by Jennifer Hart Yim | May 11, 2017 | Blog, Current Events, Logistics, Manufacturing & Distribution, Supply Chain, Transportation & Trucking, Warehousing & Materials Handling
This post comes to us from Adam Robinson of Cerasis, a top freight logistics company and truckload freight broker.
Imagine a world where automation comes together with technology to deliver products without human intervention. An order is placed by a consumer. 3-D printers pick up the details and print the finished product. It’s then picked by robots from the shelves, packaged and placed into a self-driving truck. The trucks leave the facility, and drones are automatically dispatched from the truck to deliver products while moving. The truck never stops until arriving for reloading.
This example generates a huge amount of data that can leverage in the supply chain. But, the same data can have a drastic impact on transportation planners and agencies around the globe. While this example may still be a few years off, it is important that you understand how the top emerging trends in automation will shape supply chains and transportation processes in the coming years.
The Standard Definition & Components of Automation
Today: There is a standard definition of automation in the supply chain. Anything that can be handled via today’s computer systems can be automated. This includes billing, generation of bills of lading, compliance reports, and even movements throughout a factory or warehouse floor.
Historically, automation has been applied to virtual processes, like order auditing or customer service reports. However, the trends in automation are changing to reflect actions that function more like artificial intelligence, not just a search and locate program on the computer.
Additive Manufacturing
What is it?
Additive manufacturing includes all actions in the supply chain that can enhance existing factory production, if not replace it entirely. Additive manufacturing may be handled manually, but automating this process is as simple as turning on the power and connecting to the Internet of Things (IoT).
For example, additive manufacturing might involve the use of 3-D printers to create replacement parts at the store for consumers.
Today’s status: Unfortunately, the capacity of 3-D printers remains in infancy, capable of only producing simplified parts out of liquid polymers.
Virtual Reality Comes to the Forefront.
Meanwhile, Google Glass and other virtual reality tech are changing how customers complete their orders. In addition, the same technology can be overlaid with augmented reality to give repair technicians and individuals greater resource access when making repairs, checking order contents and fulfilling orders.
For example, augmented reality glasses will soon detect package dimensions and classify the package according to dimensional pricing models.
Today’s Status: Today, this technology is limited to automated identification and data capture (AIDC) applications. Advancements in virtual reality over the past year indicate its future might be much closer than “meets the eye.”
Additive manufacturing will gradually move products from warehouses and distribution centers to be closer to end-users. As a result, the amount of last-mile traffic may increase.
Robotics Enhance Inbound and Outbound Logistics for Shippers.
Another trend in automation involves robotics. By definition, robotics are the icons of automation. They perform functions at the request of a system or person, but more of today’s robotic systems are performing duties upon request from an order fulfillment system.
The order process automatically notifies robots in warehouses and triggers the flow of processes as seen in the opening example.
Robotics Improve Inbound and Outbound Logistics.
Robotics are not isolated to warehouse pulling for outbound logistics. They can be used to manage inbound and outbound processes and strategy. Through trends in automation and robotics, supply chain companies will have the tools and resources necessary to ramp up throughput and decrease product cycle from order to delivery. Therefore, more trucks and drivers will be needed, but the looming driver shortage and capacity crunch will trigger another automation trend.
Autonomous Vehicles/ Trucks
Automation begets automation. With advances in technology and the IoT, most major companies, including Uber, Facebook, Google, and Amazon, have launched autonomous vehicle and truck pilot programs.
These driverless vehicle programs will give supply chains access to a new inexhaustible resource for moving products, overcoming the challenges inherent in the driver shortage and capacity crunch.
The driver shortage and capacity crunch are likely to come to a head in 2017, as consumers demand more product, at lower costs and faster than ever before.
Some setbacks have occurred, like the first self-driving car wreck earlier this year. With each setback and challenge, companies have pushed back to overcome the obstacles.
In response to increased interest in driverless vehicles and trucks, the National Transportation Safety Board (NTSB) has issued recommendations and created an advisory panel to review ongoing driverless vehicle advancements and maintain public safety.
Transporters and supply chains will respond to this direction by leveraging the trends in automation and power of data to ensure compliance with increased government oversight, through the agencies you represent.
