic advisor with Mojix, a provider of item chain management solutions.

For instance, customers who can’t locate misplaced items may leave a store without purchasing anything. Or, they might ask a salesperson to order the items, needlessly adding inventory.

Visibility allows companies to capture sales and provide a solid customer experience, without inflating inventory or shipping costs.

Minimizing Surprises

In supply chain operations, surprises due to poor visibility are rarely positive events, says Andrew Tait, managing director with Sigma7, which provides risk management capabilities.

Generally, it’s more effective to use visibility insights to understand and prepare for what otherwise would be a surprise.

Boosting Visibility to Suppliers

A first step in boosting visibility to suppliers is identifying all suppliers and assessing how they fit into the supply chain.

This analysis should include the degree to which the company depends on each vendor. A supplier that offers a commodity for which substitutes are readily available is likely less of a risk than one that provides a critical material for a key product and that isn’t easily replaced.

Tait recalls working with a pharmaceutical company that offered a tableted drug with sales in the billions. The company used talcum powder to keep the tablets from sticking together and held several months of safety stock.

Yet the company sourced the powder from a single vendor. If the vendor was unable to supply the powder, the company’s ability to make this product would be compromised for more than one year, while it sought FDA approval for a new vendor.

Billions in sales were exposed, even though a year’s supply of the talcum powder ran about $1,000.

Visibility can help companies focus on “the value at risk,” Tait says. When companies assess links in their supply chains, they can ask: If this goes wrong, what is the value at risk? And, what might cause things to go wrong?

Stay Aware of Internal Disconnects Between Functions

It’s not only external events that are of concern. Many supply chains are siloed within organizations. Blind spots to internal actions can also hamper performance.

Subodha Kumar, professor of statistics, operations, and data science at Temple University, recalls a food company that offered discounts to customers who ordered in bulk. However, poor visibility and communication between sales and operations meant supply chain costs spiked because of the promotion.

Blind spots can also occur in the disconnect between design and fulfillment. The engineers responsible for product design may lack a comprehensive understanding of the component lifecycle, and so may incorporate obsolete or hard-to-source parts in their designs. That can lead to disruptions in production and supply chain continuity.

“Engineers must be educated about the lifecycle of components, emphasizing the importance of choosing readily available and long-life parts,” says Doug Adams, senior vice president, global logistics, with Avnet, a distributor of electronic components.

Striving for Consistent and Complete Visibility

Even solutions that provide shippers and carriers end-to-end views of the shipments and inventory in their networks, such as RFID and integration with trading partners, can experience gaps. These might result from user error, a network node with limited technology, or a third-party logistics service provider that doesn’t offer visibility to goods in transit.

“The primary challenge is gaining complete, consistent visibility,” says Adam Mussomeli, supply chain and network operations leader with Deloitte Consulting.

The good news? Technology providers are beginning to acknowledge this challenge and are enhancing solutions to address it. For example, some logistics companies can provide visibility at the item and shipment level, based on data from carriers across the globe.

Building end-to-end supply chain visibility also requires gaining visibility into each function or segment of the supply chain. Because transportation is a large part of this, companies are investing in solutions to address transportation visibility challenges.

For instance, for in-transit goods, companies are using real-time transportation visibility platforms, transportation management systems, and Internet of Things (IoT) devices, among other solutions.

Multi-Organization Solutions Provide Visibility

Cimtech, which manufactures precision machined parts, welding, tube bending, and assembly for all types of industries, worked with General Electric Appliances (GEA) to gain visibility to projects that could reduce downtime and increase safety in GEA plants.

Historically, information-sharing has been handled through one-to-one connections between a supplier and customer. As supply chains have become more complex, companies need solutions that work across multiple organizations. Technology like blockchain and IoT can facilitate this.

Additional options include digital solutions, such as multi-enterprise supply chain platforms. Extending visibility across the entire supply chain, including upstream and downstream partners, into a unified platform creates a “control tower” view that enables real-time decision-making and enhances agility.

Gaining Predictive Insight and Visibility With AI

Artificial intelligence (AI) can help supply chain organizations gain both visibility and predictive insight. Say a store is scheduled to receive a pallet of products from a distribution center. When it enters the loading dock, computer vision with generative AI can detect the pallet.

Generative AI models can also be trained to understand the normal distribution of products on a pallet. Deviations from this expectation can then be flagged as anomalies, indicating potential product shortages. “Instead of a person inspecting the pallet, technology generates the data,” says De Muynck.

Visibility in the Yard

Solutions for visibility outside the warehouse or distribution center are also advancing. While yard management systems still manage moves and appointments, the technology that informs these systems is changing.

Along with RF terminals and barcodes that can track trailers, drones can travel a yard and determine the location and movement of the trailers in real time.

Trust Builds Visibility

Tackling blind spots requires a sense of trust that allows companies to confidently share information with suppliers and business partners.

For example, Mammoth Security, a security systems provider, invested in advanced inventory management software that provides real-time data to improve demand forecasting and inventory tracking accuracy. This helps minimize downtime, streamline operations, and boost client satisfaction.

The company has also strengthened relationships with its suppliers through regular communication, fostering trust. “This proactive approach helps us stay ahead of potential disruptions and maintain a smooth supply chain,” says Eugene Klimaszewski, president.

Talent Drives Visibility

Tackling supply chain blind spots requires access to relevant talent. As logistics becomes more technology-based, employees need to be similarly tech-savvy. “Leveraging technology can help to not only drive innovation, automation, and cost savings, but also attract and retain talent,” West says.

Improving Performance

As important as visibility is, it’s not enough.“Once organizations have gained new or quicker information, they need to consider what it means for how they operate,” Mussomeli says.

Better visibility should enhance operations. “You hear the saying, ‘don’t waste a good crisis,’” Spears says. Given the supply chain challenges of the past few years “we took the opportunity to improve ourselves,” he adds. n

GE Appliances Plugs Into Local Suppliers

Over the past few years, a key strategic element at GE Appliances (GEA) has been developing and growing its local supplier base. Since 2016, GEA has boosted spending with U.S. suppliers nearly three-fold, while increasing its supplier base by 233%.

This approach reduces risk by shortening delivery times, improving communication, and reducing transportation costs. It also allows for better control and visibility over the supply chain, as it reduces dependency on distant suppliers, and mitigates risks associated with geopolitical issues or trade restrictions.

“Growing our U.S. supply base, and specifically a regional supply base around our plants, enables us to work closely with our suppliers to achieve our goals,” says J Lionel Ramirez, vice president and chief procurement officer.

