UPS announced this week that it is the first to receive the official nod from the Federal Aviation Administration (FAA) to operate a full “drone airline,” which will allow it to expand its current small drone delivery service pilots into a country-wide network. Obviously, it’s a huge win for UPS Flight Forward, which is the dedicated UPS subsidiary the company announced it had formed earlier this year to focus entirely on building out the company’s drone delivery business. There’s still a lot left to do before you can expect UPS drones to be a regular fixture, or even at all visible in the lives of the average American.

Times are indeed evolving, especially around transport & logistics management. Technology is disrupting the supply chain industry at a rapid pace and has taken many by surprise. During this decade, e-commerce and IoT have irreversibly altered every aspect of logistics management. To remain successful, supply chain managers are increasing their adoption of cloud and technology platforms and applications. Innovative technologies, such as blockchain and machine learning, are being implemented today with the potential of significantly reshaping existing supply chain operating models. By 2023, at least 50% of large global companies will be using AI, advanced analytics and IoT in supply chain operations. That same year, over 30% of operational warehouse workers will be supplemented, not replaced, by collaborative robots. In the digital transformation age, logistics is once again undergoing a major shift. Logistics technologies, such as robotic warehouse systems, make automation a reality, while drones improve last-mile delivery capabilities and better tracking with tools like RFID tags, which improve visibility throughout the supply chain.

These technologies also contribute to a rise in big data and analytics in the logistics field. RFID tags and robotic warehouse systems generate and transmit data that, when combined with other data sources, allow companies to optimize the supply chain and make better predictions and forecasts to improve efficiency and boost the bottom line.

A Tech Powered Competitive Edge

In 2019 alone, an estimated 60% of millennials’ purchases were made online, up from 47% two years ago. Retailers are increasingly catering to this new target group and shifting their approach to accommodate the unprecedented demand for a seamless, tech-powered e-commerce experience. Amazon’s continued success is proving that millennials aren’t as impressed by store brands or prices as much as by the speed, cost, and convenience of delivery. In order to meet the demands of this growing group of consumers with significant spending power, the supply chain industry has to adapt to meet their buying behavior. In order to meet the demands of millennials for fast, convenient, and transparent e-commerce deliveries, supply chain managers are increasingly leveraging location intelligence and location data to raise visibility throughout their whole logistics process and to optimize their delivery routes. Real-time location tracking and real-time traffic updates are proving to be crucial for matching the one-day delivery expectations set by Amazon. Such technology allows retailers and logistics companies to seamlessly and reliably share data back and forth, to meet ETAs and improve the customer experience. Real-time, data-driven decision making, improved driver efficiency, optimized fleet performance, increased supply chain visibility, precise vehicle tracking, lower operational and insurance costs are just some of the benefits of implementing the right technology application.

Tech Implementation Tips

Introducing new technology into an organization can be daunting, particularly if it disrupts everyday practices or decommissions tools that employees are comfortable with. Tech-savvy supply chain managers, who want to avoid common missteps like employee pushback or loss of service when integrating new technology, may find the following tips helpful.

1. Collaborate with IT, but lead the charge
While IT managers are the ones who will carry out the technology integration, it is the supply chain managers who should own the implementation process. Asking IT to manage the process from start to finish might seem like the easier and cleaner approach, but supply chain managers should be involved in the process to ensure applications and APIs are being utilized to fully meet their needs.

2. Provide education and training
Any successful technological implementation requires employee buy-in, so they understand why it is required, what it does, how it works, and the impact it will have on their job. Employee resistance to change is the most common factor in failed business transformations. To avoid this conflict, supply chain managers are advised to embrace transparency and keep an ‘open-door’ policy.

3. Request feedback
When rolling out new processes, supply chain managers shouldn’t forget to ask staff members for continuous feedback. With an open-feedback policy, managers can stay on top of how changes are being received, the impact of the changes on team morale, and collect suggestions on how to improve the newly implemented process.

Determining the correct technology is merely the first step and can become unhinged if the implementation process is not properly executed. Clearly identify and define the specific goals of the technology application. During the entire implementation process it is vital to ensure collaboration between logistics personnel and the technology team to maintain focus on the original goals. If not kept on track the technology team may wander. To find out more about how technology can improve your operations contact us today.

