The Future of Supply Chain: 5 Critical Changes to Make Today

The Covid-19 pandemic has set off a period of profound change that we are currently experiencing. Both the supply chain and society as a whole were impacted by these shifts. Today’s diverse difficulties have demonstrated the need for applying certain tactics in order to change course. From manual to digital, from worldwide to local, from offline to online, and from in-person to remote. There is much to be done, and we must act immediately.

The present changes include opening up new business models and a new management vision in addition to investing in technical tools for the operation.

According to a study conducted by the global technology research firm Gartner, 38% of supply chain executives worry that their companies are not set up to handle the problems that lie ahead for the next two years. According to the group, the COVID-19 issue sparked a significant shift in logistics firms, but more significant change is still to come.

Gartner has identified five shifts that will occur over the next five years under this new situation. Through this article, you will come to know them. Prepare yourself to enter the supply chain of the future!

Read also: Top 4 Logistics Automation Trends That Everyone Should Be Aware Of

5 Changes to Make in Your Supply Chain Today

The five changes to the supply chain that Gartner is focusing on over the next five years are digitization of the supply chain; globalization and offshore; new business models; migration to e-commerce; and remote and dispersed teams. You must be inventive, flexible, and have a solid framework in order to adjust to them. You should also rely on cutting-edge technologies. The most crucial thing to remember is to prioritize the customer experience.

See the specifics of these modifications as well as Garner’s predictions for the supply chain’s future below.

1. Digitization of the supply chain

Gartner reports that by 2025, twenty-three percent of supply chain executives anticipate having a digital ecosystem. For these people, the next ten years will see a significant shaping of commercial potential due to digitization.

With the use of technologies like the Internet of Things (IoT), digital twins, and blockchain, which can improve network collaboration, visibility, and risk management, the organization is able to achieve more resilient and flexible logistics. Gartner claims that digitalization and real-time end-to-end information exchange enable businesses to react more quickly and effectively to unforeseen shifts in supply or demand.

2. Globalization and offshoring

In the next five years, 46% of supply chain leaders expect a fall in globalization, and 61% expect a decline in manufacturing outsourcing, according to the recent Gartner survey.

Experts from Gartner believe that the current state of globalization is under strain because of complicated supply chains, consumer demand for products made in other nations or continents (such as China’s IFA for vaccines), more capital turnover, and longer lead times. In this regard, it is advised to reevaluate offshore and network strategies and find a balance in reshoring in order to control costs, address tax ramifications, and take advantage of local market opportunities. Thus, the approach needs to focus on reestablishing the equilibrium between local, regional, and global chains.

Garner envisions a situation in which manufacturing diversification—which was already under progress prior to 2020—is sought after in order to enhance resilience and agility. “Almost half of supply chains will move production to different countries or regions. Companies will invest in localized sourcing aiming for resilience, agility, and sustained growth in local markets – for example, training small local companies to manufacture for global supply networks”, highlights the agency.

3. New business models

A Gartner study found that 79% of supply chain executives believe the new business model to help post-pandemic recovery is an internet/platform-based strategy. The group predicts that CEOs will use the chance to “reset,” or reconstruct, their companies for the new normal.

In order to do this, supply chain tactics must be reviewed and adjusted to fit with new business models. This entails keeping an eye on demand-side costs as well as consumer segmentation. Supply chains will acquire the operational skills necessary to fulfill each of the goals linked to various values, predicts Gartner.

4. Migration to e-commerce

Additionally, according to the Garner survey, 69% of supply chain firms predict that over the next five years, consumer willingness to visit stores will decline.

The government’s blockades and the public’s fear of Covid-19 contamination led to a decline in foot traffic in physical stores. Spending by consumers on e-commerce increased, which hurt businesses that did not open up shop online or even integrated their online and offline platforms.

Therefore, in order to provide the customer with outstanding service, changes must be made as soon as possible, optimizing logistics. Building scalable capacity, including online buying and returns service, and reevaluating network design to enable a more profitable operating model that supports the volume shift to e-commerce are among the recommendations made by Gartner.

