Jeff Schmitz is senior vice president and chief marketing officer at Zebra. Mr. Schmitz most recently served as executive vice president for multiple business units and sales at Spirent Communications where he had previously also held several senior leadership roles including chief marketing officer and vice president of networks & applications. Prior to joining Spirent, Mr. Schmitz held senior marketing positions at Rivulet Communications, Visual Networks and Tellabs Inc. Mr. Schmitz holds a B.S. degree in electrical engineering from Marquette University and a Master of Science degree in computer science from the Illinois Institute of Technology.
If you asked me in January where operators of small- and mid-sized warehouses and distribution centers should focus their technology investments this year, I would have said “purpose built mobile solutions”. Here’s why:
Microsoft had ended its support for most Windows® mobile computers, forcing an industry-wide migration to Android™-based solutions.
E-commerce demand was growing rapidly.
SKU assortments were evolving.
On-hand inventory quantities were increasing.
Fulfillment lead times were shrinking.
Labor availability was limited.
It was clear (to me, at least!) that widespread mobile technology utilization was becoming even more vital to every company’s efforts to improve operational visibility, worker utilization and workflow efficiency.
But now that we are months into a global pandemic, you may ask if mobility should still be the priority?
Without a doubt, yes!
All of these trends and challenges are still impacting small- and mid-sized warehouses, so I would argue that companies need to move even faster than they may have planned in January to get the right mobility solutions in workers’ hands across the supply chain.
COVID-19 has only increased the pressure and demands on businesses and their workers on the front line. Order volumes, fulfillment speeds and inventory turns have been unlike anything we’ve ever seen before. It doesn’t matter if your warehouse ships to distributors, retail stores, direct to consumers or all of the above, customers have only become more dependent (and less forgiving) on exceptional supply chain performance in recent months, and this trend likely won’t subside anytime soon.
Social distancing mandates have served as a catalyst for online shopping, elevating e-commerce demand to levels that we didn’t expect to see for years. It also accelerated the conversion of retail stores into micro-fulfillment centers, requiring retailers to significantly adjust their supply chain strategies to increase inventory accessibility.
As a result, the current fulfillment tempo and inventory optimization challenges will likely persist for the foreseeable future. This means every decision maker along the supply chain, no matter the size of their business or how close (or distant) they interact with consumers, must find a way to meet customers’ expectations if they want to survive.
Choosing the right mobile technologies – computing, scanning, and printing – is key. Workers equipped with purpose-built handheld computers, tablets and wearables find it easier to manage inventory and meet shipping deadlines without making mistakes. They know exactly what they need to do and when they need to do it as well as how to complete each task thanks to the actionable intelligence always available at their fingertips or, in the case of head-mounted displays, right in front of their eyes. Barcode scanners, mobile and fixed RFID scanners, RTLS systems and thermal printers all give the physical goods and materials within the supply chain a “digital voice” so that they can be tracked, assigned, picked, packed, routed and delivered to their ultimate destination swiftly, safely and efficiently.
But with so many different technologies to choose from, how are small- and mid-size businesses (SMBs) supposed to identify, and invest in, the best next solution that will deliver the most attractive ROI?
Want to Survive the Pandemic – and the Next 20 Years? Ask for Help.
Neither manufacturers, retailers nor consumers care about the size of your warehouse operation. They simply care about whether or not you can get the right products to the right place at the right time, whether that’s their distribution centers, stores or homes. Your customers are not going to wait for you to figure things out. Customers will move on to one of your competitors if you’re unable to deliver what they want, when they want it.
The clock is ticking. You have to prove your capabilities now, which means you need to expand your capabilities now – without disrupting operations or depleting your cash flow and earnings, of course. That’s why you need to partner with a technology solution provider who understands warehousing operations and the challenges faced by SMBs in particular.
The right technology partner will be able to tell you which foundational data capture and communications platforms you need to invest in first in order to be able to better sense, analyze and act on evolving customer demands, operational issues and revenue-generating opportunities. They will also be able to help you quickly identify what’s working well and, more importantly, what’s not, so that you can strategically implement technology solutions and re-engineer processes, if necessary, to improve your team’s agility, accuracy and efficiency.
