How-To Archives - Inbound Logistics https://www.inboundlogistics.com/articles/category/how-to/ Tue, 05 Mar 2024 19:39:20 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 https://www.inboundlogistics.com/wp-content/uploads/cropped-favicon-32x32.png How-To Archives - Inbound Logistics https://www.inboundlogistics.com/articles/category/how-to/ 32 32 10 Tips for Building Brand Reputation Through the Supply Chain https://www.inboundlogistics.com/articles/10-tips-for-building-brand-reputation-through-the-supply-chain/ Tue, 05 Mar 2024 13:12:48 +0000 https://www.inboundlogistics.com/?post_type=articles&p=39871 1. Focus on supplier relationships. Know your suppliers and work to build strong, trusted relationships. Their reputation directly impacts your brand. Collaborations should align with your company’s values, quality standards, and ethical practices.

2. Ensure consistent quality control. Quality control is not just about your final product; it extends to all aspects of your business. When sourcing components and materials from global suppliers, insist on stringent quality checks to ensure they are meeting your standards, each and every day. This maintains a consistent brand reputation for your company.

3. Verify data accuracy and reliability. Inaccurate supply chain and logistics data can delay shipments, add costs, and hurt your reputation. Your logistics technology platform should have clean, verified data so all supply chain stakeholders can make optimal, informed decisions. Data integrity standards are an effective way to drive supply chain value for your customers and all parties to a shipment.

4. Communicate in a timely manner. From start to finish, transparent and timely communication is key to building trust with customers and supply chain vendor partners. Be a good partner who communicates effectively and resolves issues promptly to avoid supply chain disruptions.

5. Prioritize social responsibility. Engage in community initiatives and support local causes where your company operates. Employees can actively participate in these activities, enhancing your brand’s reputation as a socially responsible organization and doing something good for your community and its people.

6. Build a transparent supply chain. Eliminate siloed communication. Connect internal stakeholders, vendor partners, and customers to simplify and streamline operations, enhance communication, and effectively respond to ongoing market conditions and challenges. Web-based supply chain and logistics technology enhances global connectivity and is available 24/7. Transparent supply chains foster trust and confidence in your brand.

7. Foster supply chain innovation. Encourage innovative solutions that could significantly improve your brand reputation. Innovation can lead to a better customer experience, improve efficiency, and enhance your reputation for being on the cutting-edge of industry advancement and trends.

8. Ensure sustainability. Whether it’s sustainable packaging, transportation and routing choices to reduce your supply chain carbon footprint, or selecting renewable energy sources in your warehouse, you can make eco-conscious decisions that demonstrate your commitment to a greener, healthier future. Your ongoing efforts in developing environmentally friendly solutions is a key way to create a planet-friendly supply chain, as well as enhance your brand reputation.

9. Collaborate on planning. Build a positive brand reputation by developing rapport with vendors and other stakeholders. This leads to better collaboration and mutual support, which serves you well when exceptions occur and supply chain performance relies on resolving these issues quickly. The essence of collaboration, honesty, and respect lays a strong foundation for year-round interactions.

10. Vet your sourcing choices. Your sourcing decisions can have a direct impact on your brand reputation. Ensure that your sourcing decisions include an ethical and sustainable practices review that involves fair labor practices, environmental standards, and community engagement efforts.

SOURCE: Jeff Plumley, Chief Commercial Officer, ASF Logistics

The post 10 Tips for Building Brand Reputation Through the Supply Chain appeared first on Inbound Logistics.

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1. Focus on supplier relationships. Know your suppliers and work to build strong, trusted relationships. Their reputation directly impacts your brand. Collaborations should align with your company’s values, quality standards, and ethical practices.

2. Ensure consistent quality control. Quality control is not just about your final product; it extends to all aspects of your business. When sourcing components and materials from global suppliers, insist on stringent quality checks to ensure they are meeting your standards, each and every day. This maintains a consistent brand reputation for your company.

3. Verify data accuracy and reliability. Inaccurate supply chain and logistics data can delay shipments, add costs, and hurt your reputation. Your logistics technology platform should have clean, verified data so all supply chain stakeholders can make optimal, informed decisions. Data integrity standards are an effective way to drive supply chain value for your customers and all parties to a shipment.

4. Communicate in a timely manner. From start to finish, transparent and timely communication is key to building trust with customers and supply chain vendor partners. Be a good partner who communicates effectively and resolves issues promptly to avoid supply chain disruptions.

5. Prioritize social responsibility. Engage in community initiatives and support local causes where your company operates. Employees can actively participate in these activities, enhancing your brand’s reputation as a socially responsible organization and doing something good for your community and its people.

6. Build a transparent supply chain. Eliminate siloed communication. Connect internal stakeholders, vendor partners, and customers to simplify and streamline operations, enhance communication, and effectively respond to ongoing market conditions and challenges. Web-based supply chain and logistics technology enhances global connectivity and is available 24/7. Transparent supply chains foster trust and confidence in your brand.

7. Foster supply chain innovation. Encourage innovative solutions that could significantly improve your brand reputation. Innovation can lead to a better customer experience, improve efficiency, and enhance your reputation for being on the cutting-edge of industry advancement and trends.

8. Ensure sustainability. Whether it’s sustainable packaging, transportation and routing choices to reduce your supply chain carbon footprint, or selecting renewable energy sources in your warehouse, you can make eco-conscious decisions that demonstrate your commitment to a greener, healthier future. Your ongoing efforts in developing environmentally friendly solutions is a key way to create a planet-friendly supply chain, as well as enhance your brand reputation.

9. Collaborate on planning. Build a positive brand reputation by developing rapport with vendors and other stakeholders. This leads to better collaboration and mutual support, which serves you well when exceptions occur and supply chain performance relies on resolving these issues quickly. The essence of collaboration, honesty, and respect lays a strong foundation for year-round interactions.

10. Vet your sourcing choices. Your sourcing decisions can have a direct impact on your brand reputation. Ensure that your sourcing decisions include an ethical and sustainable practices review that involves fair labor practices, environmental standards, and community engagement efforts.

SOURCE: Jeff Plumley, Chief Commercial Officer, ASF Logistics

The post 10 Tips for Building Brand Reputation Through the Supply Chain appeared first on Inbound Logistics.

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10 Tips for Selecting a Warehouse Management System https://www.inboundlogistics.com/articles/10-tips-for-selecting-a-warehouse-management-system/ Mon, 05 Feb 2024 21:22:53 +0000 https://www.inboundlogistics.com/?post_type=articles&p=39102 1. Determine operational complexity and stratify the warehouse network. Every warehouse is unique and can vary in complexity and sophistication, even within the same company across different warehouse sites. Understanding your warehouse network and the levels of complexity by warehouse helps when identifying the right WMS.

2. Understand the current state. Take stock of current operations. Are processes manual and paper-based or supported by legacy systems that might be functionally robust but aging and technically obsolete? This will influence whether you should simplify or select an advanced system.

3. Get familiar with existing applications. If you have an existing WMS (or multiple), familiarize yourself with the vendor(s) and determine if they have newer systems that you could adopt. Also, an ERP with WMS capabilities might be another route to explore if and where it makes sense.

4. Identify functional essentials. WMS is mature with parity but not equality across WMS offerings. Companies must identify the typically small number of non-standard or differentiating capabilities they absolutely must have, or the system will not work for them. These are not basic features and functions that might show up in an RFP. These are “must haves” that may require customization.

