by Fronetics | Jul 10, 2014 | Blog, Marketing, Social Media, Strategy, Supply Chain
Kale is the hippest and trendiest of vegetables.
The dark leafy vegetable has received Bon Appetit’s dish of the year award, it was served at the White House Thanksgiving, and it has received ringing endorsements by celebrities and celebrity chefs. Kale also has its own T-shirt, lawsuit, and day. Did I mention the book? 50 Shades of Kale is an Amazon bestseller.
The appearance of kale on restaurant menus has increased by 400 percent since 2008. A recent Guardian article reported that sales of kale at Marks & Spencer are already up 32 percent on the same period last year and that it expects this rise to continue in the longer term. Similarly, at Waitrose, sales of kale are up 20 percent year on year.
How is it that kale is cool? Much of it has to do with re-branding – communicating a new image for the vegetable and communicating new (and more flavorful) uses.
The supply chain is suffering from an image problem. If we are going to attract new talent we need to make an effort to make the supply chain hip. The supply chain should look to kale for inspiration. If a leafy green vegetable can realize such a rapid ascent to popularity, so too can the supply chain industry.
by Jennifer Hart Yim | Jun 26, 2014 | Blog, Internet of Things, Logistics, Manufacturing & Distribution, Marketing, Social Media, Strategy, Supply Chain
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.
Supply Chain Management will use the Internet of Things to improve factory workflow, increase material tracking, and optimize distribution to maximize revenues.
“Clap on “(clap, clap), “Clap off” (clap, clap), “the Clapper”!!
When introduced in 1986, “The Clapper” light switch was considered a significant breakthrough in home automation. Today, with advances in communication, sensors, and internet-connected devices, you can change the temperature of your home, your lights, appliances, and security system all from your smartphone — from anywhere in the world. This is just one simple example in the growing “Internet of Things” technology. The potential is enormous, not just in home automation but in industrial applications like manufacturing and distribution.
The Internet of Things (IoT) is broadly defined as the merging of the physical and digital worlds. It’s a scenario in which people and/or objects can be uniquely identified with the ability to share information over a network without any actual conscious intervention. The data is automatically transferred, analyzed, and used to trigger an event. Figure 1 below demonstrates how one of these devices functions and interacts with the Internet and other devices.
Figure 1.
The IoT and Supply Chain Management
While many of us may be familiar with recent advancements in home automation, like the Nest thermostat, the real impacts of IoT will be in Supply Chain Management. Recent reports by Cisco, IDC and Gartner all claim that a significant increase in the number of devices making up the Internet of Things will have a profound impact on how future supply chains will operate. The 2011 Cisco report predicts there will be 50 billion connected devices globally by 2020, or about 6.5 devices for each person, up from only approximately 2.5 today (see figure 2). More active devices means more available data — to the point where they will be ubiquitous and transparent in our every day lives.
Figure 2.
Impacts to supply chain will be broad and far-reaching, utilizing Big Data to gather and analyze information across the entire process.
Some IoT devices have been in place for some time, such as commercial telematics now used in trucking fleets to improve logistics efficiency. Other commercial type applications — like fabrics that use sensors within clothing and industrial fabrics to monitor human health or manufacturing processes — are just being developed now.
Mark Morely of GSX, a leading provider of monitoring and management solutions, recently discussed three key impacts he believed IoT would have on the Supply Chain industry: Pervasive Visibility, Proactive Replenishment, and Predictive Maintenance. This is a great way to explain the immediate benefits, so I will summarize Mark’s description and expand with some real-world examples.
Three key impacts the IoT will have on the supply chain industry
1) Pervasive Visibility
Mark describes this as the ability to track and monitor a shipment in real time using a combination of sensors (RFID), connected devices, and communication channels (3G/4G, GPS, internet). It provides the ability to have real-time transit status, including location, temperature, and diagnostics — far more information than legacy infomatics provided.
One great example I found is from a company called Purefresh, who are at the cutting edge of Supply Chain IoT technology. They offer not only real-time shipment condition tracking, but also the ability to model and develop transit routes to optimize freshness in perishable cargo — taking into account environmental elements, such as ozone, atmospheres, and temperature. They indicate that an estimated “30% to 50% (or 1.2-2 billion tons) of all food produced on the planet is lost before reaching a human stomach.” IoT advancements will not only better optimize transit flow but also better serve humanity.
