by Jennifer Hart Yim | May 11, 2017 | Blog, Current Events, Logistics, Manufacturing & Distribution, Supply Chain, Transportation & Trucking, Warehousing & Materials Handling
This post comes to us from Adam Robinson of Cerasis, a top freight logistics company and truckload freight broker.
Imagine a world where automation comes together with technology to deliver products without human intervention. An order is placed by a consumer. 3-D printers pick up the details and print the finished product. It’s then picked by robots from the shelves, packaged and placed into a self-driving truck. The trucks leave the facility, and drones are automatically dispatched from the truck to deliver products while moving. The truck never stops until arriving for reloading.
This example generates a huge amount of data that can leverage in the supply chain. But, the same data can have a drastic impact on transportation planners and agencies around the globe. While this example may still be a few years off, it is important that you understand how the top emerging trends in automation will shape supply chains and transportation processes in the coming years.
The Standard Definition & Components of Automation
Today: There is a standard definition of automation in the supply chain. Anything that can be handled via today’s computer systems can be automated. This includes billing, generation of bills of lading, compliance reports, and even movements throughout a factory or warehouse floor.
Historically, automation has been applied to virtual processes, like order auditing or customer service reports. However, the trends in automation are changing to reflect actions that function more like artificial intelligence, not just a search and locate program on the computer.
Additive Manufacturing
What is it?
Additive manufacturing includes all actions in the supply chain that can enhance existing factory production, if not replace it entirely. Additive manufacturing may be handled manually, but automating this process is as simple as turning on the power and connecting to the Internet of Things (IoT).
For example, additive manufacturing might involve the use of 3-D printers to create replacement parts at the store for consumers.
Today’s status: Unfortunately, the capacity of 3-D printers remains in infancy, capable of only producing simplified parts out of liquid polymers.
Virtual Reality Comes to the Forefront.
Meanwhile, Google Glass and other virtual reality tech are changing how customers complete their orders. In addition, the same technology can be overlaid with augmented reality to give repair technicians and individuals greater resource access when making repairs, checking order contents and fulfilling orders.
For example, augmented reality glasses will soon detect package dimensions and classify the package according to dimensional pricing models.
Today’s Status: Today, this technology is limited to automated identification and data capture (AIDC) applications. Advancements in virtual reality over the past year indicate its future might be much closer than “meets the eye.”
Additive manufacturing will gradually move products from warehouses and distribution centers to be closer to end-users. As a result, the amount of last-mile traffic may increase.
Robotics Enhance Inbound and Outbound Logistics for Shippers.
Another trend in automation involves robotics. By definition, robotics are the icons of automation. They perform functions at the request of a system or person, but more of today’s robotic systems are performing duties upon request from an order fulfillment system.
The order process automatically notifies robots in warehouses and triggers the flow of processes as seen in the opening example.
Robotics Improve Inbound and Outbound Logistics.
Robotics are not isolated to warehouse pulling for outbound logistics. They can be used to manage inbound and outbound processes and strategy. Through trends in automation and robotics, supply chain companies will have the tools and resources necessary to ramp up throughput and decrease product cycle from order to delivery. Therefore, more trucks and drivers will be needed, but the looming driver shortage and capacity crunch will trigger another automation trend.
Autonomous Vehicles/ Trucks
Automation begets automation. With advances in technology and the IoT, most major companies, including Uber, Facebook, Google, and Amazon, have launched autonomous vehicle and truck pilot programs.
These driverless vehicle programs will give supply chains access to a new inexhaustible resource for moving products, overcoming the challenges inherent in the driver shortage and capacity crunch.
The driver shortage and capacity crunch are likely to come to a head in 2017, as consumers demand more product, at lower costs and faster than ever before.
Some setbacks have occurred, like the first self-driving car wreck earlier this year. With each setback and challenge, companies have pushed back to overcome the obstacles.
