Q. Automation in the fulfillment center landscape is erupting at incredible speed. What’s driving it?

A. There have been huge advancements in robotics and automation over the past decade. The same technology we’re seeing in self-driving cars has entered our industry. Similarly, venture capitalists have fueled the growth by investing in emerging robotic companies and technologies that specialize in fulfillment. When coupling the new technologies not previously available with the continued need to mitigate labor woes in the fulfillment center, the climate is ripe for massive growth.

Q. How do you view the future of fulfillment?

A. We will continue to see new technologies emerge at an aggressive pace; however their focus will be more specific. Similarly, their span of expertise will remain specific to a function in the overall process. Success will be determined not so much by the automation or technology itself but how well they’re integrated into an operation. Those who are investing in a scalable and flexible workflow software platform will achieve success earlier than others.

Q. How is VARGO® leveraging automation and software to change the game for its clients?

A. The key to applying new levels of automation in the fulfillment center is to take a holistic approach and start with the basics of redefining the full operational process. Particular attention must be paid to how all resources (both machines and people) interact with the new processes.

At VARGO® we start with the end in mind and work our way backward, defining how people and automation will work together to accomplish the highest levels of efficiency. Our largest differential in how we select and integrate automation is our COFE® Warehouse Execution System (WES). We have successfully doubled productivity and doubled throughput simply by using our WES and capitalizing on automation capacity.

Q. What opportunities do you see with these new automation technologies?

A. Some brilliant people are behind these new technologies and that is why their products are making a positive impact. However, we see a large gap in how they are applied. We need real-world experience from the operators and supervisors in the fulfillment center. We need more focus on the entire operation, not the silo where automation plays.

Q. What are some of the success factors VARGO® focuses on to measure your solutions?

A. With more and more silos of automation and managing labor around those silos, we look at the overall building flow. We often see a 2x multiplier in the efficiency of manual productivity. We also benchmark the utilization of machines, and we look to achieve 90% or better of their full capability. At the end of the day, we do more with less. Automation often comes at a price so making efficient use of it results in requiring less of it. To date our solutions set standards on manual labor rates, efficiency of automation, and have some of the lowest order cycle times in the industry.

The post Fulfillment Automation: What’s Driving Adoption and How It’s Changing Operations appeared first on Inbound Logistics.

In recent years, supply chain leaders have recognized the crucial role of innovating data collection and utilization. Despite notable technological advances, the logistics industry still predominantly generates unstructured data across its operations, estimated at 80 to 90%.

Leveraging unstructured data from freight documents, including bills of lading (BOLs), provides valuable insights for anticipating customer needs, streamlining operations, and mitigating risks.

Extracting customer behavior patterns allows proactive adjustments to offerings while identifying supply chain inefficiencies, enhancing overall efficiency, and reducing costs. Unstructured data analysis uncovers potential risks, enabling early identification for implementing preventive measures and contingency plans against delays or issues with specific suppliers.

However, dealing with unstructured data brings inherent challenges. The sheer volume, lack of standardization, and varied formats make processing complex. Extracting meaningful insights demands advanced analytics tools, often expensive and intricate.

Security concerns arise as unstructured data may contain sensitive information, necessitating stringent measures for compliance with privacy regulations. Logistics professionals face information overload and integration complexities. Data quality, accuracy, and regulatory compliance require a robust technological infrastructure.

This resource-intensive process demands a commitment to advanced analytics and staying updated on technological advancements.

The Solution

DDC’s Auto-Extraction & Structuring harnesses the power of automated machine learning to unleash the power of unstructured data contained in freight documents. The Auto-Extraction & Structuring platform swiftly transforms raw data from freight documents such as BOLs, applying client rules and transmitting structured information via APIs within seconds.

This solution, designed to improve operational agility, smoothly integrates with DDC’s technology suite, which includes the innovative mobile data capture application, DDC Sync. Together, they contribute to driving innovation in freight and logistics.

The benefits are profound, addressing the challenge of consolidating diverse data sources and providing superior service through proactive shipment routing and accurate invoicing. This innovative solution increases profitability by streamlining processes, reducing errors, and fostering continuous improvement through intelligent learning with each document processed. With 80-90% of data in the industry being unstructured, DDC FPO is committed to alleviating this burden for clients, ensuring optimized performance.