5. Map end-to-end processes. WMS solutions are good at handling the processes that take place inside a warehouse, but sometimes companies have processes that extend into other areas like manufacturing or omnichannel fulfillment. Understanding the extended process flow and integration needs is critical to success.

6. Consider business projections. A WMS has a long life span. Looking at short, medium, and long-term business projections into the future helps ensure scalability to support the business long term. Under-invest and you could be back looking at a new WMS in a few years. Buy too much and you will under-utilize the system, sometimes for decades.

7. Determine level and types of automation. Consider current and future automation needs and how the WMS will support and integrate with them. Historically, this was easier as material automation was often a significant investment and the cost helped dictate the strategy. Now, with flexible automation like intralogistics smart robots, just about any warehouse could consider automation.

8. Gauge employee readiness. Labor, both operational and IT, is a major challenge for warehouse operations. Evaluate the current composition of your team to ensure the right balance in both the business and technical aspects of deploying a new WMS. Few, if any, companies buy WMS to slash labor, but rather to improve productivity and reduce workforce churn. Aspects like user experience, flexibility, and new ways of working can lead to a more engaged workforce and should be highly rated criteria.

9. Identify improvement opportunities (ROI). It can be notoriously hard to justify the cost after installing a WMS for the first time. Companies must find additional business value for the system, such as labor management, slotting, warehouse redesign or automation. The key is identifying these opportunities and then demonstrating both hard and soft benefits to leadership.

10. Put a sharp eye to budget and financial constraints (TCO). Be brutally honest about financial constraints that could slow or stop an evaluation. Mandating a payback in less than two years might make justifying a new or replacement WMS difficult. The good news is since most WMS purchases are now cloud and SaaS-based, OPEX (an expense that is incurred through normal business operations) can help with capital appropriation. But total cost should be evaluated in both scenarios.

SOURCE: Dwight Klappich, Research Vice President and Fellow; Simon Tunstall, Director Analyst; and Federica Stufano, Sr Principal Analyst, Gartner Supply Chain Practice

The post 10 Tips for Selecting a Warehouse Management System appeared first on Inbound Logistics.

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1. Determine operational complexity and stratify the warehouse network. Every warehouse is unique and can vary in complexity and sophistication, even within the same company across different warehouse sites. Understanding your warehouse network and the levels of complexity by warehouse helps when identifying the right WMS.

2. Understand the current state. Take stock of current operations. Are processes manual and paper-based or supported by legacy systems that might be functionally robust but aging and technically obsolete? This will influence whether you should simplify or select an advanced system.

3. Get familiar with existing applications. If you have an existing WMS (or multiple), familiarize yourself with the vendor(s) and determine if they have newer systems that you could adopt. Also, an ERP with WMS capabilities might be another route to explore if and where it makes sense.

4. Identify functional essentials. WMS is mature with parity but not equality across WMS offerings. Companies must identify the typically small number of non-standard or differentiating capabilities they absolutely must have, or the system will not work for them. These are not basic features and functions that might show up in an RFP. These are “must haves” that may require customization.

5. Map end-to-end processes. WMS solutions are good at handling the processes that take place inside a warehouse, but sometimes companies have processes that extend into other areas like manufacturing or omnichannel fulfillment. Understanding the extended process flow and integration needs is critical to success.

6. Consider business projections. A WMS has a long life span. Looking at short, medium, and long-term business projections into the future helps ensure scalability to support the business long term. Under-invest and you could be back looking at a new WMS in a few years. Buy too much and you will under-utilize the system, sometimes for decades.

7. Determine level and types of automation. Consider current and future automation needs and how the WMS will support and integrate with them. Historically, this was easier as material automation was often a significant investment and the cost helped dictate the strategy. Now, with flexible automation like intralogistics smart robots, just about any warehouse could consider automation.

8. Gauge employee readiness. Labor, both operational and IT, is a major challenge for warehouse operations. Evaluate the current composition of your team to ensure the right balance in both the business and technical aspects of deploying a new WMS. Few, if any, companies buy WMS to slash labor, but rather to improve productivity and reduce workforce churn. Aspects like user experience, flexibility, and new ways of working can lead to a more engaged workforce and should be highly rated criteria.

9. Identify improvement opportunities (ROI). It can be notoriously hard to justify the cost after installing a WMS for the first time. Companies must find additional business value for the system, such as labor management, slotting, warehouse redesign or automation. The key is identifying these opportunities and then demonstrating both hard and soft benefits to leadership.

10. Put a sharp eye to budget and financial constraints (TCO). Be brutally honest about financial constraints that could slow or stop an evaluation. Mandating a payback in less than two years might make justifying a new or replacement WMS difficult. The good news is since most WMS purchases are now cloud and SaaS-based, OPEX (an expense that is incurred through normal business operations) can help with capital appropriation. But total cost should be evaluated in both scenarios.

SOURCE: Dwight Klappich, Research Vice President and Fellow; Simon Tunstall, Director Analyst; and Federica Stufano, Sr Principal Analyst, Gartner Supply Chain Practice

The post 10 Tips for Selecting a Warehouse Management System appeared first on Inbound Logistics.

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10 Tips for Improving Warehouse Operations https://www.inboundlogistics.com/articles/10-tips-for-improving-warehouse-operations/ Mon, 18 Dec 2023 12:00:51 +0000 https://www.inboundlogistics.com/?post_type=articles&p=38877 1. Optimize warehouse layout and improve space utilization. Reconfigure the warehouse layout to minimize travel distances for workers and inventory. Use more vertical space with high-density racks, vertical shelves, and AS/RS systems. A WMS can improve space utilization by optimizing slotting, product placement, and storage strategies.

2. Automate operational decision-making. Consider an automated planning system that optimizes the work historically released and executed by public warehouse workers. An automated planner orchestrates all the complex inbound and outbound work that must be done, considering all constraints to maximize efficiency. Automated planning helps free the workforce to handle any issues that may pop up.

3. Use a warehouse management system. A WMS tracks and manages inventory accurately. It can prioritize inventory items and allocate space accordingly. A WMS provides real-time visibility into inventory levels, locations, and movements, which reduces stockouts, overstocking, and order fulfillment errors.

4. Streamline order picking. Implement efficient strategies such as batch picking, which allows pickers to efficiently pick multiple orders in a single pass. Zone picking assigns workers to specific zones to reduce travel time. Wave picking divides orders into waves based on priority, size, or destination. Use handheld picking devices or voice technologies to reduce errors and improve speed.

5. Understand automation’s limits. Automation alone may not be the answer. The harsh reality is that automated technology for picking, retrieving, staging, and shipping takes a lot of work and operating expenses to maintain the same amount of output compared to paying traditional labor more.

6. Train and upskill warehouse staff. Ongoing training helps employees learn new techniques and best practices. Training on safety protocols and equipment usage reduces the risk of accidents and injuries. Ongoing training ensures that employees are aware of and compliant with any new regulations that must be adhered to, which reduces fines and legal issues.

7. Measure performance with KPIs. Key performance indicators (KPIs) provide quantifiable metrics that help you assess how well your warehouse operations perform and whether they align with your business goals. Choose relevant metrics such as picking accuracy, order cycle time, on-time delivery, order fill rate, and employee productivity. Regularly review KPIs and adjust based on data and feedback.

8. Eliminate chaos in the yard. Release work intelligently based on labor capacity, inventory availability, and demand. Optimally sequence inbounds and outbounds to proactively expand cross-docking and interleaving. Drive capacity-constrained yard moves—what trailer, where, when—to manage door turn times and reduce detention.