In response to increased interest in driverless vehicles and trucks, the National Transportation Safety Board (NTSB) has issued recommendations and created an advisory panel to review ongoing driverless vehicle advancements and maintain public safety.
Transporters and supply chains will respond to this direction by leveraging the trends in automation and power of data to ensure compliance with increased government oversight, through the agencies you represent.
Companies have already tested cross-country driverless trucks, albeit with a person ready in the cab to take over in the event of a system failure. However, the wide-scale deployment of this level of driverless trucks is far from implementation.
In the interim, more automated vehicle systems will work in tandem with drivers to enhance safety and maintain vehicle control. Similar systems are already deployed in crash and pedestrian detection systems, automated braking and tracking control in today’s vehicles. It is not difficult to apply today’s technology and automated features to the fleets and drivers of 2017.
Trends in Automation: Whats the Potential?
The potential applications of this type of technology can include real-time traffic condition monitoring and warnings, redirecting traffic before pile-ups and accidents occur, similar to Google Maps’ capacity to show traffic congestion in real-time.
Data through such systems can automatically feed back into transportation planners’ systems to automatically change signal phase and timing and enable immediate rerouting or adjustment of traffic flow on a broader scale.
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by Jennifer Hart Yim | May 10, 2017 | Blog, Current Events, Logistics, Strategy, Supply Chain
Updated January 16, 2025
Starbucks’ closely managed supply chain may be the key to the premium coffee giant’s success.
Highlights:
- Starbucks attributes much of its success to its vertically integrated supply chain, managing every step from coffee bean sourcing to final cup, allowing for consistent quality control and ethical sourcing practices across its global operations.
- Unlike its competitor Dunkin’ Donuts, which outsources most operations, Starbucks directly manages relationships with 300,000 coffee growers worldwide through its Coffee and Farmer Equity (C.A.F.E.) standards, ensuring both quality standards and ethical practices.
- This supply chain strategy has contributed to Starbucks’ significant market dominance, with the company generating $32.2 billion in revenue in 2023 and operating nearly 37,000 stores globally, far outpacing Dunkin’ Donuts’ presence and revenue.
The Secret is the Supply Chain, According to Starbucks
The international coffee giant has widely studied and acclaimed supply chain management practices, which, according to some, make Starbucks’ coffee and customer experience superior to those of its competitors.
So, what exactly is Starbucks doing differently than other international coffee retailers? Is its coffee truly better?
The Standards
Starbucks uses a vertically integrated supply chain, which means that the company is involved in every step of its supply chain process, all the way from the coffee bean to the cup of coffee sold to consumers. The use of a vertically integrated system means that Starbucks works directly with its nearly 300,000 worldwide coffee growers. The company believes that interacting directly with farmers ensures that all of its coffee beans will achieve the same quality and flavor standards.
Starbucks also works directly with growers because the company is committed to only selling ethically sourced, Fair Trade coffee. The company even has its own Coffee and Farmer Equity (C.A.F.E) standards and Coffee Sourcing Guidelines (CSG), which require that all suppliers must meet certain ethical, sustainability, and quality standards. Starbucks uses a stringent vetting process to ensure its growers meet and adhere to these guidelines.
Not only do the C.A.F.E. practices and CSG benefit Starbucks, they also provide advantages for suppliers. The guidelines protect workers’ rights and ensure that all growers have safe and humane working conditions. Suppliers also must adhere to minimum-wage requirements and commit to not using child or forced labor.
Lastly, as a part of its C.A.F.E. guidelines, Starbucks commits to providing its suppliers with special training and education programs. Starbucks’ direct interaction with growers, along with their sourcing and social responsibility standards, make suppliers feel like they are integral parts of Starbucks’ corporation. The close relationship and frequent communication between Starbucks and its suppliers, therefore, make the company’s supply chain less susceptible to major disruptions, such as overplanting or worker shortages.