Auto-Extraction & Structuring facilitates quick access to clean data for making faster and better business decisions and creates a pathway to boost profitability by minimizing overhead costs.

With an industry focus on digitization and competitiveness, DDC’s Auto-Extraction & Structuring solution ensures structured information reaches TMS and accounting systems promptly. The platform’s intelligent learning capabilities allow for ongoing refinement, increasing processing speed without human intervention.

As DDC FPO propels enterprise innovation in freight and logistics, the emphasis on data and analytics remains central, reinforcing the company’s commitment to providing unmatched operational dexterity.

To learn more:
ddcfpo.com
303-674-0681

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Carriers can also activate embargoes at their discretion, but it’s often necessary to impose an embargo to balance capacity during times of peak demand. That’s why it’s crucial to engage technology that provides comprehensive carrier information.

Freight embargoes are common when disruptions such as tight carrier capacity, severe weather, terminal repair or closure, geographic events, and other unforeseen incidents occur. Planned embargoes can be less disruptive if shippers know they are coming versus unplanned embargoes that don’t allow time for advanced planning.

Unplanned Freight Embargoes

The impacts of unplanned freight embargoes usually can’t be avoided. Sudden and unexpected embargoes force the supply chain to temporarily adjust to the strain on LTL carrier resources. Using logistics technology can bring much-needed visibility to the supply chain and help drive better decision-making during these challenging times.

Planned Freight Embargoes

In comparison, planned freight embargoes, such as those imposed during peak season, can be more easily navigated. The duration of planned freight embargoes is typically stated up front, though carriers can extend it if capacity hasn’t eased sufficiently. Knowing how long an embargo will continue helps shippers weather the disruption better—and communicate with their customers in advance.

Planned freight embargoes give shippers time to explore other lanes and understand the costs associated with newfound carriers. Just like unplanned embargoes, planned embargoes are aided by access to technology that can harness this information and make it visible to shippers.

Transit Alerts Aid Decision-Making

Having to manually search for carrier transit times and service details during a freight embargo is a time-consuming, frustrating, and arduous process. Access to accurate, comprehensive, up-to-date LTL transit details is invaluable. SMC³’s CarrierConnect® XL delivers this data, providing LTL transit times and LTL carrier service detail from more than 300 leading national, super-regional, and regional carriers across North America.

If a carrier indicates they must shut down in an area for terminal maintenance and other repairs, an alert goes out. Shippers are also alerted to terminal closures that aren’t due to repairs. Even large events occurring in certain geographic areas—Mardi Gras, for instance—will trigger an alert. A catch-all alert is sent for embargoes that don’t fall into the other categories.

Up-to-Date Carrier Details

With CarrierConnect XL and transit service alerts, shippers can future-proof their supply chains. This technology empowers carriers to manage embargoes and custom messaging for shippers at the terminal, city, or postal code level. It also allows carriers to adjust pickup dates and calculate estimated delivery dates based on optional embargo data.

The technology helps shippers make the most accurate routing decisions during a freight embargo. With CarrierConnect XL 3.0, dynamically updated carrier information can be accessed through either RESTful APIs or SOAP API messaging. When combined with SMC³’s RateWare® XL technology, CarrierConnect integrates carrier-specific points of service and transit times with rates to provide a holistic view of LTL pricing, transit times, and carrier services.

The post How to Future-Proof  Your Supply Chain from Freight Embargoes appeared first on Inbound Logistics.

Q. What are the benefits of predictive analytics?

A. Predictive analytics is a way of using data to make better decisions. It can help us improve our business performance, save money, and satisfy our customers. For example, we can use data to predict how much demand there will be for our products or services, how much capacity we need, how to manage our inventory, and how to avoid risks. We can also use data to offer more value to our customers, such as flexible pricing, tailored solutions, and timely communication.

Q. How do you leverage predictive analytics to gain a competitive edge in freight rate forecasting?

A. The key is to have good data. We need to collect data from different sources, such as routes, weather, fuel prices, the economy, and social media. We need to get data that is up-to-date, detailed, and accurate. Then, we need to use AI platforms and machine learning models that can process this data and find patterns and trends—allowing us to forecast the rates for the next few days as well as see the bigger picture.

