by Fronetics | Oct 23, 2017 | Blog, Current Events, Supply Chain
Consumers will spend a record $9.1 billion during Halloween 2017.
U.S. consumers will take to the retail markets Halloween 2017 and spend a whopping $9.1 billion on Halloween costumes, decorations, candy and more, making it the largest spending for the spooky holiday to date.
The National Retail Federation reports that consumers are preparing to be the baddest witches on the block, spending almost a billion more dollars this year on supplies than in 2016 ($8.4 billion). And the men are really stepping up their game, spending on average $20 more per costume than women.
“Americans are planning to spend more than ever as they gear up for Halloween,” NRF President and CEO Matthew Shay said. “Retailers are helping customers celebrate in style with a huge selection of costumes, candy and decorations to cater to ghosts and goblins of all ages.”
From 2017 blockbuster hits like Wonder Woman and Spiderman, it’s no wonder the most popular costumes for kids are superheroes. And let’s not forget about Fido — the most popular costume for pets for Halloween 2017 is a pumpkin.
Still need inspiration for the boo bash you’re attending? Try heading over to Instagram, a source of inspiration growing 12% year-over-year. Other consumers will get ideas from online search (35.2%), a retail store (30.3%), Facebook (18.2%), Pinterest (17.9%), and pop culture (17.2%).
Need more fun facts about Halloween to get you into the scary spirit? Check out this year’s infographic from the NRF’s survey.
Halloween 2017 supply chain infographic
(Made with Canva)
Have a safe and happy Halloween 2017, everyone!
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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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by Elizabeth Hines | Oct 10, 2017 | Blog, Consumer Electronics, Current Events, Manufacturing & Distribution, Strategy, Supply Chain
Of legal obligation, financial incentives, and convenience, what best drives consumers to practice proper e-waste recycling?
The United States is a nation of consumers, and there are few things we enjoy more than our electronic gadgets. Unfortunately, for every new device — or upgrade — introduced to the market, there’s an older model that becomes obsolete.
The world produced 41.8 million metric tons of e-waste in 2014, according to a study published by the United Nations University. So how can we combat this growing problem?
The recycling option… and sometimes law
Recycling products that we’re no longer using is always good practice. It can help protect the environment from hazards that are in our electronics and batteries. And many times, the device can be refurbished and donated to a person in need.
Sometimes just asking people to recycle isn’t enough, though. Some governments have made it illegal not to recycle. For example, the EU has gone so far as to institute the Battery Directive. Understanding that batteries commonly contain elements such as mercury, cadmium, and lead, the EU has set an objective of improving environmental performances of batteries, and setting a standard for their waste management as well.
In the United States, cities like New York City have made it illegal to simply throw out electronic devices. Instead, residents need to bring their devices to a recycling center, many of them conveniently located at other electronic retail outlets.
Incentives
If less hazardous waste in landfills, a cleaner environment, and compliance with laws and regulations aren’t enough, how about saving money as an incentive to recycle e-waste?
Many manufacturers and retailers offer discounts on purchases with the return of old devices. Best Buy, for example, has experimented with trade-in and recycling programs that offer gift cards or cash for customers who bring in old devices. As programs like this can leave the retailer struggling to break even, they often aren’t financially attractive enough to be the sole incentive drawing consumers to recycle e-waste.
But one incentive that is very effective is also, probably, the most obvious — convenience. One survey found that 43% of respondents would be more likely to recycle e-waste were cell phone and battery recycling part of curb-side pickup.
The convenience of curb-side pickup for paper, plastic, and aluminum helped to make recycling ubiquitous in neighborhoods across the country. It’s the same thought process that leads researchers to believe that the convenience of a curb-side pickup will encourage more individuals to recycle their electronic devices and batteries.
This post originally appeared on EBN Online.
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by Fronetics | Sep 28, 2017 | Blog, Current Events, Strategy, Supply Chain
Terrorism is a reality that, unfortunately, requires our growing attention in the supply chain world.
