by Fronetics | Jan 6, 2016 | Blog, Logistics, Strategy, Supply Chain, Transportation & Trucking
Fronetics Strategic Advisors is a leading management consulting firm focused on the logistics and supply chain industries. Our industry and functional expertise enables us to fully support and guide our clients as they address critical business issues, take advantages of opportunities, and grow their company. Our clients rely on us to create and execute marketing strategies, capture value from their customer and channel strategies, identify opportunities for increased revenue, create and execute new organizational models, and lead transformational organizational change.
Supply chain talent is a salient issue. At Fronetics we not only provide thought leadership on this subject, we also engage with future talent. Each year Fronetics collaborates with MBA students from the University of New Hampshire Peter T. Paul College of Business and Economics. I am excited that several of the most-read logistics and supply chain articles were written by these students.
Here are the 10 most read logistics and supply chain articles of 2015:
It’s difficult to accurately predict what Amazon will be doing fifteen years from now, but whatever they are doing, it will mostly likely continue to shape consumer expectations and impact the surrounding business and consumer markets in ways we had not thought of beforehand. Read the full article.
There is a common misconception that the majority of goods we purchase arrive via plane, or are transported via road. The reality is that 90% of everything we buy comes by ship — and it’s not likely that this number is going to decrease any time soon. Read the full article.
While many of us may be familiar with recent advancements in home automation, like the Nest thermostat, the real impacts of the Internet of Things (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 IoT will have a profound impact on how future supply chains will operate. Read the full article.
Cathy Morris, senior vice president and chief strategy officer for Arrow Electronics, Inc., talks women in the supply chain and offers up career advice. Read the full article.
Regularly tracking your relationship with your suppliers and their performance toward your expectations is critical to ensure the success of your business. One mechanism for tracking this is the supplier scorecard — in essence, a report card for your supplier. Supplier scorecards, when used effectively, can help maintain a healthy supply chain and will benefit both parties. If not used effectively, supplier scorecards can damage the supplier relationship and hurt both businesses. Read the full article.
The pet food industry is a market that boasts $21.57 billion dollars in sales in the United States (2013). According to Trade Group, with 95.6 million cats and 83.3 million dogs owned in the United States, it is no wonder that there is such a large market for the food that the self-proclaimed “pet parents” feed them. However, it isn’t all good news for aspiring entrants, as they must first understand the supply chain that dictates this growing industry. Read the full article.
Uber, the on-demand driver-for-hire mobile service, has come to stand for disruption. The company has not only transformed the taxi industry, it has changed everything. Uber, Aaron Levie notes, is a “lesson in building for how the world *should* work instead of optimizing for how the world *does* work.” NY-based start-up Transfix is doing just this. With the launch of the company’s new app, Transfix is poised to disrupt the trucking industry. Read the full article.
“Man or woman, the Supply Chain of the future depends upon the perfect mix of talent. And, as we know, Supply Chain talent is experiencing a shortage.” Read the full article.
Looking at the manufacturing, supply chain, logistics, transportation, distribution and freight industries, there are a few companies that have emerged as leaders — companies that exemplify the business value of creating and executing digital, social media, and content marketing strategies. Cerasis, a freight logistics company, is one of them. Read the full article.
by Fronetics | Oct 5, 2015 | Blog, Logistics, Strategy, Supply Chain, Transportation & Trucking
On October 1st the 735-foot cargo ship El Faro issued a distress call, and then vanished in the eye of Hurricane Joaquin. The search for the ship, captain, and crew has thrust the shipping industry into the spotlight.
There is a common misconception that the majority of goods we purchase arrive via plane, or are transported via road. The reality is that 90% of everything we buy comes by ship – and it’s not likely that this number is going to decrease any time soon.
The advent of the megaship
In the last 50 years cargo-carrying capacity has increased by 1,200%. In the past 10 years cargo-carrying capacity has increased by 80%. Today’s bohemyths including the CSCL Globe, MSC Oscar, and MSC Zoe will soon be surpassed by ships that can carry more, and more. In June the major Chinese shipping group Cosco announced that it has ordered nine 20,000-TEU capacity ships, with an option for four additional identical vessels.
