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C.H. Robinson Announces Bob Biesterfeld to Replace John Wiehoff as CEO

February 13, 2019 · By Jeff Berman · 

C.H. Robinson Chief Executive Officer

A change at the top is coming soon for Minneapolis, Minn.-based global logistics services provider, and freight forwarder C.H. Robinson.

The company announced that as part of a “long-planned succession process”, effective May 9, Chief Operating Officer Robert (“Bob”) Biesterfeld, will become Chief Executive Officer, as well as being nominated to stand for election to the company’s board of directors.

Biesterfeld will replace C.H. Robinson Chairman and CEO John Wiehoff, who will continue as Chairman of the Board when Biesterfeld becomes CEO.

C.H. Robinson also announced that Scott Anderson, current C.H. Robinson Board member, will become the Lead Independent Director, also effective May 9.

“Our success at Robinson has always been driven by our people, processes, and technology,” Wiehoff said in a statement.

“The Board and I are confident Bob is the right person to lead our accelerating investments in each of these areas. During his almost two decades at Robinson, Bob has consistently demonstrated deep industry knowledge, strategic vision, and a passion for delivering results. He has been the driving force behind our digital transformation efforts, accelerating the pace of innovation and technology deployment across our platform. He is an established leader with the right experiences and skills for the next chapter of Robinson.”

Chief Operating Officer Robert (“Bob”) Biesterfeld

Biesterfeld will have large shoes to fill, as, under Wiehoff’s leadership at C.H. Robinson CEO over the last 17 years, total company revenues have increased more than 500% to $16.6 billion, with annualized total shareholder returns of 13% over the past 17 years.

An accomplished industry veteran, Biesterfeld has been with C.H. Robinson for 20 years. Before being named COO in March 2018, he served as President, North America Surface Transportation and prior to that he served as Vice President, Truckload and Vice President, Robinson Fresh, where he started his logistics career path in 1999.

Biesterfeld is a graduate of Winona State University and serves on Board of Winona State University Foundation in addition to the board of the Transportation Intermediaries Association.

Earlier, Logistics Management/Peerless Media Group News Editor Jeff Berman caught up with Biesterfeld to discuss his new role as CEO and industry trends and themes. A transcript of their conversation follows below.

What are your expectations and objectives in your pending new role as C.H. Robinson CEO?

We have had a senior leader in John Wiehoff, who has been in the CEO chair for most of the past 20 years or so.

As for what looks different on May 9, I think the really good news for our people and organization is that John’s tenure as CEO has been nothing short of spectacular. In the industry changes that have occurred over the last 17 years, with competitive and macro forces and the cyclical and secular changes of our history, C.H. Robinson started in a leadership position, at the beginning of John’s tenure as CEO, and will end his tenure as CEO in a leadership position as well.

Over the last four years or so that I have served as the company’s president of North America Surface Transportation or COO, with accountability for the company’s five business units and shared services as well, John and I and the rest of the senior leadership team have really been co-developing and co-owning the strategic direction of C.H. Robinson.

As John exits in May, there will not be a sharp left or right turn, in terms of our strategic priorities or how we invest our capital or how we show up in the marketplace. There have been a few chapters of the company’s history over the last 115 years, and one of the interesting things is that John is not the only long-tenured CEOs.

Going back to 1963, prior to my being appointed in this role, we have only had three senior leaders since then. I think it really shows the stability of our company and that we have continued to invest across multiple generations of supply chains, as we established our foundation and determined what we ‘want to be when we grow up’ so to speak.

Our roots began as a production company, evolving into being more of a full logistics provider in North America post-deregulation. We then got into the next chapter of international and global expansion, where we invested heavily in growth overseas in Asia and Europe, as well as the first instances of Navisphere, our technology platform.

When thinking about where we sit today, we have this great combination of North America and have spent more than $1.5 billion on M&A and investment into our global forwarding network. It was really about streamlining that investment and bringing it all together. 

Where do things go from there?

A lot of it has to do with turning the page to a more digital future, where we are very focused on the three core components of people, process, and technology, with technology continuing to be a more important piece of that overall puzzle.

That is how I am thinking about it directionally, and our senior leadership team is focused on that strategy.

Staying with technology, given all the attention to logistics technology in the form of things like blockchain, AI, IoT, Cloud, and others, how would you describe the state of supply chain and logistics technology?

There is no doubt that the logistics technology space is growing faster than ever, with change never slower than it is today.

The way that I think about it is that everyone has algorithms, and, years ago, everybody talked about proprietary technology and now everybody has it in some way, shape, or form. And all the leading companies in the logistics space have their own data scientists and algorithms. There is kind of this level set across technology, and there can only be so many differentiators, with everyone pursuing the same goals.Collaborative Supply Chain Intelligence

June 24 – 26, 2019 • The Broadmoor • Colorado Springs, CO

Collaborative Supply Chain Intelligence

Keep up-to-date

Full details coming soon!

Technology on its own is, really, I don’t think, the solution. We think about our investments in technology, and they really support the two other pillars, people and process, and where we think those three things come together, and what separates us in that space…is experience and scale. When we think about that fact that we have had 115 years of experience, we have learned a lot of things along that journey.

That experience does not come with just time; it comes across multiple industry verticals, continents, and modes and services. When we aggregate those experiences, the other thing we are aggregating is data, and we have all these data points that we are able to bring together on a global basis across what is viewed as the world’s largest supply chain platform.

That really starts to become scale, and our IT people that are building programs and cool algorithms have a really big competitive advantage, because we have more data, and we have more data because we have more loads. 

How does that data translate into the market?

When a small motor carrier comes to us, 15%-to-20% of its miles are driven empty and are non-revenue-generating miles. The biggest thing a small motor carrier wants is more miles to get more money, and, chances are, we have a load closer to that carrier than anybody else does.

If a shipper comes to us, we can offer them a broader base of capacity than anyone else does and we are more likely able to provide a service for them that is on time and meets their needs.

Another thing specifically around technology is that many of the new technology entrants, or tech-enabled brokers, or disruptors, disruptors, are really pushing customers to integrate and operate only on their platform.

What is C.H. Robinson’s approach?

We want Navisphere to be the easiest supply chain platform to use in the industry.

If you would like to operate in Oracle or SAP or whatever your ERP system is as a shipper, or JDA as a carrier, or use your off-the-shelf Transportation Management System, we can work with you, rather than pushing customers only on to our systems.

We want to meet our customers where and how they want to buy, as opposed to pushing them.

Shifting gears, C.H. Robinson is a very big player in a very competitive and crowded brokerage market. In this environment, what are you trying to do as a company to distance yourselves from the competition, given such a finite carrier base?

Looking at the customer lens is where we try to start all of our conversations.

We serve such a broad and diverse group of customers, from the smallest micro shipper making something in a garage and doing a residence pick up and shipping a parcel, to the world’s largest companies that are fully integrated with Navisphere, like Microsoft, for example, that uses our technology to power their supply chain.

We have a whole continuum of customers, from the smallest of the small to the largest of the large, and I think what has been important for our customer go-to-market strategy is to ensure that we have aligned our value to the needs of those customers.