True success requires a balance between short-term fixes and long-term innovation. Though mobility solutions can be deployed quickly in times of crisis (i.e. COVID-19 surge demand), any purchase decision should be made with long-term goals in mind. If you pick the right hardware and software solutions from the start, they will be easy to scale as your business priorities and demands evolve.
Again, that’s why you need to carefully scrutinize the capabilities and expertise of technology solution providers.
Remember, You’re a Customer with High Expectations Too!
Your customers expect you to deliver high-quality products with exceptional service. Why would you expect anything less from your technology solution provider?
If you are committed to coming out of this pandemic stronger and faster than you were in January, then you need to surround yourself with people who respect your ambition and will do what it takes to ensure your success. Hold your solution providers to high standards. Make sure they can fully support your solution deployment, even from a distance, and that they will pick up the phone if you have any questions or need help troubleshooting an issue after the deployment is complete – even if that’s 10 years from now.
By partnering with a technology provider that prides itself on building future-ready solutions, you’ll gain both immediate and long-term benefits – even beyond those needed to address current challenges. The right partner will help you:
1. Find the right mobile tool for each job – or the one tool that will work well for multiple jobs.
2. Ensure your software applications can be fully supported, secured and managed via the hardware you select. Remember, you need mobility solutions. The hardware and software must work in harmony.
3. Assess and, if necessary, re-engineer workflows and processes to maximize the capabilities of your mobility solution. You want to ensure your technology is fully utilized and that workers have the visibility and guidance needed to take the “best next action” every moment of the day.
Remember: COVID-19, the great Android migration and consumers’ growing affinity for online shopping can either be obstacles to progress or opportunities for growth. With the right technology solution provider by your side and the right mobility solutions in your workers’ hands, it will be easy to seize the opportunity – or at least survive whatever else 2020 (and the next decade) might throw your way.
It’s almost Halloween, and if your town is anything like mine, your neighbors’ yards are already littered with ghosts, witches and tombstones.
Clearly some of us enjoy giving other people a scare. Just as clearly, some of us enjoy getting a scare.
I’m not one of them. I hate haunted houses. I avoid scary movies like the plague. And I once jumped on top of several eight-year-old members of the Girl Scout troop that I was leading in order to escape a haunted hayride’s zombie.
However, that doesn’t mean I’m not capable of (wo)manning up and facing my fears, especially it’s for a good cause, which is why ALAN’s executive director, Kathy Fulton and I recently put our heads together to create this short list of some of the scariest perceptions that people have about disasters and disaster relief.
Scary Perception Number One: “A Disaster Will Never Happen To Me.”
When people live in certain areas (i.e. far away from a hurricane-prone coast or earthquake fault lines) it’s easy for them to assume that they’re protected from many types of catastrophes – and to become dangerously casual about making disaster preparations or heeding safety warnings.
Frankly, this attitude scares the heck out of us, because if the last few years have taught us anything, it’s that disasters can take a wide variety of forms and strike at almost any time. And the people who fail to plan – or to take shelter/evacuate as requested – are much more likely to find themselves in harm’s way.
Scary Perception Number Two: “It’s Okay. The Government’s Got It Covered.”
There are so many things wrong with this second perception that it’s not even funny. For one thing, not every disaster survivor qualifies for FEMA government assistance. For another, some survivors aren’t eligible for as much government assistance as others. Plus it can take some time for FEMA to process all of the requests for assistance that it receives and to conduct all of the necessary inspections that need to be made before it can provide funds. And even then, these funds are limited.
It’s a similar story for disaster survivors who are fortunate enough to have homeowners’ or renters’ insurance.
That’s why the humanitarian response organizations that provide food, hydration, shelter and other supplies immediately after a disaster hits (and the non-profit organizations that help survivors fill in the short-term and long-term gaps that government assistance and insurance reimbursement don’t cover) are so essential. It’s also why the people who support them are an answer to prayer.
Scary Perception Three: “We’re Too Far Away To Be Of Help.”
One of the laments that we often hear from potential transportation, warehousing and material handling equipment donors is, “We’d have loved to help you with relief efforts for X community’s disaster. But we didn’t have any locations in the area.”
The sad thing is, we probably could have used their help – and so could many of the humanitarian organizations that we support.
