This post comes to us from Adam Robinson of Cerasis, a top freight logistics company and truckload freight broker.
The digital supply chain is basically a term that defines a supply chain whose foundation is built on web-enabled capabilities. At the moment, many systems are hybrid, meaning that supply chains normally use a mix of paper-based and IT-enabled processes. In its definition, real or true digital supply chain management goes beyond the conventional hybrid system and makes use of connectivity, system integration, and the information-producing capabilities of its key components.
In essence, digital supply chains aim to minimize waste and bring greater profits, whilst being a truly efficient system. Just remember, like asking for writers’ help to minimize the waste of your time, such a system will bring about benefits — like savings in basically every area, meaning better utilization of time and money, not forgetting a drastically reduced environmental impact. Unrivaled efficiency and better client connection will be realized by the employment of technology to aid the functionality of such a system. Examples of such technologies are GPS tracking, barcodes, radio frequency identification (RFlD), smart labels and wireless sensor networks. In such a setup, performance and data security are key, and, as such, cloud technologies working with web services to provide efficient collaboration and trade partner visibility.
In the course of operation, the business is exposed at multiple points across its stages of supply chain. Complexities are evident even in highly integrated organizations, which can have thousands of suppliers, with the range of transactions making it really difficult to track what is being supplied and when, making supplier risk management limited. With such a situation, there is poor visibility of risk areas, and the impact of such if not properly handled poses a threat.
Below are the easy steps that will help one take a relatively easy and flexible approach in making your digital supply chain management balanced and resilient. The result will enable companies to have a fully modeled network that helps you deal with disruptions in the supply chain, even anticipate them. It will enable adjustment of the system as conditions change, making it flexible and adaptable.
For a truly successful transformation of the existing system into a digital one, development of an orderly process to implement and integrate the necessary technologies is key. This is to avoid unnecessary delays and interruption in the delicate process of upgrading an existing, operational system.
Follow these steps for digital supply chain management
1) Understand your starting position and the risk involved.
This is the very first step. It is important to realize the current situation of the supply chain, what risk each supplier brings, and assess feasibility. The significance of each potential risk is weighed, and you have to formulate solutions on how such possible complications can be offset. Once you properly understand the risk involved, it becomes much easier to take proactive steps and set up preventive frameworks in a timely manner.
At this stage, you will assess the maturity of your suppliers and the overall risk posed.
2) Define your strategy and be open from the outset.
At this point, you will have known about the effects of potential changes, and you then encourage dialogue with the business entities involved and create a comfort zone where they can be honest with the common goal that you want a system that will benefit both sides. The use of dialogue will show inclusiveness and build the existing trust and confidence between you and your business partners. This exchange will also shed some light on what is likely to work for both sides and provides the basis for how the foundation should be set.
These early discussions will also ensure that the digital management system will suit your needs and the needs of the suppliers and other business partners. At its core, it is a system that will not be a square peg in a round hole. Understandably, suppliers will be concerned about the risk of losing you as a client if they voice concerns and potential risks. Therefore these initial discussions are critical, as they put everyone at ease and are all-inclusive. The suppliers will also broaden your idea on what the system needs and what components need to be in place for it to be a resounding success.
3) Have a sustainable, long-term approach.
Have measures in place that will aid your system in the long term. Take proactive steps to ensure system stability over time and in varying business and financial conditions. A reactive approach is susceptible to interruptions, delays, and, at times, system shut down. This cautious and forward-thinking procedure safeguards your business from such unnecessary unpleasantness.
It is important to realize that the incentive to save money can prompt individuals and organizations to introduce measures that pose significant risks whilst focusing on the short-term benefits. It is, therefore, very important to cover all bases and see the bigger picture, as sustainability is a core value of all good business entities.
4) Conduct proper research and analysis.
A good supply chain is resilient and delivers the desired and expected returns. It is therefore of vital importance that you invest time in supplier analysis. Set up a contract with proper knowledge of just how aware your suppliers are of the potential risks involved. As much as suppliers are expected to do their own risk analysis, it doesn’t mean that they necessarily are.
All questions about expectations and mutual obligations should be answered by this point.
5) Segmented roll out and capability development
After the digital supply chain management system has been formulated, it is brought into action in phases, employing all the various insights acquired. A pilot project is set up and its success reviewed. After a successful pilot, the roll out should start with those supply chains where expected returns are the highest to ensure maximum returns right from the start. It is important to note that system capabilities will be expected to evolve over the course of the roll out due to the dynamic nature of today’s business environment.
How will self-driving, autonomous stores impact the retail industry and the supply chain?
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Here’s another dispatch from the far-flung realms of emerging technology that will transform the Supply Chain – how products are brought to market, and how customers acquire those products.
