The FLSA is the federal law that governs crucial aspects of most employment relationships, including minimum wage and working conditions. The FLSA’s applicability turns on whether a worker is considered an employee or an independent contractor, and being able to structure the relationship with certainty is vital to the worker, employer, and the logistics sector as a whole.

Those who decide to operate as an independent contractor make this choice to enjoy autonomy and flexibility. The relationship is typically characterized by freedom to set their own schedule and to generate/risk a profit or loss.

Contrarily, employees typically work according to the employer’s schedule and receive a salary regardless of how the business performs. Each receives different benefits depending on how they choose to order their lives.

The new rule potentially disrupts the ability of workers to choose which economic model to provide services under, as well as making employers revisit long-standing arrangements and consider whether the new classification rules alter the model that operated successfully for many years.

Ripple Effects

The ripple effects of these changes will also impact logistics and the U.S. economy. The marketplace relies heavily on the flexibility and efficiency of independent contractors. Third-party logistics providers, brokers, and motor carriers depend significantly on these workers to meet the demands of their operations. The prospect of reclassifying these vital contributors as employees threatens to disrupt an already fragile marketplace and supply chain.

There is an inherent balancing act between safeguarding workers’ rights, respecting an individual’s freedom to choose their own economic path, and finding a balance that promotes marketplace efficiency. Policymakers, workers, businesses, and labor advocates must collaboratively address the challenges this ongoing debate poses.

For independent contractors, freedom to choose one’s economic destiny, clarity in classification, and clear-cut labor protections are critical components of any solution.

Finding a Resolution

Although the Department of Labor has issued its final ruling, unanswered questions remain: How will the DoL interpret this rule? Will the courts let it stand? While we wait for these questions to be resolved, we must continue to advocate for a resolution of the independent contractor versus employee dilemma. It’s a resolution that requires thoughtful dialogue, legislative action, and perhaps a reevaluation of our employment paradigms.

Compromise can be found, but the solution must be one that ensures the continued prosperity of our industry and supply chain business model.

The post The Independent Contractors Rule Raises More Questions than Answers appeared first on Inbound Logistics.

While there are many technologies to evaluate, two in particular should rise to the top of the list for potential investment: Actionable AI and supply chain integrated services. These technologies will have the greatest impact on the transportation function.

Actionable AI. The impact of actionable AI on transportation continues to grow exponentially in both scope of impact and importance.

For logistics leaders in charge of transportation, utilizing actionable AI provides information that drives the decision-making process that avoids disruptions and optimizes end-to-end transportation financial and service performance.

Logistics leaders also can use actionable AI to predict capacity demand, manage inventory movements, and optimize transportation asset and labor utilization, among other benefits.

For example, using AI, routing technologies can consider the dwell time spent at a stop, combined with historical data, to better calculate delivery time windows and, consequently, the optimization of routes.

It is also important to note that dwell time not only affects route optimization, but is a significant cost component for carriers, and therefore affects the freight rates they charge shippers.

Additionally, AI can improve the accuracy of measuring transportation sustainability by predicting emissions output based on data from traffic patterns that affect shipper and carrier carbon footprints. This use case can help reduce the risk of companies missing their carbon emission targets due to inaccurate data and collection methodologies.

Supply chain integration services. Supply chain integration services (SCIS) have the ability to elevate the role of transportation integration from a tactical, execution-centric and technical view of system interoperability to a strategy-led vision of a more interconnected world.

For logistics leaders in charge of transportation, the opportunity here is to create a comprehensive approach to the integration of different functions, processes, and stakeholders to optimize operations, reduce costs, enhance visibility and improve overall performance. The goal is to create a seamless flow of goods, supported by real-time data, from production to final delivery.

In short, SCIS could enable transportation operations to realize end-to-end performance advancement up to levels not possible with siloed, manual processes.

For example, integrating all inbound and outbound transportation data into a single real-time visibility technology platform can improve overall supply chain efficiency among internal supply chain partners and external suppliers. Visibility to inventory on a common platform can significantly improve end-to-end supply chain performance.