Q. What are the limitations of traditional forecasting methods when applied to freight rates?

A. Traditional methods can be unreliable, using simple models or averages that don’t capture freight market complexity and variability. They can’t handle unexpected events, sudden changes in demand, or new regulations. We need agile and data-driven methods that can adapt to the changing conditions and reflect the reality of the freight industry.

Q. How do you leverage historical and real-time data in predictive analytics?

A. We use historical data to learn from the past, and real-time data to adjust to the present. We use advanced machine learning algorithms to analyze historical data, taking into account factors like seasons, demand cycles, and external influences. This helps us make informed predictions about future freight rates. We also use real-time data to constantly update our predictions. We integrate live information on market movements, fuel costs, world events, and other drivers that affect freight rates.

Q. How can we use freight rate forecasting to optimize our routing and network planning?

A. By knowing the future rates, we can plan ahead and make smart choices. We can negotiate contracts with carriers at the best times, and secure capacity at stable costs. We can also ensure timely deliveries for our clients. Moreover, we can use future rate forecasts to guide our strategic network planning. We can locate our facilities in the most cost-effective regions, and choose the most efficient transportation modes.

Q. How can we address the challenge of data privacy and security?

A. We need to be transparent and trustworthy. We need to protect our data and our clients’ data, and share only what is necessary and relevant. We can use secure and anonymous data sharing methods, such as aggregated reports and encrypted dashboards. We can also give clients control over what data they want to see and how they want to see it.

The post Leveraging Predictive Analytics to Gain a Competitive Edge appeared first on Inbound Logistics.

AI technology really started to take off in the early 2000s as more companies began feeding machine learning algorithms with mountains of historical data, resulting in better predictions about consumer demand, inventory management, and market risks. Fast forward to the mid-2010s, and AI software started to become commonplace for its role in powering robotic arms and autonomous vehicles in warehouses.

However, those are all examples of traditional AI. Traditional AI solutions allow companies to program repeatable tasks and scenarios with minimal variability, such as picking up a tote and bringing it to a packing station.

Generative AI has the potential to get more creative, own more processes, and help stakeholders make better decisions based on real-time data.

Generative AI in 2024

Go down the AI rabbit hole on Reddit or Facebook, and you might come across arguments about how generative AI image generators or content producers are unethical because they mimic the style and capabilities of real artists. However, the ethical implications are less sticky in the global supply chain. Suppose an AI solution can learn from thousands of historical decisions made by real-world supply chain practitioners. Then, automating basic supply chain and logistics functions in an industry facing a years-long talent shortage becomes possible.

AI won’t change the supply chain overnight, but we should see steady technological progress in the next few years. Here are some of the things we might see from supply chain AI solutions in 2024:

• Better forecasting. Until the COVID-19 pandemic, forecasts were largely created based on historical data (basically, we hoped people would keep doing what they always did)—but those models no longer work. Generative AI lets companies analyze their full pool of historical data and stack it against other factors, such as inventory data, supplier data, distribution networks, and market trends, to create more accurate and resilient forecasts.
• Advanced warehouse robotics and automation. Generative AI will let robots handle more complex tasks than simple picking, offering support across sorting, returns management, and more. Additionally, modern AI software can analyze warehouse layouts and processes to reduce travel distances for robots and employees, optimize workforce planning, and orchestrate optimized interactions between workers and robots to improve warehouse efficiencies.
• Improved risk management. With generative AI, risk assessments will go beyond basic seasonal or templated event models by allowing supply chain practitioners to model specific events (like hurricanes, wildfires, recessions, and yes, even pandemics) to see what risks they pose to the organization’s supply chain.

Barriers to AI

You might remember several years ago, everyone thought blockchain would reshape the supply chain overnight. Yet, despite several successful pilot programs, progress for blockchain supply chain solutions has slowed significantly because of a lack of standardization.

Similarly, generative AI technology has much potential but is also relatively new. While it does seem inevitable AI will play a prominent role in the future of the supply chain, only time will tell exactly what that role looks like.