Companies have already tested cross-country driverless trucks, albeit with a person ready in the cab to take over in the event of a system failure. However, the wide-scale deployment of this level of driverless trucks is far from implementation.
In the interim, more automated vehicle systems will work in tandem with drivers to enhance safety and maintain vehicle control. Similar systems are already deployed in crash and pedestrian detection systems, automated braking and tracking control in today’s vehicles. It is not difficult to apply today’s technology and automated features to the fleets and drivers of 2017.
Trends in Automation: Whats the Potential?
The potential applications of this type of technology can include real-time traffic condition monitoring and warnings, redirecting traffic before pile-ups and accidents occur, similar to Google Maps’ capacity to show traffic congestion in real-time.
Data through such systems can automatically feed back into transportation planners’ systems to automatically change signal phase and timing and enable immediate rerouting or adjustment of traffic flow on a broader scale.
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by Jennifer Hart Yim | May 10, 2017 | Blog, Current Events, Logistics, Strategy, Supply Chain
Updated January 16, 2025
Starbucks’ closely managed supply chain may be the key to the premium coffee giant’s success.
Highlights:
- Starbucks attributes much of its success to its vertically integrated supply chain, managing every step from coffee bean sourcing to final cup, allowing for consistent quality control and ethical sourcing practices across its global operations.
- Unlike its competitor Dunkin’ Donuts, which outsources most operations, Starbucks directly manages relationships with 300,000 coffee growers worldwide through its Coffee and Farmer Equity (C.A.F.E.) standards, ensuring both quality standards and ethical practices.
- This supply chain strategy has contributed to Starbucks’ significant market dominance, with the company generating $32.2 billion in revenue in 2023 and operating nearly 37,000 stores globally, far outpacing Dunkin’ Donuts’ presence and revenue.
The Secret is the Supply Chain, According to Starbucks
The international coffee giant has widely studied and acclaimed supply chain management practices, which, according to some, make Starbucks’ coffee and customer experience superior to those of its competitors.
So, what exactly is Starbucks doing differently than other international coffee retailers? Is its coffee truly better?
The Standards
Starbucks uses a vertically integrated supply chain, which means that the company is involved in every step of its supply chain process, all the way from the coffee bean to the cup of coffee sold to consumers. The use of a vertically integrated system means that Starbucks works directly with its nearly 300,000 worldwide coffee growers. The company believes that interacting directly with farmers ensures that all of its coffee beans will achieve the same quality and flavor standards.
Starbucks also works directly with growers because the company is committed to only selling ethically sourced, Fair Trade coffee. The company even has its own Coffee and Farmer Equity (C.A.F.E) standards and Coffee Sourcing Guidelines (CSG), which require that all suppliers must meet certain ethical, sustainability, and quality standards. Starbucks uses a stringent vetting process to ensure its growers meet and adhere to these guidelines.
Not only do the C.A.F.E. practices and CSG benefit Starbucks, they also provide advantages for suppliers. The guidelines protect workers’ rights and ensure that all growers have safe and humane working conditions. Suppliers also must adhere to minimum-wage requirements and commit to not using child or forced labor.
Lastly, as a part of its C.A.F.E. guidelines, Starbucks commits to providing its suppliers with special training and education programs. Starbucks’ direct interaction with growers, along with their sourcing and social responsibility standards, make suppliers feel like they are integral parts of Starbucks’ corporation. The close relationship and frequent communication between Starbucks and its suppliers, therefore, make the company’s supply chain less susceptible to major disruptions, such as overplanting or worker shortages.
The Process
After the growers pick and package the coffee beans, truckers drive the unroasted beans to ocean liners that ship the beans to six storage sites in the U.S. and Europe. The beans are roasted in these storage facilities and then packaged for shipment to Starbucks’ eight central, and forty-eight regional, distribution centers. By only using a handful of storage facilities, Starbucks can closely manage the sites’ operations and guarantee that all beans are roasted and packaged in the exact same way.
The company’s close control over the roasting process also ensures that Starbucks’ coffee tastes the same in all of its retail locations. Starbucks’ active participation in the supply chain also ensures that the distribution centers receive the products they need so they can fulfill orders and make their roughly 70,000 weekly deliveries on time.
