Bahamas - Hurricane Dorian Supply Chain Kuebix

Hurricane Dorian Threatens Supply Chains Needed for Recovery

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When Hurricane Dorian hit the Bahamas as a Category 5 hurricane this past Sunday, it left devastation in its wake. The storm brought with it high winds and extreme flood waters that would rip off roofs and ruin houses. Adding to the destructive nature of the storm was its slow movement up the coast. Instead of traveling quickly over several areas, Hurricane Dorian stalled over the Bahamas, traveling at a mere 1 mph at times. This left buildings and infrastructure along its path to be relentlessly pummeled for up to 12 hours at a time.

Now, Hurricane Dorian has been downgraded to a Category 2 hurricane. While this still poses a threat to the states of Florida, Georgia, and the Carolinas, weather forecasters hope that the storm will blow itself out over the Atlantic without additional destruction in the United States. However, many islands and coastal communities have been evacuated and transportation and supply chains have ground to a halt as Americans prepare for a potential disaster to rival that seen in the Bahamas.

In addition to individuals preparing for the storm, many businesses are also feeling the direct effect of Dorian. Manufacturers and suppliers located in the southeast have been preparing for the impact for more than a week. This means rushed production, rushed delivery and around the clock monitoring of the storm’s trajectory. Many businesses are in a state of unknown paralysis as they’re unable to open business back up until the threat of Dorian is over.

Getting the labor force back to work will also be a challenge when Dorian finally passes later this week. Families are displaced across the country, many homes will be uninhabitable, and communities will still be picking up the pieces. Roads are likely to be dangerous or impassible as well, adding to concerns about shipping necessary products. Some aid organizations are choosing to deliver supplies like food and water by helicopter to areas already impacted since extensive debris litters roads and makes ground transportation impossible.

Hurricane Dorian’s Destruction

  •      •     Five confirmed deaths, though this number is anticipated to rise as rescue efforts persist
  •      •     Storm surges between 12 – 18 feet hit Grand Bahama Island, causing extensive flooding
  •      •     An estimated 13,000 homes have been completely destroyed or rendered uninhabitable (approximately 45% of all homes on Grand Bahama and Abaco)
  •      •     Winds reaching upwards of 185 mph
  •      •     60,000 – 62,000 people will need to be provided with food and water according to the Red Cross
  •      •     Airports are closed – Hurricane Dorian has caused more than 1,300 flights to be canceled within, as well as into and out of, the US.
  •      •     Several Florida ports have closed including Port Canaveral, Port Everglades, Jaxport, Port of Tampa Bay and the Port of Palm Beach

The recovery efforts in the Bahamas will undoubtedly be extensive. Many nodes of the supply chain were broken or stalled by Dorian and need to be fixed before recovery efforts can truly move forward. These are a few of the ways that the government and private organizations are working to keep supplies flowing and the supply chain operational:

  •      •     The Federal Motor Carrier Safety Administration expanded its Hours of Service regulations suspension to Alabama, Florida, Georgia, Kentucky, Louisiana, Missouri, North Carolina, South Carolina, Tennessee, Virginia, Puerto Rico and the U.S. Virgin Islands
  •      •     Police in Florida are escorting gas trucks in order to keep fuel moving to areas in need
  •      •     Highway authorities are reversing lanes to make room for evacuees
  •      •     More than 5,000 national guardsmen and 2,700 active-duty personnel have been deployed or positioned to respond in 24 hours or less

“We are in the midst of a historic tragedy in parts of the northern Bahamas,” said Prime Minister Hubert A. Minnis said at a news conference late on September 2, 2019. “Our mission and focus now is search, rescue and recovery. I ask for your prayers for those in affected areas and for our first responders.”

While the world watches to see the final results of Hurricane Dorian’s destruction, supply chain and logistics professionals work tirelessly to get things back to normal. Food, safe water, medical supplies, fuel, and just about every other necessity rely on the supply chain.

Kuebix TMS Sustainability Meat Alternative Labor Day

What’s Your Burger Made of This Labor Day Weekend?

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Beef burgers have been a summer barbecuing staple for generations of Americans. From Memorial Day to Labor Day families and friends will gather to share this favorite food in backyards across the country, not to mention year-long at many popular fast-food chains. The traditional beef burger is changing, however. Now, when you head to your neighborhood BBQ this weekend, you may find yourself with a wider selection of burger patty options than you expected.

Meat-free options, health-conscious choices, and other patty alternatives are currently trending with consumers. The $90B global meat market is facing disruption unlike anything it’s seen before, with new fake-meat products entering the market every day and consumers branching out from traditional beef products.

Here are a number of popular beef patty alternatives that you may find at your Labor Day barbeque this year.

Beef patty alternatives:

  • •     Fake-meat patties (Beyond Meat, the Impossible Burger, etc.)
  • •     Veggie burgers (MorningStar, Gardein, Dr. Praegers, etc.)
  • •     Mushroom burgers
  • •     Homemade black bean burgers

Why Are Beef Patty Alternatives So Popular?