We’ve written before about the upheaval Amazon has wrought on the Retail industry – whether it’s the company’s move into brick and mortar retail, its acquisition of Whole Foods Market seeking to improve its Last Mile Delivery, or its proposed use of drones to deliver products. We’ve also written about some emerging technologies – like augmented reality – that are blending the world of eCommerce shopping and a more traditional brick and mortar experience.
Suffice it to say, the retail industry is going through some major convulsions. With dozens of major U.S. retailers shutting down, and tons of new startups entering the eCommerce market, the landscape looks different than it did even five years ago. Companies are looking to the bleeding edge of technology to revolutionize the last leg of the Supply Chain, imagining the best ways to deliver products to consumers in 2020, 2030, and beyond.
Now, an idea that’s been explored in theory is seeing testing in Shanghai, a city known for its leadership in the mobile payments space, as well as its Blade Runner-style futurism.
Self-driving, autonomous stores
Analysts have touted autonomous drones and self-driving trucks as disruptive technologies to Logistics and Retail. Now, a great recent article in Fast Company profiles a startup called Moby which is testing a model of autonomousstores that drive around, seeking customers based on traffic data. Customers can “order” a store to drive to them, similar to how we order Ubers today. They then enter the store using an app and pay for goods with mobile payments. When the store is out of products, it drives back to the warehouse, or connects with another store that has excess supplies of, say, milk, to restock. Like a food truck, but one that also sells toothpaste, and replacement phone chargers, and apparel – using only robots.
Check out the video:
Pretty cool, no?
Produced in partnership between Swedish-based startup Wheelys and China’s Hefei University, the Moby Stores are electric, solar powered, and allow customers to order products for their next visit based on voice activation. Wheelys’ background is in making mobile coffee carts for entrepreneurs, and it’s extending that manufacturing experience towards these new prototypes, hoping (perhaps optimistically) to eventually build the stores for $30,000. It’s planning to start commercial production of the stores by 2018.
It’s a wild idea, to be sure – with significant manufacturing and regulatory hurdles still to clear – but pie-in-the-sky technologies have transformed retail before.
There are a few cool implications for this model from a Supply Chain angle, beyond the obvious convenience of having a store that comes to consumers:
It potentially changes the approach to last mile logistics, possibly eliminating the human component in delivery – similar to drones, but with product selection.
These stores combine the convenience of eCommerce with the tactile experience that’s still brick and mortar’s strength in areas like apparel.
They will allow retailers to compete in the brick and mortar space without paying for rent / real estate, which is a huge barrier to entry and carrying cost making brick and mortar uncompetitive. Of course there are maintenance costs to consider, as well.
By allowing customers to “order” a mobile store to a nearby location similar to how one would order an Uber, this model can allow a very fast form of same-day delivery, something that’s been a “holy grail” for companies like Amazon.
We know that startups don’t always translate into industry-redefining enterprises, but even if Moby itself isn’t the future of Retail, it’s very possible that wandering stores will be a big part of the autonomous era.
Here are seven tips for manufacturers to improve your email marketing strategy in the manufacturing and industrial sector.
This post comes to us from Adam Robinson of Cerasis, a top freight logistics company and truckload freight broker.
Email marketing is a powerful tool for growing and developing different types of businesses. However, many industries are still unaware of the power of using an appropriate email marketing strategy. Many manufacturers and industrial companies are still stuck in the one-off batch and blast mode of email marketing. That strategy is not likely to work very well in industrial marketing, where most of the purchases are expensive; complex products with long sales cycles, multiple decision-makers, and stakeholders are involved; and there is a much higher risk if a wrong decision is made.
7 email marketing tips for manufacturers
1. Avoid SPAM at all costs
The last thing that you want is for your emails to end up in someone’s spam folder or have your emails banned from someone’s inbox. Before you even start an email marketing campaign, you should print out the latest copy of the CAN-SPAM act to remind yourself of some email marketing principles, such as any recipient must have given their consent before receiving commercial email, have an option to unsubscribe from receiving further emails, do not mislead the recipient about the content or the origin of the email, and use approved methods to get a recipient’s email address.
2. Personalize your emails
You should avoid sending generic emails. Your recipients are not all the same, and you should make distinctions between them by segmenting your database. This means sending the same type of email diversified in some key aspects depending on the type of recipient. The content and filters of platforms such as Litmus and Reach Mail, which is based on personal data, geography, activity, and devices used, let you automate the entire process to narrow your focus and identify the ideal sub-section of your list.
3. Increase your traffic and clicks
By creating the perfect email marketing campaign, you will have the power to turn emails into clicks and traffic to your website. Sending relevant links to your subscribers will drive them to your website, and this increases the potential for new sales. If you want to give a real boost to your click-thru rates, you should keep in mind that you have to get rid of the clutter. Having an email that has too many graphics and banners will confuse your readers and leave them wondering what they are supposed to click on.