Advances in transportation technology do not end with these two trends. Other trends gaining in importance in the transportation technology space include composable applications, visibility, automation, and carbon emission calculation and accounting.

It is critical for logistics leaders to understand the differentiated, domain-specific impacts of the most innovative technologies and trends, as well as to obtain background information on maturing technologies, practices, and processes.

The post What Tech Trends Should You Prioritize? appeared first on Inbound Logistics.

You’re Walking a Tightrope But Who has the Net? This chapter explores risk management—the balancing of what we can control along the supply chain in the face of what we cannot control. I will start by quoting Burns’ 1785 warning about best-laid plans; and, after a 240-year romp, end off in 2025 with where we are post-COVID and pre-net zero 2050.

–Dr. Darren Prokop
Professor Emeritus of Logistics,
College of Business & Public Policy
University of Alaska Anchorage

Automation—Why It’s All About the Good Data. Managing supply chains in 2025 will be all about automation. The longest chapter would explore the limitations of the hype and discuss why a focus on the data building blocks is core for successful automated supply chain system deployments.

–Brian Krejcarek
Co-founder and CEO
Reelables

Not So Happy Returns? With the return of physical retail and record-setting online commerce, returns could hit an all-time high. Building agile inventory management through artificial intelligence-based assortment and allocation planning, fulfillment, returns, and pricing based on real-time data will be crucial for retailers to stay competitive. Taking this approach, retailers can optimize their inventory position without sacrificing margin.

–Inna Kuznetsova
CEO
ToolsGroup

Prevailing with Alternatives. The focal point is adeptly handling and capitalizing on alternatives—a top supply chain strategy. Spanning across raw materials, production, logistics, freight contracts, and 3PL providers, the emphasis lies in managing these alternatives for enhanced flexibility, strategic negotiation leverage, and comprehensive risk mitigation.

–Chris Dodd
Head of Operations
Gelmart International

True Partnership. This would be even more essential in 2025. You see supply chain cycles happen every 4-5 years; this puts us due for another spike in rates and lack of capacity in 2025 and 2026, for both land and ocean movements. I’ve seen this time and time again in my 26+ years in this industry.
Many supply chain managers choose the lowest cost carrier that doesn’t have crappy service. When the supply chain shifts, these carriers immediately look for the highest paying freight or tell you their new high rates are effective tomorrow. What kind of partnership is that?

Managing supply chains is about finding true partnerships that will be with you when the (well, you know what fits here) hits the fan, and in turn, you will be there for them when your freight volumes dip.

–Mitch Luciano
CEO
Trailer Bridge

People Are the Missing Piece. While technologies allow practitioners to rethink supply chain management and add value from data, the real value comes when people—the practitioners themselves—effectively leverage these tools. The emphasis is on developing progressive leaders, the key driver of success.

–Omer Abdullah
Co-Founder
The Smart Cube

India, the New China? As companies diversify manufacturing away from China to build more resilient supply chains, India is one of the primary options for friendshoring as it offers low geopolitical conflict and a low cost base. However, the lack of infrastructure support poses another significant challenge that takes time and resources to address.

–John Donigian
Senior Director,
Supply Chain Strategy
Moody’s Analytics

The Bottom Line of Sustainability. Before long, sustainability will be just as critical as pricing to our partners. We’re teetering on that tipping point now. But we need to internalize that sustainability isn’t illusory—it’s measurable, actionable, and a close cousin to efficiency—i.e., it has power over your bottom line.

–Glenn Riggs
Chief Strategy Officer
Odyssey Logistics

Preserving the Human Element in an Automated Supply Chain. Despite the increasing use of automation in the automotive supply chain, the human touch is significant in a service-focused industry. Regardless of how technologically advanced the process becomes, personal relationships hold immense value that benefits the end user experience.