According to FAIRR, a global network of investors addressing ESG issues in protein supply chains, “Alternative proteins, which include plant-based substitutes for animal-based foods, are expected to capture 10% of the meat market in 15 years and are now worth around $19.5 billion.” It’s easy to see that beef patty alternatives are popular, but the question still remains, why?

Sustainability

Consumers continue to place a heavy emphasis on sustainability, with 68% of US internet users citing product sustainability as an important factor when making a purchase. The Food and Agriculture Organization of the United Nations (FAO) reports that livestock supply chains account for 14.5% of all global anthropogenic GHG emissions, a number which includes the burning of fossil fuels worldwide. Many consumers are searching for a more sustainable way to continue to enjoy burgers without contributing as highly to global emissions.

Changing Diets

Changing diets are having an impact as well. You’ve probably heard about diet trends like Paleo, Low-Carb, Vegan, Vegetarian, Keto, and Low-FODMAP. These and many other diet types play a role in consumers desire for patty alternatives. Some diets focus on weight-loss, reduced-sodium content, eating more “whole” foods, eliminating allergies, improving digestion, and adhering to religious or personal ethics. Consumers are becoming used to having more options to choose from to fit their lifestyles and the burger industry is only the latest industry to see a great diversifying of products.

What Does This Mean for the Supply Chain?

Many large brands are jumping on the meat-alternative bandwagon, and this doesn’t just include burgers! Most recently, Burger King, KFC and Dunkin’ Donuts announced that they would be adding fake-meat products to their menus. Now, you can get a vegetarian Whopper, vegan fried chicken or a plant-based sausage breakfast sandwich. Conagra’s Gardein meat-alternative unit saw its share of the meat alternative market rise to 11% in 2018 from 6% in 2013. Not wanting to be left out of this lucrative market, Nestle is launching its own plant-based Awesome Burger this fall.

The surge in popularity of meat alternatives is having both positive and negative effects on the supply chain. In the short term, manufacturers are facing issues with production. In May, the Impossible Burger’s creator, Impossible Foods, was forced to hire a third shift for its production line and begin building a second line to double supply. Many brands have signed new contracts with food service companies which they may not be able to fully supply at first.

Some grocery chains are also struggling with where to shelve fake-meat products. Some have shelved Impossible Burgers and other meat-like options in the meat aisle, much to the confusion of some. Others are creating or expanding their vegetarian and vegan sections to accommodate new products. These short term problems are expected to slacken as production lines boost output, procurement teams become accustomed to a new category, and retailers adjust their offerings.

In the long term, meat-alternatives promise to be easier for supply chains. This starts with a reduction in the need for livestock which require their own complex supply chains to function. In general, plant-based products have fewer touch-points compared with meat-based products, meaning logistics teams will have fewer points to manage. Patties will also be easier to transport and have higher levels of food safety. Once the initial hurdle of transforming supply chains to accommodate new SKUs and product types is complete, this promises to be a new, lucrative industry for food manufacturers to compete within.

So, if you get to the grill this weekend and see more options than just the standard American beef patty, pick the one that works best for you and remember to have a great Labor Day weekend!

Kuebix Subscription Box Supply Chain

Subscription Boxes are Changing Supply Chains

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Subscription boxes are captivating the attention of consumers all over the globe. They satisfy almost every want and need imaginable (cheese, wine and beer, razors, clothes and makeup, etc.) in an innovative and entertaining way. Box subscribers typically pay a monthly fee for a box that is either ‘curated’ for them, meaning they have no control over what’s inside, or one that is based on their responses to a series of questions. 

While the process of signing up and receiving a package monthly is simple for consumers, the supply chain side of subscription boxes is a different story. Traditional e-commerce calls for shipping unique orders from individual customers off as they are received. With subscription boxes, companies have to send up to hundreds of thousands of nearly (if not completely) identical orders within a tight timeframe.

Entrepreneurs adopting this business model often fulfill orders in their homes until their subscriber count outgrows their available space. Options for completing orders of a larger size are dependent on the type of subscription. The popular choice is outsourcing fulfillment and inventory to a third-party logistics company (3PL). Businesses selling monthly subscriptions of alcoholic beverages have to deal with extensive industry subscriptions that can make outsourcing complicated. Conversely, businesses selling feminine hygiene products have no choice but to outsource in order to ensure that they are filling orders in an FDA-compliant factory. 

Subscription boxes “don’t change what consumers want, subscriptions get consumers to look at existing products in a new way,” explains Forbes. The element of surprise makes subscription boxes exciting, but they can easily lose subscribers if their products disappoint. Technology has been essential in helping the subscription box industry understand what their customers want from them through questionnaires and discussion forums. Boxes that are ‘curated’ are the safer approach because consumers know exactly what they are signing up for. Those that are at least partially customized face greater risk because they have to convince consumers that they want what’s inside.

Many subscription services offer free returns or even encourage subscribers to only “keep what they want.” Popular subscription boxes like Stich Fix, a fashion box, let buyers try the items on in the comfort of their own home before deciding what to buy and what to return. This means return labels need to be pre-printed and included with every box. Keeping track of which returns belong with which orders puts additional pressure on retailers.

