Articles
Good Question
Good Question: What’s your best tip for retailers pivoting to direct-to-consumer (DTC) fulfillment?
Successful DTC fulfillment comes down to balancing customer acquisition cost, conversion rate, and average order value (AOV). AOV is critical—if it’s too low, shipping costs will eat up your margins. Keep AOV up by bundling products and using shipping partners who offer flexible fulfillment options that scale with you. –Aaron Galer SVP of Strategic Partners […]
Read MoreGOOD QUESTION: Has the pandemic accelerated logistics outsourcing? Why or why not?
The use of third-party logistics has accelerated since the pandemic, with new opportunities in last-mile e-commerce and carrier collaboration. We have seen tracked orders between network shippers and logistics service providers (LSPs) grow 340% year-over-year. As markets continue to rebalance, shippers still seek flexibility, resilience, and sustainability from LSP collaboration and innovation. –Tony Harris SVP […]
Read MoreWhat pandemic-era adjustment will have the greatest supply chain impact?
The acceleration of digital twins. The ability to digitally model a company’s manufacturing and distribution network will allow it to quickly assess the impact of large and small disruptions and take appropriate actions. —Allen Jacques Industry Thought Leader Kinaxis The use of data analytics to help suppliers really understand consumer behavior. Suppliers decided to eliminate […]
Read MoreWhat’s the biggest supply chain silo?
Readers shine a light on the most significant information lapses and data gaps in the supply chain, from transportation siloes to the lack of visibility into suppliers.
Read MoreHow can retailers compete with the logistics dominance of the e-commerce behemoths?
Don’t view this as a competition with e-commerce behemoths, but as another sales channel in your omnichannel strategy. Treat it as such and develop your strategy to provide differentiation on customer service and trust to be able to drive direct sales, while still leveraging other channels to build brand awareness. —Scott Hebert CEO SYSPRO USA […]
Read MoreWhat’s your best reverse logistics tip?
According to the National Retail Federation, the total rate of returns was 16.6% in 2021, up from 10.6% in 2020. The best way to reduce returns is to understand the total cost of your returns and to make sure your reverse supply chain is optimized along with the rest of your supply chain.
Read MoreWhat’s the difference between traceability and transparency in the supply chain?
Traceability is showing your customer where their freight is. Transparency is showing them how it got there.
Read MoreWhat is the biggest supply chain lesson you learned from the past two years?
The fragility or brittleness of a global marketplace so deeply dependent on just-in-time inventory. Any event, whether a pandemic, hurricane, or a container ship stuck in the Suez Canal, creates immediate disarray. In response, retailers have reverted to “just-in-case” practices, building up large safety stocks. It has become a choice between risking a stock-out or keeping costly excessive inventory. Where is the balance?
Read MoreHow would you summarize the supply chain in 2021 in five words?
A never-ending game of whack-a-mole.
Read MoreWhat’s the most challenging time-critical shipment you ever pulled off? How?
I worked for a 3PL in Holland that distributed surgical products. A Luxembourg hospital contacted us after hours, after realizing they did not have the right-size heart valve for a patient needing immediate surgery. One of our employees delivered the valve there in his car, saving the patient’s life.
Read MoreWhat’s the first thing you would do to address the truck driver shortage?
Improve the quality of life on the road. “Shipper of choice” and “broker of choice” wouldn’t be terms because they would be the norm, not the exception. Clean accommodations and safe resting/sleeping areas would be everywhere. Getting trucks loaded in under two hours would be the expectation everywhere in every sector. Higher standards for drivers from all partners = a better job = more drivers.
Read MoreHow can brick-and-mortar retail make a comeback?
Retailers are wise to prioritize flexibility rather than putting all their eggs into either in-store or online baskets. The future of retail may be brick-and-mortar for some, however many factors are still at play. It’s not a simple answer. The future is not one-size-fits-all. The ability to be nimble and proactive not only boosts efficiency, […]
Read MoreWhat is the secret to a successful shipper/3PL partnership?
Three fundamental pillars define a successful partnership: a direct application programming interface (API) integration, a shared target customer, and a partnership mentality focused on solutions. When any one of these pillars falter, the client suffers and that is unacceptable. As a 3PL, it’s our responsibility to help clients mitigate pain points and enable growth.
Read MoreHow has the pandemic affected supply chain partnerships?
The pandemic magnified the need for collaborative partnerships between service providers and customers. We have seen things happening in the market you almost couldn’t make up in Hollywood, and those that have remained transparent and collaborative in navigating these challenges have succeeded. —Matt Friedman Vice President, Sales, Warehousing Mainfreight Fluctuating production and consumer demand, coupled […]
Read MoreWhat fictional character or historical figure would you put in charge of global vaccine logistics and distribution?
Tony Stark, aka Iron Man, understands how to harness business and technology to get results—even if some of the measures needed are unpopular. His attention to detail and insatiable appetite for perfection would allow him to pivot and change course when faced with gaps in the distribution process that others may fear.
Read MoreWhat’s the supply chain buzzword of 2021?
AGILITY Companies must be nimble in their approach to logistics and warehousing operations. Corporations that embrace agility can quickly maneuver and clear roadblocks when disruptions arise. —Grant Koch Solutions & Innovation Director BDP International Over the past 12 months, we have seen disruptions within an already challenging global logistics supply chain. Traditional seasonal patterns and […]
Read MoreWhat’s your best importing or exporting advice?
In order to maximize efficiencies throughout the supply chain, logistics should be viewed from 30,000 feet above and decisions should be made by considering the entire process. Imports, exports, and all modes of transportation are reliant on the connecting nodes. It’s an ecosystem where sustainability is key.
Read MoreIf you were writing a book on the supply chain in 2020, what would you call it?
The Shift from Efficient to Effective. 2020 was a gut punch to any supply chain organization that pursued operational efficiency without keeping a pulse on the risk factors that threaten disruption. Effective supply chains designed out risk by addressing safety, security, and reliability vulnerabilities. —John Reichert, Senior Director, Supply Chain Execution Solutions, Tecsys The Wake-Up […]
Read MoreDo you expect a resurgence in reshoring to the United States? Why or why not?
No. I don’t expect a significant increase in reshoring. I do expect a significant increase in multi-sourcing of key products in the supply chain. Reshoring to a significant degree requires huge infrastructure changes that I do not believe today’s consumer is ready to fund in price increases and reductions in convenience. —Bill Denbigh Senior Director, […]
Read More