–Mike Trudeau
Executive Vice President,
Business Development
Montway Auto Transport

Breaking the Brittle. Learning lessons to identify hollow supply chains and blind spots in critical component supply. Taking the lessons of the greatest disruption of the past 70 years to apply to steady state operations to better identify and manage risks to build resiliency.

–Joe Adamski
Senior Director
ProcureAbility

Navigating the Digital Labyrinth. The chapter would emphasize the merging of technology with tangible processes, crucial for orchestrating the advanced, interconnected supply chains of 2025. This is vital due to its complexity and impact on future supply chain resilience and efficiency.

–Spencer Steliga
Founder and CEO
shuddl

Adaptive Resilience: Navigating Global Disruptions. The chapter explores strategies to address unforeseen challenges in the evolving supply chain landscape. With a proactive approach to risk management and technological integration, businesses can thrive despite uncertainties.

–George Maksimenko
CEO
Adexin

Honey, I Shrunk the EOQs! Anticipate a decline in the economic order quantity (EOQ) for many SKUs in 2024. This shift will be driven both by evolving demand patterns and a proliferation of retail channels by which inventory is allocated (resulting in lower expected demand for any given stock-keeping location) and high carrying costs from stubbornly high interest rates.

While we expect some relief on interest rates at some point, demand and inventory planning aren’t going to get any easier. The winners will be those that build flexibility and agility into their supply chains and transportation strategies.

–Chris Pickett
COO
Flock Freight

Near and Onshore Manufacturing Resurges. With wars and trade disruption, we’re seeing a decline in global manufacturing. This makes near and onshore manufacturing economically favorable, which is great for our planet and sustainable commerce startups. Cities, universities, and startups are reclaiming manufacturing for the United States through collaborative multi-sector approaches built around advanced sustainable manufacturing.

–Al Sambar
General Partner
XRC Ventures

Hype to Reality: The Real Impact of AI in Supply Chain. The chapter would focus on the tangible changes that AI brings to analytics and decision-making, while addressing the hype of AI being the magical solution to all problems.

–Mingshu Bates
Chief Analytics Officer
AFS Logistics

Welcoming Our New AI Overlords: Harnessing AI for Good. This chapter delves into how to effectively integrate artificial intelligence into supply chain management. AI systems will be sufficiently advanced by this point to intelligently make supply chain decisions, and humans will need a guide for how to oversee and steer them.

–Tony Pelli
Practice Director,
Security and Resilience
BSI

The Evolution of AI in Warehouses: Actuation, Digitization to Optimization. The industry needs to know that applying AI to warehouses and supply chains has become significantly easier in the last couple of decades with the proliferation of technology. AI adoption costs have reduced significantly, and the ROI has increased. It’s important to educate supply chain professionals on this evolution so they can reap the benefits of AI in their warehouses.

–Sankalp Arora
CEO & Co-Founder
Gather AI

Harnessing Data to Drive Better Supply Chain Decisions. The chapter—and pretty much every chapter—would be about data visibility and informed decision-making. Leveraging data throughout your organization, in all of your supply chain and related processes will be the most important task for years to come.

–Josh Dunham
CEO and Co-founder
Reveel

Knowing Your Supply Chain: From Vendors to Bottlenecks. As we’ve seen from global pandemics, to wars across the world, it is critical to know your vendors, their capabilities and back-up plans to unforeseen issues. Knowing your business, partners and capabilities, enables you to act with resilience.

–Aaron Galer
Senior Vice President,
Strategic Partners
Arrive Logistics

Bringing the Supply Chain Back to the United States. Following the COVID-19 pandemic, the United States has been reeling from supply chain issues involving sourcing, manufacturing, and transportation, driving the need for more control. Plus, recent national security issues have created concerns about reliance on other countries for critical materials and parts.

