A New Era for Fast Food Restaurants & Supply Chains

/in , , /by

The meaning behind the term “fast food restaurant” is just as it sounds – restaurants that prepare food quickly and easily for customers, often in a drive-thru layout, fall under this category. Common examples include McDonald’s, Burger King and Wendy’s. These three establishments have been popular amongst consumers for years – whether it’s a parent grabbing dinner for their kids after a long day at work or a quick stop in the middle of a long road trip, these restaurants have delivered.

Despite its immense success in the traditional fast food format, Wendy’s has started exploring other options to better connect with their consumers. Mobile order and delivery are huge trends within the industry right now, both of which the fast food chain has kept up with. Their U.S. digital business grew to be 7.5% of sales in Q1 of 2021, up from 6% the previous quarter. Wendy’s attributes this to a shift in consumer demand. 

The pandemic has left many consumers in search of convenient, off-premise experiences. In response, Wendy’s has started redesigning its stores and even designing some locations that are drive-thru only. Equipped with ample outdoor seating, this type of store will make it much easier for customers to pick up mobile orders and delivery drivers will be able to move in and out of the line even faster.

To accommodate the growing number of delivery orders even further, Wendy’s is starting to implement “ghost kitchens”. The term refers to fast food restaurants that don’t have a dining room or a way for customers to order in-person and take their order home. Ghost kitchens exist to support delivery orders placed online, which are a significant part of the chain’s digital business growth so far this year.

While the thought of a Wendy’s where it’s impossible to order food seems unusual, it has the potential to speed up delivery times and drive down cost in some locations. Areas that have a high volume of online delivery orders can benefit from a store focused strictly on meal production. By eliminating the need for a dining room or outdoor patio, the chain reduces the amount of space necessary for construction and saves a significant amount of money. Popular chains including The Halal Guys, Sweet Green, and Chick-Fil-A have also partnered with the leading ghost kitchen brand, Kitchen Unlimited, to offer delivery out of a shared commercial kitchen.

Wendy’s continues to identify and incorporate different location styles into its operations. However, the chain never picks one style to go with and gets rid of the other options. While a uniform experience used to be more important than anything for restaurants, the latest shift in consumer demand has them more focused on meeting the customer where they’re at. It’s more important for the restaurant to fit whatever environment the consumer happens to be in rather than consistency in style and appearance. 

Consumers are focused on convenience and simplicity, so much so that even fast food restaurants are starting to explore ways to fit the latest mold. As the number of restaurant styles and online order volume continues to grow, supply chains will have to work extra hard to keep up with varying inventory and resource needs!

The Evolution of Online Shopping

/in , , /by

Online shopping is extremely popular because of its convenience and wide range of available products. Even though we don’t necessarily notice, the process and platforms behind online shopping are constantly changing in response to consumer priorities and interests. 

Online Shopping on Social Media Platforms

The pandemic pushed online shopping further into the spotlight because it gave consumers a safer, contactless way to shop during a time of major uncertainty. With people spending so much time at home over the past year, social media’s role in everyday life has become heavily emphasized and resulted in the creation of social-media driven commerce. 

While most social media platforms have always incorporated product advertisements into their layout, both paid and free product promotion is becoming more prominent in the content itself. Influencers are posting videos and pictures about their experience with products and sometimes recommending them to their audiences. Now with social-media driven commerce, users can purchase the products mentioned in conversation without ever leaving the app. It’s a small change, but it makes the entire process easier and allows them to keep scrolling through their feed as soon as the purchase is complete. 

Consumer Trends Set to Impact the Process

The rise of online shopping is not set to slow down anytime soon. The pandemic has driven many consumers to shop online for typically in-person items like groceries online, but it’s the convenience of the process that keeps them coming back. However, shifts in consumer priorities and trends will still impact the future of online shopping.

One of the most significant trends that has become more prominent in recent years is consumers feeling more sensitive about price. Last year was unpredictable for everyone and many people feel more conscious of their spending as a result. Keeping prices on the more affordable side of the spectrum will make online shoppers more comfortable with checking out unless they are convinced that the value is really there.

Additionally, consumers have become increasingly concerned with the sustainability and health factors associated with what they’re buying. Consumers are more inclined to shop from companies with active sustainability initiatives. Growing environmental concerns have made everyone feel encouraged to do their part and make more conscious decisions whenever possible. Food, beverage and skincare products that have clearly displayed nutrition labels with ingredients consumers can recognize are having more success online and in stores. Shoppers are much more concerned with what they’re putting in their bodies and on their skin. Feeling like they know what a product is made of and can trust the brand behind it is important to online shoppers.

