In the dynamic realm of logistics and supply chain management, navigating the rhythmic ebb and flow of seasonal supply chain shifts is both an art and a science. The ability to harmonize your operations with seasonal fluctuations can spell the difference between triumph and turbulence for your business. Whether you’re peddling sunscreen in summer or crafting holiday magic in winter, understanding and conquering these seasonal shifts is paramount. In this blog post, we will delve into the intricacies of seasonal supply chains and unveil ingenious strategies to help your business not just survive but thrive amidst these shifts.
Decoding Seasonal Supply Chain Shifts
Seasonal supply chain shifts are the balletic movements of commerce, choreographed by the calendar and consumer whims. They materialize when consumer demand for particular products or services experiences pronounced variations throughout the year. These variations are often orchestrated by a symphony of factors, including weather patterns, cultural events, holidays, and economic triggers. Here are some illustrative examples:
Weather-Driven Seasonality: Companies dealing in weather-sensitive wares, such as swimsuits and ski gear, sway with the seasons, adapting their supply chains to these meteorological rhythms.
Festive Frenzy: Retailers, whether physical or online, witness a surge in demand during the festive season, necessitating a flawless fusion of augmented inventory, nimble distribution, and top-notch customer support.
Agricultural Rhapsody: The agricultural sector performs its seasonal sonata as crops are harvested at specific times of the year, affecting not only growers but also the entire supply chain downstream.
Back-to-School Ballet: Businesses peddling school supplies and uniforms orchestrate their operations for the back-to-school season, a crescendo of demand.
Key Strategies for Synchronizing with Seasonal Shifts
Demand Anticipation: Accurate demand forecasting acts as the conductor of your seasonal supply chain orchestra. Harness historical sales data, market intelligence, and predictive analytics to anticipate the crescendos and diminuendos of demand. This enables you to fine-tune inventory levels and production schedules.
Flexibility in Supply Chain Design: Inject adaptability into your supply chain’s DNA to harmonize with changing demand. Embrace flexible staffing arrangements, dynamic warehousing solutions, and versatile transportation options. Temporary personnel and rented storage spaces can be instrumental in hitting the right notes during peak seasons.
Supplier Synergy: Cultivate strong partnerships with suppliers, sharing your seasonal symphony well in advance. Collaborate closely to ensure a steady supply of materials and products when the demand crescendos.
Inventory Virtuosity: Mastery of inventory management is paramount. Employ techniques such as just-in-time inventory, safety stock, and ABC analysis to fine-tune inventory levels. This prevents surplus during lulls and staves off shortages during high-demand periods.
Technological Crescendo: Invest in cutting-edge supply chain technology and automation to streamline processes and elevate efficiency. These tools enhance visibility, orchestrate real-time inventory tracking, and facilitate agile responses to demand fluctuations.
Logistics Choreography: Ensure your transportation and logistics networks possess the grace to handle peak-season volumes. Consider alternative routes and transportation methods to sidestep potential bottlenecks.
Customer Engagement: Keep your audience informed about product availability and delivery schedules during peak seasons. Implement responsive customer support channels to address inquiries and concerns with finesse.
Post-Season Encore: After each peak season performance, conduct a thorough post-season analysis. Uncover areas for refinement, fine-tuning your seasonal supply chain symphony for a stellar encore.
Seasonal supply chain shifts are the verses and choruses of many businesses’ financial songs, and conducting them with mastery is the key to sustained success. By immersing yourself in the rhythm of seasonal demand variations and orchestrating astute strategies, your company can not only meet customer expectations but also transform seasonal challenges into opportunities.
In this harmonious journey, Taylor Logistics stands as your trusted partner, ready to help you hit all the right notes. With their extensive experience and expertise in supply chain management, Taylor Logistics can provide tailored solutions that synchronize your operations with seasonal shifts. Their innovative approach, backed by cutting-edge technology, ensures that your supply chain performs like a well-rehearsed symphony, delivering efficiency and precision.
In a competitive landscape, adaptability and agility during seasonal supply chain shifts are the notes that harmonize with long-term prosperity. So, step onto the stage, embrace the music of the seasons, and let Taylor Logistics choreograph your supply chain for a standing ovation in the world of seamless success.
We know that running a business can feel like a rollercoaster ride, especially when it comes to seasonality changes. Whether you’re gearing up for a booming holiday season or bracing for the summer slowdown, the key to success lies in demand planning and the right supply chain strategy. That’s where Taylor, your 3PL hero, steps in to make your supply chain journey smooth and profitable.
Understanding the Seasonal Shuffle
First things first, let’s talk about seasonality. It’s that regular ebb and flow in demand that can leave you spinning if you’re not prepared. Every industry faces these ups and downs, from the holiday shopping frenzy to back-to-school rushes and even summer slumps. How you handle them makes all the difference.
The Power of Demand Planning
Demand planning is like your secret weapon against the unpredictability of seasons. Here’s what it brings to the table:
Data Delights: It all starts with data. Analyzing historical sales figures, market trends, and outside factors is our way of peering into the future.
Forecasting Finesse: Armed with data, we forecast demand like pros. This isn’t just a guess; it’s about spotting patterns and trends to ensure you’ve got what your customers want when they want it.
Inventory Intelligence: Demand planning helps us keep your inventory levels just right—no more shelves crammed with excess stock or frantic last-minute restocking.
Teamwork: We believe in partnership. Collaboration between and continuous communication between our teams– ensures we all sing the same tune.