–Dave Snider
Vice President of Marketing
Advantive

Embracing Robots to Minimize Climate Disruptions. As warehouses and distribution centers struggle to remain productive amid extreme weather events, a promising solution is the widespread adoption of robots. Take the humanoid robot, Digit for example—it was designed to handle dangerous tasks at warehouses such as unloading boxes from a tractor-trailer in 100-plus-degree heat. By leveraging robots, employees are free from repetitive or challenging labor and can focus on higher-value tasks that require human action.

–Brandon Black
SVP and General Manager
Ivanti Wavelink

Elements of Supply Chain Integrations: People, Process and Technology. I would focus on evolving logistics technologies and supply chain players’ adoption of these technologies. This topic constantly impacts organizations’ revenue generation, cost containment, and human capital management. The ubiquity of new platforms and applications creates an ongoing dilemma for organizations due to the need to integrate them with existing resources.

–Raziel Bravo
Senior Vice President of Strategic Management Office
GEODIS

Plan for Disruption. In 2023 alone major supply chain companies were involved in bankruptcies, system cyberattacks, and a possible strike. Prepare for disruptions.

–Micheal McDonagh
President of Parcel
AFS Logistics

GenAI’s Revolutionary Impact on Global Sourcing. The chapter would explain the radical change that AI has introduced. Most repetitive tasks have been automated and GenAI is guiding better decisions at every stage. Supply chain managers now oversee a control tower with a full view of their supply chain to the Nth level.

–Eric Linxwiler
Senior Vice President
TradeBeyond

Beyond Paperwork: The AI-Driven Shift Toward Intelligent Documentation and Routing. The massive amounts of data we now collect will deliver actionable value, transforming day-to-day efficiency. Artificial intelligence will play a pivotal role, with generative AI being used in exciting new use cases, dramatically reducing manual paperwork and making intelligent routing decisions.

–Kristjan Lillemets
VP Product
Magaya

A Journey from Descriptive Analytics to Generative AI: How Artificial Intelligence Enables Decision Support to Improve Supply Chains Understanding AI’s evolution from descriptive to predictive analytics will help improve supply chain management, simplify applying analytics at the edge, accelerate speed, and improve decisions in real time.

–Andre Luecht
Global Strategy Lead,
Transportation, Logistics and Warehouse
Zebra Technologies

Impact & ROI of AI in Supply Chain. Through predictive analytics, AI hones logistics, slashing transportation costs by optimizing routes and schedules. Supplier management benefits from AI’s data-driven insights, ensuring optimal choices and bolstering relationships. AI fortifies product integrity, efficiency, and customer satisfaction, thus cementing its indisputable ROI.

–Abishek Bhat
Vice President,
Business Development
Trigent Software

Managing the Supply Chain with AI. AI data can enable real-time processes for demand forecasting, inventory optimization, new product introductions, network design, and other business functions. AI can help businesses proactively manage the expanding value chain to stay ahead of competition and become agile enterprises.

–Stephen Dombroski
Director, Consumer Markets
QAD Inc.

Balance Service Quality and Cost While Planning for Uncertainty. We’re coming off one of the greatest freight cycles post-COVID, shippers understand there’s no “normal” and they must always be prepared for unplanned volatility. And now the market can inflect at a faster rate, constantly testing the strength of shippers’ support system.

–Jamie Harris
CFO
RXO

Connecting Digital Supply Chains. I’d explore how tools like AI forecasting can enhance decision-making. Supply chains have evolved into dynamic, interconnected systems, challenging traditional one-way thinking. It’s crucial to recognize them as an interconnected system for optimal planning, acknowledging their non-linear, ever-changing nature.

–Nick De Klerk
Associate Director, Supply Chain
TMX Transform

Interested in participating in upcoming Good Questions? Please feel free to share your answers here to upcoming prompts: Inbound Logistics Good Question

The post You’re Writing a Book About How to Manage Supply Chains in 2025. What’s the Longest Chapter? appeared first on Inbound Logistics.

Most of the existing examples are found in the middle mile—the warehouse and DCs—moving ingredients and finished consumer products toward the final demand point.

Several leading companies have taken shots at automating the final mile with drone deliveries. Amazon Air, DHL, FedEx, UPS, and Walmart are all testing the waters with drone delivery of products, but not necessarily just food. Robot final mile is also being tested in select urban areas.

But those automated bot delivery attempts have hit some speed bumps. Drone and bot delivery methods are in their infancy and may be successful in the  future, but today they can’t compete with something much better—human-driven DoorDash, Instacart, and Uber Eats last-mile food delivery.

Now comes a new alliance between two great brands—John Deere, with a long and storied 188-year history in food production, and Elon Musk, who is creating history with Starlink and everything else, it seems.

Deere has a long history in farm automation. How is this different? What’s the end game? For the first time, it brings web tone automation capabilities to rural internet dead zones, lighting up the first mile or starting point in the food supply chain. Aaron Wetzel, vice president of production for Deere, says it best: “Farmers must complete tasks within extremely short windows of time. This requires executing incredibly precise production steps while coordinating between machines and managing machine performance. Each of these areas are enhanced through connectivity, making the entire operation more efficient, effective, and profitable.”

The possibilities are exciting. Enterprise automation from low earth orbit, to rural farms both large and small, in the United States and around the world. Super accurate maps of all available arable fields.

Increased efficiency and sustainability. Better water and fertilizer management. Then there are the seasonal labor shortage challenges farms must contend with. Satellite automation can help there with all of that and more.

Imagine robotic combines, seeders, plows, fertilizers, or anything a tractor can pull. And most importantly for supply chain planning purposes, 10-ton harvesters like sentient bugs picking the fields clean and pushing advice to demand points around the globe.

The offline start point of the food supply chain is coming online.

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2023 allowed many companies to take a breath and return to more realistic inventory levels. As consumer spending eased, companies were able to eliminate expensive stockpiles of goods, which enabled logistics companies to evaluate their operations and make adjustments if necessary. Instead of merely reacting to supply chain crises, many logistics companies took the time to plan how they would adjust to the post-pandemic world.

As a result, 2024 will be less about crisis management and more about balancing how logistics operations were done before the pandemic and incorporating lessons learned during that time.

Here are four trends to expect:

• Companies may be hesitant to invest significant money in building their own logistics operations.

While we appear to be past the worst of the interest-rate hikes, many companies are hesitant to be too aggressive in putting together growth plans for their business. What that means practically is that they will be less likely to invest long-term capital in operating their warehouses.

For the logistics industry, that means there will be an additional need for warehousing and logistics providers to fill in the gaps. After all, the goods still need to be stored somewhere, and if the companies aren’t doing it themselves, they will look to warehousing and logistics suppliers for help.

• Companies will be looking for flexible warehousing options.

The Federal Reserve has signaled it will likely reduce interest rates in the coming months, which should put the economy back on a growth trajectory. As we all understand, however, jump-starting an economy isn’t always a straight line upward. There are bound to be fits and starts, and companies will be looking for flexible warehousing solutions that allow them to expand or contract as market conditions dictate. 

• More companies will share warehouse space with other non-competing companies.

In the past, corporations have wanted to own their supply chain resources, but given the constrained economic conditions, this no longer makes sense for everyone. In the past several years, I have seen more collaboration than ever before between non-competing companies, which are starting to pool their resources to acquire warehouse space. 

Many collaborative efforts will lead to more opportunities to outsource these warehousing needs to warehousing and logistics providers. If 12 different companies are trying to send products through the same pipeline, sharing resources makes much more sense—but warehousing and logistics companies will have to be smart about how they approach this new reality.

Providing short-term, flexible contracts that don’t require significant financial outlays upfront will be the hallmark of companies that succeed in this environment.

• More automation and electrification are coming—but don’t forget the basics.

More warehousing and logistics firms will be striving to automate many of their internal processes, such as employing self-driving forklifts and automated pick-and-pack machines. Don’t forget, however, that automation will only take you so far.

Make sure your employees are focused on providing the highest levels of customer service, and keep your facilities functional at all times. In a world where the human touch seems to be increasingly an afterthought, you can stand out from your competitors by ensuring your basics are buttoned up.

The driving force behind these trends is consumers, who are telling companies they are willing to pay for faster and more efficient delivery. There are opportunities for innovative and resourceful warehousing and logistics providers to capitalize on this need to move goods more quickly than ever before.

The post 4 Things to Expect from Logistics Providers in 2024 appeared first on Inbound Logistics.

Logistics Refresher

Freight vs. Shipping

Technically speaking, freight is defined as the commercial transportation of goods, merchandise, or cargo by air, land, or sea. The term is generally used to refer to the transportation of goods in bulk.

Originally, the term “shipping” referred to the transportation of goods by…you guessed it, ship. Since the 15th century, shipping has evolved to encompass the transportation of any quantity of goods by air, land, or sea.

So, the main difference between freight and shipping is the former specifically refers to transportation in bulk—often enough to fill up an entire truck. And since shipping doesn’t necessarily involve a particular quantity of goods, anyone can ship something from one place to another.

Freight is mostly used by wholesalers, distributors, manufacturers, suppliers of raw materials, or any business that regularly ships large quantities of goods.

Additionally, freight services are often set up to handle fragile or sensitive cargo during long-distance shipments. The need for accommodations, such as temperature or humidity-controlled transportation, is more prevalent in freight customers who often ship their goods across great distances. These businesses often turn to freight forwarders who can help them navigate tedious processes like customs, documentation, or coordinating shipments across multiple modes of transportation.

Shipping is usually the preferred choice for any business that is transporting small quantities of goods to consumers or another business. Basically, if your items don’t require some sort of specialized handling, shipping is almost always the easier and more cost-effective option, especially in today’s convenience-driven economy.

A company that experiences extreme fluctuations in demand throughout the year might find it more cost-effective to use freight for bulk shipments during peak seasons and shipping for smaller deliveries during slower periods.

–Carl Wasinger, CEO & Founder, Smart Warehousing

Antifragile Supply Chain

An antifragile supply chain starts with the chief supply chain officer’s mindset. Rather than trying to keep uncertainty out of the supply chain, antifragile supply chains embrace uncertainty with the objective of learning, evolving, and adapting their capabilities based on their improved knowledge of it.

–Tim Payne, Vice President Analyst, Gartner Supply Chain

2024 Ecommerce Word to Watch

Rom-commerce

A scene from rom-commerce series “Add to Heart.”

Walmart arranged a meet-cute between romantic comedy and social commerce with its holiday series “Add to Heart” in December 2023. Viewers can buy more than 330 items—from clothes and decor to luggage and food—while watching the 23 short episodes on TikTok, Roku, or YouTube.

Walmart’s shoppable commercial series aims to change American consumers’ lukewarm reception toward shoppable content, which is popular in China. In any case, social commerce—selling products directly on social media platforms—is one trend that’s gaining steam. Social commerce is anticipated to hit nearly $80 billion by 2025, or about 5% of all ecommerce purchases, according to research by McKinsey.

Polycrises

Organizations no longer have the luxury of planning for individual incidents. They must now prepare for multiple concurrent or cascading business disruptions. Some refer to this as “layered” crises, or “polycrises,” where the shocks are disparate, but they interact so that the whole is even more overwhelming than the sum of the parts.

–Frank Shultz, Founder and CEO, Infinite Blue

Humanoids

We’ll talk a lot about humanoid or human-form robots, but wide deployment in warehouses will remain elusive. In 2024, expect some splashy pilot projects and updates on Agility Robotics’ Digit (pictured) at work for Amazon.

Predictive ETA > Tracking Updates

You can spend a lot of money and devote a lot of staff time to checking on tracking updates without necessarily improving on-time delivery.

The most significant element of real-time visibility is the predictive ETA (estimated time of arrival). While knowing where your freight is at every point during transit is great, knowing whether the truck will arrive during the scheduled appointment window is what shippers and receivers plan for.

