by Fronetics | Dec 14, 2017 | Blog, Logistics, Supply Chain
Here are our most-viewed blog posts from 2017 about the supply chain and logistics industries, including posts about some of the largest supply chain companies in the world, Starbucks and Amazon.
Throughout the year, we write innovative posts to help readers stay in the know with the latest news and happenings to the supply chain & logistics industries. These posts provide insightful and relevant information from thought leaders, current trends, and tips to stay ahead of your competitors. Here’s a look at our most popular posts from this year.
Here are our top 10 supply chain and logistics posts of 2017.
1. Supply Chain Putting the ‘Star’ in Starbucks
Starbucks’ closely managed supply chain may be the key to the premium coffee giant’s success. 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. Read more.
2. 8 Must-Follow Logistics & Supply Chain Blogs for 2017
Supply chain professionals should be following these eight blogs to keep up with the latest industry news and happenings in the coming year. They cover a range of topics, from technology to strategy, and feature thought leadership by some of the brightest minds in the field. Read more.
3. Top 5 Trends to Know to Compete with Amazon’s Supply Chain
Supply chains must accept that they cannot equal the power of Amazon’s supply chain without embracing new trends. While supply chain entities struggle to stay competitive with the e-commerce giant, more organizations will look for ways to eliminate inefficiencies and boost operations. Fortunately, these five trends may alleviate some of the strains of competition by giving supply chain partners an advantage in the global market. Read more.
4. 5 Podcasts for the Supply Chain and Logistics Professionals
These podcasts bring the latest news and thought leadership in the supply chain and logistics industries right to your earbuds. Podcast’s popularity has skyrocketed since the smartphone became as necessary as car keys, giving you to-the-minute facts and information, right in the palm of your hand. If you’re looking to increase your podcast listening, here are five that highlight topics of interest to supply chain and logistics professionals. Read more.
5. What’s the Difference between Supply Chain Management and Logistics (Infographic)
Argentus’ infographic sheds light on the differences between these often-confused functions. Both Logistics and the wider Supply Chain are vital to how companies run today, but the two are still so often confused. We put together an infographic outlining some of the key differences and points of overlap between them. Read more.
6. 5 Books Every Supply Chain Professional Should Read
Add these books to your reading list to stay on top of industry trends and jump start your professional development. Read more.
7. What are the Supply Chain Impacts of Amazon’s Whole Foods Acquisition?
Amazon’s foray into the grocery space has larger implications for its overall strategy, and the possible benefits for the eCommerce goliath are diverse. 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. Read more.
8. Packaging Trends to Watch in 2017
Will sustainability trends from the consumer packaging industry have an impact on electronics manufacturing this year? Packaging trends suggest a wide range of startups, researchers, and big companies are committed to finding solutions that match the buzzwords du jour — sustainable, bio-degradable, natural, and eco-friendly. Read more.
9. The Top 3 Logistics and Supply Chain Blogs for 2017 – Readers’ Choice!
Our readers voted Morai Logistics, Women in Trucking, and the Oracle Supply Chain Management Blog as the top 3 logistics and supply chain blogs of 2017. Every year we ask our readers to vote for the best industry blogs. The results are always interesting — there’s really a lot of great supply chain and logistics content out there, plus it’s great to see where our readers are finding value. Read more.
10. The State of Supply Chains: The Supply Chain Has Gone Digital (Infographic)
2016 was the year of the digital supply chain — here’s a look at how things changed. The digital transformation has already reached most supply chain organizations. Per GT Nexus, 75% of executives surveyed recognized the digital supply chain as an important factor for the next five years. Read more.
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by Jennifer Hart Yim | Dec 7, 2017 | Blog, Logistics, Manufacturing & Distribution, Supply Chain
Within the month, the electronic logging device mandate will take effect. While shippers have known about the mandate for two years, truckers, shippers and carriers are still concerned about how it will impact capacity.
This post comes to us from Adam Robinson of Cerasis, a top freight logistics company and truckload freight broker.
Paired with soaring manufacturing and tightening capacity within the last month, the electronic logging device (ELD) mandate could cause the capacity crunch to worsen. In addition, other regulations, like changing attitudes and backlash at the environmental protection agency (EPA) and struggling infrastructure in Hurricane-affected areas, could cause further capacity problems. To help prevent the worsening of the capacity crunch, let’s take a closer look at how the ELD mandate and other regulations may affect capacity.
What Is the ELD Mandate?