Can you provide an example of that?

We are not going to go to a small manufacturer and ship once a month and sell them on our data and analytics capabilities or our robust reporting.

So, for that small shipper, we will ensure they have the easiest system to access and have access to the best rates for parcel, LTL, and truckload and that they can come online, get a quote, book a shipment, swipe a credit card, and within an hour have someone there picking that shipment up to bring it to the final destination in full.

But a Microsoft does not want to deal with using a credit card. They need robust reporting and real-time visibility through things like IoT and sensors and the Cloud, which shows them where their entire inventory is, in motion or at rest, to be able to ensure there are no supply chain disruptions for something like the next launch of an Xbox.

We are focused on providing value for a wide variety of segments. If you think about specific verticals like oil and gas, they have very specific needs…so we really work to customize that solution for that sector. It takes smart people and supply chain engineers to do that, and it goes back to having the people, process, and technology to do that.    

Looking at the current state of the market, what is different now compared to a year ago?

What is different now compared to a year ago is the cycle repeats itself again and again and again. It started with the hurricanes, which drove capacity constraints and things [were crazy], with very few trucks and many loads and that led to an industry reset and everyone re-priced.

In our Managed Services business last year, I think our average tender for a truckload shipment was 3.5, meaning that loads went through the routing guide to the third or fourth carrier before it was bid on and this is for the $4 billion worth of freight in our industry.

Today, it is now about 1.4, so what happened was that everyone went out to market…and people locked in capacity at higher rates and when that happens the spot market dries up, as it is comprised of unplanned demand. Loads that were supposed to go through the tracking process fall back in and that drives spot market pricing down and resets rates at a higher rate.

If you look at public motor carrier earnings, they are talking about mid-to-high single digit rate increases for 2019, which I believe to be an effect of the rate pricing they did in 2018. The rates now are a combination of a mixed shift with contractual freight making up a higher percentage of our portfolio combined with declining annual spot market rates.

How do you view the last-mile logistics and the e-commerce driven supply chain?

There is no question that e-commerce and omnichannel fulfillment have changed a lot about the supply chain, in terms of inventory position, order cycles, and other things.

Beyond that, the experience we have on our mobile devices that we get used to when we order something online, or the personal experience, is now transferring into our business experience. We now need to know where everything is all of the time.

In terms of our position, there are a couple of things that have driven change to our model. One thing is that we are working with a lot of shippers in Asia that want to position inventory through things like Fulfillment by Amazon and other seller networks to move products out of Asia, and that works really well for our ocean and air business. We certainly are not one of the largest providers of the inside home delivery type of business.

The biggest part of our business directly related to e-commerce exists with our managed services business, where we are using Navisphere to provide large global shippers with complete supply chain visibility across everything from ocean freight to parcel shipments.

We are touching it in a lot of different ways, and in the last few years or so we are seeing it in the average length of our truckload movements.

How is that?

In 2013, the average mileage per truckload was about 780 miles and it is now 620 or so.

The impact through the shortening of the length of haul is a function of inventory being placed in different parts of the country.

It allows for the order cycle to be shorter and enables us to move things when and where we want it in a different way.

What are some of the key things happening in the ocean market from a C.H. Robinson perspective?

When we look at our ocean business as a forwarder, we are a much bigger player there than we are on the air side.

Our focus in ocean has been to continue to strengthen our TransPacific eastbound business, as we are the largest NVO in that lane and also into Australia.

When we acquired Phoenix International in 2012, we really doubled the size of our overall global forwarding business and somewhat turned the keys over to the Phoenix leadership to continue to build on their model.

In the ocean business, we are continuing to build out density in our trade lanes and we will continue to look for ways to grow in that space both organically and through acquisition.

What about the air forwarding market?

2018 was a really important year for us in that space as we invested heavily into it. It is a complex market.

You cannot just sit on a trade lane; you need to focus on gateways, assets, and people, and it continues to be a strong growth vehicle for us.

Related ArticleC.H. Robinson CEO John Wiehoff Talks Transportation Trends

C.H. Robinson CEO John Wiehoff Talks Transportation Trends

Related Resources

Download the Paper

Why eShipping Selected the SMC³ Platform for Transactional LTL API Connectivity New!
In this case study, Chad Earwood, CEO of eShipping, describes how they integrated the SMC³ platform for transactional LTL API connectivity, and by using the analytical APIs RateWare XL and CarrierConnect XL they are able to obtain immediate LTL rates and audit LTL pricing. Download Now!


Download the Paper

Strategic LTL Bidding for Minimum Cost & Maximum Efficiency
This paper details how SMC³ designed Bid$ense for complete procurement transparency, and how you’ll move ahead with ease and confidence toward best-choice carrier qualification and truly strategic LTL procurement. Download Now!


Download the Paper

The Case for a Re-Indexed LTL Benchmark Pricing System
This paper takes a deep dive into SMC³’s CzarLite XL, an advanced pricing system solution that gives shippers, logistics service providers and carriers a new neutral benchmark choice when negotiating LTL shipping rates. Download Now!


Download the Paper

The Single Source for LTL Pricing & Transit Information
The SMC³ Platform empowers 3PLs and Shippers of any size to successfully navigate and optimize the LTL shipment arena, choose the level of computing power based on your specific needs and operating environment with a technology platform offering the best of all worlds. Download Now!


More Resources from SMC³

Article Topics Trends  Business  Leadership Leadership Logistics Services Provider Transportation Management Systems All topics

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About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics ManagementModern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman Latest Business NewsC.H. Robinson Announces Bob Biesterfeld to Replace John Wiehoff as CEOFebruary 13, 2019 ·         C.H. Robinson has announced that as part of a “long-planned succession process”, effective May 9, Chief Operating Officer Robert (“Bob”) Biesterfeld, will become Chief Executive Officer, as well as…
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February 13, 2019 · By Jeff Berman · 

C.H. Robinson Chief Executive Officer

A change at the top is coming soon for Minneapolis, Minn.-based global logistics services provider, and freight forwarder C.H. Robinson.

The company announced that as part of a “long-planned succession process”, effective May 9, Chief Operating Officer Robert (“Bob”) Biesterfeld, will become Chief Executive Officer, as well as being nominated to stand for election to the company’s board of directors.

Biesterfeld will replace C.H. Robinson Chairman and CEO John Wiehoff, who will continue as Chairman of the Board when Biesterfeld becomes CEO.

C.H. Robinson also announced that Scott Anderson, current C.H. Robinson Board member, will become the Lead Independent Director, also effective May 9.

“Our success at Robinson has always been driven by our people, processes, and technology,” Wiehoff said in a statement.

“The Board and I are confident Bob is the right person to lead our accelerating investments in each of these areas. During his almost two decades at Robinson, Bob has consistently demonstrated deep industry knowledge, strategic vision, and a passion for delivering results. He has been the driving force behind our digital transformation efforts, accelerating the pace of innovation and technology deployment across our platform. He is an established leader with the right experiences and skills for the next chapter of Robinson.”