Early 2023 also saw the introduction of the GE Appliances Launchpad program. Designed to grow and develop diverse-owned suppliers, this program educates participants on GEA’s supply chain needs, among other information.

GEA worked with a Launchpad graduate, Cimtech Inc., a certified woman-owned business and manufacturer of precision machine parts and other products based in New Albany, Indiana. The two companies identified projects that could reduce downtime and increase safety in GEA plants. Cimtech provides a number of products and services, including channel weldments and justifier bar mounts, and will be part of future plant projects intended to reduce downtime.

Rhee Bros Gains real-time Visibility to Deliveries

Rhee Bros is one of the largest importers and distributors of Pan-Asian food in the United States. Because most of the company’s customers are in the grocery business, Rhee Bros experienced a spike in volumes during the pandemic and needed to scale quickly, says company president Robin Rhee.

To accomplish this, the company had to make several changes, including quickly expanding its fleet to service a growing customer base located across a larger geographic footprint. On top of that, it had to do this when available truck capacity and drivers were nearly impossible to find.

Rhee Bros has been working with Ryder, a provider of supply chain solutions, for more than 20 years, so Ryder is tightly integrated into Rhee Bros’ business. RyderShare, a visibility and collaboration platform from Ryder, has been key to addressing the challenges Rhee Bros faced.

RyderShare enables everyone involved in moving goods through a supply chain—from shippers to receivers to carriers and service providers—to easily see across the supply chain in real time, says Paul Woodmansee, Ryder’s director of customer logistics. They then can work together to prevent costly delays and find efficiency gains.

“Rhee Bros. and our customers can easily see where all of our deliveries are at any time, exactly what’s in them, and the minute they’ll arrive at their destinations,” Rhee says. With this information, Rhee’s customers can be staffed for deliveries and communicate with their customers as well.

If an issue arises with a delivery, Rhee and his team can see it in real time and work collaboratively to minimize delays. The data and insight have helped Rhee Bros improve delivery route planning, positively impacting productivity and profitability.

Lexmark Plays Shortstop

As disruptions upended many supply chains over the past few years, Lexmark, a provider of printing and imaging solutions, confronted multiple component shortages, as well as challenges in predicting component availability.

“We needed a different visibility tool to understand and react to the component shortages,” says Billy Spears, senior vice president and chief product delivery officer.

While Lexmark had enjoyed good visibility to its tier one suppliers, visibility to its other suppliers wasn’t as strong. To change this, Spears and his colleagues created a new system: Shortstop. While “nothing fancy,” he says, it ties the engineering record system, which contains the bills of materials for all products and other information, to suppliers across all tiers in the company’s supply chain.

Lexmark now can better predict when shortages might occur. It can optimize manufacturing and commit to a production schedule, even when the broader supply chain world of components remains in crisis. “There are multiple paths to recovery if you know about a shortage,” Spears says, noting that Lexmark can find additional suppliers, shift vendors, or in some cases, shop on the open market.

Also during this time, the container shortage was extending lead times and impacting Lexmark’s ability to get products to customers. To address this, Lexmark increased the number of carriers in each geographic region from one to four.

The company then needed visibility across its carriers, as well as a method for managing allocations between them. Spears and his team engaged a third-party software solution that leverages EDI to link Lexmark’s ERP system with its carriers.

Lexmark can allocate products based on rules it has established, and accounting for cost, availability, and other factors. The system also provides visibility and estimated arrival times for the containers, further boosting flexibility and capacity.

Both projects were up and running in a matter of months. “It was a quick return on investment,” Spears notes.

The post Gaining Visibility to Supply Chain Blind Spots appeared first on Inbound Logistics.

Artificial intelligence (AI) and blockchain are two technologies that are quickly becoming indispensable tools within the global supply chain sector.

Artificial intelligence, with its ability to analyze vast datasets and forecast trends, helps to enable the proactive decision-making needed to optimize logistics, predict demand, and enhance overall efficiency. Its role in predictive analytics, route optimization, and demand forecasting has become paramount in addressing the complexities of global trade.

Today, 37% of supply chain leaders are currently using AI or are planning to deploy it within the next 24 months, according to data compiled by zipdo. The market for AI in the supply chain is expected to hit $10 billion by 2025.

Blockchain technology promotes transparency, traceability, and security by creating an immutable ledger of transactions across the supply chain network. This decentralized and tamper-resistant system goes a long way toward instilling trust among stakeholders, while it streamlines documentation and significantly reduces the risk of fraud.

Blockchain is still a nascent force in the supply chain, but its supply chain market size is expected to grow from $0.56 billion in 2023 to $4.21 billion by 2028, at a CAGR of 49.87%, according to Mordor Intelligence.

Together, AI and blockchain are drastically altering how companies manage, secure, and optimize operations within the intricate web of global supply chains and trade networks. Here’s a closer look at some companies that create, produce, and use these advanced tools.

ARTIFICIAL INTELLIGENCE: A Better Way to Analyze Data

Global household appliance brand Dyson uses an AI- and automation-based technology that aggregates and contextualizes data to help make more effective supply chain, procurement, and product decisions. The solution also enhances visibility and collaboration.

A lack of information visibility and collaboration across its procurement, supply chain, and product engineering teams was causing issues for Dyson, a multinational provider of household appliances such as vacuum cleaners, fans, air purifiers, and other items. The company needed a better way to analyze data across departments—and a fresh mindset around embracing AI.

“It’s fantastic to have a system that can analyze the data and give you insights, but you won’t go anywhere if your mindset is still stuck on spreadsheets,” says Michelle Shi-Verdaasdonk, chief supply chain officer at Dyson.

The solution came from LevaData’s proprietary AI- and automation-based technology that aggregates and contextualizes data to help supply chain, procurement, and product teams make better decisions faster. The company’s solution helps sourcing teams reduce costs and mitigate risk at the part, ingredient, and metal level, arming procurement teams with built-in capabilities that provide improved visibility and increased collaboration.

The end game? A greater ability to take decisive actions.

“LevaData is equipping teams with the insights and intelligence they need to execute with higher velocity and greater accuracy,” says Keith Hartley, CEO of LevaData.

By contextualizing complex data from hundreds of data sets, the LevaData platform provides actionable insights and potential cost-savings opportunities to companies like Dyson that are looking to gain a competitive edge. The platform’s custom dashboards provide spend intelligence using real-time data and interactive visualizations, which “can dramatically accelerate decision-making,” Hartley notes.

Probabilistic Planning is the Right Tool

Seeking efficiencies on its path to business growth and network expansion, Grupo Mercury, a Latin American importer and marketer of wholesale electronics products, went searching for an AI partner. It selected an AI-driven planning suite called Service Optimizer 99+ (SO99+) from ToolsGroup, a global retail and supply chain planning and optimization software provider.

