Almost all online shoppers in the markets surveyed shop at marketplaces—third-party e-commerce sites that let multiple merchants sell products. In Mexico, 99 percent of shoppers report making a marketplace purchase, compared with 98 percent in Asia and 96 percent in both Europe and Canada. The top reasons for using marketplaces are better prices and free or discounted shipping.

Global competition for customers is increasing, with a significant number of online shoppers in Canada (83 percent), Brazil (81 percent), and Mexico (78 percent) buying from international retailers. In the United States, nearly half (47 percent) of shoppers make international purchases. Consumers shop internationally primarily for better prices and access to specific or unique products.

Most global shoppers also use mobile devices to search for products, compare prices, locate stores, and track deliveries, more reason for retailers to think “mobile first.” At least 70 percent of respondents in all regions use smartphones to compare prices while in stores.

Meanwhile, shoppers expect quick fulfillment of online orders and speedy delivery across all regions, but expectations for what counts as quick delivery differ (see chart). Consumers in Asia, Mexico, and Brazil expect to be able to place orders later in the day and still be eligible for same-day and next-day delivery.

Across all regions, consumers make online return purchases. U.S. shoppers (44 percent) are the most likely to return an online purchase, while shoppers in Mexico are the least likely (22 percent). When both return options are available, shoppers in Asia and Europe prefer to ship online purchases back to retailers compared to consumers in the United States, Canada, Mexico, and Brazil, who prefer to return online orders to a physical store. Among those who prefer to ship returns to a physical store, ease and free shipping returns are the leading reasons for this preference across all regions.

New retail developments that may play a role in the industry’s future include online marketplaces and technologies such as robots and chatbots, notes the study. Retail consumers are more open to some new technologies, but skeptical of others. When asked about the appeal of robots in stores, more than half of consumers in the United States and Canada are not convinced, preferring to interact with a person.

While face-to-face assistance is preferable in the store, respondents prefer self-service options online. The comfort level with using chatbots for tasks such as getting product information is highest in the United States (65 percent) and lowest in Mexico (45 percent).

The post E-Shoppers: It’s a Mall World appeared first on Inbound Logistics.

“Supply chain is an untouched territory of future developments,” says Charlotte de Brabandt, megawatt winner, Rising Supply Chain Stars program.

Saving more than $10 million, updating technology across 8,900 stores, explaining results from a 27-country region to top management, and increasing forecast accuracy with new digital tools are just some achievements of the latest winners of the Institute for Supply Management (ISM) and Thomas 30 Under 30 Rising Supply Chain Stars recognition program.

Now in its fourth year, the ISM/Thomas program, intended to help bridge the talent gap in procurement and supply management, honors individuals who are 30 or younger and demonstrate leadership, innovation, collaboration, and other outstanding attributes—at work and through their professional associations.

Working in the United States, as well as Spain, Switzerland, and Singapore, the honorees are making their mark on the manufacturing industry (with the highest concentration of winners), as well as the military/government, aerospace and defense, business services, healthcare, oil and gas, pharmaceuticals, and utilities.

For example, megawatt winner Charlotte de Brabandt, a category associate with Johnson & Johnson, speaks five languages and has traveled to more than 60 countries. At Johnson & Johnson, she created a market engagement program for global energy procurement for 920 sites across three continents, and achieved final savings equivalent to one year in a three-year contract.

For a full list of these rising supply chain stars, see: 30under30.thomasnet.com

The post Supply Chain’s Rising Stars appeared first on Inbound Logistics.

With notable giants such as Amazon dominating the supply chain sector, it may be no surprise that the majority of respondents—84.7 percent—perceive themselves as average to behind the curve. What is surprising is that the largest group—50 percent of total respondents—report that they still aren’t implementing any new technologies (see chart). Only one in five of those reporting that their companies aren’t implementing new technologies believe this stagnation is the wrong move, reflecting the lack of desire to change.

On the other hand, of those who say their companies are looking to implement new technologies (36.7 percent), more than two-thirds (69.4 percent) report their organization has already started its digital transformation. This is often the case—companies will delay change, but once they get started they’ll shoot forward along the path to digital maturity, according to Janeiro Digital.

So how can companies kickstart their digital transformation journey?

The biggest challenge supply chain professionals say their organization encounters when looking to implement new technologies comes down to culture. Specifically, a lack of enthusiasm or support for change (23.5 percent) and unrealistic budgets (27.6 percent) are prominent issues, which point to the lack of appetite for change and a reluctance to put resources behind digital innovation.

Another prominent issue is legacy technology or infrastructure. Although only 4.1 percent of respondents feel their legacy technologies are holding them back from implementing new technologies, 23.5 percent indicate that they have encountered issues when it comes down to implementation.

In supply chain and logistics, tight margins make investments in new digital technologies feel risky. Inaction, however, is the riskiest long-term strategy a business can take. The decision to innovate, and ensuring you’re taking an approach to innovation that considers the technical realities of the business, is essential for finding long-term business stability and success, says Janeiro Digital.

