Jeff Schmitz is senior vice president and chief marketing officer at Zebra. Mr. Schmitz most recently served as executive vice president for multiple business units and sales at Spirent Communications where he had previously also held several senior leadership roles including chief marketing officer and vice president of networks & applications. Prior to joining Spirent, Mr. Schmitz held senior marketing positions at Rivulet Communications, Visual Networks and Tellabs Inc. Mr. Schmitz holds a B.S. degree in electrical engineering from Marquette University and a Master of Science degree in computer science from the Illinois Institute of Technology.
2018 was a year of impressive growth for many manufacturers, transporters, 3PLs and warehouse operators: a strong on-demand economy led consumers to embrace the omnichannel retail model for everything from cars to clothes, big-ticket technology items to everyday grocery essentials. That generated increasing demands on manufacturing, warehousing, distribution and delivery services. It also placed renewed pressure on many organizations to invest in technology solutions that would enable them to meet new compliance, efficiency and cost standards enforced by industry regulators, partners and customers alike while simultaneously addressing a capacity shortage from both the warehousing and transportation perspectives.
In the last 12 months, many manufacturers took meaningful strides toward modernizing technology infrastructures in their factories and implementing fully paperless workflows. Warehouses began their migration from Windows Mobile and CE operating to Android-based mobile computers, and T&L leaders continued to upgrade their scanners and mobile computers to more advanced, reliable rugged technology platforms that can provide real-time guidance for drivers and loading dock crews. The goal is to keep things moving without delay, and these fundamental technology investments are mission-critical for companies that want to keep up with growing consumer expectations without compromising operational efficiency or precision.
But it is no longer enough to simply give workers a mobile device in lieu of paper-based forms or checklists. Manufacturers, retailers and their T&L industry partners have become highly co-dependent on one another to meet the expedited production and delivery deadlines dictated by the “on-demand economy.” There is a shared accountability to deliver what customers want, when they want it – and that requires supply chain organizations to deliver what their industry partners need, when they need it. Yes, using mobile technologies to collaboratively track and trace raw materials or finished goods, increase picking and packing speeds, conduct thorough quality inspections and manage real-time order changes is now mandatory. But so is continued innovation.
If anything is clear as we look ahead in 2019, it’s that mobile technology utilization is ripe for expansion, and many supply chains are well-primed to implement more advanced Internet of Things (IoT) solutions throughout their production, warehousing, and distribution operations. Real-time data accessibility – and a clear understanding of that data – have become essential to the improvement of supply chain performance and central to meeting consumers’ growing expectations.
Data Delivered Faster
Manufacturers, T&L providers and warehouse/DC operators require up-to-the-minute asset data to identify inventory locations, understand customer preferences, manage change orders, improve utilization and more. It is real-time data that empowers them to relieve congestion on warehouse floors, alert team members when materials have arrived, flag issues to managers and remain agile during periods of market volatility.
Openly sharing data with internal teams and industry partners via IoT technologies, wearables, rugged scanners or rugged mobile devices – such as handheld, tablet, and vehicle-mounted computers – can increase collaboration and help identify spot areas for improvement throughout the supply chain. In fact, sharing and acting on real-time data will likely differentiate enterprises over the next year, giving users of real-time data a performance edge over those lagging in their deployment of real-time data collection and distribution solutions.
Direct-To-Consumer Shipments
The prioritization of convenience for consumers reinforces the need for manufacturers and T&L leaders to invest in enterprise-grade IoT and mobility solutions. Business to consumer (B2C) and business to business (B2B) operations have traditionally been separate within these industries. However, with the growing popularity of e-commerce, there is more pressure for companies to accommodate a B2B2C business model. Drop shipping and direct-to-consumer shipments, or sending goods from warehouses directly to consumers, will continue to gain traction over the course of the next year. Successfully executing these two delivery models will require manufacturers and their supply chain partners to embrace digital technology architectures that facilitate the faster movement – and improve the management – of goods as they change hands from the factory through the last mile. IoT technologies are central to these architectures as they are uniquely capable of providing deep visibility into business processes and supporting increased transit speeds. They also keep customers continuously informed about the movement of their purchases, which keeps them happy and minimizes the burden on your team to field order status inquiries. But IoT is not just beneficial for asset tracking; though it certainly excels at that job.
Just consider the expansive capabilities of Zebra’s Savanna™ data intelligence platform. You have massive volumes of data flowing through your organization every second, but it is useless unless you have a way to quickly collect this data from your devices and sensors in real-time and then analyze that raw data to gain an accurate picture of your current business – and supply chain – performance. Savanna encompasses building blocks such as IoT, artificial intelligence and machine learning. The platform powers next-gen applications and solutions, allowing them to transform seemingly disparate nuggets of data into digestible, and actionable, insights that are accessible across a host of mobile computing devices that are already in the hands of workers, supply chain partners and customers. These intelligent edge solutions create the data-powered environments and provide the real-time guidance needed to replace “best guesses” with fully-informed decisions.
Ultimately, more enterprises will rely on technology-agnostic platforms such as Savanna to reveal the best path forward for their digital transformation. More manufacturers and T&L providers will be empowered to progressively innovate in a way that delivers fully digital workflows, increases efficiency, and makes business more profitable and productive, without being disruptive or wasteful.
It’s almost Halloween, and if your town is anything like mine, your neighbors’ yards are already littered with ghosts, witches and tombstones.
Clearly some of us enjoy giving other people a scare. Just as clearly, some of us enjoy getting a scare.
I’m not one of them. I hate haunted houses. I avoid scary movies like the plague. And I once jumped on top of several eight-year-old members of the Girl Scout troop that I was leading in order to escape a haunted hayride’s zombie.
However, that doesn’t mean I’m not capable of (wo)manning up and facing my fears, especially it’s for a good cause, which is why ALAN’s executive director, Kathy Fulton and I recently put our heads together to create this short list of some of the scariest perceptions that people have about disasters and disaster relief.
Scary Perception Number One: “A Disaster Will Never Happen To Me.”
When people live in certain areas (i.e. far away from a hurricane-prone coast or earthquake fault lines) it’s easy for them to assume that they’re protected from many types of catastrophes – and to become dangerously casual about making disaster preparations or heeding safety warnings.
Frankly, this attitude scares the heck out of us, because if the last few years have taught us anything, it’s that disasters can take a wide variety of forms and strike at almost any time. And the people who fail to plan – or to take shelter/evacuate as requested – are much more likely to find themselves in harm’s way.
Scary Perception Number Two: “It’s Okay. The Government’s Got It Covered.”
There are so many things wrong with this second perception that it’s not even funny. For one thing, not every disaster survivor qualifies for FEMA government assistance. For another, some survivors aren’t eligible for as much government assistance as others. Plus it can take some time for FEMA to process all of the requests for assistance that it receives and to conduct all of the necessary inspections that need to be made before it can provide funds. And even then, these funds are limited.
It’s a similar story for disaster survivors who are fortunate enough to have homeowners’ or renters’ insurance.
That’s why the humanitarian response organizations that provide food, hydration, shelter and other supplies immediately after a disaster hits (and the non-profit organizations that help survivors fill in the short-term and long-term gaps that government assistance and insurance reimbursement don’t cover) are so essential. It’s also why the people who support them are an answer to prayer.
Scary Perception Three: “We’re Too Far Away To Be Of Help.”
One of the laments that we often hear from potential transportation, warehousing and material handling equipment donors is, “We’d have loved to help you with relief efforts for X community’s disaster. But we didn’t have any locations in the area.”
The sad thing is, we probably could have used their help – and so could many of the humanitarian organizations that we support.
When push comes to shove, these organizations can’t afford to split hairs about where their donated relief supplies come from, especially if those supplies extend or enable their relief efforts. They might even NEED those donations to come from another part of the country because many of their closer potential product donors may have already been tapped out.
In light of this, never underestimate the value of a long-distance contributed logistics offer. Relief supplies are often located much farther away from a disaster site than you might imagine. And the help that you’re offering might be just the ticket.
Scary Perception Four: “It’s Been A Few Months (Or Years). So Survivors Of That Particular Disaster Don’t Need Our Help Anymore.”
If individuals and communities recovered from disasters as quickly as their particular disasters stopped making headlines, life would be much easier for everyone. However as any disaster survivor can tell you, that’s rarely the case.
Disaster recovery is a super-long process that’s usually measured in months or years rather than days or weeks. And many of its costliest and most work-intensive stages like clean-up and rebuilding don’t start until long after the news and camera crews have left.
So don’t ever think that there’s no way you can help a community just because the disaster that affected it happened quite a while ago. Chances are, that’s when your compassion and assistance will be needed the most.
Scary Perception Five: “Helping With Disaster Relief Won’t Pay The Bills. As A Result, There’s Nothing To Be Gained From Our Business Making A Financial Or In-Kind Donation.”
While it may not initially seem like you have anything financial to gain from helping a community in need, nothing could be further from the truth, especially if that community is home to some of your employees, customers, suppliers or business operations.
The people who live in these communities can (and do) remember who showed up for them when times were tough – and so do many other members of the purchasing public. In fact, according to recent article in the MIT/Sloane Management Review, multiple studies have shown that corporate donations ultimately attract customers. And according to another recent article in the Harvard Business Review, consumers tend to favor companies that donate a larger share of their profits.
Is this why so many of our country’s most successful organizations are also some of the most philanthropic? Possibly. However, if that’s the case, it’s okay by us, because when generous businesses do what they can to help a community get back on its feet more quickly, everybody wins.
Fear Not
There’s far more I could add to this story. But time and Halloween-candy buying obligations don’t allow me to discuss them all. Besides, I want to end this story on a caring rather than a scaring note.
So I’ll leave you with this: Even though disasters seem to happen with frightening regularity, I’ve actually become a far braver person since joining the ALAN family several years ago. It’s taught me that when horrible things like hurricanes, tornadoes and pandemics happen, a lot of wonderful people show up to help – and reminded me that when things are at their most harrowing, there are always extraordinary people like you ready to come to the rescue.
Just don’t ask me to go on a spooky hayride anytime soon.
"Spot solutions are needed to help a company get through a sudden shock, but the only way to ensure agility and resilience going forward is by addressing systemic issues in a way that is intentional and focused on the long term and brings together clear priorities, well-designed repeatable processes, robust governance, and a skilled team." - Harvard Business Review
An article published by McKinsey & Co. in August observed, “over the past year, many companies have made structural changes to their supply networks by implementing dual or multiple sourcing strategies for critical materials and moving from global to regional networks.”
This structural change pivots on the difference between low cost and best cost. The shift extends through Tier 1 Suppliers through lower tiers. The intent of a low-cost supply chain strategy is to present a low price to customers. A best-cost strategy adds factors beyond cost to the equation, like risk, lead time, and responsiveness.
The McKinsey article continues, “Ninety-seven percent of respondents [to the survey] say they have applied some combination of inventory increases, dual sourcing, and regionalization to boost resilience.”
We offshored, losing sight of the associated risk, for decades. Time to learn what near-shore, re-shore, regionalization, and localization mean.
As global supply chains become increasingly complicated, there are now more digital connections and business collaborations in the global shipping industry than ever before. Holding freight data in opaque, disconnected silos and relying on outdated methods of communication is not just inefficient - it’s unsustainable.
The global supply chain is no longer a linear process. Whereas before it was simply about moving freight from point A to B, now there is now a multitude of options for transporting that freight, each with its own unique set of capabilities and constraints.
So, what do shippers really want from their logistics service providers? Two things: accurate information at their fingertips and the ability to conduct business and transact - without having to pick up a phone or wait for email replies. Digital customer-facing freight execution platforms are the answer, collecting the most relevant and up-to-date data from carriers on one side, and providing shippers with a simplified and accelerated process on the other.
Digital freight execution platforms also provide shippers with a unified view of their shipping options, giving them the data they need at a glance to make an informed decision for any particular shipment.
Plus, as we continue to navigate uncertain waters, shippers are increasingly seeking solutions to increase resilience. After all, if there’s anything the last few years have taught us, it’s to expect the unexpected. The organizations that were able to pivot fastest came out on top. The availability of accurate data and solutions to action that data are key building blocks to resiliency in the face of new and unexpected challenges. Supply chain optimization, especially today, hinges on accessible, up-to-the-minute data, shared and acted on to keep freight moving as successfully as possible.
Digital Freight Execution Puts Power in Shippers’ Hands
Increasingly, freight forwarders and logistics providers are giving their shipper customers access to online freight execution platforms for just this purpose.
Largely unheard of just a few short years ago, online freight execution tools for shippers have quickly emerged to become a must-have for established forwarders to compete with startup digital forwarders. Logistics providers can no longer afford to go without offering this critical customer tool which enables shippers to access crucial freight data online, including timely visibility of their freight on the move. Their shipper customers have come to expect it, and it’s what’s needed to compete in today’s market.
Traditional methods of communication between shippers and freight forwarders can be slow and inefficient. Email and phone tag are not conducive to fast decision-making, and sales representatives may not always have the most accurate information about fleets, equipment, and routes. Digital freight execution platforms enable shippers and carriers to communicate in real-time, facilitating fast decision-making while eliminating the potential for miscommunication.
As digital conveniences proliferate our day-to-day lives (think of ordering food online, tracking your latest purchase, viewing your favorite shows on-demand, and so much more), it only makes sense that we should expect similar experiences in our work lives. That means that the traditional way of working in the freight industry, fraught with manual processes, phone calls, and emails, simply doesn’t cut it in today’s digital-first world.
What’s more, with timely freight data, shippers are better equipped to quickly address exceptions by changing transportation plans. Supply chain disconnections are costly. Responding to exceptions is critical to a smooth-running supply chain where shipments arrive at their final destination as planned.
“An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage,” Jack Welch
One of the outstanding things about a digital freight platform is the ability to integrate various functional modules to enable shipment data to be used and shared. These may include tracking and visibility, warehouse inventory, ocean shipments, freight rates, and even finance information, enabling a shipper to pay invoices online. Customer-facing online portals are an important and effective way to facilitate a shippers’ access to key shipment information, improving visibility and productivity on all fronts.
Partnering for Sustainable Success
Partner programs are another important aspect of connected digital freight platforms. This openness to integrate with a broad range of shipping industry businesses, such as technology or service providers, offers shippers the ability to access their partners through their forwarders’ customer-facing freight execution portal. This enables the shipper to have a comprehensive and complete flow of key freight data based on their unique needs and partners.
For example, if a shipper is using a real-time transportation visibility (RTTV) system provider, they can work with their forwarder to integrate the RTTV solution with the forwarder’s digital platform. This is only possible when the forwarder has a partner program enabling integrations.
All parties involved with a shipment can boost productivity and enhance value for the customer when they’re digitally integrated with freight transaction operational areas and partner providers. Technology companies who try to wall off access to the data they manage for their customers and their functionality have it backwards: they might create an appearance of their own business interests being protected in the short term, but long term, they’re either going to hurt their customers, or, more likely, their own product development roadmap.
Recent supply chain challenges have pushed BCO shippers and their logistics partners to take a much closer look at cargo flows. Accessible, convenient, and transparent freight data is now the expectation and necessary to control costs and keep cargo in view for optimal supply chain management.
Digital freight execution is the wave of the future, and it's already making a big impact in the shipping industry. Streamlining data flows by building out connectivity helps to bring greater logistics harmony that allows shippers to optimize their overall freight ecosystem.
America’s posture in world trade, and the underlying supply chains, are more than robust. According to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the United States balance of trade in goods and services deficit dropped to $70.6 billion in July. Exports hit the highest level in real dollars since tracking began over 70 years ago. During the recovery from Covid,, with reshoring and shifting market demands, are holding imports flat..
This success is happening despite the global disruption caused by Ukraine. Expect our labor shortages to continue. Expect wage pressure to continue. Expect inflationary pressures across the supply chain to continue.