Larger ships are about efficiency and about narrowing the cost advantage. Not only do larger ships carry more containers, they also consume as little as 50% of the fuel per container moved as older ships, while also more than halving insurance and staffing costs.
The race for efficiency and cost advantage is competitive. The Globe held the record for largest carrying capacity for just 53 days, and then had to relinquish the title to The Oscar. The Oscar has a capacity of 19,224 TEUs, 124 more TEUs than The Globe.
Congestion
The increase in the size and volume of ships is putting pressure on ports. At least 7 out of the 10 busiest US ports by container volume are grappling with regular congestion. Early this year, congestion crippled West Coast ports grinding activities to a halt. Although operations have resumed, it won’t be smooth sailing going forward. It is projected that congestion will only get worse as ships continue to grow in size and volume. A 2013 Department of Transportation study projects that between 2010 and 2040 the volume of the US’s container trade with Northeast Asia—which accounts for the majority of the US’s overall container trade— will more than triple.
In a recent Wall Street Journal article, Frank Layo, retail strategist at consulting firm Kurt Salmon, points to the economic costs of the congestion. He forecasts that the cumulative costs of shipping delays could reach $7 billion this year and climb as high as $37 billion in 2016. Additionally, he expects some retailers to divert shipments from Asia to more-expensive routes to avoid congested West Coast ports. This could impact consumers in the form of stock-outs and price increases.
Loss
According to a recent survey by the World Shipping Council, an average of 1,679 containers are lost overboard every year. The loss of these containers cause significant economic losses for carriers and their customers, have the potential for harming the environment and marine life, and are a hazard to those on the water (floating containers pose an off-shore danger).
The majority of time ships don’t lose their entire load overboard. Rather, a number of containers are lost. But what happens when an entire load is lost, or even worse, when an entire ship is lost?
AGCS experts believe that the industry should prepare for a loss of $1 billon or more in the future. Captain Rahul Khanna, Global Head of Marine Risk Consulting, AGCS, believes that a $2 billion container ship loss scenario is not out of the realm of possibility.
El Faro is not a megaship. Nonetheless, El Faro and her crew of 33 play a significant role in the global economy. As Hurricane Joaquin moves out of the Bahamas we can hope that El Faro, her captain, crew, and cargo will be found – safe.
by Fronetics | Aug 6, 2015 | Blog, Logistics, Marketing, Social Media, Supply Chain, Transportation & Trucking
Transportation and logistics is a field that is booming. The business is a money-maker and a cornerstone of day-to-day functioning. It’s one that has been present for centuries. We are well past the Age of Discovery, but transportation and logistics companies carry on the torch of moving products that people need and desire around the world. One might wonder if the sultriness of the Silk Road and the Spice Trade has lost its allure and sexiness, but that needn’t be the case. Social media has brought about a fantastic opportunity for transportation and logistics companies to share their successes, display their offerings, create community, and convert leads.
Where to Start
First, think about it. Many transportation and logistics companies think about social media and how to use it, but cite a lack of time as a reason they haven’t explored the various platforms. Thinking about how social media can work for your logistics or transportation company is the first stop towards progress.
Second, learn about it. Understanding individual usage of social media versus B2B usage of social media is important. Do your consumers use LinkedIn, Facebook, Twitter? Where are your competitors finding success, and what platforms are they missing? Once you figure these things out the impulse will be to get started. Post away! Tweet away! Blog away! However, creating a Facebook page or a Twitter account will not draw in your community of employees or existing clients, and will not attract potential customers or clients. Having an account is great thing, but it’s not the most important thing. Knowing how to express your brand, what content to curate and create, and how frequently to share content is critical to social media success.
Learning is a process and takes time. Set up also takes time. Hiring an outside agency to do this work can both save you time, and will ultimately reap ROI. Marketing strategy companies have been doing this work already, and understand how to highlight your company. They know the market, and once they get to know you a bit better, you can work together to figure out how to express your brand through the platform of social media.
What to Highlight
Once you figure out who to focus on and how to reach that community, creating and curating your unique content is key. What is most informative and helpful to your clients? What will feel meaningful to them? What will catch and hold their attention? How do you want people to perceive you, your employees, and your products/services? Some studies have shown that conversion rates from social media can be 100% more effective than from outbound marketing, so getting this right could greatly benefit your company.