The size and scale of Starbucks’ operations should make its supply chain inherently complex. In 2008, however, Peter Gibbons, the Executive Vice President of Global Supply Chain Operations, overhauled the company’s expensive, ever-growing supply chain into a streamlined, cost-effective process that relies on simple operational structures and metrics.
First, he grouped all supply chain jobs into four categories: plan, source, make, and deliver. Next, he developed a highly centralized logistics system that allows the company to better manage and coordinate its global network. Lastly, he implemented a binary, 0 or 1 “scorecard system” to assess all supply chain activities on four metrics: safety in operations; service measured by on-time delivery and order-fill rates; total supply chain costs; and enterprise savings.
Along with the simple tools and processes that Gibbons created, Starbucks also relies heavily on digital technology to manage its supply chain. The company uses an automated information system that allows it to monitor demand, inventory, capacity, and scheduling in real time. Therefore, Starbucks can quickly adjust its plans and operations as needed. Starbucks’ simple structure and management tools, as well as its use of digital technology, allow the company to achieve a high level of efficiency and agility, both of which are key to organizational success.
The Market
Starbucks’ biggest competitor in the international coffee market is Dunkin’ Donuts. In contrast to Starbucks, which owns its entire supply chain, Dunkin’ Donuts outsources its production processes. Dunkin’ Donuts relies on a third-party intermediary, National DCP, to handle the company’s supply chain operations.
Dunkin’ Donuts also franchises its manufacturing locations, as well as nearly all of its retail spaces. Conversely, Starbucks franchises less than 50% of its retail locations, and, as of March 2016, was no longer accepting applications for new U.S. franchises. Starbucks also uses few to no intermediaries to carry out its supply chain operations.
Unlike Starbucks — which is committed to using 100% sustainably grown, Fair Trade-certified coffee beans — Dunkin’ Donuts promises to produce its coffee as “sustainably as possible.” The company works with Fair Trade USA and the Rainforest Alliance to implement sustainable sourcing practices, as well as training programs for farmers. However, Dunkin’ Donuts only offers two permanent menu items that are Fair Trade-certified: 30% Rainforest Alliance Certified™ Dark Roast Blend and 100% Fair Trade Certified™ espresso.
While Starbucks’ critics may try to argue that the company’s supply chain model and social responsibility efforts are not true differentiators, the statistics tell a different story.
Starbucks was founded roughly twenty years after Dunkin’ Donuts, but the company is already much larger than its rival. In 2023, Starbucks generated $32.2 billion dollars in revenue, while Dunkin’ earned only $1.4 billion. Starbucks also has a larger global presence, with nearly 37,000 retail stores in 80 markets worldwide, compared to Dunkin’s 13,500 locations in 40 countries.
Starbucks also primarily markets to higher-income customers looking for a premium coffee experience, while Dunkin’ Donuts has traditionally retailed to more blue-collar consumers who want coffee on the go. Therefore, Starbucks’ clientele is willing to pay more for coffee that they perceive to be made from higher-quality, socially responsible sources. It used to be that Starbucks’ customers would also pay more for coffee in order to enjoy the amenities offered in the company’s coffeehouses, but even with a consumer shift towards drive-thru and mobile pick-up preferences, Starbucks’ customers seem willing to pay more for convenience. Because Starbucks’ patrons generally have higher disposable incomes than those of Dunkin’ Donuts’ customers, they are less likely to adjust their consumption patterns during economic downturns. Thus, Starbucks is less susceptible than Dunkin’ Donuts to major fluctuations in revenues that could result from negative macroeconomic swings.
The Future
While Dunkin’ Donuts loyalists, particularly those in New England, may never accept the merits of Starbucks coffee, majority opinion argues that Starbucks offers higher-quality beverages and better customer experiences. Statistics show that Starbucks is outperforming its rival, which is evidence of the success of a simple and efficient global supply chain. In fact, Starbucks, which is already larger than Dunkin’ Donuts both domestically and abroad, plans to open more new retail spaces than its competitor over the next five years.
Therefore, one question remains for coffee drinkers and market analysts: Does America actually run on Dunkin’? Or is Starbucks’ coffee really the fuel running our caffeine-crazed country (and world)?