Chief Operating Officer Robert (“Bob”) Biesterfeld

Biesterfeld will have large shoes to fill, as, under Wiehoff’s leadership at C.H. Robinson CEO over the last 17 years, total company revenues have increased more than 500% to $16.6 billion, with annualized total shareholder returns of 13% over the past 17 years.

An accomplished industry veteran, Biesterfeld has been with C.H. Robinson for 20 years. Before being named COO in March 2018, he served as President, North America Surface Transportation and prior to that he served as Vice President, Truckload and Vice President, Robinson Fresh, where he started his logistics career path in 1999.

Biesterfeld is a graduate of Winona State University and serves on Board of Winona State University Foundation in addition to the board of the Transportation Intermediaries Association.

Earlier, Logistics Management/Peerless Media Group News Editor Jeff Berman caught up with Biesterfeld to discuss his new role as CEO and industry trends and themes. A transcript of their conversation follows below.

What are your expectations and objectives in your pending new role as C.H. Robinson CEO?

We have had a senior leader in John Wiehoff, who has been in the CEO chair for most of the past 20 years or so.

As for what looks different on May 9, I think the really good news for our people and organization is that John’s tenure as CEO has been nothing short of spectacular. In the industry changes that have occurred over the last 17 years, with competitive and macro forces and the cyclical and secular changes of our history, C.H. Robinson started in a leadership position, at the beginning of John’s tenure as CEO, and will end his tenure as CEO in a leadership position as well.

Over the last four years or so that I have served as the company’s president of North America Surface Transportation or COO, with accountability for the company’s five business units and shared services as well, John and I and the rest of the senior leadership team have really been co-developing and co-owning the strategic direction of C.H. Robinson.

As John exits in May, there will not be a sharp left or right turn, in terms of our strategic priorities or how we invest our capital or how we show up in the marketplace. There have been a few chapters of the company’s history over the last 115 years, and one of the interesting things is that John is not the only long-tenured CEOs.

Going back to 1963, prior to my being appointed in this role, we have only had three senior leaders since then. I think it really shows the stability of our company and that we have continued to invest across multiple generations of supply chains, as we established our foundation and determined what we ‘want to be when we grow up’ so to speak.

Our roots began as a production company, evolving into being more of a full logistics provider in North America post-deregulation. We then got into the next chapter of international and global expansion, where we invested heavily in growth overseas in Asia and Europe, as well as the first instances of Navisphere, our technology platform.

When thinking about where we sit today, we have this great combination of North America and have spent more than $1.5 billion on M&A and investment into our global forwarding network. It was really about streamlining that investment and bringing it all together. 

Where do things go from there?

A lot of it has to do with turning the page to a more digital future, where we are very focused on the three core components of people, process, and technology, with technology continuing to be a more important piece of that overall puzzle.

That is how I am thinking about it directionally, and our senior leadership team is focused on that strategy.

Staying with technology, given all the attention to logistics technology in the form of things like blockchain, AI, IoT, Cloud, and others, how would you describe the state of supply chain and logistics technology?

There is no doubt that the logistics technology space is growing faster than ever, with change never slower than it is today.

The way that I think about it is that everyone has algorithms, and, years ago, everybody talked about proprietary technology and now everybody has it in some way, shape, or form. And all the leading companies in the logistics space have their own data scientists and algorithms. There is kind of this level set across technology, and there can only be so many differentiators, with everyone pursuing the same goals.Collaborative Supply Chain Intelligence

June 24 – 26, 2019 • The Broadmoor • Colorado Springs, CO

Collaborative Supply Chain Intelligence

Keep up-to-date

Full details coming soon!

Technology on its own is, really, I don’t think, the solution. We think about our investments in technology, and they really support the two other pillars, people and process, and where we think those three things come together, and what separates us in that space…is experience and scale. When we think about that fact that we have had 115 years of experience, we have learned a lot of things along that journey.

That experience does not come with just time; it comes across multiple industry verticals, continents, and modes and services. When we aggregate those experiences, the other thing we are aggregating is data, and we have all these data points that we are able to bring together on a global basis across what is viewed as the world’s largest supply chain platform.

That really starts to become scale, and our IT people that are building programs and cool algorithms have a really big competitive advantage, because we have more data, and we have more data because we have more loads. 

How does that data translate into the market?

When a small motor carrier comes to us, 15%-to-20% of its miles are driven empty and are non-revenue-generating miles. The biggest thing a small motor carrier wants is more miles to get more money, and, chances are, we have a load closer to that carrier than anybody else does.

If a shipper comes to us, we can offer them a broader base of capacity than anyone else does and we are more likely able to provide a service for them that is on time and meets their needs.

Another thing specifically around technology is that many of the new technology entrants, or tech-enabled brokers, or disruptors, disruptors, are really pushing customers to integrate and operate only on their platform.

What is C.H. Robinson’s approach?

We want Navisphere to be the easiest supply chain platform to use in the industry.

If you would like to operate in Oracle or SAP or whatever your ERP system is as a shipper, or JDA as a carrier, or use your off-the-shelf Transportation Management System, we can work with you, rather than pushing customers only on to our systems.

We want to meet our customers where and how they want to buy, as opposed to pushing them.

Shifting gears, C.H. Robinson is a very big player in a very competitive and crowded brokerage market. In this environment, what are you trying to do as a company to distance yourselves from the competition, given such a finite carrier base?

Looking at the customer lens is where we try to start all of our conversations.

We serve such a broad and diverse group of customers, from the smallest micro shipper making something in a garage and doing a residence pick up and shipping a parcel, to the world’s largest companies that are fully integrated with Navisphere, like Microsoft, for example, that uses our technology to power their supply chain.

We have a whole continuum of customers, from the smallest of the small to the largest of the large, and I think what has been important for our customer go-to-market strategy is to ensure that we have aligned our value to the needs of those customers.

Can you provide an example of that?

We are not going to go to a small manufacturer and ship once a month and sell them on our data and analytics capabilities or our robust reporting.

So, for that small shipper, we will ensure they have the easiest system to access and have access to the best rates for parcel, LTL, and truckload and that they can come online, get a quote, book a shipment, swipe a credit card, and within an hour have someone there picking that shipment up to bring it to the final destination in full.

But a Microsoft does not want to deal with using a credit card. They need robust reporting and real-time visibility through things like IoT and sensors and the Cloud, which shows them where their entire inventory is, in motion or at rest, to be able to ensure there are no supply chain disruptions for something like the next launch of an Xbox.

We are focused on providing value for a wide variety of segments. If you think about specific verticals like oil and gas, they have very specific needs…so we really work to customize that solution for that sector. It takes smart people and supply chain engineers to do that, and it goes back to having the people, process, and technology to do that.    

Looking at the current state of the market, what is different now compared to a year ago?

What is different now compared to a year ago is the cycle repeats itself again and again and again. It started with the hurricanes, which drove capacity constraints and things [were crazy], with very few trucks and many loads and that led to an industry reset and everyone re-priced.