SO99+ is an AI-fueled supply chain planning tool that helps retailers, distributors, and manufacturers improve the resilience and performance of their operations. Its effectiveness comes from a probabilistic planning approach that leverages AI and real-time data from across the enterprise for fast decision making. The solution accounts for variability and tailors inventory to demand, helping to mitigate risk and uncertainty in demand and supply planning.

By leveraging ToolsGroup’s native AI and automation, Grupo Mercury says it can navigate complexity, satisfy demand, and achieve enhanced business performance amid network expansion.

“We chose ToolsGroup to accompany us on this journey because the company had the maturity to support our expansion plan, an in-depth understanding of the Latin American marketplace, and a track record of handling similar challenges and product types efficiently and profitably,” says Fredy Martinez, regional director of supply chain for Grupo Mercury.

By working closely with Grupo Mercury, ToolsGroup can “build a more resilient supply chain that will help them convert growth potential into real-world benefits,” says Inna Kuznetsova, CEO of ToolsGroup.

Microsoft Serves as an AI Copilot

Georg Glantschnig, Vice President, Dynamics 365, Microsoft

Microsoft has long provided supply chain management solutions. Its Dynamics 365 Supply Chain Management suite offers a unified view of inventory, manufacturing, service, and logistics functions, and uses predictive analytics to turn data into insights that support strategic decision-making.

The company’s newer, AI-powered user experience is known as Copilot for Dynamics 365 Supply Chain Management. Microsoft introduced Copilot capabilities that enable procurement teams to handle purchase order changes in a scalable, efficient manner and assess the impact of those changes downstream to production and distribution.

Microsoft’s AI tool also offers natural language-based conversational help and guidance on next best actions within workflows to improve productivity, collaboration, and performance.

For example, users no longer need to leave their workspace or toggle between multiple tabs to act on insights. These capabilities enable supply chain teams to mitigate potential disruptions rapidly.

Most importantly, Microsoft says, it will guide teams on how to execute with step-by-step conversational help and enhance their user experience.

“Generative AI and Microsoft Copilot have opened the door for us to reimagine how workers and employees engage with their everyday tools and workflows,” says Georg Glantschnig, vice president of the Dynamics 365 ERP portfolio at Microsoft.

“Empowering supply chain workers is no longer just about building new workspaces to work from—like control towers or command centers—but rather about how we surface relevant information and enable quicker decision-making in the flow of work,” Glantschnig says.

BLOCKCHAIN: Blockchain as Digital Provenance?

Measured by financial assets under administration, Provenance is the largest public blockchain in the world. Created in 2018, the open source blockchain is part of the Cosmos ecosystem and is designed for the regulated financial services industry.

The Provenance Blockchain Foundation supports the development and growth of Provenance Blockchain, working to steer the blockchain toward developing, enabling, and securing a robust environment for global digital financial-asset use cases.

“Trade finance, which traditionally relies on paper or outdated centralized infrastructure, remains a constant thorn in the side of a rapidly changing and complex global trade sector,” explains Dan Garzia, CMO of the Provenance Blockchain Foundation.

By contrast, he says, blockchain technology enables immutable transparency, which reduces administrative overhead and settlement times through elements such as smart contracts and Markers (smart contract capabilities engineered directly into the blockchain protocol), and offers real-time tracking.

Public blockchains such as Provenance offer benefits for data privacy and data security, as well, including decentralization (improving data’s resistance to hacking and data breaches), transparency (improving audits and data tracking), and cryptography (protecting data from being accessed or altered without permission).
Healthcare providers, for example, can better manage patient records and clinical trials data securely and privately.

One company succeeding with Provenance is ZorroSign, a global provider of data security solutions built on blockchain—including a digital signature solution that allows users to sign security documents online. The company recently announced its advanced integration with Provenance.

End-to-End Traceability for the Win

When VeChain Technology launched in 2015, it was rare to see major business applications running on public blockchains, and the company acknowledges that the level of enthusiasm was low.

However, VeChain’s leadership team endeavored to raise acceptance by differentiating the company from the many speculative crypto projects in the marketplace and saw the opportunity for enterprises to capitalize on blockchain even beyond the digital realm.

One strategy was to offer end-to-end traceability. VeChain’s blockchain platform enables an ongoing view of all transactions among supply chain participants.

“Blockchain technology continues to disrupt the supply chain,” says Kuan Thurow, assistant vice president, VeChain US, Inc. “Decentralization, an important trait of public blockchains, provides a trust mechanism. It makes data more robust and reliable when managing multiple competing stakeholders.

“Record-keeping, compliance, and dispute management are several ways blockchain can ensure product quality throughout the supply chain,” Thurow adds.

In 2022, VeChain entered into a strategic integration partnership with TruTrace Technologies, developer of a fully integrated blockchain platform for the cannabis, food, apparel, and pharmaceutical industries. The direct connection between the companies allows TruTrace to offer a seamless way to utilize blockchain without large investments in network infrastructure or management of cryptocurrencies.

Shoppers Drug Mart, Canada’s largest retail pharmacy chain, currently uses TruTrace’s platform as its underpinning technology infrastructure for traceability and accountability associated with its medical cannabis program.

“When we began the development of TruTrace, our mission was to serve as an interconnected blockchain-secured product registry and traceability solution that could bring all stakeholders together and track and manage variabilities from batch to batch and lot to lot,” says Robert Galarza, CEO of TruTrace.

Early on, they encountered difficulties using this technology, including onerous transaction fees and being limited to permission-based systems. VeChain’s solution helped TruTrace get back on track. The company now has “a true enterprise-grade blockchain that understands how to bring value to clients at a reasonable cost with the ability to scale at a global level,” Galarza says.

Decentralizing the Chain

An IoT-enabled device that can recognize when a load arrives, send an update that triggers an invoice, and facilitates payment automatically used to sound too good to be true. But today it’s available through the use of blockchain networks such as Chainlink, a decentralized blockchain oracle network built on Ethereum.

The Chainlink platform provides a suite of services connecting global trade systems with one another and to real-world data in a reliable, secure, and decentralized manner.

Chainlink Cross-Chain Interoperability Protocol (CCIP) provides a universal interoperability standard that securely connects data and value to both legacy and blockchain systems and enables interoperability between them.

“The exchange of trade data and the verification of the movement of goods along supply chains is impeded by a fragmented trade ecosystem, where isolated systems lack access to critical information and interoperability with other systems,” says Chirag Dhull, head of product and industry marketing, Chainlink Labs.

