AI technology really started to take off in the early 2000s as more companies began feeding machine learning algorithms with mountains of historical data, resulting in better predictions about consumer demand, inventory management, and market risks. Fast forward to the mid-2010s, and AI software started to become commonplace for its role in powering robotic arms and autonomous vehicles in warehouses.

However, those are all examples of traditional AI. Traditional AI solutions allow companies to program repeatable tasks and scenarios with minimal variability, such as picking up a tote and bringing it to a packing station.

Generative AI has the potential to get more creative, own more processes, and help stakeholders make better decisions based on real-time data.

Generative AI in 2024

Go down the AI rabbit hole on Reddit or Facebook, and you might come across arguments about how generative AI image generators or content producers are unethical because they mimic the style and capabilities of real artists. However, the ethical implications are less sticky in the global supply chain. Suppose an AI solution can learn from thousands of historical decisions made by real-world supply chain practitioners. Then, automating basic supply chain and logistics functions in an industry facing a years-long talent shortage becomes possible.

AI won’t change the supply chain overnight, but we should see steady technological progress in the next few years. Here are some of the things we might see from supply chain AI solutions in 2024:

• Better forecasting. Until the COVID-19 pandemic, forecasts were largely created based on historical data (basically, we hoped people would keep doing what they always did)—but those models no longer work. Generative AI lets companies analyze their full pool of historical data and stack it against other factors, such as inventory data, supplier data, distribution networks, and market trends, to create more accurate and resilient forecasts.
• Advanced warehouse robotics and automation. Generative AI will let robots handle more complex tasks than simple picking, offering support across sorting, returns management, and more. Additionally, modern AI software can analyze warehouse layouts and processes to reduce travel distances for robots and employees, optimize workforce planning, and orchestrate optimized interactions between workers and robots to improve warehouse efficiencies.
• Improved risk management. With generative AI, risk assessments will go beyond basic seasonal or templated event models by allowing supply chain practitioners to model specific events (like hurricanes, wildfires, recessions, and yes, even pandemics) to see what risks they pose to the organization’s supply chain.

Barriers to AI

You might remember several years ago, everyone thought blockchain would reshape the supply chain overnight. Yet, despite several successful pilot programs, progress for blockchain supply chain solutions has slowed significantly because of a lack of standardization.

Similarly, generative AI technology has much potential but is also relatively new. While it does seem inevitable AI will play a prominent role in the future of the supply chain, only time will tell exactly what that role looks like.

The post How Artificial Intelligence Will Impact the Supply Chain in 2024 appeared first on Inbound Logistics.

The Challenge

Aggreko was struggling with gaps in shipment payment data and needed better visibility, accuracy, and supply chain efficiency. “Every time we sent a shipment, we were almost starting from scratch; we were constantly in reactive mode,” explains Chad Thibodeaux, Aggreko NAM Transportation Manager. The company also wanted technology to help manage its complicated transportation network, improve procurement processes, and manage vendors.

“We’re high-maintenance,” quips James Hoogendoorn, Aggreko NAM Logistics Manager. “We needed a provider that wouldn’t be scared off by that. We wanted a logistics partner with the same intensity-driven mindset as ours.”

The Solution

Aggreko found an ideal partner in RedStone, a Kansas-based third-party provider (3PL). “RedStone didn’t run from our challenges,” Hoogendoorn says. In addition to the experienced RedStone management team, Aggreko gained access to the RedStone Latitude technology solution. Latitude provides real-time information for tracking and exception management, sophisticated reporting and analysis, as well as a best-in-class transportation management system (TMS).

Thibodeaux describes their partnership with RedStone as a major success: “We now have a tailored solution that captures data for every shipment and provides full visibility to crucial information such as length of haul, type of truck, dollar-per-mile cost, etc.”

RedStone helped Aggreko re-align procurement strategies by conducting a sweeping analysis to find opportunities for cost and performance improvements throughout their vendor network. Today, Aggreko and RedStone work together to continually analyze procurement effectiveness, identify ongoing opportunities, and find new vendors.