According to Garner, businesses will make an attempt in the future to provide the greatest possible shopping experience and cater “to the extreme” to each customer’s tastes. Offering individualized goods and services that are accessible wherever, at any time, is part of this. Investing in the appropriate tools will result in lower costs and a better customer experience.

5. Remote and distributed teams

Lastly, an important statistic from Gartner: 98% of supply chain executives see a rise in remote work over the next five years.

Logistics companies have traditionally been culturally built around local, face-to-face work. However, this scenario started to shift with the epidemic, and it seems like it will keep evolving. Garner advises employers to “showcase empathy and flexibility.” Encourage the use of a hybrid workforce and create strategies for raising remote teams’ output.

Experts from Gartner predict that supply chain companies will have a hybrid workforce in five years, alternating between in-person and remote labor. The rise in remote employment will provide the organization with easier access to talent. “Technologies for tracking productivity will be widely used, as will virtual practices for recording time and monitoring computer use. Physical plants, warehouses, and corporate offices will continue to exist, but they will increasingly become spaces for collaboration and innovation”, highlights Gartner.

Is your company ready for these supply chain changes?

The changes that Gartner has identified are already in operation. This is the ideal moment to start implementing them in your organization, always striving to strike a balance between customer-centricity and business success.

To accomplish both goals, it is necessary to be ready for both the present and the future. Accordingly, Gartner identifies the key movements as “benefiting all parties involved,” “being purpose-oriented,” “focusing on innovation and collaboration,” and “taking positive measures to improve environmental and community well-being.” Today is the beginning of the change!

Do you want to guarantee the supply chain’s future success for your company? Reach out to us immediately.

A company is only a few steps away from going out of business if it decides against investing in logistics automation.

This is because trends and technologies are created to keep up with shifts in consumer behavior, new sustainability criteria, better efficiency, and decreased errors among many other factors that spur innovation in logistics systems.

For instance, the majority of product shipments were done in palletized loads with few SKUs decades ago. Fractionation and assembly of mixed pallets with several SKUs are commonplace in numerous operations nowadays.

In particular, distribution centers (DCs) require a great deal of dynamism and agility to sustain high levels of product and material movement without sacrificing efficiency or control. A reality that employs innovation and new technologies to become far more feasible.

This article will discuss four logistics automation trends that you should be aware of and keep up with in order to decide which to use in your business and when. Read on for more.

Read also: Top 5 Essential Tips for Mastering Efficient Logistics Management

Top 4 Logistics Automation Trends That You Should Be Aware Of

Automation

Automation provides a number of ways to maximize working hours, increase productivity, and cut expenses. Automation is the process of improving operational processes with mechanical or electrical equipment while requiring the least amount of human intervention.

Because of this, businesses—including those in the logistics industry—are requesting these solutions more and more.

Systems like WMS, TMS, routers, AGVs, elevators, and shuttle cars are very frequent logistics automation solutions in the daily lives of people who work in warehouses, stocks, receiving and shipping areas, or logistics distribution centers (DCs).

Mechanization

Mechanization is a popular trend in warehouse operations that uses conveyor belts and moving face systems like the Sorter, which separates and sorts products based on where they are going.

The Push-Back and Dynamic systems in storage structures are further instances of mechanization that support LIFO and FIFO operations, respectively.

Together with automatic scales, cubers—which measure the quantities that move through the conveyors and immediately notify the cubage for freight calculation—are crucial advances in the transport industry that help to expedite and strengthen the assertiveness of processes.

Robotization

Robotization is becoming more and more popular in logistics automation, mainly among major e-commerce companies and huge players who operate as logistics operators.

Robotics not only optimizes operations but also raises safety standards and lowers the possibility of mishaps and human mistakes.

Image source: Wikimedia Commons | Top 4 Logistics Automation Trends That Everyone Should Be Aware Of

Among the various options, Autonomous Mobile Robots, or AMRs, are employed to move loads in warehouses. Through Artificial Intelligence (AI), they can instantly adapt their routes and minimize the risk of collision with other machinery, personnel, goods, or shelves.

By 2025, 50,000 warehouses worldwide will have more than 4 million robots installed, predicts consulting firm ABI Research.