9. Manage intra-campus moves. Shippers often have campuses with multiple buildings with unique process flows. Inventory, receipts, transfers, and shipments must be optimized across multiple buildings with the right timing to minimize touches. Managing intra-campus moves efficiently requires technology that carefully plans and organizes every detail. Each inventory transfer costs between $150 and $500; a reduction in transfers can save millions.

10. Use intelligent warehouse orchestration that integrates with a WMS. Often called WMS accelerators, these tools adapt and rebalance activities based on what happens inside a warehouse in near-real time. WMS accelerators rearrange schedules, review labor requirements, schedule replenishments, cross-dock orders, and ensure shipments arrive on time and in full.

SOURCE: Keith Moore, CEO, AutoScheduler.AI

The post 10 Tips for Improving Warehouse Operations appeared first on Inbound Logistics.

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1. Optimize warehouse layout and improve space utilization. Reconfigure the warehouse layout to minimize travel distances for workers and inventory. Use more vertical space with high-density racks, vertical shelves, and AS/RS systems. A WMS can improve space utilization by optimizing slotting, product placement, and storage strategies.

2. Automate operational decision-making. Consider an automated planning system that optimizes the work historically released and executed by public warehouse workers. An automated planner orchestrates all the complex inbound and outbound work that must be done, considering all constraints to maximize efficiency. Automated planning helps free the workforce to handle any issues that may pop up.

3. Use a warehouse management system. A WMS tracks and manages inventory accurately. It can prioritize inventory items and allocate space accordingly. A WMS provides real-time visibility into inventory levels, locations, and movements, which reduces stockouts, overstocking, and order fulfillment errors.

4. Streamline order picking. Implement efficient strategies such as batch picking, which allows pickers to efficiently pick multiple orders in a single pass. Zone picking assigns workers to specific zones to reduce travel time. Wave picking divides orders into waves based on priority, size, or destination. Use handheld picking devices or voice technologies to reduce errors and improve speed.

5. Understand automation’s limits. Automation alone may not be the answer. The harsh reality is that automated technology for picking, retrieving, staging, and shipping takes a lot of work and operating expenses to maintain the same amount of output compared to paying traditional labor more.

6. Train and upskill warehouse staff. Ongoing training helps employees learn new techniques and best practices. Training on safety protocols and equipment usage reduces the risk of accidents and injuries. Ongoing training ensures that employees are aware of and compliant with any new regulations that must be adhered to, which reduces fines and legal issues.

7. Measure performance with KPIs. Key performance indicators (KPIs) provide quantifiable metrics that help you assess how well your warehouse operations perform and whether they align with your business goals. Choose relevant metrics such as picking accuracy, order cycle time, on-time delivery, order fill rate, and employee productivity. Regularly review KPIs and adjust based on data and feedback.

8. Eliminate chaos in the yard. Release work intelligently based on labor capacity, inventory availability, and demand. Optimally sequence inbounds and outbounds to proactively expand cross-docking and interleaving. Drive capacity-constrained yard moves—what trailer, where, when—to manage door turn times and reduce detention.

9. Manage intra-campus moves. Shippers often have campuses with multiple buildings with unique process flows. Inventory, receipts, transfers, and shipments must be optimized across multiple buildings with the right timing to minimize touches. Managing intra-campus moves efficiently requires technology that carefully plans and organizes every detail. Each inventory transfer costs between $150 and $500; a reduction in transfers can save millions.

10. Use intelligent warehouse orchestration that integrates with a WMS. Often called WMS accelerators, these tools adapt and rebalance activities based on what happens inside a warehouse in near-real time. WMS accelerators rearrange schedules, review labor requirements, schedule replenishments, cross-dock orders, and ensure shipments arrive on time and in full.

SOURCE: Keith Moore, CEO, AutoScheduler.AI

The post 10 Tips for Improving Warehouse Operations appeared first on Inbound Logistics.

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10 Tips for Boosting Ecommerce Efficiency https://www.inboundlogistics.com/articles/10-tips-for-boosting-ecommerce-efficiency/ Mon, 06 Nov 2023 12:00:53 +0000 https://www.inboundlogistics.com/?post_type=articles&p=38404 1. Integrate Supply Chain and Ecommerce Systems. Invest in platforms that connect your customer-facing systems with vendor partners’ warehouses, distribution centers, and transportation providers. An integrated approach provides visibility for all stakeholders and reduces errors related to manual intervention and data entry.

2. Optimize Warehouse Operations. Consider implementing solutions such as automated sorting and dimensioning, a mobile warehouse management system, conveyor systems, and robotic process automation to speed order fulfillment. A well-designed warehouse layout can also significantly reduce the time it takes to pick and pack orders.

3. Boost Customs Compliance Efficiency. For ecommerce imports into the United States, take advantage of Entry Type 86 or Section 321 to save time and money with faster clearance and minimal manual processing. Automated Border Interface (ABI) software from an experienced provider lets you mass-upload house bills from a simple spreadsheet to expedite the customs release of your packages.

4. Prioritize Real-Time Inventory Tracking. Use RFID tags, barcodes, and other tracking technologies to monitor inventory movement in real time—not just in the warehouse, but at every step of the product journey. This can help prevent stockouts, reduce overstock, improve coordination between agents, and ensure that inventory is replenished quickly.

5. Evaluate Inventory Management. Efficient inventory management is tantamount to ecommerce success. But inventory management techniques are not one-size-fits all. A strategy that works well in one company may not suit another, so it’s important to research and evaluate several options to find the best one—or a combination—for your specific business needs.

6. Implement Effective Returns Management. Don’t neglect the returns process when analyzing efficiency. A streamlined returns process can reduce costs and improve customer satisfaction. Consider centralized return centers, third-party partners, and other techniques to reduce handling. Use analytics to understand return reasons, which can, in turn, inform positive product and process improvements that will reduce future returns.

7. Diversify Supplier Networks. Avoid relying too heavily on a single supplier, carrier, or partner. Building relationships with multiple partners ensures that your ecommerce supply chain remains robust even if one stakeholder faces issues.

8. Set Risk Management Plans. Regularly assess potential risks, such as geopolitical issues, supply chain weaknesses, natural disasters, or labor shortages and strikes. Put contingency plans into place to ensure minimal disruption to your supply chain in case of unforeseen events.

9. Train and Develop Your Staff. As technology and best practices evolve, ensure that your team receives regular training to keep current. A knowledgeable and skilled workforce can adapt to changes more rapidly and ensure the effective management of your logistics and supply chain processes.

10. Regularly Measure and Monitor Ecommerce KPIs. Continuous improvement requires constant measurement and evaluation of ecommerce KPIs (key performance indicators). Regularly review and analyze KPIs such as order turnaround time and accuracy, overstocks, stock-outs, and inventory turnover to proactively identify areas for improvement.

SOURCE: Matthew Fotouhi, Chief Technology Officer, Customs Compliance, Magaya

The post 10 Tips for Boosting Ecommerce Efficiency appeared first on Inbound Logistics.

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1. Integrate Supply Chain and Ecommerce Systems. Invest in platforms that connect your customer-facing systems with vendor partners’ warehouses, distribution centers, and transportation providers. An integrated approach provides visibility for all stakeholders and reduces errors related to manual intervention and data entry.

2. Optimize Warehouse Operations. Consider implementing solutions such as automated sorting and dimensioning, a mobile warehouse management system, conveyor systems, and robotic process automation to speed order fulfillment. A well-designed warehouse layout can also significantly reduce the time it takes to pick and pack orders.