For retailers, the predictive ETA affects staffing and throughput at their warehouses, at their distribution and fulfillment centers, and at their stores.

–Noah Hoffman, Head of Retail Logistics, C.H. Robinson

Land Bridge

A land-based solution for trade flow restrictions or disruptions in ocean routes. For instance, Maersk started a land bridge or rail route across Panama to minimize service interruptions for customers amidst Panama Canal transit restrictions.

Flow center

Think warehouse but smaller and faster. Retailer Target coined this term to describe facilities that support nimble store replenishment. Using automation, flow centers break down shipments to replenish stores frequently with in-demand items in smaller quantities.

This allows Target stores to hold lower levels of backroom inventory. Meanwhile goods ordered online are packaged at stores and sent to small sortation centers, which batch them by neighborhood for final delivery to customers.

In short, flow centers can help retailers feed the flow—the flow of consumer demand, that is.

The post What’s the Word? The Language of Logistics appeared first on Inbound Logistics.

1. Humanizes complex processes. Empathetic communication ensures that decisions consider both the emotional and practical facets of supply chain stakeholders, from vendors, carriers, and brokerages, to shippers and end users.

2. Builds trust. Supply chain mishaps are par for the course as they always will be. Customers value transparency and acknowledgment of their emotions. When they feel genuinely understood, they’re more forgiving and trusting.

3. Boosts morale and productivity. Empathetic leaders foster environments where employees feel valued. In sectors like SCM, where teamwork is vital, this boosts problem-solving and operational fluidity.

4. Enhances customer loyalty. Loyalty is built on emotional connections. An empathetic approach can transform a one-time customer into a loyal advocate.

Consider a business that couldn’t deliver essential automotive parts on time due to a port strike or truck accident. A straightforward notification—“we will be late to this delivery”—might relay the delay.

But an empathetic approach would say, “We recognize the potential impact this delay might have on your production line. We’re exploring alternative routes and will keep you updated. We apologize and will keep in contact every 30 minutes with updates.” This recognizes the client’s potential challenge and offers assurance.

Turning Customers into Advocates

Ecommerce order fulfillment glitches are inevitable. Consider a customer, Mark, who experiences a delivery delay.

Instead of a standard apology, a company representative, Sarah, reaches out with empathy. She acknowledges Mark’s frustration and empathizes with his anticipation.

Sarah not only apologizes but offers Mark a discount on his next purchase as a goodwill gesture. She explains the challenges the company faced and its commitment to prevent such delays in the future. Mark, initially upset, feels valued and understood as a customer.

This empathetic communication doesn’t just resolve the immediate issue; it turns Mark into a loyal advocate. He shares his positive experience, demonstrating how empathetic communication can transform a potential detractor into a long-term brand promoter.

Fostering a Sense of Trust

The test of true leadership lies in its ability to significantly enhance employee engagement and retention. When leaders genuinely understand and acknowledge their team’s challenges, concerns, and aspirations, employees feel valued and heard.

Empathetic communication fosters a sense of belonging and trust, creating a work environment where employees are more motivated and committed to their roles. In the often stressful world of supply chain management, this emotional support is invaluable.

Empathy doesn’t mean sacrificing operational efficacy. It means recognizing emotions, genuinely addressing concerns, and fostering robust, trust-based relationships. In a digital SCM world, placing importance on the power of empathy isn’t just recommended; it’s essential.

The post Communicating With Empathy appeared first on Inbound Logistics.

The ongoing conflict between Russia and Ukraine is emblematic of an increasingly volatile geopolitical moment—the kind of global environment that suggests risks around every corner and few things that can be considered truly stable.

This is the world that logistics managers must navigate. Businesses are increasingly global—their suppliers especially so. This leaves them even more susceptible to the risks of data security, privacy, and fraud.

This is in part because a more sprawling global network of suppliers requires more efficient and detailed management processes at that scale, but also because regulations vary from country to country and region to region, and staying in line with them all is an incredibly complex task.