Scaling Your Supply Chain
Now, let’s talk about scaling operations. It’s the secret to mastering seasonal changes. Why Taylor 3PL, you ask? Here’s why:
Warehouse Wonders: Our flexible warehousing solutions are a godsend. Need to scale up for peak season? Easy peasy. And when demand subsides, you’re not tied to extra space.
Fulfillment Flourish: We’re fulfillment aficionados, ensuring orders are picked, packed, and shipped like clockwork, even during the busiest times.
Transportation Tricks: From route optimization to efficient shipping, our transportation expertise keeps your goods moving seamlessly.
Value-Added Services: Taylor continues beyond warehousing and transportation. We offer a range of value-added services like kitting, labeling, and quality checks to add extra shine to your products.
Growth Mode: As your business soars, Taylor scales with you. Need more space, a dedicated fulfillment center, or expanded value-added services? We’ve got you covered.
In the epic saga of supply chain management, Taylor is your ally. We’re here to help you conquer the unpredictable seas of seasonality, transform challenges into opportunities, and make your supply chain a source of strength.
Ready to embark on this adventure with Taylor by your side? Let’s chat and discover how we can elevate your supply chain to new heights.
A well-optimized supply chain network is the cornerstone of success in the ever-evolving business landscape. The intricate web of processes ensures your products reach customers efficiently, on time, and at the right cost. As shippers seek reliable partners for their supply chain needs, it’s essential to recognize the signs that indicate the time is ripe for optimizing your supply chain network. In this article, we’ll delve into the five crucial signs that should catch your attention:
Delays Becoming the Norm: When delays in delivering products to your customers become a recurring theme, it’s time to assess your supply chain network. Delays can lead to dissatisfied customers, missed opportunities, and increased costs due to expedited shipping. An optimized supply chain ensures timely deliveries, enhancing customer satisfaction and bolstering your business reputation.
Fluctuating Demand Challenges: If you find it challenging to manage fluctuating customer demands efficiently, your supply chain might be due for optimization. A well-optimized network adapts seamlessly to changes in demand, ensuring you have the right products in the right quantities without overstocking or understocking.
Rising Operational Costs: Are your operational costs skyrocketing due to inefficient transportation, excess inventory, or poor coordination among supply chain partners? Optimal supply chain networks identify and eliminate such bottlenecks, resulting in reduced operational costs and improved profitability.
Lack of Visibility and Data Insights: In today’s data-driven world, lack of visibility into your supply chain can be detrimental. An optimized network utilizes advanced technologies like IoT, RFID, and analytics to provide real-time insights into inventory levels, transportation routes, and potential disruptions. This empowers you to make informed decisions and enhances overall efficiency.
Global Expansion Aspirations: If you’re considering expanding your business globally, supply chain optimization becomes paramount. International operations bring about a myriad of complexities, from customs regulations to varying transportation modes. An optimized supply chain network can help you navigate these challenges and ensure smooth global operations.
How to Optimize Your Supply Chain Network
Recognizing these signs is just the first step. To truly unlock the benefits of a well-optimized supply chain network, consider the following strategies:
Collaborate with Experts: Partner with supply chain experts (like #TeamTaylor) who can analyze your current network, identify inefficiencies, and provide tailored solutions. Their expertise can help you design a more efficient and agile supply chain.
Embrace Technology: Leverage technology to enhance visibility, automation, and data-driven decision-making. Implementing a robust supply chain management system can streamline processes and help you respond effectively to changes in demand and market conditions.
Streamline Processes: Identify bottlenecks and redundant processes within your supply chain and work on streamlining them. This could involve reevaluating supplier relationships, optimizing transportation routes, or redesigning inventory management processes.
Demand Forecasting: Invest in accurate forecasting tools to predict customer demand more effectively. This helps prevent overstocking or understocking and ensures you have the right products available at the right time.
Continuous Improvement: Supply chain optimization is not a one-time task; it’s an ongoing process. Regularly assess your network’s performance, gather feedback from customers and partners, and make necessary adjustments to stay ahead of the curve.
Recognizing the signs indicating the need for supply chain optimization is crucial to ensuring your business’s success. By partnering with experts, leveraging technology, streamlining processes, and embracing continuous improvement, you can create a robust and agile supply chain network that meets customer expectations and drives your business forward. So, whether you’re a startup or an established enterprise, now is the time to seize the opportunity and optimize your supply chain for a brighter, more efficient future.
In the fiercely competitive world of modern business, brands need to leverage advanced technologies to streamline their operations and gain a competitive edge. One such technology that is transforming inventory management for brands is real-time inventory tracking through a Warehouse Management System (WMS) customer portal. In this blog post, we’ll explore how partnering with a 3PL (Third-Party Logistics) provider like Taylor, who offers a cutting-edge WMS customer portal with real-time tracking capabilities at no extra cost, can revolutionize inventory management and drive unprecedented benefits for your business.
1. Real-Time Inventory Visibility
When it comes to inventory management, knowledge is power. Real-time visibility into your inventory levels across multiple locations is essential for optimizing operations and promptly meeting customer demands. With Taylor’s WMS customer portal, you gain instant access to accurate, up-to-the-minute information about your inventory. This includes stock levels, order status, inbound and outbound shipments, and more, empowering you to make well-informed decisions at every step of the supply chain.