The aggressive progression to everything mobile has been obvious. The Smart Phone opened an opportunistic Pandora's Box that will never close again. Today, mobility is king. "Several key trends are driving mobility investments that support supply chain operations, and more specifically, in-field fleet/transportation,” says David Krebs, VDC Research’s executive vice president of enterprise mobility and connected devices. “These include the ELD mandate that came into effect in December 2017 (with a final deadline is December 16, 2019) and the transition by many operators from the legacy Windows-powered mobile device to Android.”

Today's consumers are a far from fickle bunch. They know what they want, and moreover, they want it fast. Sometimes I wonder if they really need it that fast or is it simply the mindset of the new generation of consumer. In an extensive career in the expedited freight market I was surprised to find how many receivers were not in a hurry at all for the product that their suppliers spent triple the money to ship expedited. In fact, I rented a box truck and personally delivered a few skids to a major account after an unavoidable traffic accident sidelined the original truck. After a 5-hour white knuckle drive, I was told it would be a couple hours until they could unload me. Turned out, they were in no hurry at all. The takeaway from all this personal wisdom is to be certain of the consignees' requirements before panicking about production delays and transit times. When you’re sick you call a doctor, in a legal matter you consult a lawyer. The same expertise is just as beneficial when managing your supply chain. If you do not currently have a relationship with a 3PL, think about starting one. It's a tremendous resource, particularly in a time of need. If you do have a current 3PL relationship, here are some tips to make the best of that relationship.

Think Long-Term Commitment

Like in all relationships, when an organization and its 3PL both have committed to mutual success, challenges can be overcome and the relationship can blossom. Service failures are part of our business. When you consider the vast amount of freight that travels thousands of miles across this country every week one must expect it can’t all go right. The true measure of 3PL customer service is how we react to service failures. There are fire alarms daily. A short-term mindset only creates short-term solutions. Your 3PL is invested in the long-term success of your logistics operation, so you should be too. Work together to devise long-term strategies that will improve practices and result in mutual success.

KPI's; A Staple At Land Link Traffic Systems

Many years ago, the founder of Land-Link Traffic Systems Inc. stressed the following. “What does not get measured, does not get fixed”. It would be difficult, if not impossible, for any rational person to repudiate this thought-provoking statement and important underlying principle of business. Yet, many companies do just that. Most companies, in fact, do not have the proper measurements and KPIs in place necessary to drive intelligent business decisions and to serve as support to the policies that are relied upon to drive day to day business activities.

Do not be one of those companies! Land-Link can help you support your business and gain and maintain competitive advantage through effective performance measurements. 

President Trump's strategy regarding the Chinese tariffs has been to right a long time wrong. Again, this was a significant aspect of his presidential campaign. The position, which arguably has merit, may come at a substantial cost to the U.S. economy. The theft and mistreatment of intellectual property, a potential monopoly around 5G cellular technology, and the knock-off market of some very high-end consumer goods have had a major impact. It's a difficult pill to swallow, but until now no political official has been willing to tackle the issue. What remains to be seen is how far Trump will take this battle and how much collateral damage will result. The initial collateral damage is in the lane imbalance of exports vs. imports. In an ideal world, transportation providers would like to see a balance of full containers going and coming to whichever port to reposition assets to meet demand. The trade war is expected to have a detrimental effect on this sensitive balance, specifically regarding U.S. exports. The imbalance of shipping containers is but a symptom of misaligned supply and demand caused by the ongoing trade skirmishes. But it is also an indicator of real impact on the supply chain.

Cargo theft is the primary concern of shippers and logistics professionals over any national holiday weekend. Holiday weekends pose a higher threat because truckers will park their trucks, and warehouses will be shut for an extended period of time. Millions of dollars are lost, production schedules disrupted, and customers disappointed over the long holiday stretch.

Before it was referred to as "Logistics", it was simply trucking. Rail, air and specialty transportation was a rarity. It was operationally simple and customers expectations were basic in terms of service. The world got itself in a great big hurry over the last 30 years. I suppose it was all started by the auto manufacturers when they introduced the "Just in Time" inventory system in the 90's. Manufacturers saved on inventory costs by using trucks as rolling warehouses. Thus was born the concept of time critical transportation. The idea eventually caught on with other manufacturing segments and it seems today everyone is in a rush for everything. Let's take a look at what we can expect the logistics business to look like in the next decade.