The process of online shopping and how brands are advertising their products will always be subject to change in order to keep up with shifts in consumer trends. Supply chains have their work cut out for them as they keep up with fluctuations in demand and preference all while keeping stores and warehouses for online order distribution stocked!

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

/in , , /by

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!

Gartner Research Catalog Image-01

Trends in the Supply Chain and Their Impact on the Transportation Management System Market

/in , , /by

This year has reminded everyone to expect the unexpected – even in the supply chain which is one of the most unflappable industries out there! Covid-19 has disrupted the logistics operations of companies throughout the U.S. Technology is rapidly advancing as new tools and integrations become available and consumer shopping habits have been directly affected in the process. In order to overcome these and many other challenges, companies can leverage the latest supply chain technology and find mutually beneficial opportunities with one another as part of connected logistics networks. Understanding the state of the industry and how it relates to the TMS market is the first step any company trying to ‘weather the storm’ must understand.

We believe Gartner’s recently published research titled Gartner Research: Macro Trends Affecting the Transportation Management System Market offers insight regarding current trends that are influencing the buying process for transportation management systems (TMS) and is a great place for any potential technology user to start with. It’s important that logistics professionals understand these trends as it will empower them to make better informed decisions when selecting technology for their supply chain. 

 

Leverage this report to:

  • •   Evaluate key factors such as usability, ease of implementation, and carrier networks
  • •   Understand important trends shaping the TMS industry
  • •   Identify TMS vendors that bring innovation to a changing marketplace

 

One of the major trends affecting the buying process for transportation management systems is the constant maturing of technology. As technology advances, consumer expectations heighten. Think of it like the “Amazon Effect.” Now that the world knows 2-day shipping is possible, everyone starts to expect this from every retailer, not just Amazon. Factors like user experience and implementation times are becoming more important. TMS providers have to work harder to meet these expectations, but it’s up to the potential buyer to determine whether they will be up and running quickly enough to generate rapid ROI. Additionally, if the TMS doesn’t provide a user-friendly user interface (UI), it doesn’t matter how many bells and whistles the technology has if teams won’t adopt it into their everyday operations.

Nearly all transportation management systems on the market today are cloud-based, even those legacy systems with their main capabilities based in hardware are trying to play catch up. Solutions that are cloud-based make it easier for users to store data and regularly update software. As more digital networks and platforms arise in the transportation industry, providers continue to expand their capabilities and work together to create partnerships and integrations.

Technology is constantly evolving and as a result, shippers are thinking ahead before investing in a TMS. Decision making is no longer focused solely on the software’s current features but rather a combination of its current functionality and efforts to expand partnerships and capabilities. Shippers want a transportation management system that will be able to grow alongside their needs and take on new challenges in an uncertain market.

These trends and their impact on the market are important for shipping companies planning to grow their business in 2021. Understanding the effects of Covid-19, a changing technology landscape and consumer expectations will help any company make the best decisions for their supply chains in the face of uncertainty.

Gartner, Macro Trends Affecting the Transportation Management System Market, 17 September 2020, Bart De Muynck, Brock Johns, Carly West, Oscar Sanchez Duran

Kuebix TMS Cyber Monday Black Friday Statistics

Did Black Friday/Cyber Monday Tax Your Logistics Operation?

/in , , , , , /by

 

This year’s Thanksgiving, Black Friday and Cyber Monday retail sales broke records. According to Shopify, over 25.5 million consumers made a purchase from a Shopify merchant on Black Friday, Cyber Monday, or in between. Shoppers spent an average of $83.05 per order and focused heavily on makeup, mobile phone accessories and jackets. Cell phones dominated the holiday shopping season with 69% of sales made on phones or tablets.

Black Friday and Cyber Monday sales reached over $2.9 billion, a huge success in comparison to last year’s $1.8 billion. It’s estimated that at the peak of the shopping frenzy, shoppers were spending over $1.5 million per minute!

The Aftermath

Now that orders have been placed, they must be delivered. As a shipper, you should ask yourself the following questions:

  • • Can your logistics operation keep up with the velocity of orders speeding through your e-commerce engine?
  • • Will you have to pay expedited freight charges to make sure customers get their orders on-time?
  • • Can you quickly find capacity with your contracted carriers to stay ahead of demand?
  • • Can you easily contract with carriers for any mode to book a load?
  • • Can you effortlessly compare your contracted rates to the spot market to find a better rate?
  • • Once the holiday rush is all over, can you look historically at shipment data to find areas for improvement?

With Kuebix’s transportation management system (TMS), shippers can do all of the above – and more!

Kuebix Shipper is a free TMS that allows shippers of any size to rate, book and track shipments via LTL, TL and Parcel – all in about the time it takes to purchase an airline flight online. Join our online global community of shippers to help match demand with capacity during this busy holiday season.

