Blog Category: Logistics & Supply Chain

Introduction

To say 2020-2022 was a challenging year for the supply chain industry is one of the biggest understatements of the decade. The aftermath of COVID-19 can still be seen across global supply chains. The pandemic clearly showed the importance of having a solid foundation and bonded logistics in place. A solid infrastructure and reliable tech stacks founded on the latest digitization and automation can make all the difference. This is especially true when faced with disruptions and obstacles.

According to K.P.M.G. (z.d.), in Europe, the rise of e-commerce is pressuring retailers, manufacturers, transport, warehouse, and logistics companies to fulfill and deliver fast, in total, and meet high expectations for order status, supply chain visibility, enhanced service, and return logistics. A trend that has risen within the industry is related to a shift in customer demands. 

To reinforce delivery assurance and supply chain resilience, customers (both B2B and B2C) now require end-to-end networks to hold more transparency, embrace  omni logistics,  focus on bonded logistics, and increase their visibility. All of this can help improve supply chain performance.

Greater visibility requires stakeholders in the chain to have the same visibility to decrease disruption while monitoring for new ways to implement improvements. The key takeaway is that shippers and carriers now require their physical and digital workflows to be more synchronized. The emphasis on greater visibility and transparency is at the heart of  supply chain optimization. It all can be achieved through digitization and automation of e-commerce platforms and processes.

Digitalizing your Supply Chain

With technology growing faster than ever,  supply chain optimization is critical for ongoing success and recovery. Managers and business owners alike need to incorporate the most advanced technological processes to reinforce the resilience of their supply chain networks. Digitalization of e-commerce solutions can be achieved in many ways. 

First things first, what exactly does it mean to have good supply chain operations and planning?

According to Team D.F. (2021), Supply chain digitization (or digital transformation) is the process of turning analog processes into digital ones by establishing dedicated master data. 

By doing so, it allows aggregate information from across your entire supply chain, as well as information from some external sources to be compiled. This can include internal historical sales data, point-of-sale consumer data, socioeconomic data such as unemployment rates, and external data from outside sources. 

Overall, the process is most commonly achieved through the use of dedicated software and a focus on  omni logistics and  supply chain optimization through digitalization and automation. The tightrope of balancing supply and demand is easier with the right processes in place.

Supply Chain Advantages Seen Today

The advantages of shipping and distribution innovation and integration are far-reaching and include the following:

• Synchronization – Digital processes are far easier to connect. This makes the entire process, whatever process it is, react much more smoothly. Analog methods are complicated to align correctly but working with bonded logistics services and automated processes streamline the entire process.
• Time-saving/Efficiency – Digital supply chain processes are far more efficient, thus saving valuable time. Automatic inventory and CRM processes, for instance, can save ample time when executed correctly. Omni logistics make this all the easier to implement and maintain. 
• Decision-making advantages – Having better control of your digital data allows you to leverage your position when going into a new decision-making process. This aspect of supply chain optimization should never be underestimated as it allows for a much better negotiation position.

Implementing Automation 

The next Trend expected to continue in 2022 is the increasing usage of Automation. Again, the increase of viable technological advancements also results in manual process to be automated. This can be easily seen through the increasing usage of AGV (Automated Guided Vehicles) that allow for immense efficiency increases in warehouses. Daunting manual labor that can be Automated (e.g., Packaging) should be automated as fast as possible as strong efficiency increases are easily seen when done so accordingly. According to Vanner (2022),

Benefits of Improving Supply Chain Processes

The benefits of implementing integrated systems and advancing supply chain processes with updated tech include:

• The Automation of manual tasks – Automating daunting manual labor yields the highest efficiency boosts as these tasks usually allow for substantial process time deductions.
• Increasing Transparency and Visibility – Self-managing tasks usually come with the innate ability to capture and share data from supply chain design and processes that have been automated. 
• Flexibility and Adaptation – Streamlined, automated inventory management software will enable companies to increase their control by automatically ordering raw materials/inventory when inventory levels fall below a set percentage.

Tap Into the Latest Trends and Unlock Benefits With ModusLink

With a keen eye on the latest in innovation and partnerships with bonded logistics providers,   supply chain optimization can be easier than many have ever thought possible. Supply chain managers and shipping service providers can utilize the power of omni logistics and integrated technology to improve services for cross-border supply chain networks.

Would you like to know more about the latest automation and digitalization developments for supply chains and how they can help you meet and exceed customer expectations? Talk to a ModusLink expert today to learn more.

Bibliography

Bendis, M. (2022, 17 mei). Industry 4.0: the digital supply chain. EasyStock. Geraadpleegd op 20 mei 2022, van https://www.eazystock.com/uk/blog-uk/digital-supply-chain-digitization/

K.P.M.G. (z.d.). Five supply chain trends to follow in 2022. Zetes. Geraadpleegd op 19 mei 2022, van https://www.zetes.com/en/supply-chain-visibility/supply-chain-visibility-software/five-supply-chain-trends-to-follow-in-2022.

Team, D. F. (2021, 19 augustus). What Is Supply Chain Digitization, and Why Does It Matter? DDC Freight Process Outsourcing. Geraadpleegd op 19 mei 2022, van https://www.ddcfpo.com/freight-process-insights/what-is-supply-chain-digitization-and-why-does-it-matter

Vanner, C. (2022a, februari 7). Supply Chain Automation: What is it and How Can it Benefit Me? Bizagi Site. Geraadpleegd op 20 mei 2022, van https://www.bizagi.com/en/blog/supply-chain-automation-what-is-it-how-can-it-benefit-me

Vanner, C. (2022b, februari 7). Supply Chain Automation: What is it and How Can it Benefit Me? Bizagi Site. Geraadpleegd op 20 mei 2022, van https://www.bizagi.com/en/blog/supply-chain-automation-what-is-it-how-can-it-benefit-me.

Short term – Long term

The importance of fulfillment as a service and site supply logistic management is widely known in the corporate world.  This is true for shippers, carriers, and any packaging and distribution resource management teams.

For those dealing with cross-border logistics and shipping these concerns are even more critical. Issues such as reliable site supply, packaging and distribution management, and customer retention all directly impact logistics companies and their partners. Also, poor fulfillment management can lead to fulfillment costs comprising as much as 20% of net revenue, reports Forbes, up from 5-10% today.

Choosing a fulfillment partner that is up to the challenge can save transportation service providers a lot of time and money by avoiding potential problems in the future. It is important to keep in mind that the partnership may last a significant amount of time. 

So short and long-term needs for shipping services with digitization and automation must be addressed.

This means that sometimes, the long-term element must be prioritized over the short-term elements. Everything from packaging and distribution to third-party collaborations needs to be carefully considered when choosing a partner within the logistics industry.

5 Key Elements to look out for

In this article, logistics companies will learn about the five most important aspects to look out for when choosing a fulfillment partner for on-site supply, order fulfillment, and logistics. They are as follows:

Experience and Reputation

When management teams choose an inexperienced provider that’s new to the industry, they run the risk of delivering a poor brand experience to customers. The impression on the end customer is often directly related to fulfillment performance.  

This increases the need to partner with a well-established, reputable company that is experienced in  site supply logistics and fulfillment. Even the largest logistics companies today rely on a team of experienced fulfillment partners and outside parties to get the job done.

It is vital to conduct business with a company that has years of proven experience and staff that is trained and knowledgeable in all areas of the business and supply chain management. 

Business owners and logistics companies in North America and other regions as well often look for partners with a similar business model and approach to business. This way all involved parties will have direct feedback that enables faster and more accurate decision-making.

Lastly, meeting the  packaging and distribution and fulfillment partner in person might reinforce the relationship which could lead to potentially increased problem-solving in the future. Don’t disregard your company’s reputation in favor of price and make sure they are professional and reliable before you choose them as a partner. 

Navigating the changing landscape of e-commerce and current market trends requires reliable coordination and collaboration at all times. 

Seamless Integration

This element of  site supply logistics management makes the initial set-up process much easier. Set-up should not be a hassle and should not be the most dreaded part of the onboarding and integration process. 

An experienced professional fulfillment partner usually has all types of integrations available that make your life easier.  Third party logistics can help keep things running smoothly day in and day out.