In our Managed Services business last year, I think our average tender for a truckload shipment was 3.5, meaning that loads went through the routing guide to the third or fourth carrier before it was bid on and this is for the $4 billion worth of freight in our industry.

Today, it is now about 1.4, so what happened was that everyone went out to market…and people locked in capacity at higher rates and when that happens the spot market dries up, as it is comprised of unplanned demand. Loads that were supposed to go through the tracking process fall back in and that drives spot market pricing down and resets rates at a higher rate.

If you look at public motor carrier earnings, they are talking about mid-to-high single digit rate increases for 2019, which I believe to be an effect of the rate pricing they did in 2018. The rates now are a combination of a mixed shift with contractual freight making up a higher percentage of our portfolio combined with declining annual spot market rates.

How do you view the last-mile logistics and the e-commerce driven supply chain?

There is no question that e-commerce and omnichannel fulfillment have changed a lot about the supply chain, in terms of inventory position, order cycles, and other things.

Beyond that, the experience we have on our mobile devices that we get used to when we order something online, or the personal experience, is now transferring into our business experience. We now need to know where everything is all of the time.

In terms of our position, there are a couple of things that have driven change to our model. One thing is that we are working with a lot of shippers in Asia that want to position inventory through things like Fulfillment by Amazon and other seller networks to move products out of Asia, and that works really well for our ocean and air business. We certainly are not one of the largest providers of the inside home delivery type of business.

The biggest part of our business directly related to e-commerce exists with our managed services business, where we are using Navisphere to provide large global shippers with complete supply chain visibility across everything from ocean freight to parcel shipments.

We are touching it in a lot of different ways, and in the last few years or so we are seeing it in the average length of our truckload movements.

How is that?

In 2013, the average mileage per truckload was about 780 miles and it is now 620 or so.

The impact through the shortening of the length of haul is a function of inventory being placed in different parts of the country.

It allows for the order cycle to be shorter and enables us to move things when and where we want it in a different way.

What are some of the key things happening in the ocean market from a C.H. Robinson perspective?

When we look at our ocean business as a forwarder, we are a much bigger player there than we are on the air side.

Our focus in ocean has been to continue to strengthen our TransPacific eastbound business, as we are the largest NVO in that lane and also into Australia.

When we acquired Phoenix International in 2012, we really doubled the size of our overall global forwarding business and somewhat turned the keys over to the Phoenix leadership to continue to build on their model.

In the ocean business, we are continuing to build out density in our trade lanes and we will continue to look for ways to grow in that space both organically and through acquisition.

What about the air forwarding market?

2018 was a really important year for us in that space as we invested heavily into it. It is a complex market.

You cannot just sit on a trade lane; you need to focus on gateways, assets, and people, and it continues to be a strong growth vehicle for us.

Related ArticleC.H. Robinson CEO John Wiehoff Talks Transportation Trends

C.H. Robinson CEO John Wiehoff Talks Transportation Trends

Related Resources

Download the Paper

Why eShipping Selected the SMC³ Platform for Transactional LTL API Connectivity New!
In this case study, Chad Earwood, CEO of eShipping, describes how they integrated the SMC³ platform for transactional LTL API connectivity, and by using the analytical APIs RateWare XL and CarrierConnect XL they are able to obtain immediate LTL rates and audit LTL pricing. Download Now!


Download the Paper

Strategic LTL Bidding for Minimum Cost & Maximum Efficiency
This paper details how SMC³ designed Bid$ense for complete procurement transparency, and how you’ll move ahead with ease and confidence toward best-choice carrier qualification and truly strategic LTL procurement. Download Now!


Download the Paper

The Case for a Re-Indexed LTL Benchmark Pricing System
This paper takes a deep dive into SMC³’s CzarLite XL, an advanced pricing system solution that gives shippers, logistics service providers and carriers a new neutral benchmark choice when negotiating LTL shipping rates. Download Now!


Download the Paper

The Single Source for LTL Pricing & Transit Information
The SMC³ Platform empowers 3PLs and Shippers of any size to successfully navigate and optimize the LTL shipment arena, choose the level of computing power based on your specific needs and operating environment with a technology platform offering the best of all worlds. Download Now!


More Resources from SMC³

Article Topics Trends  Business  Leadership Leadership Logistics Services Provider Transportation Management Systems All topics

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About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics ManagementModern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman Latest Business NewsC.H. Robinson Announces Bob Biesterfeld to Replace John Wiehoff as CEOFebruary 13, 2019 ·         C.H. Robinson has announced that as part of a “long-planned succession process”, effective May 9, Chief Operating Officer Robert (“Bob”) Biesterfeld, will become Chief Executive Officer, as well as…
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The Difference between a Traditional Warehouse and an OmniChannel Warehouse

What Is an Omnichannel Warehouse?

An omnichannel warehouse is different from a traditional warehouse in that it handles incoming orders from online, brick-and-mortar, and all other possible channels.

Let’s take a closer look at omnichannel warehouses, why they’re necessary, and how they impact warehouse management and operations.

The Problem: Single Ecommerce Warehouses Cannot Handle All Orders

Part of the reason warehouses continue operating as traditional, single-channel warehouses, lies in the lackluster use of warehouse management technology.

In omnichannel supply chains, orders come in from all directions, including in-store orders, replenishment for existing stores, ecommerce orders, and even the occasional customer service-assisted orders.

In the age of Amazon, handling all e-commerce orders in a single warehouse is impractical, and it will result in lost opportunities.

Streamlining returns is an integral part of developing an omnichannel warehouse, and, with up to 30% of all e-commerce purchases returned, reports Business2Community, warehouse managers must include returns capabilities in existing warehouses.

This reduces logistics spending, but in standard warehouses, this also implies a 30% increase in workload without a corresponding increase in revenue.

Therefore, an omnichannel warehouse is the only solution.

The Solution: Converting All Warehouses to Omnichannel Warehouses Is Key

Staying competitive with Amazon is already difficult, as Amazon has an advanced, dedicated plethora of systems that speed order processing, picking and pulling, packing, and shipping.

Even though the company brick-and-mortar shopping centers are in infancy, simply being able to receive items at an Amazon pickup location makes Amazon a go-to preference for millions of customers.

Amazon’s abilities lie in its dedication to developing technologies and processes that expand shipping options while moving product faster.

According to Datex, operating an omnichannel warehouse requires, at a minimum, an integrated warehouse management system, an order management system, a package optimization system, and a variable shipping rate shopping tool, such as a dedicated transportation management system.

Warehouse managers should begin the process by converting all existing warehouse and distribution centers into omnichannel warehouses.

Furthermore, storefronts can be used as an additional means of order fulfillment, taking advantage of shelf products to reduce the distance between customers and order fulfillment centers.

The Reward: Operating Multiple Omnichannel Warehouses Offers Key Advantages

Companies have multiple warehouses in operation, and even storefronts can be used as mini-warehouses for the purposes of fulfilling more orders.