The post Digital Supply Chains: The Modernization Gap appeared first on Inbound Logistics.

When selecting a freight bill processor, look for best-in-class providers that:

• Never co-mingle clients’ funds with their own operating cash.
• Will not use client funds for any purposes other than to pay carriers.
• Have their financial statements audited by a reputable public accounting firm annually.
 
     
   
     
 
• Confirm the soundness of their internal controls by having a SSAE 18 (Statement on Standards for Attestation Engagements No.18) Type II and an ISAE 3402 (International Standard on Assurance Engagements 3402) Type II performed annually and share their auditors’ reports with prospective clients.
• Have a significant (approximately $50 million) employee dishonesty bond in place.
• Have no or minimal debt.
• Are Privacy Shield Framework certified to ensure compliance and commitment to data privacy. Shippers with European Union data should look for freight processors that are GDPR-compliant or working toward compliance.

In addition, shippers should ask their carriers about freight payment vendors that make payments to them. Carriers can identify those who make payments according to the shipper’s instructions and those who do not.

Carriers are also a good source of information as to the quality of the vendor’s audit and how well the vendor responds to their inquiries.

—Harold Friedman, Data2Logistics

The post Choosing a Freight Bill Processor appeared first on Inbound Logistics.

At the same time, robotic warehousing and logistics technologies are advancing in capability and becoming more affordable each year. The demand for robots and the supply of advanced robotic solutions to optimize logistics processes, combined with labor shortages, have created a tipping point that could lead to widespread adoption of robots in warehouses and logistics operations to assist and displace human workers.

Tractica forecasts that worldwide shipments of warehousing and logistics robots will grow rapidly over the next five years from 194,000 units in 2018 to 938,000 units annually by 2022, with the rate of growth slowing after 2021 as many major players will have adopted robotic systems by then (see chart above). Worldwide revenue for this category will increase from $8.3 billion in 2018 to $30.8 billion in 2022, providing significant opportunities for established participants and emerging players.

"The warehousing and logistics robot market is experiencing strong growth, and supply chains are being transformed as companies replace fixed infrastructure and outdated processes with flexible, scalable robotic solutions to meet the changing demands of modern commerce," says Glenn Sanders, senior analyst, Tractica.

The post Robots on the March appeared first on Inbound Logistics.

Share information. Data is generated constantly throughout the product journey. Still, there are too many gaps in the available data. For example, you may have information about a specific shipment from one location to another, but does it connect to any data related to the order’s placement, or its final destination? Having end-to-end visibility can help maximize efficiency by revealing opportunities for optimization. A centralized data management system allows you to view and monitor the different steps of the product journey holistically.

If you want to have a clear view of live data coming from a variety of different data sources and real-time systems, dashboards work great. If you have real-time data coming from, say, an active barcode on a package or truck with GPS tracking, you need a real-time way to analyze it. If you can spot trends in the data as fast as it is coming in, you can make immediate improvements and gain meaningful insights. Streamlining and reporting using one dashboard leads to better communication and provides more opportunity to gain actionable insights from the data.

Clean up your data. Data cleaning is the process of identifying and fixing or removing inaccurate information from your data network. Companies that do not have a plan in place to build and maintain data cleansing will run into some major roadblocks the more data they collect.

The first step is to develop unified data standards for recording information. When you fail to do so, data is more difficult to use and share with others. This leads to further gaps in your data. Another simple change that you can make for cleaner, higher-quality data is to stop having employees enter data manually. Instead, automate your systems when possible to streamline your process, mitigate human error, and clean up existing data.

Invest in more technology and talent. If you want to manage data more effectively, you need to treat analytics and data reporting as more than just a side project. Give it the focus it deserves by investing in more effective technology and data talent.

From optimization to automation, many great technologies can help logistics companies run as efficiently as possible. Just make sure that you have the right systems in place to manage, analyze, and visualize all the data coming in from various sources.

When developing talent, you can form your data team internally or use an external consultant, depending on what makes sense for your business. To move the needle quickly, an external team that specializes in AI, machine learning, and logistics, may be your best option.

—iDashboards

The post Leveraging Data for Speed and Efficiency appeared first on Inbound Logistics.

The results provide a clear view of the road that shippers traveled in the previous year. The findings, as they relate to 2018, may not come as a big surprise to many who had a direct involvement in supply chain management. Nonetheless, they confirm that certain issues were widespread. At the same time, the feedback illustrates the service challenges shippers experienced and how they chose to react.

Ultimately, tight capacity and increasing freight costs were the bane of 2018. Boosted by a consumer recovery that began in 2017, supply chain operations were at the same time hindered as the trucking industry adjusted to the electronic logging device mandate that went into effect in late 2017.