The Process
After the growers pick and package the coffee beans, truckers drive the unroasted beans to ocean liners that ship the beans to six storage sites in the U.S. and Europe. The beans are roasted in these storage facilities and then packaged for shipment to Starbucks’ eight central, and forty-eight regional, distribution centers. By only using a handful of storage facilities, Starbucks can closely manage the sites’ operations and guarantee that all beans are roasted and packaged in the exact same way.
The company’s close control over the roasting process also ensures that Starbucks’ coffee tastes the same in all of its retail locations. Starbucks’ active participation in the supply chain also ensures that the distribution centers receive the products they need so they can fulfill orders and make their roughly 70,000 weekly deliveries on time.
The size and scale of Starbucks’ operations should make its supply chain inherently complex. In 2008, however, Peter Gibbons, the Executive Vice President of Global Supply Chain Operations, overhauled the company’s expensive, ever-growing supply chain into a streamlined, cost-effective process that relies on simple operational structures and metrics.
First, he grouped all supply chain jobs into four categories: plan, source, make, and deliver. Next, he developed a highly centralized logistics system that allows the company to better manage and coordinate its global network. Lastly, he implemented a binary, 0 or 1 “scorecard system” to assess all supply chain activities on four metrics: safety in operations; service measured by on-time delivery and order-fill rates; total supply chain costs; and enterprise savings.
Along with the simple tools and processes that Gibbons created, Starbucks also relies heavily on digital technology to manage its supply chain. The company uses an automated information system that allows it to monitor demand, inventory, capacity, and scheduling in real time. Therefore, Starbucks can quickly adjust its plans and operations as needed. Starbucks’ simple structure and management tools, as well as its use of digital technology, allow the company to achieve a high level of efficiency and agility, both of which are key to organizational success.
The Market
Starbucks’ biggest competitor in the international coffee market is Dunkin’ Donuts. In contrast to Starbucks, which owns its entire supply chain, Dunkin’ Donuts outsources its production processes. Dunkin’ Donuts relies on a third-party intermediary, National DCP, to handle the company’s supply chain operations.
Dunkin’ Donuts also franchises its manufacturing locations, as well as nearly all of its retail spaces. Conversely, Starbucks franchises less than 50% of its retail locations, and, as of March 2016, was no longer accepting applications for new U.S. franchises. Starbucks also uses few to no intermediaries to carry out its supply chain operations.
Unlike Starbucks — which is committed to using 100% sustainably grown, Fair Trade-certified coffee beans — Dunkin’ Donuts promises to produce its coffee as “sustainably as possible.” The company works with Fair Trade USA and the Rainforest Alliance to implement sustainable sourcing practices, as well as training programs for farmers. However, Dunkin’ Donuts only offers two permanent menu items that are Fair Trade-certified: 30% Rainforest Alliance Certified™ Dark Roast Blend and 100% Fair Trade Certified™ espresso.
While Starbucks’ critics may try to argue that the company’s supply chain model and social responsibility efforts are not true differentiators, the statistics tell a different story.
Starbucks was founded roughly twenty years after Dunkin’ Donuts, but the company is already much larger than its rival. In 2023, Starbucks generated $32.2 billion dollars in revenue, while Dunkin’ earned only $1.4 billion. Starbucks also has a larger global presence, with nearly 37,000 retail stores in 80 markets worldwide, compared to Dunkin’s 13,500 locations in 40 countries.
Starbucks also primarily markets to higher-income customers looking for a premium coffee experience, while Dunkin’ Donuts has traditionally retailed to more blue-collar consumers who want coffee on the go. Therefore, Starbucks’ clientele is willing to pay more for coffee that they perceive to be made from higher-quality, socially responsible sources. It used to be that Starbucks’ customers would also pay more for coffee in order to enjoy the amenities offered in the company’s coffeehouses, but even with a consumer shift towards drive-thru and mobile pick-up preferences, Starbucks’ customers seem willing to pay more for convenience. Because Starbucks’ patrons generally have higher disposable incomes than those of Dunkin’ Donuts’ customers, they are less likely to adjust their consumption patterns during economic downturns. Thus, Starbucks is less susceptible than Dunkin’ Donuts to major fluctuations in revenues that could result from negative macroeconomic swings.