We love writing about all things related to the supply chain, including Starbucks’ supply chain. Need quality content written for your supply chain business? We’re a content agency focused exclusively on working with companies like yours. Let’s chat.
This article is part of a series of articles written by MBA students and graduates from the University of New Hampshire Peter T. Paul College of Business and Economics.
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by Elizabeth Hines | May 9, 2017 | Blog, Leadership, Talent
Employers that can reduce stresses surrounding childcare increase their chances of retaining their most talented employees.
Many companies struggle with attracting and, more importantly, retaining their best employees. There are many reasons why, of course. But one of them that we don’t talk enough about in the supply chain — though it’s been gaining national attention lately — is the issue of childcare.
This is a very personal matter to me, a working mother who struggled to find a balance between the cost of childcare and the price of my employment. And that doesn’t even cover the emotional, physical, and logistical challenges of finding somewhere to deposit young children for a good portion of the day while you earn a paycheck. But I digress…
The staggering cost of childcare
According to Care.com, the national average for at-home care is $28,354 per year, while in-center care is $8,589 per year. These numbers are often staggering to parents, who are not physically or emotionally ready to part with their newborns after a short, and for most, unpaid maternity or paternity leave.
It’s Working Project and Forty Weeks founder Julia Beck recently wrote about concerns parents consistently face when heading back to work after having a baby. At the top of the list is childcare and a general lack of support from the workplace. “Support from employers makes or breaks the deal, creating either a manageable new reality or the need for a backup plan (or even an exit),” she writes.
Don’t believe that’s true? Take a look at this statistic: 83% of millennials would leave their jobs for one with better family care benefits. As millennials represent an increasing percentage of the supply chain fabric, it’s a concern that should increasingly matter to employers.
Here’s the good news: Every challenge employees face is an opportunity for employers to gain a leg up on their competition for talent. Easing the stresses surrounding childcare can be a simple yet significant way that companies can support their most talented employees, who also happen to be working parents.
How employers can ease childcare stresses for working parents
So what can your company do to help make work/life balance more obtainable for your employees? Here are three practical suggestions that are fairly simple for employers to implement but that might make a world of difference for working parents.
1) Make schedules predictable.
When a parent learns of a last-minute, late-afternoon meeting, they must scramble to find someone to pick up their son or daughter from daycare, miss a long-anticipated school or sporting event, or otherwise come up short on time promised to their families. Setting rules around scheduling meetings can help avoid this additional stress on parents.
For example, some organizations have a policy that no meetings can start before 9:30am or after 4:30pm, so parents don’t have to worry about drop-off or pick-up with daycare facilities. Allowing parents to focus on work and not worrying about running late for soccer practice makes them more productive employees.
2) Offer flexibility.
BirchBox’s VP of People and Culture, Melissa Enbar, explains that her organization offers flexibility around the hours employees work and the location they work from.
Nowadays most jobs can be effectively performed from home or another location. This is a luxury that makes sense for working parents — and it’s an opportunity for companies to offer an extra benefit for employees who want or need to set their schedules around their families.
3) Aid in childcare options.
Whether your company offers on-site care or not, you can still help ease the stress of finding reliable and affordable childcare for your employees.
A good starting point is creating resources for new parents beginning their childcare search. This can be as simple as posting a list of childcare facilities recommended by other employees or as in depth as offering backup childcare options for emergency situations. Brigham and Women’s Hospital in Boston, for example, offers a reduced rate for six days of emergency care at home through Care.com, plus access to a backup child care center, according to one employee.
Let’s face it, securing a safe, nurturing childcare option is a challenge for all working parents. When they are plagued by related stresses — such as an unforeseen late meeting, illness, or other everyday concern — parents aren’t able to give their full attention to their job. This comes at a cost to the employee and ultimately, the business.
There are things you, as an employer, can do to make working for your company more appealing to parents. Helping employees navigate childcare stresses will be benefit not only the individual, but the company as well, in terms of employee retention. After all, a flexible-hours or no-4 p.m.-meetings policy may be the differentiator that keeps your talent working for you rather than your competitors.
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by Elizabeth Hines | May 8, 2017 | Blog, Content Marketing, Marketing
Research shows that marketers are wasting valuable time and resources reinventing the wheel when it comes to email marketing.