Grocery and meal subscription boxes have also risen in popularity, with varieties to fit every schedule, diet and need. Companies offering subscription services on refrigerated products face the challenge of timing, as they need to keep products fresh in special cooler-like packaging. Knowing ahead of time the total number of orders is helpful for logistics professionals, but juggling thousands of individualized orders presents a new challenge for an industry that traditionally only shipped to grocery stores.

Beyond helping gage customer interest, technology plays a huge part in keeping the unique supply chain of subscription boxes organized. Adopting a transportation management systems (TMS) can help parcel shippers gain visibility over their supply chains. Detailed tracking information makes it easier for companies to ensure that their subscription boxes are being delivered on time. Not to mention keep subscribers informed as they eagerly await the arrival of their next subscription box!

Kuebix Green Environment TMS

Making Your Supply Chain Green Doesn’t Have to Cost You Green

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The transportation industry has a notoriously significant impact on the environment. Conventional vehicles and trucks release large quantities of greenhouse gas emissions, hydrocarbon and carbon monoxide, all of which are harmful to the environment and those inhabiting it. According to the Environmental Protection Agency, freight trucks contribute the second highest amount of pollutants into the atmosphere. Fortunately, there are changes that can be made throughout the supply chain to reduce the environmental footprint of the transportation industry as a whole.

One of the easiest changes to make in order to lessen a company’s impact is to implement a transportation management system (TMS). Beyond simplifying the process of supply chain management, a TMS gives companies an opportunity to transition into greener, more eco-friendly habits.

Optimize Your Truck Routes

Through the use of transportation management systems, logistics professionals are able to see all of their options for each load and make the most efficient decision possible. Shippers are able to transport as many loads as possible by optimally combining LTL shipments, all while driving the fewest number of miles. This significantly reduces the amount of fuel needed for everyday operations.

In terms of reducing a company’s environmental footprint, the mode of transportation selected is equally as important as the length of the route. Traditional methods make it difficult to simultaneously compare LTL, FTL, ground freight pricing and parcel rates for each individual order. Transportation management systems make this tedious task simple, allowing shippers to view rates for every possible mode of transportation on a single screen. This ensures that shippers are picking the least expensive and best suited mode possible, often saving space on trucks for other orders and reducing the number of trips necessary for delivery.

Reduce Supply Chain Waste

Traditional methods often leave logistics professionals battling a copious amount of forms and files. With technology, companies are able to replace paper with a single, cloud-based platform to hold all of their information. Transitioning to a TMS significantly reduces paper waste and saves money, simplifying processes so they can be done faster and leave less room for error.

The Perfect Match

When it comes to taking steps towards reducing the environmental footprint of your supply chain, integrating a TMS into your current business model is an obvious choice. Here at Kuebix TMS we offer a free version of our system, meaning that any size company can take advantage of transportation management technology. With a TMS, companies can speed up traditionally time-consuming manual processes, gain better visibility to their supply chain and optimize routes and loads more efficiently. All of these combine to lessen transportation’s harmful negative impact on the environment.

 

Final Mile Kuebix

The High Costs of Final-Mile Delivery

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The final mile of delivery is said to be the most expensive portion of the equation. BI Intelligence equates the share of the total cost of shipping for the last mile at 53 percent of delivery costs overall.

It is costly because it has a larger human element than the other segments of transportation with drivers going door-to-door to drop off packages. In an urban environment, the distance between deliveries can be a couple of flights of stairs, but in a rural scenario, drivers may have to drive miles and miles before they get to their next drop-off point.

If the last-mile delivery experience is poor, such as a package arrives damaged or is left out in the rain, then this can have a negative impact on a company’s brand. Sometimes deliveries have to be made several times because the recipient was not at home and the delivery requires a signature; this hikes up the delivery costs even more.

In some instances, the final mile delivery is the first personal contact between the consumer and the product. If the delivery is poor, then the brand is affected. Was the driver late? Is the packaging damaged? Was the delivery person rude? With customer expectations so high, a lot is at stake if a delivery goes awry.

The last-mile is expensive, inefficient and risky (for a firm’s reputation) – yet people want that “Amazon Experience” where they can track their package via a mobile phone app, with alerts if the package will be delayed and notices when a package has arrived. This type of transparency requires visibility and real-time tracking of orders.

Says Business Insider, “The costs and inefficiencies of the last mile problem have only been further compounded by the continuous rise of e-commerce in US retail sales, which has dramatically increased the number of parcels delivered each day, as well as raised customer expectations to include not just fast, but also free, delivery.” In other words, the issues surrounding the last mile are not going away.

So, what can you do?

Companies can ensure that their organization has complete visibility to any delivery delays, exceptions or missed appointments with the use of technology. Whether a company is delivering to a residence or business; utilizing owner operators or asset-based fleets; or is delivering a unique one-time shipment with a rate from the spot market, a transportation management system can help.

women in supply chain kuebix

Celebrating International Women’s Day with a Look at Women in Supply Chain

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In recent years, women have become increasingly integral in all things supply chain, an industry that has traditionally been male-dominated. A survey published by Gartner in 2018, however, shows “sustained strong representation of women in the senior-most ranks of supply chain organizations relative to other functions.” This study was conducted in partnership with an executive women’s networking group that focuses on advancing women’s supply chain leadership in the U.S. called AWESOME.