The post How Artificial Intelligence Will Impact the Supply Chain in 2024 appeared first on Inbound Logistics.

The Challenge

Aggreko was struggling with gaps in shipment payment data and needed better visibility, accuracy, and supply chain efficiency. “Every time we sent a shipment, we were almost starting from scratch; we were constantly in reactive mode,” explains Chad Thibodeaux, Aggreko NAM Transportation Manager. The company also wanted technology to help manage its complicated transportation network, improve procurement processes, and manage vendors.

“We’re high-maintenance,” quips James Hoogendoorn, Aggreko NAM Logistics Manager. “We needed a provider that wouldn’t be scared off by that. We wanted a logistics partner with the same intensity-driven mindset as ours.”

The Solution

Aggreko found an ideal partner in RedStone, a Kansas-based third-party provider (3PL). “RedStone didn’t run from our challenges,” Hoogendoorn says. In addition to the experienced RedStone management team, Aggreko gained access to the RedStone Latitude technology solution. Latitude provides real-time information for tracking and exception management, sophisticated reporting and analysis, as well as a best-in-class transportation management system (TMS).

Thibodeaux describes their partnership with RedStone as a major success: “We now have a tailored solution that captures data for every shipment and provides full visibility to crucial information such as length of haul, type of truck, dollar-per-mile cost, etc.”

RedStone helped Aggreko re-align procurement strategies by conducting a sweeping analysis to find opportunities for cost and performance improvements throughout their vendor network. Today, Aggreko and RedStone work together to continually analyze procurement effectiveness, identify ongoing opportunities, and find new vendors.

Nailing down accurate freight rates got easier as well, thanks to the custom freight calculator RedStone created for Aggreko. “We’ve always struggled with pricing freight accurately because we operate in many different markets using many different vendors,” Thibodeaux notes. The Aggreko team now uses this custom calculator as a quick, easy way to provide freight quotes.

RedStone also streamlined freight-payment processes by taking on accounts payable duties. Instead of paying hundreds of vendors, Aggreko makes one payment to RedStone, which manages individual payments.

With closely aligned philosophies, Aggreko and RedStone have developed a strategic partnership that supports the Aggreko mission. “When facing crisis events, our customers count on us to engineer solutions that allow them to continue being productive,” explains Hoogendoorn. “Ultimately, RedStone did exactly the same for us.”

To learn more:
solutions@redstonelogistics.com
888-733-5030
redstonelogistics.com

The post Powering Up a Better Supply Chain appeared first on Inbound Logistics.

WHO: OpenRoad | WHAT: Celebrating Its 20th Anniversary and Entering a New Era

OpenRoad’s story begins in the small, Pacific Northwest farming community of Dallas, Oregon. Mark Weisensee was first introduced to logistics by a friend in the industry, and although he had built a successful career in construction, he sensed an opportunity. Fueled by a passion for entrepreneurship, Mark and his wife Liz gathered their entire $6,000 savings and recruited two industry friends to create a small truckload brokerage.

Over the next 20 years, OpenRoad transformed. Many talented professionals joined the team, and they quickly expanded to include LTL and Intermodal. In 2018, OpenRoad initiated a team-based operational model that would enable the company to grow at scale. Specialized carrier reps, sales reps, and operations reps began working together to service customers, augmenting the strong foundation of cradle-to-grave freight brokers and agents on OpenRoad’s team.

In 2019, OpenRoad expanded further, establishing a Global Forwarding division and completing their comprehensive suite of services. Their added capabilities in air, ocean, and in-house customs brokerage enabled OpenRoad to serve any customer, anywhere in the world.

As the company grew, OpenRoad prioritized investments in cutting-edge technology, partnering with industry-leading tech providers to upgrade their platforms including everything from their TMS to their human capital management system. With financial responsibility a top priority, the company has remained committed to avoiding external funding to support the business. Coupled with their laser focus on pursuing opportunities that drive results, OpenRoad stands in its strongest financial position today.

Mark and Liz’s commitment to “get better every day” has fueled OpenRoad’s growth. With their people their first concern, they prioritized initiatives that supported their employees and the award-winning culture OpenRoad is becoming well known for.

