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1. Work with what worked

You can’t change the future unless you reflect on the past. Ask yourself the question “what has worked so far?” Maybe it was phone communication, or social media marketing. You need to analyze how you got your meaningful relationships and spend more of your time doing that.

Evaluate what didn’t work and find a way to either rid yourself of it completely, or minimize the amount of time you do that particular thing.

2. Know your vision

Write down goals and remember why you got into this industry in the first place. Are you spreading yourself too thin or are you actually where you want to be right now? Do you need to hire others to increase your quality or do you need to build more of a customer base? Your vision will guide the answers to those questions.

3. Find one skill personally and professionally to work on

This is your year to make a move you haven’t before. As people will (hopefully) begin to transition out of a two year pandemic, the pull will be to go back to where things were. Don’t fall for that, the supply chain will never be the same. Companies are looking for brokers who are going to adapt, so choose now to increase your technologies, or your communication skills, or anything else.

4. Surround yourself with the right people

Get some broker connections. Join one of the associations or participate in social media groups. Just because someone is in the same industry doesn’t mean they have to be an enemy. If you work together, you will go further faster than if you work alone because you’re afraid of what another broker might do. Supply chain specialists need to stick together!

Have the Right Technology

If you don’t have a transportation management system (TMS), make it the top priority for 2022. It can increase visibility and savings by:

• Monitoring shipments
• Managing contracts
• Assessing carrier performance
• Optimizing routes
• Giving end-to-end visibility
• & more

Technology can also help automate aspects like reverse logistics, tracking incoming & outgoing goods, and repackaging. It will reduce the cost of workers and increase efficiency and accuracy. Find the right WMS and statistically you will reduce transportation costs by 30%!

Reward the Top Performers

If something is rewarded, it will be repeated. If vendors are performing well, your supply chain will be more fluid. Make sure to set expectations for vendors, and then track the performance frequently to ensure that goals are being met. Overall, this will increase performance, as well as improve customer service. It will also strengthen the relationship between you and them.

Finding opportunities for mutual growth won’t be possible unless you work together with the vendors. Having clear goals established & consistent analysis will increase loyalty and performance.

Stay In the Know

Of course, you are the best logistics manager on the planet! But it wouldn’t hurt to gain some insights from others. Look at other companies to see what their processes are. What are some improvements that they have made recently? What does it seem they are focusing on these days?

Reading articles from industry sources like Supply Chain Digital, or companies like C.H. Robinson will be very helpful. Joining a professional organization can also help with networking, and can present a lot of ideas for improvement as well.

Make a Plan

Make sure the plan you make encompasses all areas of the organization like manufacturing, sales, procurement, warehousing, etc. The logistics manager should be keeping in step with the overall company strategy so that sales & operations are on the same page.

The next step after planning is to make a backup plan. What will you do if the supply chain isn’t performing at its best? It could be a natural disaster, a pandemic, a strike, or any number of issues, and you need to be ready to keep things moving. It may help to have a specific person in charge of carrying out the emergency plan.

Do it Differently

Social responsibility may not be on page one of the sales plan, but it can be a differentiator. Environmental concerns, impact on the local community, business ethics, human rights, and safety, are all factors that can prove you truly are excellent in every area. If you want to make the most of your life as a logistics manager, finding ways to leave a positive legacy will yield positive results in the long run.

Food-grade storage and transportation can be a tricky maneuver. There are a lot of regulations to follow, and a lot of knowledge is necessary for what can be stored or transported together and what can’t. It’s also important to understand the exact temperatures that different kinds of fruits and vegetables should be stored at, as well as their humidity levels.  For instance, honeydew melons should be stored around 55-65° F, while citrus, passion fruit, and watermelon should be stored at 45-50 ° F.

The Do’s

All food-grade warehouses must register with the Food and Drug Administration (FDA) and have annual inspections. These evaluations are done by organizations like ASI Food Safety or the Safe Quality Food Institute. Food-grade warehouses also require a state food license, must follow the Food Safety Modernization Act (FSMA) guidelines, and have a Preventative Controls Qualified Individual (PCQI) to oversee the food safety plan.

The food safety plan must include Good Manufacturing Processes (GMPs) like:

• Hazard Analysis Critical Control Point (HACCP) Plan
• Sanitation and cleaning
• Preventative care
• Food security and defense plan
• Glass and clear plastic policies
• Safety of water supply
• Visitor Policy
• Customer complaint process
• Pest control

The Don’ts

Obviously if any of the above isn’t performed, the warehouse will lose its ability to store food. In addition, the food-grade warehouse must keep away from:

• Leaks of any kind
• Trash, or rodents within the building & perimeter
• Holes in windows or frames
• Cleaning products, pesticides, or chemicals near the general storage area
• Cross-contamination

Choose Wisely

Overall, finding the right food-grade warehouse can also present its challenges. There are a few keys to look for when choosing the right warehouse:

• Multiple temperature ranges
• Separation of materials
• How products are moved from truck to storage or vice versa
• Rejected items processes
• Temperature monitoring systems
• Visibility
• What does the WMS provide?
• Is transportation also included?

