2. Consider suppliers as a business extension. Give suppliers visibility and transparency into your business performance and goals. Ultimately, your suppliers are only as good as the access and information you give them to your business so they can successfully do their job.

3. Share the big picture. Be willing to share the full picture of your business strategy; not just the specific piece of the puzzle that directly pertains to the supplier. The supply chain is intricately linked together and the more context you can share with your suppliers, the more adaptable and flexible you’ll be together when challenges arise.

4. Establish and reassess agreements. Agree on terms for your partnership early on. Regularly revisit terms to ensure they still reflect your needs and your supplier’s capabilities. When it comes time to renew terms, be proactive. Don’t automatically renew; make sure all terms reflect the current needs of both groups given today’s dynamic, ever-changing supply chain landscape.

5. Determine expectations. Mutual success is at the root of any supplier relationship. Be transparent with your expectations, but allow space for your supplier to share feedback to come to a mutually agreed-upon understanding that allows both parties to be successful.

6. Promote suppliers to your peers. When given the opportunity, vouch for your suppliers and promote them to your peers, whether that’s at conferences or in organic conversations. Exchange leads and vendor contacts with your suppliers for the ability to tap into cross-selling opportunities that are mutually advantageous.

7. Integrate communications. Prioritize keeping your suppliers up to date on business activities by enabling regular two-way communication at every level of the relationship, from the top down. This will enable open communication when business is good, but also when it’s inevitably time to navigate a disruption or challenge together.

8. Facilitate regular business reviews. Keep dialogue open by designating a specific cadence to revisit goals, review current performance, highlight recent wins and discuss any challenges. Align on what cadence works best—monthly, quarterly and/or annually—and consider reviews that include top management for full visibility and alignment from both parties.

9. Allow each other to fail and correct. Particularly in the beginning, give each other grace by allowing both sides to fail and correct. Great relationships don’t form overnight, and it takes time to understand the complexities of each other’s businesses. Be accepting of feedback and understand that challenges and mistakes will happen. It’s how you navigate those together that matters most.

10. Prioritize and value human interaction. As technology continues to integrate into the supply chain, human interaction is only becoming more valuable. Avoid solely transactional experiences and certainly don’t rely on them. Ensure you have regular video calls and in-person meetings with your suppliers. By prioritizing human interaction, you open the door to more organic conversations and naturally build a stronger relationship.

SOURCE: Doug Frank, SVP of Transportation Management & Procurement, GEODIS

2. Guard against errors. Establish a proactive maintenance program to identify any errors that may occur within the four walls of the warehouse. Structure the program so that cycle-counting (proactive inventory audit) is based on the most important criteria.

3. Establish inventory hierarchy. Typically, inventory hierarchy involves ranking SKUs or SKU categories based on their value, velocity, seasonality, or other priority. Organize your inventory into high (A), medium (B), and low movers (C). Then align processes accordingly to ensure that you count on the appropriate frequency.
Ideally, the frequency should be commensurate with how often SKUs are touched since each touchpoint is an opportunity for error. You might count A’s monthly, B’s quarterly, and C’s annually to ensure your program creates the most value.

4. Minimize product hold time. The longer products sit in the warehouse, the greater the cost of goods sold (COGS). To preserve the margin potential of inventory in the warehouse, maximize storage density and increase inventory turns. The greater your turns, the lower your COGS.

5. Consider rotational strategies. First In, First Out, for example, can minimize overall inventory costs over time. First Expire, First Out can minimize the risk of obsolescence. Deploy the appropriate rotation strategy for each part of your business.

6. Leverage information systems. A robust ERP or WMS can streamline and automate inventory management, taking human decision-making out of the equation, which also helps reduce labor costs. If your inventory supports orders for multiple sales channels, it’s especially important to use robust, intuitive systems that can handle that level of complexity.

7. Utilize technology to optimize processes. Systems can also improve specific processes. With cycle-counting, for example, a WMS can validate a physical inventory count. Using a double-blind process and supervisory re-count for two-way validation significantly improves accuracy. Advanced automation and robotics can help to ensure accurate order processing, which is directly tied to inventory management. Autonomous mobile robots and lighted pick/put solutions help get orders out the door accurately while ensuring that accurate inventory is maintained in the warehouse.