2. Seamless Order Fulfillment
Efficient order fulfillment is the lifeblood of any brand striving to deliver exceptional customer experiences. Taylor’s WMS customer portal facilitates seamless order processing by providing real-time insights into available inventory. With this comprehensive view, you can efficiently allocate stock to fulfill orders from the nearest distribution center or warehouse, ensuring faster delivery times and reduced shipping costs. The result? Satisfied customers and increased loyalty to your brand.
3. Proactive Inventory Management
Proactive inventory management is crucial for avoiding costly stockouts or overstocking situations. Taylor’s WMS customer portal allows you to set up automated alerts for low inventory levels, enabling you to replenish stock in a timely manner. By staying one step ahead of demand fluctuations, you can optimize inventory turnover, reduce holding costs, and free up working capital for other strategic investments.
4. Data-Driven Decision Making
In the age of big data, businesses that leverage actionable insights gain a significant advantage over their competitors. Taylor’s WMS customer portal collects and analyzes real-time inventory data, presenting you with easy-to-understand dashboards and reports. This data-driven approach empowers you to identify trends, spot inefficiencies, and make informed adjustments to your supply chain strategy, further enhancing operational efficiency and cost-effectiveness.
5. Enhanced Collaboration
Effective collaboration between brands and their 3PL partners is essential for mutual success. Taylor’s WMS customer portal fosters seamless communication by providing a shared platform for real-time inventory updates and order tracking. This transparency ensures that both parties are on the same page, leading to better coordination, fewer errors, and improved overall performance.
In conclusion, real-time inventory tracking through Taylor’s WMS customer portal is a game-changer for brands seeking to optimize their supply chain and deliver exceptional customer experiences. By partnering with a 3PL that offers this technology at no extra cost, you gain access to invaluable tools for inventory management, order fulfillment, and data-driven decision-making. Embrace the power of real-time inventory tracking and elevate your brand to new heights of efficiency and customer satisfaction.
As we dive into the midpoint of 2023, the freight market continues to evolve, presenting challenges and opportunities for shippers worldwide. In this blog, we will look closer at the current state of the June 2023 freight market and explore what the rest of the month holds for shippers. Understanding these dynamics can help shippers make informed decisions and optimize their supply chain operations.
Demand and Capacity
The freight market in June 2023 is witnessing robust demand for shipping services across various industries. In addition, economic recovery from the pandemic is gaining momentum, leading to increased consumer spending and heightened manufacturing activity. As a result, shippers can expect strong demand for their products, driving the need for reliable transportation services.
However, this surge in demand has led to capacity constraints in the freight market. The imbalance between supply and demand has resulted in higher freight rates and reduced availability of trucking, ocean, and air freight capacity. Shippers should anticipate these challenges and plan their shipments accordingly.
Freight Rates
Due to the demand and capacity imbalance, freight rates increased in June 2023. Shippers should be prepared for higher transportation costs, particularly trucking and container shipping. Budgeting accordingly and negotiating favorable rates with carriers and logistics providers is crucial.
Shippers can explore alternative transportation modes to mitigate the impact of rising freight rates or consider collaborating with freight forwarders who can leverage their networks to secure competitive rates. Optimizing shipment consolidation and employing efficient logistics strategies can also help reduce costs.
Technology and Digitization
Technology is vital in navigating the freight market in this increasingly digital era. Shippers should leverage digital platforms and transportation management systems (TMS) to streamline operations and gain better visibility into their supply chain. In addition, real-time tracking and analytics can provide valuable insights, enabling shippers to make data-driven decisions and optimize freight movements.
Emerging technologies like blockchain and the Internet of Things (IoT) are also revolutionizing the freight industry. These technologies enhance transparency, traceability, and security throughout the supply chain. Therefore, shippers should explore opportunities to incorporate such innovations into their operations to gain a competitive edge.
Shippers can contribute to sustainability goals while maintaining operational efficiency by utilizing intermodal transportation, optimizing routes, and embracing alternative fuels. In addition, partnering with environmentally conscious logistics providers can help shippers align their supply chain with sustainability objectives.
Conclusion
As we progress through June 2023, the freight market presents a mixed landscape of opportunities and challenges for shippers. Understanding the current dynamics and proactively adapting to market changes are key to success. By considering factors such as demand and capacity, freight rates, technology and digitization, and sustainability initiatives, shippers can navigate the freight market effectively and ensure the smooth transportation of their goods.
Partner With Taylor
When meeting your freight needs, Taylor Logistics brokerage services stand out as an excellent choice. With their extensive expertise and industry knowledge, Taylor offers a comprehensive range of logistics solutions tailored to your requirements. Whether you need assistance with transportation management, freight optimization, or supply chain consulting, Taylor Logistics has the expertise and resources to deliver results. They leverage their vast network of carriers and deep understanding of the market to ensure efficient and cost-effective transportation solutions. With a focus on customer satisfaction, Taylor Logistics provides personalized support and real-time visibility, allowing you to track your shipments and make informed decisions. By partnering with #TeamTaylor, you can streamline your supply chain operations, optimize costs, and enhance overall efficiency, ultimately helping your business thrive in the dynamic freight industry.
Companies always look for ways to reduce costs and increase efficiency in today’s highly competitive global economy. To handle their supply chain needs, many companies outsource to third-party logistics providers (3PL).In addition to warehousing, order fulfillment, and transportation, 3PLs offer various services. The benefits of these services can be significant for companies, but they need to be appropriately considered before deciding to use any 3PL. To evaluate a 3PL provider, you should follow these ten steps.
