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?
Related posts:
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.
Related posts:
by Fronetics | Sep 21, 2017 | Blog, Content Marketing, Logistics, Marketing, Social Media, Strategy, Supply Chain
Our resources for supply chain marketers include step-by-step DIY guides, industry reports, marketing templates, and case studies.
Here at Fronetics, we specialize in digital and content marketing for supply chain and logistics businesses. We understand the unique needs and challenges facing these companies, particularly when it comes to the consistent, strategic creation of content.
I try to provide regular tips, updates, and how-tos on this blog for those of you hoping to improve your marketing efforts. But sometimes our readers need a little more in-depth guidance. That’s why we have created a number of different resources for supply chain marketers.
Below, you’ll find a list and a summary of our 10 most popular resources. Included are step-by-step guides, industry reports, templates, case studies and more. These resources offer information on subjects from building a content strategy to creating better content to social media use among supply chain businesses.
I hope you enjoy! And, as always, if you don’t see what you’re looking for, please email me and let me know. I’m always seeking new ideas for content that will be helpful for supply chain marketers.
10 resources for supply chain marketers
Use these 10 resources to create a multi-channel content strategy that maximizes your digital reach. After all, a well-developed content strategy and social media presence will help prospects to find you, buyers to know you, and customers to trust you.
1) How the Logistics and Supply Chain Industries are Using Social Media
Fronetics conducted a survey of individuals within the logistics and supply chain industries. The objective of the survey was to gain insight into the use of social media within these industries. Specifically, to learn more about why companies within the logistics and supply chain industries are using social media, the benefits they have realized, and challenges they have encountered.
2) Social Media and the Logistics and Supply Chain Industries 2016
Companies within the supply chain and logistics industries have begun to recognize the value of social media — and are starting to reap the benefits. Both large and small businesses alike can profit from the use of social technologies as part of their marketing strategy, and they can reduce their marketing costs by doing so. This white paper defines social media and social technologies, identifies users and usage patterns, and describes some of the benefits that companies within the logistics and supply chain industries can realize through participation.
3) 3PL Cerasis Acquires 98 New Customers through Content Marketing
This case study looks at Cerasis, a leading freight logistics company. Despite realizing positive growth for 15 years, Cerasis was not attracting larger and more sophisticated shippers, brand awareness was low, and most importantly, they were not perceived as a leader within the industry. A content marketing strategy — inclusive of participation in social media and content creation, curation, and distribution — led to 14% increased revenue, 14% increase in lead-to-customer conversion rate, and over a 1000% increase in web and social traffic.
4) Monthly Marketing Reporting Template
Tracking and monitoring certain marketing metrics helps you quantify the progress of your marketing program. But you can also measure the ROI and make changes to your strategy to make it more effective. Use this report template to optimize your strategy, produce monthly reports, and create presentations.
5) Content Use in the Logistics and Supply Chain Industries
Content marketing has transformed the way businesses connect and share relevant information with their audiences. The publication and distribution of content is a strategy now widely used by supply chain companies to build trust and influence among peers, prospects and customers. Through a survey conducted on the use of content within the logistics and supply chain industries, this report offers broad insight into the overall role and influence of content.
6) Content Marketing Guide for the Logistics and Supply Chain Industries
Despite all its benefits, content marketing isn’t so easy. In fact, supply chain and logistics companies report that creating and executing an effective content marketing strategy is a top challenge for their businesses. In response, we developed this guide. It will help you create a strategy that will attract your target audience and drive profitable customer action.
7) Content Strategy Template
An effective content marketing strategy is one that is aligned with your company’s business goals and objectives. Furthermore, an effective content marketing strategy focuses on attracting and engaging prospects. All created, curated, and distributed content should target your ideal customer. Use this template to help develop and drive your content strategy.
8) On Writing Good Content: A Guide for the Logistics and Supply Chain
27 million pieces of content are shared every day. And most if it isn’t worth reading. To attract readers, your content must stand out. You must be strategic about how often you publish, where you distribute, and, most importantly, the quality of the content your produce. This guide will help you learn the basic principles of good content. It will also help identify content creators within your organization and brainstorm ideas for original and effective content.
9) Blog Editorial Calendar Template
This template is designed to keep you on track as you develop content that will attract and engage your prospects and customers. It will help you map out your content in a strategic manner, maximize productivity, and keep you organized. It includes weekly and monthly worksheets, as well as an ideas worksheet for tracking blog post ideas.
10) 12 Elements of an Effective Content Marketing Strategy
Content marketing is a strategic marketing approach focused on creating and distributing content to attract and retain a clearly defined audience. Interest in content marketing has climbed steadily since 2011, but a 2017 survey of 6,000+ global marketers found that 71% considered it their primary approach to marketing (76% in North America). This slideshow walks you through 12 elements of an effective strategy to achieve the best results for your business.
by Jennifer Hart Yim | Sep 14, 2017 | Blog, Logistics, Strategy, Supply Chain
by Fronetics | Aug 22, 2017 | Blog, Content Marketing, Logistics, Marketing, Supply Chain
Supply chain and logistics businesses need to be about more than themselves, and content marketing can help them get there.
While conventional wisdom tells us that content marketing is useful and important for any business, there are still some in the supply chain and logistics industries that remain unconvinced. It’s an understandable conundrum: Content marketing requires significant time, labor, and resources, and it can take quite some time to start reaping benefits.
The bottom line is that studies have shown that of companies with a documented content marketing strategy, 86% find their efforts to be successful in generating new leads, creating lasting relationships with customers, and increased ROI.
How can content marketing make my business better?
Consider this: Content marketing helps a company become more than just another business to customers — it can become a valuable resource for everything related to their products and services.
A good content marketing strategy is about understanding the questions and concerns that are particular to your customer base, and offering quality information and analysis that answers those needs. In the words of River Pools & Spas co-owner Marcus Sheridan, “The moment we stopped saying, ‘We’re pool builders,’ and started saying, ‘We are the best teachers in the world about Fiberglass pools and we just happen to install them as well,’…that was one of the most prosperous days of our lives.”
It’s worth noting that Sheridan was discussing his company’s turnaround from near bankruptcy to becoming a global leader in its field. He attributes this success to switching his company’s mission from selling its product to educating potential buyers — namely, content marketing.
Your business is more than its product.
Recognizing that your business has more to offer than its primary product or service is at the core of what content marketing is all about. Kirk Cheyfitz, CEO of Story Worldwide, puts it this way: “Like a decent human being, brands need to be about more than themselves.”
Start thinking about your business this way. You have a team of people with a tremendous aggregate of experience, expertise, and perspectives. That means that you can offer your audience far more than simply your primary product or service: You can offer them knowledge. Your audience is, in turn, far more likely to become buyers as you provide value — which builds trust and cultivates lasting, fruitful relationships.
What can I do to implement an effective content marketing strategy?
If you’re just jumping on the content marketing bandwagon, it’s an exciting time for your business. You might want to check out our Twelve-Step Guide to a Content Marketing Strategy and other resources to help you through the process.
A visual content audit is a solid first step. The main thing to keep in mind is that you have valuable resources at your disposal that you can offer your audience of potential buyers — start sharing!
Related posts:
by Jennifer Hart Yim | Jul 26, 2017 | Blog, Current Events, Logistics, Strategy, Supply Chain
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 expands the company’s distribution network, adding 440 refrigerated warehouses within 10 miles of 80 percent of the population.
- 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.
This post originally appeared on the Argentus blog.
Related posts:
