Self-driving vehicles (driverless vehicles) are being tested throughout the world, with technology companies focused on bringing greater efficiency and profitability to the freight business.
Heavy hitters, including Uber with its recent purchase of Otto, and Tesla with its initiatives for autonomous driving platforms, have made waves throughout media outlets and investor groups alike.
However, driverless trucks have yet to gain full traction in the broad market for a variety of reasons.
Supply Chain is a very difficult business area to work in. It is not for the faint of heart. But the fact that it is such a challenging area, promising both risk and reward, is one of the things that makes it an exciting career path. At any point you can be on the Naughty list or the Nice list.
These are hard jobs. I’ve heard it said many times that just staying afloat in Supply Chain is success because there are so many things that could drown you from one day to the next.
And even though the Supply Chain is absolutely essential for running virtually any business the Supply Chain team doesn’t always get the recognition they deserve for keeping the company afloat.
So we felt that it was time to sit back and reflect on what kind of year you’ve had and think about what you’ve done, what you’ve overcome, and what you’ve accomplished.
What do you think? Are you on the Naughty list or the Nice list?
Aside from being a parent there is no better feeling than being a Grandparent!
A whole new world of joy and responsibility has begun for my son and his girlfriend. It is such an exciting time but their routine will be completely turned upside down as new parents.
They will have to figure out so many things that they never had to deal with before. Parents immediately have to care for their child in every way.
They have also just entered the world of the Baby Supply Chain!
Crowdfunding has given entrepreneurs and inventors greater access to startup capital. You might not be able to get seed money or Series A funding from a venture capital firm for your idea, but backers on Kickstarter or Indiegogo could give you just the leg up that you need.
Crowdfunding marketing is a strategy to raise funds for a project by asking a large number of people to donate money, usually in small amounts to fulfill the financial goals of the project. Crowdfunding, on the other hand, gives you a quick place to showcase and share your pitch with a bigger audience.
Every stage of the logistics process of delivering goods is crucial from the time a parcel leaves the hands of the Sender up to the moment it arrives at its destination. This is called last mile delivery.
While each step of the way should be taken seriously, there is no point more high-priority than that of the last mile delivery stage, where the goods from a transportation hub move to their final delivery destination.
The goal of last mile delivery is to transport an item to its recipient in the quickest way possible. This has been driven by the continuously evolving market and demand for convenient customer experience across industries such as e-commerce, food, retail and many more.
The logistics industry is worth over $8.1 trillion. Not only it is an incomprehensibly big market, there are countless factors shaping it.
Globalization introduced a new level of complexity. International shipping has become a norm and customer expectations are higher than ever: we want our shipments on time, delivered as soon as possible and for this complex service we are willing to pay less and less.
In order to meet these high expectations and keep their customers satisfied, logistics service providers have to reach a never-before-seen level of efficiency.
Logistics is only seldom mentioned when we talk about innovation: industries like IT, telecommunications and automotive are the ones that first come to mind. Yet logistics, which represents an enormous opportunity given its size and its potential growth, has undergone a major transformation as well and the process is not close to an end.
The following infographic shows us how two multi-billion dollar companies, Uber and Amazon are revolutionizing the industry. Will a taxi app and an online retailer be the ones setting the new standards?
Amazon and Uber are the two giants in the industry. And the E-Commerce marketplace requires companies to provide a fast, free (or inexpensive to the customer), and reliable last mile delivery solution. This tremendous article provides a great characterization of Amazon and Uber in the Last Mile marketplace.
Amazon and Uber article and permission to publish here provided by Sam White at Argentus. Created by trademachines.com. Originally published on Supply Chain Game Changer on December 6, 2017.
With the increase in the popularity of e-shops and delivery companies, the e-commerce logistics business keeps growing. It faces more and more challenges, as customers need companies to be quick and increase their logistics performance more than ever before.
What does it mean for your business? This article explains why understanding and following the key trends in logistics e-commerce are crucial for organizations that want to save their place in the supply chain and get better results with less effort.
While immensely popular in the United States, self-storage solutions have remained pretty uncommon throughout Europe… that is, until now.
More and more entrepreneurs are recognising the untapped opportunity presented by the storage industry and as a result we are seeing a major increase in the availability of facilities in Europe.
Supply Chain innovation is a team effort requiring collaboration and buy-in from all levels within an organization, and it’s especially true when it comes to bringing innovation to the supply chain.
While new and buzzworthy technologies like drones and robotics are consistently being introduced, innovation for the supply chain is truly a continuum of small improvements that make a greater impact – whether it’s improving processes or the overarching business model.
Supply chain leaders and heroes will face the year with uncertainty and opportunity. Digital technologies are becoming more prevalent in basic supply chain functions, and changes in legislation are likely to spur dramatic changes that will result in the need to reevaluate supply chain strategy in both domestic and international locations. How can they be Supply Chain heroes?
Similar to the supply chain maturity curve of technologies, as explained by Steve Banker of Forbes, supply chain managers should consider how top supply chain trends will influence operations in the coming year.
Even though modern coffee machines offer an attractive variety of caffeinated drinks like cappuccino or latte macchiato, for me it is a simple cup of black coffee that helps kick-start my productivity when the clock strikes 8 am.
This “kick-start”, or boost aspect of coffee was randomly discovered between the sixth and the ninth century. A widespread tale sets the scene in the kingdom of Kaffa, in Abyssinia – which today is Ethiopia – where a shepherd one day observed that his sheep were unusually cheerful after eating white blossoms and red cherries from a previously unknown plant.
Prior to one Holiday season several years ago the volume that was coming into the Distribution Centre receiving area was unprecedented and unpredicted. We were out of room on the docks and we were out of storage space but trucks kept on coming. And we were still weeks away from being able to ship product to stores to relieve the pressure.
We were gridlocked. We kept inching our way along but we were very, very close to having this traffic jam of activity shut us down.
Online shopping has become an integral part of many consumers’ lives. The increased volume of parcels shows that this new way of acquiring goods and services and the provision of tracking information is here to stay.
While a lot of packages are successfully delivered, sometimes, they can get misplaced, damaged, and in worst cases, lost. For these reasons, many customers will want to know the exact location and status of the items they ordered to ensure that it will safely arrive in their homes.
Modern transportation and trucking is currently experiencing major changes thanks to transformative transportation technologies. Although we’ve become accustomed to long international flights, jam-packed public transportation and diesel trucks that only get 20 mpg, the future of transportation promises to change all of that and much more — and it’s closer than many people realize.
Let’s take a look at 6 transportation technologies sure to impact the trucking and transportation industries forever.
E-commerce is defined as the buying and selling of products or services exclusively through electronic channels. If you’ve made an online purchase through eBay, Shopify, Amazon (through Amazon FBA), and other platforms, then you have made your purchase via an e-commerce site. More and more people spend their time browsing on the internet and the more likely they are to buy stuff online.
Admittedly, the e-commerce industry is booming. Retail e-commerce sales in the United States are projected to grow at a fast pace in the coming years, going from 322.17 billion U.S. dollars in 2016 to just over 485 billion US dollars in 2021.
Why You Need Order Fulfillment Services
If you’re looking for a business that will eventually get you out of your 9-5 job, or looking to expand your existing business, having an online presence and web-based store could fulfill this goal. For beginners in the e-commerce trade, what do you need to do to get more sales, with a lot of online businesses competing for customers’ attention?
Customers want products that will give the best bang for their buck with speedy delivery, and good after-sales support. Here’s where the different companies offering order fulfillment services come in.
What is an Order Fulfillment Service?
Order fulfillment is defined as the steps involved in receiving, processing and delivering orders to end customers. A fulfillment service is defined as a third-party company that provides these order fulfillment steps on behalf of another party, such as an online seller.