And while the substance of the company has remained unchanged, the last 20 years have produced a nearly unrecognizable OpenRoad from the humble company that started in 2004. To reflect their remarkable growth and expanded services worldwide, the company recently unveiled its refreshed logo and new name—OpenRoad Global. Their modernized look communicates their service scope, confidence, and proficiency, while also honoring their rich history of service, entrepreneurship, and grit.

As OpenRoad faces the next 20 years, the company is prepared to meet the market with renewed energy. Their solid infrastructure will underpin their ability to serve any customer, with the new name and look accurately reflecting the heart of their mission—to empower global business through personal and modern logistics services. OpenRoad’s core values of helping others succeed, working with a sense of urgency, and following through on all commitments are the immovable pillars that will carry the company forward. And most importantly, OpenRoad will continue to evolve to meet the needs of their people and customers, in pursuit of their overarching vision: To inspire excellence through our passion for continuous improvement and unwavering care for people.

The post OpenRoad’s Bold Brand Refresh Marks 20 Years of Logistics Excellence appeared first on Inbound Logistics.

In the complex world of rail logistics, the capacity to manage data effectively and maintain data visibility is of utmost importance for operational success. Understanding this, RSI Logistics encourages finding better ways to manage, handle, and learn from the complicated data involved in the rail industry, and to help others form strategies to effectively capture, manage, and distill valuable insights from their data.

A client of RSI Logistics found themselves stuck, being forced to sift through important data via manual processes. These inefficiencies not only jeopardized the quality of client service delivery but also posed substantial threats to progress. The overarching objective for RSI Logistics was, therefore, to construct an efficient solution capable of surmounting these shortcomings.

To overcome this challenge, RSI Logistics helped create a custom dashboard for the client.

The client struggled with the management and analysis of their data. Their existing system was predominantly reliant on manual data entry and management. This resulted in processes that were time-consuming and opened the door for potential inconsistencies due to inevitable human errors.

Past failures in the company’s attempts to design a trustworthy and reliable system illuminated the complexity of the data management challenge that was present.

The Solution

To overcome their client’s challenge, RSI Logistics developed a custom dashboard tailored to meet the client’s needs with unmatched precision and accuracy. This dashboard combined data from different places and made it easy to see and understand through clear visuals. The result was a facilitation of smooth data integration across a multitude of systems while providing clear data visualizations.

By incorporating real-time updates, the need for manual entry was eradicated, allowing the client to vastly improve their efficiency. The interactive, highly customizable features empowered clients to adjust the interface to align with their specific needs. Furthermore, the one-click automated reporting capabilities enabled the generation of accurate reports, amplifying the tool’s utility and effectiveness.

The creation of this custom dashboard resulted in the significant streamlining of data management processes. It drove operational efficiency to new heights, enabling the client to make firm, data-driven decisions that ignited confidence.

RSI Logistics’ custom dashboard yielded numerous benefits for the client: It simplified data management, saved time, improved data accuracy, reduced redundant costs, and enhanced operational efficiencies. This allowed the client of RSI Logistics to witness firsthand the immediate improvements in their data management and reporting capabilities.

This case study highlights the pivotal role technology can play in modern logistics. It illustrates the power of transformative solutions in bridging operational gaps and strengthening client relationships, favoring the continuous growth of organizations and the industries they serve.

To learn more:
info@rsilogistics.com
517-816-4568
www.rsilogistics.com

The post Custom Dashboard Provides Rail Data Insights and Boosts Efficiencies appeared first on Inbound Logistics.

Logistics Plus (LP) is a leading worldwide provider of transportation, warehousing, fulfillment, global logistics, business intelligence, technology, and supply chain solutions.

A United States-based aircraft parts supplier approached Logistics Plus with a warehousing challenge. The client moved into a new 550,000-square-foot warehouse earlier in the year to handle the storage and fulfillment of their products.

The client started running into inventory issues and incorrect reporting in their warehouse management system (WMS) only a few months after beginning operations. So, they called Logistics Plus for help.