8. Capture post-mortem data. Establish a process for follow-up once an order ships. You want to learn about any issues, resolve them quickly, and ensure a good client experience. Any discrepancies or adverse findings create data points that you can act on. That data capture is critical, as it helps identify the root cause of the issue.

9. Address shrinkage issues. By keeping a close eye on the data, you can identify inventory inaccuracies and trends. This iterative process can help you to reduce shrinkage and manage risk over time. Inventory accuracy tracking can’t be out of sight and out of mind. Daily metrics tracking helps to identify and address problems quickly.

10. Establish a continuous improvement program. A continuous improvement program is essential for effective inventory management. By improving productivity, accuracy, and consistency, Lean methodologies can help to drive cost savings and operational excellence.

SOURCE: Zachary Purdom, Regional Senior Director of Operations, Saddle Creek Logistics Services

2. Use alternative modes. Shippers may have to move to more cost-effective and carbon-efficient modes to cut carbon emissions and reduce fuel usage. For example, move from air to truck, truck to intermodal, intermodal to boxcar, or boxcar to ocean.

3. Consolidate more shipments. In addition to consolidating orders and creating multi-stop loads, shippers need to utilize vehicles as full as possible. Rather than shipping as soon as you receive an order, accumulate demand and send it out on a published “sailing schedule,” say, each Wednesday. This enables getting more on each vehicle and creates fuller trucks. For example, shippers may eliminate most parcel shipments, drastically cutting LTL volume.

4. Avoid adding intermediate moves. Consider this scenario: A major food plant has a small on-site warehouse that couldn’t accommodate all the volume. It could hold only a day or two of production. Their solution was to get a large warehouse 25 miles away and ship everything there to redistribute to their own DCs as well as perform customer shipments. With intelligent technology and the recognition that they could utilize space on empty trucks returning from the outside to bring back items needed for an order, they managed to ship 40% of the product directly from the plant warehouse.

5. Seek out inexpensive alternate fuels. No, we are not saying to switch to electric trucks, as 25% of U.S. electricity is generated by burning coal, a major source of CO2. Instead, biodiesel mixes are sustainable and don’t require special expensive equipment. Existing diesel engines can use biodiesel fuel with little to no modification.

6. Manage customer orders to fill trucks. Offer incentives such as better pricing if the customer orders more than, say, 44,000 units. Shippers can also use order-sizing technology that understands product stacking constraints and axle weight restrictions and flags loads if the truck needs to be utilized appropriately.

7. Make use of pallet pooling. Pallet pooling—where multiple companies share a common pallet pool to transport goods—helps avoid bringing in or removing non-managed packaging items over long distances. It also eliminates landfill for items such as odd-sized pallets.

8. Route trucks in real time. Real-time (dynamic) routing systems use algorithms and real-time data to determine the most efficient routes, reducing unnecessary travel delays. Think “Waze for trucks.” Efficient static routing minimizes the distance traveled but dynamic routing cuts the time spent on the road, directly reducing CO2 and other greenhouse gas emissions.

9. Smooth out shipments. Deadhead miles (without cargo) represent about 15% of all miles driven. Violently fluctuating demands from shippers cause many of these wasteful miles, forcing them to reposition empty equipment over long distances. Consider the costs a carrier incurs to accommodate 24 shipments one day and three the next. Cutting this variability in replenishment using network capacity optimization generates savings for shippers and carriers.

10. Fill up your trucks. With 91% of trucks underloaded, using math optimization technology for load building saves 5-10% on costs and reduces the number of trucks on the road, which saves fuel and reduces carbon emissions.

SOURCE: Tom Moore, CEO and Founder, ProvisionAi

2. Use a transportation management system. A TMS with strong rail management features automates manual processes and standardizes daily workflows and procedures. A good rail management system can notify you of common issues such as bill of lading transmission failures, in-transit exceptions, and potential accrual or invoice related issues.

3. Cultivate and invest in relationships. Develop relationships with your carrier sales reps, local crews, executives, and anyone else you closely work with to ship rail. While this can be a challenge with turnover and promotions, it is important to invest time in these relationships to fully understand carrier capabilities, learn their shipping preferences, stay aware of service changes, and address issues as they arise.

4. Understand your rail expertise gaps. Rail knowledge is a limited commodity in the industry, but you don’t necessarily have to search for the rail unicorn to hire. Bring in an outside perspective to do an assessment of rail knowledge needed. Training, software, third-party services, and consulting are all available to help bridge the gaps to set rail shippers up for success.

5. Develop bench strength. From targeted mentorship programs to robust documentation programs, there are ways to pass along knowledge to the next line of rail experts. With rail knowledge becoming a limited commodity, this should be a focus of any rail shipping plan.

6. Build flexibility into the plan. Rail shipments can be subject to unexpected delays from weather and changing service reliability. Building flexibility includes maintaining extra inventory, staging loaded railcars at strategic points in the route, or having alternative transportation options in case of disruptions.

7. Maximize product shipped per car. Efficiently loading rail cars lowers costs and reduces environmental impact. Make sure you have the right visibility into dashboards to track loading efficiency and ensure current processes and procedures all align to this goal.

8. Use technology to optimize rail. By analyzing large pools of data, technology helps companies predict potential delays and costly scenarios before they even happen. Predictive risk identification helps shippers keep track of ever-changing conditions and understand potential future shipment issues, giving more time to communicate with customers and execute contingency plans.

9. Mitigate yard capacity risks. Work with your yard personnel to gain a complete understanding of your rail yard operations constraints. Consider planned maintenance schedules, yard track capacities, and outbound/inbound switch processes. Use this along with order/demand planning to visualize and monitor daily/weekly railcar demand, predicted railcar supply, and asset utilization.

10. Measure, monitor, and adjust your shipping plans. No matter how carefully you develop and execute a shipping plan, it still needs to be monitored, managed, and adjusted. Through dashboards, notifications, and KPIs, you can successfully execute rail shipping with minimized risks.

SOURCE: Brian Cupp, Director of Operations, IntelliTrans

2. Focus on adding value, not creating it. For many companies, the question isn’t what to do but what not to do. What is your team uniquely positioned to address and respond to effectively? And where can you find partners that are equipped to extend your impact without pushing the constraints you operate within at your company?

3. Consider capital vs. expense dollars. Many companies are being challenged to do more with the same or fewer resources than before. When evaluating new initiatives, consider the allocation of your capital resources and weigh the potential efficacy of an investment in both technology and personnel against the possibility of leveraging outsourced providers to augment your team’s capabilities.

4. Accelerate data aggregation. Data storage and aggregation is becoming less expensive with the burgeoning availability of cloud storage and its inherent ease of data transfer. Put together a strategy for your company’s data aggregation that prioritizes the seamless integration of providers and systems into a flexible environment that is not costly to change.

5. Keep resiliency efforts ongoing. Don’t forget that as you create a more resilient network, you then need to manage a more diverse network. Don’t overlook the recurring effort and personnel resources it takes to maintain and improve after implementing your strategy.

6. Put actionable metrics in place. As you diversify your network, you need to then establish meaningful metrics and a recurring cadence for reviews with your providers. Keep in mind that if your highest-scoring provider isn’t your best provider, your metrics are off.

7. Pay attention to provider solvency. As you begin to derisk and diversify your network, it will enable you to think about your provider mix differently. Maybe you can take a risk on a new provider in a market where you have more established providers in the portfolio. Derisking doesn’t mean not taking risks.

8. Determine the true cost. Look at the full cost of the opportunity. Opening up a new import warehouse may create an additional warehousing expense but transportation expenses, inventory carrying costs, or even an increase in sales due to speed to market can easily offset the initial expense.

9. Ensure provider flexibility. Core to de-risking the supply chain is to be careful to not enlist too many critical services from one provider. However, when selecting providers, additional opportunities should be identified—and potentially included in the contract—in the event you need those services.

10. Align your core solutions. When selecting a provider for one of your core solutions, make sure it is a core solution for the provider as well. Companies today are shifting strategy and focus, which can be impactful to you. Make sure you are aligned.

SOURCE: Reade Kidd, CEO & Co-Founder, EDRAY

2. Fight operator fatigue. Over the course of a shift, operator productivity can decrease as fatigue mounts. With a large portion of operating costs going to finding and retaining a limited labor pool, it’s crucial to maximize productivity all shift long. Ergonomic equipment can fight operator discomfort and keep them efficient for a full shift.