They sometimes offer real-time views of transport, inventory management, warehousing, etc. Make sure to discuss this topic thoroughly before establishing your partnership to avoid the rise of potential issues in the future. 

When reviewing the integration possibilities, consider aspects such as omnichannel integration (price/delivery/transport/warehousing), CRM/ERP platform integration, automated email communications, real-time packaging and distribution, etc. It is well worth the effort to find  logistics companies  that offer these sorts of solutions and services.

Reverse Logistics and Performance

Fulfillment service providers, like  logistics companies and other shipping service providers, can also offer the option to handle the complete returns process. Known as reverse logistics, this is the backward flow of inventory and shipments. It can significantly complicate supply lines and make life harder for logistics managers and business owners. 

Working with a partner experienced in reverse logistics and performance can save time and money. 

Reverse logistics is vital for successful shipping logistics and packaging and distribution. It should always be considered due to the high brand impact potential. This is especially true of cross-border e-commerce and shipping where returns could potentially cost more than the initial shipment.

Make sure to review the performance metrics of logistics companies and partners to ensure there are no nasty surprises down the road and that everyone involved knows what to expect. Also, make sure to consider switching your current service provider and partner if there is a better option available that can save you time and money.

Warehouse Locations

We currently live in an era that follows the golden rule of ‘the faster the better’. Of course, this is not always true, however, customers do expect their shipments to be delivered to them as fast as possible. 7+ days for delivery times are usually not acceptable anymore for site supply logistic services. 

The average delivery time within Europe is around 2-3 days. Experienced fulfillment partners sometimes even offer same-day delivery, depending on your business model. Regardless, it is important to have knowledge of the fulfillment partners’ infrastructure. 

Knowing where their warehouses are located and even knowing traffic routes might validate the claims of delivery performance.  It will significantly improve packaging and distribution, and boost the services and logistics solutions offered.

Working with shippers, carriers, customs brokerage companies, and logistics managers is vital to ongoing growth and recovery today. It ensures everyone knows what their responsibilities are and that everyone stays on the same page with   site supply logistics management.

Brand Reinforcement

The final point to consider when choosing a fulfillment partner for the modern-day service provider is the reliability and reputation of the logistics companies. It is often the small things that make a difference. 

Customization is an important element that should be considered when choosing a fulfillment partner.  Providing the customer with a strong personal brand experience can have highly positive impacts on customer retention and continuous purchases. 

Allowing managers and team members to use custom packaging options may make a difference for M-commerce businesses. It can also provide a competitive advantage by providing customers with the brand experience they seek. 

These five key elements should be kept in mind when considering a fulfillment partner to outsource your shipping and transportation services. Expert insight makes every step of the process, from site supply management,  packaging and distribution tracking, and customer service simpler and easier.  Whether you are dealing with truckload, ocean, rail, or air freight, improved logistics management and distribution will improve processes from start to finish.

Finding the best logistics companies can make all the difference! Would you like to know more about how to choose the correct fulfillment partner?  We have many services, including customized options that can meet all of your needs. Talk to a ModusLink Expert today to get started!

Bibliography

Prozan, Esther Kestenbaum (2022, May 21) Fulfillment Is At The Epicenter of E-Commerce Enablement Accessed October 19, 2022 From https://www.forbes.com/sites/forbesbusinesscouncil/2021/05/21/fulfillment-is-at-the-epicenter-of-e-commerce-enablement/?sh=2550fbb56113

Busby, A. (2019, 24 oktober). Fulfillment As A Service, Why The Future Of Delivery Is In The Clouds. Forbes. Geraadpleegd op 26 februari 2022, van https://www.forbes.com/sites/andrewbusby/2019/10/23/fulfillment-as-a-service-why-the-future-of-delivery-is-in-the-cloud/?sh=6b83309d4af1

business.com editorial staff. (2014, 25 juni). Benefits of Using an Order Fulfillment Service. Business.Com. Geraadpleegd op 2 maart 2022, van https://www.business.com/articles/benefits-of-using-an-order-fulfillment-service/

Roggio, A. (2011, 4 november). 5 Reasons to Consider Fulfillment Services. Practical Ecommerce. Geraadpleegd op 5 maart 2022, van https://www.practicalecommerce.com/5-Reasons-to-Consider-Fulfillment-Services

Thill Inc. (2021, 21 oktober). Fulfillment Center Pros & Cons. Thill Inc. Geraadpleegd op 5 maart 2022, van https://thillinc.com/blog/fulfillment-center-pros-cons/

3Pl, L. (z.d.).  7 tips for choosing a fulfillment partner. Logicos. Geraadpleegd op 5 maart 2022, van https://www.logicos3pl.com/en/blog/tips-for-choosing-a-fulfillment-partner

Lab, T. F. (z.d.). 8 Essentials When Choosing a Fulfillment Company + 8 Best Companies for 2021. Thefulfillmentlab. Geraadpleegd op 7 maart 2022, van https://www.thefulfillmentlab.com/blog/choosing-fulfillment-company

Roggio, A. (2011, 4 november). 5 Reasons to Consider Fulfillment Services. Practical Ecommerce. Geraadpleegd op 5 maart 2022, van https://www.practicalecommerce.com/5-Reasons-to-Consider-Fulfillment-Services

The supply chain network today has been under more pressure than ever before, and it is not just COVID-related disruptions impacting every aspect of shipping and legacy logistics. Supply chain management is a complex and often confusing process that requires careful planning and monitoring of the network. The importance of digitization and automation today cannot be underestimated.

According to a 2019 review from The International Journal of Product Research “supply chains are operating under an ever-changing environment and are vulnerable to a myriad of risks at all levels. This environment is an ever-changing landscape because of many factors. Many supply chains extend over wide geographical areas and are vulnerable to global risks. 

Customers are increasingly demanding in terms of product customization, price, and level of service.” Improving, supply chain optimization and updating routine processes and procedures are critical to maintaining a competitive advantage today.

Added to this is the increasing complexity of goods and products, making it more time-consuming to package, handle, and ship popular items. The rapid technological changes, the continuous introduction of new products, the changing service provided by logistics providers, and shifting market demands keep the supply chain under pressure. 

And on top of all that, changing climates- weather and global conflicts- puts global supply chains under increasing pressure. Warehouse automation, delivery tracking, and digital shipping services help to offset these sorts of obstacles for shippers, M-commerce managers, and transportation service providers.

The fastest and most effective way to combat this is to improve tracking and monitoring services with innovative tech and tools. Many of the electric devices/sensors that are applied to intelligent packaging use the global interconnected network. 

The concept of IoT (internet of things) within warehouse operations and shipping logistics is quite complex. It is aimed at providing global corresponding network infrastructure and improved supply chain optimization for connecting objects to the cyber-physical world.

The utilization of IoT tools (Internet of Things)

Many of the electric devices/sensors that are applied to smart packaging use the global interconnected network called the Internet of Things. The concept of IoT (internet of things) is aimed at providing a global interconnected network infrastructure for connecting objects to the cyber- physical world. It enables companies to track and trace their products which are equipped with sensors devices (Cheung, 2018).

IoT Tools- A Logistics Providers’ Friend

The main IoT tools are elaborated upon below.

RFID (radio-frequency identification): is an electronic sensor and data collecting system using RF signals located on packages to monitor critical parameters such as temperatures, pressure, and vibration which captures and communicates data about how the products are moving along the supply chain and enable organizations to track and trace the product during its journey from manufacturer to customers (Cheung, 2018). The use of smartphones to increase the supply chain visibility and anytime access by using available handled devices is quickly standardizing for companies’ solutions. The technology is optimal to track products that are in transit (Fedex, 2020).

Traditionally, inventory counts were a complex exercise done manually about once a year but RFDI technology enables retailers such as Macy’s to monitor stock monthly bringing accuracy from 60% to over 90%. Macy’s reported that it experienced 2-3% inventory inaccuracy per month which is 24% annually but by implementing RFID solutions it minimized out-of-stock situations, provides real-time merchandise location data and allows to track their inventory throughout the retail supply chain (Bianchi, 2017).