The three levels of supply chain management are strategic, tactical, and operational. These cover all the decisions that are made about the products or services that a company may offer. Every business needs to consider their supply chain operations on these three levels, as it will determine the quality delivered, the timeliness of the delivery, and the cost.

Strategic

Everything starts at the top because that’s where the vision & mission comes from. The choices made at the strategic level lay the groundwork for the rest of the supply chain. Senior management will make decisions about the products/services offered, product improvement or introduction, and the major reason for the existence of the company. It’s important to understand the current market and customers at this first level.

There may also be a need to acquire another company, or sell an existing company. From there, decisions will be made about manufacturing, choosing suppliers, etc. It’s important that these decisions agree with the overall vision of the company.

Tactical

Moving on from the big-picture choices, at the tactical level we see cost, efficiency, and quality come into play. What will be the manufacturing processes of the company? What are the customers demanding and how can we deliver? Do we need to outsource warehousing near ports like Chicago?

This level includes warehousing, transportation, distribution centers, inventory management, and other important logistical decisions. This is where companies like Amazon changed the game because their logistics & reverse logistics processes are seamless, and orders are fulfilled with extreme efficiency.

Operational

This level involves the day-to-day decisions. There is a need to plan for resources & capacity to ensure the business has the inventory necessary to carry on. This level also deals with the minutia of tending to damaged or lost goods, dealing with natural disasters or pandemics, and quality control. The decisions made at this level should be done in accordance with the strategic and tactical decisions that have been made.

Chicago businesses are feeling the effects of a pandemic that is still lingering. In construction, companies are limiting sales because of labor shortages and a lack of materials. In the food industry, Patrick Berger, the owner of the restaurant Kaiser Tiger in Chicago says, “people don’t understand why there is one server for fifteen tables.” In the retail industry, Gary Glenn, the co-owner of StichMine says, “We started with maybe one out of four or five orders where we’d have a back order, now, it’s every order.”

Visibility

The businesses of Chicago never could have seen these supply chain issues coming, but they could have been prepared. Bottlenecks at ports and the Suez Canal ship getting stuck is only part of the reason. Another major culprit of the supply chain issues is the lack of proper end-to-end visibility. If warehousing & transportation data isn’t readily available and clear, quick changes in response to backlogs won’t be possible. Visibility is the number one reason many suppliers and manufacturers were hit hard during the pandemic.

Storage

David Bouley, the President of OMEC says “We can be more prepared. We can require more reactive capacity in the network. We can seek out strategic partners poised to pivot and provide essential raw materials, parts, and equipment.” Having a strategic warehousing partner in the Chicagoland area can be an extreme help. Some Chicago businesses were proactive before the supply chain issues hit and they ordered way more product than they needed to try and compensate. If this is possible, it may be a viable option which outweighs the risks of being backordered during the holiday season.

The people of Chicago understand the current supply chain issues, but there are some CEOs who are kicking themselves for not having better visibility and a warehousing option for storage located in a key area. If you have questions about how Unibox Warehouse can help your supply chain visibility and storage become an asset, please reach out. Our warehouse is located just south of Chicago with easy access to 294, 57, & 80.

The nation’s current supply chain problems are continuing to wreak havoc. Research shows that 95% of restaurants across the US have suffered significant shortages. Most of these restaurants have been forced to change their menus and increase pricing as a result.

Currently, President Biden is working on alleviating some bottlenecks by negotiating for two major California ports to operate around the clock. On the other hand, there are also some ways businesses can improve supply chain processes on their own.

1. Outsourcing

Using a supply chain expert doesn’t have to mean losing control. Strategies should be put in place so that businesses can lower their resource costs, have greater efficiency, and utilize a greater form of expertise.

When a credible supply chain provider is used, it can greatly reduce the time and energy a general manager and other staff spends managing orders and claims. That way, those in a particular store can focus on more revenue increasing tasks.

2. Technology that puts customers first

While a positive customer experience must remain as the number one priority, cutting costs doesn’t have to take a back seat. With the right technology, visibility can be clear enough to give an accurate picture of all processes to supply chain decision makers.

This makes it easy to identify weaknesses and opportunities and make real-time decisions. Whether there is a need for warehouse storage, cross docking, transportation, or last mile delivery, the right supply chain experts can help restaurants and produce businesses save time & money.

