by Fronetics | Aug 12, 2014 | Blog, Content Marketing, Marketing, Social Media, Supply Chain
Connectivity, mobility and accessibility are game changers for business. Companies that recognize this and adapt accordingly will succeed, companies that don’t will not.
Unnovation
Olaf Swantee, CEO of EE, calls this refusal to innovate “unnovation” and defines it as the following:
If unnovation ever made it into the Oxford English Dictionary, I believe the description would be something along the lines of “unnovation (noun) … the refusal to identify, create, embrace or adopt new ideas, leading to the unnecessary and un-timely end to a business, which is ultimately overtaken by external progress.
What are companies who have fallen prey to unnovation? Yell (Google), Borders (Amazon), and Blockbuster Video (Netflix) are just three examples.
Companies within the supply chain, and the supply chain industry in general, are at risk of falling prey to unnovation despite being in a prime position to innovate.
Unnovation and the supply chain
KPMG’s 2013 Global Manufacturing Outlook reported that the US manufacturing sector “seems primed for an era of ‘hyper-innovation,’ in which companies develop not only new products, but also entirely new ways to build them.” Unfortunately, companies within the manufacturing sector are not primed for innovation. KPMG found that 44 percent of survey respondents reported that they still use “old” technologies such as email, fax, and “snail” mail to manage their supply chains.
Similarly, the supply chain industry has been slow to participate in social media and to invest in creating a strong online presence. The primary reason: a lack of understanding of the business case or value.
Participating in social media and investing in creating a strong online presence are fundamentally different from the traditional strategies which companies within the supply chain industry have employed to attract new customers, foster relationships with current customers, communicate with partners, and grow their bottom line. Because of the stark contrast between “old” and “new,” companies do not recognize how these strategies can positively impact their bottom line and therefore decide to steer clear – they feel engaging is too risky. The reality is that not participating is risky; not participating is unnovation.
These companies embrace change
Keychain Logistics
Companies that choose to unnovate will be eclipsed by companies who embrace the world of mobility, connectivity and accessibility. Keychain Logistics is one company that has decided to embrace change.
Bryan Beshore, Keychain’s founder, recognized the changes taking place and decided not just to embrace them, but to also capitalize on them. Keychain leveraged the ideas of mobility, connectivity and accessibility and created a new way for the freight transportation industry to conduct business. Keychain is a marketplace that connects drivers directly with shippers – and is available via mobile app.
Keychain has also become an active participant on social media. This participation has enabled the company to shape their offering with a solid understanding of what people want from a transportation provider. Furthermore, Beshore notes that social media has helped grow their business: “From phone calls to interviews, crowdfunded campaign partnerships, and beyond, social media has certainly helped us grow our business.”
Cerasis
Another company that has been successful – Cerasis. For 15 years the freight logistics company used traditional sales and marketing strategies. This strategy worked; however, the company recognized that if it were going to remain competitive and grow it needed to adapt. The company launched a digital, social media, and content marketing strategy. The strategy lead to an increase in website traffic of close to 670 percent, an increase in search visits by close to 2,190 percent and, most importantly, the company acquired 35 new customers – a significant number for the industry.
Swantee believes that if companies choose unnovation, “Ultimately, it could lead to disastrous consequences for their businesses, their staff and their future.” I agree. If a company wants to remain relevant and competitive, and if a company wants to grow – it needs to recognize that connectivity, mobility and accessibility are game changers for business.
by Fronetics | Aug 12, 2014 | Blog, Content Marketing, Marketing, Social Media, Supply Chain
Connectivity, mobility and accessibility are game changers for business. Companies that recognize this and adapt accordingly will succeed, companies that don’t will not.
Unnovation
Olaf Swantee, CEO of EE, calls this refusal to innovate “unnovation” and defines it as the following:
If unnovation ever made it into the Oxford English Dictionary, I believe the description would be something along the lines of “unnovation (noun) … the refusal to identify, create, embrace or adopt new ideas, leading to the unnecessary and un-timely end to a business, which is ultimately overtaken by external progress.
What are companies who have fallen prey to unnovation? Yell (Google), Borders (Amazon), and Blockbuster Video (Netflix) are just three examples.
Companies within the supply chain, and the supply chain industry in general, are at risk of falling prey to unnovation despite being in a prime position to innovate.