The Future
While Dunkin’ Donuts loyalists, particularly those in New England, may never accept the merits of Starbucks coffee, majority opinion argues that Starbucks offers higher-quality beverages and better customer experiences. Statistics show that Starbucks is outperforming its rival, which is evidence of the success of a simple and efficient global supply chain. In fact, Starbucks, which is already larger than Dunkin’ Donuts both domestically and abroad, plans to open more new retail spaces than its competitor over the next five years.
Therefore, one question remains for coffee drinkers and market analysts: Does America actually run on Dunkin’? Or is Starbucks’ coffee really the fuel running our caffeine-crazed country (and world)?
We love writing about all things related to the supply chain, including Starbucks’ supply chain. Need quality content written for your supply chain business? We’re a content agency focused exclusively on working with companies like yours. Let’s chat.
This article is part of a series of articles written by MBA students and graduates from the University of New Hampshire Peter T. Paul College of Business and Economics.
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by Elizabeth Hines | May 3, 2017 | Blog, Content Marketing, Logistics, Marketing, Social Media, Supply Chain
There’s never been a better time for supply chain and logistics businesses to implement a content marketing strategy — except for maybe yesterday.
Content marketing is a form of inbound marketing in which vendors publish digital content to attract customers who are searching for products and services like theirs. If done right, it is highly effective in growing brand awareness, generating and converting leads, and driving sales and repeat business.
Think content marketing isn’t for supply chain and logistics businesses? Guess again. Here are five reasons why companies in these industries should use content marketing.
5 reasons to use content marketing
1. Buyers use content to make purchasing decisions.
The B2B buying landscape has shifted dramatically in the last 10 years. Buyers no longer rely on sales reps to make purchasing decisions; they turn to the internet. Companies must shift to accommodate buyers at various levels of self-sufficiency in the purchasing process.
The reality is that 94% of B2B buyers use online research. That means they’re judging whether or not to buy from your business based on the kind of digital content you publish (or do not publish, as the case may be). Consider these stats:
- 95% of B2B buyers are willing to consider vendor-related content as trustworthy.
- 51% more B2B buyers rely on content to make purchasing decisions than they did last year.
- 47% of B2B buyers consume 3 to 5 pieces of content before engaging with a sales person.
2. Control the conversation in your favor.
Customers go online to discuss their buying experiences — both positive and negative. If a potential buyer googles your business’ name, what will they find?
Content marketing puts you in the driver’s seat of reputation control. If you publish thought-provoking blog posts about industry trends, you can earn a reputation as a thought leader in the space. If you curate the latest articles about relevant happenings, people will begin to view your social media accounts as a resource for industry news. Be professional, quirky, clever, ahead of your time, youthful, wise, funny, off-color — whatever your brand is, you can set that reputation by what you publish online.
3. Present yourself as a solution.
When prospects go online they are looking for information and for answers. Position yourself as an expert who fully understands their problems and how to solve them by publishing content that anticipates their pain points. Quickly and fully respond to customer queries on social media. Use content marketing as an opportunity to be the solution prospects are looking for, right when they need it most.
4. Content marketing is more effective than traditional marketing.
Companies in the supply chain and logistics space have a lot to gain by modernizing their marketing tactics. We see this every day with our clients. With the evolving B2B buying landscape, ads in industry publications no longer cut it as a “marketing strategy.”
Take two examples under consideration. How about TotalTrax, a warehousing technology company that grew new business by 30% with content marketing? Or 3PL Cerasis, who gained 98 customers from its content marketing efforts? Content marketing works, and that’s been proven time and again with logistics and supply chain businesses.
5. Your competitors are doing it.
Content marketing is already a widespread practice within the supply chain and logistics industries. If you’re not producing content to attract prospects and retain customers, you’re missing out.