The ELD mandate is a portion of the “Moving Ahead for Progress in the 21st Century” bill, which was passed by the United States Congress in 2012, explains ELDFacts.com. The bill outlines criteria for highway funding and the use of ELDs for use in a trucker’s Record of Duty Status. Today, the record of duty status is used to record compliance with an existing hours of service (HOS) requirements. Although the ELD mandate is a means to tracking HOS requirements, the two laws are completely different. As a result, but the ELD mandate and HOS regulations may have separate impacts on the capacity crunch.
When Does It Take Effect?
The ELD mandate is set to take effect December 18, 2017, and unfortunately, many owner-operator, truckers have not yet completed the installation of ELDs or found an appropriately authorized and licensed ELD vendor, says Jeff Berman of Supply Chain 24/7. However, the Federal Motor Carrier Safety Administration (FMCSA) will not begin requiring inspectors to place commercial motor vehicle drivers without and installed ELD out of service until April 1, 2018.
Even truckers with prior ELDs installed, which may have been installed before 2012, the upcoming ELD deadline has stringent requirements for what type of ELD may be used and who may install it. Truckers with existing ELDs from the pre-ELD mandate period will be automatically grandfathered into the existing list of ELDs at the end of 2019. Therefore, truckers looking to continue driving for the next two years need to have a new, approved ELD installed no later than the April deadline, if not the preferred December deadline. In the interim, politicians are still in debate about if the costs of installing new ELDs is justified under existing regulations, reports Supply Chain Dive. However, part of the reason the FMSCA has not yet rescinded or pushed back implementation revolves around HOS requirements.
What About HOS Regulations and the Capacity Crunch?
The capacity crunch revolves around how much available capacity is being used at any given time in the trucking industry. As a result, capacity is directly tied to the number of drivers which may be operating at any given time simultaneously. According to the FMCSA, the HOS rules are quite specific for property-carrying drivers. These include the following:
- Truckers have an 11-hour driving limit, and truckers may only drive a maximum of 11 hours after 10 consecutive hours off duty. Considering the amount of time required to park a truck, take breaks and other activities, it is nearly impossible for drivers to get in a full, 11 hours of daily driving while still obtaining the 10 required, consecutive hours off duty.
- Drivers now also have a 14-hour absolute driving limit for driving after coming on duty, following 10 consecutive hours of off-duty.
- Drivers must also take breaks and may only drive if eight hours or less have passed since the end of the drivers last off-duty.
- Perhaps the biggest impact for the HOS regulation is its specification of how many hours a driver may work within an eight-day period. If the driver drives for seven consecutive days, a trucker may not drive more than 60 hours on duty in the same period. Similarly, driver may not drive more than 70 hours with it in eight consecutive days. This consecutive. Can only restart after a driver takes 34 or more hours off duty.
Considering the HOS requirements, think about what this means for driver completing a two-way trip that requires 10 hours each way. The driver may now be limited to only making 14 total roundtrips within a seven-day period. Prior to the HOS requirement implementation, the same driver could have successfully completed an extra two trips by adding 2.5 hours to the daily driving schedule. Under the new HOS guidelines, the number of trips drivers may make is severely limited.
The Big Picture
The HOS requirements directly revolve around the ELD implementation and vice versa. The ELD will be used to track and monitor drivers existing adherence to HOS regulations, so regulations may adversely affect existing trucking capacity. Shippers need to consider how the ELD mandate and HOS regulations will result in a tightening of the existing capacity upon implementation, and even if the impact is not immediate, it will come to fruition within the next year. Shippers forgoing implementation of the ELD mandate within their fleets could face stiff penalties and other setbacks due to enforcement actions taken by the FMSCA.
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by Fronetics | Dec 5, 2017 | Blog, Content Marketing, Current Events, Logistics, Marketing, Supply Chain
Companies in the supply chain and logistics industries should take note of these 4 trends that are gaining traction as we move into 2018.
Joe Pulizzi of the Content Marketing Institute recently revealed his predictions for the biggest trends in content marketing for 2018. As the founder of CMI, Pulizzi dedicates his time discussing how content marketing has evolved with leading marketers from around the world and keeps his finger on the pulse of content marketing trends.
Most of the predications we discussed for 2017 are still holding true as we roll into another calendar year. Supply chain and logistics companies are still working overtime to nail down a true content marketing strategy. Native advertising is still the “gateway drug” to content marketing. And the growing dependence on mobile devices has continued to skyrocket.
What does this mean for 2018?