It is improbable that autonomous vehicle operations will materialize in all parts of the world anytime soon in the cargo transport sector. However, technology will undoubtedly play a crucial role in enhancing the nation’s logistics operations.

Logistics 4.0

The fourth industrial revolution gave rise to the idea of logistics 4.0, which increases connection and controls over logistical procedures while also taking automation of logistics to a new level.

According to a new Gartner study, supply chain teams will heavily embrace digital technologies in the upcoming years to enhance decision-making and management of warehouses and DCs.

According to Gartner, logistics automation trends indicate that:

• More than 75% of businesses will invest in technologies like big data and artificial intelligence by 2026;
• 75% of large enterprises will have implemented intelligent robots in some capacity to automate logistics activities;
• Business executives’ expenditures in cloud storage are predicted to go even higher in 2024.

Real-time tracking and monitoring of items is made possible by smart packaging technology, commonly referred to as packaging, for manufacturers and retailers. Since technology is constantly developing, further advancements are probably in store for us in the years to come.

Conclusion

Canadian logistics is attempting to stay up to date with international innovation and technological advancements, even if gradually. As a result, keeping up with new advancements is essential to keeping the market’s level of competition acceptable.

Having the money to spend on logistics automation is not enough, though; you also need to foster an environment that encourages innovation both inside and outside of businesses.

Other obstacles that must be overcome include modifying the work and management methods as well as the organizational culture. Companies must alter their organizational structure in addition to the way they create value.

Image source: Medium | Top 5 Essential Tips for Mastering Efficient Logistics Management

Efficient logistics management is critical to the success of companies that rely on this sector for their operations. This is mostly because logistics control procedures are getting more complicated all the time in an effort to satisfy a market that is picky about efficiency and quickness.

Dealing with market pressure, technical advancements, and demanding customers can all feel like Herculean tasks. However, these goals can be met and amazing outcomes, including lower costs, faster delivery, and improved customer relations, can be obtained with the correct management.

Read also: Different Types of Logistics Companies: Which One Should You Choose?

Companies of all sizes can benefit from good logistics management

It makes sense that larger businesses would be more concerned about logistics. In the end, a larger company has more processes in all of its areas, including logistics, which makes it more complex and demands more work and attention. But small businesses can’t (and should) care about how they handle their logistics because they have fewer processes.

To put it briefly, any business that wants to grow in an organized manner must address its logistics from the outset. The best strategy to ensure linear and steady growth and prevent stagnation due to operational or physical restrictions related to the growth in demand is to anticipate the demand for improvements that the market would desire.

Top 5 Essential Tips for Efficient Logistics Management

No matter how big or small an organization is, it is evident how important and valuable logistics are. You’ll discover some crucial advice for improving, streamlining, and boosting productivity in logistics down below. Take a look!

1. Define performance indicators (and monitor them)

Setting up performance indicators is necessary, and it starts with the principles of logistics administration. What do they consist of? These are the well-known Key Performance Indicators or KPIs. They are employed to gauge and track the effectiveness of a business’s procedures in order to pinpoint both advantages and disadvantages. A corporation can set up multiple indicators for each of its sectors.

We can utilize the ones that are most crucial for this field of business when considering logistics. Following is a list of a few examples: Delivery schedules, quantity of deliveries, and expense per item moved; Transport and storage quality and safety; incident and loss rates; satisfaction of customers and business associates.

2. Invest in technology to modernize your logistics

There will come a day when human capability alone will not be sufficient to handle the vast volume of data and requests, depending on the expansion of each organization.

However, with the help of technology, this challenge can be solved in a very effective and useful manner. There are several advantages to automating and streamlining your processes, including more output, lower expenses, fewer mistakes, and the ability to collect precise data for decision-making.

In this manner, not only can you streamline all phases of your logistics, but you can also allocate your skilled labor force to more critical tasks. Numerous technologies and tools are available for use. Next, we’ll go over some of them.

Top 5 Essential Tips for Mastering Efficient Logistics Management | Image source: Flickr

WMS

Modern stock control is made possible by the Warehouse Management System, or WMS for short. It allows for the management of every procedure that takes place in a warehouse, including product inventory, shipping, receiving, storing, and separation.