This year, 75% of marketers are increasing their investments in content marketing. Why? Because it works. Successful content marketers experience drastically more site growth than their competitors. In fact, content marketing leaders experience 7.8 times more site traffic than their competitors.
In sum, content = customers. If you’re not using content marketing as part of your marketing program, you’re going to get left behind, if you’re not already.
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by Elizabeth Hines | Apr 27, 2017 | Blog, Content Marketing, Marketing, Social Media, Supply Chain
In April’s social media news, changes are coming down the pike for Google, LinkedIn, Facebook, and Instagram.
April has been an interesting month for social media news. Google, LinkedIn, Facebook, and Instagram all announced changes to their core products that will affect businesses using these platforms for social engagement and/or advertising.
Make sure you’re following our blog and/or social media pages to get our monthly updates on changes that may affect your social marketing program.
Google may be rolling out ad blocker for Chrome
Although its business model largely depends on advertising, Google is considering putting a stop to ads that are ruining users’ experiences. A potential ad-blocking feature on its Chrome browser would identify unacceptable ads based on standards set by the Coalition for Better Ads in March. Google could roll out this new feature in the next few weeks or choose not to move ahead with it at all — either way, the company is declining to comment.
LinkedIn introduces trending storylines
Storylines are now bringing user interests and the most important stories in their industries to the daily newsfeed. The algorithm includes several perspectives, such as “relevant influencers and news publishers to people in your network.” Each storyline also has a unique hashtag associated with it, so users can join in on the conversation and expand their networks based on common interests.
Facebook is moving closer to virtual reality
At the F8 developer conference, Facebook announced the release of Facebook 360 Capture SDK, a toolkit that makes it easier to capture and share virtual reality video. The ‘Book’s engineers are calling this new process “cube mapping,” which is more efficient and has better image quality than standard 360 video. “We look forward to seeing VR 360 selfies, experiences, e-sports, and more—all in 360,” said Facebook product developers in a mid-April blog post.
Instagram launches offline browsing
Instagram currently downloads images on the fly, querying parent company Facebook’s servers for new content when the app is launched. The updated app, however, will tap a cache instead. It will store any browsed images and will automatically update when internet becomes available. Users will also be able to write comments, like and save photos, and unfollow and follow anytime, as Instagram will queue offline actions to execute when next online.
Facebook Stories expands globally
Facebook Stories are short, user-generated picture and video collections that disappear within 24 hours. Users can add different filters and overlays to content using the in-app camera. A simultaneous messenger update, called Direct, allows users to send photos and videos that disappear after a short time to friends. This popular Snapchat-like format has proven very successful on Instagram, which now boasts more than 150 million Stories users across the globe.
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by Elizabeth Hines | Apr 26, 2017 | Blog, Logistics, Supply Chain, Talent
Investing in your top talent and playing an active role in developing their careers will motivate them to stay around.
Company loyalty is a thing of the past. In today’s day and age, everyone is looking for the next best thing, and that is true in the workplace as well. But this doesn’t mean that retention of top talent is hopeless.
Accenture conducted a cross-industry study and determined the top four reasons employees quit their jobs:
- Lack of recognition (43%)
- Internal politics (35%)
- Lack of empowerment (31%)
- Don’t like boss (31%)
Companies have work to do to create a positive workplace experience, where employees feel challenged and valued. So where do you begin? Retaining top talent can be challenging, but it is possible. Here are three tips for keeping your top talent around longer.
Treat them as individuals
This seems like a pretty basic rule. But if you think about it, top management often gets treated as an elite group. Often times these talented members of your company spend their careers trying to be innovative and cutting edge, so it’s important for them to feel like they are valued and unique. Roger L. Martin, former dean of the Rotman School of Management at the University of Toronto, offers a relevant anecdote:
A top consultant, one of the firm’s 15 or so global account managers, approached me to ask for paternity leave (a benefit that’s now fairly standard, but 20-odd years ago was rare). I readily replied, “Sure. You’re a GAM. At your level, you can do pretty much whatever you want.” He said “OK,” and walked off, looking sullen. I was taken aback: He had asked for something, and I had given it to him. … This consultant wanted to hear: “We care about you and what you need. If paternity leave is the thing that is particularly important to you, we support you 100%.”