The War for Talent

In another study by Gartner, the Emerging Risks Survey, they identified the talent shortage to be one of the preeminent risks for companies worldwide heading into 2019. Right now, more than 50% of the professional workforce in highly developed markets are comprised of women, and this number is rising. Therefore, industries that do not put an emphasis on attracting, retaining, and advancing women could find themselves at even greater risk from the talent shortage. Research studies have additionally found that more diverse teams perform better and are more innovative.

The Driver Shortage

Initiatives to attract and retain women in supply chain management roles have begun to grow in popularity. Right now, 37% of today’s supply chain workforce are women and that number is expected to trend upward. However, the percentage of women drops significantly for truck drivers. According to the Bureau of Labor Statistics, just 6.2 percent of truck drivers in America are women. With the driver shortage causing issues for just about every company that ships freight, it’s crucial that the industry attract more female drivers to keep up with the demand as Baby Boomers age out of the workforce.

As wages continue to rise on average for truck drivers, there is perhaps only one prominent reason women haven’t flocked to become truck drivers, and that’s the unearned social stigma of driving a truck. Unlike some industries where women may find themselves paid unfairly in comparison with male counterparts, women and men are paid the same as truckers. Many carriers set their drivers’ wages based on mileage or hours driven. This should be a draw for women in the workforce.

Companies with fleets and carriers alike can expand their recruitment efforts to attract more women to overcome this gap. According to the American Trucking Associations, some companies are now paying truckload drivers roughly $53,000 each year and some private fleet drivers make up to $86,000 annually. Many companies are also offering increasingly competitive benefit options including flexible schedules and 401k options.

Women in the Supply Chain

While there is still a ways to go before women are equally represented in the supply chain industry, there are many encouraging signs. Trade show floors are more diverse than ever and women are increasingly enrolling in supply chain educational programs. According to SCM World’s poll of global universities, “women accounted for 37% of students enrolled in university supply chain courses.” Over time, it’s expected that women will have a proportional amount of positions in the supply chain industry.

How Breaking Away from a 3PL Helped One Company Save 30% on their Freight Spend

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Hyperline Cabling Systems, a company continuously striving to remain ahead of the curve, was dissatisfied with their third-party logistics provider (3PL) and recognized the need to regain control of their logistics operations by implementing a transportation management system (TMS).

In May of 2017, Hyperline made the switch to Kuebix TMS, making the Kuebix technology their logistics system of choice for their national distribution center in Buford, GA. Since implementation, Hyperline has been able to take control of their own supply chain and benefit from tremendous savings, increased flexibility and visibility, saving about 30% on their freight spend.

Hear what Otis Johnson, Warehouse Manager at Hyperline, has to say in the video below:

Supply Chain Change

The Supply Chain Industry’s Changing, Are You Keeping Up?

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It’s no secret that the world is changing at an unprecedented pace, and supply chain professionals are scrambling to keep up. The trends affecting the global marketplace are having an impact on an industry that has relied for years on a very tangible regimen of pickups and drop-offs. As technology continues to shape the world, supply chain executives must keep pace with the trends and incorporate them into daily processes to keep their companies competitive in the new, dynamic environment.

Concepts supply chain executives can leverage:

Machine Learning (ML) & Artificial Intelligence (AI) – Technology isn’t only becoming more widespread, the technology itself is getting better. Have you ever thought about the ads you see on your social media? If not, consider whether the ads appear catered directly to you, odds are a machine has learned your likes and dislikes. Technology now has the ability to ‘learn’ from accumulated data to predict future actions, like your shopping habits. This is particularly important for supply chains which can leverage predictive learning and AI to estimate unloading times, carrier performance, traffic delays, and more.

The Internet of Things (IoT) – The web of everyday objects connected to the internet is becoming more and more commonplace. Wearables (think FitBit) are everywhere, Dash Buttons let us order more detergent when we run low and even our homes are “smart,” letting us control the thermostat from anywhere with the touch of a button. This concept is rapidly being adopted by supply chains. Prominent among them is the ELD Mandate, a federal mandate requiring all trucks to monitor driving time to be compliant with hours of service (HoS) laws. RFID tags are being used more frequently too, letting supply chain professionals digitally track individual containers, pallets or even products.

Blockchain – Bitcoin is the largest example of a company using blockchain, but this concept isn’t only reserved for transferring money over the internet. Broken down into its simplest form, blockchain is a digital ledger that can be used to exchange, track transactions, make payments and sign contracts. It’s highly transparent, extremely efficient and scalable in nature. This new method of exchange is reshaping globalized trade, making it easier to interact with companies and customers abroad. Supply chains can use blockchain to keep better track of their products, deal in foreign currencies without the need of an intermediary and store better data for record keeping.

What do all of these concepts have in common?