Changing the Game

Blockchain changes all of that. “Additionally, Chainlink Functions [an additional offering from Chainlink] can be used to fetch data from any API, trigger events, and secure trade finance operations,” Dhull says.

Ultimately, Dhull says, Chainlink can increase the transparency of supply chains, reduce administrative costs, enhance materials traceability, expand trade access to emerging markets, and establish high-integrity supply chains with end-to-end verification.

That combination was appealing to global telecommunications provider Vodafone, which recently announced a collaboration with Chainlink, as well as Sumitomo Corporation and InnoWave, to address longstanding challenges in the $32-trillion global trade ecosystem.

“The integration of IoT and blockchains has the potential to provide new monetization opportunities for IoT devices,” says David Palmer, chief product officer for Vodafone’s Digital Asset Broker (DAB).

“Three billion IoT devices are forecast to be transacting in the economy of things by 2030. Securing consensus and validation between DAB and Chainlink will be important to drive this growth,” he adds.

As is becoming increasingly clear, the time is ripe for companies to embrace new technologies that help streamline, strengthen, and secure global supply chains.

Technophobes be warned: proceed at your own risk.

SPOTLIGHT ON GLOBAL TRADE MANAGEMENT

While not as buzzy as next-gen tools like AI and blockchain, global trade management (GTM) systems—arguably the workhorse of global supply chain software—still play a vital role in the supply chain tech stack of many global firms. Thanks to its ability to enable agile and compliant performance in the face of fluctuating trade regulations and increasing penalties for non-compliance, companies can use GTM systems to automate international trade management processes to mitigate risks, ensure compliance, and minimize costs. Here are two examples of GTM in action.

Opening Up Partnership Opportunities

Companies engaging in global trade want to be confident that they are in compliance with a variety of global regulations and protected from potential risks that pop up across the global supply chain. Those needs have driven some 400,000 manufacturing, logistics, channel, and distribution partners to connect on the SaaS-based global trade application suite from e2open.

The company’s cloud-native global platform enables these partners to operate as one multi-enterprise network tracking more than 12 billion transactions annually. The platform is designed to anticipate disruptions and provide opportunities to help companies improve efficiency, reduce waste, and operate sustainably.

The software is backed by a comprehensive database and business rules covering 98% of world trade. It can automatically apply regulatory rules to all cross-border transactions, helping organizations mitigate non-compliance risks such as border clearance delays, fines, loss of trade privileges, and criminal liability. Organizations also gain the ability to minimize duty costs and speed imports and exports by accessing the connections in e2open’s network of global trade partners.

Fast and Easy Filing

Filing documents required by U.S. Customs is standard fare for organizations involved in global trade. The process, however, can be anything but cut and dry—especially at scale. That challenge became evident for many ecommerce companies when Customs implemented a program (Section 321, 19 USC 1321) related to de minimis value shipments. (De minimis allows articles to be imported free of duty and import taxes when the aggregate fair retail value of the articles imported by one person on one day does not exceed $800.)

With the implementation of Section 321, many ecommerce companies took advantage of the program by fulfilling de minimis orders overseas through partnerships with international freight forwarders. The international freight forwarders were also freight consolidators who would package and sort each individual shipment into totes and load those totes into 40- or 45-foot containers so that when they arrived in the United States, the individual totes could be dropped off at a last-mile courier.

However, for an importer to take advantage of the program and avoid paying duties, they have to file three entries with Customs. Most ecommerce companies ship tens of thousands of shipments per container. In an example of 15,000 shipments in a single container, this would mean 45,000 filings, notes Darrell Ortiz, founder and CEO of CDM Software Solutions, a Customs-certified software application provider that helps carriers, NVOCCs (non-vessel operating common carriers), shippers, and importers facilitate export and import shipments into and out of the United States.

GTM solutions like CDM’s play a key role in helping companies with these cumbersome processes. “By automating the process of filing certain documents required by Customs, CDM’s Global Shipment Compliance solution has improved the efficiency of filing those documents by 90%,” says Ortiz.

CDM Software Solutions created a single-message format that enables importers to provide all the data elements for each of the three required customs filings. CDM’s internal system processes the message and sends the data to the appropriate Customs system and returns the appropriate acceptance or rejection response back to the importer. This streamlines the process and empowers companies to benefit from smart global trade strategies.

The post No Place for Technophobes: Technologies Streamline Global Trade appeared first on Inbound Logistics.

To keep cold products in great condition, shippers need to maintain freight at the right temperature in transit and in storage.

Demand for cold chain logistics services is growing. This market in the United States will see a compound annual growth rate of 15.9% from 2023 to 2032, predicts Precedence Research.

As more volume flows through the cold chain, technology developers are meeting the need with innovations in sensing, monitoring, packaging, and more. These solutions can help shippers maintain product integrity, reduce waste and, sometimes, minimize harm to the environment.

Warehouse Strategies

NewCold, a global food logistics provider based in Breda, the Netherlands, was responding to market changes when it opened a new, high-tech cold storage facility in Lebanon, Indiana in October 2023. These changes occurred as large, highly automated food processing companies came to dominate the market for processed foods.

Traditional cold storage facilities are too small and labor-dependent to fit the needs of those production giants, says Jonas Swarttouw, executive vice president, commercial and chairman of NewCold North America, in Chicago. Major food processors need warehouses that are big enough to create economies of scale and centrally located to support distribution throughout the United States.

NewCold developed the Lebanon facility in partnership with Conagra; the warehouse manages frozen foods for that company and one other large customer. The facility has 100,000 pallet positions, and work is underway to double that capacity.

NewCold has made special provisions to maintain temperature as product moves in and out. “All areas in the warehouse, including the dock, are frozen,” says Swarttouw, adding that nearly all other frozen food warehouses have docks that are refrigerated but not kept below the freezing point.

Robots and other automated systems do much of the physical work, driven by a material flow system, a warehouse management system, and a control system.

Like operators of most cold chain facilities, NewCold carefully monitors its cooling system. “The compression and the temperature technology are wired into the building management system,” says Matthew Staley, NewCold’s executive vice president, innovation and technology.

Alarms go off if the temperature strays outside the prescribed window.

Keeping it Tight

NewCold’s new highly automated cold storage facility in Lebanon, Indiana, is one of the largest cold storage facilities nationwide. The facility serves global food producers.

NewCold also takes care to use as little energy as possible for cooling. “We build the warehouse as a tight box where the only things going in and out are the pallets,” Staley says.

And it stacks those pallets densely, which helps them stay cold. NewCold says its facilities use 50% less energy than a traditional warehouse.