Big Data Analysis

As we just discussed, using precise and structured data facilitates crucial decision-making for leaders. The technology that enables the simple and effective examination of massive amounts of data, which is becoming more and more prevalent in logistics operations, is known as big data analysis.

TMS and Geolocation APIs

The Transportation Management System, or TMS for short, is a system that focuses on transportation management. It will enable you to efficiently and practically handle every aspect of the transportation routine, including fleet administration, cost control, and delivery tracking.

On the other hand, geolocation APIs are add-ons (like Google Maps) that can be integrated with TMS systems to improve address entry and validation, asset tracking, fleet optimization (from collection to delivery), and the display of the quickest and safest routes.

3. Monitor your stocks

There is no logistics management without proper inventory monitoring. For example, you should be mindful of objects that are extra or that have been left unattended for an extended period of time. They are losses because they take up storage space that could be used for more profitable and faster-moving products.

However, in a similar vein, the shortage of particular goods can also result in losses since it jeopardizes the delivery schedule and production line. Maintaining accurate inventory control means that you should always aim for balance, determining how much of each product is required based on data-driven strategic analyses.

4. Collect, classify, and analyze your company’s daily data

Let’s get back to discussing the value and power of data. First, let’s acknowledge that we are currently experiencing what is being called the Fourth Industrial Revolution, thanks to the development of Industry 4.0, which is centered around automation technologies.

Large amounts of data are produced daily by computer systems used in logistics operations, such as the aforementioned TMS and WMS, and they must be used wisely. They are, after all, what makes precise analysis possible to enhance an organization’s logistics using the idea of supply chain analytics.

5. Plan for crisis management (they can happen)

It is unpleasant for anyone to consider that they may need to handle a crisis. However, the truth is that they can manifest for a variety of causes at any time. Many can be avoided, but for others, an action plan to lessen losses and damage is required.

Effective risk management in logistics requires consideration of things like product damage, cargo theft, delivery delays, and accidents carried out by different factors. The secret to minimizing losses is to prepare for circumstances such as these.

Learn how 3PL Links can help you with Efficient Logistics Management

3PL Links can significantly enhance logistics management by leveraging their expertise and resources. We provide comprehensive solutions including technology integration such as WMS and TMS systems, real-time data analysis for informed decision-making, and robust inventory monitoring. By utilizing these advanced tools and strategic approaches, 3PL Links help companies streamline their logistics processes, reduce costs, ensure timely deliveries, and improve customer satisfaction, ultimately facilitating steady and efficient growth. Contact us to learn more about how we can help your business thrive in the competitive market.

3PL Links Warehouse in Vaughan, ON | Top 7 Advantages of Outsourced Warehousing

Can your business cover the whole cost of inventory? If not, outsourcing your warehousing can be the best option! Gain a deeper understanding of the subject in this post today.

Calculating the costs associated with storage is a complex process that involves considering various factors such as the facility’s layout, internal transportation, machinery, product support, qualified workers, and so on. Is your business currently unable to pay for all of these expenses? Learn about outsourcing warehousing now!

Read also: Top 10 Best Logistics Practices to Ensure the Success of Your E-commerce Business

What is outsourced warehousing and what is it for?

It’s crucial to keep in mind the primary service categories found in this area in order to comprehend what outsourced storage genuinely is. These categories are listed below:

• Own storage: this type of service is provided when the business manages the stock warehouse; as a result, both the manufacturing spaces and the warehouses that are used are owned by the business.
• Contracted storage: In this type of storage, the manufacturer just leases the actual space needed to distribute the products; they are still under their control and logistical supervision.
• Outsourced warehousing: Lastly, the main attraction of our content is the option where the products are managed and administered entirely by the outsourced logistics firm. Stated differently, the manager is not concerned about bureaucracy.

To put it briefly, a business that uses outsourced warehousing seeks to ensure that its goods and inputs are distributed within a suitable physical area that is adequately organized and managed. Even when logistics are conducted outside of the company’s boundaries, the goal is nearly always to increase efficiency. The reasons for this are as varied as possible.

As a result, the procedures are quite identical regardless of the approach selected or the logistics partner handling the operation. Therefore, the following steps are typically included in the storage flowchart: receiving the items, checking (also known as inspecting), identifying and addressing, storing, separating, dispatching, and delivering.