3. Boost Customs Compliance Efficiency. For ecommerce imports into the United States, take advantage of Entry Type 86 or Section 321 to save time and money with faster clearance and minimal manual processing. Automated Border Interface (ABI) software from an experienced provider lets you mass-upload house bills from a simple spreadsheet to expedite the customs release of your packages.

4. Prioritize Real-Time Inventory Tracking. Use RFID tags, barcodes, and other tracking technologies to monitor inventory movement in real time—not just in the warehouse, but at every step of the product journey. This can help prevent stockouts, reduce overstock, improve coordination between agents, and ensure that inventory is replenished quickly.

5. Evaluate Inventory Management. Efficient inventory management is tantamount to ecommerce success. But inventory management techniques are not one-size-fits all. A strategy that works well in one company may not suit another, so it’s important to research and evaluate several options to find the best one—or a combination—for your specific business needs.

6. Implement Effective Returns Management. Don’t neglect the returns process when analyzing efficiency. A streamlined returns process can reduce costs and improve customer satisfaction. Consider centralized return centers, third-party partners, and other techniques to reduce handling. Use analytics to understand return reasons, which can, in turn, inform positive product and process improvements that will reduce future returns.

7. Diversify Supplier Networks. Avoid relying too heavily on a single supplier, carrier, or partner. Building relationships with multiple partners ensures that your ecommerce supply chain remains robust even if one stakeholder faces issues.

8. Set Risk Management Plans. Regularly assess potential risks, such as geopolitical issues, supply chain weaknesses, natural disasters, or labor shortages and strikes. Put contingency plans into place to ensure minimal disruption to your supply chain in case of unforeseen events.

9. Train and Develop Your Staff. As technology and best practices evolve, ensure that your team receives regular training to keep current. A knowledgeable and skilled workforce can adapt to changes more rapidly and ensure the effective management of your logistics and supply chain processes.

10. Regularly Measure and Monitor Ecommerce KPIs. Continuous improvement requires constant measurement and evaluation of ecommerce KPIs (key performance indicators). Regularly review and analyze KPIs such as order turnaround time and accuracy, overstocks, stock-outs, and inventory turnover to proactively identify areas for improvement.

SOURCE: Matthew Fotouhi, Chief Technology Officer, Customs Compliance, Magaya

The post 10 Tips for Boosting Ecommerce Efficiency appeared first on Inbound Logistics.

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10 Tips for Selecting LTL Service Levels https://www.inboundlogistics.com/articles/selecting-ltl-service-levels/ Wed, 18 Oct 2023 12:00:11 +0000 https://www.inboundlogistics.com/?post_type=articles&p=38170 1. Align transit time with your desired service. Determine the transit time needed to match the expectations of your customers. With faster transit time being more costly, you need to assess if speed and reliability are worth the higher price point.

2. Conduct a cost-benefit analysis. Take stock of your company’s shipping priorities and the value they bring your business. From there, you can best decide on a carrier that balances quality with cost-effectiveness in those areas.

3. Assess ecommerce compatibility. As ecommerce becomes more dominant, many less-than-truckload (LTL) carriers have made a shift into providing residential delivery. If part of your business’s value proposition is white-glove delivery service, you want to select a carrier that is reliable with residential deliveries and offers installation and premium assistance to your end customer.

4. Seek out specialized carriers. Some carriers have certain niches when it comes to the products they ship and the industries they serve. For example, a carrier may have a strong record with food and grocery shipments. Based on your type of business, opt for a carrier with dedicated experience transporting those types of products to ensure proper handling and adherence to regulations.

5. Identify special handling/equipment. Your shipments may require a unique type of care throughout the transit process, such as temperature control, delicate handling or the use of special equipment for larger shipments. The carrier you select must have those capabilities and equipment. Additionally, some carriers offer value-added services, such as assembly and packaging, that you may want to incorporate to enhance your delivery experience.

6. Confirm geographical coverage. Verify that the carrier’s routes align with your shipping destinations to drive prompt and reliable delivery for your customers. Furthermore, research the distance between the carrier’s shipment terminals and origin points. A shorter geographical distance will allow for increased operational efficiency and flexibility.

7. Determine retailer relationships. Ensure the LTL carrier you are considering has experience working with large, big-box retailers. These retailers can have unique requirements regarding appointment scheduling, advanced shipment notification, delivery windows and proof of delivery requirements. A carrier with a positive history and amicable working relationship with retailers can help you avoid unnecessary fines and penalties when conducting business with them.

8. Ensure capacity commitments are met. Given that fluctuations in the economy can impact carrier capacity, work with a provider that upholds initial agreements even amidst an uncertain market. This commitment will solidify consistency in your service and prevent disruptions throughout your supply chain.

9. Assess visibility and timely PoD. In today’s logistics landscape, supply chain visibility is imperative for businesses and customers alike. You need a well-equipped carrier that offers real-time tracking and consistency in sending proof of delivery. With these capabilities in place, you can better manage customer expectations and proactively address potential issues.

10. Research claims ratios and history of billing accuracy. Do your due diligence on a carrier’s claims ratios and billing track record. While LTL billing is inherently complex, a proven account of accuracy and a claims ratio under 1% indicates their commitment to preventing interruption to your shipments.

Source: Jeff McDermott, Executive Vice President of Transportation, GEODIS in Americas

The post 10 Tips for Selecting LTL Service Levels appeared first on Inbound Logistics.

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1. Align transit time with your desired service. Determine the transit time needed to match the expectations of your customers. With faster transit time being more costly, you need to assess if speed and reliability are worth the higher price point.

2. Conduct a cost-benefit analysis. Take stock of your company’s shipping priorities and the value they bring your business. From there, you can best decide on a carrier that balances quality with cost-effectiveness in those areas.

3. Assess ecommerce compatibility. As ecommerce becomes more dominant, many less-than-truckload (LTL) carriers have made a shift into providing residential delivery. If part of your business’s value proposition is white-glove delivery service, you want to select a carrier that is reliable with residential deliveries and offers installation and premium assistance to your end customer.

4. Seek out specialized carriers. Some carriers have certain niches when it comes to the products they ship and the industries they serve. For example, a carrier may have a strong record with food and grocery shipments. Based on your type of business, opt for a carrier with dedicated experience transporting those types of products to ensure proper handling and adherence to regulations.

5. Identify special handling/equipment. Your shipments may require a unique type of care throughout the transit process, such as temperature control, delicate handling or the use of special equipment for larger shipments. The carrier you select must have those capabilities and equipment. Additionally, some carriers offer value-added services, such as assembly and packaging, that you may want to incorporate to enhance your delivery experience.

6. Confirm geographical coverage. Verify that the carrier’s routes align with your shipping destinations to drive prompt and reliable delivery for your customers. Furthermore, research the distance between the carrier’s shipment terminals and origin points. A shorter geographical distance will allow for increased operational efficiency and flexibility.

7. Determine retailer relationships. Ensure the LTL carrier you are considering has experience working with large, big-box retailers. These retailers can have unique requirements regarding appointment scheduling, advanced shipment notification, delivery windows and proof of delivery requirements. A carrier with a positive history and amicable working relationship with retailers can help you avoid unnecessary fines and penalties when conducting business with them.

8. Ensure capacity commitments are met. Given that fluctuations in the economy can impact carrier capacity, work with a provider that upholds initial agreements even amidst an uncertain market. This commitment will solidify consistency in your service and prevent disruptions throughout your supply chain.

