What are the Top 7 Trends in Last Mile Logistics?

SC Viral The Pandemic Diaries

Shippers face many challenges in successfully delivering products to end-users, and last mile logistics will be a core focus of change in the coming months. Consumer demands and expectations are rising, and up to 25 percent of consumers are willing to pay extra for same-day delivery.

Also, same-day delivery will reach a 25-percent market share by 2025. By 2018 alone, same-day delivery and last mile logistics will be valued at more than $1.35 billion.

E-commerce is the driving force behind the sudden uptick in last mile logistics, and as explained by Logistics Management, e-commerce is expected to grow to $2.4 trillion by 2018 as well.

To gain a competitive advantage in last mile logistics, shippers need to understand the top seven trends in last mile logistics.

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Value Stream Mapping the Current State Process!

We had to begin the transformation of the company’s business processes to support the new business objectives.  This would mean value stream mapping the current state process.  Specifically the company was going to carry a dramatically different set of products which required a new set of capabilities in Strategic Planning, Merchandising, Marketing, Procurement, Inventory Management, Retail Operations and Logistics. 

That scope defined the set of processes we needed to change first.  The overall goal was to enable the transformation of the company which would manifest itself in higher revenue, improved growth and profitability, greater customer satisfaction and superior employee engagement.

We decided to attack this by introducing the Lean technique of Value Stream Mapping to the organization.  We had to start with mapping the Current State process.

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Future ECommerce Focus Areas for Supply Chain!

The backbone of Retail and ECommerce is Supply Chain. Without Supply Chain they cease to function. Goods don’t move to channels and customers have nothing to buy. It is that simple!

Not only is Supply Chain necessary to make Retail and ECommerce run, but Supply Chain is now a source of customer delightedness and competitive differentiation. Just think of same day delivery … that capability is entirely possible due to Supply Chain.

As such Supply Chain is not just a necessary function but a strategic weapon. Here are our thoughts on future ECommerce focus areas and considerations for the effective management of Supply Chain.

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Space Planning: Could You Run Out of Space in Your Warehouse too?

“We are out of space!”

“What?  We’re only in the middle of September.”

“The receiving docks are backed up.  We have trucks in the parking lot waiting to unload their goods.  There are even more containers on their way.  And we have no empty space left in the warehouse racking.”

That was the actual conversation I had with the head of the Distribution Centre (DC).  We had a big problem on our hands to say the least.

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The Growing Expectations of Last Mile Delivery!

The latest advancements in technology have had huge impacts on the world we live in, almost overnight transforming industries such as taxi services, food and grocery delivery, and music. Sometimes this change happens so fast it’s hard to even comprehend the growing expectations and what’s happening for businesses and consumers alike.

Although many of these growing expectations have been positive, creating a more efficient and faster-moving world (can you imagine a world without Uber?), there are many that reach too far, not taking into account the realities of the industry they are frantic to establish themselves in.

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7 Pitfalls of Amazon FBA (Fulfillment By Amazon)!

Fulfillment by Amazon or Amazon FBA lets sellers in the Amazon marketplace take advantage of Amazon’s giant logistics operation to ship their orders.

FBA items are eligible for Amazon Prime shipping and Amazon handles your angry customers (which Amazon considers its customers, not yours). Amazon has dozens of warehouses all over the country, and more around the world, so your products may be in your customers’ hands quickly.

If you pull back the Amazon curtain, however, you find the picture isn’t always rosy.

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Customers Do Not Care About Your Problems!

“The system is down.  We can’t ship any customer orders. We’re not sure when the system will be back up again.”  Oh no … Customers do not care about this stuff.

Coming into the Holidays, the busiest time of the year, that is the last thing that I wanted to hear.

I thought about it and said, “The Customer doesn’t care.

From that point forward we pulled together the necessary resources and visibility to get the problem solved quickly.   But the message was clear: The Customer doesn’t care about our internal problems.

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Warehousing: Optimize Storage Locations!

“We just spent several millions of dollars on a new Warehouse Management System for our E-Commerce Online Distribution Centre.  We do not need to spend any more money on our Supply Chain.” That sounded very intriguing to say the least.  At a minimize we needed to optimize storage.

The E-Commerce business anticipated 20-30% year to year growth. I could only interpret, having just joined the company, that all of the steps and planning needed had been taken.  We had to ensure that the Distribution Centre could handle Holiday volumes, especially over the Black Friday/Cyber Monday period.