Leonard’s Express, a trucking company based in Farmington, New York, was also responding to market changes when it opened a 114,500-square-foot temperature-controlled warehouse in Shortsville, New York in late 2022. In this case, the evolution involved consumer habits.

“There are more temperature-controlled products being shipped everywhere now than there were 15 or 20 years ago,” says Ken Johnson, executive chairman of Leonard’s Express, whose fleet includes 700 refrigerated trailers.

Consumers buy more prepared meals these days. There’s also more variety within product categories, such as the many varieties of yogurt and plant-based milk in the dairy case.

That proliferation makes it harder to find refrigerated warehouse space. Leonard’s answered the need by building its new warehouse on spec. Customers stepped right up.

“We were hoping to be full within the first six months, and it was full a bit quicker than that,” Johnson says.

Frozen in Place

Leonard’s Express opened a 114,500-square-foot, state-of-the-art cold chain solutions warehouse in Shortsville, New York that allows shippers to track the temperature and location of their refrigerated loads from a smart device, 24/7/365.

The warehouse was designed to provide both refrigerated and frozen capacity, although due to market demand today, four of its five rooms currently store frozen foods.

Like NewCold, Leonard’s Express has made special provisions to keep product cold during loading and unloading, deploying dock doors that let workers open trailers inside the building. That space is cooled to a constant 34 F.

“There’s never an opportunity for warm air to get into the trailer,” Johnson notes.

The warehouse’s management system lets customers access data about their own products. “They know what room their product is in, so they can go into our system and look at the temperature if they have any concerns,” Johnson says.

“Some customers have internal auditing processes that require them to look at the temperature from time to time,” he adds.

Cold Freight in Transit

Courier Connection’s fleet is equipped with several different types of vehicles. Its refrigerated trucks measure 12 feet, and can accommodate any perishable foods or other commodities that require temperature-controlled transportation.

In an over-the-road trailer, one traditional monitoring strategy is to rely on technology built into the refrigeration unit. That’s what Atlanta-based Courier Connection generally does when distributors engage it to deliver food to customers in Georgia and neighboring states.

“We have the latest Freightliner trucks with the latest refrigeration units, which are some of the most robust and reliable,” says John Lauth, president of Courier Connection. The reefer units monitor themselves to make sure they maintain the correct temperature for the load in the trailer.

On long-distance runs, if the cooling unit detects a temperature anomaly it sets off an alarm to warn the driver. This doesn’t happen often. “But if we do have a problem, we move the load to one of our other refrigerated trucks as quickly as we can,” Lauth says.

To further reduce any risk to their food, some customers place a temperature monitor inside the load. “They can watch their food on an app to see if it gets above a certain temperature,” Lauth says.

If it does, then, unfortunately, they can’t sell it. But most of the time the freight arrives in good condition and gets transferred right away to a refrigerated room at the destination.

Some strategies for maintaining the cold chain are simply a matter of common sense. You need to keep the truck in good shape, verify that the door is shut after loading, and set the temperature correctly. Then follow smart procedures at the destination.

“Also make sure there’s somebody there to receive the freight before you open the door and let out the cold air,” Lauth says.

For shippers who want a closer view of chilled products in transit, Wiliot—based in Israel, with U.S. headquarters in San Diego—offers the ability to monitor temperature by the case or even by individual item.

Sensing as a Service

Wiliot’s “IoT pixels” enable a circular economy by allowing all reusable transport packaging such as crates, pallets, containers, and bins to continuously communicate their status. Food companies can then precisely track inventory, and monitor shipping and delivery.

Wiliot’s “sensing as a service” platform uses “IoT pixels”—devices about the size of postage stamps—to measure conditions such as temperature and humidity. The pixels don’t require batteries. They communicate via Bluetooth with inexpensive readers installed at various points throughout the cold chain, collecting data from product and transmitting it to Wiliot’s cloud-based platform.

Traditionally, a shipper might place a sensor in one or two spots within a refrigerated trailer, or ask a driver to insert a probe in the product now and then. Wiliot’s sensors, placed on pallets, cases, or individual units, give a more accurate picture of conditions, since temperature can vary greatly across small distances and over time.

“We were able to tell one customer that their fruit was being frozen not once but half a dozen times between the distribution center and the store,” says Steve Statler, chief marketing officer and ESG lead.

One grocery chain uses Wiliot’s system to track produce from field to store. This information helps the company, for example, make sure fruit that has been exposed to the most heat—and therefore is the ripest—goes onto store shelves first.

Wiliot provides application programming interfaces (APIs) to transmit data from the IoT pixels into applications used to monitor shipments.

“At the moment, our customers are some of the world’s largest companies; they tend to write their own apps,” Statler says. But smaller customers can incorporate the data into off-the-shelf software such as tracking solutions that are emerging in response to new food safety regulations.

Artificial Intelligence Instead of Probes

Another strategy for monitoring temperature in transit comes from EROAD, a New Zealand firm with a North American division based in San Diego.

EROAD’s CoreTemp system uses AI and proprietary algorithms to determine the actual temperature of product in transit without placing sensors on the freight.

EROAD developed CoreTemp at the request of trucking companies that no longer wanted to have their drivers stop periodically to insert probes in temperature-controlled products.

“Probes get lost,” says Dean Marris, the company’s chief data scientist. “Also, drivers are frustrated that they have to do this.”

Simulating Temperatures

To create custom algorithms, EROAD first develops a profile of the shipper’s most at-risk product, using highly accurate loggers to capture the load’s temperature at various locations in the trailer. Then data scientists use machine learning to determine what the temperature of the product would be in various situations, as temperatures measured by the refrigeration unit change over time.

These simulated temperatures provide a more accurate picture of how a load is faring in transit than a shipper could get just by tracking data from the refrigeration unit. For instance, a unit might register a spike in the temperature of the return air—air that the refrigeration unit pulls in to be cooled—when the trailer door is opened for a delivery. “But typically with the algorithms we develop, the temperature of the product changes a lot slower than what the return air will look like,” Marris says.

Companies currently using CoreTemp include Quality Custom Distribution, whose customers include Starbucks, Casey’s and 7-11.

Innovations in Packaging

While cold chains often rely on systems driven by electric power (called “active shippers”), for certain kinds of shipments, “passive” cooling is the norm. Passive cold chain packaging uses insulation plus a refrigerant, such as water ice, dry ice, or other chemical compound (known as a phase change material, or PCM) that absorbs heat as it melts and vaporizes.

Cold Chain Technologies (CCT) of Franklin, Massachusetts, provides passive thermal packaging for everything from pallet-sized loads to small parcels. Most of its customers ship life science products such as pharmaceuticals and biologics.

