Logistics Matters podcast: May 2020 issue preview: Salary survey, National Forklift Safety Day, and more; consumers OK with longer delivery times; ramping up after lockdown | S1 E4 | 2020-05-01 | DC Velocity
The Logistics Matters podcast: May 2020 issue preview: Salary survey, National Forklift Safety Day, and more; consumers OK with longer delivery times; ramping up after lockdown | Season 1 Episode 4
Contributing Editor Toby Gooley joins us to discuss her recent article on how companies can create a culture of safety around the use of forklifts; new truck and trailer sales are way down; monitoring the food supply chain.
For links and show notes, mouse over the player and click the .
Transcript
David Maloney, Editorial Director, DC Velocity: 0:03 Supply chains continue to shine in the midst of challenging times. New innovations introduced for warehouse picking. And a supply chain that makes the impossible possible. Pull up a chair and join us as the editors of DC Velocity discuss these stories, as well as news and supply chain trends, on this week's Logistics Matters podcast. Hi, I'm Dave Maloney. I'm the editorial director at DC Velocity. Welcome. Logistics Matters is sponsored by Fortna. Fortna partners with the world's leading brands to transform their digital operations to keep pace with digital disruption and growth objectives. Known worldwide as the distribution experts, Fortna designs and delivers intelligent solutions powered by their proprietary software to optimize fast, accurate, and cost-effective order fulfillment. For more information, visit Fortna.com. As usual, Senior News Editor Ben Ames and Senior Editor Victoria Kickham join us to provide their insight into the top stories of this week. Hi, Ben and Victoria. Welcome. Since we're now at the beginning of May, I think it would be good to highlight some of the stories we have coming up in our May issue. Our cover story actually features an interview that I did with Sheetal Shah of Impossible Foods. Now Sheetal is the senior vice president of product and operations, and he directs several mission-critical business units, including the product itself, operations, manufacturing, supply chain, and logistics. So, Impossible Foods, if you're not familiar with, and they make that plant-based food that tastes like and competes with meat. So as a company, they state that their goal is to compete against beef that's made from cows and other animals in the areas of taste, nutrition, sustainability, convenience, and affordability. So the product I think most people are familiar with would be the Impossible Whopper that's found at Burger King restaurants. But they also are found in many other restaurants around the country, supermarkets, and they're rolling out even a greater expansion of that in supermarkets. So what we talked about in the interview was really the supply chain that makes this all happen. They rolled out Impossible beef a couple of years ago. They ended up with some supply chain problems, just not enough capacity for the demand, basically, So they fixed at this time in rolling out a new product called Impossible Pork, which you may see it a supermarket or a restaurant near you. So, the story gets into that, the supply chain behind it, and the partnerships that they're doing with 3PLs and restaurants and and food distributors to make sure their product can get to people. So, encourage you to read that. That's our cover story for May. Ben, you also had some work on the salary survey. Our 17th Annual Salary Survey of people in the supply chain. What did you find out with that?
Ben Ames, Senior News Editor, DC Velocity: 2:52 Right, Dave. We actually take a quick detour, I've actually eaten one of those Impossible Whoppers. I visited a Burger King with a friend a few weeks ago, and we had an Impossible Whopper and standard Whopper side by side, and we split them, and the Impossible one was tasty, I'm here to say.
David Maloney, Editorial Director, DC Velocity: 3:07 Yeah, they are pretty good.
Ben Ames, Senior News Editor, DC Velocity: 3:08 Yeah, absolutely. Looking at salaries, though, it turned out that more than two-thirds of the respondents in our 17th annual survey, as you said, have seen their salaries increase in the last 12 months. And the average salary that we added up in our survey was a little bit over $127,000, which was up from the 2019 level $117,000. So things are going well, in a salary sense. Of course, those are 2019 numbers. And as we're all painfully aware, 2020 has been a year for the record books in terms of disruption with coronavirus. So, time will only tell what the impact is on paychecks. However, many logistics providers have been deemed essential businesses, so a lot of them have kept on working through these very tough conditions. It'll be really interesting to see how that plays out.