Each one of these concepts is rooted in connecting people and processes together more efficiently via technology. All three make it easier for companies to access their customers, forge useful relationships and scale their businesses. One result of employing these connectivity strategies is a Network Effect where “more usage of the product by any user increases the product’s value for other users” (Evergreen). Each layer of connectivity serves to support the other users, building customer loyalty and adding value to the organization.  For supply chain professionals, this can mean providing better customer service, having better on time delivery rates and streamlining tracking and tracing processes.

Supply chain offices deserve their own network to build upon, one where they can find the latest technology to improve their operations and keep up with market trends. The Kuebix Global Logistics Community is serving just that purpose. As a collaborative group of shippers and carriers from around the world, members work together to discover opportunities, foster cost reductions and build trusted-partner relationships.

Kuebix SupplierMAX

The Recipe for an Unbeatable Inbound Freight Management Strategy

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Managing inbound freight operations is an ongoing challenge for businesses with large numbers of suppliers. Companies are impacted by the inefficiencies, low levels of visibility and lack of standardization associated with the management of their inbound freight. These problems are exacerbated when companies lack comprehensive strategies for obtaining the lowest possible shipping and unloading costs or a plan to improve the behavior of their suppliers. A complete strategy for inbound freight management needs to encompass the following three aspects; visibility, collaboration and accountability.

Visibility – Although companies control their own destinies on the outbound side of the equation, that level of control dwindles when it comes to inbound freight. In the end, the receiving company does not have full planning and visibility for shipment arrivals and dock reservations. To optimize their inbound, stakeholders can benefit from better visibility of information (e.g., knowing what carrier is being used, exact timing of deliveries, how much manpower is in the DC to load/unload shipments, etc.), real-time data sharing and the knowledge that everyone is working toward a common goal.

Collaboration – By using a comprehensive inbound freight plan based on a collaborative ecosystem of shippers, suppliers and carriers, companies can effectively establish a dynamic rating and unloading allowance program. As companies work in partnership with their suppliers to determine the most cost-effective method to handle each shipment – customer pick-up (CPU) or vendor controlled (VDS), the goal should be to reduce overall shipping costs. By giving suppliers choices, they’ll be able to pick the most effective service and billing procedure. Convert inbound shipments from VDS to CPU shipments only when it’s feasible, and then establish preferred rates with a select group of carriers to handle those inbound shipments at the lowest possible cost and best service type. Use a standard routing guide to establish a set of mandatory carriers that will be used for all VDS and CPU shipments. This will enable LTL pricing improvements, superior service levels and maximize opportunities for LTL consolidation.

Accountability – While companies can’t always control what their suppliers do or the efficiency of suppliers’ systems, they can implement Vendor Inbound Compliance Standards (VICS) to help improve supplier behavior. A comprehensive set of compliance procedures will establish rules and processes that must be followed by suppliers when making deliveries. These accountability levels should also extend to the company’s own supply chain/logistics department and procurement group, both of which play a role in ensuring that products get quickly from their origin to the distribution center (DC). The goal? Improve supplier behavior so that their inefficiencies are not wasting time and money at the DC. It’s also important that a company’s inbound strategy includes leveraging detailed analytics to measure the results of the program and take action where necessary to improve service with suppliers and carriers.

By following this general recipe, companies can work with specialists in inbound freight to develop an unbeatable inbound freight management strategy. But knowing what to do and being able to do it effectively are two entirely different hurdles companies need to jump. It’s for that reason Kuebix has developed SupplierMAX, a program where companies can leverage Kuebix’s technology and logistics experts to manage all or a portion of their inbound freight program. SupplierMAX improves supplier behavior and increases the efficiency of warehouses and distribution centers by incorporating a series of comprehensive strategies to improve inbound operations. To learn more about this program, click HERE to read the SupplierMAX press release in full.

Imported Steel and Aluminum Tariffs

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“My business is booming,” said one of our clients in the steel and metal industry. Another commented that “my business is through the roof!” We weren’t sure why until we asked, “What’s the big deal?”

It appears that steel and aluminum manufacturers, producers and distributors are enjoying a boost in revenues thanks to the tariffs on imported steel and aluminum that Trump is imposing. As a result, many of the companies that rely on metals affected by these tariffs aren’t sure what will happen, so they are stocking up on raw materials, parts and components.

The new tariffs will impose a 25 percent price increase on steel imports and 10 percent on aluminum to protect national economic security, effective March 23. The plan has been widely criticized by government officials and corporate America who feel the tariffs will cost U.S. jobs, raise consumer prices and hit American manufacturers.

Other countries are threatening trade wars. The EU has warned it will impose a 25 percent tariff on the $3.5 billion of American goods that it imports. Trump’s next move is to impose tariffs on up to $60 million of Chinese imports of technology, telecommunications and apparel.

Many businesses feel that a cost increase is on the way and will likely be pushed down through the supply chain to other businesses like beverages and automobiles. Some US companies that use steel and aluminum in their products may reduce production in the US in favor of foreign production where they can avoid cost increases. Other policymakers think that US manufacturers will no longer have to compete with foreign materials and can instead charge higher prices.

Since many aren’t sure what will really happen as a result of the tariffs, they are building up inventory levels, buying raw materials and stocking up on parts to keep ahead of price increases or lack of materials.