It is noteworthy that different storage types have the ability to optimize each of these phases. For instance, there might be a process of area-based separation, software-based identification, checking for greater numbers, and so forth. Even if we are aware of the concept and operation of outsourced storage, many businesses are still unclear if this is the appropriate business model for them. Understanding the benefits of this modality is the best method to make this choice.

What are the advantages of warehouse outsourcing?

Companies can benefit from outsourcing storage, which is why we’ve compiled the most notable instances of how this service can benefit your company. Look it over below!

Cost reduction

This is one of the things that most managers find interesting about outsourced storage, as the list of expenses that are cut when space is outsourced includes things like electricity, machinery, buildings, skilled labor, and other expenses related to the space’s maintenance and operation.

Tax cuts

If the business operates inside the same state, the ICMS (Tax on Operations related to the Circulation of Goods) may be suspended, and the IPI (Tax on Industrialized Products) may be excluded at the federal level.

3PL Links Warehouse in Vaughan, ON | Top 7 Advantages of Outsourced Warehousing

Best structures

Your goods can profit greatly from the use of appropriate storage structures. Otherwise, improper structures damage stored goods and result in work accidents. In simpler terms, when partners have solid frameworks, outsourcing logistics becomes fascinating as well!

Less bureaucracy

The management can hire strategic partners who can minimize small-scale administrative hassles with documents, regulatory agencies, and other bureaucracy by depending on outsourced storage.

Best location

Businesses might outsource inventories to more strategically located sites by considering the optimal logistics and the model to be employed. As a result, there is increased delivery agility and decreased route expenses.

More technology

Having the right technology allows your business to stay up-to-date with trends, which benefits customers. For example, order tracking is computerized and accessible to anyone. On the other hand, managers might act more assertively in the industry by keeping an eye on the entire supply chain. Additionally, receiving updates regarding orders and shipments increases the satisfaction of customers.

Process visibility

As a result of everything, managers are able to assess the situation holistically and have a far wider perspective of the procedures in this industry. This kind of viewpoint enables more forceful, prompt, and strategic decision-making without sacrificing client focus.

Can you see how hiring an outsourced company can benefit your organization in a number of ways? Your company might benefit greatly from outsourcing storage if you want to grow and boost sales. So, you may rely on 3PL Links Warehousing for assistance in maintaining the organization of your storage!

Invest in outsourced warehousing with 3PL Links!

3PL Links provides top-tier warehousing solutions tailored to meet the diverse needs of businesses across North America. Our strategically located distribution centers ensure your inventory is always within reach, optimizing your supply chain efficiency.

To keep your stock organized and easily accessible, we utilize pallet rack storage, maximizing vertical space to enhance storage capacity and streamline inventory management.

Our advanced warehouse management system (WMS) ensures precise dispatching. With real-time data collection, we provide comprehensive traceability for every item, offering you total visibility and control over your inventory.

At 3PL Links, we combine diversified storage structures with cutting-edge management systems to deliver customized solutions that address your specific requirements.

Contact us today to learn how we can support and enhance your business operations!

Logistics in E-commerce: Challenges, Importance and Best Practices | Image source: Flickr

Logistics is one of the most important and difficult parts of e-commerce for modern online businesses. The exponential growth of e-commerce creates an ever-growing need for dependable and effective logistics.

From definition to best practices for implementation, this article will cover every facet of logistics in e-commerce. Let’s go deep into this topic and share helpful insights to assist you in enhancing your logistics operations in the online age.

Read also: 5 Practical Tips to Improve Your Distribution Center Operations

What Is Logistics in E-commerce?

The process of managing the supply chain to satisfy the expectations of online commerce is referred to as logistics in e-commerce. This covers every task related to storing, moving, and delivering goods to the final customer.

The Importance of Logistics in E-commerce

An e-commerce business’s ability to successfully handle logistics is critical. Customer satisfaction may increase, operating expenses may drop, and a company can gain a competitive edge in the market with an effective logistics operation.

Additionally, as e-commerce keeps expanding, customers’ expectations for the quality and speed of deliveries are growing. Online merchants must thus make the necessary investments to streamline their logistical processes in order to satisfy these ever-changing expectations.