9. Assess visibility and timely PoD. In today’s logistics landscape, supply chain visibility is imperative for businesses and customers alike. You need a well-equipped carrier that offers real-time tracking and consistency in sending proof of delivery. With these capabilities in place, you can better manage customer expectations and proactively address potential issues.

10. Research claims ratios and history of billing accuracy. Do your due diligence on a carrier’s claims ratios and billing track record. While LTL billing is inherently complex, a proven account of accuracy and a claims ratio under 1% indicates their commitment to preventing interruption to your shipments.

Source: Jeff McDermott, Executive Vice President of Transportation, GEODIS in Americas

The post 10 Tips for Selecting LTL Service Levels appeared first on Inbound Logistics.

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Rethinking Retail Strategies https://www.inboundlogistics.com/articles/rethinking-retail-strategies/ Mon, 25 Sep 2023 00:05:36 +0000 https://www.inboundlogistics.com/?post_type=articles&p=38033 1. Implement stronger assortment productivity metrics. While the first instinct might be to invest in assortment planning software, many companies can improve assortment profitability by implementing stronger metrics such as gross margin return on investment by style or by category across channels. You cannot improve what you do not measure, so consider getting more specific and current with your key performance indicators (KPIs).

2. Have a holistic demand point of view. While each channel has nuances, demand applies to the product holistically, regardless of selling channel. Plan, analyze, and report all sources of demand.

3. Focus on process. A strong assortment justification process can align more than just inventory. It can influence product design to mitigate the cost of over-development, over-assorting, and housing too much inventory, which ultimately reduces profitable revenue.

4. Don’t overlook the 16-18%. Based on historical data, returns are likely to run 16-18% this year. Having a returns strategy and plan is essential for retailers, and they cannot afford to overlook it. It is critical to have a clear view of inventory that is truly available to sell vs. existing somewhere in the pipeline.

5. Leverage data to drive decisions. Ensure your data is accessible, available, and ready for use across the enterprise. Clearly defined data governance and management keeps data ready and secure, eliminates the “justification of the number” and facilitates more efficient and informed decisions.

6. Automate solutions wisely. Artificial intelligence and machine learning are removing much of the guesswork in decision-making. Be sure to develop a plan that takes advantage of those features within your existing technology.

7. Position inventory appropriately. Align inventory and demand from the point of distribution and sale. Push what is needed to be brand-positive and tell the merchandise story at the store. Once established, let sales dictate where and how your replenishment flows.

8. Optimize the technology you own. Owning technology is no guarantee that you are fully realizing its benefits. Implement processes supporting the use of the technology, then review them regularly.

9. Keep an end-to-end perspective. Hold all inventory accountable for expected sales and profit performance—from conception to final sale. Measure this through a series of linked plans, such as corporate sales goals, merchandise financial plans by channel, assortment planning at all levels, demand planning and forecasting, and allocation and replenishment.

10. Don’t lose sight of the goal. Clearly align your business goals with your people, processes, and technology. Conducting a full capabilities assessment of your organization will clearly illustrate the pain points, gaps, and opportunities for growth and improvement along with a timeline to execute, resulting in improved strategies and execution.

SOURCES: Allison McCabe, director of retail technology and Julie Cheney, senior director of retail, enVista.

The post Rethinking Retail Strategies appeared first on Inbound Logistics.

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1. Implement stronger assortment productivity metrics. While the first instinct might be to invest in assortment planning software, many companies can improve assortment profitability by implementing stronger metrics such as gross margin return on investment by style or by category across channels. You cannot improve what you do not measure, so consider getting more specific and current with your key performance indicators (KPIs).

2. Have a holistic demand point of view. While each channel has nuances, demand applies to the product holistically, regardless of selling channel. Plan, analyze, and report all sources of demand.

3. Focus on process. A strong assortment justification process can align more than just inventory. It can influence product design to mitigate the cost of over-development, over-assorting, and housing too much inventory, which ultimately reduces profitable revenue.

4. Don’t overlook the 16-18%. Based on historical data, returns are likely to run 16-18% this year. Having a returns strategy and plan is essential for retailers, and they cannot afford to overlook it. It is critical to have a clear view of inventory that is truly available to sell vs. existing somewhere in the pipeline.

5. Leverage data to drive decisions. Ensure your data is accessible, available, and ready for use across the enterprise. Clearly defined data governance and management keeps data ready and secure, eliminates the “justification of the number” and facilitates more efficient and informed decisions.

6. Automate solutions wisely. Artificial intelligence and machine learning are removing much of the guesswork in decision-making. Be sure to develop a plan that takes advantage of those features within your existing technology.

7. Position inventory appropriately. Align inventory and demand from the point of distribution and sale. Push what is needed to be brand-positive and tell the merchandise story at the store. Once established, let sales dictate where and how your replenishment flows.

8. Optimize the technology you own. Owning technology is no guarantee that you are fully realizing its benefits. Implement processes supporting the use of the technology, then review them regularly.

9. Keep an end-to-end perspective. Hold all inventory accountable for expected sales and profit performance—from conception to final sale. Measure this through a series of linked plans, such as corporate sales goals, merchandise financial plans by channel, assortment planning at all levels, demand planning and forecasting, and allocation and replenishment.

10. Don’t lose sight of the goal. Clearly align your business goals with your people, processes, and technology. Conducting a full capabilities assessment of your organization will clearly illustrate the pain points, gaps, and opportunities for growth and improvement along with a timeline to execute, resulting in improved strategies and execution.

SOURCES: Allison McCabe, director of retail technology and Julie Cheney, senior director of retail, enVista.

The post Rethinking Retail Strategies appeared first on Inbound Logistics.

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10 Tips: Avoiding Compliance Pitfalls https://www.inboundlogistics.com/articles/avoiding-compliance-pitfalls/ Wed, 23 Aug 2023 04:00:31 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37586 1. Know what you’re shipping. Businesses often don’t realize they’re shipping DG. Know what goods are classified as dangerous—you might be surprised that items ranging from medical devices and cell phones to nail polish and perfume are regulated when being transported.

2. Maintain current safety data sheets. A product’s components, dimensions, and origins impact every process required for safe and compliant shipping, including packaging, labels, documentation, employee training, and more. Maintain current safety data sheets with complete and accurate information for all products you ship to help ensure you comply with all shipping regulations.

3. Keep up to date with regulations. Regulations can differ based on quantity, country, and transportation mode, and can continue to change. So don’t just assume that what was correct one year ago is correct today; stay up to date on the latest regulations to make the necessary changes to your shipping operations.

4. Automate compliance processes. Manual compliance processes are inefficient and can lead to errors that bring about delays, penalties and other interruptions. DG technology can automate and streamline the shipping process by producing documentation, validating shipments against the latest regulations, and more. You can then implement these repeatable and reliable processes across all locations, departments, and supply chain partners.

5. Don’t assume functionality. Many transportation and warehouse management systems and enterprise resource planning platforms lack the functionality required to fully address dangerous goods shipping processes. Don’t assume your existing systems have the compliance capabilities you need. You may need additional DG-specific software that can often integrate into your existing platforms.

6. Be aware of carrier policy changes. Carriers can impose tighter restrictions than what regulations require, or they can decline shipments altogether. Even if you’re 100% in compliance regarding training, paperwork, and packaging, individual carriers still may not accept your shipment.

7. Invest in quality training. Ensure all employees involved in shipping and handling DG receive the required training in accordance with 49 CFR 172.704. Online interactive and 3D training can help them digest complicated regulations in a more convenient and engaging format. And know where their training records are—that’s the first thing regulators request during an audit.