3. Bridge the gap with robots. Finding and retaining labor is a consistent issue for warehouses. Robotic lift trucks can relieve labor pressures by automating repetitive load transportation, and storage and retrieval workflows, so employees can focus on higher-value tasks.

4. Leverage the golden zone. The 80/20 rule applied to order picking means 80% of high-velocity, fast-paced order picking movement comes from just 20% of SKUs. Organize pick faces so that the most frequently picked items are in the most convenient pick locations, also known as the ergonomic golden zone. This can minimize reaching and straining to access inventory, and boost throughput.

5. Optimize order picking paths. The less time pickers travel between locations, the more time they can spend actually picking. Equipment features such as the option to move a pallet truck between pick locations without having to climb back on, saves steps and seconds between picks.

6. Reclaim indoor space for core functions. Not all warehouse space is used for processes such as receiving, storage, and picking; lead-acid battery charging, maintenance, and storage typically requires dedicated indoor facilities. Newer lift truck power sources, such as lithium-ion batteries, do not require the same dedicated space for charging, storage, and maintenance, so warehouses can reclaim valuable space for core functions.

7. Go up, not out. As warehouse space grows more expensive, many operations maximize their horizontal footprint by building up, rather than out. Very narrow aisle (VNA) lift trucks can take advantage of these higher-level locations by operating in aisles as narrow as 56 inches and accessing storage locations more than 50 feet high.

8. Assist operators working at height. Reach trucks are a common solution for narrow, high warehouse aisles, with operators picking and placing pallet loads from tight storage locations at great heights. Fork-mounted cameras and lights can help operators precisely pick and place pallet loads in elevated storage locations, enabling consistent performance and limiting damage to pallets and product.

9. Go double deep. Another way to boost storage density is to use double deep configurations, in which operations store two pallets in a single location, with one behind the other. Going two pallet loads deep can enable up to 50% more capacity than single selective racking without occupying significantly more floor space.

10. Regularly evaluate warehouse performance. Identify key warehouse performance metrics and evaluate your own performance against historic levels and industry benchmarks for best-in-class performance. The Warehousing Education and Research Council releases a yearly DC Measures report that features a list of industry-wide warehouse performance benchmarks.

SOURCE: Jim Hess, Director of Warehouse Business Development, Yale Lift Truck Technologies

2. Be Flexible with Schedules. Carriers appreciate shippers that offer flexible schedules, large delivery windows, and fast yard check-in and check-out. Providing flexible appointment times and accepting trucks during “off” hours, such as evenings and weekends, helps carriers better utilize their vehicles and gives them the ability to pick up loads at less busy times.

3. Give Sufficient Lead Time. The more lead time you can provide carriers, the better off you’ll be. This helps carriers schedule their operations more efficiently. Giving your provider weeks of notice—as opposed to days—greatly improves your odds of being accommodated, while firmly positioning you in the “easy to work with” category.

4. Provide Driver Amenities. Truckers spend excessive amounts of time behind the wheel of their rigs. Providing restrooms, break areas, and parking for drivers can go a long way in making your location more desirable.

5. Provide Drop-and-Hook Capability. Drop-and-hook freight is trucker-friendly, as it allows the driver to drop off a load and hook up to a pre-loaded or empty container at the same facility. Drivers are more likely to accept freight from shippers that provide this option because it enables them to spend more time on the road, maximizing their earning potential.

6. Communicate Clearly. Carriers are often frustrated when shippers provide incomplete instructions. That’s why it’s important to maintain clear and consistent communication. Keep carriers informed about any changes to shipments and be readily available to answer questions. An effective solution is to create a link on your company’s website where carriers can easily obtain scheduling and policy procedures. Also, consider hosting regular carrier conferences and solicit feedback to learn about ways that you can improve as a shipper.

7. Minimize Loading/Unloading Wait Times. Each minute that a trucker is stuck at a shipper’s facility is time off the road—time that can’t be utilized for hauling new shipments. Provide convenient access for drivers with a yard that is easy to navigate when coming and going. Additionally, have your equipment and manpower ready to go when a truck arrives. Shippers associated with excessive wait times will have difficulty impressing carriers.