David Maloney, Editorial Director, DC Velocity: 4:01 Yeah, it will be. Hopefully things are steady throughout the year, and we bounce back here fairly quickly. Victoria, you had a feature in our May issue on new picking technologies that you observed at Modex. Can you tell us about that?
Victoria Kickham, Senior Editor, DC Velocity: 4:14 Yes, absolutely. So the Modex show, there was, as you know, an abundance of new technologies. Impossible to write about everything in a single story. So what we just had to do was just take a look and highlight a few from companies that may be outside the mainstream radar and just a look at what's out there. So a couple of things we look at is in advance in goods-to-person picking that involves, or integrates, autonomous mobile robots and sort of a modular racking system that was really interesting. A robotic piece-picking solution that incorporates new vision technology and gripping technology, and a pick-by-vision system that's been around for a bit, but is incorporating some new dashboard tools that allow users access to data and analytics to both improve the way they use the system and their overall operations. So everyone's interested in data, data, data these days, so that seems really interesting to us. So that's just a few things that we took a look at
David Maloney, Editorial Director, DC Velocity: 5:09 And as we continue to see how automation is changing the robotics and all the software, of course, behind it, that really drives everything together. Great. Thank you, Victoria. We have a couple of other things we'll just highlight very quickly. We have a private fleet story that's coming up. And again, especially now with the with the coronavirus, people are wanting to secure that transportation, so they're taking even a harder look at private fleets and are copying, sort of taking a page out of Walmart and Amazon's playbook, looking into private fleets and contracting for dedicated operations. If they don't own the fleet, they're at least looking for dedicated service of from a fleet vendor. So take a look at that one in our May transportation report. We also are helping to celebrate the National Forklift Safety Day, which will be coming up in June. So we're highlighting that in our May issue. The event will be June 9th. It will be a virtual event that we'll actually be participating in this year. And so, within that special section, where actually, it's a supplement to DC Velocity in the May issue, we'll have a feature on how to create a safety culture within your facilities. It's among the forklift users who drive the forklifts as well as a pedestrians in your warehouse. So, some very practical steps that you could take to help develop that safety culture. We also have a couple of other articles within that supplement that I think would be worthy of you to take a look at to, that helped promote safety and the message from the Industrial Truck Association that safety is important not just on National Forklift Safety Day, but every day as well. We also have an article on women supply chain professionals who are increasingly making their way up to the highest levels of corporate management. This is a story that ran in our sister publication, Supply Chain Quarterly, and we think it's an important story, so we're also sharing it with our DC Velocity readers as well. So we're looking at how more doors are opening for women in supply chain, a field that has traditionally been a field that's been filled mostly by men. So, great to see that doors are opening for women executives as well. So that story is in, again, our May issue of DC Velocity. Turning to some of the other news and things that are going on, Victoria, you have also looked recently at a survey about consumers are no longer worried about delivery times so much as they were before. Could you tell us a little bit about that survey?
Victoria Kickham, Senior Editor, DC Velocity: 7:33 Yeah, sure, it is interesting. It's from logistics technology firm Convey. They do a lot of research on e-commerce trends. And just last month, or sort of mid- to late April, they surveyed 1,000 consumers and found that most are OK, the majority are OK with the longer delivery times they're experiencing during the Covid-9 pandemic. But the thing they really want is transparency. Seventy percent said they expect transparency and clear communication from retailers--if there's going to be a delay, or how much longer it's going to take to get their products. So that was the, the main point there. So I found that interesting. They also kind of looked at a bunch of other trends that are that are occurring during the current time with Covid-19. And what I found interesting was they did some research on stockpiling, and about, more than 40%--42%--of consumers admitted to stockpiling goods during this time. Mostly food items, paper products, pantry items, those kinds of things. But they also broke it up by age, and I found it interesting that those most likely to hoard are younger people, 18 to 29, admitted to hoarding those items during the, during this crisis. So if you've been to a grocery store and not seen paper towels for a while, you know who's got 'em.