Compare Costs
It is essential to compare the costs of their services to in-house operations as a first step. By doing this, you can determine whether 3PL’s services are cost-effective and if they provide value for money. Don’t forget to factor in additional costs such as setup, technology, and transportation fees.
Analyze On-Time Delivery Rates
An essential aspect of 3PL management is measuring on-time delivery rates. If the 3PL meets customer expectations, this will give you an idea of its reliability. On-time delivery rates are vital for companies that operate in industries where timeliness is critical.
Inventory Accuracy
Inventory accuracy is another important metric to look for in a 3PL provider. This will let you know how well the third-party logistics provider is managing your inventory and whether they can monitor stock levels. Since this can significantly contribute to errors and delays, measuring the 3PL’s capacity to track inventory in transit is also critical.
Customer Satisfaction
Numerous methods, including customer surveys, reviews, and feedback, can be used to gauge customer happiness. You can determine how well the 3PL is meeting consumer expectations by asking for a customer promoter score and referrals.
Return on Investment
Keeping track of your costs will provide insight into the amount of extra revenue your business obtains from the 3PL. In addition, analyzing the revenue generated by the 3PL and comparing it to the costs associated with their services will enable you to gain a more comprehensive understanding of your overall return on investment.
Results
Following the steps outlined above can help you evaluate a 3PL provider and see if they are providing value for the money. With the right metrics in place, you can make an informed decision about whether or not to continue working with them.
Bottom Line
?Selecting the right 3PL provider is an important decision that can significantly impact your company’s success. Evaluating a 3PL provider’s industry experience, technology and tools, services offered, customer service, pricing and agreements, security and compliance, scalability and flexibility, and reputation will help organizations meet their logistics needs and gain a competitive edge. As a result, you can make more informed decisions.
It’s essential to thoroughly research any 3PL provider before making a decision. This includes asking the right questions and conducting due diligence to verify vendor credentials and capabilities. By selecting a 3PL provider that best suits their needs, companies can improve the efficiency of their supply chain, reduce costs, and improve the customer experience. Questions or need to speak with an expert? Talk with Taylor!
Each year, Robert Handfield, Ph.D. of North Carolina State University, predicts what’s in store for global commerce and supply chains for the next 365 days. While these predictions are perhaps not completely original, his takeaways and supporting evidence are worth considering. Please see the full article from NCSU here.
Inflation will persist.Jason Miller from Michigan State is an expert at navigating the many different publicly available government database, and interpreting the tea leaves. He writes a weekly blog on Linked In which I follow religiously. He is the most accurate forecaster I know, because unlike many speculators and economists, his observations are based on actual data! He believes that inflation isn’t going to go down going into 2023 – but will persist. He writes that“While it is good news that we are starting to see the inflation of goods slow down, I would caution anyone who expects goods to go through a deflationary cycle that the data (to me) isn’t pointing in this direction to a meaningful degree. Data below from three series from the BLS PPI program obtained from FRED (with call codes after the labels), all set such that 100 = January 2019. Implication: the best-case scenario I see for the price of finished goods is that their prices stay relatively unchanged from the 3rd quarter of 2022….we are going to see meaningful deflation in finished goods prices as we move into 2023, which will in turn impact PCE price index that the Fed monitors for consumer inflation.” Unfortunately, this also means that the Fed will likely keep interest rates high through much of 2023 – and will likely increase rates again in February and June. Inflation is indeed going down slowly– but not as fast as the markets would like.
Inventory will remain bloated for the first half of 2023, – and supplier relationships will be tested. Here again, my prior blog notes how much inventory we have in supply chains today – and how certain parties are pushing back their excessive demand forecasts, and punishing their suppliers. For instance, a large apparel brand requested about 20 of their largest textile mills (many in Pakistan, Singapore, China, and other regions) to travel all the way to San Francisco for a “Vendor Summit”. They then sequestered each individual in a room, and two individuals came in and told them that they needed to reduce their prices by 20%. Walmart is moving their vendors from FOB (Free on Board) to domestic buying, and the shift is happening fast. Walmart will pay more for domestic sources, but will not be burdened with the inventory and purchasing FOB. They are also canceling orders, decreasing quantities, and deducting off invoices, which they claim as “chargebacks” for “late deliveries”, from shipments which were received as late as last year. These kinds of behaviors by buyers will come back to bite them in the future…
Despite having more inventory – we won’t stop having shortages. Unfortunately, a lot of the bloated inventory is stuff that consumers don’t want – or can’t afford. But that doesn’t mean we will stop having shortages of critical materials. One reason for this is that the COVID crisis in China is escalating to incredible levels, and that is shutting down a lot of manufacturing hubs. In particular, a lot of maintenance parts for equipment, replacement parts for appliances, automobiles, and larger (>48 nm) chips are still produced in Asia – and we will continue to see shortages of these component parts. That means that repair may take longer than you think. Labor and material shortages for factories are going down – but still are at a much higher rate than they were in 2019.
Mexico will become a destination hub for many companies in the US – but within reason. As I noted in a prior blog, and as discussed in the New York Times today – Mexico is a great option – but the capacity isn’t there yet. More importantly, the supply chain isn’t there yet! I spoke to a CPO who mentioned that his CEO was a big proponent of bringing all supply to Mexico – but despite this fact, we are still largely dependent on China for raw materials! As pointed out in the NY Times – even apparel manufacturing in Mexico is largely dependent on fabric produced entirely in China! As such, it is unlikely we are going to lose our dependence on Chinese products. Price is still the determining factor here. Chinese manufacturing is of such scale, that moving it to the US or Mexico is unlikely.
