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Transportation Management Systems Status Retained

Posted on by Keith McKinley

Manhattan Associates Inc., a supplier of supply chain commerce solutions, announced that it has been named a Leader in the Gartner Magic Quadrant for Transportation Management Systems for the seventh consecutive year.

With the growing complexity of supply chains, it has become critical for enterprises to better orchestrate transportation and distribution processes with a unified supply chain execution solution. Manhattan’s cloud-native technology, microservices-based architecture and unified platform provide supply chain and logistics professionals with a distinctive and advanced technology architecture that stands apart from legacy, portfolio offerings in the market. By doing away with silos, it delivers real-time visibility into shipments, offers predictive analytics for better decision-making, delivers the ability to automate manual processes and ultimately eliminates inefficiencies, which is a definite game-changer for companies operating in complex and demanding environments.

“We are delighted to be recognized by Gartner as a Leader in TMS,” said Bryant Smith, director of Product Management for Manhattan Associates. “This ongoing leadership reflects our commitment to continuous innovation, customer success, and excellence in supply chain execution. We deliver speed and value across various transportation functions and leverage advanced intelligence to solve the largest and most complex transportation challenges.”

Latest additions to the cloud-native Manhattan Active TM include GenAI capabilities to the platform, and unification of Manhattan Active Yard Management with TMS. It can already be combined with Manhattan Active Warehouse Management, and Labour Management providing companies with a complete, simplified, and unified supply chain execution system that continuously adapts and scales to business needs, and provides a single, comprehensive view of the distribution network, unlocking optimization opportunities that are impossible with traditional siloed offerings.

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Manhattan Associates Named a Gartner Magic Quadrant Leader

 

How Shippers and Carriers Optimise their Supply Chain

Posted on by David Priestman

In transport logistics, for both shippers and carriers, resources are finite: employee bottlenecks, delays in the yard, external influences on route planning and a lack of transparency force everyone involved in the transport chain to replan at short notice. So, how can shippers and carriers bullet proof their supply chain further? Philipp Pfister (pictured), Sector Vice President at Transporeon, a Trimble company, explores this further.

Continuous Supply Chain Pressures

It’s fair to say that uncertainty is the norm when it comes to working in logistics. And having the ability to adapt quickly in emergency situations is becoming one of the most valuable tricks of the trade. However, with ever changing geopolitical situations, environmental disasters, strikes, and personnel shortages, businesses in the transportation chain will be forced to continue modifying their plans at short notice. Although, when supply chain disruptions occur, it may be necessary to show data across various modes of transportation-and in different time zones-adding additional work and costs and wasting precious time.

Fragmented Systems and Networks

However, the key to solving supply chain disruption lies in digitisation, offering real-time visibility of all shipments across every mode of transportation. But isolated solutions still dominate in today’s modern supply chain, meaning that in a fragmented system, achieving end-to-end transparency or driving efficiency gains remains out of reach.

The more systems in the network have to work with each other, the more difficult it is to exchange information between participants. Large heterogeneous networks therefore require standards that can be recognized, interpreted and processed by different systems – a real challenge. Take telematics systems as an example. With dozens of providers, each tool produces a large volume of data. When shippers or forwarders work with multiple freight companies, systems for analysing different data sources must be integrated.

A resilient, scalable, and forward-thinking solution lies in a cloud-based, transportation management platform. A smart unified platform can bridge shippers, carriers, forwarders, and retailers, allowing them to connect across many channels. It analyzes incoming data from various sources, converts it to a unified standard, and creates a shared pool of data in a standardised format.

Better Interoperability at Dock and Yard

For example, with a dock and yard management tool, businesses can better predict when loads will arrive. In fact, what seem as ad hoc delays, such as strikes or traffic jams, may be part of hidden patterns that are revealed when artificial intelligence (AI) models analyse data over time.

Thus, the leading European logistics service provider LKW WALTER handles over 7,000 FTL (Full Truck Load) transports every day and books around 25,000 time slots per week adopted a smart dock and yard management tool with the aim to simplify the planning complex process for transport partners and drivers. This visibility enhanced the entire supply chain for LKW WALTER. Drivers can now plan their routes more effectively, with knowledge of petrol stations, service areas, and secure parking along the way. Moreover, when all parties — including warehouses — collaborate, time slots can be adjusted in real time. Early arrivals can take the slots of latecomers, and vice versa. This not only simplifies drivers’ tasks but also reduces long waiting times, helping to address the driver shortage problem.