Those regulations are not done being implemented, either. Just look at the Uyghur Forced Labor Prevention Act, the German Supply Chain Due Diligence Act, and the EU’s Corporate Sustainability Reporting Directive. Each of these, and many more, are currently or will soon require companies to take steps to limit ESG—environmental, social, and governance—risks and document these efforts.

These aim to reduce carbon emissions, increase sustainability, and eliminate modern slavery around the world by prohibiting trade with those who are engaged in or selling products made from forced labor.

Compliance Issues on the Rise

The likelihood of compliance issues for unprepared companies is rapidly increasing, whether or not they are global in nature. There can be incredibly damaging consequences for businesses that don’t know how to navigate the rapidly shifting regulatory landscape; one act of noncompliance averages about $14 million between fines, penalties, and other costs.

Companies that are taking steps to build out their supply chain management tools, particularly with regard to vendor-facing technologies, will have an advantage when it comes to adapting to new global regulations.

This is because compliance risk is just the latest in a long string of risks that are best mitigated by visibility into suppliers, easier integration between tools and communication among parties, and the ability for data to be easily and securely accessed across a network of systems.

Supply chain managers are turning to automation that allows for full data capture during onboarding and visibility into vendors at a glance. This can allow for quick checks on which suppliers are subject to a given regulation, show if they’ve provided the required data the company needs to report, and prompt them with a timely reminder to provide this information when they fall behind.

If vendors don’t do their part, it will be easy for supply chain managers to see what they need to become compliant or drop them in time to avoid penalties.

Properly monitoring for regulatory changes in any region a company does business in is more important than ever. Building the capability to swiftly adapt to changes in that environment is a competitive edge that only companies committed to compliance will enjoy.

The post Are You Prepared for New Regulations? appeared first on Inbound Logistics.

Keep your cool. “Circumstances can turn on a dime and require not only quick, but also clear thinking when it feels like all options are lost. Those with composure—who can collect themselves, stay calm, and rely on the processes and tools they’ve put into place to handle the unexpected—will excel.” —Tony Harris, SAP  

Stay resilient and mentally tough. “Changes and setbacks are inevitable. It’s important to know how to anticipate, deal with, and recover from those challenges. Resilience requires the commitment to stay the course, keep a positive attitude, and forge a path even when the future is uncertain.” —Heidi Ratti, RXO

Have empathy. Seeing and listening through the eyes and ears of your supply chain partners speeds the pace of negotiations, trust building, and handling crises. —Dr. Darren Prokop, University of Alaska

Broaden your perspective to have empathy.“When I can shift my perspective to the point of view of my customers, stakeholders, or employees, that is how I can understand and meet their expectations. And that helps to build trusted, sustainable relationships that position you for success.” —Dave Anderson, TA Services 

Check and double check. “Checking to see what shutdowns are going on all over your destination cities and countries is the most underrated thing.” —Ronnie T. Evans, Oil States Industries 

Be curious. This involves channeling relentless curiosity into problems, having meaningful dialogues with users—warehouse managers, last-mile delivery folks, or suppliers across the globe—and implementing hardware and/or software solutions that solve those problems.” —Jason Hehman, TXI

Approach problems creatively. “Consider coloring outside the lines when problems happen. People think managing a supply chain is analytical and focused on managing the minutiae. And it is, at times. But when problems occur, the individual who can think outside the box and devise innovative solutions will be the unsung hero.” —Joe Adamski, ProcureAbility  

Avoid analysis paralysis. “Quickly analyze short- and long-term impacts. Over-analyzing wastes time and money. In operational excellence models, it’s called over-processing. To analyze quickly, use data and your inner experience circle. Ask for full opinions and full judgment, then go. Stop wasting time. —Ann Marie Jonkman, Blue Yonder 

Keeping these skills top of mind will help shake off the doldrums of late and stage for growth in the year ahead.

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