Unnovation and the supply chain
KPMG’s 2013 Global Manufacturing Outlook reported that the US manufacturing sector “seems primed for an era of ‘hyper-innovation,’ in which companies develop not only new products, but also entirely new ways to build them.” Unfortunately, companies within the manufacturing sector are not primed for innovation. KPMG found that 44 percent of survey respondents reported that they still use “old” technologies such as email, fax, and “snail” mail to manage their supply chains.
Similarly, the supply chain industry has been slow to participate in social media and to invest in creating a strong online presence. The primary reason: a lack of understanding of the business case or value.
Participating in social media and investing in creating a strong online presence are fundamentally different from the traditional strategies which companies within the supply chain industry have employed to attract new customers, foster relationships with current customers, communicate with partners, and grow their bottom line. Because of the stark contrast between “old” and “new,” companies do not recognize how these strategies can positively impact their bottom line and therefore decide to steer clear – they feel engaging is too risky. The reality is that not participating is risky; not participating is unnovation.
These companies embrace change
Keychain Logistics
Companies that choose to unnovate will be eclipsed by companies who embrace the world of mobility, connectivity and accessibility. Keychain Logistics is one company that has decided to embrace change.
Bryan Beshore, Keychain’s founder, recognized the changes taking place and decided not just to embrace them, but to also capitalize on them. Keychain leveraged the ideas of mobility, connectivity and accessibility and created a new way for the freight transportation industry to conduct business. Keychain is a marketplace that connects drivers directly with shippers – and is available via mobile app.
Keychain has also become an active participant on social media. This participation has enabled the company to shape their offering with a solid understanding of what people want from a transportation provider. Furthermore, Beshore notes that social media has helped grow their business: “From phone calls to interviews, crowdfunded campaign partnerships, and beyond, social media has certainly helped us grow our business.”
Cerasis
Another company that has been successful – Cerasis. For 15 years the freight logistics company used traditional sales and marketing strategies. This strategy worked; however, the company recognized that if it were going to remain competitive and grow it needed to adapt. The company launched a digital, social media, and content marketing strategy. The strategy lead to an increase in website traffic of close to 670 percent, an increase in search visits by close to 2,190 percent and, most importantly, the company acquired 35 new customers – a significant number for the industry.
Swantee believes that if companies choose unnovation, “Ultimately, it could lead to disastrous consequences for their businesses, their staff and their future.” I agree. If a company wants to remain relevant and competitive, and if a company wants to grow – it needs to recognize that connectivity, mobility and accessibility are game changers for business.
by Fronetics | Jul 16, 2014 | Blog, Manufacturing & Distribution, Marketing, Social Media, Strategy, Supply Chain, Talent, Warehousing & Materials Handling
According to the 2013 CareerBuilder Candidate Behavior Study, job seekers looking for a position with the manufacturing, transportation, and warehousing industries are using the internet and social media not only to look for jobs, but also to research companies within these industries.
Candidates use the internet and social media throughout their job search
The CareerBuilder study looked at the behavior of candidates throughout the four phases of their job search (orientation, consideration, action, and engagement) and found that the internet and social media were used throughout each of the phases. (See Figure 1 for a definition of each of the four phases.)
Figure 1: The four phases of the the job search
Source: 2013 CareerBuilder Candidate Behavior Study
Job seekers in the orientation and consideration phases have not yet applied for a job at your company. Instead they are assessing the market, learning about an industry, and learning about companies within the industry. These stages are very much knowledge seeking phases for the candidate. Companies who are positioned right can attract great talent during these phases. However, companies who do not have a strong online presence and who do not participate in social media will not catch the eye of job seekers. Think of it as speed dating – you only have a short period of time to make an impression. According to the Neilson Norman Group you have 10 to 20 seconds to make that great impression. If you don’t make a great impression during those few seconds the user will navigate away from your website. Therefore you need to make sure that your website is visually engaging, easy to navigate, and contains quality and informative content.
When a candidate reaches the action stage they not only apply to jobs, they also conduct more in-depth research about a company, and form opinions based on the application experience. Candidates are not afraid to share their experience with the application process. Fifty percent of candidates share bad experiences with others and 64 percent share positive experiences.
In the engagement stage candidates interact with employers, interview for positions, and consider offers. Ninety-one percent of candidates believe employment brand plays a role in their decision whether or not to apply – therefore it is at this stage where your company’s online presence and participation in social media pays off.
How do candidates looking for a position within the manufacturing, transportation, and warehousing industries approach their job search? Let’s look.
