How to Avoid Setbacks When You’re Trying to Move Forward with New Technology
Since the start of 2021, the pace of change has been off the charts. It’s easy to get caught up in the rush of excitement, but it’s risky to rush innovation efforts.
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.
With the start of each new year, the pace of change accelerates. And since the start of this year, the pace of change has been off the charts, which means demand on your warehouse operations must be too. But it’s easy to get caught up in the rush of excitement – and it’s risky to rush innovation efforts, especially if you’re a small or medium-sized business (SMB). I’m not saying you should sit back and wait to see what happens before spending money on new technology, but I do recommend you take time to consider why you are really investing in certain technologies and how much you stand to gain by making those investments right now.
All too often, we hear from customers who are interested in automating their operations but don’t have the right mobile technologies in place to do so. Without a solid foundation, it will be difficult to stand up the other systems you need to introduce greater workflow efficiency and minimize human error as customer demand grows.
In fact, Zebra recently surveyed several SMB warehouse operators to see what their biggest challenge is a year into the pandemic. It’s not accelerating modernization or automation efforts. Nor are they worried about innovating fast enough to keep pace with growing order volumes. The thing they’re struggling with most right now is ensuring workers have the right tech tools to be efficient and accurate. That says a lot about where spend needs to be prioritized right now.
Resetting Innovation Priorities
Most warehouse operators have seen a huge jump in sales over the last 12 months and want to take advantage of the growth opportunity but just can’t keep up given the inefficiency and fragmentation of legacy or manual systems. Workflow automation will be critical to gaining an operational edge in the next 12 months. But right now, the focus must be on keeping up with demand so that you don’t lose the customers that will contribute to your long-term growth.
Take the time to assess the performance of all technology solution components:
Do your workers have enterprise-grade rugged devices that can be scaled when you’re ready to automate more processes? Or did you opt for consumer devices because you were more familiar with them and just needed to get some sort of tech solution online? If it’s the latter, now would be a good time to compare those devices against the devices that have been purpose built for warehouse workers and workflows, especially if you need a solution that offers better device management, security and compatibility with wearables, printers, back office systems and (eventually) automation solutions.
Have you already upgraded to Android handheld mobile computers? Or do you still rely on Windows mobile devices? If it’s the latter, now might be the time to start your Android migration so that you have more flexibility in workflow application development.
Are you utilizing all available mobility tools, such as wearables? Believe it or not, head-up displays that offer an augmented reality experience aren’t out of reach for SMBs. Neither are other wearables, such as ring scanners, wrist-based mobile computers or printers that sit on the hip and keep workers’ hands free in a true “mobile office” set up.
Is your software providing the insights and guidance workers need to keep up with demand? Remember, a mobile device is only as valuable as the experience it provides, and the software impacts the user experience just as much – if not more – than the hardware. A forklift-mounted computer might be able to display a map of the warehouse to help the operator navigate to the right section for item pickup. However, a prescriptive analytics alert or task management app can tell them when they need to head to a certain location, exactly how to get there with turn-by-turn guidance, exactly which pallet to pick up and then the fastest, safest way to get to the prep station or loading dock. If there are additional pallets that can be picked up along the way to save time, the software should also be able to tell the operator in real time so that tickets can be consolidated and orders fulfilled faster.
Do your front-line workers have the right scanners for their particular roles? Seconds count in today’s world. Pickers, packers, shippers and receivers must all be able to scan and capture barcode data on the first trigger pull, no matter how dirty, damaged, crinkled or faded the packaging or label may be. If they have to stop to manually input barcode data to report an item’s status, everyone else gets slowed down too and the risk of errors rises significantly. The same is true if these teams have to put down an item or box to pick up a handheld scanner to capture the barcode data. Consider equipping workers with handsfree ring or wrist scanners if you want to see dramatic efficiency gains. It is also a good idea to inquire about multi-scan capabilities. Inventory managers will appreciate the ability to simultaneously scan 10 items on a shelf at once when conducting routine audits or annual counts. One thing we’ve learned in the past year is that real-time visibility into stock shortages and overages is key to improving sourcing and maintaining the right inventory balance as demand fluctuates.
How well are your printers working? And how far are workers having to walk to get to one? Though two separate questions, they boil down to one basic principle: printers are the lifeblood of fulfillment activities. If you can’t get accurate labels on a package quickly, you risk missing a shipping deadline. Any delay is going to have an impact on customer satisfaction and could cost you more than just the few dollars you ultimately credit each customer to compensate for late delivery. SMBs need enterprise-grade desktop, industrial and mobile printers just as much as large enterprises do, mainly because they were purpose built for the very labeling applications that all businesses rely on to fulfill business-to-business (B2B) and business-to-consumer (B2C) orders. In fact, more and more SMBs are seeing the value of mobile printers that fulfillment team members can wear on their hip as they move around the production or warehouse facility. There’s no need to run back and forth from a stationary printer on the other side of the building. We’re also seeing interest – and value – grow in mobile carts that are equipped with full-size thermal printers that can be wheeled around easily to follow the user.
The majority of SMBs we surveyed told us that the most important thing to them right now is keeping up with demand – but they won’t compromise accuracy for speed. With the right software and hardware combination, workers will be able to work faster and reduce errors because they’ll know exactly what to do and have the right tools to do it efficiently.
The Best Next Step for SMB Warehouse Operators? Getting Back to the Basics
Whether you’re trying to keep up with demand or planning to expand over the next few months, the biggest misstep you could make right now as you try to move forward is skipping steps. You can’t put new technology systems in place without also reviewing and refining processes. And you can’t start to think about workflow automation – or robotics automation, for that matter – until you have the fundamental mobility architecture in place. I know you’ll feel the pressure to fast track automation, but if you move too quickly, you might just end up with another fragmented system.
Find a solution provider you trust to help you define your long-term goals and then map out an implementation strategy that will deliver immediate benefits at each step. You’ll be surprised at how much more productive your front-line workers will be once they have the right devices for their roles. Then, when you’re ready, you can layer in the analytics software and the automation solutions to accelerate those gains. Though you might not fast forward, you’ll likely find that your innovation and investment strategy provide an equal return in the context of long-term growth and operational sustainability.
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.