The British Standards Institution Supply Chain Services and Solutions publishes an annual report that analyzes global trouble spots for supply chain operations. This year’s report focused on the continual rise in terrorist attacks and how it will continue to affect the supply chain.
In 2016, there were 346 attacks in just one year — that’s an 8.5% rise on the previous year, averaging 6.7 attacks every week.
Terrorism, in its broadest sense, describes the use of intentionally indiscriminate violence as a means to create terror or fear to achieve a political, religious, or ideological aim. This violence can take on many forms, including cyberterrorism, and can have dire consequences to the supply chain.
“The direct impact from acts of terrorism and the indirect effects from terrorist organizations’ exploitation of the supply chain have been, and will continue to be, critically felt across Europe,” said David Fairnie, principal consultant in supply chain security at BSI.
In 2016, supply chain terrorism attacks were more widely distributed than in any previous year, with 38% more countries suffering attacks. The top 10 countries for supply-chain-terrorism incidents accounted for $664 billion worth of global exports. That includes $96 billion of exports to the United States. Clearly, a significant volume of international trade is at risk for disruption by terrorist groups.
I recently spoke with Randy Russell of the Russell Group, an agricultural lobbying firm that works with farmers and manufacturers from the supply chain, to ask about his thoughts on terrorism and the impact it can have on the supply chain, especially related to our food and water supplies.
“Terrorism is a global problem that strikes locally. The net result of the horrible tragedy of 9/11 was a wake-up call to all Americans about the threat of terrorists groups. We have invested billions in intelligence and homeland security to ensure that a large-scale attack doesn’t affect two major areas in the U.S., our water supply and an outbreak amongst our food supply, especially our cattle industry.
“No country is completely safe, but we are exponentially better prepared to stop such attempts because of a well-coordinated effort. Remember at the heart of of terrorism is the hatred of democracy and the freedoms it is built upon. Their whole approach is to create fear and doubt within the boundaries of those who embrace freedom.”
We know the nation is doing its part to keep us safe, but how are we keeping our businesses and brands safe as well? The need for brand safety has never been higher. Sarah Golding, president of IPA and chief executive at CHI & Partners, called for the industry to do more to protective itself, stating that an estimated 20% of the $32 billion spent on digital video and display advertising is fraudulently billed.
So How Can You Prepare Your Supply Chain for terrorism?
Munters Lean Manager Marcelo Simiao weighed in on how he believes businesses can prepare themselves in the event of an attack:
“From the point of view of the supply chain, the consequences of a terrorist act on places such as airports, ports, and railroads are not much different from the ones caused by natural disasters. Therefore the preparations should be similar.
“The difference is that some of these areas don’t have contingency or emergency plans for natural disasters because risk varies according to regions. So, these areas should make a thorough risk analysis similar to other areas’ natural disaster plans, and also put it in place in the case of terror threats.
“Corporations should include in their risk analysis not only areas subject to natural disasters, but also the ones with high risk of terror attacks. They must include actions such as diverse footprint, secondary suppliers for the same components, emergency changes on factories set up. These actions are used to compensate losses/disruption of the supply chain flow.
“Furthermore, real-time data acquisition, big-data analysis, and effective planning are the key to fast reaction times for corporations once an attack/disaster happens. The sooner the corporation takes action in order to mitigate disruption, the less its flow will be affected. If an airport is closed, it is important to be the first one to know and the first one trying to move the cargo through alternate routes/intermodal.”
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by Jennifer Hart Yim | Sep 27, 2017 | Blog, Manufacturing & Distribution, Strategy, Supply Chain, Talent
Insights from the Procurement 2020 survey
This guest post comes to us from Argentus Supply Chain Recruiting, a boutique recruitment firm specializing in Supply Chain Management and Procurement.
it’s no secret that the world of Procurement is changing and fast. With automation, big data and burgeoning AI systems removing more and more of the profession’s “tactical” or “clerical” tasks, companies are calling on their Procurement teams to be more strategic, more nimble, and more innovative. They’re expecting their Procurement functions to deliver not just bottom-line cost-savings, but other sorts of value, adding to organizations’ overall competitiveness.