David Maloney, Editorial Director, DC Velocity: 8:47 That is very interesting. I would not have thought that, so good. Interesting statistic there. Thank you. We also want to remind you that every day on DCVelocity.com, we have updates on what's going on with Covid-19 in our coverage, and then we have a lot of good resources there for them. And yesterday, you wrote a story about the how fleets and warehouses are starting to open up, and what it's going to take for those to operate safely. Can you share a little bit about that?
Ben Ames, Senior News Editor, DC Velocity: 9:17 Yeah, sure thing. It was really fascinating to watch this unfold, because everybody is really figuring it out in real time. It's looking increasingly like, without an effective coronavirus vaccine to make us all immune, businesses are going to have to get back into work again at under some sort of conditions, to keep the economy going and to keep our supply chains flowing. And so, there various analysts and technology firms have been offering possible terms for that, what they're calling "the next normal." And it depends, really, on what your place is in the supply chain, but some of the possibilities on the transportation side, vehicles and trucks, could be rising importance of telematics, vehicle routing software, Internet of things sensors, to be able to check where inventory is flowing without being there in person to touch it as we try to do more and more things virtually. And likewise, for warehouse workers, there are a couple options now for making sure that we maintain social distancing, the rules that we've all heard so much about. For instance, there's one company called Triax that has a little device that you can wear on a lanyard on your on your body, or clip it to your hard hat, and then it sounds an alarm if you draw too close to another worker, if it detects that proximity there. So, it's looking like we'll have some options that'll perhaps keep us working safely, moving forward in these coming weeks. Months.
David Maloney, Editorial Director, DC Velocity: 10:52 Yeah, and that's especially important, I think, in warehouses we've got a lot of people interacting with one another, to be able to maintain that social distance, but also get the product out. So you may see, I think maybe more shifts, in a sense, or work being divided among the facilities a little differently so that people are moving around and not being bunched together. So it will be interesting to see. And how warehouse management systems are able to place people, direct work. I think you're going to see a whole cottage industry and a sense of people making updates to be able to assure for some of that, the way products are picked. Very interesting idea, and thank you for bringing us that story. And then we have all kinds of other resources on there. I'm going to talk a moment about our resources page.
Ben Ames, Senior News Editor, DC Velocity: 11:38 We sure do. We've collected all of our coverage on a single Covid-19 landing page. So visitors on our website, DCVelocity.com, with one click, they can find all the coverage. And then, if they want to dig a little bit deeper, we also have a resource hub that now has 76 different links on it, to different industry groups within logistics, different analysts and research firms, vendors, charities, sort of the full array. But our goal with that was to let readers really drill down into the impact of coronavirus on logistics operations specifically, as supposed to sort of the broader public health end of it.
David Maloney, Editorial Director, DC Velocity: 12:20 Great. And there is a tab at the very top of DCCVelocity.com that says Covid-19. You could go and look at that Covid-19 coverage, as well as, if you want to direct link to the resources that Ben just mentioned, it's DCVelocity.com/covid19resources. So go take a look at those, all 76--and we're adding to those every day. Thanks, Ben and Victoria, for sharing the highlights of the news this week and, again, previewing the May issue of DC Velocity, soon to hit your desk. And of course, we'll be posting things online over the next week as well, with those stories. If you'd like more information on any of the stories that we did discuss today on Logistics Matters, be sure to check out DCVelocity.com for more details. And please provide any comments or feedback that you'd like to give us on our new podcast by emailing us at podcast@dcvelocity.com. And a reminder that Logistics Matters is sponsored by Fortna. Fortna partners with the world's largest brands to transform distribution operations into competitive advantage. Expertise includes distribution strategy, DC operations, micro-fulfillment, automation, and intelligence software. Distribution solutions designed today for tomorrow's challenges. Learn more about the distribution experts at Fortna.com. We'll be back again next week with another edition of Logistics Matters. Until then, please stay safe, and we'll see you next week.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.