2) Proactive Replenishment
It’s the capability to automatically recognize the need to order and restock a product on a “machine-to-machine” basis, reducing the need for human interaction. The most common example is that vending machines will know when it’s out of or low on a Snickers bars and immediately trigger an alert to reorder them, instead of waiting for a service person to check on the vending machine and reorder products manually. The result is less human intervention, quicker replenishment, better sales forecasting and ultimately increased revenues. Oh, and many more happy office workers who really need a mid-afternoon sugar rush!
Opportunities for this technology go far beyond the candy vending machine though. Industries with time critical inventories like hospitals and pharmacies can better maintain supplies by supplementing human inventory control with real time use tracking. A much less critical but more broadly used application comes from Coke’s Freestyle fountain soda machine. It’s about the same size as the existing vending machines but it can dispense 126 kinds of flavors, offering an almost infinite amount of combinations. It uses Radio Frequency ID (RFID) cartridges that store the concentrated syrups in the machine. The RFID chips detect how much of each syrup it has and what combinations are being used. When it detects that it needs supplies, it transmits the information to both Coca-Cola and the storeowner including what has been sold, a record of when sales occurred, troubleshooting information, and service data. As a result, soda sales and customer satisfaction increases, all with less effort by the storeowner.
3) Predictive Maintenance
This application is closer to the true machine-to-machine communications the IoT was intended for. From large-scale manufacturing to diagnostics on the family minivan, predictive maintenance utilizes sensors and connected devices to monitor and react to issues. This self-diagnosis capability can detect a potential issue before there’s a failure, order a replacement part, and even schedule maintenance to avoid costly downtime.
Not only does predictive maintenance help keep factories running longer and the family minivan from unexpectedly breaking down, it can improve efficiency throughout the whole supply chain. If equipment manufacturers constantly receive service data from factory equipment, they can better trend problems and focus on those issues for future products. Parts depots can better forecast inventories and determine consistent safety stock levels. IoT, in this example, is a true B2B (business to business) — automating the communication between businesses on every link of the chain.
In relation to home automation, predictive maintenance will become integrated into our everyday lives. Appliances will become smarter, more efficient, and easier to monitor. Internet-connected sensors will be embedded into everything from refrigerators to washers/dryers and HVAC systems. So much so that companies like GE are investing heavily into these technologies, in both commercial and industrial applications. These connected appliances will perform self-diagnosis, determine the most cost-efficient time to operate, and even automatically order maintenance parts like furnace filters when needed. Imagine getting an alert on your smartphone that your forced hot air furnace needs a new air filter, and it has already been ordered through your Amazon account. It just saved you effort in remembering to check the filter and ordering it — leading to a cleaner, longer-lasting, and more efficient furnace.
So, why isn’t IoT here yet?
It’s close but there are still hurdles to overcome. In recent years, advances in sensor technologies, 4G communications, and cloud computing has made achieving Internet of Things capabilities even more possible. But for companies in the Supply Chain to leverage these opportunities, they will need to expand investment into cloud-based platforms that can support scalable devices and data-analysis services.
Critical to IoT’s success will be the necessary “middleware” software communication protocols to link all these devices. Companies like ProSyst and open-source SW projects like OPENIoT are pioneering these capabilities. But even with this progress, agreements on industry standards will be key to long-term platform success.
Having a common IoT protocol will be necessary to link the physical and digital worlds on a consistent and economical basis. Understanding the need for standards and common architectures, Intel has led the way by recently creating the not-for-profit Industrial Internet Consortium (IIC) with other vested companies like AT&T, Cisco, GE, and IBM. The connected Supply “Chain” will become exponentially longer once these common standards are in place.
The Internet of Things trend is quickly approaching and will impact the way we live and work through increased productivity and efficiency. Supply Chain Management will continue utilizing these advanced technologies to improve factory workflow, increase material tracking, and optimize distribution to maximize revenues.