Email marketing can be a challenge — to say the least. The constantly changing email landscape, marketing trends, and privacy regulations can make staying on top of your email game very tough.
The Litmus 2017 State of Email Report looks at trends in email marketing over the last year. One interesting takeaway: The definition of ‘spam’ email is changing at lightning speed. Consumers are quick to label unwanted or uninteresting emails as spam. That means it’s more likely the content you’re creating won’t make it to your audience’s inbox.
So marketers should spend more time and resources creating better emails, right? Not necessarily. The study shows that many aren’t using their resources wisely when it comes to marketing emails.
One thing is clear: Companies have to drive relevant and timely email communications that align with subscribers’ interests to stand out. But spending more time on different designs and reinventing the wheel when it comes to copy aren’t necessarily the way to go about that.
Take a look at these 4 statistics from the report and why streamlining and automating certain aspects of your email marketing program might free you up to focus on factors that can make a difference.
4 takeaways from the Litmus 2017 State of Email Report
1) 41.5% of companies have 1-5 emails in production at any given time (from conception to send).
That is a lot of emails. If you’re working on 5 emails at a time, it’s important that you have a process for turning them over quickly. But Litmus found that companies are spending way too much unnecessary time thinking about, creating and producing emails.
Why start from scratch with every one? Email templates are an excellent way to streamline your production process. It’s also easier to concept an email when you have certain standard elements that you have to come up with each time. You can still swap out messaging and images while keeping brand-specific pieces in place. It’s a time-saver for all involved.
2) Only 31.6% of companies spend less than a week to produce a single email.
So over 68% of companies are spending a week or more on ONE email. If most marketers send out 1-3 emails a month, imagine how those weeks add up! How does anyone have any time to do anything else?
This means too many marketers are spending too much time on each email. Automating certain parts of your process can be a beautiful thing — saving you time, money, and, ultimately, your sanity.
3) Only 6.7% of marketers use task runners as a part of their email production flow.
Task runners automate repetitive tasks, such as inlining CSS and sending out test emails. The biggest benefit to using a task runner is the ability to save time. Using Grunt, a popular task runner, not only adds to efficiency, but also builds consistency, increases effectiveness, and offers task flexibility.
4) Only 5% of marketers are using static site generators as a part of their email production workflow.
Static site generators are build systems for flat files that allow you to create templates and break down email elements. For all of us non-coders, this means that when someone visits your webpage, the user sees exactly what is stored, in contrast to a dynamic webpage that is generated through an application. Using static site generators can save marketers time, improve reliability, and increase security.
So what does all this mean for you and your company? Time is money, and that’s especially true when it comes to your email marketing program. The concept of streamlining workflows and utilizing technology to cut down on time is imperative to your company’s success.
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by Elizabeth Hines | May 4, 2017 | Blog, Marketing, Social Media
Show that your company cares about its customers by responding in a complete and timely manner to negative comments on social media.
I was recently talking with a client who works in a sector known for negative online reviews. Customers tend to air their grievances in public forums — especially on social media — as a means of resolving issues that could be handled offline with a quick phone call to customer service. Some are just looking for discounts and know that a thorough online bashing will usually do the trick. Either way, the client did not see the point of engaging in an unwinnable argument.
I totally get it. But, unfortunately, not a good idea.
It’s really important to respond to negative comments for many reasons. Let’s walk through a few.
You are not a robot.
More and more, people turn to social media and other online forums to complain. It’s so easy to do! You don’t even have to face the consequences — or a real live person!
Don’t give them that satisfaction. Or, maybe I should say, prove them wrong. Give a voice to your business. Show them that someone is listening, that an actual human is reading their words. They’re not just complaining in a vacuum.
An always-respond policy will discourage commenters who don’t have a real issue that needs solving. Of course, it won’t stop people looking for a fight, but at least it shows that you’re not a robot, and that they should think twice before bashing you for all the world to see.
That brings up another critical point.
Everyone’s watching.
When you don’t respond to negative comments on social media, all of your followers and all of the people that come across your page see that. They get only one side of the story — and it ain’t pretty. They see that you didn’t care enough/have the time/[insert other bad assumption here] to respond to customer concerns. Imagine how that reflects on your business.