This is non-contact near-field communication technology. NFC reader is a tool that can be integrated into the warehouse management picking verification system. The benefits of using such technology are widespread for customers, retailers, shippers, and logistics providers. Its ability to sync with smartphones and mobile devices helps improve delivery.  NFC enabled devices are increasingly popular in today’s shipping lanes.

Enhanced  supply chain optimization allows faster communications, automated updates, and push notifications to be sent in real-time between fulfillment partners and e-business owners. Furthermore, it helps eliminate the paperwork and provides information about the inside of the package. This can include the location of the product inside the warehouse, the description of the item, and the number of items inside the warehouse.

Customers who have an NFC chip or NFC tag enable phones to read information from the NFC on the label with additional information about the product and find out if the bottle was in some way misused. It also allows the company to track the product during the whole supply chain, storage, and opening times (Vasić, 2018).

Barcode label:

Plenty of processes involved in shipping and logistics today rely on administrative documentation and  legacy logistic basics. Using these barcodes and rack labels save a lot of time for the different employees and managers involved in the process. 

The packing and picking process is simplified as they only need to scan the barcode and receive all the required information about a given product instantly. The barcode label also benefits in managing inventory by tracking the exact location and movements of products. They can even make inventory management easier in the long run.

This applies to whether the movement is in or out of the warehouse facility. All this improved tracking helps to eliminate delays and errors. Barcode labels are usually called the foundation of automated warehouses. It was the first data tracking technology and referred to one-dimensional data, meaning that they can only hold information in the horizontal dimension. 

They provide several crucial benefits such as inventory tracking, arrival planning, and improved picking efficiency. Areas such as traffic optimization decreased human data entry errors, and reduced out-of-stock situations also see great improvement (Jules, 2020).

Figure 1Vasić, Đ. &. (2018). NFC Technology and Augmented Reality in Smart Packaging.

The table above compares the different CRM technological devices in terms of speed, scalability, devices needed, sensing distance, and error rate. It is obvious that compared to the verification systems, the manual work is slower, and error rates are high, giving more work for logistics providers (Vasić, 2018). A strong supply chain management software platform can make all the difference in the world!

Improve Shipping Tracking and Delivery With a  Strong Logistics Provider

All the different devices result in advantages for supply chains through the use of IoT tools and help companies in their daily operations. From e-commerce websites to handheld devices to remote networking and logistics, every step of the process can be improved with the right logistical approach.  

Although the initial cost concerning new sensor technologies is high, the inherent opportunities incentivize companies to invest in the integration of IoT.  Whether it is barcode automation, NFC forum platforms, or RFID tools, innovations are helping companies offer better shipping options for their customers. The e-commerce challenges facing companies today are only going to intensify as demand continues to grow.

Having a strong and reliable supply chain management SCM in place can help shippers, retailers, and customers reap the benefits of digitalization. Would you like to know more about how ModusLink can implement IoT tools when managing logistics providers and see how easy it can be to improve  supply chain optimization? If so, then contact ModusLink today to get started!

Bibliography

Bahron, Zied and Ben-Daya, Mohamed (2022 November) Internet of things and supply chain management: a literature review Accessed October 18, 2022 From https://www.researchgate.net/publication/321131587_Internet_of_things_and_supply_chain_management_a_literature_review

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vaccines. World Health Organization.

Introduction –

Of all the systems involved in shipping and transportation services today, automated processes for delivery and logistics remain among the most critical. Looking at the future of shipping service providers as well as the future of drones is a fascinating aspect of the modern supply chain network. It all comes down to digitalization and automation. 

The evidence of the increasing popularity of supply chain automation is pushing companies to research even more performant alternatives that will keep boosting the efficiency of robots inside supply chains. The many benefits that come with omnichannel logistics and automation are the reason why new and higher productive technologies are surging among high-tech drone companies.

According to the experts at Supply Chain Digital, “The potential for drones as powerful business tools is huge. For supply chains, drones can be used in warehouses to increase the accuracy and efficiency of inventory management through to last-mile delivery.” Big companies around the world have started to integrate drones into their supply chain over the past years to help manage their inventory. 

The drones are designed to assist human workers indoors and benefit large organizations with stationary stock. Companies that deal with a large amount of inventory often find omnichannel logistics challenging when it comes to locating items inside the warehouse.

Therefore, aerial inventory drones can benefit many prominent organizations in finding the right items inside the warehouse and cutting their inventory carrying costs. The drones have sensors, scanners, and cameras to monitor and track inventory visibility and availability. 

The aim of integrating this automated drone technology with delivery and logistics is mainly a concern with accuracy as drones should be more efficient and precise than humans. Additionally, camera drones can verify e-commerce deliveries and other milestones in real time without waiting for human intervention.

So far, implementing drones into supply chains has been great, and drones are becoming quite popular. This is largely due to their capability of flying around, avoiding obstacles, navigating indoors, and operate in fleets with direct distribution (Dronevideos.com, 2018). The collection of aerial data and navigational insight also helps boost the popularity of drones today. 

Benefits of Drones- Delivery and Logistics

Several benefits can be identified while using indoor drones. First, the human workforce will potentially hold fewer hazardous tasks, and no ladder climbing or dangerous inspections anymore. There is a fast return on investment due to the manageable acquisition cost of hardware associated with this type of omnichannel logistics.

Secondly, the reliable/stable software can enable fully autonomous indoor navigation and automatically scan barcodes. Despite these promising positive effects that drones bring to a warehouse, many negative side effects regarding e-commerce solutions must be overcome. These include issues, such as inventory service costs and warehouse space management concerns, and more..

Limitations of Drones for Logistics

The limited flying area and the many obstacles inside the warehouse make the process complex. Furthermore, integrating the drones into the existing process makes it time-consuming and sometimes unsafe due to potential drones failures such as battery explosions. The maintenance and reparation costs also take into consideration resulting in some delays or downturns. 

Analysis of direct distribution with drones has also shown that automated systems often suffer from the “garbage in,” and “garbage out” issues. When inventory gets lost, drones cannot prevent it, identify it, or resolve it. Despite all the benefits that drones can bring, a few adjustments still need to be studied, analyzed, and fixed to enjoy and operate the drones inside omnichannel logistics and automated supply chains fully.

Furthermore, the future might worry workers as they feel targeted and soon stand the risk of being replaced by more efficient and accurate drones (Maghazei, 2019). On the contrary, drones could also be an opportunity for workers to be trained and taught about new systems. They must know how to manage/supervise these drones and receive more specific assignments related to delivery and logistics. This will merely shift the work dynamic and prevent job loss and turnover within the global supply chain.

Limitations of Drones for Logistics

What the Future Holds for Omnichannel Logistics With Drones

Nowadays, automated supply chains are revolutionizing and reshaping the fulfillment process. The number of drones integrated inside warehouses into daily operations is booming. In general, technologies such as barcode labels, automated guided vehicles, automated storage and retrieval, and automated mobile robots are the near future for most global supply networks. These can aid in both forward and reverse logistics and keep the supply chain operating efficiently.

Despite the many benefits such as time-savings, increased accuracy, error reduction, cost-saving, better productivity, efficiency, and more space created, the human workforce is worried about their future as robots start to replace them.

Many disadvantages still need to be overcome regarding omnichannel logistics; even if the availability of affordable drones is increasing, the initial investment remains high, at least for most companies. Not to mention the regular maintenance check cost, repairs, and the training of the workers who do not especially know how to use specific drones. 

Even though drones can operate autonomously within direct distribution tasks, it is still essential for workers to understand delivery and logistics protocols to not form supply chain bottlenecks along the way.

A massive boom in technology has happened, and drones are showing strong potential in performance capabilities. This makes it easier for service providers to meet customer expectations while better managing opportunity costs and profits.

The indoor drones which are being analyzed and studied for full implementation will be another essential step for automated supply chains as they will be able to bring many positive effects, such as a fast return on investment. However, innovation is still essential as changes will need to be made for them to be fully operational.

Improve Delivery and Logistics With Help From ModusLink

Despite the necessary adjustments, the rapid growth and advancements in innovative drone technology illustrate a bright future. Would you like to know more about omnichannel logistics, drones, and how to integrate modern tech within your supply chain? Contact one of ModusLink’s Industry experts today to get started with improved delivery and logistics!