Martin witnessed first-hand the effects of treating this manager as part of a class, instead of as an individual. Stepping back and realizing that top talent need to be treated as individuals can add to their feeling valued within your company.
Develop from within
As more money and talent flood into the supply chain, it will be important to avoid the Silicon Valley problem of poaching, or employees leaving for larger salaries elsewhere. Investing in current employees in a meaningful, attentive way could make all the difference.
Think about your rising stars’ futures and next steps within your company. They probably have a plan, and you should as well. Make sure those plans align, and be open to assisting their journey to meet their goals.
Ask specific questions about what it takes to create the environment that would help encourage your talent’s best performance. Ask what works, and also ask what doesn’t work. Be specific and ask what causes your talent anxiety or stress. Investment is a big part of development. It helps talent feel like part of a bigger picture. If you invest in them, they will invest in you.
Encourage flexibility
Gone are the days of strict office hours, and in its place are flexibility and mobility for the workplace.
When companies allow their employees some flexibility, they become happier and more productive. With technology at our fingertips, and all the options that provides, employees expect to work from a location of their choosing, whether it be home, a library, or a coffee shop. Millennials rank this kind of flexibility highly among factors that make companies appealing places to work.
Don’t sit back and assume your employees are willing to be passive about their careers. See your employees as assets. Have a strategy. Be part of their team, and make them part of yours. See their talent and invest in them. Otherwise they’ll find another supply chain company that will.
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by Elizabeth Hines | Apr 24, 2017 | Blog, Content Marketing, Marketing, Social Media, Supply Chain
Your company should consider your ideal customer, your competitors, and your content before choosing which social media channels to use.
Facebook! Twitter! LinkedIn! YouTube! The number of social media channels is astounding – and growing daily. Knowing which your business should be on can be daunting. Here is what to consider when determining which social media platforms you should be using for your supply chain company.
Your ideal customer
Understanding your target audience and which social media platforms they’re using is invaluable information. If you want to reach potential and current customers, you need to be where they are. You need to make it easy for them to find you and engage with your business.
An easy way to obtain this information is simply to ask. A quick email asking current customers where they spend their time online can give you insight into which platforms to use. You can use free tools like SurveyMonkey or Google Forms to create polls that dig a little deeper, too.
Your competition
If your competitors are already active on social media, start by finding out where. If these platforms align with your ideal customer, don’t be afraid to kick start your social media presence alongside them.
Social benchmarking tools like RivalIQ allow you to see where your competitors are active and where they are getting the most engagement. Once you launch a social channel, you can compare your performance to theirs and see where you’re gaining traction and where you can improve.
On the other hand, if your research has shown that your potential customers are using a social media channel that your competitors are not using, don’t assume your competitors know something you don’t. Jumping into any social media channel can be intimidating, but don’t be afraid to branch into new platforms, especially if your research is pointing in that direction.
Your content
It seems almost too simple to articulate, but what do you have to say to potential customers? And how do you plan on saying it? If you are going to invest the time and resources into a social media presence, make sure you’re providing consistent, relevant content in engaging ways.
For example, do you love creating videos and find it’s an easy way for you to demonstrate your company and its value? You should dive into YouTube. Do you have a great workplace culture and hold lots of company events? Try Instagram. Love writing longer thought-leadership pieces about the industry? LinkedIn is probably for you.
The supply chain is all about finding the most effective way to deliver information. Social media is an undeniable channel for distributing this information in a timely manner. Understanding why you’re venturing into social media — and how it can work for your business — can create endless opportunities for your company.
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