8. Know what ships with your goods. Compliance doesn’t pertain just to your company’s products; it also pertains to the items shipped with them. This encompasses items such as those used to regulate temperature or track shipments, including dry ice and monitors containing lithium batteries. These are regulated goods themselves and have their own rules and restrictions.

9. Don’t forget about returns. Return shipments must comply with the same hazmat rules as items shipped to consumers, and it’s the shipper’s responsibility to ensure compliance. Establish standardized returns management processes, such as providing compliant packaging with the required labels and markings, shipping all returns via ground transportation, and training customer service representatives to answer customers’ questions about return shipments.

10. Consider partnering with an expert. Shipping DG is complicated. Partner with an industry expert to help make sense of the regulations and implement the necessary processes and systems to ensure compliance across your supply chain.

SOURCE: Brian Beetz, Director of Regulatory Affairs and Corporate Responsibility, Labelmaster

The post 10 Tips: Avoiding Compliance Pitfalls appeared first on Inbound Logistics.

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1. Know what you’re shipping. Businesses often don’t realize they’re shipping DG. Know what goods are classified as dangerous—you might be surprised that items ranging from medical devices and cell phones to nail polish and perfume are regulated when being transported.

2. Maintain current safety data sheets. A product’s components, dimensions, and origins impact every process required for safe and compliant shipping, including packaging, labels, documentation, employee training, and more. Maintain current safety data sheets with complete and accurate information for all products you ship to help ensure you comply with all shipping regulations.

3. Keep up to date with regulations. Regulations can differ based on quantity, country, and transportation mode, and can continue to change. So don’t just assume that what was correct one year ago is correct today; stay up to date on the latest regulations to make the necessary changes to your shipping operations.

4. Automate compliance processes. Manual compliance processes are inefficient and can lead to errors that bring about delays, penalties and other interruptions. DG technology can automate and streamline the shipping process by producing documentation, validating shipments against the latest regulations, and more. You can then implement these repeatable and reliable processes across all locations, departments, and supply chain partners.

5. Don’t assume functionality. Many transportation and warehouse management systems and enterprise resource planning platforms lack the functionality required to fully address dangerous goods shipping processes. Don’t assume your existing systems have the compliance capabilities you need. You may need additional DG-specific software that can often integrate into your existing platforms.

6. Be aware of carrier policy changes. Carriers can impose tighter restrictions than what regulations require, or they can decline shipments altogether. Even if you’re 100% in compliance regarding training, paperwork, and packaging, individual carriers still may not accept your shipment.

7. Invest in quality training. Ensure all employees involved in shipping and handling DG receive the required training in accordance with 49 CFR 172.704. Online interactive and 3D training can help them digest complicated regulations in a more convenient and engaging format. And know where their training records are—that’s the first thing regulators request during an audit.

8. Know what ships with your goods. Compliance doesn’t pertain just to your company’s products; it also pertains to the items shipped with them. This encompasses items such as those used to regulate temperature or track shipments, including dry ice and monitors containing lithium batteries. These are regulated goods themselves and have their own rules and restrictions.

9. Don’t forget about returns. Return shipments must comply with the same hazmat rules as items shipped to consumers, and it’s the shipper’s responsibility to ensure compliance. Establish standardized returns management processes, such as providing compliant packaging with the required labels and markings, shipping all returns via ground transportation, and training customer service representatives to answer customers’ questions about return shipments.

10. Consider partnering with an expert. Shipping DG is complicated. Partner with an industry expert to help make sense of the regulations and implement the necessary processes and systems to ensure compliance across your supply chain.

SOURCE: Brian Beetz, Director of Regulatory Affairs and Corporate Responsibility, Labelmaster

The post 10 Tips: Avoiding Compliance Pitfalls appeared first on Inbound Logistics.

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Boosting Supply Chain Visibility https://www.inboundlogistics.com/articles/boosting-supply-chain-visibility-3/ Thu, 20 Jul 2023 14:28:41 +0000 https://www.inboundlogistics.com/?post_type=articles&p=37217 1. Obtain good quality data. The old saying about “garbage in, garbage out” is true. Shippers cannot attain end-to-end visibility of their supply chain without good, clean, quality data gathered from multiple sources across the supply chain. Collect and analyze data on customer demand, order volumes, order patterns, typical shipment performance, common issues that arise, and more. This information will help you plan your shipments more accurately, mitigate risk by creating contingencies for issues that arise, and effectively respond to changes in the supply chain.

2. Get a cohesive view of all modes. Gaining a seamless view of all transportation modes requires technology that can digest the data and provide a holistic overview of the supply chain. What good are your supply chain processes if you can see where your trucks are in real time but have no idea where your rail or ocean shipments are?

3. Employ AI and ML algorithms. Artificial intelligence and machine learning continuously learn from the collected data and provide details on how to optimize the supply chain. AI empowers organizations to make sense of complex supply chain data, improve forecasting accuracy, optimize operations, and enhance decision-making capabilities, enhancing supply chain visibility and performance.

4. Integrate and synchronize data. Do this across the entire supply chain, from suppliers to end customers. This data needs to exist in a centralized data repository accessible to authorized stakeholders across the supply chain, enabling them to view and utilize the information for decision-making.

5. Deploy advanced analytics. Analyze the collected data and generate actionable insights. So many shippers spend time trying to execute faster, but few really take the time to analyze their data and work better. The right analytics identify trends, optimize processes, predict demand, and mitigate risks. When issues or disruptions occur in the supply chain, advanced analytics can help identify the root causes, enabling stakeholders to understand the underlying factors contributing to problems such as delays, quality issues, or inefficiencies.

6. Consider data visualization. To help people better understand and interpret supply chain information, data is transformed into visual elements like charts or graphs that can be easily comprehended so that viewers quickly grasp insight, trends, and patterns that might not be apparent from the raw data alone.

7. Leverage a technology platform. Find the technology solution that has the expertise of your specific market because the behavior of the consumer products or medical market is different from industrial bulk or break bulk markets. A supply chain visibility platform tailored to your industry can help shippers understand how the market behaves.

8. Implement tracking technologies. GPS, telematics, or other IoT devices sense and monitor the movement and condition of shipments in real time. These technologies provide visibility into the status and location of shipments throughout the transportation process. Shippers can proactively address any shipment issues or exceptions that arise.

9. Use risk-based decision-making. Leverage data analytics, predictive modeling, and proactive measures to identify, assess, prioritize, and mitigate risks that can impact supply chain visibility.

10. Collaborate with suppliers, customers, and other stakeholders. Gain insights about sustainable practices. By working closely with suppliers and promoting transparency, organizations gain visibility into supplier operations, enabling them to assess sustainability performance and make informed sourcing decisions.

SOURCE: Ken Sherman, President, IntelliTrans

The post Boosting Supply Chain Visibility appeared first on Inbound Logistics.

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1. Obtain good quality data. The old saying about “garbage in, garbage out” is true. Shippers cannot attain end-to-end visibility of their supply chain without good, clean, quality data gathered from multiple sources across the supply chain. Collect and analyze data on customer demand, order volumes, order patterns, typical shipment performance, common issues that arise, and more. This information will help you plan your shipments more accurately, mitigate risk by creating contingencies for issues that arise, and effectively respond to changes in the supply chain.