Manufacturing industry
As shown in Figure 2, within the orientation stage, 85 percent of candidates looking for a job within the manufacturing industry turned to Google and 75 used a job board. In the consideration stage 83 percent used a company’s career site and 65 percent used social media to learn more about the company.
In the action stage 67 percent of candidates reported that they conducted additional research on an employer. In this stage only 14 percent of candidates reported employers in the manufacturing industry to be responsive.
Finally, looking at the final stage of the candidate’s journey, 67 percent reported that they felt the employer brand to be important.
Figure 2: The four phases of the job search; manufacturing industry
Source: 2013 CareerBuilder Candidate Behavior Study
Transportation and warehousing industries
Figure 3 shows that within the orientation stage 86 percent of candidates looking for a job within the transportation and warehousing industries turned to Google and 71 percent used a job board. In the consideration stage 87 percent used a company’s career site and 64 percent used social media to learn more about the company.
In the action stage 65 percent of candidates reported that they conducted additional research on an employer. In this stage only 15 percent of candidates reported employers to be responsive.
In the engagement phase, 75 percent of candidates reported that they felt the employer brand to be important.
Figure 3: The four phases of the job search; manufacturing industry
Source: 2013 CareerBuilder Candidate Behavior Study
In the end
Candidates looking for jobs within the manufacturing, transportation, and warehousing industries are using the internet and social media. They are researching these industries and researching companies within these industries. They are forming opinions, acting on these opinions, and sharing their opinions with others.
If the manufacturing, transportation, and warehousing industries want to attract great talent and retain their interest throughout a candidate’s job search they need to invest in their online presence and become active in social media.
by Fronetics | Jul 16, 2014 | Blog, Manufacturing & Distribution, Marketing, Social Media, Strategy, Supply Chain, Talent, Warehousing & Materials Handling
According to the 2013 CareerBuilder Candidate Behavior Study, job seekers looking for a position with the manufacturing, transportation, and warehousing industries are using the internet and social media not only to look for jobs, but also to research companies within these industries.
Candidates use the internet and social media throughout their job search
The CareerBuilder study looked at the behavior of candidates throughout the four phases of their job search (orientation, consideration, action, and engagement) and found that the internet and social media were used throughout each of the phases. (See Figure 1 for a definition of each of the four phases.)
Figure 1: The four phases of the the job search
Source: 2013 CareerBuilder Candidate Behavior Study
Job seekers in the orientation and consideration phases have not yet applied for a job at your company. Instead they are assessing the market, learning about an industry, and learning about companies within the industry. These stages are very much knowledge seeking phases for the candidate. Companies who are positioned right can attract great talent during these phases. However, companies who do not have a strong online presence and who do not participate in social media will not catch the eye of job seekers. Think of it as speed dating – you only have a short period of time to make an impression. According to the Neilson Norman Group you have 10 to 20 seconds to make that great impression. If you don’t make a great impression during those few seconds the user will navigate away from your website. Therefore you need to make sure that your website is visually engaging, easy to navigate, and contains quality and informative content.
When a candidate reaches the action stage they not only apply to jobs, they also conduct more in-depth research about a company, and form opinions based on the application experience. Candidates are not afraid to share their experience with the application process. Fifty percent of candidates share bad experiences with others and 64 percent share positive experiences.
In the engagement stage candidates interact with employers, interview for positions, and consider offers. Ninety-one percent of candidates believe employment brand plays a role in their decision whether or not to apply – therefore it is at this stage where your company’s online presence and participation in social media pays off.
How do candidates looking for a position within the manufacturing, transportation, and warehousing industries approach their job search? Let’s look.
Manufacturing industry
As shown in Figure 2, within the orientation stage, 85 percent of candidates looking for a job within the manufacturing industry turned to Google and 75 used a job board. In the consideration stage 83 percent used a company’s career site and 65 percent used social media to learn more about the company.
In the action stage 67 percent of candidates reported that they conducted additional research on an employer. In this stage only 14 percent of candidates reported employers in the manufacturing industry to be responsive.
Finally, looking at the final stage of the candidate’s journey, 67 percent reported that they felt the employer brand to be important.