In 1986, I recall how innovative I thought the Clapper was — I couldn’t have imagined how connected we would become only 28 years later. And the next 28 will be sure to amaze.
Steve Mondazzi is a Principal Master Planner in the Defense Contracting industry. After 20 years’ experience in project management and schedule development, he decided to further his education by recently earning a Masters in Technology Management at the University of New Hampshire. He’s a certified PMI Project Management Professional, an entrepreneur, and an avid lover of all things technology. He currently resides in Massachusetts with his wife, two teenagers, and an excessive collection of headphones. Steve can be contacted via his Twitter account @schedulepro or through LinkedIn.
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by Fronetics | Jun 24, 2014 | Blog, Logistics, Marketing, Social Media, Strategy
Many companies within the logistics and supply chain industries are stuck on the social media starting line. The reason – “they can’t get past the word ‘social’ and the perception it creates.” The reality is that social media is a tool that can be utilized to create value and grow your business.
This is the fifth in a series of articles that provides examples of companies within the logistics and supply chain industries who have moved beyond the social media starting line and have realized the business value of participating in social media.
Logistics industry start-ups leverage social media
Social media allows for instant connections and communication. Two start-ups, Trucker Path and Keychain Logistics, have created solutions for the logistics industry which leverage these characteristics of social media.
Trucker Path
Launched in February 2013, Trucker Path is a mobile platform for the trucking industry which connects shippers and carriers, and provides crowdsourced logistical assistance.
Specifically, the Trucker Path app (available via iOS, Andriod, and Web) enables carriers to find truckloads, shippers to move their cargo, and for truckers to get crowdsourced logistical information such as the locations of truck stops, rest areas, and information on weigh stations.
Keychain Logistics
Keychain Logistics uses technology to automate the marketplace and match shippers with carriers.
The Keychain Logistics app (available via iOS, Andriod, and Web) provides instant communication between shippers and carriers – eliminating the need for human powered brokerage.
Both Trucker Path and Keychain Logistics have recognized that there is more to social media than socializing – they have recognized that social media is a business tool.
by Fronetics | Jun 23, 2014 | Blog, Logistics, Marketing, Social Media, Strategy, Supply Chain
Many companies within the logistics and supply chain industries are stuck on the social media starting line. The reason – “they can’t get past the word ‘social’ and the perception it creates.” The reality is that social media is a tool that can be utilized to create value and grow your business.
This is the fourth in a series of articles that provides examples of companies within the logistics and supply chain industries who have moved beyond the social media starting line and have realized the business value of participating in social media.
Cerasis is a top freight logistics company and truckload freight broker. During the company’s first 15 years it focused on traditional sales and marketing strategies and relied heavily on referrals. This strategy worked. Cerasis acquired new customers, retained current customers, and realized positive growth. However, Cerasis was not viewed as an industry leader, and brand awareness was low.
In 2012 Cerasis decided to participate in social media and launch a content marketing strategy.
Cerasis began actively blogging, and began using Twitter, LinkedIn, Facebook, Pinterest, and Google+. The company quickly became seen as a leader within the industry, and brand awareness increased dramatically.
Within 15 months the company received 71 leads from search engines, 65 leads from social media, and 52 leads from webinars. Even more impressive, within 15 months the company gained 35 customers (one customer within the freight logistics industry can mean a lot of revenue).
The results show that Cerasis is no longer on the social media starting line – rather, Cerasis is now a leader, not only in the freight logistics industry, but also in using social media as a business tool.
by Fronetics | Jun 17, 2014 | Blog, Marketing, Social Media, Strategy, Supply Chain
Many companies within the logistics and supply chain industries are stuck on the social media starting line. The reason – “they can’t get past the word ‘social’ and the perception it creates.” The reality is that social media is a tool that can be utilized to create value and grow your business.
This is the third in a series of articles that provides examples of companies within the logistics and supply chain industries who have moved beyond the social media starting line and have realized the business value of participating in social media.
Sourcemap: End-to-end supply chain visibility
In the wake of events such as hurricane Sandy, the Fukushima nuclear distaster, the Bangladesh factory collapse, and the horse meat scandal, businesses and consumers are increasingly demanding supply chain transparency.