The US Government will play more of a role in promoting domestic supply chains. Not only did the US government, pass the CHIPS Act – but they are actively promoting the domestic production of semiconductors.As noted in one of my blogs, however, producing a fab plant is a good step – but the supply chain for chips is still largely in Taiwan. There is massive flux in the chip industry – which seems to be on a different cycle than most demand cycles. What was once a one year backlog has shrunk and chips are now readily available – to the point where semiconductor companies are cutting back on capital investment! This will continue to be a real problem – and I believe we will see “capacity as a service” models begin to emerge in the chip sector – where buyers will reserve capacity based on actual forecasts, not guesses or bets on what they think they will need next year. This will stabilize production – and lead to improved availability and assurance of supply.
Healthcare supply chains will remain strained. Despite having a lot more PPE in warehouses, hospitals are still struggling with a lot of shortages. Jim Wilson, an expert in medical intelligence, advocates that hospital monitoring programs is a critical area of government investment. One area is generic drugs – such as amoxycillin. We wll have shortages of baby formula as well. For this reason, I believe the government should be creating incentives to increasingly healthcare supply chain. To address this issue, one recommendation I am advocating would be to create government industrial policies that are targeted at supporting a domestic “stop gap” manufacturing capability. Secondly, partnerships should be developed with distributors to enable visibility into their inventory systems, and ensure they enter contracts which set aside inventory for government allocation under different conditions of duress. This will require a set of common data standards and a common architecture to create a dashboard and control tower. In addition, a multi-agency materials inventory portfolio based on in-depth supply market analysis is needed. At a minimum, this should include specialists in the following categories: semiconductors, precious metals, electric vehicle batteries, medical supplies (PPE, gowns, gloves), medical devices, pharmaceuticals, plastics and resins, medical equipment, biologics, healthcare personnel, and respiratory products. This will require team of supply market analysts with special knowledge of these categories, that track the condition of critical supply markets for medical supplies, the supply risks within those markets, and acquisition strategies to manage the risks. Multi-tier supply chain mapping can provide clues as to critical points of risk that can “shut down” the US healthcare sector, based on multiple forms of risk assessment.
Growth in 2023 will be positive – but lean. As noted in a lecture by the Economist which I attended, the greatest risks looming ahead are concentrated in 2023. Next year will see some positive growth but only 1.7%, reflecting slowing growth in the US in China and recession in Europe. Global monetary tightening will take some time to kick in – likely in the second half of 2023. The US will likely see only 0.5% growth in 2023, the EU 0.4%, which in turn will impact other regions of the world. China will likely see a modest rebound after the 2022 slump, moving to only 5% growth. However, there are always risks that will move the needle, including the escalation of the Ukraine war, more COVID-19 variants, spikes in energy prices, and sovereign debt pile-ups.
Government regulation of Artificial Intelligence will increase. As I noted in a blog of a recent SAS INNOVATE conference, Henry Kissinger described AI as the new frontier of arms control during a forum at Washington National Cathedral on Nov. 16. If leading powers don’t find ways to limit AI’s reach, he said, “it is simply a mad race for some catastrophe.” The former secretary of state cautioned that AI systems could transform warfare just as they have chess or other games of strategy — because they are capable of making moves that no human would consider but that have devastatingly effective consequences. This is true not just in warfare, but also in supply chains. As we move towards a digital future where we increasingly will be ceding control to machines who call the shots, not humans, what are the risks of doing so? Increasingly, more and more data is being stuffed into the cloud, which certainly allows us access to more readily access reams of data which can be processed by algorithms for decision-making. We have to be able to trust these algorithms to make the right decisions. But driving towards AI standards to increase trustworthiness is easier said than done. The UK has also begun pursuing this goal, as has the EU, who are likely to explicitly define AI and how to use it. The government will begin to mandate a more comprehensive approach, which spans the entire organization. Three primary elements determine the fiduciary responsibility for trustworthy AI: Duty of Care, the Business Judgement rule, and Duty of Compliance Oversight. These pillars are required to understand the historical biases that so often find their way into AI algorithms, which have created historical injustices and inequities, meaning that the government is surely going to step in.
Electric vehicle parts will remain in short supply.In a recent blog, I noted how there is still a massive shortage of the so-called “green metals” required to meet the burgeoning demand for EV’s. Environmentalists and automotive companies have committed to converting all of their vehicles to electric power. GM has committed to 30 new electric vehicles by 2025. Ford is committing to an all-electric vehicle platform with zero emissions by 2035. But nobody is talking about the supply chain for these vehicles, and the capacity required to build them. Converting an entire supply base of automotive suppliers, who are all focused on building of combustion engine-powered vehicles, and moving them all to electric vehicles, will be a superhuman feat. What will happen to those manufacturers that can’t or won’t convert? They go out of business? And is there enough capacity to produce the new types of vehicles? And what raw materials are required to convert to EV in the future? I don’t think executives have really given any meaningful thought to the answers to these questions yet… I predict a rough road ahead for EV’s. Perhaps I’m a voice in the wilderness – except maybe for Toyota – they have the same doubts as I do.