8. Be a Predictable Partner. Carriers like to do business with shippers that are predictable. Strive to be reliable with your shipping volume and avoid last-minute changes. The more predictable you are, the easier it is for carriers to integrate your shipments into their planning.

9. Utilize a TMS Solution. Transportation management system (TMS) technology solutions help carriers increase the predictability of loads, providing them with greater visibility further upstream. This will also help carriers improve their route planning and driver scheduling functions.

10. Focus on Partnerships. Teamwork and relationships really matter in logistics. Recognize that your carriers are supply chain partners that deserve to be treated with the same respect as customers. Working together to identify and solve problems that impact both parties will serve you well in becoming a shipper of choice.

SOURCE: Jagan Reddy, Managing Partner, Netlogistik US

2. Shield your system, protect your data. Transition to a browser-based user interface using APIs or CGI scripts to transfer data to and from the servers via firewalls. Browser-based systems are far more secure—they were initially developed by the U.S. Military to ensure data security and remote access speed.

3. Implement tighter controls on logins. Requiring strong, frequently updated password controls is essential, as is controlling who can create user logins. Monitoring this helps avoid human error that can leave your system vulnerable.

4. Work through Other platforms. Swiftly work through alternative software platforms while you identify the main system issues. This helps reduce the severity of the attack because it enables business continuity with minor impact on your customers. Our experience has shown us that customers who are open to working on alternative platforms significantly minimize their cargo flow disruption.

5. Leverage AI data ingestion tools. Use these tools to conduct major data input. This can replace or substitute for EDI connections in the short term by facilitating the process of importing large, assorted data files from multiple sources into a single, cloud-based storage medium.

6. Secure the main system. Ensure the main system is fully backed up and operational and free of viruses. Returning to the main system prematurely can create additional problems that negatively impact both customers and employees.

7. Vet platforms before an attack. When looking for the right platform, ask key questions, such as: How much of the core business can be supported on this platform? Do you need more than one? Does this align with my business objectives?

8. Integrate an emergency platform into your main system. The fail-over platform, which is a standby system available if the main system fails, should run as a mirror of the live environment. Cyber attacks often result in losing access to current data, which is a huge problem. Transitioning to live data saves an enormous amount of time and minimizes the impact on the customer. Keep in mind that advanced set up reduces transition downtime and helps maintain continuous operations. It is important to establish two-way connectivity between the systems so the backup system is up to date and new data can easily be restored to the original platform. Remember to have a data mirror in place prior to an event; this serves as insurance.

9. Implement a training program. With a small investment in training, employees can quickly learn how to work in a new, unfamiliar environment—which saves time and money in the long run. Conduct training for entire teams while applying a more frequent and comprehensive approach for key users.

10. Conduct occasional fire drills. Practicing how to handle a challenge that requires a calm, swift response ensures the team is prepared during a real-world crisis. There is a reason all children must practice fire drills at school. This is to prevent panic and ensure everyone knows how to quickly transition to a safe environment. The same is true with core systems as well.

Source: Bryn Heimbeck, Co-Founder and President, Trade Tech

2. Ensure consistent quality control. Quality control is not just about your final product; it extends to all aspects of your business. When sourcing components and materials from global suppliers, insist on stringent quality checks to ensure they are meeting your standards, each and every day. This maintains a consistent brand reputation for your company.

3. Verify data accuracy and reliability. Inaccurate supply chain and logistics data can delay shipments, add costs, and hurt your reputation. Your logistics technology platform should have clean, verified data so all supply chain stakeholders can make optimal, informed decisions. Data integrity standards are an effective way to drive supply chain value for your customers and all parties to a shipment.

4. Communicate in a timely manner. From start to finish, transparent and timely communication is key to building trust with customers and supply chain vendor partners. Be a good partner who communicates effectively and resolves issues promptly to avoid supply chain disruptions.

5. Prioritize social responsibility. Engage in community initiatives and support local causes where your company operates. Employees can actively participate in these activities, enhancing your brand’s reputation as a socially responsible organization and doing something good for your community and its people.

