You might think it's the glitzy new technologies that cause kinks in the supply chain, but more often than not, it's the older, established technologies that turn out to be the weak link.
You might think it's the glitzy new technologies that cause kinks in the supply chain (or create havoc with internal operations). And no doubt they do—just ask Nike or PetSmart. But more often than not, it's the older, established technologies that turn out to be the weak link—if for no other reason than they're in much more wide spread use than cutting-edge technologies.
Take the bar code, for example. Though the bar code has been in use for decades, tracking everything from cans of soup to rolls of carpet on their supply chain journeys, both technological and standardization problems still threaten its efficacy today. The technological problems, which defy easy resolution, can be particularly disruptive: A bar code that cannot be scanned often delays the movement of materials through a supply chain, costing everybody money. And if that supply chain stretches around the globe—as is increasingly the case, especially in the retail indust ry— the problems become that much more expensive and difficult to solve.
One stubborn problem has been inconsistency in bar-code verification: A manufacturer of consumer products uses Universal Product Code (UPC) bar codes that comply with all accepted international standards and specs, using a particular brand of verifier to quality-check the code. But when the product is shipped to the retail outlet, a different brand of verifier is used, producing different results. Both companies believe their readings are correct, which can make the resolution process a contentious one. In the meantime, operations come to a standstill while the dispute is hashed out.
To address rumored instances of inconsistent bar-code measurement, the Uniform Code Council (UCC), a not-for- profit organization that administers the UPC standards, conducted a global project with EAN International, a global organization that creates supply chain standards. Six leading bar-code verifier manufacturers participated in that study.
The research, which was carried out in both the United States and England, uncovered some interesting results. First, it turned out that all six verifier suppliers adhered to accepted standards such as ANSI and ISO specifications. But it also turned out that under the current ISO specification, the performance of two verifiers could differ from one another by a full letter grade and still meet the specified tolerance. That led the researchers to conclude that the tolerance for verifiers specified in ISO/EIC standard 15426-1 needed to be tightened. An amendment to the standards has been filed, and data collected on various vendors during the project will be shared with the vendors in an effort to improve their products.
While the verification story plays out, another bar-code related issue that could disrupt retail supply chains has emerged. That's the UCC's Jan. 1, 2005, "Sunrise harmonization initiative," which is aimed at simplifying worldwide commerce. To comply with the Sunrise initiative, all U.S. and Canadian companies must be able to scan both 8- digit EAN-8 and 13-digit EAN-13 bar-code symbols at the point of sale by the deadline. The EAN-8 and EAN-13 symbols are used globally except in the United States and Canada, where the 12-digit UPC code has been used to identify products for more than 30 years. That's forced manufacturers from other countries to re-label goods being sold in the United States and Canada with a 12-digit UPC symbol, creating additional expense and potential delays.
The Sunrise initiative has far-reaching implications for retail supply chains in North America, and different supply chain players will be affected in different ways. Retailers and distributors involved in retail supply chains need to expand systems,databases and all related applications to ensure their information systems can process 8- digit and 13-digit EAN symbols as well as 12-digit UPC symbols. Manufacturers and distributors of retail goods that mark their products with a UPC bar code do not have to change how they mark products, but if they receive products from overseas they should consider upgrading their equipment and systems to be able to identify products marked with EAN-8 and EAN-13 codes.
Supply chain disruptions from non-compliance with the Sunrise initiative will probably not be caused by large retailers or large manufacturers of consumer products, which likely already have the capabilities called for by the Sunrise initiative. However, small manufacturers and distributors may not be aware of the risks of non-compliance. Just as has happened with other supply chain initiatives, such as e-procurement, large companies must take control and overall responsibility of their global supp ly chains and make sure that all trading partners will comply with the Sunrise initiative. As always, a supply chain is only as strong as its weakest link.
States across the Southeast woke up today to find that the immediate weather impacts from Hurricane Helene are done, but the impacts to people, businesses, and the supply chain continue to be a major headache, according to Everstream Analytics.
The primary problem is the collection of massive power outages caused by the storm’s punishing winds and rainfall, now affecting some 2 million customers across the Southeast region of the U.S.
One organization working to rush help to affected regions since the storm hit Florida’s western coast on Thursday night is the American Logistics Aid Network (ALAN). As it does after most serious storms, the group continues to marshal donated resources from supply chain service providers in order to store, stage, and deliver help where it’s needed.
Support for recovery efforts is coming from a massive injection of federal aid, since the White House declared states of emergency last week for Alabama, Florida, Georgia, North Carolina, and South Carolina. Affected states are also supporting the rush of materials to needed zones by suspending transportation requirement such as certain licensing agreements, fuel taxes, weight restrictions, and hours of service caps, ALAN said.