How AI and Machine Learning lend a Helping Hand

By integrating interoperability, data analysis, and using AI and machine learning, companies can make the most efficient use of its resources, all while staying mindful of sustainability. Real-time insights help spot inefficiencies, so companies can reduce empty miles, train employees in eco-friendly driving, and combine transportation resources in smarter ways to cut down on emissions. The magic happens when this is done collectively and carriers can find loads for return trips within the transport management platform, reducing those empty trips.

Today, AI and ML play a significant role in procurement and quotation: Whereas a considerable amount of time was once dedicated to manual research and offer creation, the spot area offer process can now be automated. For instance, companies who utilise a smart autonomous quotation tool allows transportation and logistics providers to prioritise inbound transportation requests and deliver precise spot truck transportation pricing based on forecasted market prices. Quotes are generated according to users’ personalised strategies, with criteria such as margin requirements, transport type or equipment, distance, destination, and pickup and delivery windows. This module relies on a trained forecasting model, enhanced by data science and machine learning algorithms, which continuously improve over time by incorporating the results of previous offers. The more data is transmitted and shared, the more accurate the algorithms become over time.

From freight procurement to transportation processing, dock and yard management, and payment audits, advanced digital solutions powered by AI are already there to help solve specific challenges in logistics. Data hubs on neutral platforms provide valuable insights into logistics processes, market developments and CO2emissions, while visibility tools ensure transparency in supply chains. The challenge is to achieve a global awareness of the need to promote interoperability beyond simple connectivity.

By overcoming technical challenges, setting standards, and enhancing data quality simultaneously, the industry can optimise supply chain interoperability. This enables all stakeholders to concentrate on the key tasks at hand — transporting goods and production materials — and increase customer satisfaction.

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Transporeon Reveals Data-driven Future of Transport Logistics

 

Navigating the Supply Chain Maze

Posted on by David Priestman

Aaron Geiger, Managing Director of Manufacturing and CPG/Retail for ORTEC, looks at Strategies businesses can deploy to optimize Last-Mile Deliveries.

Supply chain optimization has become a critical factor in maintaining a competitive edge. However, many companies still struggle to effectively implement AI-powered solutions for their supply chain. The disconnect often stems from a misalignment between C-level decision-makers and operational teams, leading to suboptimal results and missed opportunities for true optimization.

These are important decisions because a growing number of logistics professionals admit they aren’t optimized enough in their operations. Over half of respondents (52%) in a recent survey rated their organization’s current last-mile delivery planning effectiveness as below ‘excellent’ or ‘good.’ Additionally, the survey found that nearly 40% of respondents need to adjust delivery routes multiple times per day due to unexpected delays, emphasizing the pressing need for innovative solutions in logistics.

Understanding The Role of Software Optimization

One of the primary challenges in implementing AI and software solutions is the lack of a holistic view of the supply chain. Many companies focus solely on individual components, such as warehouse management or transportation logistics, without considering how these elements interact within the broader ecosystem. This siloed approach often leads to inefficiencies and missed opportunities for optimization across the entire supply chain.

Data quality and integration pose additional challenges. AI and machine learning algorithms rely heavily on accurate, comprehensive data to generate meaningful insights and recommendations. However, many companies struggle with data silos, inconsistent data formats, and outdated information, which undermine the effectiveness of even the most sophisticated software solutions.

Smarter Load Optimization

Moving beyond these implementation challenges, let’s examine the critical area of load optimization in warehouses and distribution centers. Many companies today are utilizing optimization software that focuses solely on downstream processes at the warehouse level. Even though the approach yields some benefits, it significantly limits flexibility and responsiveness to changing market conditions.

Forward-thinking companies are recognizing the need for more sophisticated software solutions that allow for upstream optimization. This strategy enables companies to make last-minute changes to orders, responding dynamically to shifts in demand or supply chain disruptions. By optimizing loading upstream, companies can better align their operations with real-time market conditions, improving efficiency and customer satisfaction while minimizing food waste.