When Averitt asked shippers about their outlook on¨the state of supply chains in 2019, there was a stark contrast from the year before. The results show a rising anticipation that shipping volumes will head downward. From an economic standpoint, the results correlate with analysts’ general predictions.

Last year was also a hot one for most industries
 that experienced relief from tax overhauls. This year, however, the steam may start to escape as worries about international trade relations continue to grow.

Among the key findings:

• 26.05 percent of shippers experienced challenges with freight capacity in 2018.
• 69.59 percent expect to ship more freight in 2019 than last year—a 6.3 percentage point decrease from the previous year’s survey.
• 41 percent view trade tariffs as having a negative impact on their business in 2018, compared to only 5 percent who report positive effects.

From the driver shortage to trade wars, shippers faced challenges at nearly every point in the supply chain. While perception of the near-term economy may indicate a slowdown in freight movement is looming, shippers and carriers should not dismiss past challenges.

Freight capacity will likely remain a hurdle for shippers for years to come. The driver shortage continues to grow and will likely carry on for the foreseeable future. To that note, plan ahead as much as possible and work closely with your transportation partners. Two-way communication will be crucial to the success of both shippers and carriers.

As the year continues, all eyes will be focused on the state of international trade. Reshoring and nearshoring of manufacturing may see a surge as more businesses look to bypass the increased costs of managing a global supply chain.

At the same time, we may also look forward to a year that could usher in new agreements that will help businesses grow both at home and abroad.

When Averitt asked shippers what kind of impact trade tariffs had on their business in 2018, the response was a stark contrast to the perceptions gauged in 2016. A majority said the negative impact was higher supply chain costs. One key issue that importers experienced is the inability to find more cost-efficient domestic sources for raw materials and products.

The post Despite Challenges, Shippers Forge Ahead appeared first on Inbound Logistics.

To combat the driver shortage, Walmart is giving its drivers a $0.01 per-mile increase and a 50­-cent increase in activity pay for arrive and arrive/drop occurrences. That means Walmart drivers will now be paid up to one dollar every time they arrive at their destination and drop a trailer.

With this increase, Walmart drivers can earn an average of $87,500 in their first year of employment with an all-­in rate of nearly 89 cents per mile. Furthermore, in the Northeast region, Walmart is offering a 5-percent premium on mileage and eight different activities.

The company also dramatically revamped its hiring and onboarding program, shortening the application and onboarding time by more than 50 percent.

Each year, Walmart’s 8,000 drivers travel more than 700 million miles and deliver millions of cases of merchandise to 4,700 Walmart and Sam’s Club locations across the nation. To drive for Walmart, a commercial driver must have at least 30 months of full­-time experience with no serious traffic violations in the past three years.

The post Walmart Rolls Back Driver Shortage Concern appeared first on Inbound Logistics.

Intermodal freight volumes posted a fourth-quarter growth rate of 4.2 percent year-over-year, while quarterly international intermodal volume increased by 5.5 percent and domestic containers grew by 3.4 percent. Trailer loads fell 0.1 percent, the first time since 2016.

"All intermodal markets recorded an increase of at least 4.9 percent, and all regions saw traffic climb during 2018," says Joni Casey, president and CEO of IANA. "While we did see some year-end tapering, total volumes increased 5.6 percent for the year."

The seven highest-density trade corridors accounted for 62.6 percent of total volume and were up collectively 5.1 percent for the fourth quarter. Growth ranged from 13.1 percent in the Midwest-Northwest corridor to 0.9 percent in the Trans-Canada lane. The South Central-Southwest lane advanced 9.7 percent, while the Intra-Southeast was close behind with 9.4 percent. The Southeast-Southwest lane booked a 7-percent gain, and the Northeast-Midwest corridor saw a 5.7-percent increase. The Southwest-Midwest managed 1 percent.

Intermodal marketing company volumes fell for the first time since Q1 of 2017. Solid 4.5-percent growth in intermodal loads largely offset the 6.3-percent drop in highway loads.

The post Intermodal’s High Five appeared first on Inbound Logistics.

The center of the operation is currently under construction in Fremont, Nebraska, population about 26,000. Cement trucks come and go as crews line up concrete walls and steel beams for a processing plant, hatchery and feed mill. Around 100 new chicken farms in the area will be under contract to raise the birds.

When it reaches full capacity, the plant will process more than 2 million chickens per week. Some will become rotisserie chickens, and others will be sold as parts.

"All of our barns in Nebraska and Iowa collectively will supply about 40 percent of Costco’s needs," says Jessica Kolterman, a spokeswoman for Lincoln Premium Poultry, a company Costco started to build and manage the project. "That will cover roughly the western half of the United States, Alaska, and Hawaii."

Costco sells approximately 60 million rotisserie chickens each year, Kolterman says. Building a system to stock its own stores is a way for the company to better manage supply and costs, especially because poultry companies are trending away from raising chickens to be sold whole.

—Fred Knapp/NET Nebraska

The post Costco Chickens Out appeared first on Inbound Logistics.