Figure 2: The four phases of the job search; manufacturing industry
Source: 2013 CareerBuilder Candidate Behavior Study
Transportation and warehousing industries
Figure 3 shows that within the orientation stage 86 percent of candidates looking for a job within the transportation and warehousing industries turned to Google and 71 percent used a job board. In the consideration stage 87 percent used a company’s career site and 64 percent used social media to learn more about the company.
In the action stage 65 percent of candidates reported that they conducted additional research on an employer. In this stage only 15 percent of candidates reported employers to be responsive.
In the engagement phase, 75 percent of candidates reported that they felt the employer brand to be important.
Figure 3: The four phases of the job search; manufacturing industry
Source: 2013 CareerBuilder Candidate Behavior Study
In the end
Candidates looking for jobs within the manufacturing, transportation, and warehousing industries are using the internet and social media. They are researching these industries and researching companies within these industries. They are forming opinions, acting on these opinions, and sharing their opinions with others.
If the manufacturing, transportation, and warehousing industries want to attract great talent and retain their interest throughout a candidate’s job search they need to invest in their online presence and become active in social media.
by Jennifer Hart Yim | Jun 26, 2014 | Blog, Internet of Things, Logistics, Manufacturing & Distribution, Marketing, Social Media, Strategy, Supply Chain
This article is part of a series of articles written by MBA students and graduates from the University of New Hampshire Peter T. Paul College of Business and Economics.
Supply Chain Management will use the Internet of Things to improve factory workflow, increase material tracking, and optimize distribution to maximize revenues.
“Clap on “(clap, clap), “Clap off” (clap, clap), “the Clapper”!!
When introduced in 1986, “The Clapper” light switch was considered a significant breakthrough in home automation. Today, with advances in communication, sensors, and internet-connected devices, you can change the temperature of your home, your lights, appliances, and security system all from your smartphone — from anywhere in the world. This is just one simple example in the growing “Internet of Things” technology. The potential is enormous, not just in home automation but in industrial applications like manufacturing and distribution.
The Internet of Things (IoT) is broadly defined as the merging of the physical and digital worlds. It’s a scenario in which people and/or objects can be uniquely identified with the ability to share information over a network without any actual conscious intervention. The data is automatically transferred, analyzed, and used to trigger an event. Figure 1 below demonstrates how one of these devices functions and interacts with the Internet and other devices.
Figure 1.
The IoT and Supply Chain Management
While many of us may be familiar with recent advancements in home automation, like the Nest thermostat, the real impacts of IoT will be in Supply Chain Management. Recent reports by Cisco, IDC and Gartner all claim that a significant increase in the number of devices making up the Internet of Things will have a profound impact on how future supply chains will operate. The 2011 Cisco report predicts there will be 50 billion connected devices globally by 2020, or about 6.5 devices for each person, up from only approximately 2.5 today (see figure 2). More active devices means more available data — to the point where they will be ubiquitous and transparent in our every day lives.
Figure 2.
Impacts to supply chain will be broad and far-reaching, utilizing Big Data to gather and analyze information across the entire process.
Some IoT devices have been in place for some time, such as commercial telematics now used in trucking fleets to improve logistics efficiency. Other commercial type applications — like fabrics that use sensors within clothing and industrial fabrics to monitor human health or manufacturing processes — are just being developed now.
Mark Morely of GSX, a leading provider of monitoring and management solutions, recently discussed three key impacts he believed IoT would have on the Supply Chain industry: Pervasive Visibility, Proactive Replenishment, and Predictive Maintenance. This is a great way to explain the immediate benefits, so I will summarize Mark’s description and expand with some real-world examples.
Three key impacts the IoT will have on the supply chain industry
1) Pervasive Visibility
Mark describes this as the ability to track and monitor a shipment in real time using a combination of sensors (RFID), connected devices, and communication channels (3G/4G, GPS, internet). It provides the ability to have real-time transit status, including location, temperature, and diagnostics — far more information than legacy infomatics provided.
One great example I found is from a company called Purefresh, who are at the cutting edge of Supply Chain IoT technology. They offer not only real-time shipment condition tracking, but also the ability to model and develop transit routes to optimize freshness in perishable cargo — taking into account environmental elements, such as ozone, atmospheres, and temperature. They indicate that an estimated “30% to 50% (or 1.2-2 billion tons) of all food produced on the planet is lost before reaching a human stomach.” IoT advancements will not only better optimize transit flow but also better serve humanity.