Demand for supply chain graduates will go through the roof in the next two years. To summarize – global supply chains remain fragile – and we are in a period where things are starting to change. Supply chains will look very different in two or three years from what they are today.
With pumpkin spice season creeping upon us, many shippers and retailers are already deep into holiday logistical planning. Unfortunately, supply chain disruptions have felt like the movie “Groundhog Day” with the main character’s alarm clock representing the latest unexpected challenge. Since early 2020, many companies have struggled to keep products in stock and fulfill orders promptly. As forward-thinking brands look toward the fast-approaching 2022 holiday shopping season, it appears disruptions will again take a starring role.
Preparing for the Holiday Rush
Stock up on Holiday Inventory
According to Adobe Analytics, out-of-stock messages have increased by 172% since January 2020. Lack of stock is a surefire way to turn off customers and make them look elsewhere. Throughout the holidays, ensure that you have adequate supplies of your best-sellers and coordinate often with your partners. Additionally, logistics operations may experience delays during this period, due to the influx of many moving orders. When the shopping surge starts, it’s better to replenish your inventory early, so you can get those orders moving as soon as possible. Avoid long wait times and prevent customers from getting frustrated when they learn their preferred gift is out-of-stock.
Create a Redundancy Plan
There’s nothing worse than a package not reaching its final destination on time, especially during the holidays. So create a backup shipping plan to ensure your products are delivered on time. Like last year, some carriers will have trouble getting your packages out quickly and to your customers on time during this holiday season. To ensure packages get to customers during a surge, it’s advisable to have a relationship with a backup carrier. You never know where or when issues will arise. If you can quickly shift from one carrier to another in the event of any problems, you and your customers will be happy.
Increase Real-Time Network Visibility and Predictability
In today’s dynamic retail supply chain, visibility and predictability are crucial. The most advanced customer portals for shippers can process thousands of data points within seconds, allowing them to offer business intelligence and predictive analytics to help avoid delays. As a result, shippers can gain a rapid understanding of changing transit times that are imperative in calculating dynamic lead times to be used in near-term order cycle management. Taylor provides their customers with a custom portal for real-time visibility for proactive decision-making.
The Time to Plan is Now – Partner with a 3PL Today
The best way to prepare is to start early and proactively address any shortcomings that could impact consumers. Some brands have already started placing orders to build up inventory in anticipation of the holiday rush. By prioritizing a holiday logistics strategy and dedicating time and energy to optimize related processes, brands can break out of the “Groundhog Day” loop to achieve sales goals and exceed customer expectations this holiday season. Leave the logistics to us and focus on your core business – partner with #TeamTaylor today.
Taylor Logistics, a third-party logistics solutions provider, announced that it has launched its next-generation warehouse management portal for business partners in conjunction with warehouse management provider Zethcon.
A recent survey conducted by Gartner found that 64% of fulfillment and warehouse providers do not offer customers a portal to check inventory, gain access to reporting and scheduling. That leaves a wide margin of warehouses and fulfillment centers that have yet to uncover the advancements that can be achieved with a cloud-based portal for their customer base.
Critical Features
SynapseAnywhere portal is mobile, desktop, and tablet compatible
Customers can export reports and desktop data fields in these formats (Excel, PDF., web browser)
Apply custom filters to search inventory quickly
Build your own inbound or outbound orders if you are not EDI compatible
Utilize EDI dictionary passthrough characters for header and line item details from integrated EDI data for your systems data
Delivering real-time data visibility
Enjoy all the benefits of a cloud-based platform with its anytime, anywhere capabilities
“The move towards a cloud-based customer portal meets two of Taylor’s key strategic goals, which include innovation and customizability. Our ability to evolve and adapt to the changing demands of our customers and meet our responsibilities as corporate citizens as the network of our facilities grows is integral to the value we provide. The new WMS portal is a continuous flow of accurate and real-time data, entirely customizable.” Said Scott Dowers, Senior WMS Superuser – BI Admin
There are several marketplaces for eCommerce sellers, but one of the largest in the game is Shopify. Why has Shopify snowballed? Its bulletproof no-code design allows sellers to set up a store, sell, accept payment, manage inventory, showcase product pages, and connect with partners.
Are you using Shopify and looking to transition your fulfillment to a third-party logistics provider? Yes, it might sound a bit intimidating, but we promise it’s easier than you think! Your Shopify inventory dashboard will match your logistics partner WMS inventory, returns will be seamless, and you can focus on your core business by leaving the logistics to a 3PL (cough, cough, Taylor).
Shopify x 3PL Partner
Just like Shopify, your 3PL is here to help your business grow. A logistics partner can help with fulfillment management, inventory control/ planning, transportation, and excellent parcel shipping rates. Utilizing outsourced logistics, you’ll have more time to launch new products, make some TikToks, expand your brand, and focus on your business goals.
Find a 3PL Who Loves a Shopify Integration
A solid 3PL will have a Shopify integration widget that enables sellers to manage their Shopify storefront, design, new products, sales, etc. but connect it to a 3PL to handle fulfillment and shipping. In addition, the integration will allow sellers to see real-time inventory info within the Shopify dashboard. So selling out products will never be an issue; it will also help you forecast future demand.
Here’s how it works, when orders are placed through Shopify, it will go straight into the 3PLs warehouse management system. Making order management simple because it’s automated, there’s no need to upload a spreadsheet, download, or even click the mouse. Once you set up the Shopify store and connect via EDI, orders will flow directly to the fulfillment center and will be processed. The advantage of partnering with a logistics company is that you have real people handling your inventory and business. You can call on your personal assigned rep, tech superuser team, operations managers, and even the COO. There’s no call center, no putting in a ticket, no waiting for support.
