Immediate Retailer Actions to Overcome Logistics Delays!

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We are fast approaching the Holiday season. Retailers would normally already have their goods on hand in Distribution Centres, Stores, and any other channels they may use.

But this year is different. The fallout from the global pandemic persists and shipping delays are rampant. Retailers should have had their goods by now yet for some their inventory hasn’t even left the country of manufacture. Even Christmas trees will be in short supply.

Panic should be setting in now if it hasn’t already. What are the options for Retailers to circumvent these logistics delays and get their inventory on hand in time for Holiday sales?

The State of Things

As reported by CNN on October 19, 2021, there are over 200,000 shipping containers waiting off the coast of Los Angeles, representing a backlog of over 2 weeks worth of work. That is notwithstanding the trail of additional ships and containers that are still on their way to Los Angeles.

Extending work hours at the port to a 24 hour schedule is alleviating some of the backlog but increased demand for products means that port workload will be heavy for some time to come. These backlogs and delays are not unique to Los Angeles as other ports in the US, Europe and Asia are experience similar problems.

The Financial Times states that as of October 15, 2021 there are 584 container ships stuck outside ports worldwide, double that of the same time last year.

These delays invariably lead to dramatic increases in shipping costs, which inevitably are going to work their way through to price increases for end consumers.

Even when those containers are unloaded another problem awaits. Getting enough trucks, and truck drivers, delays the pick up of these goods for delivery to parts unknown. The American Trucking Association has stated that there is a shortage of 80,000 truck drivers. The Coronavirus has dramatically worsened what was already a bad situation in terms of the shortage of drivers.

Any way you look at it Retailers are going to have a hard time getting all of the inventory they need to satisfy the surging demand, which will only be compounded when considering even greater demand driven by the Holiday season.

And in many respects this demand is perishable. Consumers will either go to other retailers who do have the inventory, or they won’t buy at all.

What are the drastic steps that Retailers can take NOW, to get as much inventory as possible into their channels?

Act Like It’s An Emergency, Because It Is!

In Retail the enormous wave of activity hits Supply Chain well before the Holiday season, as the massive influx of inventory hits the logistics channels and distribution centres. Normally by late October all of these goods would be on hand, in inventory, and positioned for the pending sales season.

Because so many Retailers are still waiting for goods that are stuck either on the ocean, in ports, or on the road, they must take DRASTIC steps now in order to mitigate any delays.

Here are our recommendations on steps that must be taken right now:

1. Put Your Team on High Alert

Create a SWAT team and a war room, with daily, if not hourly, governance and oversight. This is not a drill. Hire in extra outside consultants or resources as needed. There are lot of professional organizations offering Supply Chain as a Service (SCaaS). You need people working on this stuff 24 hours a day for the foreseeable future. If you don’t add extra resources now you will regret it later.

2. Spend MORE on Logistics

Plan to spend a lot more money on logistics, at least in the short term. Shipping costs are going up. PERIOD. Beyond that you should prepare your organization to spend even more. Remember, if you can’t get the goods into your customers hands, that demand is likely perishable. So you must spend more to get those goods into position so that you can fulfill as much of that demand as possible.

3. Proactively Manage Everything, Buy Whatever You Can, and Take Control

Proactively manage all aspects of your logistics network. Do not just leave this up to your carriers. These carriers are serving a lot of different customers, all of whom are also commanding attention and demanding expediting, and you are just one. You must make the decisions.

Buy any and all available inventory at your local Distributors and Wholesalers. Even if this means you need to take last minute actions to update your merchandising plan and online promotions, having any inventory is much better than having no inventory at all.

4. Implement All Alternatives for Moving and Storing Your Goods

Consider all alternatives for moving your goods:

  • Route the ships with your goods to less congested ports. Ensure these ports are working 24-7.
  • Hire truck drivers, and trucks, on contract to pick up and transport your goods. Consider paying for team drivers so that your trucks never stop running.
  • Charter airplanes and air freight your goods to their destinations.
  • Hire extra carriers and rent (or buy) containers wherever possible.
  • Establish local, mini “Pop-Up” distribution centres and storage facilities close to either the ports or your points of highest customer demand, to minimize the movement of goods. This should be done irrespective of where your current facilities are.
  • Implement drop shipping and avoid sending your goods to centralized distribution centres. Drop ship your goods directly to stores, consumers and other distribution points and avoid excessive handling. Even if this means stores will have crowded backrooms, or trucks in their parking lot, that is a lot better than having inventory stuck in a distribution centre, at a port or on the road.
  • Embrace a Touchless, or “Don’t Touch” paradigm in materials handling and storage. Forget your current processes and procedures. Moving materials multiple times and moving those goods on and off storage shelves is wasted activity. Especially when you are pressed for time you should eliminate all unnecessary handling and storage activities. The drop shipping model is an example of this new paradigm.
  • Buy as much inventory as you can now, far in advance of demand, and beyond normal order and delivery lead times. While this may be too late for this coming Holiday season, strong demand will continue for the foreseeable future. At a minimum buy the strategic elements of your inventory now.
  • Extend your delivery lead time parameters, as well as your order lead time parameters. Leave these exaggerated times in place until we are well past the point at which logistics delays are problematic.

Logistics Delays in Conclusion

Don’t just sit back and wait for your goods to arrive. This is not the time to be passive, complacent and indifferent.

Everyone is scrambling to get their goods all at the same time. That means that common resources (eg. ships, ports, trucks, truck drivers, distribution centres) are bottlenecks. Demand for these resources is far greater than the available capacity hence these logistics delays.

The result is that the people who are more aggressive, more creative and innovative, more determined, more organized, and yes more willing to spend money, will be more likely to get their goods earlier than you and everyone else.

Retailers are staring at the stroke of midnight with respect to getting their goods in place on time for the Holiday season. Take all measures, no matter how extraordinary, to bypass these logistics delays and get your inventory in your channels. Your share of your customer’s wallets, and your business survival, depend on it.

Logistics delays article originally published on October 26, 2021.

5 Tips for Shipping Your Engagement Ring Safely!

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Have you heard stories of engagement rings going wrong before? Yes, an engagement ring can get damaged and, if you are not careful, you may not realize it until it’s the big day. Most of the damages reported have occurred during shipping as most people order engagement rings online.

You can avoid ending up with a damaged ring using various tips. This article will discuss the best ways to ship your engagement ring without damaging it. You can use the insights shared above to avoid a nasty surprise when unpacking your engagement ring after it’s delivered.

Here’s what you should do.

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Same Day vs Next Day Delivery … What’s the Difference? (Infographic)

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E-commerce has changed the game of how parcels are transported and delivered to customers with the expectations of same day vs next day delivery.

With the help of advanced technology, the days have become shorter. We no longer have to wait for the sun to rise and set a few times before we receive that box of meat pie that’s probably not safe to eat anymore.

What once felt as if a pack mule was used to deliver a package, now seems like a teleportation device is involved in the delivery.

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World Class E-Commerce Fulfillment Principles! (Infographic)

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E-Commerce is the fastest growing avenue for doing business anywhere.  It has been for many years and it will be for many years to come.  In support of this your operations need to be World Class.

It is certainly a challenge to establish the sales, marketing, merchandising and transactional infrastructure to offer an efficient and effective E-Commerce solution to your customers.

At the core of the Supply Chain an enormous challenge is to have a highly competitive and compelling E-Commerce Fulfillment solution.  So what are the key principles that you must have in place to design, construct and deliver a leading E-Commerce Fulfillment solution?

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Apparel Fulfillment – A Sneak Peek!

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The process of completing clothes orders is known as apparel fulfillment. The process begins with the creation of the product by the designer or garment manufacturer. The delivery of clothing purchased by clients is the result of apparel fulfillment.

When a consumer placed an order and pays for it, the business is responsible for completing the order. This is where logistics play a role. Fulfillment is the process of transferring items from a supplier to a warehouse and then to a customer’s address.

Multiple stakeholders, such as designers, merchants, manufacturers, and distributors, must work together to fulfil an order. The product that will be sold to the buyer is usually provided by a vendor.

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How to Sell on Amazon! The Complete Guide!

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Amazon is an online marketplace used by millions of people globally. From clothing to electronics to toiletries, you can find almost anything on Amazon.Wondering how you can get in on the action and how to sell on Amazon? All you need is a small monetary investment to get started and the knowledge of how to run a successful listing.

Anyone can sell on Amazon if they can choose a product, set up a profile and find a fulfillment provider. The benefits of selling on Amazon range from access to millions of customers to the ease of their platform.

Here we’ll walk you through each step of the selling process from setting up your account to expanding globally. Learn how to sell on Amazon.