But when you do take the time to respond to comments, people see that, too. They see you making an effort to improve your customers’ experiences. Even if they have no context for the complaint, they have the opportunity to form a favorable opinion of your business because you care enough to respond.
Maybe you’re wrong.
Maybe there was a real lapse in service. Maybe the product isn’t meeting customer expectations because something’s wrong with it. Or, maybe that person you think is complaining to get a discount is really looking for a legitimate answer to a problem. Any way you spin it, that person deserves a chance.
Even on platforms where you can choose whether or not to enable comments, opening the comments feature indicates that your business is interested in hearing from customers and engaging with them in meaningful dialogue. And while you’ll inevitably receive some negative feedback, you will most certainly learn about problems that you would never have known about otherwise. You may even win back customers if you handle things correctly.
It’s discouraging to receive even one negative comment, let alone more. But by quickly responding to them and genuinely trying to solve any problems, you deliver on a promise of transparency, openness, and customer service. You become a company people would like to do business with, no matter what the haters are saying.
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by Elizabeth Hines | May 3, 2017 | Blog, Content Marketing, Logistics, Marketing, Social Media, Supply Chain
There’s never been a better time for supply chain and logistics businesses to implement a content marketing strategy — except for maybe yesterday.
Content marketing is a form of inbound marketing in which vendors publish digital content to attract customers who are searching for products and services like theirs. If done right, it is highly effective in growing brand awareness, generating and converting leads, and driving sales and repeat business.
Think content marketing isn’t for supply chain and logistics businesses? Guess again. Here are five reasons why companies in these industries should use content marketing.
5 reasons to use content marketing
1. Buyers use content to make purchasing decisions.
The B2B buying landscape has shifted dramatically in the last 10 years. Buyers no longer rely on sales reps to make purchasing decisions; they turn to the internet. Companies must shift to accommodate buyers at various levels of self-sufficiency in the purchasing process.
The reality is that 94% of B2B buyers use online research. That means they’re judging whether or not to buy from your business based on the kind of digital content you publish (or do not publish, as the case may be). Consider these stats:
- 95% of B2B buyers are willing to consider vendor-related content as trustworthy.
- 51% more B2B buyers rely on content to make purchasing decisions than they did last year.
- 47% of B2B buyers consume 3 to 5 pieces of content before engaging with a sales person.
2. Control the conversation in your favor.
Customers go online to discuss their buying experiences — both positive and negative. If a potential buyer googles your business’ name, what will they find?
Content marketing puts you in the driver’s seat of reputation control. If you publish thought-provoking blog posts about industry trends, you can earn a reputation as a thought leader in the space. If you curate the latest articles about relevant happenings, people will begin to view your social media accounts as a resource for industry news. Be professional, quirky, clever, ahead of your time, youthful, wise, funny, off-color — whatever your brand is, you can set that reputation by what you publish online.
3. Present yourself as a solution.
When prospects go online they are looking for information and for answers. Position yourself as an expert who fully understands their problems and how to solve them by publishing content that anticipates their pain points. Quickly and fully respond to customer queries on social media. Use content marketing as an opportunity to be the solution prospects are looking for, right when they need it most.
4. Content marketing is more effective than traditional marketing.
Companies in the supply chain and logistics space have a lot to gain by modernizing their marketing tactics. We see this every day with our clients. With the evolving B2B buying landscape, ads in industry publications no longer cut it as a “marketing strategy.”
Take two examples under consideration. How about TotalTrax, a warehousing technology company that grew new business by 30% with content marketing? Or 3PL Cerasis, who gained 98 customers from its content marketing efforts? Content marketing works, and that’s been proven time and again with logistics and supply chain businesses.
5. Your competitors are doing it.
Content marketing is already a widespread practice within the supply chain and logistics industries. If you’re not producing content to attract prospects and retain customers, you’re missing out.
This year, 75% of marketers are increasing their investments in content marketing. Why? Because it works. Successful content marketers experience drastically more site growth than their competitors. In fact, content marketing leaders experience 7.8 times more site traffic than their competitors.
In sum, content = customers. If you’re not using content marketing as part of your marketing program, you’re going to get left behind, if you’re not already.
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