The beauty industry is a $532 billion sector of the economy that is experiencing rapid growth. This increase is mainly due to the rise of e-commerce and omni-channel sales, with projections reaching $390 billion globally by 2024, according to Forbes. From a vast number of SKUs with LOT tracking requirements to hazardous goods storage and handling compliance standards to shipping bulk orders to big-box retailers to the demands of B2C e-commerce, order fulfillment has never been more critical to one of the fast-growing and most competitive industries. A qualified third-party logistics company can utilize its warehouse network, technology, and transactional cost models to provide effective fulfillment solutions to health and beauty brands.
Compliance and Experience
Unlike technology products, which may only launch a new product one time a year, cosmetic brands usually release new products seasonally, plus exclusive holiday campaign products. Meaning you have a tight margin for keeping your customers happy without being left with an excess of out-of-style inventory. Understanding what is required in each stage of the fulfillment process and your precise brand needs should be a top priority. Due to the purpose and composition of these products, your logistics partner must have the appropriate local, state, and federal licenses, permits, certifications, training, and facility infrastructure to store, handle and ship health and beauty items correctly. Accurate, efficient, and reliable fulfillment and delivery are essential in maintaining the integrity of your brand in this fast-growing industry.
Inventory Management & Visibility
Products need to be ready to ship at the right time; brands and their 3PL partner need to think about the future. As stated earlier, health & beauty companies and their growing revenues show that demand is being generated, typically through new products and consumer trends. Brands want to make sure their products are readily available while they’re still popular. It’s this constant battle between supply and demand. A 3PL can make sure a company’s inventory remains uncontaminated and relevant once a company has developed its inventory. The best part is that the right 3PL can track all aspects of the supply chain in real-time. With reliable transportation and fulfillment, a 3PL partnership will make a cosmetics brand inventory much more manageable.
A supply chain is a sequence of tasks that must be undertaken to distribute a commodity. When a company needs to gauge its supply chain performance, it uses a range of different supply chain metrics and key performance indicators (KPIs). Each KPI provides a slightly different vision of one slice of the supply chain. You might be asking, “What Key Performance Indicators should I measure to improve my supply chain? Here are the main KPIs in both the transportation and warehousing realms that are the most commonly reported for our customers.
Transportation
On-Time Delivery: Shows the carriers ability to deliver successfully on time to their scheduled required arrival date or to the appointment time. Having an accurate on-time delivery is critical for your client to avoid fees, as they may be subject to fees from big-box retailers.
Cost Management: Optimizing a transportation budget through KPI use is more than just tracking costs and expenses. KPIs are essential factors to discuss during freight contract negotiations and help determine if service levels are being met. This metric puts focus on these charges and helps to pinpoint the recurrence of key incidences. Problems or issues may be monitored and resolved swiftly to avoid any unnecessary fees and ultimately lower your transportation costs. A robust audit process can help save many dollars. The more error-free your freight bills and payments, the more you save, and the more net profit gravitates to your bottom line.
Cost Per Pound: Measures gross net with total weight moved each month or quarter to show customers’ buying and usage habits. This KPI will help improve your customer to continue to buy optimal amounts. These trends can help them save money but not over or under buying products.
Warehousing
Inventory Accuracy: Every warehouse manager knows the inventory in their warehouse costs them. Quantifying these specific carrying costs — including capital costs, inventory risk, inventory service costs, and obsolescence — help a warehouse manager make smarter buying and forecasting decisions, leading to higher inventory turnover.
On-Time Shipping: This KPI shows the percentage of shipments that left the warehouse on-time. A lot of products have tight deliveries with small windows. If a shipment is missed, your client can be hit with delays and even late fees.
Order Picking Accuracy: An incorrect order can result in an increasing shipping time per average order, inventory being put back on shelves, rate of return, etc. Lean fulfillment and warehousing practices reduce waste and streamline picking processes – and help maintain a high order accuracy rate.
Gathering the right data and calculating the right key performance indicators (KPI) is a no-brainer when it comes to improving fulfillment operations. KPIs help to identify bottlenecks, plan out warehouse operations, and measure overall customer satisfaction. If you partner with a third-party logistics provider (3PL) to outsource order fulfillment, they should be instrumental in helping establish relevant key performance indicators and provide you with detailed reports. Whether the goal is to improve efficiency, reduce delivery time, or increase levels of customer satisfaction, there is an appropriate metric to measure progress and performance. The next question is what specific fulfillment metrics you should put in place to enable further discussion, which is what we’ll look at next.
Customer Metrics
On-Time Shipping Percentage: This refers to the percentage of orders which are shipped on time. Because as many as 70% of customers are less likely to shop with a retailer who does not meet the promised delivery window, this is a significant number to track.
Total Order Cycle Time: This refers to the average processing time from the moment a customer places an order to the moment that it is shipped. It includes all processes that fall within that window. As customers become more and more accustomed to same- and next-day delivery options, understanding how your operation performs and how you can improve your performance matters.
Internal Order Cycle Time: This specifically refers to the amount of time that it takes for your operation to process an order internally. Measuring the moment an order is released into the warehouse for processing to the moment that it is shipped.