FBA, or Fulfillment By Amazon is a business model wherein e-commerce sellers on the Amazon Marketplace, big or small, can have their products stored in any of Amazon’s giant warehouses, pack and deliver them to customers, handle customer support, and returns.
FBA Pros
Expertise and Reach
Amazon has one of the most advanced e-commerce fulfillment service in the world, can help you scale-up or grow your business and as of the last measured period, the source estimated 90 million paying Amazon Prime subscribers in the United States, up from 63 million in June during the previous year.
Amazon Prime customers are eligible for 2-Day Shipping, Free Shipping and other benefits. If you sign up your products for Amazon Prime, your products are eligible for free shipping, too.
Customer Service and Returns
FBA handles customer service and returns. Listings are displayed with the Prime logo, so customers know that Amazon handles packing, delivery, customer service, and returns.
They handle the fulfillment services side of the business and saves your time, so you can focus on the other aspects of your business.
Multi-Channel Fulfillment
With Multi-Channel Fulfillment, you can fulfill orders from other sales channels using your inventory stored in Amazon order fulfillment centers. Single-source your inventory to streamline your fulfillment operations, manage your inventory through an online user interface and can direct Amazon to return your inventory in e-commerce fulfillment centers at any time.
Cons of using FBA
Customization
Little to no order customization. Sellers must comply with existing Amazon .processes.
Branding
Items are shipped in Amazon boxes. Sellers can ship in generic boxes which may cost extra.
Warehouse Pricing
Storage fees are generally higher compared to 3PLs and usually rise during holidays.
Higher order handling fees for non-Amazon orders.
Communication
Solutions are based in standard processes which may pose little opportunity for dialogue.
Conflict of interest
The fact that Amazon may actually be a competitor to the seller. Amazon is in the business of selling, they just happen to offer shipping services. For Amazon, it’s free product and market research, and they’re making money off you.
Third Party Logistics (3PL / TPL)
Third–party logistics in logistics and supply chain management is a company’s use of third party businesses to outsource elements of the company’s order fulfillment services.
Pros of Using 3PL
Customization
Boxes/bags and all internal packaging are customized to a specific brand. Processes are adapted to your business’ operation and specification.
Warehouse Costing
Attractive storage costs that is variable. Customer pays storage space on a given month. Some 3PLs even offer free warehouse storage for a limited time.
Communication
Has onboarding processes, frequent communication before and after product launch. Collaborative approach is encouraged.
B2B (Business to Business)
Certain 3PLs can handle both B2B and B2C (Business to Consumer) fulfillment, resulting in one e-commerce fulfillment partner for all sales channels.
Cons of Using 3PL
Finding a Trustworthy 3PL company takes time.
Not all 3PL providers are created equal. It takes time to find a good company to work with from the beginning. Once you find someone you can trust, you can rest assured that your goods are being properly cared for. The initial search could be stressful but it will all be worth it once you find a reliable 3PL company.
Bad Service Reflects on Your Company
An inefficient 3PL provider could make your company look bad. Your customers do not care who is in charge of getting the product to them. All they care about is the end result. It is very important to look for a good distribution center early on to avoid customer-satisfaction issues in the future.
Amazon FBA or 3PL in Conclusion
Order Fulfillment Services are a crucial part of your business and a major factor in determining its success or failure. Whether you entrust your fulfillment services to FBA or a 3PL, there is a greater chance that you will be in good hands – these are fulfillment experts, after all. The key difference is you as the owner, – what do you want for your brand and what kind of customer experience you want to give to your consumers.
If you are happy to use Amazon’s existing system and tap into their wide customer reach, FBA may be a perfect fit for your company. If, however, you would like more control over your order fulfillment services, partnering with a 3PL could be the best solution. Make sure your order fulfillment service provider is experienced with the type of operations you need before you entrust them with your reputation.
Amazon FBA article and permission to publish here provided by Dona Dimaculangan at 3p-logistics.co.uk. Originally written for Supply Chain Game Changer and published on March 8, 2018.
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