Skip to content
Search AI Powered

Latest Stories

newsworthy

Study shows growth in digital linkages between customers and suppliers

Nearly a third of companies surveyed say their trading partners are more prepared for automated data exchange than they are.

Supply chain software is usually invisible to end customers, but digital linkages between customers and suppliers are on the rise as retailers hustle to keep up with the demands of today's instant-gratification buying culture, a study released Tuesday shows.

More and more companies are embracing digital automation tools as they strive to remain competitive, reduce costly human errors, and improve customer service levels, according to research from DiCentral, a business-to-business managed-services provider, in partnership with SAP SE and the Global Supply Chain Institute at the University of Tennessee (UT)'s Haslam College of Business.


The result is rising investment in the array of disruptive technologies sweeping over the digital supply chain, from machine-to-machine communication such as electronic data interchange (EDI) to data analytics, cloud-based solutions, and mobile capabilities, according to the whitepaper, "Proactive Partnerships: Creating Supply Chain Value in the Digital Era."

But there is a long way to go, with nearly a third of companies surveyed revealing that their trading partners are more prepared for automation and EDI integration than they are.

The investment is worthwhile because suppliers operate in a world of slim profit margins and tight deadlines, and shipments that are late because of failure to follow a retailer's packaging requirements—such as a misplaced barcode—can result in costly penalties, the study shows.

Eight out of ten survey participants said their customers run an existing EDI compliance program, which can result in penalties, and nearly 75 percent of survey respondents have been subject to fines due to noncompliance. Among those respondents receiving fines, 3 percent report receiving fines of more than $100,000 in a 12-month period—a heavy drag on profits for most small- and midsized businesses.

In addition, 76 percent of survey participants expect growth in their electronic supplier connections of up to or more than 25 percent. More than 75 percent of survey participants agree their current system can process most inbound EDI/XML connections without human intervention, and 60 percent of participants report business-to-business integration has enabled them to improve customer service levels.

"Technology continues to improve and evolve at a frantic pace, so companies must act now, or get left behind," Randy Bradley, assistant professor of information systems and supply chain management at UT's Haslam College of Business, said in a release. "Our survey demonstrates that many companies are moving in the right direction, but they need to continue to move faster."

The Latest

More Stories

Trucking industry experiences record-high congestion costs

Trucking industry experiences record-high congestion costs

Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.

The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.

Keep ReadingShow less

Featured

From pingpong diplomacy to supply chain diplomacy?

There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.

Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”

Keep ReadingShow less
forklift driving through warehouse

Hyster-Yale to expand domestic manufacturing

Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.

That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.

Keep ReadingShow less
map of truck routes in US

California moves a step closer to requiring EV sales only by 2035

Federal regulators today gave California a green light to tackle the remaining steps to finalize its plan to gradually shift new car sales in the state by 2035 to only zero-emissions models — meaning battery-electric, hydrogen fuel cell, and plug-in hybrid cars — known as the Advanced Clean Cars II Rule.

In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.

Keep ReadingShow less
screenshots for starboard trade software

Canadian startup gains $5.5 million for AI-based global trade platform

A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.

The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.

Keep ReadingShow less