Nailing down accurate freight rates got easier as well, thanks to the custom freight calculator RedStone created for Aggreko. “We’ve always struggled with pricing freight accurately because we operate in many different markets using many different vendors,” Thibodeaux notes. The Aggreko team now uses this custom calculator as a quick, easy way to provide freight quotes.

RedStone also streamlined freight-payment processes by taking on accounts payable duties. Instead of paying hundreds of vendors, Aggreko makes one payment to RedStone, which manages individual payments.

With closely aligned philosophies, Aggreko and RedStone have developed a strategic partnership that supports the Aggreko mission. “When facing crisis events, our customers count on us to engineer solutions that allow them to continue being productive,” explains Hoogendoorn. “Ultimately, RedStone did exactly the same for us.”

To learn more:
solutions@redstonelogistics.com
888-733-5030
redstonelogistics.com

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WHO: OpenRoad | WHAT: Celebrating Its 20th Anniversary and Entering a New Era

OpenRoad’s story begins in the small, Pacific Northwest farming community of Dallas, Oregon. Mark Weisensee was first introduced to logistics by a friend in the industry, and although he had built a successful career in construction, he sensed an opportunity. Fueled by a passion for entrepreneurship, Mark and his wife Liz gathered their entire $6,000 savings and recruited two industry friends to create a small truckload brokerage.

Over the next 20 years, OpenRoad transformed. Many talented professionals joined the team, and they quickly expanded to include LTL and Intermodal. In 2018, OpenRoad initiated a team-based operational model that would enable the company to grow at scale. Specialized carrier reps, sales reps, and operations reps began working together to service customers, augmenting the strong foundation of cradle-to-grave freight brokers and agents on OpenRoad’s team.

In 2019, OpenRoad expanded further, establishing a Global Forwarding division and completing their comprehensive suite of services. Their added capabilities in air, ocean, and in-house customs brokerage enabled OpenRoad to serve any customer, anywhere in the world.

As the company grew, OpenRoad prioritized investments in cutting-edge technology, partnering with industry-leading tech providers to upgrade their platforms including everything from their TMS to their human capital management system. With financial responsibility a top priority, the company has remained committed to avoiding external funding to support the business. Coupled with their laser focus on pursuing opportunities that drive results, OpenRoad stands in its strongest financial position today.

Mark and Liz’s commitment to “get better every day” has fueled OpenRoad’s growth. With their people their first concern, they prioritized initiatives that supported their employees and the award-winning culture OpenRoad is becoming well known for.

And while the substance of the company has remained unchanged, the last 20 years have produced a nearly unrecognizable OpenRoad from the humble company that started in 2004. To reflect their remarkable growth and expanded services worldwide, the company recently unveiled its refreshed logo and new name—OpenRoad Global. Their modernized look communicates their service scope, confidence, and proficiency, while also honoring their rich history of service, entrepreneurship, and grit.

As OpenRoad faces the next 20 years, the company is prepared to meet the market with renewed energy. Their solid infrastructure will underpin their ability to serve any customer, with the new name and look accurately reflecting the heart of their mission—to empower global business through personal and modern logistics services. OpenRoad’s core values of helping others succeed, working with a sense of urgency, and following through on all commitments are the immovable pillars that will carry the company forward. And most importantly, OpenRoad will continue to evolve to meet the needs of their people and customers, in pursuit of their overarching vision: To inspire excellence through our passion for continuous improvement and unwavering care for people.

The post OpenRoad’s Bold Brand Refresh Marks 20 Years of Logistics Excellence appeared first on Inbound Logistics.

In the complex world of rail logistics, the capacity to manage data effectively and maintain data visibility is of utmost importance for operational success. Understanding this, RSI Logistics encourages finding better ways to manage, handle, and learn from the complicated data involved in the rail industry, and to help others form strategies to effectively capture, manage, and distill valuable insights from their data.