Kuebix Business Pro is a full-service TMS for multiple users with advanced analytics and carrier scorecards, freight bill audit and pay, claims management and integrations with other solutions. Using Kuebix Business Pro during the busy holiday season allows you to uncover rate exceptions and discrepancies for added savings; integrate your order management system for streamlined transport planning; and leverage analytics to reduce freight spend.

Kuebix Enterprise is a configurable TMS that offers advanced applications to meet your logistics operation’s needs. Managed services provide shippers partnerships with Kuebix freight experts to uncover even greater efficiencies and savings, with full-tracking and visibility of your freight from the dock to your customer’s doorstep.

 

 

 

By choosing the right TMS, retailers can keep up with the exponential growth of their e-commerce operations during this holiday season and beyond!

 

The Top 3 Commodities Shipped By Truck in all 50 States

The Top 3 Commodities Shipped By Truck in all 50 States

/in , , , , /by

Have you ever been driving on the highway and wondered what kind of freight was on the truck beside you? Unless it’s a clearly defined Coca-Cola or retail branded truck, you probably have no clue. That’s why we’ve put together this list of the top ground freight commodity types shipped by truck in each of the 50 states! Check out the top three commodity types in your state to guess what you might be passing on the highway.

Curious about other types of freight? Check out this dashboard from explore.dot.gov

Top Three Ground Freight Commodities Transported via Truck Between Oct 2018 – September 2019 (by value & weight)

Alabama

By Value

  1. Mineral Fuels
  2. Vehicles Other than Railway
  3. Electrical Machinery

By Weight

  1. Mineral Fuels
  2. Iron and Steel
  3. Salt; Sulfur; Plaster and Cement

Alaska

By Value

  1. Iron and Steel
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Iron and Steel
  3. Vehicles

Arizona

By Value

  1. Electrical Machinery
  2. Vegetables and Roots
  3. Computer Parts

By Weight

  1. Vegetables and Roots
  2. Fruit and Nuts
  3. Inorganic Chemicals

Arkansas

By Value

  1. Electrical Machinery
  2. Vehicles
  3. Computer Parts

By Weight

  1. Iron and Steel
  2. Electrical Machinery
  3. Computer Parts

California

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Mineral Fuels
  2. Vegetables and Roots
  3. Fruit and Nuts

Colorado

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Vehicles

By Weight

  1. Computer Parts
  2. Electrical Machinery
  3. Vegetables and Roots

Connecticut

By Value

  1. Pearls; Stones; Metals and Imitation Jewelry
  2. Zinc
  3. Electrical Machinery

By Weight

  1. Zinc and Articles
  2. Copper and Articles
  3. Sugars and Confectionery

Delaware

By Value

  1. Works of Art and Antiques
  2. Measuring and Testing Instruments
  3. Electrical Machinery

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Mineral Fuels
  3. Electrical Machinery

Florida

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Fruit and Nuts
  3. Vehicles

Georgia

By Value

  1. Electrical Machinery
  2. Vehicles
  3. Computer Parts

By Weight

  1. Beverages
  2. Sugar and Confectionery
  3. Computer Parts

Hawaii

By Value

  1. Computer Parts
  2. Measuring and Testing Instruments
  3. Electrical Machinery

By Weight

  1. Beverages
  2. Computer Parts
  3. Electrical Machinery

Idaho

By Value

  1. Vegetables and Roots
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Fruit and Nuts
  2. Preparations of Vegetables; Fruits and Nuts
  3. Vegetables and Roots

Illinois

By Value

  1. Beverages
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Beverages
  2. Mineral Fuels
  3. Electrical Machinery

Indiana

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Vehicles

By Weight

  1. Computer Parts
  2. Electrical Machinery
  3. Vehicles

Iowa

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Computer Parts
  3. Furniture

Kansas

  1. Aircraft
  2. Electrical Machinery
  3. Special Classification Provisions

By Weight

  1. Iron and Steel
  2. Computer Parts
  3. Rubber and Articles

Kentucky

By Value

  1. Computer Parts
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Computer Parts
  2. Salt; Sulfur; Plaster and Cement
  3. Vehicles

Louisiana

By Value

  1. Mineral Fuels
  2. Vehicles
  3. Iron and Steel

By Weight

  1. Mineral Fuels
  2. Salt; Sulfur; Plaster and Cement
  3. Iron and Steel

Maine

By Value

  1. Aluminum and Articles
  2. Vehicles
  3. Not Knitted or Crocheted Apparel

By Weight

  1. Aluminum and Articles
  2. Vehicles
  3. Vegetables and Roots

Maryland

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Sugars and Sugar Confectionery
  2. Salt; Sulfur; Plaster and Cement
  3. Vehicles