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The shutdowns and disruptions from COVID-19 outbreaks have forever changed the way consumers, retailers, and suppliers work and operate. And the problems created are still being dealt with throughout the supply chain. Companies must accelerate global strategies to customer service and inventory planning processes and management. 

It is crucial to understand the problems faced within the global supply chain when it comes to being able to meet customer expectations, contract supply  issues, and demand concerns.  E-commerce challenges continue to pose a problem as ongoing growth and recovery efforts continue. And those problems will only continue. According to the United Nations Conference on Trade and Development (UNCTAD), COVID-19 pushed e-commerce to $27.6 trillion by early 2021.

Transportation companies must understand why these problems had a significant impact on supply chains across many different companies. It is only when issues and their origin are understood in detail, effective and adequate solutions can be implemented to prevent the return of future negative effects within global commerce.

Now that the negative effects are known and understood to a degree, companies are starting to implement countermeasures. The leading issue supply chains across companies have issues with coping with the impact of the pandemic lies at the current/prior resilience level. 

Companies that wish to accelerate global demand planning and supply chain operations need to focus on known issues and improve end to end resilience.

The first part of this article described the negative effects on Supply Chains as a result of COVID-19. It is crucial to understand the problems faced and the reasoning as to why these problems had a big impact amongst Supply Chains across many different companies. It is only when problems and their origin are understood in detail, effective and adequate solutions can be implemented to prevent the return of future negative effects.

Now that the negative effects are known and understood to a degree, companies are starting to implement counter measures. Of course, the type of measure implemented depends on the specific company in question. However, the main issue Supply Chains across companies have issues with coping with the effects of the pandemic lies at the current/prior resilience level. Supply Chains simply did not invest sufficiently in the resilience element to minimize these negative effects. Now, how can companies specifically improve their Supply Chain Resilience?

How Can Companies Improve Their Supply Chain Resilience?

The pandemic will not disappear anytime soon. To improve resilience, companies require steady, start-to-finish appraisal and enhancement, and observation. Robust global commerce analytical systems must monitor constant changes in the marketplace to ensure optimal order processing by a fulfillment partner.

Strong analytical capacity will allow companies to understand the complexity of contract supply better, anticipate potential disruption, and quickly develop a response (BizClik Media, 2020).

See the figure below for a clear visual on how to improve supply chain planning and supply chain processes in a structured way.

Figure 1 Operate – Execute – Monitor Cycle (Resilience) https://supplychaindigital.com/supply-chain-2/accenture-building-supply-chain-resilience-amidst-covid-19

Steps to Accelerate Global Supply Chain Performance 

Let’s create a scenario on how to improve the Supply Chain’s resilience using the diagram above. Remember, the end goal of increased Resilience is necessary to enable and increase a company’s ability to respond accordingly to unexpected changes within the demand/marketplace.

Supply chain management is all about looking for ways to improve key performance metrics. The following steps can help in short term and long term goals.

Step 1: Mobilize

To counter unexpected changes in demand, an initial response plan must be in place that holds specific operating rules. For instance, if demand rises above level X%, automatic notifications must be sent to suppliers A/B to deliver new products on time. 

These resilience supply parameters can be established based on safety/stock margins resulting from product priority and lead times to accelerate global metrics. Regular flow and depreciation value also play essential roles in determining these specific parameters.

Step 2: Sense

After creating the fundamental counterplan, risks and implications on the Supply Chain must be identified and analyzed as soon as possible. For instance, if Supplier A uses a specific raw material to create a product known to become scarce upon demand increase, inform yourself about alternatives that enable product delivery past these scarcity levels. 

Diversify risks by looking for ways to counter transportation costs and concerns in global commerce, production, and delivery. This is critical for domestic, global, and cross-border processes.

Step 3: Analyze

It is essential to analyze ‘what-if’ scenarios in case of unexpected plan failures. It is best to review these plans and procedures every couple of months, depending on the company, to ensure their validity. 

Furthermore, having multiple perceptions on/off the scenarios and solutions may contribute to increased quality and resilience. The more a company asks itself what if x will happen, especially when analyzing contract supply metrics for inventory levels and product designs, the better the understanding of the possible unexpected obstructions.

Step 4: Configure

This final step of this never-ending cycle should include the configuration of the entire counter process. All steps/elements needed to facilitate the counterplan should be in place. New transport/backup modalities, alternate materials, backup machinery, etc. 

The more extensive the preparation, the better. This last step ties in with the third analysis step, as the potential disruptive scenarios accelerate global configuration needs.

Improve Global Commerce Performance With ModusLink

After continuous focus on Supply Chain optimization to minimize costs and improve efficiency across the board, COVID-19 clearly illustrates that many companies are not fully aware of the vulnerability of their supply chain relationships to unexpected Global changes within the marketplace/demand (Deloitte, 2021).

Fortunately, new digitalized Supply Chain technologies are showing potential to drastically  improve the visibility across the end-to-end supply chain. It is clear that the current linear model of Supply Chains was not sufficient to be resistant to such global changes as the pandemic. Technologies such as the Internet of Things, artificial intelligence, AVG (Automated Guided Vehicles) are designed to anticipate and meet future challenges.

Would you like to know more about the state of Supply Chains moving forward? Stay tuned for our next Blog where we will go more in-depth or talk to a ModusLink Expert today by clicking here!.

Bibliography:

(2021, May 3). Global e-commerce jumps to $26.7 trillion, COVID-19 boosts online sales, Accessed October 20, 2022 From https://unctad.org/news/global-e-commerce-jumps-267-trillion-covid-19-boosts-online-sales

BizClik Media. (2020, May 17). Accenture: building supply chain resilience amidst COVID-19. Supply Chain Digital. Retrieved November 27, 2021, from https://supplychaindigital.com/supply-chain-2/accenture-building-supply-chain-resilience-amidst-covid-19

COVID-19: Managing supply chain risk and disruption. (2021, October 5). Deloitte. Retrieved November 26, 2021, from https://www2.deloitte.com/global/en/pages/risk/cyber-strategic-risk/articles/covid-19-managing-supply-chain-risk-and-disruption.html

G. (n.d.). What impact has COVID-19 had on supply chains & responsible sourcing? Greenstone. Retrieved November 26, 2021, from https://www.greenstoneplus.com/blog/what-impact-has-covid-19-had-on-supply-chains-responsible-sourcing

Gilkey, J. G. (2021, May 1). The challenges and realities of retailing in a COVID-19 world. Researchgate. Retrieved November 28, 2021, from https://www.researchgate.net/publication/351656064_The_challenges_and_realities_of_retailing_in_a_COVID-19_world_Identifying_trending_and_Vital_During_Crisis_keywords_during_Covid-19_using_Machine_Learning_Austria_as_a_case_study

Harapko, S. H. (2021, February 18). supply-chain. Ey.Com. Retrieved November 26, 2021, from https://www.ey.com/en_gl/supply-chain/how-covid-19-impacted-supply-chains-and-what-comes-next

Meyer, A. (n.d.). The Impact of the Coronavirus Pandemic on Supply Chains and Their Sustainability: A Text Mining Approach. Frontiers. Retrieved November 26, 2021, from https://www.frontiersin.org/articles/10.3389/frsus.2021.631182/full

Netherlands, S. (2021, July 27). COVID-19 impact on supply chains. Statistics Netherlands. Retrieved November 25, 2021, from https://www.cbs.nl/en-gb/dossier/coronavirus-crisis-cbs-figures/covid-19-impact-on-supply-chains

With all the upheaval that global supply chains have had to contend with, the value of supply chain optimization has never been more vital. Significant progress has been made over the last two years to respond to the weaknesses and issues exposed, but there is still much to be done regarding supply chain strategies and implementation.  Approaching logistics with a focus on omnichannel supply chain options may be the best option to speed recovery.