A client of RSI Logistics found themselves stuck, being forced to sift through important data via manual processes. These inefficiencies not only jeopardized the quality of client service delivery but also posed substantial threats to progress. The overarching objective for RSI Logistics was, therefore, to construct an efficient solution capable of surmounting these shortcomings.

To overcome this challenge, RSI Logistics helped create a custom dashboard for the client.

The client struggled with the management and analysis of their data. Their existing system was predominantly reliant on manual data entry and management. This resulted in processes that were time-consuming and opened the door for potential inconsistencies due to inevitable human errors.

Past failures in the company’s attempts to design a trustworthy and reliable system illuminated the complexity of the data management challenge that was present.

The Solution

To overcome their client’s challenge, RSI Logistics developed a custom dashboard tailored to meet the client’s needs with unmatched precision and accuracy. This dashboard combined data from different places and made it easy to see and understand through clear visuals. The result was a facilitation of smooth data integration across a multitude of systems while providing clear data visualizations.

By incorporating real-time updates, the need for manual entry was eradicated, allowing the client to vastly improve their efficiency. The interactive, highly customizable features empowered clients to adjust the interface to align with their specific needs. Furthermore, the one-click automated reporting capabilities enabled the generation of accurate reports, amplifying the tool’s utility and effectiveness.

The creation of this custom dashboard resulted in the significant streamlining of data management processes. It drove operational efficiency to new heights, enabling the client to make firm, data-driven decisions that ignited confidence.

RSI Logistics’ custom dashboard yielded numerous benefits for the client: It simplified data management, saved time, improved data accuracy, reduced redundant costs, and enhanced operational efficiencies. This allowed the client of RSI Logistics to witness firsthand the immediate improvements in their data management and reporting capabilities.

This case study highlights the pivotal role technology can play in modern logistics. It illustrates the power of transformative solutions in bridging operational gaps and strengthening client relationships, favoring the continuous growth of organizations and the industries they serve.

To learn more:
info@rsilogistics.com
517-816-4568
www.rsilogistics.com

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Logistics Plus (LP) is a leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology, and supply chain solutions.

A United States-based aircraft parts supplier approached Logistics Plus with a warehousing challenge. The client moved into a new 550,000-square-foot warehouse earlier in the year to handle the storage and fulfillment of their products.

The client started running into inventory issues and incorrect reporting in their warehouse management system (WMS) only a few months after beginning operations. So, they called Logistics Plus for help.

THE SOLUTION

Within three days of being asked to help solve the issues, LP sent 10 of its own warehouse employees from its West Coast warehouses (Phoenix, AZ and Chino, CA) to work on-site at the client’s warehouse until the issues were identified and solved.

The LP team started by breaking the project down into three phases. Phase 1 was identifying the root problem. LP determined the warehouse’s rotating temporary workers were not appropriately trained in using the WMS, and the inventory wasn’t properly flagged nor scanned into the system when it arrived or left the warehouse. Phase 2 of the project involved going through the warehouse and re-scanning every piece of inventory. As pallets were scanned, the team flagged all items that were not in the proper location.

After the inventory was accounted for, and issues were flagged, Phase 3 began. This involved moving all of the flagged inventory to the proper location and entirely re-staging the product. Additionally, the inventory that was incorrectly tagged was sorted by location codes. Tags were also added to different locations of the pallets so that each item could be easily identified and located. After this was completed, the team updated the client’s WMS to reflect actual inventory levels.

THE RESULTS

With LP’s rapid response time and warehousing expertise, the client now has complete and accurate visibility of its inventory levels. The warehouse is staged in sections to allow the warehouse workers to quickly scan, identify, and pull products from the proper locations.

The LP team will remain on-site for the foreseeable future until the client is comfortable with the system and process that was put into place. Logistics Plus continues to grow its relationship with the client and remains ready to assist with any new supply chain challenges.

As a 21st-century logistics company, Logistics Plus was able to leverage its can-do culture to help fix the client’s inventory issues within a matter of days.

To learn more:
contact@logisticsplus.com
1-866-LOG-PLUS (564-7587)
www.logisticsplus.com

The post Logistics Plus Warehousing Team Solves Client’s Off-Site Warehouse Inventory & System Issues appeared first on Inbound Logistics.