Massachusetts

By Value

  1. Electrical Machinery
  2. Measuring and Testing Instruments
  3. Computer Parts

By Weight

  1. Paper and Paperboard
  2. Measuring and Testing Instruments
  3. Electrical Machinery

Michigan

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Computer Parts
  3. Salt; Sulfur; Plaster and Cement

Minnesota

By Value

  1. Computer Parts
  2. Measuring and Testing Instruments
  3. Electrical Machinery

By Weight

  1. Fruit and Nuts
  2. Computer Parts
  3. Iron and Steel

Mississippi

By Value

  1. Electrical Machinery
  2. Vehicles
  3. Computer Parts

By Weight

  1. Iron and Steel
  2. Organic Chemicals
  3. Electrical Machinery

Missouri

By Value

  1. Electrical Machinery
  2. Vehicles
  3. Computer Parts

By Weight

  1. Electrical Machinery
  2. Computer Parts
  3. Glass

Montana

By Value

  1. Vehicles
  2. Tobacco
  3. Computer Parts

By Weight

  1. Vehicles
  2. Tobacco
  3. Computer Parts

Nebraska

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Iron and Steel
  2. Vehicles
  3. Inorganic Chemicals

Nevada

By Value

  1. Electrical Machinery
  2. Beverages
  3. Toys; Games and Sport Equipment

By Weight

  1. Beverages
  2. Miscellaneous Articles of Base Metals
  3. Electrical Machinery

New Hampshire

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Measuring and Testing Instruments

By Weight

  1. Computer Parts
  2. Electrical Machinery
  3. Measuring and Testing Instruments

New Jersey

By Value

  1. Electrical Machinery
  2. Measuring and Testing Instruments
  3. Cereals and Flour

By Weight

  1. Cereals and Flour
  2. Fruit and Nuts
  3. Electrical Machinery

New Mexico

By Value

  1. Measuring and Testing Instruments
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vegetables and Roots
  2. Live Animals
  3. Plastics and Articles

New York

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Beverages

By Weight

  1. Electrical Machinery
  2. Computer Parts
  3. Salt; Sulfur; Plaster and Cement

North Carolina

By Value

  1. Computer Parts
  2. Electrical machinery
  3. Plastics and Articles

By Weight

  1. Plastics and Articles
  2. Organic Chemicals
  3. Vehicles

North Dakota

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Vehicles
  2. Iron and Steel
  3. Computer Parts

Ohio

By Value

  1. Computer Parts
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Computer Parts
  2. Vehicles
  3. Electrical Machinery

Oklahoma

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Article of Iron and Steel
  3. Iron and Steel

Oregon

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Iron and Steel
  3. Vehicles

Pennsylvania

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

Rhode Island

By Value

  1. Vehicles
  2. Measuring and Testing Instruments
  3. Computer Parts

By Weight

  1. Vehicles
  2. Computer Parts
  3. Articles of Iron and Steel

South Carolina

By Value

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

By Weight

  1. Vehicles
  2. Electrical Machinery
  3. Computer Parts

South Dakota

By Value

  1. Vehicles
  2. Computer Parts
  3. Paper and Paperboard

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Paper and Paperboard
  3. Computer Parts

Tennessee

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

Texas

By Value

  1. Computer Parts
  2. Electrical Machinery
  3. Vehicles

By Weight

  1. Mineral Fuels
  2. Salt; Sulfur; Plaster and Cement
  3. Vehicles

Utah

By Value

  1. Pearls; Stones; Metals and Imitation Jewelry
  2. Vehicles
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Cocoa and Cocoa Preparations
  3. Plastics and Articles

Vermont

By Value

  1. Electrical Machinery
  2. Computer Parts
  3. Meat and Edible Offal

By Weight

  1. Electrical Machinery
  2. Meat and Edible Offal
  3. Vehicles

Virginia

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Vehicles
  2. Vegetables and Roots
  3. Computer Parts

Washington

By Value

  1. Vehicles
  2. Computer Parts
  3. Electrical Machinery

By Weight

  1. Salt; Sulfur; Plaster and Cement
  2. Vehicles
  3. Wood and Articles

West Virginia

By Value

  1. Computer Parts
  2. Vehicles
  3. Special Classification Provisions

By Weight

  1. Articles of Iron and Steel
  2. Computer Parts
  3. Vehicles

Wisconsin

By Value

  1. Electrical Machinery
  2. Measuring and Testing Instruments
  3. Computer Parts

By Weight

  1. Electrical Machinery
  2. Computer Parts
  3. Vegetables and Roots

Wyoming

By Value

  1. Computer Parts
  2. Vehicles
  3. Iron and Steel

By Weight

  1. Computer Parts
  2. Articles of Iron and Steel
  3. Iron and Steel

 

