Last Mile Delivery – Challenges and Strategies

While the supply chain consists of several stages, the last mile delivery (LMD) is one of its most crucial steps. In light of the recent eCommerce boom, last mile delivery has gained more attention and importance from companies and customers alike. Supply chain managers are implementing new strategies to enhance last mile delivery and improve overall efficiency.

Last mile delivery involves the movement of products from the warehouse to the customer’s doorstep. LMD consists of three steps: delivery assignment, product scanning, and final delivery. After products arrive in the warehouse, they are categorized and divided into distinct task assignments based on delivery routes.

During the product scanning step, warehouse staff ensures that all products are trackable, reducing the risk of lost shipments. Warehouse staff scan outgoing products then load them onto delivery trucks. Finally, delivery personnel follow their task assignment and deliver the specified products to the customer.

In 2020, eCommerce sales increased by 55 percent during the first seven months of the year. The eCommerce boom engendered a spike in online shopping exceeding $400 billion. This increase in online shopping altered customer expectations about delivery dates.

Customers typically look for a fast, safe, trackable delivery system. On the other hand, companies approach LMD as a costly challenge. Today, many customers expect their orders to be delivered within three days while others search for same-day delivery options.

However, companies struggle to meet the overwhelming demand, especially since LMD can comprise up to 50 percent of total delivery cost. LMD is an expensive part of every company’s shipping costs because it includes delivery vehicles, fuel, and human labor costs.

Furthermore, companies face issues related to LMD efficiency and transparency. With innumerable orders made every minute, companies tackle the challenge of delivering an immense volume of deliveries without wasting human and financial resources. Additionally, customers keenly follow their shipment’s tracking status, requiring companies to be completely transparent about delivery status.

Supply chain managers pursue the latest LMD strategies to improve the speed and efficiency of their operations. For example, some companies are resorting to a crowdsourced delivery model. Instead of being responsible for LMD from start to finish, retailers can now shift to driver-based ventures such as Uber to reduce their shipping costs. Crowdsourced delivery also benefits customers who can now flexibly schedule deliveries and rely on GPS technology to precisely track their orders in real-time.

Smart technology is another major game-changer for LMD. Radiofrequency identification (RFID) tags enable companies to offer customers a more precise tracking system for shipments. The tags transmit data in radio waves to RFID readers in warehouses to notify retailers of shipment location.

The power of technology can also improve other aspects of the LMD process. Robotic delivery is a promising approach that can solve labor issues. Companies spend the bulk of their LMD costs on labor. Companies can now rely on drones and delivery bots to save money with robotic technology entering the scene. Amazon has already invested millions in self-driving cars as an alternative for the delivery personnel. The investment would not only be a cost-effective LMD strategy, but it can also make deliveries safer, especially instead of the current coronavirus pandemic.

from WordPress https://ift.tt/3yKhswL
via IFTTT

CSCMP Collaborates with MIT on 2021 Sustainability Report

The Council of Supply Chain Management Professionals (CSCMP) is a membership organization dedicated to advancing supply chain management. Its efforts focus on important aspects of the profession, including certification, education, and research.

Founded in 1963, the Council of Supply Chain Management Professionals provides professional development opportunities for its members. For example, its annual EDGE conference brings together supply chain experts from all over the world to explore the latest business practices.

SCPro certification is CSCMP’s official certification program which examines an individual’s skill to assess business challenges and develop the appropriate supply chain improvements. The program consists of three levels. Level One is a multiple-choice exam focusing on the eight elements of supply chain management. Meanwhile, Levels Two and Three evaluate practical skills through case studies and a capstone project, respectively.

Additionally, the CSCMP offers members e-learning courses covering key topics in supply chain management. Members can access the courses on the organization’s official website. Current courses include an introduction to the supply chain risk mitigation process, international sourcing, and export preparations. Upon completing e-learning courses, members are eligible to earn continuing education (CE) credits.

The CSCMP complements its certification and education pillars with intensive research initiatives. The organization’s Research Strategies Committee considers research proposals that aim to enhance supply chain management.

Sustainability is one of CSCMP’s core values. The organization advocates for sustainable supply chain management (SSC) based on environmental and socially responsible decisions. Its own SSC Committee educates professionals on the importance of sustainable approaches to supply chain decision-making. The CSCMP partnered with the MIT Center for Transportation and Logistics on a 2021 State of Supply Chain Sustainability research project. The project includes an international survey tackling company commitment to sustainability efforts in supply chain strategies during the pandemic.

The 2021 CSCMP-MIT report showed that most companies maintained their commitment to supply chain sustainability despite the COVID pandemic. The researchers surveyed a total of 2,400 supply chain professionals in late 2020. Survey questions addressed specific key areas related to sustainability investment, such as employee welfare, climate mitigation, and renewable energy.

For instance, researchers found a 10 percent rise in survey participants who disclosed that their companies invested in human rights protection and employee safety. Similarly, the number of respondents who highlighted their company’s focus on supplier diversity, equity, and inclusion increased by 5 percent. Other survey questions emphasized company efforts regarding climate mitigation and renewable energy. While the latter scored 6 percent higher than in 2019, the former suffered a 6 percent decrease.

Published in July of 2021, the report demonstrated that around 80 percent of survey participants stated that their company’s sustainability efforts stayed the same or increased since the preceding year. Conversely, 9 percent stated their firms reduced sustainability-forward investment in 2020.