Q. How can shippers manage the risk of disruptions from carrier financial instability?

A. Shippers must have processes to ensure they work with fiscally sound transportation providers. Most carriers willingly share this information to prove they are a reliable partner. Properly vetting carriers or using a 3PL that has a thorough vetting process also mitigates risk during a period of volatility.

It’s critical to build relationships with reliable carriers and brokers regardless of the financial environment so a shipper isn’t in a situation where they may need to use a provider that isn’t well-known by their organization.

Q. What red flags should shippers watch out for when assessing a transportation provider?

A. Beware of carriers that have had their authority less than 90 days or have an unexplained lapse in their authority. Make sure their safety rating is not conditional or unsatisfactory with the FMCSA. This status may indicate a carrier operating with unsafe equipment or fraudulently reporting their drivers’ information. Services like TIA Watchdog can also help identify brokers or carriers that have operated unethically or fraudulently with another company. Onboarding and compliance providers, such as Carrier411, Highway, and RMIS, can help weed out unsavory providers.

WSI uses these safeguards to select ethical and compliant carriers. We vet them by reviewing safety records, confirming insurance coverage and authority, checking for any TIA Watchdog reports, and researching any issues in Highway before we invite them to go through our onboarding process to become approved carriers. Our system sends alerts if any carrier falls out of compliance, and they are immediately prohibited from being sent any load tenders.

Q. Can shippers find efficiencies amid the current market conditions?

A. Whether it’s a shippers’ or carriers’ market, having a great rapport with carriers will help ensure a shipper gets the best rates. Shippers can also implement regular RFPs to maintain adequate capacity and accurate rates from carriers as the market adjusts.

Q. How can shippers build partnerships with stable transportation providers?

A. Be truthful and thorough with carriers. Letting a provider know exactly what your expectations are and the complete details of a shipment goes a long way with both carriers and brokers. When you’re negotiating, be realistic with pricing based on market conditions. Asking a carrier to meet a rate well below the market is one way to make them avoid working with you in the future.

Once a great carrier is onboarded, keep using them. The more business you direct toward a carrier, the better overall pricing and service you will receive.

Kelley Stiles is the director of transportation at WSI Freight Solutions, LLC—WSI’s transportation brokerage division. Stiles and her team work closely with WSI’s carrier base to deliver reliable logistics and fulfillment services nationwide.

The post How Shippers Can Manage Risk During the Great Trucking Recession appeared first on Inbound Logistics.

To do this, companies are turning to artificial intelligence (AI). Here are five ways logistics providers can leverage AI to operate supply chains sustainably and cost-effectively.

1. Logistics planning. AI can process vast amounts of data to optimize the movement of goods. Food shippers and logistics providers are now applying machine learning algorithms to accurately predict shipment ETAs across all transportation modes. For ocean container shipments, AI systems can accurately forecast weather conditions and diagnose the impact of disruptive events along each shipment’s route.
Due to multi-terminal stops and widely variable transit times, predicting arrival times for less-than-truckload (LTL) shipments has previously been a challenge. With AI, shippers and logistics providers can predict LTL shipment delivery times within minutes.

2. Mode management. According to the Massachusetts Institute of Technology (MIT), over-the-road hauling can emit over 100 times as much CO2 as ships carrying the same freight amount. Data from the EPA shows moving cargo by rail rather than truck lowers GHG emissions by up to an average of 75%.

Leveraging AI for sustainable network optimization makes it possible to analyze vast internal and external data to create multimodal transportation solutions. Furthermore, introducing sustainable alternatives can cut a shipment’s transportation costs by around 60%.

3. Shipment consolidation. Milk-run shipments can prevent stockouts; however, shipments may occur before truly needed, run partially empty or require additional material handling and equipment that severely strains sustainability.

With AI, food shippers and their logistics partners can determine the best cadence for cargo that balances service requirements with sustainability. Doing so reduces the need for additional over-the-road truck movements that generate harmful emissions.