THE SOLUTION

Within three days of being asked to help solve the issues, LP sent 10 of its own warehouse employees from its West Coast warehouses (Phoenix, AZ and Chino, CA) to work on-site at the client’s warehouse until the issues were identified and solved.

The LP team started by breaking the project down into three phases. Phase 1 was identifying the root problem. LP determined the warehouse’s rotating temporary workers were not appropriately trained in using the WMS, and the inventory wasn’t properly flagged nor scanned into the system when it arrived or left the warehouse. Phase 2 of the project involved going through the warehouse and re-scanning every piece of inventory. As pallets were scanned, the team flagged all items that were not in the proper location.

After the inventory was accounted for, and issues were flagged, Phase 3 began. This involved moving all of the flagged inventory to the proper location and entirely re-staging the product. Additionally, the inventory that was incorrectly tagged was sorted by location codes. Tags were also added to different locations of the pallets so that each item could be easily identified and located. After this was completed, the team updated the client’s WMS to reflect actual inventory levels.

THE RESULTS

With LP’s rapid response time and warehousing expertise, the client now has complete and accurate visibility of its inventory levels. The warehouse is staged in sections to allow the warehouse workers to quickly scan, identify, and pull products from the proper locations.

The LP team will remain on-site for the foreseeable future until the client is comfortable with the system and process that was put into place. Logistics Plus continues to grow its relationship with the client and remains ready to assist with any new supply chain challenges.

As a 21st-century logistics company, Logistics Plus was able to leverage its can-do culture to help fix the client’s inventory issues within a matter of days.

To learn more:
contact@logisticsplus.com
1-866-LOG-PLUS (564-7587)
www.logisticsplus.com

The post Logistics Plus Warehousing Team Solves Client’s Off-Site Warehouse Inventory & System Issues appeared first on Inbound Logistics.

Q. How can shippers manage the risk of disruptions from carrier financial instability?

A. Shippers must have processes to ensure they work with fiscally sound transportation providers. Most carriers willingly share this information to prove they are a reliable partner. Properly vetting carriers or using a 3PL that has a thorough vetting process also mitigates risk during a period of volatility.

It’s critical to build relationships with reliable carriers and brokers regardless of the financial environment so a shipper isn’t in a situation where they may need to use a provider that isn’t well-known by their organization.

Q. What red flags should shippers watch out for when assessing a transportation provider?

A. Beware of carriers that have had their authority less than 90 days or have an unexplained lapse in their authority. Make sure their safety rating is not conditional or unsatisfactory with the FMCSA. This status may indicate a carrier operating with unsafe equipment or fraudulently reporting their drivers’ information. Services like TIA Watchdog can also help identify brokers or carriers that have operated unethically or fraudulently with another company. Onboarding and compliance providers, such as Carrier411, Highway, and RMIS, can help weed out unsavory providers.

WSI uses these safeguards to select ethical and compliant carriers. We vet them by reviewing safety records, confirming insurance coverage and authority, checking for any TIA Watchdog reports, and researching any issues in Highway before we invite them to go through our onboarding process to become approved carriers. Our system sends alerts if any carrier falls out of compliance, and they are immediately prohibited from being sent any load tenders.

Q. Can shippers find efficiencies amid the current market conditions?

A. Whether it’s a shippers’ or carriers’ market, having a great rapport with carriers will help ensure a shipper gets the best rates. Shippers can also implement regular RFPs to maintain adequate capacity and accurate rates from carriers as the market adjusts.

Q. How can shippers build partnerships with stable transportation providers?

A. Be truthful and thorough with carriers. Letting a provider know exactly what your expectations are and the complete details of a shipment goes a long way with both carriers and brokers. When you’re negotiating, be realistic with pricing based on market conditions. Asking a carrier to meet a rate well below the market is one way to make them avoid working with you in the future.

Once a great carrier is onboarded, keep using them. The more business you direct toward a carrier, the better overall pricing and service you will receive.

Kelley Stiles is the director of transportation at WSI Freight Solutions, LLC—WSI’s transportation brokerage division. Stiles and her team work closely with WSI’s carrier base to deliver reliable logistics and fulfillment services nationwide.

The post How Shippers Can Manage Risk During the Great Trucking Recession appeared first on Inbound Logistics.