Technology is Essential in Navigating Peak Shipping Season

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As crazy as it may sound, planning for peak shipping season has already begun! In the U.S., peak shipping season extends from August until January of the following year. Peak shipping season can be broken down into two spikes in demand. The first occurs from August until October. This significant increase can be largely attributed to the holidays occurring in the next few months like Thanksgiving and Christmas. After a brief lull towards the end of October, a second spike carries the trend from November until the end of January.

The more customers shop online, the more expensive the season becomes for shippers. The pandemic shifted the mindset of many consumers – instead of placing an online order every once in a while, they started to depend on e-commerce. As a result, this peak shipping season is projected to be more expensive and busy for shippers than 2020.

Both FedEx and UPS are increasing their additional handling surcharges as a result of high order volumes and tight capacity. Both increases will start over the summer and last through peak shipping season. While raising surcharges is a start to handling peak shipping season, technology is providing a larger and more sustainable answer.

How Technology and Automation Can Help

In order to keep up with the steady increase in order volume, FedEx is working to increase its capacity by building out its infrastructure. The expansion will include 16 new automated facilities that will be finished just in time for peak shipping season. They already have over 140 facilities that are fully automated! FedEx’s automated facilities use advanced technology to handle, sort and scan packages. Automating traditionally manual processes saves them time and money without the added stress of hiring additional people.

For shippers and other peak season stakeholders, integrating technology into their traditionally manual logistics processes can feel overwhelming. A great way to start is by implementing a transportation management system (TMS). By leveraging a TMS, shippers can rate, book and track their shipments on a single platform where they can collaborate with carriers. 

A TMS that integrates directly with a visibility platform is especially important. Navigating an increase in order volume while keeping up with growing customer expectations can be difficult. With a visibility platform, shippers can view each aspect of their supply chain in detail as moves are planned, alerts are sent and real-time adjustments are made. Visibility platforms collect data and use it to create actionable analytics. By leveraging a visibility platform that integrates seamlessly with their TMS, shippers can keep customers informed while continuously improving their logistics operation!

Overcoming Challenges in the Supply Chain with Technology

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The first half of this year has been filled with a number of challenges and new opportunities for supply chains. The pandemic has changed the volume and pace at which consumers are purchasing products. As a result, logistics professionals have been identifying ways they can pick up the pace of their operations without sacrificing quality. Technology has been at the forefront of possible solutions. 

Here are some challenges to keep an eye on as we head into the remainder of 2021: 

Challenges

Changing Consumer Demand

Consumer preferences and priorities have changed significantly this year. Shoppers are looking to make practical purchases with a fair price tag. While the occasional splurge isn’t out of the question, consumers need to feel like the product is genuinely worth it. Online reviews are especially important when it comes time to make a purchase decision. Detailed videos of product overviews and opinions from people who actually own and use the product are available online in a number of forms, making them easy to watch.

Faster Delivery Pace

Nearly all companies are sensitive to the speed of their final mile delivery process. Consumers have grown to expect a quick turnaround after placing an order online. Access to detailed tracking information with real-time status updates is also important. Quick deliveries and accurate status information that’s available to customers is essential.

Supply Chain Strength

Both of the challenges described above feed into the need for a strong supply chain with seamless operations. In order to keep up with heightened expectations, higher order volumes and faster shipping requirements, supply chains must work efficiently while maintaining quality. With so many moving parts involved, improving supply chain operations can be difficult.

Leveraging Technology to Overcome Obstacles

Luckily, there is a technology platform with the ability to answer these challenges and more. A transportation management system (TMS) makes it possible for shippers to save time and money while improving operational efficiencies. By implementing Kuebix TMS into their logistics operation, shippers can ensure their supply chains are running as smoothly as possible. Kuebix TMS is cloud-based and can scale to accommodate the size of any growing business. Users can leverage the rate comparison feature to view their options side by side and make the best informed decision. Detailed reports and dashboards help users take a closer look at their business and identify areas with potential for improvement. Kuebix TMS users can seamlessly integrate with Trimble Visibility to access real-time tracking information down to the SKU level and actionable analytics. 

New challenges and trends will always exist in the supply chain. It’s up to logistics professionals to respond in a way that not only helps them adapt, but accelerates their growth into the future. The best way to do this is by implementing a TMS into your supply chain!