4. SmartWay selections. The SmartWay program tracks, documents, and shares information about fuel usage, freight emissions, and environmental risks across the supply chain. Freight shippers, carriers, and logistics companies voluntarily partner with the EPA to measure and improve operations to reduce their ecological footprint.

With AI, logistics partners can prioritize top-ranked fleets using SmartWay data without manually filtering through thousands of transportation providers. Additionally, AI can examine data retrospectively to make future recommendations, advancing sustainability goals with minimal supply chain disruptions.

5. Working in the warehouse. Estimates show that 90% of warehouses primarily rely on manual processes, creating space and energy inefficiencies. By turning to technology, these companies can increase throughput while decreasing the environmental footprint.

Innovations like dynamic slotting use AI algorithms to decrease inventory space. AI improves inventory management by predicting demand, tracking current inventory and optimizing stocking levels. AI can suggest an appropriate box size based on an order’s dimensions to minimize packaging waste.

AI will continue to rapidly evolve and change the landscape of industries across the board. At the end of the day, a successful business is people-centric and technology-enabled.

To learn about the full scope of Jarrett’s AI strategies, visit www.gojarrett.com.

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As the pharmaceutical industry has grown and pharmaceutical companies expand their product lines, an emergent need has arisen in the industry. The bottom line is, as pharmaceutical companies have expanded their product lines and industry demand for products has grown, there is a lack of support for pharmaceutical manufacturing components.

These companies have grown so rapidly they can no longer support the storage of components for their products in house, and are looking externally to knowledgeable service providers within the life sciences and pharmaceuticals industry to remedy this need. The southeast is home to a large concentration of life science and pharmaceutical companies, specifically within the Research Triangle Park (RTP) area of North Carolina.

The Solution

With nearly 30 years of experience in the life sciences and pharmaceuticals industry, MD Logistics operates four state-of-the-art facilities in Plainfield, Indiana, with an additional facility in Reno, Nevada. When met with additional client demand, MD Logistics began to explore the opportunity to bring their expertise as a third-party logistics provider within the life sciences and pharmaceuticals industry to the southeastern United States. Understanding the need to be in the region, MD Logistics chose to bring their service offerings to the RTP, North Carolina market.

Experience. MD Logistics has a long and storied history within the life sciences and pharmaceuticals industry, one with many of the companies who already have a presence within the southeast region. Their experience within the industry and with these providers makes them a natural fit to provide services within this region.

Nimbleness. MD Logistics has built a business on being responsive to the needs of clients and the greater industry. As client needs and industry demand fluctuate, MD Logistics has a history of quickly responding and pivoting to provide customized supply chain solutions for clients. The increased need within the industry to provide support for manufacturing components showcased how quickly the team at MD Logistics was able to respond to this need.

Network. The MD Logistics network of state-of-the-art, U.S.-based facilities provides an ease in which an organization’s goods can flow through the supply chain, from manufacturing components to finished goods, if need be.

If you are in need of a 3PL provider who specializes in the life sciences and pharmaceuticals industry, located within the southeast, reach out to the MD Logistics team of supply chain experts!

To learn more:
info@mdlogistics.com
317-838-8900
www.mdlogistics.com

The post Providing Pharmaceutical Manufacturing Support in the Southeast appeared first on Inbound Logistics.

As an entrepreneur I can attest smaller companies are efficient because it’s required for them to survive, as they do not have the resources of larger organizations. Likewise, larger operations are often formed through acquisition where they currently operate as silos, or they were never properly assimilated.

They also tend to give local P&Ls autonomy— creating scenarios where one location is head and shoulders above others in the company even though they perform the same function in the same industry with the same access to resources and often with the same leadership.

If the organization meets its goals, or performs better than the previous year, its MISSION ACCOMPLISHED and time to focus on the upcoming quarter, year, etc. It’s only during downturns that emphasis on analytics, processes, best practices, and a thorough look in the mirror occur. Unfortunately, we’ve found it is during the good times these companies often miss the greatest opportunities.