When push comes to shove, these organizations can’t afford to split hairs about where their donated relief supplies come from, especially if those supplies extend or enable their relief efforts. They might even NEED those donations to come from another part of the country because many of their closer potential product donors may have already been tapped out.
In light of this, never underestimate the value of a long-distance contributed logistics offer. Relief supplies are often located much farther away from a disaster site than you might imagine. And the help that you’re offering might be just the ticket.
Scary Perception Four: “It’s Been A Few Months (Or Years). So Survivors Of That Particular Disaster Don’t Need Our Help Anymore.”
If individuals and communities recovered from disasters as quickly as their particular disasters stopped making headlines, life would be much easier for everyone. However as any disaster survivor can tell you, that’s rarely the case.
Disaster recovery is a super-long process that’s usually measured in months or years rather than days or weeks. And many of its costliest and most work-intensive stages like clean-up and rebuilding don’t start until long after the news and camera crews have left.
So don’t ever think that there’s no way you can help a community just because the disaster that affected it happened quite a while ago. Chances are, that’s when your compassion and assistance will be needed the most.
Scary Perception Five: “Helping With Disaster Relief Won’t Pay The Bills. As A Result, There’s Nothing To Be Gained From Our Business Making A Financial Or In-Kind Donation.”
While it may not initially seem like you have anything financial to gain from helping a community in need, nothing could be further from the truth, especially if that community is home to some of your employees, customers, suppliers or business operations.
The people who live in these communities can (and do) remember who showed up for them when times were tough – and so do many other members of the purchasing public. In fact, according to recent article in the MIT/Sloane Management Review, multiple studies have shown that corporate donations ultimately attract customers. And according to another recent article in the Harvard Business Review, consumers tend to favor companies that donate a larger share of their profits.
Is this why so many of our country’s most successful organizations are also some of the most philanthropic? Possibly. However, if that’s the case, it’s okay by us, because when generous businesses do what they can to help a community get back on its feet more quickly, everybody wins.
Fear Not
There’s far more I could add to this story. But time and Halloween-candy buying obligations don’t allow me to discuss them all. Besides, I want to end this story on a caring rather than a scaring note.
So I’ll leave you with this: Even though disasters seem to happen with frightening regularity, I’ve actually become a far braver person since joining the ALAN family several years ago. It’s taught me that when horrible things like hurricanes, tornadoes and pandemics happen, a lot of wonderful people show up to help – and reminded me that when things are at their most harrowing, there are always extraordinary people like you ready to come to the rescue.
Just don’t ask me to go on a spooky hayride anytime soon.
"Spot solutions are needed to help a company get through a sudden shock, but the only way to ensure agility and resilience going forward is by addressing systemic issues in a way that is intentional and focused on the long term and brings together clear priorities, well-designed repeatable processes, robust governance, and a skilled team." - Harvard Business Review
An article published by McKinsey & Co. in August observed, “over the past year, many companies have made structural changes to their supply networks by implementing dual or multiple sourcing strategies for critical materials and moving from global to regional networks.”
This structural change pivots on the difference between low cost and best cost. The shift extends through Tier 1 Suppliers through lower tiers. The intent of a low-cost supply chain strategy is to present a low price to customers. A best-cost strategy adds factors beyond cost to the equation, like risk, lead time, and responsiveness.
The McKinsey article continues, “Ninety-seven percent of respondents [to the survey] say they have applied some combination of inventory increases, dual sourcing, and regionalization to boost resilience.”
We offshored, losing sight of the associated risk, for decades. Time to learn what near-shore, re-shore, regionalization, and localization mean.
As global supply chains become increasingly complicated, there are now more digital connections and business collaborations in the global shipping industry than ever before. Holding freight data in opaque, disconnected silos and relying on outdated methods of communication is not just inefficient - it’s unsustainable.
The global supply chain is no longer a linear process. Whereas before it was simply about moving freight from point A to B, now there is now a multitude of options for transporting that freight, each with its own unique set of capabilities and constraints.
So, what do shippers really want from their logistics service providers? Two things: accurate information at their fingertips and the ability to conduct business and transact - without having to pick up a phone or wait for email replies. Digital customer-facing freight execution platforms are the answer, collecting the most relevant and up-to-date data from carriers on one side, and providing shippers with a simplified and accelerated process on the other.