A key component is the ability to perform dynamic builds, reconfiguring truck loads with proper ‘stackability’ to ensure each axle is weight-optimized while also considering the unique temperature control requirements of different products. These capabilities allow companies to maximize the number of pallets loaded onto trucks without risking fines during road checks or compromising product quality.

Many industries, including grocery as an example, face unique challenges in load optimization due to the various temperature control sections required in a truck. Traditional loading strategies based on the order of customer drops often result in inefficiencies, requiring the removal of several pallets at each stop to reach the varying temperature sections of the truck. These strategies not only increase delivery times but also risk compromising the temperature integrity of perishable goods.

Today’s more advanced load optimization software strategically orchestrates the loading of the trailer to address these challenges. These solutions consider product compatibility, determining which items should be safely stacked on top of each other in a pallet and within the truck. They also optimize the placement of goods in different temperature-controlled sections of the truck, minimizing the need to remove non-customer-specific pallets at each stop.

By implementing these advanced optimization techniques, companies reduce the number of pallets that need to be moved at each delivery point. Industry observers believe this not only improves efficiency but also reduces the risk of temperature fluctuations for sensitive products. The result is a more streamlined delivery process that maintains product quality and freshness while reducing operational costs.

Is Your Routing Truly Dynamic?

The final piece of the puzzle in supply chain optimization is dynamic routing. Many companies still rely on static routing methods, which lack the flexibility and agility required in today’s fast-paced business environment. The limitations of static routing become particularly apparent in the face of unexpected events, such as traffic disruptions, weather conditions, or last-minute order changes, all of which significantly impact the delivery of goods.

Dynamic routing offers a solution to these challenges by continuously optimizing delivery routes based on real-time data and changing conditions. This is particularly crucial in industries, where factors such as traffic, weather, and product freshness impact delivery schedules. Dynamic route optimization leverages advanced algorithms and real-time data to create the most efficient delivery routes, considering factors such as traffic patterns, delivery time windows, vehicle capacities, road conditions, and the specific temperature requirements of different product categories.

However, simply investing in dynamic routing software is not enough for companies. They need to build the right strategy to adopt and implement the technology effectively, which is where the disconnect between C-level executives and operational teams often becomes most apparent. While C-suite leaders may be eager to invest in cutting-edge routing software, operational teams need support in refining their processes before the software is truly effective.

By combining AI-driven insights with human expertise, companies will be positioned to make more informed decisions about customer service levels. Sometimes, this might mean adjusting delivery frequencies based on a comprehensive analysis of costs and benefits. For example, a company might decide to reduce deliveries to certain customers from four or five times a week to three, based on factors such as order volume, product mix, and delivery costs. The strategic approach to routing optimization leads to greater cost savings and improved overall efficiency without compromising product quality or customer satisfaction.

The logistics industry faces unique challenges in supply chain optimization, particularly in areas such as temperature-controlled logistics and product freshness. However, by leveraging advanced technologies and strategic thinking, companies can overcome these challenges and achieve significant improvements in their operations.

As the logistics industry continues to evolve, companies that successfully implement these advanced optimization strategies will be best positioned to thrive in an increasingly competitive and complex marketplace.

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How to Optimise your Shipper TMS Implementation

Posted on by David Priestman

In any software selection process, costs are a key consideration. In the case of a shipper Transport Management System (TMS), there are two sets of costs: recurring costs, which typically relate to the number of shipments flowing through the system; and one-off implementation costs. While recurring costs are more likely to correlate to volume, value and return-on-investment (ROI), it’s important for any shipper to understand, evaluate and minimise their one-time costs, while optimising their software for long-term value.

Elmer Spruijt (pictured below), VP, Global Sales, Descartes, explains what shippers need to know about TMS implementation costs.

Investigate your needs

Any shipper looking to acquire a transport management system (TMS) will be looking at how the various solutions on the market can optimise their operations. However, with the cost of a TMS anything from 30,000 EUR to 900,000 EUR (£25,000 and £750,000), it is key to have a clear understanding of the value and benefits you need your new TMS to deliver – and look at the costs in relation to the value created. Based on capabilities, related costs, and expected value you can make the right choice for your business, streamlining implementation and set up, and ensuring longevity of the system.

