Within four months, the digital transformation had already reached most supply chain organizations. Per GT Nexus, 75% of executives surveyed recognized the digital supply chain as an important factor for the next five years. Meanwhile, 70% have also started processes to implement digital supply chain technologies throughout their companies.
Unfortunately, many supply chain entities continue to hope for a better tomorrow. In other words, the digital supply chain transformation has only been rated as very satisfying for 5% of respondents. In addition, just less than half (48%) of respondents report continued use of traditional technologies exclusively, which include the following:
Fax machines
Manual order entry and review
Land-line phones, not voice over internet protocol (VoIP), which reduces overall costs and downtime
Email, although beneficial, is susceptible to internet connectivity issues, security breaches and other problems
Chaotic picking protocols
This infographic, created by GT Nexus, also shows other ways the digital supply chain evolved in 2016.
Essentially, the digital supply chain is essential to gaining and maintaining competitive advantage. Digital technologies, reports Richard Howells of Forbes, including Big Data, analytics, the Internet of Things, social media, and point-of-sale reporting, enable business to know more about consumer needs and wants than ever before. Consequently, they can more accurately respond to changes in product demand across large distances and within infinitesimally small time frames.
Supply chain execs retained fundamentals throughout change.
Innovation is the driving force behind change and improvement in the modern world. Supply chains must evolve to meet an increasing number of omnichannel sales, and technologies must be integrated within existing systems to reach maximum efficiency and productive value.
As explained by Grant Marshbank of VSC Solutions, “The rate of change is not going to slow down. Technology will only delivery […] if it’s implemented with strategy and operations that adhere to best practices.”
Marshbank’s words highlighted the need to focus on fundamental concepts while responding to changes and improvements in the supply chain. For example, an optimized supply chain is good, but it opens more opportunities for errors. Simply putting all an organization’s proverbial eggs into one basket may be risky if appropriate auditing and review measures are not undertaken to ensure continued compliance and accuracy in all orders.
Change is a necessity for businesses, including the supply chain, to grow and expand. Yet many destructive forces can severely undermine a company’s progress. Bad weather, poor hiring practices or inefficient maintenance of consumers’ financial data can decimate a company. However, the response to hindrances in 2016 continued to showcase the importance of fundamental concepts, asserts Ryder, which include the following:
Continually seeking the fastest, most cost-effective means of transporting products to consumers, including enhanced delivery optins.
Expansion of global footprint while adhering to local, state, federal and international requirements
Keeping companies accountable and focused on giving back to their domestic partners through reshoring or nearshoring
Working with more outside agencies, also highlighted by Samantha Carr of Business 2 Community, including crowd-sourced logistics, warehouse optimization and outsourcing, and greater use of cloud-computing
Augmented reality found its place among consumers.
Augmented reality sounded amazing and far-fetched early in 2016, but the year has shown it to be one of the most successful product in existence. There tends to be more acceptance of technologies in the workplace once consumers can identify how they work.
For example, new hires are likely to pick up tablet-based systems more easily since they have been using them recreationally for some time. Essentially, the virtual-reality (VR), which is the precursor to augmented reality, hype of the 2016 Christmas shopping season is making more people excited about this new way to “see the world.”
While the VR hype may seem like it only emerged for Christmas, think about one of the hottest games of 2016, Pokémon Go! This app was built on augmented reality, combining the digital and physical worlds into one interactive environment. This technology, reports JOC.com, will be a key to practically eliminate extensive training courses and repair time requirements throughout the supply chain.
Ultimately, it translates into greater use of augmented reality in supply chains, which is growing by 100% annually, reports Barcoding Incorporated.
What’s next?
Clearly, technology dominated the conversation for 2016, but there are also changes in how supply chains operate that require a more in-depth discussion as well. In the next post of this series, we discuss the impact of artificial intelligence, agile processes and procurement expansion on the supply chain of 2016.
Supply chain leaders must be ready to implement big data in order to continuously improve.
This guest post comes to us from Adam Robinson, director of marketing for Cerasis, a top freight logistics company and truckload freight broker.
Supply chain leaders are enthralled with the idea of using big data, but they tend to fail to understand how to disseminate big data in their organization properly. True, they may know how to roll out big data in a single warehouse, or they may have heard their competitors used branded systems for implementing this new technology. However, the fundamental problem remains.
Supply chain leaders must be ready to implement big data and leverage it to improve their companies without any delay or inhibition. This may sound impossible and frightening, but they must only understand how big data always goes back to these two, simple principles of measurement: review and action.
Ask traditional questions, and let big data provide answers.