3 Times Social Media Upended the Food & Beverage Supply Chain

3 Times Social Media Upended the Food & Beverage Supply Chain

/in , , , /by

Social media has changed every industry and the supply chain hasn’t escaped unscathed. In fact, social media has been behind some of the biggest, and most well-publicized, disruptions in the supply chain over recent years. It’s a question of supply and demand. In the past, forecasters were able to rely on historical data to approximate how much of a certain product would be needed. Now, viral videos, tweets, and even memes can throw off those calculations severely by influencing customer expectations.

This phenomenon is particularly apparent for food and beverage supply chains that deal with hundreds of thousands of sales each week of products with short shelf lives. Huge upticks in sales on a particular product can disrupt production and test the agility of procurement and logistics teams to keep up. Below are three examples of times social media upended the food & beverage supply chain.

Starbucks Gets An Unexpected Endorsement

Early in 2019, Starbucks’ Cloud Macchiato got an endorsement on Twitter by Ariana Grande, a wildly popular singer, songwriter and actress. Grande tweeted about how much she loved the new iced drink and her fans, self-proclaimed Arianators, rushed to their local Starbucks locations to purchase their own.

Senior Vice President and Chief Procurement Officer at Starbucks, Kelly Bengston, recalled how the company hadn’t counted on the huge popularity of the drink brought about by Grande’s social media followers and fans. Speaking in regards to the increase in demand, Benston said, “It creates an amazing opportunity to test how agile your teams are… How do you get to business? How can you move it from store to store?”

The challenge for Starbucks lay in judging how much product was needed to satisfy fans while the Tweet was trending on social media while not overbuying to the point where there was wasted product. It’s a delicate balancing act that forecasting cannot fully take into account.

Rick & Morty Joke Presents McDonald’s With an Opportunity

Disney’s Mulan was released more than 20 years ago. To promote the release of the movie, which takes place in Han dynasty China, McDonald’s added Szechuan Sauce as a condiment option for their Chicken McNuggets. The sauce was a limited release and had been largely forgotten until 2017 when social media would resurrect it and disrupt McDonald’s supply chain.

After an episode of Adult Swim’s popular show Rick and Morty referenced the long-forgotten dipping sauce, the joke was turned into a meme that went viral across the internet. To capitalize on the social media presence, McDonald’s decided to bring the sauce back for a one-day promotion in limited quantities at certain locations. Fans purportedly drove across state lines and even from Canada to get their own Szechuan sauce experience.

Unfortunately, the popularity of the promotion vastly outweighed the amount of Szechuan sauce packets distributed to McDonald’s locations and thousands of fans missed out on the opportunity to participate in the “pop-culture phenomenon.” Furious fans took once again to social media to expound upon their disappointment and urge McDonald’s to bring back the sauce in a larger release.

Rising to the challenge, McDonald’s announced that it would ship some 20 million Szechuan sauce packets to stores in late February 2018. This curbed the social media debacle and ended with McDonald’s being able to satisfy their customers and earn back loyalty. Even though the Szechuan sauce joke in Rick and Morty was just a throw-away joke, it had real-world supply chain implications when it hit social media.

Twitter Feud Sparks a Run on Chicken Sandwiches

More recently, a Twitter feud between Popeyes and Chick-fil-A sparked a social media controversy about which retailer sold the better chicken sandwich. The controversy began in August 2019 when Popeyes introduced a new chicken sandwich item onto its menu. The sandwich was an instant success, even being ranked by Business Insider as the No. 1 fried-chicken sandwich. This prompted Chick-fil-A to tweet “Bun + Chicken + Pickles = all the <3 for the original.” Popeyes quote-tweeted it directly, adding “…y’all good?” and igniting a flurry of tweets by chicken sandwich fans nationwide.

Due to the huge social media attention it was receiving, Popeyes sold out of its new menu item in just two weeks after it was introduced. Supplying enough buns for all the chicken sandwiches the company was selling was a main issue. In a creative supply chain move, Popeyes launched a campaign called “Bring Your Own Bun” so that more sandwiches could be sold. The program encouraged guests to order the three-piece chicken tenders off the menu then construct the sandwich themselves.

Popeyes has announced that the sandwich would be returning to its 150 Popeyes locations in early November this year. In order to keep up with the production of the hugely popularized sandwich, Popeyes is adding an additional 400 employees. Up to two people per store will be solely designated to making the sought-after menu item going forward.

Can Supply Chains Stay Ahead of Social Media Trends?