One major trend among these customers is concern about the environment. So, along with packaging for one-time use, CCT offers reusable thermal shippers, and shippers that can be recycled at the curbside. For example, Moderna’s COVID-19 vaccines in the United States were transported in reusable thermal containers from CCT.

Since many CCT customers ship high-value products, demand for visibility is growing as well. For example, if a delay occurs during travel, customers need to know how the temperature in the shipper is maintained.

“You want to monitor containers almost in real time, so you can prevent anything from happening and rescue the shipment,” says Amardeep Chahal, senior vice president, marketing and corporate development at CCT.

CCT works with numerous technology vendors, and with transportation companies such as UPS and FedEx, to provide tracking through its own web portal, CCT Smart Solutions.

The Case for Natural Refrigerants

The chemicals used for cooling in most refrigeration systems today—hydrofluorocarbons (HFCs)—have a massive carbon footprint. Their potential to warm the planet is many hundreds of times greater than the potential of carbon dioxide (CO2).

Since 2015, the not-for-profit North American Sustainable Refrigeration Council (NASRC), based in Mill Valley, California, has worked with food retailers, refrigeration manufacturers, and other stakeholders to encourage supermarkets to adopt refrigerants that do far less harm to the environment. Among these natural refrigerants, the top candidates are CO2, propane, and ammonia.

Refrigerants in supermarkets create pollution when gas leaks from the refrigeration systems. “Every grocery store has miles of piping and thousands of joints and valves, which makes the systems inherently leaky,” says Morgan Smith, program and communications director at the NASRC. “The average U.S. supermarket has an annual leak rate of about 25%.”

Switching to cleaner alternatives is no simple prospect. “Unfortunately, there are no very climate-friendly refrigerants that are drop-in solutions,” Smith says. A store would have to install an entirely new cooling system, which could shut the business for weeks and cost millions of dollars. As part of its work, the NASRC encourages governments to create financial incentives that make replacement projects more feasible.

Few stores have made the switch so far. But the NASRC is seeing progress. “When we were founded in 2015, the dialog was very different,” Smith says. “The industry as a whole wasn’t talking about natural refrigerants all that seriously.”

Now, policy makers are starting to focus on the problem. “That has done a lot to get the industry talking about natural refrigerants,” Smith adds.

The post Cold Chain Innovations: Turn Up the Chill appeared first on Inbound Logistics.

Industry leaders and mainstays share leadership tactics—from venturing out of comfort zones to embracing missteps—that allow supply chain managers to inspire others, build cohesive teams, and tackle logistics challenges.

How Supply Chain Managers Can Build Leadership Skills

Approach leadership as an ongoing journey, something to constantly work on. A mindset of continuous learning is your best asset for building and refining leadership skills.

Surrounding yourself with mentors you truly admire offers invaluable insights, guidance, and wisdom from those who have walked similar paths.

Actively soliciting feedback—both positive and critical—is paramount. It offers a mirror to your actions, highlighting areas of strength and potential improvement.

Complacency is the enemy. A persistent pursuit of betterment, a thirst for knowledge, and the humility to listen are the ingredients that constitute great leaders.

–Jose Barahona
Vice President, Sales
Magaya

Learn how to spot the connections between data, organizational directives, and data-driven actions. For supply chain professionals aiming to be leaders, this is essential.

The modern supply chain is data-driven. If you can master the art of connecting company initiatives to data-driven actions, you can lead an aligned organization objectively.

For example, assume your company’s initiative is to reduce shipping costs. Any initiatives to improve inventory accuracy can reduce shrinkage, reducing shipping costs. You can lead by making inventory accuracy a key performance indicator, making it easy to align the organization with an initiative that can make an impact at the organization level.

–Sankalp Arora
CEO & Co-Founder
Gather AI

Effectively communicating is key. Supply chain managers must lead within and across multiple functions, and it’s important to remember the individuals within these groups will all have different views and goals.

An effective supply chain manager needs to understand these differences, tailor their messaging, and connect with each key group.

–Jeff Bornino
President, North America
TMX Transform

Create a culture of embracing and learning from mistakes. Depending on the scenario, supply chain leaders shouldn’t penalize their teams for making mistakes (the first time), if the team or employee shows dedication.

Allowing members to experience initial failure without harsh consequences can be the best form of training because they can grow and conquer those struggles. People who learn from their failures can become your strongest team members.

–Bill Thayer
Founder & CEO
Fillogic

Step outside your comfort zone and solve problems with a high degree of autonomy. Supply chain managers are best able to build leadership skills when they are given these opportunities. Knowing they don’t always have the safety net of a micro-manager can help aspiring leaders depend on their instincts to move decisions forward.

It’s also vital managers set good examples for their teams and peers by embracing innovations and new processes, rather than being threatened by them. These skills are universal, but are especially important in the fast-paced and continually evolving supply chain arena.

–Harrison Dean
Executive Vice President
iGPS Logistics

Best Leadership Approach I Learned from a Mentor

Cultivate an open and honest atmosphere with your team. That means learning how to take bad news in stride.

People should feel comfortable coming to you on big issues. If you react strongly or negatively, you run the risk of creating a culture where no one wants to talk about problems until it’s too late to fix them. An environment that encourages collaboration and problem solving allows your team to stay ahead of the curve and find creative solutions.

–Barbara Melvin
President & CEO
South Carolina Ports Authority

Patience, as an old colleague recently reminded me, is everything. Every career has highs and lows, but if you remain committed to bettering yourself, believing in yourself, and staying focused on your long-term goals, the right opportunities will come.

For many of us, patience isn’t our strong suit, and we often wonder (or worry) where our journey will lead. But it’s so important to never give up.

Remind yourself that what you offer your organization is unique—your experience and integrity are yours alone, and they will guide you on your path.

–Hans Stig Moller
CEO
Odyssey Logistics

Understand your why. Remaining focused on why you do what you do is the only thing that will allow you to sustain the energy to keep pushing. Without a clear understanding of why, it’s easy to get lost in the day-to-day and not be an effective leader.

–Josh Dunham
CEO and Co-founder
Reveel

Lead from behind. The team will feel empowered to try out new approaches, and take chances, all the while knowing their leader is holding the safety net. A good leader knows their team; and, in turn, the team knows they would never set any of them up for failure.

I learned this from a seasoned leader in emergency management—an area where failure is hard to gloss over. In fact, he took it a step further. He told his team any failures on their part would be accepted as his own. This brought out the best in everyone.