The key trends from 2017 continue to highlight the importance of good content. With over one million new-data-producing social media users each day, high-quality content is the only way to stand out from the masses. As you start to strategize for next year, and beyond, be sure to consider these trends in your supply chain marketing plans.
4 content marketing trends for 2018
1. Original content is king
A recent report claims that Apple is planning to invest over $1 billion on original content. Why the hefty price tag? As competition in the mobile space continues to heat up, brands need to do more to stay relevant. Valuable, original content can help companies like Apple grow its audience and keep its current customers coming back for more.
What does this mean for you? Pulizzi believes that this trend will offer companies multiple options to monetize their content. Either through direct sales to customers or advertising and sponsorship opportunities, supply chain and logistics companies will be able to cash in on their original content.
Make sure to keep a close eye on your competitor’s content. More and more companies will see the value in original content and look to build loyalty and support from their growing audience.
2. Creating vs. purchasing
For those supply chain and logistics companies that don’t have the time or resources to invest in creating original content, acquisitions will offer a pricey solution. 2018 will see a spike in content marketing brand acquisitions, giving companies full-service content options. Back in August, Netflix acquired Millarworld, a comic book publisher, hoping to gain traction with cutting-edge content in a host of different mediums.
While 62% of companies outsource their content marketing, the rise in acquisitions highlights the value of content creation and distribution. The decision to create content vs. buy will depend on the size of your wallet.
3. Content marketing budgets on the rise
According to Marketingmag.com, content marketing will become a $300 billion industry by 2019. That’s a lot of money being spent on content creation and distribution, which can only mean one thing: content marketing budgets are increasing. 39% of marketers expect their content marketing budgets to increase this year.
More brands are seeing the effectiveness of content marketing over traditional advertising. Moving away from traditional advertising and optimizing your content marketing strategy will make your marketing budget dollars stretch further and work harder in getting your content in front of the right people.
4. Content marketing overlap
Many of us are familiar with Marcus Sheridan’s story about the success of his pool company and starting the Sales Lion. Desperate to save his company, Sheridan threw himself into content marketing and created the most-visited swimming pool website in the world. Sheridan’s biggest take away? Marketing is a team sport. “Want content marketing to work? Involve everybody on your teams,” writes Sheridan.
Content marketing doesn’t work in a silo and without leadership. For content marketing to be most effective, leaders need to give clear ownership to someone over your content marketing strategy. From there, everyone needs to get on board, creating a culture of content. Your sales teams should integrate your content marketing into their sales processes. Your PR team should meet regularly with your social media experts.
“To say you have a culture of content is to say that everyone who works for your company understands the value of the information you provide and participates in making that information useful,” writes Marcia Reifer Johnston.
Overlap is bound to happen in your content marketing endeavors. The key is to have clear leadership over your strategy and regularly communicate your goals and initiatives, so your entire team can be engaged in your efforts.
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by Fronetics | Nov 2, 2017 | Blog, Data/Analytics, Logistics, Strategy, Supply Chain
In a recent study, MIT found that companies that focus on 5 key initiatives to improve their supply chain analytics can have a big impact on their bottom line.
Some supply chain companies are leaning on the power of analytics to help streamline their processes and get ahead of their competitors. But many companies have struggled to embrace the relationship between using analytics and implementing changes that can improve business performance.
The study, published by the MIT Sloan Management Review, asked 353 participants to discuss their understanding of their companies’ analytics systems. The results showed that though most companies have an analytics system in place, very few are using the results to implement necessary changes.
Obstacles to fully utilizing analytics included inaccurate data, cost, and lack of timely data. But the benefits far outweigh the challenges. Hanesbrand Inc., for example, used predictive analytics to make changes in their inventory processes and have since seen an increase in their production and purchase orders.
So how can your company start to incorporate supply chain analytics into your company culture?
Here are 5 tips to help kick-start your analytics implementation:
1. Supply chain analytics initiatives need a top-down mandate
In order to achieve analytical success that has an influence over organizational process, it’s imperative that upper-level management use the analytical systems. Executives need to promote and utilize the systems. Buy-in from managers and team members will be seamless when it’s coming from the top. David Dittmann, director of business intelligence and analytics services at Procter & Gamble Co., stresses that “it is impossible to win over thousands of people one small analytics victory at a time. Analytics must be a top-down mandate to succeed from an organizational perspective.”