Social media’s influence across the supply chain is a new frontier for most companies. It can be a challenge to react to unexpected endorsements (or negative comments) in a productive way. These stories about Starbucks, McDonalds and Popeyes can act as examples of how to handle demand shifts for other food and beverage supply chain companies. By seizing the opportunity to promote their brands, these companies were able to restructure their supply chains by increasing production, altering logistics, communicating with customers, and even adding staff. The key is to stay informed on social media trends and not be afraid to be flexible in the face of social media’s influence on customers.

Kuebix TMS Holiday Hiring Trend

Retailers and Carriers are Increasing Labor Ahead of the Holiday Shopping Season

/in , , , /by

Fall is here and retailers are already preparing to get in the holiday spirit! Many businesses announced their seasonal hiring plans before summer ended. A recent Indeed holiday hiring survey indicates that holiday job searches per million job seekers rose by 11% in comparison to last year. The unemployment rate is holding steady at an unusually low 3.7%, so it should come as no surprise that retailers such as Kohl’s, Famous Footwear and Bath & Body Works are scrambling to fill open positions pre-holiday season.

Deloitte’s annual holiday retail projections anticipates that e-commerce sales revenue will fall between $144 billion and $149, an increase from last year’s $126.4 billion spent online. Total retail sales are expected to land somewhere between 4.5% and 5.0% for the period (up from 2018’s 3.1%). The combination of open full-time positions and an increase in money spent makes it critical that seasonal employees are hired before the first holiday hits.

Retailers aren’t the only ones gearing up for holiday season. Both FedEx and UPS have made announcements regarding seasonal hires. FedEx plans on adding 55,000 workers to its already expansive staff of 450,000. Majority of workers added will contribute to the FedEx Ground network.  UPS is set to hire 100,000 seasonal workers to combat the holiday shipping rush. They’re expecting daily package deliveries to nearly double compared to their average 20 million per day. Long-term positions with UPS aren’t out of the question – 35% of people hired for seasonal jobs over the last 3 years have been made permanent employees.

Companies everywhere are struggling to identify the best method to successfully navigate the incoming holiday season. An easy solution to reduce operational inefficiencies is implementing a cloud-based transportation management system (TMS). Through utilizing a cloud-based TMS, companies can lower usage costs, have greater flexibility and experience a rapid return-on-investment (ROI). A cloud-based TMS gives all businesses complete supply chain visibility, saving them time and helping them provide better customer service.

A cloud-based TMS connects users with other shippers, carriers, brokers, freight marketplaces and 3PLs in the network. Users can streamline manual processes and manage all of their shipping functions within a single system. This simplified process creates opportunity for users to earn more while saving time.

No matter how you approach it, pre-holiday season is here and shoppers are ready!

Kuebix TMS Fall Seasonal Products

Seasonal Flavors Like Pumpkin Spice Add Complexity to Supply Chains Before the Holidays

/in , , , /by

October is almost here and with it comes seasonal favorites such as apple cider, candy corn and pumpkin spice. With every brand that tries to stay on this theme comes additional supply chain complexities. The chaos of keeping up with consumer demand is already heating up despite holiday season still being a month away!

Data from Grubhub shows the three most popular months for pumpkin and pumpkin-spice-flavored dishes are October, November and September, respectively. Other flavors such as apple cinnamon, pear and maple grow in popularity around this time as well. The five states with the highest number of pumpkin-related orders are California, Oregon, Washington, Ohio and Utah.

While the most common forms of pumpkin treats are baked goods like cakes and cookies, nonconventional businesses are getting in the spirit as well. Spam launched its own Pumpkin Spice Spam this year and sold out within seven hours. Last year Buffalo Wild Wings offered customers a limited-edition pumpkin ale sauce to accompany their infamous chicken wings.

The most challenging part of pre-holiday season is making sure that inventory is in the right place at the right time. Companies who struggle with this face out-of-stocks and missed chances for sales. It can be difficult to predict which seasonal products will resonate with consumers and drive business. It’s important to be able to move product efficiently and minimize operational delays.

Visibility throughout the supply chain also allows shippers to provide accurate and real-time information to retailers and customers alike. Retailers will have accurate information about when they will be restocking and consumers will know when they can expect to receive their product. This additional information allows retailers to provide better customer service and leaves pre-holiday shoppers more satisfied.

Implementing technology into supply chains creates a smoother shipping process for all involved and provides complete visibility throughout the supply chain. Transportation management systems (TMS) eliminate operational inefficiencies while providing benefits to all parties. Customers, suppliers and carriers can collaborate on a singular platform with real-time tracking information and side-by-side rate comparisons to save time and money. This is especially important as retailers and distributors gear up for the busy holiday season and start introducing seasonal favorites like pumpkin spice flavors to store shelves!