Digital freight execution platforms also provide shippers with a unified view of their shipping options, giving them the data they need at a glance to make an informed decision for any particular shipment.
Plus, as we continue to navigate uncertain waters, shippers are increasingly seeking solutions to increase resilience. After all, if there’s anything the last few years have taught us, it’s to expect the unexpected. The organizations that were able to pivot fastest came out on top. The availability of accurate data and solutions to action that data are key building blocks to resiliency in the face of new and unexpected challenges. Supply chain optimization, especially today, hinges on accessible, up-to-the-minute data, shared and acted on to keep freight moving as successfully as possible.
Digital Freight Execution Puts Power in Shippers’ Hands
Increasingly, freight forwarders and logistics providers are giving their shipper customers access to online freight execution platforms for just this purpose.
Largely unheard of just a few short years ago, online freight execution tools for shippers have quickly emerged to become a must-have for established forwarders to compete with startup digital forwarders. Logistics providers can no longer afford to go without offering this critical customer tool which enables shippers to access crucial freight data online, including timely visibility of their freight on the move. Their shipper customers have come to expect it, and it’s what’s needed to compete in today’s market.
Traditional methods of communication between shippers and freight forwarders can be slow and inefficient. Email and phone tag are not conducive to fast decision-making, and sales representatives may not always have the most accurate information about fleets, equipment, and routes. Digital freight execution platforms enable shippers and carriers to communicate in real-time, facilitating fast decision-making while eliminating the potential for miscommunication.
As digital conveniences proliferate our day-to-day lives (think of ordering food online, tracking your latest purchase, viewing your favorite shows on-demand, and so much more), it only makes sense that we should expect similar experiences in our work lives. That means that the traditional way of working in the freight industry, fraught with manual processes, phone calls, and emails, simply doesn’t cut it in today’s digital-first world.
What’s more, with timely freight data, shippers are better equipped to quickly address exceptions by changing transportation plans. Supply chain disconnections are costly. Responding to exceptions is critical to a smooth-running supply chain where shipments arrive at their final destination as planned.
“An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage,” Jack Welch
One of the outstanding things about a digital freight platform is the ability to integrate various functional modules to enable shipment data to be used and shared. These may include tracking and visibility, warehouse inventory, ocean shipments, freight rates, and even finance information, enabling a shipper to pay invoices online. Customer-facing online portals are an important and effective way to facilitate a shippers’ access to key shipment information, improving visibility and productivity on all fronts.
Partnering for Sustainable Success
Partner programs are another important aspect of connected digital freight platforms. This openness to integrate with a broad range of shipping industry businesses, such as technology or service providers, offers shippers the ability to access their partners through their forwarders’ customer-facing freight execution portal. This enables the shipper to have a comprehensive and complete flow of key freight data based on their unique needs and partners.
For example, if a shipper is using a real-time transportation visibility (RTTV) system provider, they can work with their forwarder to integrate the RTTV solution with the forwarder’s digital platform. This is only possible when the forwarder has a partner program enabling integrations.
All parties involved with a shipment can boost productivity and enhance value for the customer when they’re digitally integrated with freight transaction operational areas and partner providers. Technology companies who try to wall off access to the data they manage for their customers and their functionality have it backwards: they might create an appearance of their own business interests being protected in the short term, but long term, they’re either going to hurt their customers, or, more likely, their own product development roadmap.
Recent supply chain challenges have pushed BCO shippers and their logistics partners to take a much closer look at cargo flows. Accessible, convenient, and transparent freight data is now the expectation and necessary to control costs and keep cargo in view for optimal supply chain management.
Digital freight execution is the wave of the future, and it's already making a big impact in the shipping industry. Streamlining data flows by building out connectivity helps to bring greater logistics harmony that allows shippers to optimize their overall freight ecosystem.
America’s posture in world trade, and the underlying supply chains, are more than robust. According to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the United States balance of trade in goods and services deficit dropped to $70.6 billion in July. Exports hit the highest level in real dollars since tracking began over 70 years ago. During the recovery from Covid,, with reshoring and shifting market demands, are holding imports flat..
This success is happening despite the global disruption caused by Ukraine. Expect our labor shortages to continue. Expect wage pressure to continue. Expect inflationary pressures across the supply chain to continue.