6. Build a transparent supply chain. Eliminate siloed communication. Connect internal stakeholders, vendor partners, and customers to simplify and streamline operations, enhance communication, and effectively respond to ongoing market conditions and challenges. Web-based supply chain and logistics technology enhances global connectivity and is available 24/7. Transparent supply chains foster trust and confidence in your brand.

7. Foster supply chain innovation. Encourage innovative solutions that could significantly improve your brand reputation. Innovation can lead to a better customer experience, improve efficiency, and enhance your reputation for being on the cutting-edge of industry advancement and trends.

8. Ensure sustainability. Whether it’s sustainable packaging, transportation and routing choices to reduce your supply chain carbon footprint, or selecting renewable energy sources in your warehouse, you can make eco-conscious decisions that demonstrate your commitment to a greener, healthier future. Your ongoing efforts in developing environmentally friendly solutions is a key way to create a planet-friendly supply chain, as well as enhance your brand reputation.

9. Collaborate on planning. Build a positive brand reputation by developing rapport with vendors and other stakeholders. This leads to better collaboration and mutual support, which serves you well when exceptions occur and supply chain performance relies on resolving these issues quickly. The essence of collaboration, honesty, and respect lays a strong foundation for year-round interactions.

10. Vet your sourcing choices. Your sourcing decisions can have a direct impact on your brand reputation. Ensure that your sourcing decisions include an ethical and sustainable practices review that involves fair labor practices, environmental standards, and community engagement efforts.

SOURCE: Jeff Plumley, Chief Commercial Officer, ASF Logistics

2. Understand the current state. Take stock of current operations. Are processes manual and paper-based or supported by legacy systems that might be functionally robust but aging and technically obsolete? This will influence whether you should simplify or select an advanced system.

3. Get familiar with existing applications. If you have an existing WMS (or multiple), familiarize yourself with the vendor(s) and determine if they have newer systems that you could adopt. Also, an ERP with WMS capabilities might be another route to explore if and where it makes sense.

4. Identify functional essentials. WMS is mature with parity but not equality across WMS offerings. Companies must identify the typically small number of non-standard or differentiating capabilities they absolutely must have, or the system will not work for them. These are not basic features and functions that might show up in an RFP. These are “must haves” that may require customization.

5. Map end-to-end processes. WMS solutions are good at handling the processes that take place inside a warehouse, but sometimes companies have processes that extend into other areas like manufacturing or omnichannel fulfillment. Understanding the extended process flow and integration needs is critical to success.

6. Consider business projections. A WMS has a long life span. Looking at short, medium, and long-term business projections into the future helps ensure scalability to support the business long term. Under-invest and you could be back looking at a new WMS in a few years. Buy too much and you will under-utilize the system, sometimes for decades.

7. Determine level and types of automation. Consider current and future automation needs and how the WMS will support and integrate with them. Historically, this was easier as material automation was often a significant investment and the cost helped dictate the strategy. Now, with flexible automation like intralogistics smart robots, just about any warehouse could consider automation.

8. Gauge employee readiness. Labor, both operational and IT, is a major challenge for warehouse operations. Evaluate the current composition of your team to ensure the right balance in both the business and technical aspects of deploying a new WMS. Few, if any, companies buy WMS to slash labor, but rather to improve productivity and reduce workforce churn. Aspects like user experience, flexibility, and new ways of working can lead to a more engaged workforce and should be highly rated criteria.

9. Identify improvement opportunities (ROI). It can be notoriously hard to justify the cost after installing a WMS for the first time. Companies must find additional business value for the system, such as labor management, slotting, warehouse redesign or automation. The key is identifying these opportunities and then demonstrating both hard and soft benefits to leadership.

10. Put a sharp eye to budget and financial constraints (TCO). Be brutally honest about financial constraints that could slow or stop an evaluation. Mandating a payback in less than two years might make justifying a new or replacement WMS difficult. The good news is since most WMS purchases are now cloud and SaaS-based, OPEX (an expense that is incurred through normal business operations) can help with capital appropriation. But total cost should be evaluated in both scenarios.

SOURCE: Dwight Klappich, Research Vice President and Fellow; Simon Tunstall, Director Analyst; and Federica Stufano, Sr Principal Analyst, Gartner Supply Chain Practice