2) Proactive Replenishment
It’s the capability to automatically recognize the need to order and restock a product on a “machine-to-machine” basis, reducing the need for human interaction. The most common example is that vending machines will know when it’s out of or low on a Snickers bars and immediately trigger an alert to reorder them, instead of waiting for a service person to check on the vending machine and reorder products manually. The result is less human intervention, quicker replenishment, better sales forecasting and ultimately increased revenues. Oh, and many more happy office workers who really need a mid-afternoon sugar rush!
Opportunities for this technology go far beyond the candy vending machine though. Industries with time critical inventories like hospitals and pharmacies can better maintain supplies by supplementing human inventory control with real time use tracking. A much less critical but more broadly used application comes from Coke’s Freestyle fountain soda machine. It’s about the same size as the existing vending machines but it can dispense 126 kinds of flavors, offering an almost infinite amount of combinations. It uses Radio Frequency ID (RFID) cartridges that store the concentrated syrups in the machine. The RFID chips detect how much of each syrup it has and what combinations are being used. When it detects that it needs supplies, it transmits the information to both Coca-Cola and the storeowner including what has been sold, a record of when sales occurred, troubleshooting information, and service data. As a result, soda sales and customer satisfaction increases, all with less effort by the storeowner.
3) Predictive Maintenance
This application is closer to the true machine-to-machine communications the IoT was intended for. From large-scale manufacturing to diagnostics on the family minivan, predictive maintenance utilizes sensors and connected devices to monitor and react to issues. This self-diagnosis capability can detect a potential issue before there’s a failure, order a replacement part, and even schedule maintenance to avoid costly downtime.
Not only does predictive maintenance help keep factories running longer and the family minivan from unexpectedly breaking down, it can improve efficiency throughout the whole supply chain. If equipment manufacturers constantly receive service data from factory equipment, they can better trend problems and focus on those issues for future products. Parts depots can better forecast inventories and determine consistent safety stock levels. IoT, in this example, is a true B2B (business to business) — automating the communication between businesses on every link of the chain.
In relation to home automation, predictive maintenance will become integrated into our everyday lives. Appliances will become smarter, more efficient, and easier to monitor. Internet-connected sensors will be embedded into everything from refrigerators to washers/dryers and HVAC systems. So much so that companies like GE are investing heavily into these technologies, in both commercial and industrial applications. These connected appliances will perform self-diagnosis, determine the most cost-efficient time to operate, and even automatically order maintenance parts like furnace filters when needed. Imagine getting an alert on your smartphone that your forced hot air furnace needs a new air filter, and it has already been ordered through your Amazon account. It just saved you effort in remembering to check the filter and ordering it — leading to a cleaner, longer-lasting, and more efficient furnace.
So, why isn’t IoT here yet?
It’s close but there are still hurdles to overcome. In recent years, advances in sensor technologies, 4G communications, and cloud computing has made achieving Internet of Things capabilities even more possible. But for companies in the Supply Chain to leverage these opportunities, they will need to expand investment into cloud-based platforms that can support scalable devices and data-analysis services.
Critical to IoT’s success will be the necessary “middleware” software communication protocols to link all these devices. Companies like ProSyst and open-source SW projects like OPENIoT are pioneering these capabilities. But even with this progress, agreements on industry standards will be key to long-term platform success.
Having a common IoT protocol will be necessary to link the physical and digital worlds on a consistent and economical basis. Understanding the need for standards and common architectures, Intel has led the way by recently creating the not-for-profit Industrial Internet Consortium (IIC) with other vested companies like AT&T, Cisco, GE, and IBM. The connected Supply “Chain” will become exponentially longer once these common standards are in place.
The Internet of Things trend is quickly approaching and will impact the way we live and work through increased productivity and efficiency. Supply Chain Management will continue utilizing these advanced technologies to improve factory workflow, increase material tracking, and optimize distribution to maximize revenues.
In 1986, I recall how innovative I thought the Clapper was — I couldn’t have imagined how connected we would become only 28 years later. And the next 28 will be sure to amaze.
Steve Mondazzi is a Principal Master Planner in the Defense Contracting industry. After 20 years’ experience in project management and schedule development, he decided to further his education by recently earning a Masters in Technology Management at the University of New Hampshire. He’s a certified PMI Project Management Professional, an entrepreneur, and an avid lover of all things technology. He currently resides in Massachusetts with his wife, two teenagers, and an excessive collection of headphones. Steve can be contacted via his Twitter account @schedulepro or through LinkedIn.
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