The most common complaint of newer companies using big data analytics capabilities tends to revolve around traditional questions of business strategy. Consider the following elements explains John Richardson of Inbound Logistics, that impact business strategy.
Increasing order efficiency.
Demand forecasts.
The quantity of each product.
Inventory location and management.
Raw material suppliers and logistics.
Transportation modes used in procurement and shipping.
Distribution of goods prior to purchase.
Demand fluctuations.
Each of these elements more traditionally handles by outsourcing analysis of processes to supply chain consultant. This is actually where the concept of third-party logistics providers involved. However, rapid growth and diversification of products are making shippers, manufacturers, and suppliers rethink their business strategy. In other words, consumers can get practically anything they want at a moment’s notice, and more consumers are expressing a willingness to wait for a product a few days if free shipping is a possibility. So, this need to adapt operations reflects the common concerns of traditional customers and supply chain entities. However, there is a distinction.
Previously, these entities only needed to focus on their local demographic for ensuring continued stability. But the rise of the internet has given consumers and everyone else the ability to access any product from any seller and any place on the globe. This is a traditional business strategy, and it is essential that the modern supply chain is willing to use big data all operations to create a more positive result than consumers, stakeholders or government organization ever needed before.
Performance measurement and management.
As explained in a previous blog post, continuous improvement in an organization can be achieved through the use of performance measurement tools via big data. Mostly, this reflects the skills and actual working capacity of employees. Since employees represent one of the largest expenses an organization may face.
Having the best staff members available can mean the difference between success or failure in a company. Furthermore, big data can help employees understand what they do and do not need to do in order to improve their performance scores. This will also help to prevent oversight from managers and keep all employees on track to complete their responsibilities as assigned.
Performance measurement does not have to be limited to the performance of employees either. It can be expanded to identify poorly performing machines, or it can be used to isolate inefficiencies in collaboration with suppliers or vendors. Ultimately, performance measurement is a metaphor for tracking any metric in the course of the supply chain, but it’s key to being effective is found in transferring the insights gleaned from big data into actionable results.
For example the operational efficiency of a given loading is directly related to how quickly pickers are able to fulfill orders and move them onto the dock. Obviously trucks can only be loaded so fast; what is the number of pickers appropriate for the current workload, or which route through the factory is adding an extra 20 minutes to each worker’s duties?
These questions illustrate that the most insignificant details can be driving forces of inefficiency in the supply chain. But they represent opportunities for continuous improvement. Changes in the design or layout of the warehouse or alterations to the truck schedule may require changing the duties of a certain worker at a moment’s notice. Essentially, the worker must be able to access continuous data measurements on all factors affecting his or her responsibilities.
Supply chain leaders need to focus on continuous improvement.
Continuous improvement is a complex notion. It is based on hundreds, if not hundreds of thousands, of individual metrics from various collection points and analyzed in real time. All of this reflects a very large volume of data. It can be digested and broken down into usable bits, much like the biological processes of the stomach making it essential to surviving the coming season.
This comparison is much more than a metaphor; it is the real issue being faced by supply chain entities and their leaders. Supply chain leaders must use big data to gather insight and create quantifiable measures of performance and functionality across their enterprises on a recurring, frequent and immediate basis.
The shortage of drivers paired with the continued growth of the trucking industry paves the way for driverless trucks.
This guest post comes to us from Rachel Everly, a writer for Cerasis, a top freight logistics company and truckload freight broker.
The trucking industry has been serving America for many decades, and even today it is the main method by which freight is transferred all over the country. Anyone who says the trucking industry is facing a decline or a reduced demand is way off the numbers. More large trucks are coming on U.S. roads, traveling more miles, and transporting more good than ever before.
We have seen more than 3% increases in the number of trucks, which translates to almost 11 million trucks. Also, trucks are still transporting 73% of almost all cargo weight moved in one year. With all these impressive numbers, surprisingly there is a shortage of drivers. That spells both trouble and opportunity for this industry.
Where is there a shortage of drivers?
The U.S trucking industry is facing a severe driver shortage. One estimate shows that around 48,000 drivers are required to move about 70% of freight.
To improve safety, in December 2015, the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) announced that driver hours will be recorded via Electronic Logging Devices by 2017. This becomes mandatory by December 18, 2017. This was introduced because the existing systems of time-logging are purposely made very complicated, thus not allowing one to check how many hours is a driver on the road.
This is being introduced to ensure that driver safety is not compromised, keeping fatigued drivers off the road. According to calculations, this will save 26 lives a year and prevent 562 injuries every year. Not just this, the ELD will save companies the hassle of paperwork, eventually leading the trucking industry to save somewhere around $1 billion due to reduced paperwork and time-savings.
