David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Maybe you're just not able to get orders out the door as fast as you used to. Or your operating costs have been creeping up and you're running into delivery delays. Or you've noticed workers resorting to manual processes or work-arounds for tasks that were supposed to be fully automated.
All of these can be signs that something's amiss with the software that drives your distribution and transportation operations. Over time, even the best designed system can become a drag on performance if it's not kept up to date and modified as the user's needs change.
Although the advantages of regular software tune-ups might seem obvious, companies sometimes shy away from the idea because they're afraid the fixes will be expensive. But that's a misconception, software specialists say. Bringing an underperforming system back up to speed doesn't always require a major upgrade or a costly replacement. In many instances, all that's needed is a tune-up. "There is low-hanging fruit that does not require a full upgrade," says Jeff Mueller, vice president of Sedlak Management Consultants, which conducts software evaluations for distribution and supply chain operations.
In some cases, the fix turns out to be as simple as a few minor tweaks to the system. In others, it's as easy as adding one or more modules to the core system (say, a module for labor management, inventory optimization, slotting, or electronic data interchange). The user may not even have to buy the module (or modules) it needs. Software vendors say it's not uncommon to find that a client already owns the required programs but has never gotten around to implementing them.
"Our customers, for instance, use only about 30 percent of a software system's capabilities," says Mike Dunn, group vice president of sales for Fortna, another consulting and design firm. What often happens, he says, is that clients opt for a phased-in approach when they go to install new software. That is, rather than implement all of the modules at once, they decide to tackle the project in stages in order to minimize disruption. Trouble is, they never move on to the second and third phases. The modules end up gathering dust until a problem arises.
Trigger points
So how do you know when your software needs a tune-up? In many cases, the signs are obvious. For instance, with enterprise-level software, a big tip-off is rising operational costs (or costs that are out of line with expected norms). But performance problems aren't the only indicator that a software checkup is in order. You'll also want to re-evaluate the system if your company has recently made major structural changes to its operations —such as acquiring competitors, opening new distribution centers, or consolidating operations.
In the distribution end of the operation, indicators that your software might require some attention include lengthy order turnaround times, excessive touch points within a distribution center, and spiraling costs. Other warning signs are excessive travel times within a facility, difficulty locating products, and a disproportionate amount of paper-based processing. (See sidebar for a list of signs that your warehouse management system (WMS) might need a tune-up.)
When it comes to transportation operations, red flags include operational delays, a high percentage of empty backhauls, rising costs, and less-than-optimal vehicle cubing. These types of problems typically arise when a company changes its business strategy without making appropriate adjustments to its TMS —for instance, a supplier whose focus has shifted to online sales but continues to use software designed for LTL —rather than parcel —shippers. For that reason, the experts advise users to re-evaluate their software whenever the company introduces a process change that affects transportation.
Where to go for help
Let's say you've examined your software and found it wanting. Where can you turn for help? A good place to start is with the company that either supplied or implemented the software in the first place. These types of specialists have the experience to conduct an evaluation of the client's software usage and recommend improvements.
Some software vendors include evaluation and update services as part of their ongoing maintenance contracts. One such supplier is itelligence Inc., which provides implementation and support services to users of SAP solutions. "We take an active part with our SAP maintenance customers to keep them up to date and informed of what is new with the software. We do it proactively," says Stefan Hoffmann, the company's industry solution manager.
Another option is to bring in an outside specialist. Typically, these companies come in and review the client's operations and then develop a list of 10 to 20 recommendations for boosting the system's effectiveness. The client can then start with the easiest fixes and move on to the others as time and budgets permit.
"It helps to have some level of evaluation from the outside," notes Sedlak's Mueller. "It brings another perspective, outside thoughts, and ideas."
Regardless of who provides the support, Dunn of Fortna cautions software users not to let too much time elapse between checkups. "Tune-ups are critical for getting optimization out of the software, and they are not done nearly often enough," he says.
As for the optimal service interval, Dunn recommends annual software assessments. If a company waits too long to make necessary changes or has major needs that aren't being addressed, the situation may eventually reach a point where a tune-up is not enough, he explains. The company might have no choice but to invest in an upgrade or install a new system altogether.
Software only goes so far
As effective as software modifications can be, sometimes they're simply not enough to provide the desired result. In these cases, adjustments to the material handling systems or other processes may be needed to gain additional functionality.
"Software may get us 80 percent of where we want to be, but it might take changing the processes to get the rest," says Mueller. "But it always starts with evaluating where you want those processes to be and then making the software work for that."
Of course, this assumes the software has the capacity to accommodate changes in the first place. That's where the initial software selection comes in. To ensure their long-term needs are met, the experts advise users to pick systems that are flexible and will allow them to add functionality as their business grows.
"More and more, deciding on a software system can be a 10- to 15-year decision. It helps to choose software that can provide new functionality as it is introduced to the market," says Hoffmann.
Your WMS may need a tune-up if ...
... your business has changed and the new flow of goods calls for new processing methods.
... you're not familiar with many of the WMS's features.
... you suspect additional modules or bolt-on applications would provide further optimization opportunities, but you're not sure.
... you feel your order fulfillment operations require too much travel time or too many product touches.
... your operators rely heavily on spreadsheets or perform several system look-ups prior to completing a transaction.
... you're still picking orders in sequence even though you believe batching orders by type or characteristics would maximize throughput.
... your warehouse layout/flow hasn't changed in the last 10 years even though your business has undergone major changes—like a shift to e-commerce or the addition of a wholesale channel.
... your workers resort to a lot of manual processes or work-arounds for operations that should be systemically driven.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”