3. Product placement

A key way to increase efficiency and eliminate shipping time is by aligning aspects of the supply chain according to geography. Shipping & storage with a close distance from the end destination will greatly reduce transit time and will ensure less difficulties if volume needs change.

Given the current driver shortage, and temperature-controlled capacities at a minimum, transportation alone is a major element of any supply chain. Having an LTL connection should be a part of any logistics strategy.

1. Pre & Post Distribution

These are the two processes of cross docking. During pre distribution, goods are unloaded, sorted, and prepared for distribution. All items should be identified and instructions given in this phase to decrease issues and provide a seamless process. Then the products are sent to the customer.

2. Increased Efficiency

Manufacturers & others can benefit because the material handling will be streamlined (labeling, weighing, destination scanning, loading & unloading etc.) Products are screened more quickly due to automation, which greatly decreases the transit time.

3. Cost Effective

Cross docking helps to replace traditional warehouses and requires less square footage, giving a fixed cost savings. Companies using a 3PL can benefit from using a dedicated cross dock warehouse, and they won’t need a large storage capacity themselves because they can outsource their storage as well.

4. Less Risk, Greater Reward

Inventory management risks are no longer an issue, and the freight is controlled and visible at all times. Using a cross dock is also helpful with protecting the environment because products that are destined for a similar destination can be loaded together, increasing the amount of full loads. This decreases the transportation costs as well as the cost of fuel because there are fewer miles traveled.

5. Usual and Unusual Loads

The major times to use a cross dock can vary from company to company. When there is stable demand for a product, a consistent schedule can be set up. Overall, setting up a consistent schedule can give the opportunity for analyzing the delivery/loading processes to create the most efficient system possible. Another instance where a cross dock is important is when time sensitive or perishable inventory is being shipped. One off shipments are also a great time to use crossdocking because of the cost effective manner in which an unusual customer may be reached.

Reverse logistics in its most simple form is about shipping goods from the consumer back to the retailer. The Amazon culture that we live in today has made it so that e-commerce orders can easily be returned with zero hassle. That’s why nearly 40% of orders are returned, making reverse logistics a huge part of any supply chain.

The Basics

Reverse logistics is when a product goes from the end user to a seller or manufacturer. This can happen for pieces to be refurbished or corrected and sent back, or the product(s) can simply be disposed of permanently. This requires a returns management process for all activities just like with outbound shipping.

This is where reverse supply chain management comes into play. It’s important to have strategies in place for outbound and inbound transportation beyond just manufacturing and the final sale. This can include warranties, repairs, value recovery, end-of-life recycling, replacement, reclamation, or any number of activities like this. Efficiency in this regard is just as important as the normal supply chain movement. Bottlenecks in reverse logistics can be equally as detrimental for a company and can easily be avoided.

The Intricacies

There are some companies that will have a closed-loop supply chain. These are companies that generate zero waste because all products are reused, recycled, or composted. This is common with car batteries or other automotive products. Repair shops will receive a financial incentive to turn in used products like an alternator, which helps eliminate waste and the product can be recycled or used later after being refurbished.

The goal of reverse logistics is to recover value, increase revenue and reduce expenses. Separating the traditional supply chain from the reverse supply chain can help increase the efficiency of both. The manufacturer often wants the end user to ship products back to them. This requires transportation, a shipping label, and visibility throughout the process just like a normal supply chain. A valuable 3PL will be prepared to offer these services to a customer in order to streamline the reverse logistics process.

The Strategy

Here are some simple steps to follow in order to create the greatest efficiency within a reverse logistics system:

• Collaborate with Suppliers
  This can make for a smooth experience as opposed to a system that has a lot of disjointed and moving parts in many ways.

• Evaluate Policies & Agreements
  Make sure policies are clear and easily managed by the end user. Returns for any reason need to be a seamless experience.

• Use Data to Optimize the Processes & Find Why Returns Occur
  collecting data for why returns happen, and the time it takes to get from point B to point A can help you understand the steps that need to be taken to improve.

• Track Products Forward & Backward
  Connecting and measuring all raw materials with the finished goods all the way to the customer can give valuable tracing in the event of a recall or any other issue.

• Centralize Returns To One Location
  This allows for better organization of products so that they can be sorted to identify the best next steps. If a separate warehouse or factory isn’t feasible then consider dedicating a portion of your warehouse or factory specifically for returns.

• Examine the Logistics & Transportation
  Regularly reviewing the processes for forward and reverse logistics and transportation can help streamline some of the process. As an example, even something as simple as having a delivery driver pick up empty pallets when they drop off full pallets can save time & money in the long run.