–Dr. Darren Prokop
Professor Emeritus of Logistics
College of Business & Public Policy
University of Alaska Anchorage

The most impactful leadership I have witnessed was a mentor who lived sincere servant leadership. The approach created a cohesive and productive team. Each member was valued, and collaboration was emphasized.

Our team felt empowered by the collective mission to go above and beyond and find answers to issues that might have stalled them in the past.

After witnessing how putting your people first helps propel the overall goal, I have worked to embrace this in my workplace.

–Lesley Veldstra Killingsworth
Director of Traffic and Pricing
Polaris Transportation Group

Chairwoman of the Board of Directors
National Motor Freight Traffic Association (NMFTA)

The best leadership advice I received was to listen. For me this was counterintuitive, as my mental model of a leader was one who gave out directions. However, over the years I have seen the power of truly and actively listening.

Before leaders can provide direction, they must first listen to what is really happening and hear from various stakeholders.

While it’s easy to fall into multitasking while in meetings, one tip I’ve found helpful is to focus on the speaker and repeat in your head every word they say. Try it next time, you’ll be surprised.

–Alejandro Suarez
Director of Strategic Engagements
Realtime Robotics

A Winning Supply Chain Leader….

…paves a path to success with these simple yet powerful beliefs, that acting with integrity and putting people first produces positive long-term results. By going beyond what is expected, acting with integrity and honor, and always seeking out innovative solutions you’re able to combat current supply chain challenges.

Leading with consistency and reliable high standards reassures clients and vendor partners, providing peace of mind for all.

–Phillip Ousley
President
ASF Logistics

…never stops listening, learning, and growing. The greatest challenges and opportunities I’ve faced throughout my career have stemmed from navigating new territory, which has motivated me to continue to push forward.

Moving from ecommerce to strategy to operations and beyond has opened the door for me to take on new challenges and, in turn, grow my knowledge and organization’s capabilities.

I encourage everyone—no matter the position or role they have—to prioritize ongoing education and push themselves with stretch goals that provide the chance to learn new skills, meet new people, listen to different perspectives, and ultimately, become a well-rounded leader.

–Alicemarie Geoffrion
President, Packaging
DHL Supply Chain

…has a strategic vision in sync with the company’s goals, uses data to make informed decisions, and communicates effectively. They thrive in a changing landscape, tackle problems head-on, and collaborate seamlessly across teams.

Being globally aware, tech-savvy, and risk-conscious is vital. Always pushing for improvements and leading teams with inspiration and collaboration are key. Staying ahead in tech and adeptly managing risks ensure smooth operations and overall success in the complex world of supply chain management.

–Moid Alwy
Chief Supply Chain Officer
American Tire Distributors

…listens, and listens well. Whether it’s to the indicators of changing market dynamics, to the evolving and ever-changing needs of customers, or to the recommendations of the team of professionals he or she leads, a good supply chain leader knows that listening equates to learning.

With this skill, she or he encourages an environment of collaboration that, in turn, solves problems, creates solutions, and enables all stakeholders to navigate the relentless challenges of today’s market with agility, efficiency, and resilience.

–Hector J. Gonzalez
CEO Sales & Operations
PSA BDP

…teaches their team how to solve problems and gives them the practical industry knowledge to know how to execute those solutions.

The supply chain sits at the intersection of strategic planning cycles and daily firefighting, which is an exciting place to be, especially with traditional lines being blurred.

Those that can teach their team to look around the corners, predict, and plan for upcoming supply chain needs while having the acumen to resolve daily issues will certainly have a best-in-class organization.

–Reade Kidd
CEO
EDRAY

…provides the necessary big-picture guidance for their colleagues to understand the fluctuating needs of the customer, and the direction, strategy, and goals of the organization. But more importantly, the leader then gives people the trust and autonomy to make decisions, solve problems, and ultimately get things done without needless intervention.

By fostering a culture of trust and independence, a good supply chain leader not only lets people do their best work—but also ensures they develop the necessary skills and confidence to thrive.

–Harrison Dean
Executive Vice President
iGPS Logistics

…builds connections. Leaders must be able to connect and engage well with customers to ensure long-term relationship success. Being able to connect with employees equally—from warehouse workers to office workers—is also an important soft skill that enables team members to feel inspired and supported in the workplace.

–Rebecca Wilson
Group Vice President
Human Resources, Kenco

The post Leadership Playbook for Supply Chain Managers appeared first on Inbound Logistics.

One example is the partnership between The Convenience Group (TCG) and its distributor Harbor Wholesale.

During the pandemic, food distributor Harbor Wholesale served its retail customers such as The Convenience Group by offering flexible product selections and solutions.

The convenience store industry used to be perceived as purveyors of “gas, smokes, and cokes.” No longer. Many stores are raising the bar and providing a range of quality groceries and food products, says Don Rhoads. He heads a chain of nine—soon to be 10—TCG superettes in Washington state that range from 3,000 to 5,000 square feet, and offer sandwiches, produce, groceries, and other items.

Like many other firms during the pandemic, TCG struggled to access supplies. “We had to pivot,” Rhoads says. Fortunately, Harbor Wholesale was able to provide flexible product selections and substitutions.

Also during this time, TCG accelerated its technology implementation. Technology tools from Harbor Hub, a program of Harbor Wholesale, now play major roles in several areas. For instance, a unified inventory and order management program provides Rhoads with a detailed breakdown of different products’ performance. “These tools provide a new and innovative way to look at our business,” he says.

TCG also leverages a system from Harbor Hub that suggests alternatives when products are out of stock.

“In food service, there are no rain checks,” says Clyde Coleman, senior director of operations with food service distributor PFG.

TCG operates and franchises neighborhood convenience stores throughout Washington and Oregon. It leverages technology from its distributor for inventory and order management.

Moreover, the business environment remains challenging. Distribution often is a “penny-profit business,” explains Justin Craigwell-Graham, managing director with L.E.K. Consulting.

Like many companies today, food distributors are confronting labor pressures, a truck driver shortage, and inflation. That’s prompting many to try to rein in costs, through steps such as competitively sourcing key products, better managing damaged goods, and addressing logistics and operations inefficiencies.

Some private equity firms are working to build national or supra-regional brands in the food distribution sector. Their goal is to gain efficiencies in several areas, including purchasing and routing configurations.

Also driving efficiencies is technology, which has become “table stakes” in the industry, Craigwell-Graham says. To remain competitive, distributors need at least a basic online ordering system, some digitization of their point-of-sale system, and an automated route or fleet optimization tool.

Even as food distributors and transportation providers focus on costs and technology, providing superior service and building strong client relationships remain critical. This requires trust, transparency, and an understanding of each other’s businesses.