Instead of worrying about stocking up on inventory, Kuebix believes that a greater focus on reducing supply chain costs is needed. As transportation is one of the biggest expenses for a company, often up to 40%, ways to lower logistics costs while boosting efficiencies are a must in this uncertain economic environment.

By leveraging Kuebix TMS, retailers and manufacturers can quickly and easily receive better rates for any transportation mode. Our free TMS, Kuebix Shipper, can even be up-and-running the same day, so companies can immediately begin offsetting costs by receiving lower rates. And by upgrading to add modular features to optimize routes and consolidate loads from LTL to FTL where possible, companies can cut down on the total cost of goods and put money back into other needs, such as raw material purchasing.

Logistics professionals uncertain about the future of steel and aluminum imports can improve their companies’ outlook by utilizing technology to cut costs.

2018 Predictions

2018 Supply Chain Predictions

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In the book, The Living Supply Chain, the authors argue that, “Speeding up the supply chain is at the root of everything that is good: improved revenue, reduced working capital, higher profitability, and less obsolete inventory. Conversely, slowing down the supply chain is at the root of everything that is bad: working capital write-offs, reduced profitability, and slowing revenues.”

To “speed” up the supply chain is to invest in change and change will come with the digital transformation of the supply chain, which is the major focus for executives in 2018. Much change in the supply chain industry will be due to innovative technologies for digital transformations, along with the recent tax reforms, and the still-current driver shortage/capacity crunch. Digital transformation of the supply chain will change everything – for the better.

These are the innovative technologies that I predict companies must use to undergo this transformation within their supply chains:

Cloud-based technology deployments lower cost of ownership due to not having a large capital expenditure on hardware and upgrades. Cloud-based solutions are ideal for any size business because they can be scaled up as your business grows and are easier to set-up and manage.

Advanced Analytics will support real-time decision making based on data captured across the supply chain. With analytics, businesses can more effectively predict and fill demand. You can also manage relationships with carriers, suppliers and customers while improving processes. Using advanced analytics in a transportation management network to look at historical traffic patterns, you can plan a truck’s route that takes into account time delays for more accurate arrival times.

Tracking and Tracing of raw materials through manufacturing to the end customer must take on Amazon-like capabilities, meaning customers will know where their orders are at any one time, just like when you order from Amazon. With track & trace, you will get deep visibility to SKU-level information from first-mile to last-mile, including the tracking of costs to better monitor transport spend. Communications with customers will be proactive instead of reactive, alerting customers if their order will be late or when it will arrive.

Supply Chain Visibility will make data collected from end-to-end across the supply chain available to all stakeholders, giving them greater control and visibility into what is happening across the enterprise. You can uncover roadblocks within your supply chain that could lead to delays in shipping.

Blockchain will provide interconnectivity between ledgers of supply chain trading partners, enhancing traceability of transaction history. Automating the flow of information among trading partners provides transparency and boosts efficiencies. Blockchain works with cryptocurrency to determine payment amounts, allowing drivers to be paid as they complete parts of their journey. This completely removes the transport broker from the equation, giving drivers access to quicker settlement. However, blockchain is still a technology that needs further development before it can be proved useful to some businesses.

Artificial Intelligence initiatives require specialists who are hard to find, potentially stalling any projects. AI utilizes algorithms to detect patterns in vast volumes of data and interpret their meaning such as predicting whether a carrier will be on-time based on weather conditions and past performance.

Predictive Analytics, often combined with Artificial Intelligence, helps shippers understand, automate and optimize their supply chain processes to gain better efficiencies. Predictive analytics provides shippers with actionable intelligence to guide the decision-making process, helping you to reduce costs and optimize operations. Scorecards on carrier performance can alert shippers on which carriers can better meet their service obligations.

The Internet of Things (IoT) – More devices, from pallets to trucks will have sensors embedded to transmit status and performance data. This real-time information will be used for monitoring everything from equipment health to asset locations to order tracking and more. Advanced analytical systems use the data to uncover trends that lead to performance improvements and cost reductions.

Kuebix TMS is a game-changer for your business in 2018, regardless of the company size because Kuebix offers advanced applications to meet the needs of even the most complex supply chain operations. Kuebix TMS finds the best freight rates for all modes, books and tracks shipments, audits and manages transport finances and utilizes advanced analytics to measure and monitor trends and performance activities. Kuebix TMS offers full tracking and visibility of your freight expense down to the SKU level across every mode and along every step of its journey.

The Future of Freight: Why We Launched a Free Transportation Management System (TMS)

The Future of Freight: Why We Launched a Free Transportation Management System (TMS)

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In October of 2017, Kuebix launched its free transportation management system (TMS), Kuebix Free Shipper. This platform offers unlimited rating, booking and tracking of TL, LTL, and parcel freight. It was the first step in the evolution of transportation management systems.

Why it’s Important

In the past, it was common practice to manage freight with spreadsheets and other manual processes or outsource to third-party logistics providers, both of which soaked up vast amounts of valuable time and money. With Kuebix Free Shipper, businesses of any size have the opportunity to streamline operations with a single cloud-based platform, removing room for potential miscommunication and monotonous tasks.