How Shippers Can Unlock True Supply Chain Visibility

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Consumers have grown to expect quick shipping and frequent status updates with every order they place. Shippers are scrambling to keep up with these new standards while strengthening their logistics operations. It is especially challenging to make sense of the overwhelming amount of data supply chains are producing as operations ramp up to match demand. Visibility throughout the supply chain is now more important than ever.

Achieving true supply chain visibility starts with a visibility platform. Shippers that use a visibility platform in their logistics operations can view each aspect of their supply chain in detail as moves are planned, alerts are sent and real-time adjustments are made. Data is used to create actionable analytics that shippers can use to identify areas they can improve on. Real-time tracking information enables them to provide better customer service and strengthen communication with partners.

Visibility platforms use the latest technology to aggregate and normalize data to present back to the user in a format that’s easy to read and understand. They provide real-time tracking information that can be accessed from anywhere and actionable data in a robust analytics engine.

The easiest way to incorporate visibility into your supply chain is through integrating a visibility platform with your transportation management system (TMS).  Here are a few things to look out for when picking the visibility platform that will work best with your logistics operation:

Strength of Integration

Analytics produced by visibility platforms are dependent on the quality of data flowing in. A visibility platform that integrates well with your TMS allows information to travel seamlessly between the two systems. This ensures your visibility platform has access to high quality, relevant data when producing analytics.

Multi-Modal Coverage

A visibility platform that works with all modes of transportation is best. Even if you are only shipping through one or two modes of transportation right now, your business will grow and it’s important to have a visibility platform that can keep up as you evolve.

P.O. and SKU Level Tracking

Real-time tracking information must be available from P.O. down to SKU level tracking. A visibility platform that can track and trace at both of these levels will keep everyone informed. Both internal and external stakeholders will be able to see what’s happening in the supply chain for specific products or purchase orders.

Use of Advanced Technology

Choosing an innovative visibility platform that uses the latest technology makes it easy for you to keep up with your growing logistics operation. Machine learning and artificial intelligence are often used to combine data from your TMS and visibility platform to create powerful analytics which speeds up the process.

The topic of true supply chain visibility is becoming increasingly important as both consumer expectations and the logistics industry continue to evolve. Implementing a visibility platform will help shippers tackle new challenges with real-time tracking information down to the SKU level and actionable analytics. Choosing a visibility platform that integrates with your transportation management system (TMS) makes the process even smoother as information can flow seamlessly between the two technologies!

3 Innovations Driving Sustainability in Supply Chains

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Sustainability has been an increasingly important topic of conversation in business operations. In order to better understand the source of harmful gas emissions, the Greenhouse Gas Protocol has broken them down into three categories: 

Scope 1 – All direct emissions from the activities of an organization that are under their control.

Scope 2 – Indirect emissions from electricity purchased and used by the organization.

Scope 3 – All other direct emissions from the activities of the organization from sources they don’t own or control.

Scope 3 emissions are the biggest problem for shippers. Reducing them through sustainability initiatives is especially complicated because they are indirect in nature and require engagement throughout the supply chain. However, consumer priorities have shifted in recent years and they are more inclined to do work with businesses that have initiatives in place. A recent supply chain report from the Carbon Disclosure Project (CDP) revealed that over 1,000 companies are working to reduce their scope 3 emissions and 94% of them have science-based targets to help reach their goals. Here are a few different innovations and technologies helping supply chains work towards a more sustainable future:

Sustainable Aviation Fuel

Logistics companies and airlines have been working towards creating and using more sustainable aviation fuel. Kuehne + Nagel and American Airlines recently announced they are going to invest in 11 million liters of sustainable fuel. Things like plants, used cooking oil and solid waste can all be used to make a version of aviation fuel that’s better for the environment.

Battery-Powered Trains 

Research conducted by The Association of American Railroads revealed that if 25% of truck traffic moving at least 750 miles went by rail instead, annual greenhouse gas emissions would fall by approximately 13.1 million tons. Moving freight by train instead of truck has the potential to reduce greenhouse gas emissions by up to 75%. BNSF and Wabtec are creating a train powered by a battery instead of an engine that could reduce the transportation industry’s carbon footprint even more.