Procurement, you’ve come a long way, baby.
But a new survey of 200 C-Suite executives from a variety of industries and functions presents a rather dispiriting picture of the Procurement function today – or at least how it’s perceived. Held by Management Consulting firm Ayming, the survey explores a wide base of opinions from some of business’s top leaders – CEOs, CPOs, COOs, and CFOs – about the value Procurement has to add, and where it’s going to be in 2020. The survey, titled Procurement 2020, has lots of interesting insights, showing where Procurement is knocking it out of the park – and where it’s striking out.
The biggest headline takeaway? 83% of executives surveyed say that their Procurement function is not entirely strategic – meaning they don’t think it’s crucial to business leadership, and that it isn’t a key input when making high-level strategic decisions.
It’s a rough verdict, one showing that as much progress as the field is making, a lot of that development – the chance to be a true partner to business at the highest level – is still unfulfilled potential. Some of the other data is relatively damning as well: only 28% of executives surveyed viewed Procurement as a core aspect of their strategy. More than half (51%) of the executives do not consider their Procurement operating models to be effective as they stand today.
Interestingly, this last number breaks down differently across industries:
- Retail executives had the highest confidence in their Procurement function, with 43% of retailers considering their Procurement operations to be highly effective – and 18% considering them to be somewhat effective. Retail also had strong marks in terms of its strategic value from Procurement, with 79% of executives saying that its Procurement operations were “mostly or entirely strategically focused.”
- 27% of Manufacturing companies viewed their Procurement operations as highly effective – with 24% considering them to be somewhat effective. The Manufacturing industry also led the way in terms of strategic value, with 91% of Manufacturing executives saying that their Procurement operations were highly strategic.
- 21% of Technology companies, as well as only 21% of Healthcare companies, viewed their Procurement operations as highly effective.
- Dispiritingly, only 15% of Financial Services companies considered their Procurement operations to be highly effective.
The numbers represent a large base of dissatisfaction with how companies are prioritizing, training and supporting their Procurement departments. 44% of CEOs, as well as 44% of CFOs, consider their Procurement functions either very or somewhat effective. 52% of COOs gave a “very or somewhat effective verdict,” compared to (perhaps unsurprisingly) 56% of CPOs. Perhaps unsurprisingly, very large companies – most able to leverage a shared service model and consolidated spend – were most likely to report that they received a very high amount of value from Procurement: 36%.
Despite the survey saying that Procurement still has a long way to go, the broad base of executives surveyed often indicated a deep interest in helping the function get there. 48% of companies surveyed have either reorganized their Procurement function in the past 5 years, or are in the middle of reorganizing it, with a full 20% planning to reorganize Procurement in the next 24 months.
There are some other interesting and divergent opinions when it comes to how companies are seeking to increase their Procurement function’s effectiveness:
- 68% of executives surveyed believed that if Procurement gets involved earlier in new product creation, as well as long-term strategy, it’ll be able to add more value.
- 82% of CEOs believe that employee training and upskilling is a key way to improve Procurement effectiveness. In contrast, a 38% of CEOs believe that Procurement-specific technology is the answer.
- A large percentage of CPOs (90%) believe that upgrading technology is key to improving Procurement strategy (compared to 76% of CEOs), but across different industries there’s some disagreement about the best way to drive further value from Procurement: In the Financial Services, Transportation, Retail and Technology sectors, executives saw people and skills development as the biggest opportunity to add more value through Procurement, whereas Manufacturing executives saw reorganization as the best opportunity.
We tend to think that surveys like this are an opportunity for the field rather than an indictment. And despite some of the more negative responses, we happen to know tons of Procurement departments who are excelling and creating true strategic value for their stakeholders. But if these surveys are anything to go on, there’s much more to be done. We encourage you to dig into Ayming’s survey, as there’s a lot more data we only briefly covered here.
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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.