However, this means reduced hours per driver, thus increasing the need for more drivers. Small trucking companies will be hit the hardest, but overall the industry will be in a better position thanks to this rule. It is estimated that this new rule would cost the industry $1.8 billion, but cost savings from reduced accidents and paperwork amount in excess of $3 billion.
The way to driverless trucks
Humans are amazing creatures, but we are prone to human errors. Human errors account for the majority of the road accidents. Plus with the new rule in, companies will need more drivers, adding to costs. Uber has been actively working on getting driverless trucks on the roads, with a project already started in Singapore, and now has turned its eyes on the trucking industry.
Uber has recently acquired the start-up Otto. Otto has made great inroads into driverless trucks. Otto currently has 6 working self-driving trucks, with plans to expand to 15. This year Otto is continuously running tests; trucks are hauling random items from the company’s garage to test how the vehicles respond to hauling weight.
The company is confident that soon they will be moving all kinds of goods for shippers. They have already started forging relationships with big names in the trucking industry. The self-driving trucks have shown that they can easily operate on highways, maneuvering off the open interstate is still a work in progress.
The following infographic outlines some of the benefits of driverless trucks:
These four supply chain companies constantly post fresh, quality content to their social media accounts.
When it excels at social media, a company’s opportunity for growth is as vast as the web itself. Today, even small businesses can compete shoulder to shoulder with their biggest competitors if leveraging social media properly.
When you think of social media masters, you may not think of companies in the supply chain industry. But there are a few excellent examples, and much can be learned from what they do. Here are four supply chain companies that excel at social media and the reasons why they stand out above the crowd:
1) Cerasis
Cerasis, a top freight logistics company and truckload freight broker, excels at social media because their content is fresh, posted daily, and of high quality. Simply put, they create engaging, informative content and are consistently active across all of the major social networks.
2) Kinaxis
Kinaxis, a global company offering advanced supply chain management systems to customers in a variety of discrete manufacturing industries, offers in-depth blog posts and is consistently active in social media channels such as Twitter, Google+, and LinkedIn.
3) Transplace
Transplace, a provider of transportation management services, posts informative articles and incites topics of conversation on Twitter several times per day. The company is active across all social media platforms, including their own YouTube channel.
4) UPS Longitudes
Longitudes is a blog with insights on the trends reshaping the global economy by United Parcel Service, a global leader in shipping. The blog also engages true thought leaders on topics ranging from trade to transportation and ecommerce to emerging markets. Posts are consistently new, innovative, and informative. Longitudes also has its own social media accounts, separate from UPS’s primary accounts, which distribute the blog’s content and engage in related discussions.
Why do these four supply chain companies excel at social media? Here are three commonalities that help these businesses rise above the rest:
Consistent daily posts and content
Having consistent, reliable, fresh social media posts is essential. The more active you are, the greater your outreach to potential new customers.
Think of it this way: search engines pick up on social media activities — like when someone shares content from your website on Twitter or Facebook, for example. Search engines use this to weigh the relevancy and validity of your website and your company. So, fresh daily or weekly content gives people a chance to read and share every time you publish a blog post, ebook, buying guide, case study, testimonial, and other interesting content to your social media accounts. Your marketing efforts reap the benefits of better search engine rankings as a result.
Engaging readers
You want readers to connect and engage with your social media posts. Every time they leave a comment or share or like a post, your social media presence — and your digital footprint — grows.
Quality content
Posting anything just for the sake of posting is not a good social media strategy. Content that is boring and basic will not help your business grow. Content needs to capture the interest of readers and engage them to read, share, and follow your business. Posts should be timely and relevant. This is what builds your following and your brand and generates new customers.
With social media you can find new customers and fans, connect with existing customers who can help spread the word about how great your product or service is, and drive more traffic to your website, which creates new avenues into the digital realm of marketing, company branding, and lead generation. The most successful companies today work daily to improve their social media content and reap the benefits of consistent, quality content marketing.
Cerasis is a top North American third party logistics company offering logistics solutions with a strong focus on LTL freight management. In 2012 the company decided to move from a traditional approach to marketing (ads in print publications and a heavy reliance on referrals) to a digital strategy – inbound marketing.
Within 25 months:
Visits to the Cerasis website increased by 1,141%;
Visits to the company blog increased from zero to 46,404;
Traffic driven by social media increased by 376,150%;
Organic traffic increased by 4,066%.
Moreover, Cerasis gained 715 leads. Fourteen percent of these leads converted to customers. The 98 new customers Cerasis gained through their inbound marketing efforts generated a 14% increase in revenue.
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Cerasis