Alternative Truck Fuel

Battery-electric vehicles, fuel-cell-electric vehicles and vehicles that run on renewable fuels are the most widely discussed alternatives to vehicles dependent on fuel. Large truck manufacturers are looking into battery-electric vehicles and full-cell-electric vehicles because of their success in standard cars. The biggest challenge so far has been batteries – a larger truck needs a larger battery which is heavier and takes more time and energy to charge. However, renewable fuels show promise too. Energy company Neste is selling its own renewable diesel that cuts greenhouse gas emissions by up to 80% in comparison to petroleum diesel.

The driving force behind these sustainable innovations is technology. As alternative fuels and trucks continue to be developed, it will be interesting to see exactly what the future of sustainability in supply chains looks like!

Packaging Automation is Becoming a Reality for Supply Chains

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The development of technology within supply chains has accelerated significantly in the last year. The pandemic presented businesses of all industries with challenges regarding inventory, transportation and health and safety standards that have been difficult to overcome. As a result, supply chains have started looking into automating a number of traditionally manual processes.

Automated technology in supply chains exists in a number of forms, but one that has been top of mind for logistics industry innovators is packaging automation. Companies who relied heavily on labor to complete mundane and repetitive tasks associated with packaging felt an especially heavy strain when Covid-19 forced most companies to cut back on in-person labor. It was a turning point for packaging automation as it went from being a possibility to a necessity to keep up with other industry leaders. Packaging operations are adopting new forms of automation as a way to reduce labor costs while creating a safer work environment and improving their efficiency and cost of goods.

The term “secondary packaging” refers to the packaging on the exterior of a product which has the biggest need for automation. Applying this layer to products is usually continuous and repetitive. Companies looking to cut back on labor are finding that secondary packaging is significantly slowing their operations down. A report on secondary packaging trends by PMMI revealed that 85% of manufacturers are looking to expand their current portfolio of automated solutions when it comes to their secondary packaging process. 

How Packaging Automation Works

In general, packaging automation does a traditionally manual and repetitive task at a faster pace and eliminates the risk of human error. While the initial implementation of the technology can be costly, it pays for itself with the number of benefits it brings to logistics operations. 

One of the most efficient examples of packaging automation is a long-travel cartesian robot with custom end-of-arm tooling (EOAT) and advanced sensing capabilities. These robots can replace a variety of packaging machines and perform manual tasks like feeding carton and tray making machines and separating nested cardboard containers for use on conveyor lines. Cartesian robots can even handle palletizing and de-palletizing orders.

A long-travel cartesian transfer robot. | Photo Credit: Bell Everman

By using a single long-travel cartesian transfer robot like the one pictured above, logistics professionals can tend multiple packaging machines without needing to rearrange them for the convenience of the robot.

What the Future Holds for Packaging Automation in Supply Chains

It’s clear that packaging automation has gone from being a want to a need for logistics operations looking to move forward and jump any hurdles caused by the pandemic on the way. As innovations like the cartesian robot become readily available, you can expect automation to have a hand in packaging the products you pick off of store shelves every day!

The Ever Given Continues to Impact Supply Chains Despite Being Freed from the Suez Canal

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The world received exciting news this week as a 220,200-ton cargo ship named the Ever Given was freed from the Suez Canal after being stuck for six days. The Suez Canal is one of the most important trade arteries in the world. It connects Asia to Europe and the U.S. East Coast. On average, 50 ships pass through the canal daily. It stretches to cover 120 miles and aids in the transport of up to 12% of commercial shipping and about 2.5% of the world’s oil. It’s pretty clear that there are a number of businesses counting on their freight being able to pass through the canal. While it’s great news that the Ever Given is out of the way, the effects of the unexpected pause in transit are ongoing.

When the Ever Given first got stuck, there were at least 360 ships waiting at the canal’s northern and southern entrances. Roughly 300 ships were scheduled to pass through the Suez Canal in the following two weeks, meaning the pressure was on for salvage crews working to set it free. However, it quickly became clear that it wasn’t going to be an easy fix. By the third day of the jam, many carriers were starting to consider an alternate route.

Those who aren’t passing through the Suez Canal have to travel around Cape of Good Hope which is located on the southern tip of Africa. This alternate route takes considerably longer – ships traveling via the Suez Canal to Port of Rotterdam (Europe’s largest seaport) can make it there in roughly 18 days while going around the Cape of Good Hope takes over 31 days. Carriers taking longer to reach their destination also means they’re going to have additional expenses – the voyage around Cape Hope can cost more than $26,000 in fuel daily. 