Additional advantages of embracing an enterprise-wide adoption of omnichannel warehouses include:

  1. Reduced delivery times, enabling competition with Amazon and Walmart, which are offering free, two-day, next-day or even same-day shipping options on certain purchases.
  2. Better collaboration between storese-commerce and order fulfillment.
  3. Expanded shipping options, such as click and collect delivery options, as explained by Olivia Riant of Generix Group.
  4. Greater variety of products, offering to customers more options and requiring greater attention to detail in warehouse management.
  5. Improved order accuracy through integration, improving perfect order percentages and boosting brand value.

Move Toward Omnichannel Warehouses to Stay Competitive

The days of an ecommerce-dedicated warehouse are over. Warehouse managers must understand the necessity of new systems and processes to create omnichannel warehouses, with the added benefits listed above.

About the Author

Jason Rosing is the founding partner of Veridian; a valued Manhattan Associates partner and technology leader specializing in user-friendly, robust and flexible automated testing and configuration management solutions designed to meet the ever-changing challenges of the omnichannel landscape.

Related: 9 Attributes Redefining the Warehouse of the Future

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It’s Almost October and the Holiday Hiring Has Arrived for the Transportation & Logistics Sector

The Holiday Hiring Season

The time for holiday hiring has arrived, with three of the biggest households in the freight transportation and logistics sectors-UPSFedEx, and XPO Logistics, each making announcements to that effect over the last few days.

The need for extra help, in form of staffing, is not a new, or novel, approach by any stretch of the imagination.

Instead, it is something that is required and needed, in order to keep up with the heightened demand that this new age of e-commerceand related last-mile logistics efforts, brings with it.

And when you factor in the holidays, well, it becomes quickly apparent that every one of these additional hires, even if temporary for the most part, are truly needed and serve as vital cogs in the fulfillment, distribution, warehousing, and delivery processes for each of these three companies.

Greenwich, Conn.-based XPO Logistics said it plans to hire 8,000 North American-based logistics staffers for the peak holiday season.

This looks to be a good decision at a good time, as the company said that its retail logistics volume through August is up around 20% compared to 2017, with the gains paced by consumer-demand for e-commerce and omnichannel retail fulfillment.

“We’re ramping up for the holiday season and another significant increase in e-commerce activity,” said Troy Cooper, XPO president, in a statement.

“We expect to add 8,000 seasonal jobs before November – a significant increase over last year’s holiday hiring. Our modern warehouses are filled with automation that is an attractive choice for workers and helps us to be as productive as possible for our customers.”

UPS, as usual, announced a significant seasonal staffing increase, with an expected 100,000 seasonal staffers to support what it described as its anticipated package volume increase from November through next January.

Big Brown said these seasonal positions are both full- and part-time, mainly for package handlers, drivers, and driver-helpers.

What’s more, it noted that these seasonal roles have long served as a springboard to full-time employment, as was as the case for UPS CEO David Abney and other senior UPS executives as well. UPS also said that over the last three years, 35% of the seasonal staffers it brought on became full-time staffers once the holiday season wrapped up.

“Every year, we deliver the holidays for millions of customers,” said Jim Barber, UPS chief operating officer, in a statement.

Jim Barber, UPS Chief Operating Officer

“Every year, we deliver the holidays for millions of customers”Jim Barber, UPS COO

“In order to make that happen, we also deliver thousands of great seasonal jobs at our facilities across the country.”

Lastly, when announcing the move for its FedEx Ground subsidiary to up its U.S. operations to six days a week, Memphis-based FedEx announced it plans to increase hours for some existing staffers and hire roughly 55,000 positions for the holiday season.

It also noted that FedEx Ground again plans to run six- and seven-day operations through the holiday season and also continue six-day operations throughout its U.S. network on a year-round basis.

FedEx said it expects a record influx of volume for this year’s holiday season and beyond, too, due to (you guessed it) increasing e-commerce demand. And FedEx made it clear that the rise in demand for e-commerce goes beyond peak, observing it is a “year-round phenomenon” and FedEx is prepared to meet that demand.

No matter how these companies word it, the fact remains that more e-commerce activity means more package volume, which means more staffers are needed to fill.

While unemployment is low, it stands to reason that these seasonal jobs may not be as easy to fill as they may have been in the past. But the opportunities are there, to be sure, and as in the case of UPS CEO Abney can potentially open the door to a bright future in the logistics field.

Buoyed by decent economic fundamentals and people shopping more than ever from the “virtual mall,” it is clear this is more than a trend and has been that way for more than a while, too. That will likely play out in the form of growing package volumes and the constant need for seasonal help.

6 Ways Companies Can Ready Their Supply Chains for the Holidays

“Because of the rise in the number of e-commerce orders during the holiday season, there is a big increase in transportation requirements for everything from last-mile packages delivered to a consumer’s home to inbound shipments coming into a distribution center,” said Dan Clark, Founder and President of Kuebix.

Read: It’s Almost October – Time To Get Ready For the Holidays!

  1. Give customers visibility to their orders. Using technology, retailers can provide Amazon-like experiences by tracking shipments in real-time and alerting customers if orders will be delayed. Carriers can house shipment information letting suppliers and customers know where their goods are and when to expect them to arrive at the next destination. With complete visibility, businesses can get more details on bottlenecks or specific incidents if there is an issue such as product damage or late delivery.
  2. Prepare to use the spot market to make up for excess demand not covered by carriers. Shippers can leverage their negotiated rates from their existing carrier relationships, and compare the full depth of market pricing across the spot bidding marketplace to find the best rates for the best service or to find the extra capacity to meet excess demand.
  3. Get more rates by connecting with more carriers. Connect to a global community with thousands of carriers, then compare all their rates side-by-side and choose the best carrier for each shipment, leading to substantial cost savings and better customer service.
  4. Get products as local to customers as possible. Many retailers are acquiring new, smaller warehouse space closer to their customers to shorten delivery times and journeys. Also, orders can be fulfilled from storefronts with end-to-end visibility of inventory. The shorter the distance from where inventory resides to the end customer, the faster the delivery and the lower the cost.
  5. Integrate internal systems like ERPs with transportation management platforms. The ability to integrate purchase orders automatically from an ERP system directly into the TMS cuts out paperwork and admin hours. Since the integration is two-way, shipment data is populated back into the ERP system for record-keeping and to provide stakeholders with complete visibility. This enables information down to the SKU level to be leveraged in claims management, meaning the shipper always has the information they need to protect their company’s interests. Shippers can also better understand the true landed cost of goods to make smarter decisions regarding their company’s bottom line when they integrate purchase orders directly from an ERP system.
  6. Get a TMS or replace legacy TMS platforms. Look for a TMS system that is modular and scalable so that it can expand as needs change during the busy holiday season. A cloud-based platform means faster implementation before the busy season and will have lower support costs. Actionable analytics from the TMS will help businesses make smarter shipping decisions and foster continuous improvements ahead of the holidays to ensure the supply chain is fully optimized.

“Black Friday, Cyber Monday and numerous holiday promotions all add to the huge spike in demand. Shippers need to keep operations flowing and use tools to handle the upsurge while keeping customers satisfied” said Clark.

Getting ready for the demand spikes imminent with the holiday season will keep businesses on track to meet customer expectations. Rising demand during the holiday season will ‘make or break’ businesses; a little preparation will separate those with winning strategies from those without.