Here are a few case studies of companies doing just that.

Doing Good for Customers and the Planet

Moving SGSY’s temperature-controlled products to markets across the country can be challenging. The company relies on transportation partners that provide excellent service and help meet customer needs.

The mission of So Good So You (SGSY), a manufacturer of premium, probiotic plant-based functional beverages, is to deliver “good to bodies while also doing good for the planet,” says Angel Cisneros, director of distribution and logistics with the B-Corp certified company. As one example, renewable energy powers its zero-waste facilities.

In line with its mission, SGSY strives to “deliver what our customers want, when they want it, and at the best possible price,” Cisneros says. That can be a challenging endeavor when moving temperature-controlled products via less-than-truckload (LTL) shipments to markets across the country.

SGSY relies on transportation partners that understand its goals and share its vision of providing excellent service through on-time arrivals, timely communication, technology, and the flexibility needed to meet changing customer needs.

For about one year, So Good So You has been working with Bay & Bay Transportation, a family-owned trucking and logistics company. “Bay & Bay strives to provide a personal level of service geared to solve our transportation challenges,” Cisneros says.

Among other services, Bay & Bay provides dry and refrigerated full truckload and LTL transportation to SGSY’s major retailers, says Levi Hall, account manager with Bay & Bay.

At the start of their partnership, Bay & Bay took over a single lane. SGSY had been working with another provider that wasn’t able to consistently meet on-time delivery metrics required by a big-box client, straining the relationship and leading to substantial fines, Hall says. Since Bay & Bay assumed control of the lane, it has consistently maintained a flawless on-time delivery record.

Bay & Bay also worked closely with SGSY’s transportation management system (TMS) service provider to enhance electronic communication through EDI connections. This reduced the labor hours needed to maintain proper information in the company’s system. The initiative also standardized data and procedures.

“Being a continuously growing company means having to react to the changes and demands our growth creates,” Cisneros says. “Bay & Bay’s ready-to-go mentality has been key to ensure we deliver what our customers want when they want it.”

Leveraging a Rolling Warehouse

Bay & Bay provides dry and refrigerated full truckload and LTL transportation to SGSY’s major retailers.

Bartolotta LLC buys fresh produce, typically from California or Arizona, and transports it to the Northeastern U.S. About 15% of shipments head to retail companies, 25% to processors, and 60% to wholesalers, says Kevin Bartolotta, president.

The company partners with Radiant Global Logistics for several services, including its ability to provide rail cars that can act as “rolling warehouses,” for purchases that haven’t yet been re-sold, Bartolotta says.

While the ability to use trains for rolling inventory is a small piece of Radiant’s services, it can be an important one. “Produce is a commodities market, and Bartolotta often can read the market and forecast when prices will rise,” says Debra Sanford, Radiant’s vice president, sales and pricing.

Bartolotta can make a purchase, locking in a price. Within several days, the same load might be sold for significantly more.

Rail, although typically not as fast as over-the-road travel, is less likely to be impacted by weather delays, and the rates and schedules tend to be more stable, Bartolotta says. In addition, it’s possible to track shipments and monitor temperatures and other features.

“Radiant helped me expand my business by offering perks not available with over-the-road shipments,” Bartolotta says.

Streamlining LTL

As one of Performance Food Group’s approved LTL carriers, Old Dominion Freight Line provides key benefits such as delivering on time, coordinating delivery schedules, and transporting specialty products on demand.

For the past 13 years, PFG, a food service distributor, has used Old Dominion Freight Lines (ODFL) for LTL services and occasional final-mile deliveries. “ODFL has been instrumental in helping PFG streamline LTL services,” Coleman says.

Old Dominion provides direct LTL service to more than 99% of the country. As an approved LTL provider for PFG, ODFL offers several key services. One is ensuring products land at each PFG location consistently and reliably. Another is coordinating delivery schedules between PFG’s distribution center or inbound receiving manager and ODFL’s local service center operations team.

The benefits to PFG and its vendor base include reduced yard congestion and labor allocation, as well as an improved ability to serve customers. Many PFG vendors provide specialty products that typically aren’t inventoried in large quantities. Old Dominion can transport and deliver these on demand, says Ed Garner, director of national accounts for ODFL.

ODFL also provides visibility through several integrated systems. “From shipment pickup to final delivery, these data points are shared with both the shipper and the consignee via multiple interfaces including EDI, API, or other real-time methods,” Garner says.

“As we have expanded over the years, ODFL has kept up with our growing demands and has been able to maintain service levels,” Coleman says.

An Appetite for Technology

A tactical routing solution and big data portal provide visibility into Baldor’s delivery routes.

Technology impacts many industries, including the food distribution sector. Consider DSW Distribution, which operates more than 6.5 million cubic feet of warehouse space in Southern California that is temperature-controlled, organic-certified, and licensed for alcoholic beverages and pharmaceuticals, among other features.

The company’s initiative to convert its Food Safety Manual System (FSMS) from paper to paperless, was an “intense exercise,” says Brad Thayer, president and chief executive officer of DSW. The paper-based FSMS had taken decades to develop and consumed a roomful of binders.

To accomplish this shift, DSW leveraged a food safety management software system from Certdox. The new FSMS is now securely live on phones, tablets, and laptops—all of which feed into a secure platform.

The benefits include increased productivity, faster reporting, and chain-of-custody time-stamped electronic records. One month after going live with Certdox, DSW scored a perfect 100 on a Safe Quality Food (SQF) Level 2 Certification Audit.

Another food distribution company embracing technology is Baldor Specialty Foods, one of the largest distributors of premium fresh produce, specialty foods and other products in the Northeast and Mid-Atlantic regions. Baldor serves more than 13,000 food service, retail, and corporate accounts, including three-quarters of the Michelin-star restaurants in its regions, says Seth Gottlieb, the company’s senior vice president, logistics.

During the pandemic, when the company urgently needed to shift from restaurants to home delivery, Baldor reached out to Ortec, a supplier of mathematical optimization software. Ortec’s Tactical Routing platform enabled a quick and effective pivot. The Routing and Dispatch platform helps Baldor’s routing teams continuously improve their on-time record by using analytics configured within the Ortec Big Data Portal, which includes historical stop service times, along with other order-level data.

Baldor’s routing, analytics, and technology teams regularly collaborate with their counterparts at Ortec. The two companies also are working together as Baldor develops its strategic three-year roadmap.

“We’re fortunate to have a relationship that allows us to come to our partners with our goals for the years ahead and work together on collaborative solutions that maximize our use of the platform,” Gottlieb says.

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