While it’s great news that the Ever Given has been freed from the Suez Canal, the accident’s effect on supply chains around the world is far from over. Ships that made the decision to travel around Cape of Good Hope can’t just turn around and those who waited face a significant increase in congestion.

Even though this ordeal has only been going on for a week, companies are already feeling disruptions throughout their supply chains. Shortly after the Ever Given got stuck last week, Nike shared that its imports have dropped 39%. While demand for their product has held steady, port congestion has played a huge role in their struggle to effectively distribute. The factors surrounding this decrease include container shortages, transportation delays and port congestion – all of which may cause an even bigger strain as companies attempt to recover from the last six days. 

Popular retailers like Walmart and Ikea and automotive and technology companies all rely on the passing of product through the Suez Canal. With everyone looking to leverage the same channel to recover from the delays experienced this past week, it’s important that companies stay organized and leverage visibility throughout their supply chain to communicate any changes!

Dan Clark Kuebix

Dan Clark Recognized as 2021 Supply Chain Pro to Know

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Dan Clark, Kuebix Founder and VP of Product Innovation and Strategy, Trimble, has been selected as a 2021 Supply Chain Executive Pro to Know by Supply & Demand Chain Executive magazine. Dan was chosen for his extensive knowledge of the logistics industry developed from over 20 years of hands-on experience, combined with his remarkable expertise in creating supply chain efficiencies via SaaS technology.

Dan Clark is a logistics industry innovator. He possesses extensive experience gained from years of working with leading freight carriers and multibillion-dollar companies with highly sophisticated supply chains. Dan continues to deliver on his original vision of using best-of-breed cloud technologies to create an innovative and intelligent transportation system that returns control and visibility to freight shippers at companies of all sizes.

For the last 21 years, SDCE’s editorial has vetted hundreds of nominations for the annual award, finding the best leaders in the supply chain industry. The Pros to Know award recognizes outstanding executives whose accomplishments offer a roadmap for other leaders looking to leverage supply chain for competitive advantage.

Kuebix, a Trimble (NASDAQ: TRMB) Company, provides a transportation management system (TMS) that powers one of North America’s largest shipping communities. Developed on multi-tenant cloud technology, Kuebix’s connected platform enables customers to simplify ERP and other integrations to drive rapid onboarding and ROI. 

How Plant-Based Protein is Shaking Up the Food Industry

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When most people think of plant-based proteins they picture products like tofu and veggie burgers. However, the plant-based foods industry has started to move towards products that look and taste like meat without any animals involved. These new options are being advertised as a healthy and sustainable alternative for those who choose not to consume meat in addition to those who do.

Plant-based versions of burgers, sausage patties and chicken nuggets created to taste like the real thing are starting to appear in most grocery stores. More recently, they have started to gain traction and appear on the menus of popular restaurants and fast food chains. Technomic Ignite menu data predicts that plant-based proteins will grow 35% on menus by the end of 2022. Their rise in popularity can be credited to a change in consumer perspective. Plant-based proteins are largely recognized as an alternative for vegetarians, vegans and other lifestyles that choose not to consume meat or animal products. While this still holds true, growing sustainability concerns have consumers outside of these lifestyles picking plant-based options off of the menu. Meat consumption is a major contributor to environmental damage and consumers are in search of another option that tastes just as good. Companies like Beyond Meat and Impossible Foods are working to provide a solution.

McDonald’s recently announced its three-year deal with Beyond Meat, making them the “preferred supplier” for the meatless burger in the McPlant. The two companies plan on exploring and co-developing other plant-based items like chicken, pork and eggs. Beyond Meat also has partnerships with PepsiCo and Yum! Brands, the parent company of KFC, Pizza Hut and Taco Bell.

Tesco, a grocery and general merchandise retailer based in the U.K., pledged to increase its sale of plant-based proteins and meat alternatives by 300% by 2025. To reach their goal, Tesco plans to make these products more available, affordable and visible to shoppers who visit their stores. Tesco will also be working directly with their suppliers to bring new plant-based innovations to customers.