However imagine my surprise when I went to the Online Distribution Centre.  All I saw was a very large warehouse with nothing but racks and shelving as far as the eye could see.  Employees were pushing carts up and down aisles, across the entire warehouse.  They were trying to find each of the products required to fill a particular customer order. The company had just invested in an expensive Warehouse Management System.

Yet  no time or money had been spent on process optimization, order fulfillment cycle time reduction,  cost reduction, or peak capacity load management.

We were in for a hectic Holiday season, at best!

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Transform Your eCommerce Business with Supply Chain Excellence!

While offering access to global markets, eCommerce has also created a new set of challenges for businesses, particularly when it comes to supply chain management. Consumers expect fast and personalized delivery options, and a well-designed supply chain network can help them meet these expectations and enhance the overall customer experience.

Let’s explore the changing eCommerce landscape, the challenges faced by businesses, and how they can be addressed through intelligent eCommerce supply chain excellence.

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The 5 Point Last Minute Black Friday Supply Chain Checklist!

Black Friday is almost here!  The Last Minute Black Friday Supply Chain checklist is here too!

It marks the tipping point demarcating the less busy, preparation focussed pre-Black Friday period from the frantically busy, execution focussed post-Black Friday period.

Record sales are expected from the online retail channel in particular, as is the case year after year.

For Supply Chain teams this means that time is running out to ensure that all of the planning, preparation, contingencies, resources, systems, processes and goods are in place.  

Here is our Last Minute Black Friday checklist.

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Our 2017 Top 10 List! – Part 2

It’s been a tremendous first year at  supplychaingamechanger.com.  Our goal has always been to share experiences and expertise.  And in the second half of 2017 we had an ever increasing number of articles contributed by industry leaders all of whom have been very generous in sharing their intellect and insights.  This is our second 2017 Top 10 List.

Our readers and contributors come from all over the world.  They include individuals new to Supply Chain as well as Industry leaders and everyone in between.   And they work in many different industries and vocations.   But they all have a common interest in Supply Chain, Operations, Business, Leadership, Change Management, Human Resources, Transformation,  and Technology.

Most importantly they all have an interest in learning and sharing.

As we end this first year we wanted to publish our 2nd Top 10 List.  Our first Top 10 List covered the Top blog posts from the first half of 2017 so our 2nd Top 10 List will cover the second half of 2017.

Thank you for your tremendous, ongoing support.  

So here is our 2nd Top 10 List of 2017…

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Get Ready for Holiday Now: Make It Boring (From A Supply Chain Perspective)!

The Holiday season finished recently.  And the next Holiday season may seem far away.  But in the area of E-Commerce Fulfillment it will be here before you know it.  Now is the time to begin implementing the improvements and strategies you need to make this coming Holiday season more successful than last year.

Having gone through the ups and downs and stresses of several Retail Holiday seasons myself, one January I gave this direction to my team.  For the upcoming Holiday our theme was that we were going to have a BORING Holiday season … from a Supply Chain perspective.

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Innovations in Offline Retail! (Infographic)

There is no escaping the fact that offline retail has changed over the last number of years. The predominant reason for this is advancement in technology but specifically with the emergence of the Internet and associated devices which allow consumers to literally shop from the comfort of their couch.

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Warehouse Fulfillment – Move Material to the People, Not Vice Versa!

“Here Come The Bots!”

Wow!  This was the headline caption on the presentation I was about to see.  I had just joined the company.  I had just spent the last few years in Retail.  I had done a lot of research on how to improve efficiencies and productivity in Online/E-Commerce Fulfillment Distribution Centres.  And I had lived through the agonizing process and resource challenges of fulfilling E-Commerce orders during the Holiday season, which is far and away the busiest time of the year in Retail.

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Competing against Amazon? You Need A Blue Ocean Strategy!

Amazon is far and away the leader in the E-C0mmerce space.  Their growth continues at an exceptional pace.  And they continue to expand their products, services, and capabilities.  In short they continue to press their advantage and make it difficult for anyone else to compete with them.  You need a Blue Ocean strategy!

But if you are in the E-Commerce space that is your reality.  Amazon is the biggest shark in the room.  So how do you compete in the face of such an overwhelming adversary?

One technique is to consider creating your own Blue Ocean Strategy to create competitive advantage!  If you can define dramatically different space in which to do business you may be able to keep this shark, and others, at bay (at least for a period of time).

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