2. The simpler the model, the more likely the use
If you want your company to embrace an analytics system, it’s important that the model is simple and easy to grasp. If employees don’t understand how to use the analytics or apply the results, they won’t take the time to implement the system. The more complex a system is, the greater the potential for team members to dismiss it. The Cleo Integration Suite (CIS), for example, promotes itself as an easy-to-use platform that can integrate seamlessly into your pre-existing software. CIS understands that supply chain companies need systems that are elementary to incorporate to achieve results.
3. Business knowledge is essential
Executives in the survey noted that an in-depth understanding of business processes and their effect on the bottom line is critical to supply chain analytics success. To develop the most effective model, companies need to have insight into all of the processes that make their company successful and be able to incorporate the results into these processes. Without this foundational information, the analytics are just “fun facts.”
4. Trust in the numbers
Time is a key factor in successful analytics implementation. In order to achieve timely results, organizations have to trust in the numbers the analytics provides them. “Trust can be built through a closed-loop change management effort that is centered on performance metrics that accurately reflect the current state of the supply chain system.” writes Melissa R. Bowers, Adam G. Petrie, and Mary C. Holcomb. Once these metrics are in place, it is easy to gauge the results against past processes.
Coca-Cola Global implemented a check-and-balances system to cultivate trust in their analytics. Anytime an employee chose to override the analytics system, it gave them feedback to see if their manual adjustments resulted in an improvement or a setback, creating trust in the employees and their dependence on the data.
5. Implement mechanisms to help develop analytics professionals gain business knowledge
Many supply chain companies are hiring analytics professionals to help implement these systems into their organizations. Though experts in their field, it’s important for these trained analytics professionals to learn about all aspects of your business. This business knowledge creates an open relationship between the business and the analytics, creating more opportunities for the numbers to aid in the processes.
Out are the days of order tracking and point of sales data, and in are the days of big data and analytics. Supply chain companies are quickly realizing the need to understand and implement these analytics systems into their day-to-day processes. Creating efficiency and savings using these systems is easier than you think.
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by Fronetics | Oct 24, 2017 | Blog, Current Events, Logistics, Strategy, Supply Chain
Cities should consider Amazon’s HQ2 search criteria as a roadmap for attracting innovative companies, empowering residents, and driving a healthy local economy.
We’re living through a seismic shift in the way business transactions are being conducted. E-commerce is now king. We might be tempted to think the decline of retail equates to business transactions being moved from physical space to a digital world. Will our cities and the shops that line their streets become obsolete in the face of e-commerce?
Amy Liu and Mark Muro of the Brooking Institute’s Metropolitan Policy Program contend that if Amazon’s recent search for a second headquarters (“HQ2”) has anything to show us, it’s that America’s cities still have an important role to play in the future of e-commerce.
How cities could change
Liu and Muro suggest cities take a close look at Amazon’s selection criteria for HQ2’s location and extrapolate the best ways to “build up the fundamental assets prized by innovative firms and industries.” In this way, cities can best “garner a bigger share of high-tech growth,” and furthermore, be a part of our nation’s gaining “a competitive foothold in the digital future.”
Liu and Muro draw four main takeaways from Amazon’s city selection criteria:
- Capacity to produce skilled, technical talent
- Access to domestic and global markets through modern infrastructure
- Connected and sustainable placemaking
- Culture and diversity
Cities that boast these characteristics will have the best chance at attracting the kind of companies that will shape the future of how we do business — e-commerce and beyond. These companies will employ and empower local talent. And not just highly skilled talent. I can’t help but think of this recent Wall Street Journal article about the impact that Amazon’s presence has had on Fall River, Massachusetts.
Such employment opportunities will attract new residents. New residents will boost the local economy. Strong local economies boost the health and well-being of the community. And the positive benefits snowball from there.
I’m speaking in generalizations here, but cities stand to gain quite a bit from considering Amazon’s HQ2 search criteria. Of course, there are plenty of negatives to making way for the Amazons of the world — the decline of Main Street being one of them. But if the digital world plays an increasingly important role in the ways we conduct business and commerce, isn’t there value in strategizing around it?
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by Jennifer Hart Yim | Oct 12, 2017 | Blog, Data/Analytics, Logistics, Strategy, Supply Chain
Shippers should be tracking these last-mile metrics to drive down the high cost of last-mile logistics.
This post comes to us from Adam Robinson of Cerasis, a top freight logistics company and truckload freight broker.
Using technology to improve last-mile metrics is essential to driving last-mile costs down, but how do shippers know if the technology is helping or hurting? The answer to this question lies in using last-mile metrics to track key performance indicators and target levels of service to ensure accountability, visibility and continued reduction of costs in last-mile delivery.