As highlighted by McKinsey & Company in late 2021, “Companies have only partly addressed the weaknesses in global supply chains exposed by the coronavirus pandemic. In the face of new challenges, finishing the job is even more urgent.” This is where a service now and omnichannel approach can make all the difference for logistics managers when it comes to recovery from the pandemic’s disruption. Many companies in the world today struggle with this aspect of supply chain operations and business strategy. But it doesn’t have to be this way.

Covid-19: The Grand Disruption

Delayed shipments because of sea freight disruptions, monthly increasing fuel charges, challenges with supply chain optimization, and disconnected communication between transport modalities.. These are all direct effects encountered across supply networks, from technology companies to fleet managers to retail distributors, that resulted from introducing the virus COVID-19.

Companies need a  service now and omnichannel approach to logistics to maintain a competitive advantage. It is undeniable that COVID-19 has caused many disruptions across markets. 

Especially within the supply chain industry, the virus has caused some companies to go bankrupt due to their fragile supply chain and product development and distribution processes. They simply have not been able to counter the adverse effects caused by the virus. 

Many high paying logistics jobs offer an opportunity to improve the industry as a whole and impact future developments within the supply chain network. This unforeseen situation, experienced by companies worldwide, has caused management staff to revisit and revise their current strategies. 

What is the current state of supply chains? Are there any positive effects of poor supply chain optimization and disruption? Which are the critical learning factors to pay attention to? How has CRM and other platform innovations impacted the supply chain?

These questions are covered here so supply chain managers and team members can better understand the state of the supply chain industry today as the world continues to recover from COVID-19.

Negative Effects on Supply Chain Optimization

To understand the current state of supply chains the negative effects incurred must be known. Many Supply Chains faced comparable negative issues because of COVID-19.

Ernst & Young LLP (EY US) surveyed in late 2020 where asked approximately 200 senior-level supply chain executives at organizations across many sectors. This includes consumer products, retail, life sciences, industrial products, automotive, and high-tech companies in the United States with over US$1b in revenues within the service now and omnichannel platforms. 

Some of these responders were looking at high paying logistics jobs and how to improve the supply chain operations. See the chart below (Harapko, 2021).

According to this research into supply chain optimization, the pandemic hit shippers, carriers, and transportation companies hard. Some companies experienced more negative effects than others. This research stated that, among the respondents, all automotive and nearly all (97%) industrial product companies said the pandemic negatively affected them.Furthermore, 47% of all companies reported the pandemic disrupted their workforce.  These are significant amounts and visualize the struggle experienced by many companies in their later stages. Recovery efforts will likely continue for years to come as the full impact of global shutdowns, closures, backlogs, and disruptions still impact nearly every industry from brick and mortar to e-commerce businesses.

Confusion Fueled by a Lack of Understanding

The specific adverse effects Supply Chains face are too many to go into detail—supplier retraction, fuel charge increases, modality issues, supply chain optimization issues etc. 

As a result, the impact of the adverse effects stated accumulated rapidly. It was difficult to implement direct countermeasures as nobody understood precisely how the virus would develop in the future.

According to Greenstone (n.d.), this confusion and lack of understanding resulted in cross-border flows of goods being stalled due to safety precautions needing to be understood and then implemented.

Furthermore, local ‘lockdown’ regulations formed a great obstacle that needed to be understood about trade. Only after this could the natural flow-of-goods continue to work on service now and omnichannel operating levels. 

This phenomenon can be easily identified within supply lines and logistical routes. However, as mentioned before, the negative effects of these high-paying logistics jobs can be seen across all industries. Fortune magazine noted that nearly 94% of the Fortune 500 companies claim to see supply chain disruptions because of the coronavirus. Implementing new processes for digitization and automation can improve recovery efforts for businesses of all sizes.

Figure 2 COVID-19 Supply Chain effects – Fortune 1000 companies (https://www.google.com/url?sa=i&url=https%3A%2F%2Fsupplychaindigital.com%2Fsupply-chain-2%2Faccenture-building-supply-chain-resilience-amidst-covid-19&psig=AOvVaw1cleCCNUnB1vy8TfDrQvHx&ust=16388950

Overcome the Impacts of COVID-19 With Help From ModusLink

The main conclusion that can be given from the experienced negative effects is that many companies lacked a certain amount of resilience within their supply chain optimization processes and supply chain structure.

On the upside, COVID-19 has magnified and identified the present issues within current/former supply chain structures and operations. Now that these issues have been identified, companies can use this knowledge to adjust accordingly for the better and gain a solid competitive advantage as a result. 

When you have products and services to offer, you want to ensure your company is up to the task. Dealing with short term and long term effects of the global pandemic is a serious task for any company to overcome. 

Would you like to know more about the state of supply chains moving forward and how supply chain optimization continues to impact the industry? Contact a ModusLink expert today to get started.

Bibliography:

Alike, Knut, Barriball, Ed, Trautweign, Vera (2021, November 23) How COVID-19 is reshaping supply chains, Accessed October 22, 2022 From https://www.mckinsey.com/capabilities/operations/our-insights/how-covid-19-is-reshaping-supply-chains

2021, May 3). Global e-commerce jumps to $26.7 trillion, COVID-19 boosts online sales, Accessed October 20, 2022 From https://unctad.org/news/global-e-commerce-jumps-267-trillion-covid-19-boosts-online-sales

BizClik Media. (2020, May 17). Accenture: building supply chain resilience amidst COVID-19. Supply Chain Digital. Retrieved November 27, 2021, from https://supplychaindigital.com/supply-chain-2/accenture-building-supply-chain-resilience-amidst-covid-19

COVID-19: Managing supply chain risk and disruption. (2021, October 5). Deloitte. Retrieved November 26, 2021, from https://www2.deloitte.com/global/en/pages/risk/cyber-strategic-risk/articles/covid-19-managing-supply-chain-risk-and-disruption.html

G. (n.d.). What impact has COVID-19 had on supply chains & responsible sourcing? Greenstone. Retrieved November 26, 2021, from https://www.greenstoneplus.com/blog/what-impact-has-covid-19-had-on-supply-chains-responsible-sourcing

Gilkey, J. G. (2021, May 1). The challenges and realities of retailing in a COVID-19 world. Researchgate. Retrieved November 28, 2021, from https://www.researchgate.net/publication/351656064_The_challenges_and_realities_of_retailing_in_a_COVID-19_world_Identifying_trending_and_Vital_During_Crisis_keywords_during_Covid-19_using_Machine_Learning_Austria_as_a_case_study

Harapko, S. H. (2021, February 18). supply-chain. Ey.Com. Retrieved November 26, 2021, from https://www.ey.com/en_gl/supply-chain/how-covid-19-impacted-supply-chains-and-what-comes-next

Meyer, A. (n.d.). The Impact of the Coronavirus Pandemic on Supply Chains and Their Sustainability: A Text Mining Approach. Frontiers. Retrieved November 26, 2021, from https://www.frontiersin.org/articles/10.3389/frsus.2021.631182/full

Netherlands, S. (2021, July 27). COVID-19 impact on supply chains. Statistics Netherlands. Retrieved November 25, 2021, from https://www.cbs.nl/en-gb/dossier/coronavirus-crisis-cbs-figures/covid-19-impact-on-supply-chains

nventory management has always played a key part in any successful supply chain process. Managing inventory levels helps companies to swiftly adapt to unpredictable changes within the marketplace. Volatile demand can cause troubling issues when not handled correctly. That undermines supply chain performance and customer relationship management. When there are weaknesses in how managers link warehouse operations and manage supply chain innovation, the risk increases. In fact, 56% of business leaders still report inefficient inventory management capabilities, asserts Forbes. Let’s take a closer look at how your company can improve inventory management to boost customer experiences, purchase orders, and small business efficiencies. 

The Importance of Inventory Management in Public Warehouse Operations

Digitization and automation are at the heart of ongoing growth and recovery and can help businesses overcome common warehousing and inventory issues. For instance, let’s say you are a company that sells seasonal jackets. Due to an unusually warm winter, your winter jackets no longer sell as expected. 

Without adapting to the current demand, your winter jackets will become excess inventory over time. Using up  public warehouse space to sort, organize, and store excess inventory can get costly. 

These negative effects could have been prevented with an adaptive and responsive supply chain across all industries. Knowing how to link warehouse centers, supply lines, and shipping lanes efficiently can improve management and logistics for supply chains.