Source: Kuebix

 

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Effectively Managing Big Data in Your Supply Chain
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FedEx Joins Hyperledger Blockchain Hub, ‘Big Implications’ for Logistics Delivery Efficiency

FedEx & Hyperledger

According to a press release published September 26, and as reported by FreightWaves, FedEx the giant US courier company, proactive adopter of blockchain technology and Blockchain in Transport Alliance BiTA member, has joined Linux hosted open-source project Hyperledger to further advance the use of distributed ledger in logistics and transportation.

Hyperledger, which was started in December 2015 by The Linux Foundation and now has 270 members, was set up to enable member organizations to build blockchain-based industry-grade applications, platforms and hardware systems in the context of their individual business transactions.

FedEx Proactive Blockchain Adopter

Fred Smith, FedEx CEO said earlier in the year he believes that blockchain is the “next frontier” for global supply chains.

In February this year, FedEx joined BiTA, and Dale Chrystie told FreightWaves:

“We want to work on developing common standards around blockchain technology in the transportation industry, and we continually try to enhance the customer’s experience, and blockchain is tied to that.”

Kevin Humphries, Senior Vice President of IT at FedEx Services told Cointelegraph.com that blockchain technology has ‘big implications’ for supply chains, logistics, and transportation.

Distributed Ledger Technology

Hyperledger Executive Director Brian Behlendorf has previously stated that distributed ledger technology (DLT) will diminish the power of tech giants like Google, Facebook, and Amazon. In today’s press release he said:

“We are gaining traction around the world in market segments from finance to healthcare and government to logistics. This growth and diversity is a signal of the increasing recognition of the strategic value of enterprise blockchain and commitment to the adoption and development of open source frameworks to drive new business models.”

Hyperledger is a multi-project, multi-stakeholder effort that includes 10 business blockchain and distributed ledger technologies.

Hyperledger enables organizations to build robust, industry-specific applications, platforms, and hardware systems to support their individual business transactions by creating enterprise-grade, open source distributed ledger frameworks and code bases.

The latest general members to join the community are: BetaBlocks, Blockchain Educators, Cardstack, Constellation Labs, Elemential Labs, FedEx, Honeywell International Inc., KoreConX, Northstar Venture Technologies, Peer Ledger, Syncsort and Wanchain.

Blockchain Meets Supply Chain

Blockchain, the technology for crypto-currencies, may soon start to have supply chain benefits in areas like tracking fresh foods. Because Blockchain uses distributed ledger technology, which can store transactions among many trading partners in a secure, immutable way that’s easy to view for authorized partners – giving it the potential for chain of custody over the movement of goods.

According to a survey last fall of third-party logistics providers (3PLs) from Penske LogisticsInfosys Consulting and talent advisory firm Korn Ferry, 30% of 3PLs and 16% of shippers see blockchain as having potential supply chain application. Shanton Wilcox, a partner with Infosys Consulting, says traceability of goods such as fresh foods, high-value items, or items subject to the risk of counterfeiting, are likely applications.

Late last year, IBM, Walmart, and Chinese retailer JD.com launched a Blockchain Food Safety Alliancecollaboration to improve food tracking and safety in China. Additionally, IBM and Maersk are working on a joint venture to apply blockchain to global trade, while the Blockchain in Trucking Alliance (BiTA) is working on blockchain standards for the freight industry.

Read the Article: Is Blockchain in the Supply Chain Coming of Age?

Wilcox estimates that it will be 24 to 36 months, however, before blockchain starts being used by supply chains. First, says Wilcox, pilots need to prove out the value, and consensus needs to be reached about what type of data will be shared – as well as the tricky issue of who will pay for storing data.

“Once a major company and its supply base gets operational with blockchain, or it starts to happen within a product category, companies can use that as a template, and that will propagate the momentum.”

Supply chains need to assess whether blockchain is a better way of controlling chain of custody versus more established technologies like bar codes and messaging between systems, Wilcox acknowledges. However, he contends that it promises value to extended supply chain networks because there’s no integration to iron out between systems.

Related: Unlocking Blockchain’s Potential in Your Supply Chain

Unlocking Blockchain’s Potential in Your Supply Chain

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Ecommerce Continues to Focus on Omnichannel Supply Chain Strategies: Demands Continuous Improvement

Omnichannel Supply Chains

Omnichannel supply chains are increasing in complexity and prevalence and for a very good reason.

Omnichannel customers have a tendency to spend more than their brick-and-mortar counterparts, explains Digital Commerce 360, making them an ideal way for retailers to stay competitive and reach more customers.

As 2018 progresses, Warehouse Managers need to understand the risk of not going omnichannel, why demand is increasing, and a few tips to meet such demands.

Warehouse Managers Avoiding Omnichannel Supply Chain Strategies Will Lose Competitive Ground

Competitive advantage is based on the ability of companies to offer products or services at reasonable, competitive prices.

Although pricing plays a big part, it also depends on the ability to offer unique services.

Today, more than half of the nation’s 140 retail chains in the top 500 offer omnichannel shipping and pickup options, and 72.1 percent of retail chains offer in-store returns of merchandise purchased online. Those that do not offer these options will lose competitive ground.

Demand for E-Commerce and Integration of Supply Chains Will Continue to Dominate 2018

As explained by Derek O’Carroll of Multichannel Merchant, some driving forces behind the demand for omnichannel supply chains include:

  • The creation of social storefronts.
  • Increased speed in warehouses.
  • Adoption of real-time commerce technologies.
  • Use of automated technologies for omnichannel supply chains.

How to Prepare for Increasing Supply Chain Demands Throughout 2018

Warehouse Managers must embrace omnichannel supply chains and their associated technologies.

The easiest way to move toward an omnichannel strategy lies in following these tips:

  • Re-evaluate inventory-optimization techniques and systems.
  • Increase focus on returns’ management in omnichannel supply chains. According to Sender Shamiss of Forbes, processing returns remains one of the highest costs for such retailers, so aligning data and systems is key to keeping costs in check.
  • Automate warehouse and supply chain management systems.
  • Make your case to consumers.
  • Consider new ways to reduce shipping costs and risk, such as the new packaging suspension service Amazon is using, reports the Sustainable Packaging Coalition.
  • Integrate inbound and outbound logistics and supply chain management systems.

Put Your Organization on the Path to Success With a High Focus on Omnichannel Supply Chains

The remainder of 2018 will lead to big changes in supply chain management, and the role of omnichannel supply chains will increase.

The gradual encroachment of the Amazon Effect, as well as political issues, will force supply chain executives and leaders to rethink their strategies, including automating systems and implementing a strict policy of continuous improvement.

About the Author

Jason Rosing is the founding partner of Veridian; a valued Manhattan Associates partner and technology leader specializing in user-friendly, robust and flexible automated testing and configuration management solutions designed to meet the ever-changing challenges of the omnichannel landscape.