A recent survey of customer service experiences, reports DC Velocity, revealed many retailers feel current technologies do not address their customer service needs, and as few as 3 percent of retailers cite full support as part of their current systems. Unfortunately, history teaches shippers that reducing costs means cutting customer service, but integrating customer service data into delivery operations and transportation systems is key to increasing a brand’s value. In fact, 72 percent of survey respondents believe it is very important to improve access to data for in-transit shipments, which includes last-mile delivery. Essentially, shippers need to track these 11 metrics.
1. On-Time Deliveries Are King of Last-Mile Metrics
The number of on-time felt or late deliveries are more important than any other metric tracked in last-mile logistics. These metrics provide a quick yes or no analysis of the effectiveness of your last-mile logistics strategy.
2. Fuel Consumption Rates
Last-mile metrics involving fuel consumption rates can vary and depend on the preference of the company, but how fuel consumption rates are calculated can greatly influence whether a driver is saving or wasting fuel.
For example, overall fuel consumption costs may be lower, but interval-based fuel consumption rates could show consistent, stopping and starting patterns that do not coincide with existing routes and drive up fuel costs. As a result, fuel consumption rates should be calculated by averaging the total fuel costs per driver, all drivers, per delivery vehicle and per route.
3. Last-Mile Vehicle Capacity Used Versus Available
Last-mile logistics should also consider the capacity utilized against the available capacity in all last-mile delivery vans. This metric is calculated by dividing the available capacity by the total capacity. Excess available capacity rates allude to poor loading procedures or the need to consolidate routes. The same calculation is used to calculate capacity used, dividing the capacity used by total capacity.
4. Planned Versus Actual Mileage
Planned versus actual mileage last-mile metrics are calculated by dividing the actual mileage per vehicle, driver, or route by its own planned mileage. Higher actual mileage rates reveal problems with route planning or unforeseen detours to route schedules.
5. Driver Hours In-Motion and Stationary
In-motion and stationary driving hours are expenses in last-mile logistics, and, unless your company employs a fully autonomous and drone-assisted delivery network, stops are necessary. However, the amount of stops and hours of both in-motion and stationary position can help measure performance of drivers. Excess stationary hours or excess in-motion hours are calculated by dividing the total amount of time drivers spend on a route by the number of hours in motion and the number of hours stationary.
6. Cost Per Item, Per Mile, and Per Vehicle
Last-mile metrics should track the cost per item, per mile, and vehicle associated with a specific route and the company as a whole. As a result, shippers should average the total costs per item for a given route and for the company’s shipments over a set period. The same average process should apply to both mile and per vehicle metrics, too.
7. Number of Stops
Last-mile logistics and metrics should also track the number of stops per vehicle. This is important to monitoring fuel costs, but it can also allude to poor route optimization practices. In other words, vehicles with a high number of stops should be reevaluated for ways to improve route schedules.
8. Average Service Time
The average service time metric can be complicated because it involves different data to calculate, depending on the source of an order. Most commonly, it is calculated by dividing the total service time at the store by the total number of deliveries. In other words, what is the average amount of time spent per order between the store, the warehouse, and other pre-shipping processes?
9. Customer Complaints
The need to manage customer service and address customer complaints leads to another metric in last-mile logistics, reports Talking Points With Adrian Gonzalez. What is the total number of customer complaints, and how do they stack up against the total number of deliveries? This metric is calculated by dividing the total number of deliveries by the total number of complaints received.
10. Order Accuracy
Order accuracy is calculated by comparing the known inaccuracies of orders against all shipped orders. Since some consumers may never report inaccurate orders, it is difficult to track a specific order inaccuracy metric. Instead, shippers should track order accuracy rates by dividing the total number of shipped orders by the number of orders not subject to customer service disputes, calls or complaints.
11. Damage Claims
A final last-mile metric to track is also about problems with orders: damage claims. Shippers should track the number of incoming damage claims against the total number of shipments. This is calculated by dividing the number of damaged claims by the total number of shipments. The resulting value is the percentage of damage claims in decimal form.
Using Metrics, Shippers Can Improve Last-Mile Logistics
Metrics allow shippers to understand the ins and outs of last-mile logistics, and metrics provide a means of measuring the performance of last-mile logistics plans against actual processes and their associated costs. As a result, shippers can make changes to their operations to improve last-mile services through last-mile metrics, and knowing more about last-mile needs is key to providing more than just the standard last-mile delivery options.
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