Sourcemap is a social network which provides end-to-end visibility within a supply chain. Sourcemap offers supply chain mapping, crowdsourced RFIs, risks and alerts, and KPI dashboards. Launched by researchers at MITs Media Lab, Sourcemap was recently named one of Spend Matters Top 50 companies to watch.
Figure 1: What Sourcemap Offers
Sourcemap connects producers, manufacturers, and consumers for end-to-end visibility. Manufacturers can use Sourcemap to trace products down to raw materials, to manage risk, to and plan more resilient, efficient supply chains.
Consumers can use Sourcemap to learn where things come from and what they’re made of, including their social and environmental impact.
Stonyfield used Sourcemap to create an interactive sourcing map for its yogurt – to show consumers where the ingredients that go into their yogurt comes from.
Consumers simply click on an ingredient shown on the map (Figure 2) and then are shown information about the specific ingredient (Figure 3).
Figure 2
Figure 3
In the process of creating the map, Stonyfield engaged suppliers and fostered increased communication and stronger relationships. These relationships, this communication, and the ability for companies (and consumers) to know their supply chain from end-to-end is what Sourcemap wants to provide.
Sourcemap takes social media and makes it a vital supply chain tool.
by Fronetics | Jun 9, 2014 | Blog, Marketing, Social Media, Strategy, Supply Chain, Transportation & Trucking
Many companies within the logistics and supply chain industries are stuck on the social media starting line. The reason – “they can’t get past the word ‘social’ and the perception it creates.” The reality is that social media is a tool that can be utilized to create value and grow your business.
This is the second in a series of articles that provides examples of companies within the logistics and supply chain industries who have moved beyond the social media starting line and have realized the business value of participating in social media.
Long-haul truck drivers are more likely to be overweight or obese than the general public (86% v. 65%). Additionally, truck drivers are more likely to smoke, have high blood pressure, and suffer from sleep apnea than the general public. The poor health of long-haul truckers is largely due to their lifestyle. Long-haul trucking is a sedentary lifestyle. It is also a lifestyle which makes it challenging to access gyms and healthy foods.
The cost of poor health is enormous – for truckers and for their employers. The estimated annual health care costs of obesity-related illness are $190.2 billion, or nearly 21 percent of annual medical spending in the United States. Looking specifically at the trucking industry – a study published in the Journal of Occupational and Environmental Medicine found that obese truckers had an annual average total health care cost of $1,944, compared with $1,755 for overweight truckers and $1,131 for normal-weight drivers. A sleep apnea screening and treatment program conducted by Schneider National identified 350 drivers who required treatment. Treating these drivers not only improved their health, but it also improved the company’s bottom line – over a one year period, Schneider National saved $530 per month per driver in insurance costs and saw a 71 percent reduction in accidents involving those drivers during the same period.
An article in Today’s Trucking shares the story of Jason Janneta a 42 year old trucker who had been driving for 20 years and was a poster boy for the statistics – overweight and unhealthy. Fed up, he decided to make a lifestyle change. Within six months of embracing a healthier lifestyle he had lost 80 pounds. During this period he had also taken to Twitter to share his experience and to motivate other truckers to adopt a healthier lifestyle, lose weight, and improve their health.
Tweeting as @urbanhauler with #fittrucker, Jannetta captured the attention of other truckers (he quickly grew his followers to more than 1,500) and the attention of Jared Martin, the President of Speedy Transport.
Martin recognized the value of Jannetta’s efforts and of #fittrucker – healthier individuals, a healthier bottom line, and opportunity to attract new drivers.
According to Martin:
“I really enjoyed a lot of his posts and what he was trying to do for the industry, so we brought him in for a meeting.”
The two discussed the role of health and fitness on the future of the transportation industry. The next day, Martin offered Jannetta a job at Speedy Transport – Driver Trainer and Wellness Advisor. Martin accepted the position and now tweets for @speedywellness where he brings “#trucking and #fitness/#wellness together.”
Speedy Transport is one company which has recognized social media as a business tool and has moved far beyond the social media starting line. The Twitter profile of @speedywellness rightly points out “we #ChangeTheGame of #Trucking.”