2. Get a cohesive view of all modes. Gaining a seamless view of all transportation modes requires technology that can digest the data and provide a holistic overview of the supply chain. What good are your supply chain processes if you can see where your trucks are in real time but have no idea where your rail or ocean shipments are?

3. Employ AI and ML algorithms. Artificial intelligence and machine learning continuously learn from the collected data and provide details on how to optimize the supply chain. AI empowers organizations to make sense of complex supply chain data, improve forecasting accuracy, optimize operations, and enhance decision-making capabilities, enhancing supply chain visibility and performance.

4. Integrate and synchronize data. Do this across the entire supply chain, from suppliers to end customers. This data needs to exist in a centralized data repository accessible to authorized stakeholders across the supply chain, enabling them to view and utilize the information for decision-making.

5. Deploy advanced analytics. Analyze the collected data and generate actionable insights. So many shippers spend time trying to execute faster, but few really take the time to analyze their data and work better. The right analytics identify trends, optimize processes, predict demand, and mitigate risks. When issues or disruptions occur in the supply chain, advanced analytics can help identify the root causes, enabling stakeholders to understand the underlying factors contributing to problems such as delays, quality issues, or inefficiencies.

6. Consider data visualization. To help people better understand and interpret supply chain information, data is transformed into visual elements like charts or graphs that can be easily comprehended so that viewers quickly grasp insight, trends, and patterns that might not be apparent from the raw data alone.

7. Leverage a technology platform. Find the technology solution that has the expertise of your specific market because the behavior of the consumer products or medical market is different from industrial bulk or break bulk markets. A supply chain visibility platform tailored to your industry can help shippers understand how the market behaves.

8. Implement tracking technologies. GPS, telematics, or other IoT devices sense and monitor the movement and condition of shipments in real time. These technologies provide visibility into the status and location of shipments throughout the transportation process. Shippers can proactively address any shipment issues or exceptions that arise.

9. Use risk-based decision-making. Leverage data analytics, predictive modeling, and proactive measures to identify, assess, prioritize, and mitigate risks that can impact supply chain visibility.

10. Collaborate with suppliers, customers, and other stakeholders. Gain insights about sustainable practices. By working closely with suppliers and promoting transparency, organizations gain visibility into supplier operations, enabling them to assess sustainability performance and make informed sourcing decisions.

SOURCE: Ken Sherman, President, IntelliTrans

The post Boosting Supply Chain Visibility appeared first on Inbound Logistics.

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Managing Your Ocean Freight https://www.inboundlogistics.com/articles/managing-your-ocean-freight/ Wed, 07 Jun 2023 01:37:25 +0000 https://www.inboundlogistics.com/?post_type=articles&p=36884 1. Be sure to read the fine print. Find the total cost of transportation and confirm what is fixed and what is variable. The ocean market is competitive and some rate offers may be too good to be true. Many BCOs are eager to recoup the higher ocean freight costs spent over the past two years, but it’s still important to understand the terms and conditions. Learn the applicability of future general rate increases and mechanisms for bunker adjustment factor price fluctuations.

2. Be a preferred shipper. Large volumes do afford buying power, but ocean carriers also desire regular, dependable BCOs on key routes. Make sure your operations deliver shipments prior to cutoffs (latest receipt date) and do the same for submitting your shipper’s letter of instructions (SLIs).

3. Encourage communication and documentation. These can be just as important as transportation when selecting ocean partners. How well does the carrier notify of delays? No one wants to find out about a delay after their customer is aware. Does the carrier issue timely and accurate bills of lading? The consequential costs of poor documentation can significantly outweigh the cost of transportation.

4. Use carrier scorecards. Scorecards are an effective tool to objectively review data when assessing performance under service level agreements. Carrier scorecards provide a quality framework to collaborate on continuous improvement opportunities.

5. Do not put all your eggs in one basket. Many BCOs learned the importance of supply chain resilience the hard way over the past few years. Mitigate risk with carrier selection, rate agreement type, and routings.

6. Stay hyper-vigilant on transit times. One ocean shipping alliance has announced its break-up and others may follow suit. A route that was historically direct from point A to point B may move in the future via transshipment or feeder. If you use a transit time in your enterprise resource planner (ERP) as a delivery-to-promise date for a customer, routinely review the service changes to make sure the confirmed customer ETA is attainable.

7. Reduce your lead times. Similar to transit time, the current state of overcapacity in the ocean market allows BCOs to reduce overall cycle time from order to cash. Lead times were as high as six weeks during the pandemic due to equipment availability and vessel space. In today’s environment, BCOs should be able to cut that in half and perhaps even get on next week’s vessel.

8. Ship with green in mind. The day is quickly arriving for commercially viable green ocean transportation options, with many companies developing ambitious sustainability objectives. Many carriers offer different “greener” services, but BCOs should carefully examine these offerings to partner with providers that are able to deliver accurate tracking of actual emissions and utilize lower carbon emissions fuel.

9. Optimize shipment routing. The world and ocean transportation has changed significantly, with new key ports, intermodal connections, and strategies. Forward-hubbing—the strategic positioning of containers in key regional hubs such as Singapore and Antwerp—offers better delivery reliability to end customers. Barges and rail also provide lower carbon modes of access to the hinterland for greater connectivity optimization.

10. Partner with a Non-Vessel Operator (NVO). NVOs offer routing flexibility, optionality among carriers, and most importantly competitive rates to help your bottom line. Many BCOs benefited from their NVO partnerships during the pandemic. They have seen fit to increase the NVO’s role in managing ocean freight, allowing them to focus on their products and customers.

SOURCE: Andrew McLoone, Executive Director, PSA BDP

The post Managing Your Ocean Freight appeared first on Inbound Logistics.

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1. Be sure to read the fine print. Find the total cost of transportation and confirm what is fixed and what is variable. The ocean market is competitive and some rate offers may be too good to be true. Many BCOs are eager to recoup the higher ocean freight costs spent over the past two years, but it’s still important to understand the terms and conditions. Learn the applicability of future general rate increases and mechanisms for bunker adjustment factor price fluctuations.

2. Be a preferred shipper. Large volumes do afford buying power, but ocean carriers also desire regular, dependable BCOs on key routes. Make sure your operations deliver shipments prior to cutoffs (latest receipt date) and do the same for submitting your shipper’s letter of instructions (SLIs).

3. Encourage communication and documentation. These can be just as important as transportation when selecting ocean partners. How well does the carrier notify of delays? No one wants to find out about a delay after their customer is aware. Does the carrier issue timely and accurate bills of lading? The consequential costs of poor documentation can significantly outweigh the cost of transportation.

4. Use carrier scorecards. Scorecards are an effective tool to objectively review data when assessing performance under service level agreements. Carrier scorecards provide a quality framework to collaborate on continuous improvement opportunities.

5. Do not put all your eggs in one basket. Many BCOs learned the importance of supply chain resilience the hard way over the past few years. Mitigate risk with carrier selection, rate agreement type, and routings.

6. Stay hyper-vigilant on transit times. One ocean shipping alliance has announced its break-up and others may follow suit. A route that was historically direct from point A to point B may move in the future via transshipment or feeder. If you use a transit time in your enterprise resource planner (ERP) as a delivery-to-promise date for a customer, routinely review the service changes to make sure the confirmed customer ETA is attainable.

7. Reduce your lead times. Similar to transit time, the current state of overcapacity in the ocean market allows BCOs to reduce overall cycle time from order to cash. Lead times were as high as six weeks during the pandemic due to equipment availability and vessel space. In today’s environment, BCOs should be able to cut that in half and perhaps even get on next week’s vessel.