Data Engineering

Data engineering will be at the forefront of everything that goes on in supply chains. Data engineering, according to Dr. Michael Watson of Northwestern University, is "the art and science of blending data from multiple sources, automatically cleaning and filtering the data, and transforming the data to be useful for analysis." You may have heard the term "Big Data", referring to the volumes of pertinent data accumulated from various sources along the supply chain. This "Big Data" will be the source of information in the data engineering process. Another term you've likely heard is IoT or The Internet of Things. The IoT is the network of physical devices, vehicles, home appliances and other items embedded with advanced electronics capable of exchanging data with a central computer over the internet.

"Big Data" and logistics are made for each other. Companies are often sitting on masses of under-utilized data that could aid them in a number of ways.

Some of the current applications of Data Science by data-driven businesses within the industry include:

• Reducing freight costs through delivery path optimization
• Dynamic price matching of supply to demand
• Warehouse optimization
• Forecasting demand
• Estimating total delivery times
• Extending the life of assets through finding patterns in usage data — identifying the need for maintenance

The Truck of the Future

In business, a trend can refer to a business model, a process or a technology. However, a trend will only be of more than passing interest if it could directly impact your business and people. We'll look at 4 emerging trends.

There is a rumbling of a possible recession in the logistics industry lately. The red-hot freight market is slowing and that has some economists concerned. The freight industry is an accurate measurement of national manufacturing strength. Generally speaking, if something is manufactured it needs to be shipped somewhere. A slowdown in freight transportation may suggest a reduction in manufacturing which is a key component of GNP. Truck, rail and air freight volumes fell 5.3% in June from the same period a year ago, the seventh straight annual decline, according to the closely watched Cass Freight Index. That followed a 6% drop in May.  

Any conversation regarding the labor shortage in the trucking industry tends to gravitate towards the driver shortage. In conversations with owners and operations managers, the need for skilled labor is much more involved. Along with the less than glamorous truck driving career is the supporting rolls of diesel mechanic and miscellaneous support staff functions such as forklift maintenance and facilities management. For those who have never spent much time in a warehouse or dock area, it’s a dirty environment wreaking of propane. If the lure of the currently handsome salary of a trucking career won't attract young talent, the opportunity of support staff is a greater challenge.

So, here is yet another challenge for the facilities management staff. Keeping the assets in safe and operational readiness. The U.S. Bureau of Labor Statistics (BLS) says fewer workers are entering vocational education programs as Baby Boomers age and retire. When it comes to diesel service technicians and mechanics, the Bureau reports, the field is projected to grow by 12 percent from 2014 to 2024, faster than the average for all occupations. The BLS also said 67,000 technicians will be needed to replace retired workers, and 75,000 new mechanics must be added to meet additional demand by 2022. For many years, there’s been a societal push that stresses "without a college degree, you won’t have a career." Jennifer Maher, CEO at TechForce Foundation, an organization that raises youth awareness around technician careers, agreed that it’s an issue even for students who are interested in the trades.

Next-Gen Truck Maintenance

The industry shortage of diesel mechanics and nearly dry bowl of prospective recruits begs the obvious question. Who will service the existing fleet of commercial trucks not to mention the next- gen commercial vehicles? The transition should be interesting to say the least. There is no interest in the old technology but maybe some saving grace in the new. Still, the idea of young men and women getting their hands dirty for a living doesn't seem appealing to today's young career seekers. The maintenance of the fleet of these vehicles has morphed from turning a wrench on a single vehicle to tuning fleets online.

Technology Will Not Slow Down

"As the mechanics and technicians for the trucking industry, we can’t either,” explained Tom Wiers, chief executive officer of Wiers Fleet Partners. “We are up to the challenge and know the trucking industry will be forever evolving and our mechanics, technicians and drivers will always have a role in developing the entire trucking world. The advanced technology will also require specialized services and technicians who will be required to have an advanced knowledge revolving around autonomous tech.”

Moreover, there will continue to be a need for maintenance and service from teams like Wiers Fleet Partners as this technology advances. Items like tire blowouts, oil changes, drivetrain issues and more will still need to be addressed routinely. Additionally, these teams will have to embrace the change in technology and acquire new knowledge as autonomous truck fleets become a reality

Align Yourself With Asset Providers Who Have Done the Proper Vetting

The shackles of doing business in the trucking business in today's environment are challenging. Indeed, only the strong will survive in the coming years. The trucking industry is an intensively capital-intensive market in which to compete. Aligning your company with some established industry professionals ins a critical strategy in times of tight capacity and fluctuating pricing. It's times like these to look for the counsel of the logistic professionals from Land Link Traffic Services. We'd love to meet with you.