The Process & The Value

The reverse logistics process depends completely on the industry. Retailers may put entire pallets together and ship items to a liquidator. E-Commerce retailers often receive returned goods at a different facility with a cross dock for restocking or liquidation. Some manufacturers may receive returns for refurbishment to sell later.

The three aspects of reverse logistics are Return Policy and Procedure (RPP), Remanufacturing or Refurbishment (ROR) and Waste Disposal (WAD). If these processes are well maintained, it can greatly increase customer loyalty. Costs associated with administration, transportation, and unloading/reloading, can greatly be reduced and the amount of time can be reduced as well. There are also other facets to be delt with like packaging management, unsold goods, end of life items, delivery failure, rentals & leasing, and repairs/maintenance.

In any case, there is a lot of value in a company or a 3PL having connections with warehouses so they can increase productivity with the reverse logistics processes. With the rate of e-commerce spiking, there has been an increased interest in seeing how well transportation companies and retailers alike can perform when it comes to this subject. Especially when a worldwide pandemic is still looming, returns are an entirely different ballgame than the traditional supply chain. Make sure you’ve got a good system in place.

Setting Up A Successful Logistics Plan

Over 56% of companies say they have spent a “significant amount of time and resources” dedicated to improving their company’s supply chain. The supply chain includes transportation companies, shipping companies, receiving/storage, and management of each of these areas. If these areas are correctly managed it increases efficiency, sales, customer satisfaction, and more, all while decreasing costs.

With this in mind, here are some key ways someone can make sure they are on the right track.

1. Establish Your Goals

An effective logistics management strategy requires an extensive analysis of every part of the supply chain. Do you want a lean and efficient supply chain? Are your distribution centers in the best location? In a recent study done by Freight Waves, a majority of shipping companies said that their main supply chain goal is to locate a distribution warehouse closer to the consumer.

2. Have a Plan A and a Plan B

The less decisions that are made in the moment the better. Develop a flow chart of every aspect of the process. Find if there are any delays or areas that can be improved. Include aspects like the allocation of goods, storage, and final delivery.

There will come a time when your primary plan needs to be shifted a bit. When this happens, it’s good to be prepared. Operations may get delayed because of factors like inventory management. Visibility is highly valued in the industry, but there are times like today where bottlenecks occur because of product shortages. Logistics managers need to have an extensive network with which to obtain products or services in these cases.

3. Be the Right Logistics Manager

The right logistics manager has great interpersonal skills. They establish strong connections to develop a network of industry contacts. They need strong leadership skills and a good financial IQ. They also need to use the right technology to increase supply chain efficiency. Software today can measure a lot to improve the success of any logistics endeavor. It can track fleets, inventory, warehouse processes, and more! Centralized information and real-time feedback is really the main necessity for a logistics manager.

Reopening America: What that Means for Your Supply Chain

What a time to be alive! The White Sox & Cubs are both now at full capacity seating for the first time in over a year, and businesses are returning to whatever “normal” will be after COVID. It’s not all good news though. In the last year Chicago lost nearly 400 businesses, and several that have opened up aren’t experiencing the good fortune for which they had hoped.

According to the Wall Street Journal, one Chicago bike store’s sales are down 10% from last year as a direct result of “overloaded ports” causing delays in their ability to get supplies. Even Starbucks is experiencing supply shortages in the Chicago area. On top of that, beef & pork prices are on the rise, not only because of COVID but because of a cyber-attack on JBS, the largest meat processor in the country.

The CEO of The Dialogic Group said in an interview recently, “Current supply chains are in various states of improvement – but not at the pace of change needed to accommodate the integration of physical and digital retailing. Supply itself is challenged.”

Efficiency is Key

Things are changing faster than they ever have before. At this point, creating efficiencies has never been more important. Those who are looking for ways to increase the efficiencies of their supply chain need to do one of two things:

• Find ways to reduce the amount of time spent on tasks

It’s obvious, but it’s often neglected. Paperwork and tracking orders and submitting POs is extremely time consuming. Developing a good management process and having the right technology can help with automation to make the process more smooth.

• Improve Visibility

Finding new ways to do more with less is vital. Consumers are now very interested in where products are coming from and how they are being transported, and you should be as well. This is one more way to increase your value and decrease waste.

Sanitation & safety in the process is also more important than ever. The supply chain needs to be set up well to establish efficiencies, but visibility in this regard can also help locate and mitigate risks from a safety breakdown.

Adaptability & Collaboration

To accomplish these two keys to efficiency, adaptability will be important. As Chicago is experiencing, even positive expanding of a customer base can create issues in efficacy and end up costing your business money.

Collaborate with vendors who are offering warehousing, transportation, and technologies that are specifically designed for your business needs. Make sure they specialized in visibility, and you can even grow from their knowledge and experience to overcome, say, a worldwide pandemic.