Related: Focusing Too Much on Ecommerce Shipping Practices? A Reminder Logistics Fundamentals Still Matter

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Predictive Analytics & Omnichannel Supply Chain Management

Predictive Analytics

Knowing what will happen in the future of omnichannel supply chain management would be fantastic, and it would eliminate all concerns over inventory location and customer shopping habits.

Clairvoyance is not possible, but the next best thing, predictive analytics with omnichannel supply chain management, is.

Warehouse Managers need to take a predictive analytics mindset in all decisions and focus on how they can understand the possible issues and outcomes that may or may not occur in the future, says Halo Business Intelligence.

The Problem: Predictive Analytics Can Involve Almost Any Issue

As explained by Bernard Marr of Forbes magazine, the possible application of predictive analytics can range from order fill rate improvements to monitoring adverse weather conditions.

The variety is what makes predictive analytics challenging in application.

Warehouse Managers may lack the resources to manage and use information gleaned from predictive analytics to achieve the best outcome.

Instead of focusing on hundreds of smaller issues, Warehouse Managers must use predictive analytics to focus on the big picture.

The Solution: Predictive Analytics Streamline All Practices in the Omnichannel Supply Chain

According to Dale McClung of Supply Chain Brief, predictive analytics are part of managed analytics.

Managed analytics allows for the identification of opportunities to create value for customers, optimize supply chain visibility, reduce spending, and boost performance.

Moreover, this information can be used to analyze the current “health” of omnichannel supply chain management, how it affects customer service, and when to expand or contract operations to provide the best possible experience for consumers.

In other words, predictive analytics provide the ultimate “what-if” scenario forecasting that is essential in a supply chain that bends in on itself, is comprised of countless channels and must work together to act as a single unit to the customer.

The Reward: How to Use Predictive Analytics to Boost Omnichannel Systems and Processes

To gain insights through predictive analytics in the omnichannel supply chain, Warehouse Managers must follow these steps:

Download the White Paper
  1. Integrate systems.
  2. Track and measure performance.
  3. Use standard reporting to identify what happened.
  4. Quantify the issues.
  5. Drill down into the issue.
  6. Implement alerts to automatically notify others when issues occur.
  7. Determine what type of scenarios may help the situation.
  8. Identify what will happen if things continue unchecked.
  9. Recognize what will happen with different stimuli.
  10. Optimize the path toward a better outcome.
  11. Consider all possible locations, channels, and customers affected by a decision.
  12. Share information and insights with those affected.
  13. Automate the process.
  14. Use dashboarding to simplify reporting.
  15. Never lose focus, and repeat.

Predictive Analytics Will Build on Efficiencies and Save Big Money

Predictive analytics with omnichannel supply chain management make up one of the most in-demand topics in modern supply chain management.

However, predictive analytics only function when a thorough, integrated process for data collection, identification, and analysis exists.

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Top Supply Chain Challenges for Manufacturing Companies

The variety of products available through a growing number of distribution channels is truly amazing. Competition between brick and mortar and e-commerce retail channels, often within the same company, has led to a proliferation of products and services.

In fact, on a recent trip to a Nike store I explored the NIKEiD program they launched a few years ago that allows customers to customize their footwear. Once configured, your customized shoes are produced and delivered to your house in a matter of a couple of weeks.) I can’t wait to receive my Michigan State themed shoes – GO GREEN, GO WHITE.)

Delivery of ‘make to stock’ products to a home or business is now available within hours of making a purchase. A growing number of connected, smart devices that have the capability to anticipate the need for a product are available for purchase.

Consider the smart refrigerator that orders a gallon of milk based on the quantity of milk in the refrigerator and its average consumption. Consider the smart printer that orders replacement ink cartridges based on amount of ink remaining and an average use rate.

Furthermore, 3-D printers are becoming more common allowing companies and consumers to make their own products on-site. What’s next? Products beamed right into your house. Beam me up Scotty!!

Back to reality, today’s manufacturers face a long list of difficult supply chain challenges including increasing demand variability, inventory proliferation, manufacturing capacity constraints, increasing risks both nature and human based, more environmental compliance regulations, intense global competition, increasing customer expectations and a shortage of talent.

To survive in today’s highly competitive global environment, manufacturers need to piece together the many parts of the supply chain puzzle to lay the foundation for more mature capabilities in the future.

An estimated, 75% of available supply chain data originates from outside the ERP system. Complexity opens risks of miscommunication and disruptions, often from incorrect or incomplete data.

Clean and consistent data is required to harness the power of investments in analytics, digitization, optimization, machine learning, big data and other advanced supply chain capabilities. A supply chain Master Data Management (MDM) solution provides consistent, harmonized, standardized and actively managed data from across the extended supply chain.

Accurate demand forecasts lay the foundation for an effective supply chain. With greater forecast accuracy comes greater predictability ensuring downstream supply chain processes run smoother at less cost.

To be successful at demand planning requires an in-depth knowledge of your business, experience forecasting your products, and an advanced demand planning solution. Demand planning solutions use science to automatically apply a variety of forecasting methods in an unbiased way to create forecasts for all stages of a product’s life cycle.

Manufacturing facilities are pressed by market demand to provide greater product variety and shorter delivery times. Shifting to production lines that are more flexible and closer to customer demand helps produce a greater variety of products with shorter lead times with smaller batch sizes and more frequent change overs.

However, multi-plant sourcing and scheduling increases complexity and the need for enabling technology to develop an integrated plan for both aggregated levels of production and site level production to meet customer orders.

Eliminating excess and obsolete inventory is a priority for many manufacturers. Effective inventory reductions are best achieved by synchronizing demand forecasts, inventory quantities, and supply capacity throughout the extended enterprise. Multi-echelon inventory optimization replaces rules of thumb with science to optimize where and how much inventory should be held across the extended supply chain.

Many manufacturers find it extremely challenging to align supply capacity to variable demand, while meeting corporate objectives. Marketshare can be won or lost based on how well a company predicts and reacts to demand shifts. A well run Integrated Business Planning (IBP) process supported by an advanced IBP solution can mean the difference between success and failure. Companies that take a spreadsheet driven approach spend too much time manipulating data and not enough on value-adding activities.

Manufacturing supply chains have many moving parts, each with their own challenges and potentially conflicting objectives. Only a scalable, interoperable supply chain planning and optimization platform can ensure a company’s supply chain performance is optimized.

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Five Steps to Transform Your Consumer Goods Supply Chain

 

Today’s modern supply chains are multi-enterprise, starting with consumers, retailers, distributors; and flowing through an extended network of suppliers, contract manufacturers, and other third parties.

Successfully managing such supply chains requires visibility, planning, and execution across all trading partners.

Here are 5 steps to transform your extended supply chain into a competitive advantage:

1. Look beyond the enterprise and adopt analytics that uses real-time data

While traditional planning applications are restricted to mostly historical data from within the enterprise, current data from the extended supply chain – from retailers or distributors – contains critical information. Use it.

2. Automated algorithms are here to help

Automated algorithms enable the next step in supply chain performance through the systematic analysis of large amounts of data. It, therefore, frees professionals from mundane, low-value activities to focus on more strategic areas such as planning promotions or inventory policy decisions. Leverage technology to do more.