E-commerce activity remains robust, but a growing number of consumers are reintegrating physical stores into their shopping journeys in 2024, emphasizing the need for retailers to focus on omnichannel business strategies. That’s according to an e-commerce study from Ryder System, Inc., released this week.
Ryder surveyed more than 1,300 consumers for its 2024 E-Commerce Consumer Study and found that 61% of consumers shop in-store “because they enjoy the experience,” a 21% increase compared to results from Ryder’s 2023 survey on the same subject. The current survey also found that 35% shop in-store because they don’t want to wait for online orders in the mail (up 4% from last year), and 15% say they shop in-store to avoid package theft (up 8% from last year).
“Retail and e-commerce continue to evolve,” Jeff Wolpov, Ryder’s senior vice president of e-commerce, said in a statement announcing the survey’s findings. “The emergence of e-commerce and growth of omnichannel fulfillment, particularly over the past four years, has altered consumer expectations and behavior dramatically and will continue to do so as time and technology allow.
“This latest study demonstrates that, while consumers maintain a robust
appetite for e-commerce, they are simultaneously embracing in-person shopping, presenting an impetus for merchants to refine their omnichannel strategies.”
Other findings include:
• Apparel and cosmetics shoppers show growing attraction to buying in-store. When purchasing apparel and cosmetics, shoppers are more inclined to make purchases in a physical location than they were last year, according to Ryder. Forty-one percent of shoppers who buy cosmetics said they prefer to do so either in a brand’s physical retail location or a department/convenience store (+9%). As for apparel shoppers, 54% said they prefer to buy clothing in those same brick-and-mortar locations (+9%).
• More customers prefer returning online purchases in physical stores. Fifty-five percent of shoppers (+15%) now say they would rather return online purchases in-store–the first time since early 2020 the preference to Buy Online Return In-Store (BORIS) has outweighed returning via mail, according to the survey. Forty percent of shoppers said they often make additional purchases when picking up or returning online purchases in-store (+2%).
• Consumers are extremely reliant on mobile devices when shopping in-store. This year’s survey reveals that 77% of consumers search for items on their mobile devices while in a store, Ryder said. Sixty-nine percent said they compare prices with items in nearby stores, 58% check availability at other stores, 31% want to learn more about a product, and 17% want to see other items frequently purchased with a product they’re considering.
Ryder said the findings also underscore the importance of investing in technology solutions that allow companies to provide customers with flexible purchasing options.
“Omnichannel strength is not a fad; it is a strategic necessity for e-commerce and retail businesses to stay competitive and achieve sustainable success in 2024 and beyond,” Wolpov also said. “The findings from this year’s study underscore what we know our customers are experiencing, which is the positive impact of integrating supply chain technology solutions across their sales channels, enabling them to provide their customers with flexible, convenient options to personalize their experience and heighten customer satisfaction.”
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Two European companies are among the most recent firms to put autonomous last-mile delivery to the test with a project in Bern, Switzerland, that debuted this month.
Swiss transportation and logistics company Planzer has teamed up with fellow Swiss firm Loxo, which develops autonomous driving software solutions, for a two-year pilot project in which a Loxo-equipped, Planzer parcel delivery van will handle last-mile logistics in Bern’s city center.
The project coincides with Swiss regulations on autonomous driving that are expected to take effect next spring.
Referred to as “Planzer–Dynamic Micro-Hub w LOXO,” the project aims to address both sustainability issues and traffic congestion in urban areas.
The delivery vehicle, a Volkswagen ID. Buzz battery-electric minivan, will feature Loxo’s Level 4 Digital Driver navigation software, a highly automated solution that allows driverless operation. The van was retrofitted to include space for two swap boxes for parcel storage.
During the two-year pilot phase, Loxo’s Digital Driver will navigate a commercial vehicle several times a day from Planzer’s railway center to various logistics points in Bern's city center. There, the parcels will be reloaded onto small electric vehicles and delivered to end customers by Planzer’s parcel delivery staff.
Following the completion of the pilot phase, Planzer and Loxo will build on the program for rollout in other Swiss cities, the companies said.
The partners said the project addresses the increasing requirements of urban supply chains and aims to ensure the “scalability of their disruptive solution.” With largely emission-free delivery, it contributes to greater levels of sustainability for the city as a living space, they also said.
“The uniqueness of this project lies in the fact that it will have a direct impact on society,” Planzer’s CEO and Chairman Nils Planzer said in a statement announcing the project. “We didn't just want to integrate automated technology into existing systems, we wanted to develop a completely new concept and a new business model.”
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.