Perfect Order Percentage: Perfect order percentage looks at several different metrics to determine what percentage of orders damage-free, ship on-time, complete, and with correct documentation. By understanding your perfect order percentage, you can take action to improve your order accuracy and other pain-points within your operation.
Inbound Metrics
Take note of what’s coming into your warehouse—if you don’t account for what’s coming in, it’s impossible to be accurate about what’s leaving. Specific KPI’s for inbound metrics include:
Dock-to-stock cycle
Inbound orders received
Lines received
Outbound Metrics
It’s all about ensuring a quick turnaround from receiving your products to shipping them off to where their destination. This is where contract packaging services come in to play for your warehouse. Specific KPI’s for outbound metrics include:
Order fill-rate
Orders picked per hour
Lines picked per hour
Line fill-rate
Outbound order fulfillment
Financial Metrics
Taking stock of pertinent financial metrics can make all the difference when it comes to determining your long-term strategy. Make sure that you’re cutting lesser-valued services and streamlining your operations where you can. Specific KPI’s for financial metrics include:
Distribution costs (as a sales percentage and per unit shipped)
To no great surprise, predictive analytics have become a staple of nearly every industry. The concept of using data to make better decisions holds water across several business types. However, predictive analytics platforms feature tools and designs specifically for logistics. Advanced analytics works by analyzing real-time data, predicting future situations, and prescribing complex, money-saving decisions on the spot. Fully leveraging the spectrum of predictive analytics is a must for current and future successes within the logistics industry. However, understanding how to quickly and frequently to act on insights from advanced analytics is becoming just as crucial. We will introduce you to the power that predictive analytics packs for the logistics industry.
Let’s define predictive analytics:
Predictive Analytics uses forecasts and statistical models to judge and provide recommendations about what could happen.
Customer Input
We all understand that there are two sides to every story. But in the end, input from your consumer holds a lot of value. Predictive analytics platforms can create and review customer profiles, gather more insights about that customer, including their shopping trends, demographic data, and additional KPI’s that allow you to fine-tune your marketing, sales, and supply chain operations to suit their needs.
Improving the Last Mile
Shippers spend most of their time and resources trying to find creative ways of improving the delivery experience for their customers. Predictive analytics allows shippers to discover inefficient operations, procedures, or performance; review the data, and recommend a series of changes.
This type of real-world information gathering is essential to improving last-mile logistics. Collecting data from GPS systems on delivery vehicles, instant information from mobile devices, and input from the customer directly and analyze all this information and predict future performance.
Fulfillment Practices
E-commerce generates a vast volume of supply chain data, which can be used to create near-real-time forecasts and accommodate sudden changes in demand. This information can leverage existing and real-time data to identify future trends, as well. In addition, order fulfillment can impact so many departments across your company — not only your warehouse but also sales and marketing, customer service, finance, and other teams. Any business intelligence you can use to streamline and improve those processes can save your business a lot of money.
Increased On-Road Efficiency
One of the most critical areas for shippers to focus on is on-road efficiency. Predictive analytics allows shippers and delivery companies to review their on-road performance with real-time visibility. It will enable you to review this data in multiple, customized reporting functions, and make changes along the way.
Whether it’s opening a new warehouse, changing a customer requirement or allowing us to deploy their WMS solution when necessary, Zethcon has become a true partner and extension of our business.
Although Taylor’s taglines have changed throughout our nearly 170 years in business, they’ve always been geared around our founding year. From “Since 1850″ to the longer ” Your Trusted Partner Since 1850″ we’ve never shied away from telling people our age. However, through recent research amongst our customers as well as industry experts, it came to our attention to rethink our tagline and our overall branding. No, we’re not getting rid of “Since 1850″, but it’s no longer our primary talking point. It’s moved to the secondary so we could talk about our processes and people first. We are thus repositioning our brand to the new era of ” The Nation’s Most Innovative Family Owned Logistics Company.”
Why the change? We asked our customers why they like working with Taylor. What sets us apart from the thousands of other logistics companies out there? Two key points stood out to us the most the first being the fact that we are a family owned and operated business, and the second being our innovation. Taylor is a mid-sized family owned business currently in 6/7th generation ownership. We provide a level of customer service that large corporations cannot. But more importantly, we are progressive; we stay up to date on our software, processes, and technology. But it doesn’t just stop there; our company culture is progressive. We rely profoundly on education and our quality program. Our quality program is a massive part of how we stay on the cusp of innovation not only is it apart of our mission, but it is also in our values. At Taylor, we have a saying: 85% on improving processes and 15% on innovation. That’s what makes us the Nation’s Most Innovative Family Owned Logistics Company.
Is it possible to utilize your warehouse space by over 100%? A Taylor warehouse location in Monroe, Ohio has over 13,000 locations, capacity and pallets with nearly 570 staged inventory. This warehouse is solely dedicated to one customer with two different types of products (cans and bags). During the February facility utilization report printed on 2/13 Operations Manager Shaun Fehr found a shocking figure that the space utilization was 101.15%.
How is this possible? Due to the high demand of the customers products it was a high priority for our operations team to figure out how to add more inventory with limited space. They came to the conclusion to put two pallets into locations that would normally just have one pallet. The below chart shows capacity as 13,158 and total palettes as 13,309 with this new configuration we are able to store 151 more pallets of product.
We continue to refine our practices in order to produce seamless and efficient work for our customers. It is important to us to focus on reducing cost and increase service throughout the DC network for our business partners.