Bart De Muynck, Vice President of transportation technology research at Gartner, says that “Transportation management systems (TMS) have become the ‘must have’ for companies that – working under the pressure of e-commerce and omni-channel – need to move beyond clipboards, spreadsheets, and phone calls.”[1]

Though transportation management systems have been around for some time, the implementation and ownership costs typically associated with TMSs have been too high for small and midsize companies. Kuebix Free Shipper removes the cost barrier for those companies that only need a base TMS. Companies looking for advanced functionality can take advantage of Kuebix’s modular and premier features with an upgrade to Kuebix Business Pro or Kuebix Enterprise. The TMS adjusts seamlessly to fit the needs of any size business so that logistics operations can be performed at peak efficiency.

Free TMS Features

Regardless of budget or company size, Kuebix Free Shipper allows users to:

  • • View and negotiate LTL, TL, and Parcel rates and transit times
  • • Get spot quotes for volume freight
  • • create, book and manage shipments
  • • Access and print BOLs and shipping labels
  • • Receive real-time tracking updates on shipments, providing more accurate information to pass onto customers

Improving supply chain visibility and efficiency is made easy through the adoption of Kuebix Free Shipper. Companies who experience growth and find that they need more advanced features can upgrade at any time rather than jumping ship and searching for another TMS platform to manage their logistics operations. Kuebix TMS has the unique flexibility to fit the mold of any company at any stage of their growth.

What Customers Say About Kuebix’s Free TMS

 

Marc Orlando, Logistics Manager at hardware and software manufacturer, Bizerba, says that “Kuebix has allowed us to create a marketplace for our business with our carriers and help us better manage the day-to-day logistics operations with real-time information in ways we were not able to do previously.”

Through the implementation of the TMS, Bizerba was able to improve visibility across its supply chain and improve their operations through the insight they obtained as a result of this change. Additionally, having shippers and carriers utilizing the same platform has improved communication between everyone involved in the shipping process.

Gunner Kennels, a dog kennel manufacturing company, used a 3PL to manage their freight prior to partnering with Kuebix. Brandon Beasley, Vice President of Operations at Gunner Kennels, says that they “realized we were wasting a lot of money by using a 3PL to manage our transportation operations. We knew that if we had contracted rates directly with carriers, we could save a lot of money.”

Transparency throughout the supply chain is vital in terms of ensuring that your company is getting the best rates. Gunner Kennels realized that sacrificing visibility and trusting an outside party to handle their operations was no longer worth the cost. They wanted to have more direct involvement in their transportation operations to ensure that they were saving as much money as they could. By implementing Kuebix, Gunner Kennels was able to part ways with their restrictive 3PL and make this vision possible.

Our Goal

Kuebix has set out to eliminate the price barrier that traditionally excluded small to midsize businesses and establish a community of shippers by making transportation management systems more widely accessible throughout the supply chain. With Kuebix Free Shipper, the amount of time and effort it takes to compare rates and set up shipments is drastically reduced. Users have access to all their negotiated and spot rates to compare and choose the rate that best fits their shipping needs.

Kuebix is challenging the way shippers traditionally think about transportation management systems and ensuring that these digital advantages are not reserved only for larger companies. Establishing and maintaining this all-inclusive platform not only allows companies to save time and money, but also collaborate through visibility across their supply chains.

Benefits of Scale

By offering a free TMS that shippers can easily add modular or premier applications to with the choice to upgrade, Kuebix is creating a community like no other in the industry. Kuebix’s Shipping Community has brought together 16,000+ shippers of all sizes and with all different business needs.

Every shipper that uses Kuebix TMS expands the Kuebix Shipping Community and the community is connected to a vast network or carriers, brokers, freight forwarders and carrier marketplaces creating an ecosystem that generates efficiency for all stakeholders. This ecosystem of supply chain professionals is formed by all shippers, brokers, suppliers, and carriers actively using the cloud-based platform, therefore creating more opportunities with scale. Key among these opportunities is the chance to match available freight with available capacity. The larger the community, the bigger the potential benefits through greater collaboration. The community continues to grow as we add new, valuable features like Kuebix Community Load Match for our users.

[1] https://www.logisticsmgmt.com/article/2019_transportation_management_systems_tms_market_update_keeping_pace_with

TMS Options Proliferate, But Not for All

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This is the second in a three-part series that tracks the evolution of the TMS from the late 1990s to today. In last week’s piece I discussed the emergence of the TMS. Next week I’ll discuss the future.

When we last left transportation management systems (TMS), the high price and staff requirements of the early systems had created two groups of freight shippers, the haves, which could afford the high expense of on-prem big-box systems, and a far larger group of have-nots.

The needs of shippers struggling to replace manual processes with automation, drove widespread developments of new products, services and third parties. Most of these used different approaches for addressing the huge need for efficiency in supply chains. Meanwhile, the maturity of cloud computing was driving changes across industries and was just beginning to gain traction in logistics.

The lineup of options for shippers looking to improve their logistics operations included on-site system vendors, services from 3rd party logistics providers, and a shallow pool of companies looking to leverage the software-as-as-service model and approach to locating system intelligence.