Kuebix Returns Shipping

How E-Commerce is Changing Returns

/in , , , /by

The growing popularity of e-commerce has led to exponential growth in number of returns. While they have always been an integral part of shopping, online orders are significantly increasing their presence in the retail and e-commerce industries.

E-commerce platform Yotpo reported that 88% of fashion shoppers surveyed have returned fashion items purchased online in the past year. Of those shoppers, 51% have returned between $50 and $500 worth of merchandise. Consumers often order the same product in multiple sizes or a few options with the intention of only keeping one.

Consumers are making more subjective and less-predictable purchases online. Fit and quality are the top two reasons for returns. When looking at an article of clothing online, it’s often hard to tell how it will look and what size is best. The number of returns is expected to increase steadily with the volume of online orders. Businesses are starting to think of ways to make returns an opportunity for profit rather than a traditional expense.

Many retailers are starting to accept the returns of their competitors. Nordstrom recently announced it will now be taking returns from other stores including its competitors Macy’s and Kohl’s. Popular retail stores are starting to realize that returns don’t have to be viewed as a negative. The origin of the return doesn’t diminish Nordstrom’s opportunity to sell to incoming customers.

Kohl’s recently launched a similar program in which it accepts returns for Amazon orders. Amazon’s popularity is often seen as a threat and this unique approach allowed Kohl’s to use it to their advantage. Their pilot stores in Chicago and Los Angeles saw a 9% increase in new customers and an 8% increase in revenue at participating locations. In response, Kohl’s launched the program worldwide. Returns are providing retail stores losing business to e-commerce a second chance at drawing in customers and selling their products.

Happy Returns, a relatively new startup, is offering to ease the operational burden of returns. The company processes, evaluates and batches returns together at several return bars. Consumers are able to make their return in-person and receive an instant refund. Through implementing Happy Returns businesses can stabilize the cost of their returns and easily receive and process them.

Businesses driving profit through returns can also benefit from implementing technology into the operational side of their supply chains. A transportation management system (TMS) gives shippers complete visibility through their supply chain with real-time information on the locations of their shipments. ERP integrations, such as those with NetSuite or Microsoft Dynamics, can save logistics professionals the increased time as orders are shipped or returned, simultaneously eliminating the risk of human error. All-in-all, modernizing norms surrounding returns are creating opportunities for companies to generate additional revenue.

Kuebix TMS Sustainability Meat Alternative Labor Day

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

/in , , , , , /by

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!

New Trends in Sustainable Packaging May Shake Up E-Commerce Shipping - Kuebix TMS

New Trends in Sustainable Packaging May Shake Up E-Commerce Shipping

/in , , , , /by

Almost every online order fulfilled means another cardboard box shipped to a consumer. It should come as no surprise that cardboard boxes are contributing an unprecedented amount to overall cardboard waste. As environmental concerns grow, companies are beginning to look for sustainable alternatives to ship their products.

Why Cardboard Has Been a Popular Choice for Retailers

The classic cardboard box has dominated the shipping industry since 1890. Retail stores are filled with products encased in dyed paper and plastic packages, but it’s cardboard boxes that got them there. Cardboard boxes started out plain and practical to play their part in the supply chain. However, the rise of e-commerce changed the perspective of companies. Cardboard boxes quickly became an opportunity for establishing a brand.

Popular businesses that support online shopping including Amazon and Target started incorporating their brand name and even playful images or slogans onto their cardboard boxes. These new designs were created with the intention of making an impression on consumers and representing the brand’s purpose to those who didn’t come face-to-face with their store.

New Options for More Sustainable Packaging

Companies are presently being challenged to come up with an environmentally friendly alternative to shipping product in cardboard boxes that still represents their brand. 3M, a manufacturing company operating out of Minnesota, has redesigned bubble wrap to contribute to this change. Their effort is geared towards reducing the amount of packaging needed to ship smaller items. Plastic envelopes lined with bubble wrap are perceived as a better alternative to boxes because they take up less space. Even though the packages are smaller, these envelopes are limited to specific sizes that are sometimes too big for what’s being shipped.

To eliminate these barriers associated with making smarter shipping choices, 3M released its Flex & Seal Shipping Rolls. The material is a padded envelope that is sold on a roll instead of assembled packages. The new design gives consumers the ability to personalize the size of their envelopes to an appropriate size for what they’re shipping. Eliminating the use of oversized envelopes and unnecessary cardboard boxes with Flex & Seal Shipping Rolls will drastically reduce the waste oversized packaging creates.