4. Offer quality content
You should always provide useful, quality content in an email and links to further information. Your emails should be more informative than sales-related, especially in the manufacturing industry. Talk about your company’s safety standards, advertise interviews with experts, and discuss pressing matters in your industry. Not presenting your information in a clear and accurate way will put off your recipients. You can take advantage of online tools to help you with your content writing. Use Australian Help and Oxessays as copywriting tools for writing your emails and Bigassignments to help you to edit your content. [Editor’s note: You can also partner with a third-party marketing firm to develop and execute an email marketing strategy for your business.]
5. Optimize your subscriber list
Do not rush out and buy an email list to get started with email marketing. You should grow your in-house subscriber list and get to know your customers and what they need from you.
6. Link your email platform with other channels
Email platforms, external databases, e-commerce, social media, and business intelligence systems can all be linked to optimize your business and reach more potential clients. Platforms such as Mail Chimp and Mad Mimi allow you to connect and integrate every system, synchronize the information on each, and have them communicate with each other.
7. Automation and tracking
You should try to make your email marketing strategy as efficient as possible with email marketing automation. Platforms such as the mentioned Litmus and Reach Mail will let you automate the entire process. Analyzing and tracking your campaigns’ performance is also essential. Using the analysis tools and reports available from the platforms we suggested will allow you to check and optimize your clicks, traffic, and sales.
Wrapping up the 7 email tips for manufacturers
There are many things to consider when creating an email marketing campaign. The main goal is to effectively connect with potential customers to persuade them to purchase your product by reminding them that you exist and that you are helping. Use these email tips for manufacturers to continually improve your sales and grow your industrial business.
Amazon’s foray into the grocery space has larger implications for its overall strategy, and the possible benefits for the eCommerce goliath are diverse.
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
Big news out of the grocery retail world as Amazon has announced its acquisition of major organic foods retailer Whole Foods Market – for an eye-popping $13.7 billion sale price that doesn’t look so massive given Amazon’s $136 billion sales volume in 2016.
Analysts across the retail industry are talking about the huge implications of this sale for a retail industry that many say is in the middle of a major meltdown, in part owing to Amazon’s massive growth in the eCommerce space. This foray into the grocery business is a big challenge to companies like Target, Wal-Mart, and others, and also a sign that reports of brick and mortar retail’s demise might be greatly exaggerated.
Anyone following the industry probably isn’t completely surprised by the acquisition, which serves as another example of Amazon’s constantly widening footprint across all aspects of Supply Chain. It follows on the company’s gradual conquest of the logistics space over the last few years, including the licensing of 20 Boeing 767 air cargo jets, the acquisition of wholesale shipping licenses, and forays into trucking. It shouldn’t be so surprising that the company is seeking to put one of the final puzzle pieces in place towards a completely vertically-integrated retail Supply Chain by buying brick and mortar stores – while also buying a major staging ground to improve its last-mile logistics, which is often said to be the “holy grail of eCommerce.”
It all fits into analysts’ understanding of Amazon’s quest for world domination.
That being said, the specific acquisition of a healthy lifestyle brand like Whole Foods is intriguing for sure. This is a brand with major goodwill and solid growth as consumers have looked to healthier choices over the past several years, so it makes sense from that perspective. But as many outlets have reported, Amazon’s foray into the grocery space has larger implications for its overall strategy, and the possible benefits for the eCommerce goliath are diverse. As Supply Chain 24/7 put it, this move is more than a disruption to retail – it could be a disruption to all of society.
Woah.
So let’s dive in: what is Amazon’s medium and long game with this acquisition? What are the possible benefits to the company and the potential disruption?
Amazon gets to reap the sales of a popular and upscale grocery brand.
It brings Amazon a step closer to perfecting its last-mile delivery strategy, which has been difficult to execute for high-turnover perishable items like groceries.
It allows Amazon to place pressure on food suppliers’ profit margins by being even larger.
It obviously gives the company more physical, brick and mortar presence, which allows it to eliminate some of its disadvantages compared to brick and mortar chains – for example the fact that people shopping online on Amazon can’t try on clothes or select fruit. The company has already dipped its toe into the brick and mortar waters with its Amazon Bookstores, now up to eight locations, but this represents a full-blown cannonball into that space, selling way more than just books.
It allows the company to digitize the strongest parts of Whole Foods’ brick and mortar experience, adopting a hybridized approach at the same time as Wal-Mart looks to become more like Amazon.
It allows the company a larger testing ground for its Amazon Go app, which allows customers to pay for grocery goods using a smart phone without ever interacting with a checkout counter. This has negative employment implications, obviously, for retail workers long-term.
It gives the company more “touch points” with shoppers and avenues to sell higher-margin goods such as Kindle devices in grocery stores.