The Challenges of Logistics in E-commerce

Logistics, although an essential component of e-commerce, presents several distinct issues. Let’s examine some of the most typical problems that e-commerce companies encounter:

1. Inventory management

In e-commerce, inventory management can be a difficult task, particularly for merchants that sell a large range of goods. To guarantee there are enough goods to satisfy demand and prevent delivery delays, inventory must be balanced.

2. Delivery time

Customers of today demand prompt, effective deliveries. Agile delivery times are a concern for e-commerce logistics, especially as order quantities rise.

3. Reverse logistics

Online businesses also confront the difficulty of reverse logistics. This entails handling refunds, exchanges, and product returns. Reverse logistics must be done well in order to guarantee cost savings and customer satisfaction.

4. Customer satisfaction

eCommerce companies place a high premium on customer satisfaction. The entire customer experience is directly impacted by logistics, from the quality of packing to the speed of delivery. A logistical blunder may lead to unhappy customers and diminished revenue.

Best Logistics Practices in E-commerce

Image source: StockVault | Logistics in E-commerce: Challenges, Importance and Best Practices

Now that we are aware of the difficulties e-commerce logistics face, let’s look at some best practices to solve these difficulties and enhance your logistics operations:

1. Integration of systems

The effectiveness and visibility of your logistics operations can be significantly increased by integrating systems like ordering, transportation, and inventory. Your logistics processes can be tracked and optimized with the help of tools like transportation management systems (TMS) and warehouse management systems (WMS).

2. Process automation

Logistical tasks like order tracking, billing, and delivery confirmations can be automated to save time and minimize human error. Automation software can be used to do this, as can the application of RFID and barcode technologies.

3. Strategic partnerships

Your delivery skills can be enhanced by collaborating with reputable logistics companies. Transport providers with e-commerce logistics experience can expedite your logistics process and provide customized solutions.

4. Efficient packaging

Assuring product safety during transportation requires effective packing, which can help save shipping expenses. To optimize space and reduce environmental impact, employ proper packaging techniques and lightweight yet robust packaging.

5. Data analysis

Analytics of your data can yield insightful information about your logistics processes. Monitor important indicators like customer satisfaction, return rate, and delivery time to find areas for improvement and make well-informed decisions to enhance your operations.

6. Customer service

Make an investment in prompt, top-notch customer service. From the time of purchase until the after-sales phase, make sure your consumers have a positive experience by answering their questions and offering assistance.

Frequently Asked Questions about Logistics in E-Commerce

1. What are the main benefits of efficient logistics in e-commerce? Increased consumer loyalty, lower operating costs, a competitive edge, and higher satisfaction with customers are all possible outcomes of effective logistics in e-commerce.

2. How can I improve the delivery time of my products? You can think about route optimization, express delivery, and collaborating with e-commerce-focused logistics firms to reduce delivery times.

3. How can I effectively manage reverse logistics? Reverse logistics can be managed more effectively by creating a defined procedure for refunds, exchanges, and returns. Track and handle returns with the use of technology like RFID and barcodes.

4. How can I measure the effectiveness of my e-commerce logistics? Logistics efficacy can be evaluated using measures like customer satisfaction, return rate, delivery time, and operating expenses. To assess how well your logistics are working, keep a close eye on these measures and compare them to your objectives and industry standards.

5. What are the current trends in e-commerce logistics? The use of artificial intelligence to optimize routes, the use of sustainable packaging, and the rise in the usage of drones and robots for automated delivery are some of the current developments in e-commerce logistics.

6. What is the role of logistics in the success of an e-commerce business? The success of an e-commerce company is heavily dependent on logistics since it has a direct impact on competitive advantage, operating expenses, and customer happiness.

Conclusion

An essential component of every online retailer’s success in e-commerce is logistics. Gaining a competitive edge, lowering operating expenses, and increasing customer satisfaction are all possible outcomes of mastering logistics. You may enhance your logistics operations and make a name for yourself in the e-commerce industry by putting the best practices discussed in this article into practice and keeping up with the latest developments. TIME TO STAND OUT IS NOW!