The joy of social media is its speed and its ability to humanize a company. A company’s Twitter feed is not like its white papers. Social media is known for personalizing things, so let people know the more human side of your business. Who are the drivers? Who are the employees? What are the success stories? Celebrate your community, partners, and clients. This is a place to engage with other businesses – to educate them and learn from them.
One perfect example of a logistics company that thrives in this arena is UPS. The logistics company has found success with unique, fun, interesting, frequent posts, tweets, and blogs. They also highlight their “heroes” by telling stories, often through video, of their heroic drivers who have been known to save lives. They show the human side of delivery. They connect. And when it comes to social media, it’s all about connection.
Two other examples of companies that excel in this area are Sourcemap and Transfix. Both companies have leveraged social media as a platform for growth. Sourcemap’s founder and CEO Leonardo Bonanni credits social media for the success for his business: “Sourcemap wouldn’t be here without social media.” For Transfix, social media and digital technologies enables the company to make the trucking industry more efficient and user-friendly.
Fronetics Strategic Advisors is a leading management consulting firm. Our firm works with companies to identify and execute strategies for growth and value creation.
When it comes to marketing we work with our clients to create and execute strategies that drive success and elevate their brand position within the industry. Unlike other firms, we align marketing programs with business objectives and, through a data driven approach, are able to deliver results with a targeted ROI. Our team is comprised of strategists, marketing professionals, writers, designers, and experts in social media. Together we leverage our experience to increase brand awareness, position our clients as thought leaders, drive meaningful engagement with prospects and customers, and help businesses grow.
by Fronetics | Jun 23, 2015 | Blog, Logistics, Marketing, Social Media, Strategy, Supply Chain, Transportation & Trucking
Drew McElroy, founder of the start-up Transfix, is no newcomer to the trucking industry. McElroy was born into the business; his parents owned and operated the freight brokerage Andrew’s Express, affectionately naming it after McElroy.
“I remember listening to my father structure deals. As a kid, it was all utterly confusing to me,” recalls McElroy. “I finally started to get my head around the economics of the business in my teens. From that point on, I became increasingly aware of the industry’s inefficiencies.”
Not long after McElroy graduated college, his father passed away unexpectedly. McElroy, already working for the family business, took over as president. In that time, McElroy successfully increased annual revenues from $4 million to $12 million. While impressive, McElroy still struggled with how the industry traditionally operated. “It was clear that our family business wouldn’t be the platform for world domination,” laughs McElroy. “But I believed that, fundamentally, there was a better way to get things done.”
Determined to build a new foundation based on his belief in “a better way,” McElroy left the family business and set out for San Francisco. He would spend the next year and a half couch surfing and networking in order to gain the expert business and tech insight he needed to plan what would become Transfix. “I knew logistics and I knew trucking, but I knew nothing about venture capital, or how to move from idea to implementation,” says McElroy. “I decided I should try – and try big. If I fail, I fail, but at least I tried.”
In 2013, McElroy was introduced to Jonathan Salama. Salama was among Gilt’s early engineers, and was pivotal in building the flash sale giant’s infrastructure and inventory software. McElroy knew Salama would be key in taking his idea to the next level; Transfix had claimed its co-founders, and its recipe for industry-leading success.
Transfix is a fully automated marketplace that is all about getting things from one place to another. What sets Transfix apart is the company’s platform and approach is vastly more efficient than the traditional approach, and it is much more user-friendly.
Transfix takes the industry’s inefficiencies head on. Transfix is a digital on-demand freight marketplace. It provides industry-leading mobile technologies and location-based jobs offers for independent over-the-road truck drivers, as well as cloud-based management platforms for small carriers and shippers
Here’s how it works:
A customer logs into the Transfix TMS and enters a new shipment. The platform automatically identifies the best driver depending on location, size of truck, etc., sending a load offer alert to the driver or company dispatcher by mobile SMS message or email. The load is accepted by electronic signature, at which point the customer receives automatic notification and the driver becomes fully visible within the customer’s real-time dashboard. Load management from that point on becomes “as simple as Tinder.” Transfix geofences the driver with a five mile radius, immediately alerting Transfix of any issues. Once the load is delivered, the driver is paid within 24 to 48 hours, significantly faster than the industry standard.