What this Means for Supply Chains

The popularity of plant-based proteins and other alternatives have disrupted the global meat industry in a way that traditional burger companies did not expect. Before plant-based options became popular, burgers made of meat did not have a competitor.  As demand launches meat-free alternatives out of grocery stores and into restaurants all over the country, plant based proteins and their supply chains have their work cut out for them.

As the plant-based protein industry continues to expand and create new products, companies will need to rely on their supply chains to keep things running smoothly!

 

Celebrating Women’s History Month in the Supply Chain

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March is an especially important month as it’s Women’s History Month and International Women’s Day is today! 

 The first Women’s History Day was held in 1909 to commemorate the one-year anniversary of the garment workers’ strike when 15,000 women marched through lower Manhattan. The day became Women’s History Week in 1978 because the National Women’s History Alliance wanted to draw attention to the fact that women’s history wasn’t included in K-12 school curriculums. Finally in 1987, activists lobbied Congress to declare March Women’s History Month.

As recently as 50 years ago, a single woman in the U.S. could not get a line of credit, a mortgage or a car loan without the signature of a responsible male or spouse. Fast forward to present day and America has its first female vice-president, every board of directors in the S&P 500 has a woman on the board and women now make up a quarter of all the members of the 117th Congress. Women continue to take on leadership roles in the workforce and challenge notions of tradition!

This time of year is perfect for reflecting on and recognizing the significant contributions powerful women have made to better our personal and professional lives as a whole. To celebrate, we are highlighting the sacrifices and accomplishments women have made in the transportation and supply chain industries.

Women in the Transportation Industry

Spotlight on Female Truck Drivers

The PBS American Portrait series recently shared a feature following a truck driving team of two women, Laura Hathaway and Terry Roberts. Hathaway became a truck driver to provide for her family and while she loves the freedom of the road, she is always thinking of her family back home. 

Hathaway and Roberts each work 12 hours a day, seven days a week. They are on the road away from home anywhere from three to seven weeks. There’s a bonus for truck drivers who drive over 19,600 miles per month and since teaming up, Hathaway and Roberts have surpassed that number every month.

It’s inspiring to hear stories of the sacrifices that Hathaway, Roberts, and many other female truck drivers make to provide an essential service and support their families. 

Ramona Hood Makes FedEx History

President and CEO of FedEx Custom Critical Ramona Hood made company history when she was promoted on January 1, 2020. Hood is the first African American woman to lead a FedEx operating company. 

Hood started working as a receptionist for Roberts Express (which later became FedEx Custom Critical) in 1991. She wanted a job with a consistent schedule to support her family while continuing to raise her daughters. Hood’s role as a receptionist evolved into roles in operations, safety and sales, allowing her to offer valuable input and learn more about the critical components of FedEx Custom Critical’s business operation.

One of Hood’s earliest successes in the company was launching a pilot program allowing FedEx Custom Critical employees to work from home in 2002. At the time, it was uncommon for call centers to support employees working remotely. Hood evaluated their processes and technology, realized it was possible and made it happen. 

After spending some time heading subsidiary FedEx Truckload Brokerage, Hood moved to an officer position at FedEx Supply Chain in 2016. From there, she returned to FedEx Custom Critical and ultimately became CEO.

Ramona Hood’s success with FedEx is a testament to what hard work and determination can bring women in the transportation industry!

Melonee Wise Makes Waves with Fetch Robotics

Melonee Wise is the founder and CEO of Fetch Robotics, a company producing technologies focused on enhancing efficiency in supply chains and logistics operations. Wise has over 19 years’ experience designing, building and programming robotic hardware. 

While truly independent automation still has a ways to go, warehouse robotics are making significant contributions to supply chains. Wise and her team at Warehouse Robotics are creating robots that are able to complete mundane and repetitive or potentially dangerous warehouse tasks. Fetch Robotics is setting itself apart by offering a wide range of robots capable of completing moving tasks that are controlled by a cloud-based coordination service, removing the need for people in the warehouse space.

Women’s History Month is an opportunity to reflect on and recognize the women who have made a significant impact on society. Remembering parts of history that wouldn’t have been possible without them serves as inspiration to everyone.  

Women in the transportation and supply chain industries continue to challenge traditional logistics operations and change logistics operations for the better. Their creative thoughts and ideas are pushing the industry forward and making room for seamless communication and collaboration throughout the supply chain in 2021 and beyond!