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Cutting Edge Warehouses! (Video)

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Last week, the Wall Street Journal reported that in 2017 total spending on logistics in the US rose to a record $1.5 trillion, up 6.2% from the year before. What’s more, the costs of warehousing, fulfillment and delivery are expected to keep rising in the upcoming year. This is why the biggest players in the market are investing in cutting edge warehouses and technology.

Here are 4 amazing examples of beautiful warehouse operations in which the latest technologies are helping ecommerce giants handle record volumes of parcels faster and more efficiently than ever before.

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DIM Weight Pricing Explained!

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The 2014 holiday season marked the last Q4 end-of-year sales period where packages shipped based on actual weight. With the start of 2015, UPS and FedEx instituted a dimensional DIM weight pricing structure.

The US Postal Service has since adopted this pricing model, also referred to as DIM weight pricing. This has changed the way freight companies calculate shipping charges.

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Seasoned Leadership in Action™ – An Interview with Kristie Syndikus, VP Procurement at Maple Leaf Foods!

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At Supply Chain Game Changer we believe in sharing experiences and expertise from people in every industry and from across the globe.  As such we have introduced our “Seasoned Leadership in Action” Interview series at Supply Chain Game Changer. This interview is with Kristie Syndikus, VP of Procurement at Maple Leaf Foods.

Kristie was also recently recognized as one of the Top 100 Canadian Women in Supply Chain.

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6 Benefits of Using a Conveyor System for Food Processing!

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There are many aspects encompassing food processing, from mixing ingredients to packaging to quality control. All these are quite involving and you might require a bigger workforce to enable this, especially if you’re looking to expand your operations. A food conveyor system will come in handy with this expansion.

This system focuses on transporting goods from one point to another, including from floor to floor. Adopting such a system can prove to be beneficial for your food processing. Wondering how?

This article will highlight some of the advantages of adopting a conveyor system in your operations. Read on!

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Supply Chain is Tackling Food Waste Like Never Before!

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Consumers are demanding more from the companies they buy from, and Supply Chain Management is at the forefront of delivering that increased responsibility. Consumers increasingly want goods that are produced ethically, sustainably, and with a minimum of waste.

With the prevalence of digital technologies like Blockchain, companies have more tools at their disposal to dig into their supply chains and make sure that they meet these consumer standards – and if they don’t, they have less of an excuse.

One Supply Chain Sustainability topic that’s been getting a lot of attention lately is the issue of food waste.

A fascinating new article in Bloomberg digs into the magnitude of the issue, and the efforts ramping up – some backed by big venture capital investment – to stop it.

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Delivery in the Age of Amazon!

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Brands don’t have to be Amazon to build stellar last mile delivery and fulfillment operations that win new business and drive customer loyalty.

However, they do have to look deeply and honestly at the way they run their delivery operations today, and then take the next step forward by making the necessary changes.

If you think delivery is just about transporting a product to the buyer, think again.

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Amazon by the Numbers! (Infographic)

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Whether you love, hate or remain neutral on Amazon, one can only marvel and admire Amazon by the numbers which only appear to be accelerating.

The infographic from Fortna in this post from Jeff Ashcroft provides a startling picture of where Amazon is at currently and how they’re expected to handle over half of online e-commerce transactions with Walmart now only at 5% and growing!

Content provided by Jeff Ashcroft.

Competing against Amazon? You need a Blue Ocean strategy!

Amazon by the numbers article and permission to publish here provided by Jeff Ashcroft. Originally published on Supply Chain Game Changer on August 24, 2017.

How to Expand Your Business to Take Advantage of the European Marketplace!

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In a highly competitive global marketplace, business owners must reach a wider audience with their products and services to ensure they can compete, regardless of where they operate. 

It goes without saying that the internet has fuelled the growth of international trade. Today’s customers are fully prepared to purchase goods and services online from a company outside their country – if they can be delivered quickly and reasonably priced. 

That’s why breaking into the European marketplace is vital to enjoy growth and expansion for businesses of all sizes and sectors. After all, the current total population of Europe is almost 750 million people, all of which have the potential to be one of your consumers. 

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5 Benefits of a POS System!

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POS is an essential element for every business that sells goods, whether it is done online or via brick-and-mortar. A smart POS system performs more tasks than simply notifying the consumer. In a larger scale, the point of sale (POS) designates the area of retail sales.

Consider it to be akin to a checkout counter. POS consists of transaction-related operating systems, including the cash box, credit card swiper, barcode readers, and document printers.

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