Transfix just launched an app (iOS and Android) that is focused on truck drivers. Transfix’s app integrates with the company’s digital marketplace and is driver-centric. The app gives drivers the ability to manage loads, map their itinerary, and manage payments. The app also provides truck drivers with trip planning essentials including the location of showers, ATMs, weigh stations, fuel prices, and weather. The app is free and can be used by anyone with a valid motor carrier number – the driver does not have to associated with Transfix. “Developing this app and making it freely available to all drivers is just the right thing to do,” says McElroy. “Without drivers, this industry would not exist. We need to do right by drivers by making their lives easier.”
Things are moving fast for McElroy and Transfix. Within 15 minutes of updating his LinkedIn profile, McElroy got a call from a logistics Manager at Barnes & Noble and, before he hung up, had freight loads to manage. Fast forward a few months – with Transfix, Barnes & Noble has realized improvements in their processes and has seen their deadhead runs (times driving without cargo) cut by at least 50%.
Transfix has raised close to $2.5 million to date and is already generating several thousand a month in revenue.
McElroy and Transfix are poised for world domination – mind you, a win-win benevolent hegemony – a la Uber.
Fronetics Strategic Advisors is a leading management consulting firm. Our firm works with companies to identify and execute strategies for growth and value creation.
Whether it is a wholesale food distributor seeking guidance on how to define and execute corporate strategy; a telematics firm needing high quality content on a consistent basis; a real estate firm looking for a marketing partner; or a supply chain firm in need of interim management, our clients rely on Fronetics to help them navigate through critical junctures, meet their toughest challenges, and take advantage of opportunities. We deliver high-impact results.
We advise and work with companies on their most critical issues and opportunities: strategy, marketing, organization, talent acquisition, performance management, and M&A support.
We have deep expertise and a proven track record in a broad range of industries including: supply chain, real estate, software, and logistics.
![The Santa Supply Chain [Infographic]](https://www.fronetics.com/wp-content/uploads/2024/10/Santa-Supply-Chain-Infographic-799x675.png)
by Fronetics | Dec 2, 2014 | Blog, Logistics, Strategy, Supply Chain, Transportation & Trucking
“Gartner likes to publish the Top 25 Supply Chains every year. Unfortunately, there’s one supply chain the esteemed analyst firm continues to overlook. And it just so happens to be the greatest supply chain success story of all time. I’m talking about The Santa Claus Supply Chain.”
Richard Howell’s 2011 article proposing that Santa’s Supply Chain is superior to those on Gartner’s list leaves little room for argument. Let’s be honest, is there another supply chain that can (using just one sleigh) deliver orders to 822 homes per second and has a:
- Committed workforce with a 0% turnover rate (Dasher, Dancer, Prancer, Vixen, Comet, Cupid, Donner, and Blitzen are loyal and long-serving);
- 100% order rating; and
- 100% on-time delivery?
I think not.
Check out Howell’s article for more interesting facts, and our Santa Supply Chain infographic for holiday fun.
by Fronetics | Dec 2, 2014 | Blog, Logistics, Strategy, Supply Chain, Transportation & Trucking
“Gartner likes to publish the Top 25 Supply Chains every year. Unfortunately, there’s one supply chain the esteemed analyst firm continues to overlook. And it just so happens to be the greatest supply chain success story of all time. I’m talking about The Santa Claus Supply Chain.”
Richard Howell’s 2011 article proposing that Santa’s Supply Chain is superior to those on Gartner’s list leaves little room for argument. Let’s be honest, is there another supply chain that can (using just one sleigh) deliver orders to 822 homes per second and has a:
- Committed workforce with a 0% turnover rate (Dasher, Dancer, Prancer, Vixen, Comet, Cupid, Donner, and Blitzen are loyal and long-serving);
- 100% order rating; and
- 100% on-time delivery?
I think not.
Check out Howell’s article for more interesting facts, and our Santa Supply Chain infographic for holiday fun.