3. Connect logistics to S&OP

Finished goods are planned weeks or even months in advance yet shippers are the last to know, often finding out as orders cross their desks.

As a result, logistics is stuck in reactive mode, scrambling to secure capacity each day. New transportation forecasting algorithms can now predict logistics requirements that are synchronized with S&OP to ensure that everyone executes against the same plan.

4. Create healthy inventory across the entire supply chain

Managing inventory to support the business’ growth requires the simultaneous optimization of all echelons of the extended supply chain.

Removing unproductive inventory across the value chain frees millions in cash to invest in other parts of the business and lowers operating expenses by having the right product in the right place the first time.

5. Better serve customers by accurately sensing demand and connecting it to a timely supply response

Linking real-time demand with a timely supply response allows companies to commit with confidence and profitably capture growth opportunities in today’s volatile markets.

If your company is not already working on leveraging its extended supply chain, the time is now.

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Graph Blockchain Solutions Targets $15.5 Trillion Global Supply Chain Management Logistics Sector

August 23, 2018 · By 24/7 Staff ·

Blockchain Data Management & Global Logistics Market

With globalization and the increased consumption of various products worldwide, efficient supply chain management and the role of freight and logistics has become increasingly complex.

The global logistics market involves all activities of Supply Chain Management (“SCM”), including transportation, warehousing, inventory management, and the flow of information and order processing.

As previously published by Transparency Market Research, this market is estimated to reach US $15.5 Trillion by 2023.

Multi-national global logistics and freight companies such as FedEx, UPS, and Purolator have openly acknowledged their endorsement of blockchain technology, with all three joining the Blockchain in Trucking Alliance (BiTA), noting that it will bring efficiencies to their industry through consistent, transparent and immutable data.

“We’re quite confident that blockchain has big, big implications in the supply chain, transportation, and logistics,” FedEx CEO Frederick Smith said at the Consensus 2018 conference.

On their company’s press release, Linda Weakland, UPS director of enterprise architecture and innovation, said: “Blockchain has multiple applications in the logistics industry, especially related to supply chains, insurance, payments, audits and customs brokerage.”

Tied to global logistics, South Korea has one of the world’s highest e-commerce rates, however, they have lagged in keeping pace with warehouses and distribution centers. As such, as reported by the Wall Street Journal earlier this year, there has been a wave of investment into high-specification logistics projects across the country, both by the South Korean government through incentives and into Korean logistics properties by institutional investors such as the Canada Pension Investment Board.

Graph Blockchain Solutions

With the growth of this sector as a tactical objective, Graph’s foray into the global logistics industry commenced with providing solutions to divisions of Samsung and LG corporations. Both companies are South Korean based multinational conglomerates, known to be the world’s largest manufacturer of mobile phones and smartphones, and the world’s second-largest television manufacturer, respectively.

By participating in the development of technology that could revolutionize logistics for multi-nationals, Graph has secured a solid position with the goal of becoming a leading solution provider in the sector, focusing on building a global logistics eco-system wherein the graph blockchain solution would reduce downtime by providing real-time monitoring, tracking and business intelligence analytics.

This will enable companies to realize cost savings by mitigating delays and minimizing the impact of lost goods due to cargo theft and fraud, while at the same time driving efficiencies across their SCM.

Most recently, building on the company’s new-found presence within the global logistics space, Graph announced a memorandum of understanding with the Korean Trade Organization, KTNET, a Korean government Agency, to develop a blockchain based electronic trade services platform. KTNET affects US $5.57 billion annually in trade and services and links 97,000 customers and trade-related organizations through its trade system. By integrating the benefits of blockchain technology with real-time insights and reporting tools, Graph’s data management platform is part of the continued improvement of trade processes by KTNET, and further establishes Graph’s capabilities to provide viable leading-edge blockchain solutions in the global trade services sector.

“While blockchain data management is commonly viewed as a nascent technology, the increasing demand to address efficiency issues in supply chain management clearly dictates the need for rapid adoption of blockchain solutions such as Graph’s. Our successful partnerships to date show that we are a trusted solutions provider, and granted how big these industries are set to grow, this is just the tip of the iceberg,” says Peter Kim, President and COO of Graph.

About Graph Blockchain Limited

Graph Blockchain is in the process of listing as a public company on the Canadian Securities Exchange, by way of a reverse-takeover, resulting in a pre-financing valuation of approximately $39 Million CAD (click here for more information). Graph was started as a joint venture formed between Datametrex and Bitnine, with the mandate to bring the value of Graph Database technology to the blockchain environment where there is a great need to enhance performance and present the verified and authenticated data in unique ways.

About Datametrex AI Limited

Datametrex AI Limited is a technology-focused company with exposure to four exciting verticals. Big Data, collecting data from the retail point of sales environments. Artificial Intelligence and Machine Learning through its wholly owned subsidiary, Nexalogy. Implementing Blockchain technology for secure Data Transfers through its joint venture company, Graph Blockchain. Industrial scale Cryptocurrency Mining through its wholly owned subsidiary, Ronin Blockchain Corp.

Related Article: UPS Blockchain Patent to Route Packages through International Supply Chains via Multiple Carriers

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US GDP Q2 Growth Highest in Almost 4 Years

July 27, 2018 · By Joana Taborda

Personal consumption expenditure (PCE) contributed 2.69 percentage points to growth (0.36 percentage points in the first quarter) and rose 4 percent (0.5 percent in the first quarter).

Spending of durable goods rebounded (9.3 percent compared to -2 percent) and rose faster for nondurable goods (4.2 percent compared to 0.1 percent) and services (3.1 percent compared to 1 percent).

Fixed investment added 0.94 percentage points to growth (1.34 percentage points in the first quarter) and increased 5.4 percent (8 percent in the first quarter).

Investment rose less for equipment (3.9 percent compared to 8.5 percent), intellectual property products (8.2 percent compared to 14.1 percent) and structures (13.3 percent compared to 13.9 percent) and continued to fall for residential (-1.1 percent compared to a -3.4 percent).

The contribution from private inventories was negative (-1 percent), compared to +0.27 in the first quarter.

Meanwhile, exports jumped 9.3 percent (3.6 percent in the previous quarter) and imports rose at a much slower pace (0.5 percent compared to 3 percent). As a result, the impact from trade was 1.06 percent, much better than -0.02 percent in the first quarter and the highest contribution since the last three months of 2013.

Government spending and investment added 0.37 percentage points to growth, slightly higher than 0.27 percentage points in the first quarter. It increased 2.1 percent, above 1.5 percent in the previous quarter.

GDP growth figures for the previous years were revised due to comprehensive updates of the National Income and Product Accounts (NIPAs), which are carried out about every five years.

The updates incorporate newly available and more comprehensive source data, as well as improved estimation methodologies. The GDP growth for 2017 was revised slightly lower to 2.2 percent from 2.3 percent.

Related: Tariffs Present Different Supply Chain Challenges for Shippers

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Source: https://tradingeconomics.com/united-states/gdp-growth

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