For example, retail and spa warehouse needs may vary greatly, but they all must still rely on data to track operational efficiency.  It is crucial for all businesses looking to scale, to understand the importance of having the ability to shift production toward demand.

Steps to Take for Better Supply Chain Responsiveness And to Link Warehouse Operations

Correctly managing inventory levels and knowing how to effectively link warehouses requires a responsive supply chain, but what exactly does that mean? 

According to IGI Global(n.d.), a strong supply network can be defined as a supply chain that is able to shift its production to unpredictable customer demand. How do supply chains do this? 

One way to realize a responsive network is to correctly manage  logistics warehouse and inventory levels..

Boost Inventory Management

Correctly managing Inventory levels can be a struggle, depending on the marketplace and products in question. See below the best ways you can effectively improve your inventory management by making your logistics warehouse processes more responsive.

Working with the best fulfillment partner can ensure inventory management remains front and center at all times. It allows companies to better regulate inventory and keep up with critical supply chain processes. This focus makes optimization and responsiveness much easier.

Improve Supplier relationships

Products that require multiple raw materials or parts from different suppliers are heavily reliant on active supplier relationships. Companies that trade in those products ought to continuously look for ways to improve their supplier relationships, including public warehouse access and utilization. 

Having a better understanding of your supplier’s business position (and vice versa) allows a company to better anticipate and forecast possible disruptions and improve the way they coordinate and link warehouses and other applicable chain parties. This maximizes the throughput speed at which new materials can be ordered and received, in turn increasing your adaptability to the marketplace. Having access to the best supply chain tools can also help significantly. .

Figure 1(Supplier Relationship Management) Significance of Healthy Supplier Relationship. (n.d.). from http://www.strategicsourcing.pk/2015/12/significance-of-healthy-supplier.html

Enhance Risk Management

Another way to improve inventory control and build supply chain responsiveness is through effective risk management. Especially in turbulent times and strong unforeseen events such as COVID-19, the element of risk management is crucial for any business looking for ways to boost  logistics warehouse operations and streamline operations.

Especially for SMEs (Small-Medium-Enterprises) looking to invest in new technology, a detailed risk analogy of the sought-after investment must always be made prior to continuing business. Automation and digitalization are important elements in linked warehouses nowadays. Despite the importance of these elements, never invest without proper risk-return analysis. 

Consider Outsourcing Options

A method to the improvement of performance and inventory management that has become increasingly popular over the years is the concept of outsourcing. Companies such as ModusLink are industry experts with years of industry experience and knowledge regarding  public warehouse and inventory management processes. 

Companies that rely on warehouse and distribution services need sound logistics warehouse management processes. Without a solid foundation, the entire network will struggle from the start. For many companies, the easiest solution to this shortcoming is to outsource services.

Looking Forward to Future Growth and Success

Some companies today can also be price-competitive, increasing the attractiveness of outsourcing your supply chain. These companies use their extensive network, supplier relationships, and vast IT infrastructure to massively increase supply chain responsiveness and inventory management processes. They understand the importance of linked warehouse operations. 

Companies that outsource effectively gain the ability to spend resources elsewhere. This allows their business to flourish in a short-time period and more importantly, increases their ability to scale effectively. The effects of COVID-19 have forever changed the market and how consumers shop, which has forever altered how inventory management and supply chain responsiveness is measured.

Improve Logistics Warehouse Operations With ModusLink

These three elements are important ways to Increase a supply chain’s responsiveness and in turn, increase inventory management. There are plenty of other ways a business can improve its supply chain strategy and boost the ability to link warehouses effectively. 

Would you like to know more about these innovative strategies and how to improve supply chain operations with enhanced inventory management? Contact ModusLink today to learn more and to see how easy inventory management can be when you have the right tools and guidance!

Bibliography:

Amsler, S., O’Donnell, J., & Cole, B. (2021, February 11). inventory management. SearchERP. Retrieved November 24, 2021, from https://searcherp.techtarget.com/definition/inventory-management

Significance of Healthy Supplier Relationship. (n.d.). Strategic Sourcing. Retrieved December 3, 2021, from http://www.strategicsourcing.pk/2015/12/significance-of-healthy-supplier.html

Walts, A. (2021, October 29). Your Essential Guide to Effective Inventory Management + 18 Techniques You Need to Know. The BigCommerce Blog. Retrieved November 21, 2021, from https://www.bigcommerce.com/blog/inventory-management/

What is Responsive Supply Chain | IGI Global. (n.d.). IGI. Retrieved December 3, 2021, from https://www.igi-global.com/dictionary/building-a-strategic-framework-for-retail-supply-chain-analytics/52748

Introduction

Many SMEs (small and medium enterprises) now make use of reverse logistics to some degree as they work with omni carriers and shippers and service providers. Many end-to-end processes are involved with reverse logistics, including omnichannel logistics warehouse management, real-time shipment tracking, innovative communication options, integrated technology, and smart supply chain tools and platforms. 

The benefits gained, such as resource management, profit margin increase, and increased customer satisfaction, are prominent within any company that maintains reliable reverse logistics management within the supply chain. 

From a supplier point of view, reverse logistics aims at dealing with leftover products, waste, raw materials, and returned goods that are not required by end customers. Environmental concerns are strictly linked to customers’ demand for more sustainable products and economic benefits since a returned item can easily be sold instead of producing a new one from raw materials (D’Amico, E. D. 2021).

Here experts will cover the latest innovations mainly used to gain a competitive advantage within the marketplace. When executed correctly, these innovative technologies allow companies to scale rapidly. 

.

How Omnichannel Logistics Warehouse and Logistics Management Helps Reverse Logistics

SMEs often outsource to professional supply chain companies that make use of these technologies. SMEs can experience the benefits of rapid scalability while keeping investment costs low. It also provides better resource management. In this article, we will zoom in on the popular innovations that are helping to shape omnichannel logistics warehouse operations and logistical processes.

According to D’Amico, E. D. (2021), An implementation of technologies such as IoT (Internet of Things) and blockchain would allow for improvement in the functionality of reverse logistics. Everything from warehousing to shipping management to inventory logistics all can be improved with the right tools and technology. Every step in the process will carry positions of power unique to the individual supply network, meaning management and insight is more important than ever.

Although these technologies can be expensive to implement and require much expertise, they offer possible solutions, especially with RFID (Identification tags usable on products). Traceability, transparency, and prediction are the main benefits of a Smart Reverse Supply Chain (SRSC). 

All this can easily be accomplished with innovative technologies, tech stacks, and new ways for omni carriers and shippers to embrace digitalization and automation. In the end, this translates to higher profits, lower costs, fewer fraud management concerns, and improved productivity overall.

Internet of Things (IoT)

The IoT describes a network in which every physical product has a virtual identity and is linked to a connection. It represents one of the main pillars of the revolution of the omnichannel supply chain.

The IoT is the key that allows omnichannel logistics warehouse objects, such as tracking and monitoring barcodes, tags, or sensors, to communicate with each other and humans. The holistic connection created a synergized network that allows streamlined data transfers on a large scale.

IoT is used within many supply chain aspects nowadays. Inventory management is a frequently used aspect. As soon as the quantity falls under an established number, a reorder can be automatically processed using RFID in a virtual cloud. 

According to industry experts,  the structure of IoT for omni carriers and providers is based on four layers of services that focus on the proper disposal of products and materials and the overall management of reverse supply chain logistics. These are:

• Data storing (RFID) initiated at the point of origin
• Communication between involved parties
• Services focused on smart contract and logistics
• Display data and share information effectively 

IoT is able to bring remarkable opportunities to reverse logistics and provide valuable resource leveling power and insight into the logistics of this unique logistical flow. The information infrastructure is strongly improved by establishing a connected network of products (Gar-2020).

Blockchain

Blockchain can be defined as a digital technology that facilitates the recording of transactions and allows for the traceability of a resource. 

The resource type can vary between physical (e.g., cars) or abstract resources (e.g., patents or cryptocurrency). This is especially true with cryptocurrency, blockchain allows the record of every transaction and helps fraud management.