Happy Returns, a consumer retail and e-commerce return service, is taking a different approach by eliminating boxes and single-use packaging altogether. The company is adopting the use of totes made of recycled plastic to reduce the cardboard waste they create by packaging and shipping return items for consumers. The new reusable container will minimize the amount of cardboard required for return shipments by 73% in weight and 92% in area.

Happy Returns and 3M are frontrunners in the effort to reduce packaging waste. E-commerce businesses and retail stores dependent on online sales will follow suit as environmental concerns continue to grow. The next time you order something online, be sure to keep your eye out for a more sustainable form of packaging upon delivery!

Kuebix Subscription Box Supply Chain

Subscription Boxes are Changing Supply Chains

/in , , /by

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!

FedEx’s Breakup with Amazon Draws Battle Lines in the Fight for Shipping - Kuebix TMS

FedEx’s Breakup with Amazon Draws Battle Lines in the Fight for Shipping

/in , , , , , , /by

FedEx is breaking up with Amazon as the e-commerce giant continues to make waves in the shipping industry. The carrier announced that it will choose not to renew its ground freight contract with Amazon for any final mile delivery, effective September 2019. This comes only 2 months after FedEx announced that it would end Express air shipments with the e-commerce company. Amazon made up roughly 1.3% of FedEx’s total sales in 2018.

According to spokespeople from both companies, the breakup is amicable, an Amazon operations executive even tweeting “we wish them nothing but the best, conscious uncoupling at its finest.” But this conscious uncoupling goes deeper than a simple business incompatibility.

Here’s what you need to know about why FedEx and Amazon have officially parted ways.

Amazon’s Bid to Transform the Shipping Industry

It’s no secret that Amazon has ushered in an era or super-fast, super-convenient online shopping. The company has become the #1 e-commerce platform, bringing in close to $232 billion U.S. dollars in 2018 net sales. By promising Prime members free, 2-day shipping on thousands of items, Amazon has built consumer loyalty and changed the way shoppers think about shipping. Customer expectations have changed and 2-day, or even faster, delivery is now expected. In fact, Amazon plans to make 1-day delivery standard for Prime members in 2020.

Amazon

In order to meet these pie-in-the-sky delivery promises, Amazon has decided that a ‘go-it-alone’ strategy is needed for their logistics operations. Instead of solely relying on established parcel carriers like FedEx, UPS, or the United States Postal Service (USPS), the company is increasingly developing their own shipping networks. This includes building out their own fleet to fulfill final mile deliveries. Most recently, Amazon announced that they will pay their employees $10,000 and 3 months’ pay to quit and start their own Amazon delivery service.

In addition to expanding their ground fleet operations, Amazon has also added hundreds of fulfilment centers to its logistics network, announced its groundbreaking drone delivery program, and added next-day air capacity with leased jets. It’s not surprising that FedEx feels the need to distance itself from a company that appears to be stepping into their territory. The company is taking short-term pain over the possibility of continuing a potentially damaging relationship long-term.

FedEx Bets On Wal-Mart and Other E-Commerce Businesses

Amazon officially surpassed Wal-Mart as the world’s largest retailer earlier in 2019. That isn’t to say that Wal-Mart doesn’t pose a threat to Amazon’s monopoly in the e-commerce world. Wal-Mart has some 2.2 million workers, a number roughly 4 times the number Amazon employs. It also already owns a vast amount of real estate, strategically dispersed across the USA. Not to mention that Wal-Mart owns one of the largest private fleets in America. By building upon this base, Wal-Mart has ramped up efforts to compete with Amazon in the e-commerce sector. This includes plans to roll out a 1-day delivery program that shoppers can take advantage of without any membership fees.

Parcel and E-commerce

FedEx appears to be betting on Wal-Mart as Amazon’s primary rival in the fast and free online shopping industry. According to the founder of SJ Consulting Group, a company providing data and advice to logistics companies, the decision to sever ties with Amazon is a way for FedEx to “get Walmart to realize that they’re not working with Walmart’s biggest competitor and to have Walmart make FedEx their primary carrier.”

To make up for the short-term loss of 1.3% of their business, FedEx also announced in May that they would begin seven-day ground freight services at the beginning of 2020. This move will likely make them an even more desirable carrier for companies like Wal-Mart, Walgreens, and other retailers in the e-commerce space.

The Future of Final Mile

The breakup of Amazon and FedEx is just another example of the battle lines being drawn between Amazon and the rest of the retail industry. As companies seek to differentiate themselves from the e-commerce behemoth, changes as small as choosing a different carrier can be important. FedEx appears to already be taking steps to compete against Amazon’s 2-day and 1-day delivery promise. The future of final mile delivery is still uncertain, but the main competitors are just now entering the ring.