It also delivers a massive new client to Amazon Web Services, a client who is currently using Microsoft’s Azure Cloud platform.
It puts a number of Amazon’s biggest retail rivals on notice, including Target, Wal-Mart, and others, that they can expect more price competition.
When this move was reported, it sent stocks for Canadian grocery companies into a conniption, with some companies losing 3.5% of their value in a day’s trading. American grocery companies didn’t do much better, with Target, Walmart and Kroger all losing value as well. Whatever the outcome, it looks like this year’s retail industry upheavals might just be a taste of what’s to come.
Manufacturers who listen and focus on customer experience and service will win in the battle to increase revenue and company size.
This post comes to us from Kevin Jessop of Cerasis, a top freight logistics company and truckload freight broker.
Manufacturers have always struggled to know their customers. But, modern businesses have grown to encompass an omnichannel sales opportunity. Customers can place orders online, by phone, in person and in nearly any other means desirable. Unfortunately, this means manufacturers face an even greater challenge, as more customers translate into greater use of customer service.
In addition, customers are continuing to demand lower prices and free shipping. But, our predictions’ post noted how manufacturers are having trouble with transforming customer input into responsiveness and enhancements to the customer experience. Those who do achieve this feat can realize significant increases in revenue and high returns. But, how do manufacturers turn their focus to the customer experience?
1. Determine What Customers Want Today.
Modern technologies can give manufacturers real-time insight into the ways products are moving in retail and online environments. But, patterns today do not necessarily reflect the needs for tomorrow. As a result, manufacturers must be wary of overproduction and focus on providing the products customers want now, not tomorrow. In other words, manufacturers need analytics from point-of-sale systems, transportation metrics and more. Furthermore, companies must extend the buying cycle to get as much information as possible from consumers.
2. Lengthen the Buying Cycle Through Interaction.
Remember the catch-phrase, “Do you want fries with that?” Well, that concept holds true in the supply chain and for manufacturers alike. Consumers may not always go for what you are offering, but they want you to offer more than you have. Essentially, this creates a stronger level of customer service, and it can turn into additional purchases. More importantly, it gives manufacturers a chance to find out more about what the customer wants.
For example, a customer is a shoe store may purchase shoes, but if offered a new brand of socks, he or she refuses. During the ensuing conversation, the representative finds out that the socks have gathered a bad reputation on social media.
While this example is a bit extreme, it highlights how a longer buying cycle can translate into insights for manufacturers. In addition, a longer buying cycle naturally improves the company’s reputation.
3. Partner With Appropriate Businesses.
Businesses are often grouped into a broad category of competitors, but businesses can work to help manufacturers become more responsive to their consumers. This can include offering like products in package deals, compiling changes in like demographics or sharing information to reduce costs across the scope of both companies’ transportation networks. In fact, manufacturers can collaborate with third-party logistics providers (3PLs), like Cerasis, to realize the benefits of collaboration and taking advantage of business-to-business (B2B) sales through integration of systems, explains Louis Columbus of Supply Chain 24/7.
Essentially, every interaction with another business increases the possible customer base by both the number of employees in the new business and the number of customers working with that specific business. As you go through the chain of business, the opportunity for enhancing customer experiences grows.
4. Take Extra Care of B2B Partners.
B2B sales are more fickle than business-to-customer sales. According to a Gallup study, reports Chief Executive, more than 70 percent of B2B companies are facing setbacks and decreases among their B2B partners because of lacking customer engagement. Since B2B sales often take place behind the public’s perception of the economy, it is important that manufacturers work to create engaging relationships through content-driven, digital experiences. This can include videos demonstrating how products work, informative blog posts that provide something free and helpful to customers and beyond. Of course, the same concept of using digital technology to engage customers can be applied to B2C sales channels as well.
5. Be There for Customers After the Sale.
We have all experienced that disheartening feeling when calling customer service and getting lost or frustrated with the lack of service offered. Manufacturers need to be present to their customers after the sale because the level of customer service provided will be shared widely on social media. More importantly, poor customer service or inability to help customers with product issues or questions will gain a huge following much faster than a positive comment.
For example, manufacturers could send out emails for high-tech products that will require updates, or they may create online video banks to teach customers how to use the products easily. The opportunity for creativity in engaging current and future customers is only limited by your imagination!
Listening to What Customers Say is the Key to a Positive Customer Experience.
These steps go back to one thing, listening. Your company should listen to what internet-connected devices are saying about customers. You should listen to what your B2B partners are saying about your products and customers. Listen to what stakeholders, employees and B2C customers are saying. If you take the time to listen, you can meet the growing expectations of a modern customer base that wants a higher level of service than past generations. Ultimately, manufacturers who do listen and focus on customer experience and service will win in the battle to increase revenue and company size.