Word from Above

But what lead to cold sweats for shippers was all the best practice and success stories that the tech trades and even the business media were running. They featured pioneering companies that had implemented a solution to cure their shipping ills and were said to be on the leading edge of technology use for business gain.

That started the deluge of direct questions from C-level executives.

Are we checking out TMSs? Is this something for us? Can we save money? Why haven’t we done this? C-level execs started believing that their companies could quickly turn their freight shipping into a profit center from a cost center.

It didn’t matter that the price for a TMS was too high or that many of the options covered one aspect of shipping but not many others.

TMS Affordability?

You’d think for sure that a growing group of TMS options would benefit all shippers desperately seeking freight intelligence. The reality was that TMSs were still not accessible to most businesses in the U.S. The have-nots could find affordable freight handling options, but that meant paying a third party to handle their freight shipping function.

For most, price as in the TCO, was the single largest impediment to implementing a system that would enable logistics professionals to truly manage their freight transportation. Isn’t it ironic that the sticker price of TMS options and alternative is what was keeping the have-nots from cutting costs and generating new revenue?

Clear Forecast

With the maturity of the cloud, it became clear that locating a TMS software product on a platform in the network  and sold as-a-(monthly)-service would break down the many barriers to implementation that so many businesses of all sizes were up against.

This opportunity sure got the attention of shippers who had all but given up on an on-site TMS and wanted something that was both flexible in architecture and easier to cost justify to their bosses.

An Easier Sell

Many enterprise freight shippers moved from controlled freight chaos to the cloud and found that advances in platform technology and automation from TMS software made for easier installation and a faster return on investment.

But while a growing mass of businesses were putting cloud-based TMSs to the test – and turning a cost center to a profit center, SMBs, which I believe make up over 90% of all U.S. businesses, still couldn’t justify a TMS spend. Some outsourced their operations to 3PLs. Others were stuck with their inefficient status quo.

Believe me, whether you’re a kid or a shipping professional nothing’s worse than watching someone else get, enjoy (and profit from), something great that you can’t have.

In the final installment of this three-part series, I’ll explain how important changes in the evolution of the TMS will define the future of freight shipping. Thanks for staying tuned!

 

 

 

 

TMS for All? – Life in the Slow Lane

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This is the first in a three-part series and is set in the late 1990s.

When it came to understanding what an early TMS could do for shippers, it was a classic example of the saying “You don’t know what you don’t know.”

Buried in paper, faxing, emails and phone calls only to have skilled staff manually enter order data into Excel spreadsheets, shipping managers at small and midsize businesses had no idea what cost cutting and revenue generation opportunities they were missing.

These logistics professionals, however, became painfully aware of problems with this approach when mistakes were made, deliveries were delayed, costs were added and actual shipping limped along at a snail’s pace. Even worse, freight costs were climbing.

And nobody was happy. Shippers had no means to apply their logistics and supply chain skills. AR and AP were calling in with problems. Customers experienced a lack of consistency with some deliveries. And those seeking the status of their shipments faced long waits or went without. Updates were available in unreal time.

All this sounds like a scary movie, with shippers lacking visibility into and control of their supply chains, but it was real life before small and midsize business (SMB) had any technology-driven systems to help shoulder the freight shipping load. It’s tough to solve a pressing problem without a solution.

Is Bigger Better?

While SMBs struggled mightily with daily shipping operations, logistics managers at some of the world’s large corporations were beginning to implement something called a TMS. Back then, what passed for a transportation management system was essentially an on-site hardware platform with software.

The TMS was pricey to say the least, took forever to implement and needed staff on hand to handle its care and feeding, which included installing seemingly endless software upgrades and scrambling to react in the event of an emergency at the location at which it resided. (Single point of failure).

Early big-box TMSes were quite expensive.

And having spent megabucks on the TMS and committed to a multi-year contract for the onsite system, came almost unimaginable pressure from C-level execs to start showing a ROI, after the big-box-and-software system finally went live.

Back to the Past

I don’t have any issues with early TMSes whatsoever, especially as I was in the freight shipping business during this era. The options were seriously limited and were limited to the large corporations willing to spend and commit big to one of these on-prem box systems.

Remember, it was the onsite approach or no approach at all. Everything was on site without viable hosted options way back then. Phone systems, mainframes, data centers, storage, servers and all software were at the company site. And all these key IT infrastructure and processing elements require administration, management, monitoring and oversight.

Ask around to see who remembers long-distance calls, wired phone systems or life before real working from home. And you thought VCRs flashing 12:00 are funny.

The early days of TMSes were primitive

The Road Ahead

All the while, a new era of computing was dawning that would give rise to the broader application of advanced technology that would set the stage for the early days of freight intelligence and TMS options that more companies and their overworked logistics departments could begin to consider for their shipping needs.

Tune in next week, as I continue the freight shipping story forward toward more modern-day technology approaches that gave rise to TMS solutions and alternatives for a broader base of businesses.

Everyone wants to get their hands on advanced new tech products and service, but only a subset can afford it. Change that with a free 30-day trial of Kuebix TMS today.