8. Ship with green in mind. The day is quickly arriving for commercially viable green ocean transportation options, with many companies developing ambitious sustainability objectives. Many carriers offer different “greener” services, but BCOs should carefully examine these offerings to partner with providers that are able to deliver accurate tracking of actual emissions and utilize lower carbon emissions fuel.

9. Optimize shipment routing. The world and ocean transportation has changed significantly, with new key ports, intermodal connections, and strategies. Forward-hubbing—the strategic positioning of containers in key regional hubs such as Singapore and Antwerp—offers better delivery reliability to end customers. Barges and rail also provide lower carbon modes of access to the hinterland for greater connectivity optimization.

10. Partner with a Non-Vessel Operator (NVO). NVOs offer routing flexibility, optionality among carriers, and most importantly competitive rates to help your bottom line. Many BCOs benefited from their NVO partnerships during the pandemic. They have seen fit to increase the NVO’s role in managing ocean freight, allowing them to focus on their products and customers.

SOURCE: Andrew McLoone, Executive Director, PSA BDP

The post Managing Your Ocean Freight appeared first on Inbound Logistics.

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Future-Proof Your Supply Chain https://www.inboundlogistics.com/articles/future-proof-your-supply-chain/ Mon, 22 May 2023 18:57:05 +0000 https://www.inboundlogistics.com/?post_type=articles&p=36752 1. CONSIDER NEW INNOVATION AND IDEAS. Peak season is an opportunity to demonstrate the value that you and your team contribute to your business every year. Therefore, gain advantage by being open and receptive to new innovations and ideas that can optimize operations and better manage peak seasonality fluctuations.

2. UTILIZE THE INTERIM TIME BETWEEN “PEAKS” FOR OPTIMIZATION. Effectively manage the time between peak periods for review, consideration, and improvement in order to future-proof operations before the next peak season.

3. FINE-TUNE STAKEHOLDER RELATIONSHIPS. Ask everyone from vendors and manufacturing to supply chain management, carriers, brokers, and truckers this question: “Who are you in business with and why?” Need to review and understand advantages, disadvantages, successes, failures, concerns, potential ongoing problems? Address areas of concern and work to eliminate any unaddressed weaknesses or issues before the next peak season.

4. CREATE A PEAK SEASON PLAN. Your plan ought to be an ever-evolving document that specifies what you are expected to deliver—when, where, why, and how much. Put it all together in a well-organized document that everyone involved understands.

5. ESTABLISH EXPECTATIONS AND DELIVERABLES. Don’t draft the operational plan separately. In order to have an action plan that leads to positive outcomes, clear expectations, responsibilities, and deliverables need to be in place after the plan is finalized.

6. CONCENTRATE ON PLAN EXECUTION WITH AGREED ALIGNMENTS. Gather stakeholders from the outset to ensure that no one is confused about the immediate objectives of the plan. Prior to deployment, ensure that it is formalized with secure sign-offs from all stakeholders.

7. BOLSTER DAILY STAKEHOLDER COMMUNICATIONS. Ensure that all stakeholders are kept up-to-date on how things are progressing daily, from the time the draft is completed to the conclusion of the peak season. Also create a simple dashboard that provides all concerned with needed callouts. And schedule regular conference calls with stakeholders to discuss relevant matters and address those issues promptly.

8. RELY ON ALTERNATIVE RESOURCES AS BACK-UP. The best laid plans will always encounter issues that can range from the departure of a key staff member to a supplier not being able to deliver in full. It’s always a good idea to have a backup plan and remain “open for business” with alternative providers.

9. INTEGRATE EXCEPTION MANAGEMENT. It is frequently thought that this is difficult to achieve, but if you get ahead of the process with your plan, your peak season should arrive at a point where everything is functioning well and the only issues that arise should be exceptions. If you lay the groundwork, you will have created the space to solve the inevitable challenges by implementing a well-thought-out plan that puts the majority of the increased peak workload on autopilot.

10. REMAIN FOCUSED ON BOTTOM-LINE DELIVERABLES. As you prepare and implement the plan during peak season, remember to ask yourself if any new matter you have been asked to assist with or develop is as critical as what you’ve been asked to accomplish during peak. Be comfortable with declining new commitments or projects that might prevent you from meeting your peak season goals.

SOURCE: Richard Kohn, Director, Global Logistics & Optimization, SeaCube Container Leasing Ltd.

The post Future-Proof Your Supply Chain appeared first on Inbound Logistics.

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1. CONSIDER NEW INNOVATION AND IDEAS. Peak season is an opportunity to demonstrate the value that you and your team contribute to your business every year. Therefore, gain advantage by being open and receptive to new innovations and ideas that can optimize operations and better manage peak seasonality fluctuations.

2. UTILIZE THE INTERIM TIME BETWEEN “PEAKS” FOR OPTIMIZATION. Effectively manage the time between peak periods for review, consideration, and improvement in order to future-proof operations before the next peak season.

3. FINE-TUNE STAKEHOLDER RELATIONSHIPS. Ask everyone from vendors and manufacturing to supply chain management, carriers, brokers, and truckers this question: “Who are you in business with and why?” Need to review and understand advantages, disadvantages, successes, failures, concerns, potential ongoing problems? Address areas of concern and work to eliminate any unaddressed weaknesses or issues before the next peak season.

4. CREATE A PEAK SEASON PLAN. Your plan ought to be an ever-evolving document that specifies what you are expected to deliver—when, where, why, and how much. Put it all together in a well-organized document that everyone involved understands.

5. ESTABLISH EXPECTATIONS AND DELIVERABLES. Don’t draft the operational plan separately. In order to have an action plan that leads to positive outcomes, clear expectations, responsibilities, and deliverables need to be in place after the plan is finalized.

6. CONCENTRATE ON PLAN EXECUTION WITH AGREED ALIGNMENTS. Gather stakeholders from the outset to ensure that no one is confused about the immediate objectives of the plan. Prior to deployment, ensure that it is formalized with secure sign-offs from all stakeholders.

7. BOLSTER DAILY STAKEHOLDER COMMUNICATIONS. Ensure that all stakeholders are kept up-to-date on how things are progressing daily, from the time the draft is completed to the conclusion of the peak season. Also create a simple dashboard that provides all concerned with needed callouts. And schedule regular conference calls with stakeholders to discuss relevant matters and address those issues promptly.

8. RELY ON ALTERNATIVE RESOURCES AS BACK-UP. The best laid plans will always encounter issues that can range from the departure of a key staff member to a supplier not being able to deliver in full. It’s always a good idea to have a backup plan and remain “open for business” with alternative providers.

9. INTEGRATE EXCEPTION MANAGEMENT. It is frequently thought that this is difficult to achieve, but if you get ahead of the process with your plan, your peak season should arrive at a point where everything is functioning well and the only issues that arise should be exceptions. If you lay the groundwork, you will have created the space to solve the inevitable challenges by implementing a well-thought-out plan that puts the majority of the increased peak workload on autopilot.

10. REMAIN FOCUSED ON BOTTOM-LINE DELIVERABLES. As you prepare and implement the plan during peak season, remember to ask yourself if any new matter you have been asked to assist with or develop is as critical as what you’ve been asked to accomplish during peak. Be comfortable with declining new commitments or projects that might prevent you from meeting your peak season goals.

SOURCE: Richard Kohn, Director, Global Logistics & Optimization, SeaCube Container Leasing Ltd.

The post Future-Proof Your Supply Chain appeared first on Inbound Logistics.

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