The main concept stimulates the idea of handling information in a decentralized way. Private blockchains and public blockchains alike can help improve supply chain returns process management. The information is supported by the collective instead of by a single entity, improving its resilience and impact overall.

When it comes to supply chain and reverse logistics management, blockchain digital currency and processes can be used to improve the chain in multiple ways. The decentralized structure allows every logistics member to keep real-time track of a product and increases the data’s reliability (Zhu-2019). The transparency enabled by blockchain increases the security of trade. 

This security is a valuable element needed in any resilient supply chain. In addition, blockchain allows networks to streamline their transaction process as it can remove intermediate steps from the transactional process. This reduces costs and time, ultimately improving the supply chain.

The figure below clearly illustrates the blockchain process as it relates to omnichannel logistics warehouses and returned products management.

The figure below clearly illustrates the Blockchain process.

Figure 1. (The Blockchain process) D’Amico, E. D. (2021, October 10).

Boost Omnichannel Supply Chain Reverse Logistics Today

Bringing together omni carriers and shippers and service providers is an integral part of reverse logistics management. Would you like to know more about these innovative technologies and how to master the reverse logistics process for your business? The answer to better supply chain management and returns logistics is right here.

It is easy to boost project management processes and develop effective reverse logistics when you have the tools and technology at hand. Let the industry leaders demonstrate how easy returns management can be with the right resource management software and the latest innovative tools in play. Contact a ModusLink expert today to get started!

Bibliography:

D’Amico, E. D. (2021, October 10). ResearchGate. ResearchGate. Retrieved November 6, 2021, from https://www.researchgate.net/publication/354551628_Analysis_of_Challenges_and_Potentials_of_Reverse_Logistics

Jenkins, A. (2021, April 5). A Guide to Reverse Logistics: How It Works, Types and Strategies. Oracle NetSuite. https://www.netsuite.com/portal/resource/articles/inventory-management/reverse-logistics.shtml

Marchese, K. (2021, October 29). Supply Chain leadership. Deloitte United States. https://www2.deloitte.com/us/en/pages/operations/articles/supply-chain-leadership.html

Niroomand, I. (2021, August 31). The importance of reverse logistics in your supply chain network. Kinaxis. https://www.kinaxis.com/en/blog/importance-reverse-logistics-supply-chain-network

Reverse Logistics – Rhenus Netherlands. (n.d.). Rhenus. Retrieved November 6, 2021, from https://www.rhenus.com/en/nl/our-solutions

Introduction

Meta-description. Understanding the reverse logistics meaning helps shippers to account for changes in consumer behaviors and reduces risk. Learn how today. 

 When speaking to any experienced supply chain professional, the focus on  reverse logistics e-commerce can be expected somewhere within the conversation. A strong supply chain must contain elements such as resilience, agility, responsiveness, cooperation, fluency, and so forth. Managing to maintain all these elements can be highly challenging. However, if a business succeeds, the rewards are highly noticeable and can be far-reaching and highly impactful. This is why understanding the reverse logistics meaning in the modern e-commerce supply chain network is more vital than ever!.

Understanding the Importance of Reverse Logistics Management Today

Loyal customers, fast delivery, capability to adapt to the market, freedom in spending resources, time management, effective return management, improved logistics warehouse features, and more all impact reserve logistics.

Statistics from the past year or two do not lie, as highlighted by 2022 reports from Zippia: “38.8% of U.S. small businesses experienced supply chain delays due to the COVID-19 pandemic. The global supply chain market size value is $15.85 billion. And the global supply chain market is expected to experience a CAGR of 11.2% from 2020 to 2027.”

SMEs (Small/Medium Enterprises) often struggle to effectively manage their supply network due to limited capacity and resources. A popular solution to this can be given in the form of Outsourcing. Many SMEs take advantage of outsourcing important tasks and processes of their reverse logistics to experienced professionals within the industry. 

A strong focus on reverse logistics e-commerce allows businesses to quickly scale their services and invest their time and resources into other parts of the company. And best of all, this can happen without sacrificing the importance of the key driver behind their business, the modern omnichannel supply chain. 

A significant element often prioritized when outsourcing these processes is reverse logistics, which means understanding  reverse logistics meaning can have deep-reaching implications for supply chain managers. This is because the element greatly impacts the customer satisfaction ratio and overall supply chain performance.

The definition of Reverse Logistics

Reverse Logistics is often referred to as Reverse Supply Chain, and part of ‘Closed Loop Supply Chain’. Its first definition was published only in the beginning of the nineties by the Council of Logistics Management (Bri-2004, S. 4) and thus still represents a young sector of Logistics.

Reverse logistics, when focused on goods and services, deals with the process of planning, implementing, and controlling the flow of shipments from the back through the supply line (Bri-2004, S. 5). It is essentially the logistics of dealing with a returned item or product.

Figure 1(The Reverse Logistics Process) (Chi-2018)

The Figure above clearly illustrates the core elements of the Reverse logistics Process. Products are received from the end-customer and transported back to the warehouse in question. They are then carefully inspected for defects, depending on the reasoning behind the return. They are then adequately sorted and either resold/recycled or scrapped.

The Introduction of Reverse Logistics e-Commerce Within Supply Chain Management 

Businesses often quickly experience the challenges of reverse logistics, such as capacity management, customer expectations, waste management, and more. These challenges were often too grand to build a reliable reverse logistics process due to limitations with  logistics warehouse systems and ineffective tech stacks. 

 Only recently has reverse logistics become increasingly popular to manage effectively. There are a couple of reasons for this. The uprising of eCommerce businesses is one explanation, as many products flow quickly through an eCommerce business, increasing the importance of managing the returns process. This has further fueled the need for a clear understanding and visible insight into reverse logistics meanings in light of continued focus on The Internet of Things (IoT)and other automations. 

 Another reason for the increase in the popularity of reverse logistics management is the rise of substantial technological solutions and innovations, such as the IOT and drones or autonomous guided vehicles (AGVs or drones). These  reverse logistics e-commerce solutions allow SMEs to overcome the challenges that come with effectively managing a reverse Logistics process.

Smart Reverse Supply Chain (SRSC)

The concept of merging the technology mentioned above, together with Reverse Logistics forms the idea called a ‘Smart Reverse Supply Chain.’  Smart management of reverse supply chain logistics can save a lot in terms or wasted time and money. It can also improve customer experience and streamlining the process of returning goods flowing back through the supply chain.

To overcome the challenges that come with managing these processes, businesses decide to make use of technologies such as automated inventory tracking, warehouse monitoring, real-time communications, and digitalization and automation of all sorts.

They can choose to adopt these  logistics warehouse tools and technologies individually, or collectively make them work together to strengthen the synergy within the reverse supply chain.

SRCS can manage flow times and information exchanges more effectively between logistical partners. This minimizes the uncertainties and difficulties when returning products. Xu (Xu-2011b) can be equipped with a unique identity and communicate with other devices.

The two key elements that ought to be managed effectively to improve SRCS are:

• Identification tools: To implement a well-organized smart reverse logistics, it is necessary to establish appropriate identification methods such as RFID (ID Tags), 3-D and 4-D Barcodes to permit the recognition of incoming and handled objects and the communication between them. It also allows for better comprehension of reverse logistics meanings.

• Standardization: To allow every member of the Closed Loop Supply Chain to process and identify the products, it is necessary to establish a standardization of the used technologies. Although there are governing bodies that keep reverse logistics e-commerce, uniform technologies need to be standardized and improved to meet growing needs and demands.

Improve Reverse Logistics and Profitability With ModusLink

These two elements are best managed through innovative technologies such as chatbots, real-time tracking, push notifications, reliable scanning, and supply chain tools that leverage the IoT.  Doing so opens the door to even more amazing possibilities, including drones in supply chain networks, automated vehicles, and more!

Would you like to know more about these innovative technologies and how you are able to implement these within your supply chain? Ready to learn how to make   logistics warehouse operations and existing processes more efficient? 

To better understand reverse logistics meanings and the impact logistics and management can have on your supply chain network, contact ModusLink today!