The Logistics of Valentine’s Day at Home

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Valentine’s Day is all about spreading love to those closest to us and is the second highest ranking holiday in terms of expected spending. Traditional celebrations include pink and red greeting cards, roses, chocolates and candlelight dinners. While the pandemic has made doing so in person a little more complicated, consumers are still finding ways to celebrate. 

According to NRF and Prosper Insights & Analytics’ annual Valentine’s Day survey, 52% of people are celebrating in one way or another this year. With consumers spending $32 less than last year and preferring to stay at home, retailers and restaurants are getting creative to remain a part of any celebrations! 

Flower Purchases and Deliveries

One of the most common gifts on Valentine’s Day is a bouquet of flowers. After all, bright, crisp flowers can brighten just about anyone’s day! Florists and flower companies as a whole are eager for the business that Valentine’s Day brings. Deliveries of bouquets of beautiful roses and assorted flowers are a perfect way to celebrate and brighten up a room during the pandemic.

The United States produces fewer than 30 million roses a year. This barely makes a dent in the 200 million roses that are generally bought for Valentine’s Day. Most of these flowers are imported from Columbia before they’re sold to consumers in the USA.

Meal Kits

Many of those who are celebrating are looking to share a romantic meal that differs from the takeout they’ve been ordering in quarantine. Popular meal kit companies and restaurants have curated recipes for people to cook at home that will be just as delicious as their restaurant-quality meals of years past! Whether you’re looking for a seafood, steak or vegetarian meal, companies like Omaha Steaks and Maine Oyster Company have got you covered. 

Boxes of Chocolate

Big heart-shaped boxes of chocolate have been a staple in Valentine’s Day celebrations for a long time. As time has gone by, the box and its design has become just as important as the taste of the treats inside! Companies are working with leading chocolatiers and artists to come up with all different shapes and sizes of boxes and chocolates. They continue to branch out with chocolate fillings, drawing customers in with flavors like blueberry, passion fruit, pineapple and more! 

Regardless of how you’re celebrating Valentine’s Day this year, seamless delivery is crucial. If a customer walks into a store they expect to be able to purchase roses from, and finds no roses, their experience with the brand is going to suffer. Logistics professionals need to balance final mile delivery to homes with keeping shelves stocked at brick and mortar stores. With so many people placing online orders for Valentine’s Day specific items, logistics professionals have their work cut out for them. It’s important that supply chains operate effectively and efficiently so that no products are left behind.

Mass Personalization: An Emerging Trend and What it Means for Supply Chains

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What is Mass Personalization?

Personalization is formally defined as “the act of tailoring a product or service based on what customers desire.” Most companies that incorporate personalization have a base product that shoppers can customize as they’re checking out. Manufacturers are able to produce large quantities of the base product and only add personalizations when they’re ordered. 

Mass personalization takes the idea of products being uniquely catered to consumers by making the product itself customizable. Rather than having an element of the product that can be personalized (like adding embroidered initials to a pre-set backpack), the entire thing is curated based on the specific wants and needs of the customer placing the order.

Do you remember The Jetsons? This popular television show from the 1960’s was set in the year 2062. It imagined a world where a family could sit down to dinner and “select” what they wanted to eat from a machine and their order would be magically printed out. Mass customization is a step closer to realizing this lofty dream of instant, customizable customer satisfaction. Today, mass personalization has been adopted by companies selling hair products, skincare and even vitamins. 

An example of a modern mass personalization company is Take Care Of, a vitamin brand that has customers answer questions based on their values, goals, and lifestyle to create a custom daily plan involving vitamins, proteins and/or collagens. The name of the customer is printed on each daily package as well.

How Does Mass Personalization Impact Supply Chains?

Mass personalization is a great way for customers to have an experience catered to their individual needs, but it demands a lot more work from supply chains. With the result of each question leading to a different product recommendation, companies need to have a large number of product variations on hand. Instead of following a traditional manufacturing model and having an excessive amount of inventory to support custom orders, many companies are starting to explore on-demand manufacturing. This type of production leverages new technology like 3D printing to make necessary order customizations without keeping so many variations on-hand. 