Q. So, what’s missing?

A. Analytics, humility, and an unbiased facilitator. Almost everyone has data, but very few have good information to make decisions. This is where analytics becomes important.

Most of our customers are profitable organizations, but as a facilitator we demonstrate there are opportunities for them to increase their revenues, reduce their costs, and improve their company.

We also show them paths to recognize these opportunities as we strive to familiarize ourselves with their operation(s). It is not always an easy conversation to have, and we can come across as confrontational or unpleasant. If a customer isn’t ready to look at their operations, the consulting gig may be a short one, but to be effective we are both unbiased and direct.

Q. What can any employee or organization do now?

A. Learn data! I don’t mean learn how to read reports, but learn database infrastructure, learn how your data is collected and stored, and learn what is available. In today’s environment there are free BI tools that are designed to be user friendly, can connect directly to SQL databases, and can easily create real-time dashboards. The keepers of the data, and those that know how to turn it into information (whether internal or an external resource like Tansect), are valuable competitive advantages to any corporate puzzle. Coding is the next best thing, but you don’t have to be an IT professional to do analytics effectively.

Second, find ways to communicate and share/train across the barriers. Your organization has best practices and I promise they are not all within your sphere of influence, and those that are within your sphere are probably not being shared.

Michael Heisman earned a BBA from Georgia Southern University in Marketing/Logistics and an MSc in Science-Supply Chain from Cranfield University (England). After gaining operational and management experience in 3PLs, trucking, fleets, brokerage, warehousing, engineering/optimization, and air transport, Heisman started Tansect as a consulting and solutions firm specializing in supply chain, supply chain technology, analytics, and continuous improvement.

The post You Should Be Asking What You Left on the Table! appeared first on Inbound Logistics.

Q. What are the key advantages of a beneficial warehouse management system?

A. Its DNA should be adaptable, flexible, and scalable to be able to start at a low entry point while guaranteeing exponential expansion.

A warehouse management system gives clients the “keys to the car”—giving them the power to extend functionality on the fly without custom coding and time-consuming plans.

Essential modules such as proprietary Warehouse Control System/WCS, natively integrated with WMS, and advanced module for interfacing, allow a seamless integration into any automation with minimum configuration by the client and not necessarily the WMS vendor’s development team.

A top warehouse management system rapidly onboards new clients who will witness rapid and significant improvements. It is essential you offer exceptional customer experience right from the start without any additional labor costs.

Q. What criteria are significant when choosing a WMS partner?

A. Speed of implementation: Ideally, you should look for WMS 3PL solutions that get your new client implemented in 12-24 weeks. The faster your system is online, the sooner you get back to focusing on all of your clients.

Warehouse control tower: To revolutionize operations with real-time analytics.

Billing and cost management: To undertake the full control, calculation, issuing, and maintenance of all invoice data concerning warehousing activities.

Client-facing portals: To retrieve information on stock and order status in real-time, to submit orders and ASNs, and in general access and interact with the company through a multi-channel communication infrastructure.

Expert customer support: Seek out WMS vendors that offer ongoing maintenance, local technical support, and training.

Slotting capabilities: Use optimal methods to maximize space utilization and labor productivity and benchmark your DC operations with the best-of-breed of your industry.

Increased productivity through automation: Automate logistics to reduce costs and improve tedious manual tasks.

Client and location multi-tenancy: To support multi-tenancy for clients and locations for increased productivity and use of your locations especially in ecommerce.

Parcel & LTL management: Maximize delivery efficiency and reduce costs by simplifying shipments.

Ecommerce platforms: Empower your multi-channel clients with pre-integrated marketplaces.

Cross-docking: Reduce costs and increase speed and the space needed in your facilities.

Returns: Select a WMS with ultimate reverse logistics performance.

Total cost of ownership: A system with limited functionality and poor performance has major costs associated, even if the upfront cost is low.

Mantis, an international WMS vendor, has extensive experience in the 3PL industry with successful implementations in complex warehouse and distribution operations.

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