Bibliography:

Kolmar, Chris (2022, October 24). 18 STUNNING SUPPLY CHAIN STATISTICS [2022]: FACTS, FIGURES, AND TRENDS, Accessed October 24, 2022 From https://www.zippia.com/advice/supply-chain-statistics/

D’Amico, E. D. (2021, October 10). ResearchGate. ResearchGate. Retrieved November 6, 2021, from https://www.researchgate.net/publication/354551628_Analysis_of_Challenges_and_Potentials_of_Reverse_Logistics

Jenkins, A. (2021, April 5). A Guide to Reverse Logistics: How It Works, Types and Strategies. Oracle NetSuite. https://www.netsuite.com/portal/resource/articles/inventory-management/reverse-logistics.shtml

Marchese, K. (2021, October 29). Supply Chain leadership. Deloitte United States. https://www2.deloitte.com/us/en/pages/operations/articles/supply-chain-leadership.html

Niroomand, I. (2021, August 31). The importance of reverse logistics in your supply chain network. Kinaxis. https://www.kinaxis.com/en/blog/importance-reverse-logistics-supply-chain-network

Reverse Logistics – Rhenus Netherlands. (n.d.). Rhenus. Retrieved November 6, 2021, from https://www.rhenus.com/en/nl/our-solutions/contract-logistics/logistics-solutions/reverse-logistics/

The importance of correct packaging

Each product shipped along domestic and international supply chain lines has its natural flow from beginning to end. Packaging is an essential element that manifests its presence within all stages of the product flow.  Improving the whole supply chain from end to end relies on improved logistics and direct distribution processes.

These stages can be identified as the purchase of raw materials, the production and sale of the final product, and not to forget transportation, packaging, and distribution resources. Global ecommerce and online shipping services have become more influential than ever before. This critical piece of the supply chain cannot be ignored.

Packaging logistics is quite a new discipline that has gained consideration in terms of its strategic aspect in providing a significant competitive advantage to improve the efficiency of the direct distribution and internal supply chain logistics and shipping process.

Over the years, packaging has become a significant challenge for companies. Companies must analyze and study the best way to pack products taking into consideration many vital factors.  

The characteristics of the products, such as the shape, components, etc., must be taken into account to minimize cost and improve the companies’ performance and reliability. As a result, the emphasis on packaging systems has grown substantially recently (Regattieri, 2013). This is true for traditional distribution and shipping as well as cross-border e-commerce solutions. 

Whether a company specializes in local retail shipping and distribution, a solely online shot front, a hybrid blend of online and brick and mortar, or is looking at selling internationally on Shopify and similar Shopify markets, or a similar online platform, it all comes down to making smart choices at this critical point.

The Importance of Correct Packaging and Distribution Resources

Traditional packaging and distribution methods are insufficient to meet shifting market needs and changing consumer expectations. Working with local distribution providers as well as international domains and providers makes packaging all the more essential. 

Understanding the different types of smart packaging available can set struggling companies apart from successful ones. Digital businesses, brick-and-mortar shops, online stores, and M-commerce solutions all benefit from this innovation.

Smart packaging consists of packaging systems with embedded sensor technology used for different product tracking.  Direct distribution aims to extend its shelf life, track and trace products, monitor freshness, display information on quality, or improve the effect on customer safety. 

Smart packaging contributes to the overall supply chain efficiency by constantly contacting the products through strategic sensors devices on the packaging. Smart packaging is integrated into products such as food, pharmaceutical, and many more. The Supply Chain packaging and distribution resource  management are currently in a growth phase with immense potential. 

New innovations with digitalization and automation, such as thin-film electronic and antimicrobial packing, are being analyzed to increase their capabilities and become even more accurate and safer (Cheung, 2018). It all comes down to improving supply chain management processes from end to end.

The three main Packaging levels and Direct Distribution

The packaging process consists of three primary levels. The first level is about the structural nature of the package. This phase is the smallest. Within this phase, the package is in direct contact with the actual content.

The second level deals with visual communication and customer satisfaction. The primary purpose of the second level is to keep packages in que and to follow their progress. It is a critical piece of the direct distribution puzzle.

Finally, the third level is designed and used for transportation and storage, such as cartons. The packaging system is cross-functional, which means that different departments dealing with the system each have specific requests about the design of the package. 

The three package levels involved in packaging and distribution resource management are illustrated in the schema below.

The three package levels are illustrated in the schema below.

(Regattieri, 2013).

Smart Packaging Improves Security and Delivery Success

The security of the products can be monitored by research design to increase the safety of the product during manufacturing and assembly, storage and picking, and transport. Smart packaging also plays an important role in traditional packaging. Information transmission is used to inform the management team on the correct way to store or transport the contained product. Organizations also integrate the internet of things (IoT) through an electronic device RFDI (radio-frequency identification) which is a tag on packages to enable companies to identify the products in real-time, reducing the risk of damages and mapping the path of the products to control the work in progress. An unprotected product could cause product waste which can be negative from an environmental and economic point of view (Regattieri, 2013).

Shipper and Carrier Benefits to Smart Packaging

Smart Packaging can offer various advantages. They can fulfill the information, automation, marketing, and protective functions. 

To accomplish this, packages are equipped with tiny electronic devices that add functionalities such as barcodes, LED, augmented reality, NFC (near field communication), loudspeakers, and displays. 

A good example would be intelligent drug packaging with built-in RFID (radio frequency identification) chips that can track and report the location and status of each individual box, pallet, or load. It helps all involved parties better manage packaging and distribution resources.

Smart Packaging has a strong customer empowerment element through great new technological tools. These supply chain tools can offer a customer interface that is used to understand the different purchased products better. 

Quality control is another strong advantage of direct distribution and  packaging and distribution resource monitoring. Active packages use sensors that are being placed on the product. Organizations can detect the product’s status and see whether it is good or compromised.

Furthermore, advanced packages can even go further by extracting unwanted particles inside the package which can increase the shelf life. These sensors result in easy access to the manufacturer’s final quality products and longer-lasting solutions (impacx, 2020).

Innovative packaging has made the process of locating products much easier and safer, as too many products are difficult to track within a complex supply chain (Choudhury, 2018). It is easy to improve the shopping experience and improve customer services with smart packaging solutions like these.

Make the Most of Packaging and Direct Distribution with ModusLink

The many advantages mentioned above attract companies to switch from traditional packaging to Smart Packaging. It comes down to better packaging and distribution resource management and shifting from manual outdated processes and shifting to processes with advanced technologies. It all comes down to making smart choices with packaging and distribution that make the logistic operation more resilient.

Would you like to know more about the best way to integrate Smart Packaging within your current direct distribution processes and supply lines? Contact one of ModusLink’s industry experts today to get started.

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Bianchi. (2017, June 28). 5 Examples of Innovative Uses for RFID Technology in Retail. Retrieved from shopify.com.

BioSpectrum. (2012, July 16). Packing smart for better reach of vaccines. BioSpectrum digital edition. Retrieved from https://www.biospectrumasia.com/.

Cheung, S. &. (2018). Smart Packaging: Opportunities and Challenges. University of Liverpool & University of Northumbria, Department of Mechanical and Construction Engineering & Division of Industrial Design. Liverpool: Elsevier.

Choudhury. (2018, April 05). Top Benefits of Smart Packaging for Packaging Companies | Infiniti Research. Retrieved from Infinity research.

Emprechtinger. (2019, April 18). 5 things you should know about smart packaging. Retrieved from lead-innovation.com.

Fedex. (2020). Tracking Technologies Are the Cornerstone for a Competitive Supply Chain Strategy. Retrieved from Fedex.com.

FreightPOP. (2019, September 3). Barcodes, QR Codes, & RFID In Supply Chain Management. Retrieved from freightpop.com.

Hou, L. &. (2016). The Application of NFC Verification System in Warehouse Management System. South China University of Technology, School of Computer Science and Engineering. Guangzhou,: Atlantis Press .

impacx. (2020). What is smart packaging and its benefits? Retrieved from impacx.io. Jules. (2020, April 8). warehouse automation 101: a complete guide. Retrieved from

easyship.com.
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primarypackaging.com.
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Novi Sad, Faculty of Technical Sciences., Department of Graphic Engineering and

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