The technology behind on-demand manufacturing is still being developed, leaving many businesses to rely on the abilities of their machines. Flexible systems make it possible for manufacturers to produce larger numbers of smaller, individualized orders. These machines will be especially helpful for companies within the consumer industry as the shift towards mass personalization becomes more widespread.

Mass customization complicates the distribution of products too. Say a company has 3D printed a specific item for a customer, they can’t simply ship a version from the nearest distribution center. Instead, they have to work to ship that item all the way through the final mile. That might mean shipping from the manufacturing site in California to the consumer is Maine. If the company hadn’t been customizing the product, they could have had a warehouse in Massachusetts to cross-dock out of instead. 

Tracking customized products is even more important than tracking regular ones. Say there is a mix-up on the dock and a customer receives someone else’s item, they will return the product and it will be up to the company to try to trace where their original one has gone. It’s likely that the erroneous product will end up in OS&D instead of in the hands of who it was meant for. This means starting the customization effort fresh and wasting money and time. Shipping customized products effectively as possible can be a challenge, but it can be even more important than with regular goods.

How Can Companies Selling Mass Customized Products Set Themselves Up for Success?

Companies implementing a mass personalization business model have to ensure their supply chains are equipped to handle a large number of product variations that each have their respective inventory sizes. Product needs to be transported effectively and efficiently. By leveraging transportation technology, mass personalization companies can ship a large number of product variations at the lowest possible cost. Supply chain visibility gives them access to real-time tracking information so they can make sure each portion of their inventory ends up at the right place and provide customers with accurate estimated arrival dates and updates.  

Consumers are learning to expect more than a one-size-fits-all approach when it comes to picking products and making purchases. As the mass personalization trend continues to take over, companies need to leverage technology to have complete control and visibility over their supply chains to keep everything running smoothly!

The Future of Drones in the Supply Chain

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Logistics industry innovators are always looking to create solutions that will cut costs and improve operational efficiencies. One application of technology that’s becoming increasingly popular within supply chains is drones. While drones are commonly applied in warehouses to help with inventory management, their purpose is starting to extend further down the supply chain to final mile delivery.

To ensure delivery drones are used safely, The Federal Aviation Administration (FAA) has released a set of rules regarding remote identification and flying over people. These rules require drones to be remotely identifiable and give smaller drones permission to fly directly over people during the day. Remote identification, also known as a “digital license plate,” can be scanned to check the drone’s control station location and make the identification process easier for law enforcement. These regulations are the first step in making sure that an increase in drone presence is comfortable and safe for everyone involved.

The details of delivery operations involving drones varies between companies. The FAA gave Amazon permission to use drones to deliver packages under five pounds starting last September. Verizon and UPS have also started using drones. Companies that implement delivery drones into their operation are looking to help drivers save time and fuel by leveraging drones to deliver small packages to hard-to-reach locations. Most companies are starting to roll out drone initiatives in rural areas as regulations for more populated areas are still needed. 

Additionally, the technology behind all types of drones is still being developed. Last week’s Consumer Electronics Show (CES) unveiled several drones with new technology that will accelerate drone usage even further. Sony released a sneak peek of their Airpeak drone which features an obstacle avoidance system and a first-person view (FPV) for the pilot. Autel Robotics showcased their EVO Dragonfish and EVO 2 RTK series. The EVO Dragonfish is designed to fly for longer and tolerate harsher wind conditions while carrying up to 3.3 pounds of product. The EVO 2 RTK series leverages the latest technology to make tracking and flying drones to a specific location even more precise. 

How Drones Can Help Supply Chains

Drones are a way to cut back on costs associated with final mile delivery. It can be costly to reach certain rural areas with low delivery rates. Drones remove the need for large trucks to make the journey many miles off-route to residences. While the initial implementation cost is high, delivery drones make up for it quickly with significant fuel and time savings. Truck drivers can focus on larger packages along their route and reduce the number of necessary stops. With consumer expectations continually increasing, an efficient delivery process is extremely important. 

While delivery drones are still in the beginning stages of implementation, it will be interesting to see how common they become and what efficiencies they bring to supply chains!

Covid-19 Blog Post Image

The Supply Chain’s Critical Role in Successful Covid-19 Vaccine Distribution

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The creation of a Covid-19 vaccine has been on the top of everyone’s mind since the illness first began to spread. A November Gallup poll revealed that 58% of Americans would get a Covid-19 vaccine. Leading pharmaceutical companies Moderna and Pfizer have created vaccines with efficacy rates of more than 90% that will be ready for distribution by the end of the year. Now that trustworthy vaccines are in production, there’s one problem that remains – distribution. 