These findings differed based on company size. Large companies with over 1,000 employees prioritized their sustainability goals, whereas most smaller companies scaled back their financial investment in green initiatives during the pandemic. The report discusses this discrepancy, emphasizing that financial resources, which were largely strained due to the pandemic, determined a company’s commitment to sustainability.

from WordPress https://ift.tt/38jkGN1
via IFTTT

Qualities of the 21st-Century Business

The business landscape has evolved tremendously in the past two decades. With technology as a catalyst, entrepreneurs have seized opportunities and leveraged their knowledge and expertise to build successful companies online and offline. Even with technological advances and new tools, every business owner must be an effective leader.

Today’s business professionals must possess qualities that are appropriate for the global business environment. Many business leaders find that soft skills, such as emotional intelligence, are important. These skills are essential to engage employees and remain competitive in the global business arena.

Business leaders must be prepared to work on the global stage. They must think strategically about managing a business from a global perspective by working with other professionals worldwide and learning about the practices and strategies used for transacting business in that country. Strategies related to approaching team projects, communicating with customers, and strategies dealing with the public should all be communicated to stakeholders.

Additionally, business leaders must build a leadership collective. Collective leadership establishes a few people as leads on a project so that one person is not responsible for every aspect of the project. By delegating leadership responsibility, the leader and the team benefit from collective decision-making, opening opportunities for new ideas and perspectives.

Professionals who can hold their own in their respective fields make it easier for the leader to concentrate on leading teams. Ultimately, a team of experts can produce far greater outcomes than an outcome in which the leader controls all facets of a project.

Good leaders must take the initiative to learn new things, which models to subordinates the need to step out of one's comfort zone. Leaders who are willing to learn new ideas or approaches prepare themselves for an ever-changing business climate.

At the same time, leaders should be active listeners. Active listening is being engaged in the discussion by providing useful feedback. Active listeners ask thoughtful questions and do not commandeer the conversation. This particular skill is important for drawing in customers, clients, and employees. In addition, listening gives leaders a chance to learn and understand what aspects of the company's operations need improvement based on what the customers have to say. It is also an essential skill to learn more about other competitors to better position the company in the market.

Good leaders recognize employees who contribute significantly towards achieving the company’s objectives. They reward people who are loyal, goal-oriented, hardworking, and team players. They must also recognize people who lack skills and give them access to education and training instead of punishment.

Leaders also must be open to taking calculated risks. Creating an environment in which teams can take risks allows teams to fail and learn from their mistakes. Leaders should encourage creativity, out-of-the-box thinking, and openness to change. These qualities give them the advantage of finding new to improve business operations, solve customers’ problems, and stay ahead of the competition. Leaders who facilitate a culture of innovation are more likely to attract talented employees and motivate people to improve continuously.

Peloton Collaboration Culminates

In 2019, Peloton officially became a publicly-traded company, valued at $4 billion. At the time, many wondered whether this fitness trend would last or prove to be a fad. But in 2020, the Peloton phenomenon took off due to stay-at-home orders that forced professionals out of the gym, requiring them to find alternative ways to stay fit.

The brand continues to expand, this launching a clothing line. The Peloton experience involves a stationary bike with an interactive display that allows users to exercise while receiving instruction from an instructor. The bike costs $2,300 and comes with a subscription that runs around $40 a month. The membership brings with it several perks, such as a display that tracks user achievements and enables connections to other participants around the world.

Since its inception in 2013, Peloton has expanded into offering fitness apps that do not require any subscription. In March of 2021, the company partnered with Adidas to create the Adidas x Peloton SS21, which features performance wear and lifestyle pieces. Created with the input of Peloton instructors, the line is expected to begin a long relationship between the two companies, one that will focus on providing consumers with clothes that make them feel comfortable.

The move was to attract consumers to the app-based monthly subscriptions based on referral codes for discounted apparel. Moreover, the collaboration with Adidas would bring more attention to the Peloton brand.

Beyond this focus, the collaboration wanted to put out a clothing line that empowered the Peloton community. For Peloton, this empowerment means that everyone who participates in the community is seen and that the line represents the company’s body-inclusive and gender-neutral ideals.

According to Ally Love, one of the fitness instructors who contributed to the line, Peloton is dedicated to improving participants' physical, mental, and spiritual health, and the clothing line is an extension of this idea. Simply put, Peloton wants people to feel good about their bodies and the clothes they choose to wear.

Since the clothes are for everyday wear, Peloton designed the apparel for functionality. The clothes comprise moisture-wicking fabric, are breathable, and allow for easy movement, regardless of the activity. Additionally, the material is designed to prevent chafing.

The clothing line is a throwback to fitness wear circa the 1990s. The 11-piece collection features tank tops, shorts, tights, crewnecks, joggers, hoodies, and sports bras, with pricing ranging between $30 and $85. As a part of bringing visibility to people of all sizes, the collection will also feature apparel from as low as extra small to 2X. The collection also features men’s, women’s, and unisex apparel.

The apparel is being sold at select Peloton and Adidas stores around the country, and so far, the company has identified a few top picks. The Women's Believe This Bra ($45), Women's 7/8-Length Heat Ready Tights ($85), the Gender Neutral Joggers and Hoodies ($70 and $80, respectively), and the Men's Training Shorts ($80) are some of the biggest movers, as of this March article.

To promote the launch, both Peloton and Adidas have engaged in a few activities. For example, Peloton advertised on-demand classes connected to the line, and Adidas has offered chances to win apparel.