Transporting vaccines is more complicated than loading them into a truck and driving. Moderna’s vaccine requires a temperature of -20° for long-term freezing but can be stored for up to one month in a regular refrigerator. On the other hand, Pfizer’s vaccine needs a temperature of -70°C for long-term freezing and can last in a regular refrigerator for five days at most. Both variations must be sealed in sterile containers before leaving the production facility.

Pfizer and Moderna’s vaccines require two shots given weeks apart to the person being vaccinated, making the logistics even more complicated. Hardware companies responsible for producing glass vials, syringes and needles started ramping up production over the summer to prepare for the inevitable creation of a vaccine. U.S. Government officials are working directly with McKesson, a medical supply company, to assemble vaccination kits and make distributing and administering the vaccine easier. 

The infographic below highlights some of the major challenges supply chains are facing on top of determining how to distribute the vaccine.

With people across the globe wanting a dose of either vaccine as soon as possible, the pressure is on for supply chains. Both Moderna and Pfizer need reliable temperature-controlled trucks to transport their vaccines. Even the smallest deviation from the required temperature can render an entire truckload of vaccine doses ineffective. Securing a large fleet of specialized trucks is a challenge in itself and transporting substantial quantities of either vaccine requires supply chains to move quickly.

It’s equally as important that those responsible for distributing the vaccine have access to tracking information. Distributors need to be sure the doses they’re administering stayed within temperature and time regulations before reaching their final destination. Many hospitals and other healthcare facilities have already expressed concern that they don’t have enough ultracold storage capacity to act as a distribution center. Rushing any part of this fragile supply chain can compromise the quality of doses the entire world is depending on. 

In order to successfully transport and distribute doses of Covid-19 vaccines, stakeholders will need to  leverage the most advanced supply chain technologies on the market today. The latest applications of technology will improve collaboration and visibility within logistics operations to help both Moderna and Pfizer produce and distribute their vaccines.

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2020 Projected to be the Busiest Peak Capacity Season Yet

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It’s no secret that the Covid-19 pandemic has made many consumers value e-commerce shopping above traditional in-store experiences. As the holiday season begins in full force, the transportation industry is realizing that online shopping is creating what may be the busiest peak capacity season yet.

Popular transportation companies including FedEx, UPS and DHL are all experiencing a surge in order volume thanks to online shopping. Order volume is expected to continue trending upwards as consumers shop for holiday presents and décor.

While brick and mortar locations won’t have to worry as much about the foot traffic coming through their doors, shippers will have additional freight to transport.

Technology’s Role in Conquering Peak Capacity Season

The secret to handling a next-level peak season (and an overall unpredictable year) lies within technology. Shippers worried about an extra busy peak capacity season should consider joining a network that benefits both shippers and carriers to find beneficial opportunities for collaboration.

A shipping network makes it easier than ever to find truckload capacity. Users can compare negotiated truckload rates from their carriers against carriers that are a part of the network. With so many carriers to choose from, shippers can be sure they are getting the best rate for their freight. Instead of juggling multiple websites, making phone calls and sending emails to find a truck, users can satisfy all of their shipping needs on a single platform.

Shippers are not the only ones who benefit from a shipping network. Carriers looking to establish long-term relationships with shippers and fill backhaul can leverage a shipping network. When they join, carriers can specify their preferred lanes to make sure they are only connecting with shippers doing business in those lanes. It’s a win-win, carriers get more business and shippers can take advantage of the best prices.

Some advanced shipping networks offer RFP and lane analysis services as well. With a shipping network, the process of running bids and conducting RFPs is simplified, allowing shippers to consistently secure capacity. Carriers are able to take short-term opportunities on the spot market with shippers whose logistics goals align with theirs and turn them into long-term relationships with the help of an RFP service.

In order to make it through peak capacity season, shippers and carriers need to work together in a way that works for both parties. Technology like Kuebix’s Community Load Match makes mutually beneficial collaboration possible. Whether you are a shipper in search of the best rate for your freight or a carrier looking to fill empty capacity, technology is key in helping you make the most of this year’s peak capacity season!