Shipper TMS Implementation

The main influencers of TMS implementation costs to consider, include:

1. Connectivity with carriers/forwarders

Automation is the key driver of operational benefits. Particularly for high-volume shippers an efficient and effective operation is essential. However, automation not only requires the setup of connections with internal systems like your ERP, but also with external carriers/forwarders for the booking/tendering of shipments; exchanging instructions; status messages and alerts; and invoicing. All of these factors should be included in any TMS you select. Yet, setting up these connections requires effort and cost, and if you work with several carriers/forwarders this can be significant.

Some TMS solutions have a published API which allows any external carrier/forwarder to connect their systems to the TMS. However, many carriers/forwarders are not willing or able to create the connection, and even if they are, they will most likely want to charge the integration cost to you. This makes having a TMS provider with a large, connected network and the ability to easily add new carriers/forwarders crucial to keeping connectivity costs under control.

2. Complexity of business rules

The more advanced shipper TMS solutions can handle many different scenarios (transport modes, different freight types, regional differences, etc.) which typically require configuration, while the more basic solutions often only allow for one process flow and set of rules with minimum deviations. If your current process for working with suppliers and carriers/forwarders is not supported by the TMS, you may struggle to use it effectively and fail to achieve the desired results.

The word here is caution, as many shippers can be inclined to choose a sleek, modern, and inexpensive solution, only to discover it doesn’t align with their workflow. The consequences are likely to include manual workarounds and even termination of the contract with the TMS vendor after a few months.

Almost all shippers need the ability to define advanced business rules in their TMS to automatically consolidate shipments, select the optimal transport mode, build multi-stop loads, follow routing guide logic, and automatically select the best carrier. Securing expert support during the initial implementation is essential for maximising the benefits of your TMS, although it does involve effort and expense. While companies want to keep costs to a minimum, implementation costs that configure and connect the TMS correctly will allow you to reap the benefits from the TMS for the next 10+ years.

3. Third-party solutions and involvement

A modern and complete TMS should handle all modes of transport; connect with all involved carriers/forwarders; automate the information exchange; and provide real-time visibility. However, some TMS providers still rely on third-party solutions to provide some capabilities, for example real-time visibility and parcel rate shopping/shipping. The need to involve third-party solutions and often third-party resources during the implementation adds complexity and requires building/configuring interfaces to facilitate data model alignment and data exchange. These will obviously not only impact the initial setup effort and costs, but also impact the future maintenance effort.

4. Project team expertise with the selected TMS

Some large ERP vendors, who also provide a transport management component, may rely on external partners to implement their TM solutions. With the complexity and different types and levels of functionality involved in a TM implementation, it may be the case that the project is staffed with individuals inexperienced in your specific requirements. Not only is this likely to take more time (and cost) to complete the implementation, there is also risk of a sub-optimal TMS configuration.

A project team experienced with your selected TM solution, and with demonstrable understanding of your business needs, will – in contrast – bring best practices and standards that can greatly reduce the effort and cost of setting up the TMS, while ensuring system configuration that will maximise your savings potential. How to save money on a TMS implementation before you start?

There are three fundamental ways to save costs:

1. Take the opportunity to consolidate the number of carriers/forwarders you are working with, or let smaller providers connect via a carrier portal rather than a direct API or EDI connection. This means they will need to manually accept shipments/loads while you receive automated updates in your TMS. Automated real-time visibility may still be available with those carriers through a separate connection to an integrated visibility platform like Descartes MacroPoint™.

2. Limit the number of solution vendors involved in your overall TMS. This will have the most impact in terms of implementation time, cost, and the required implementation team expertise. Having one team of true experts overseeing your complete solution will result in optimised process handling and a reduced risk of unexpected implementation complications and costs.

3. Beyond these external factors, the active involvement of your own team is essential. Having the right stakeholders (including key users) participate and reach consensus on the optimal processes, along with reliable IT support and a project manager from your side, will significantly influence project costs, timeline, and overall success.

Conclusion

Shippers that have implemented a TMS have indicated that the analysis and design phase is crucial to the overall project. Make sure that the right people allocate sufficient time to deliver a robust solution design document, as well as participate in acceptance testing which will minimise change requests, and timing delays due to bugs throughout the project. Optimising your TMS implementation by understanding and scoping your needs up front, examining ways to consolidate the complexity of the project, and ensuring the right stakeholders are involved in each step of the process will help ensure that both your one-time costs are limited, and you are setting yourself up for long-term value.

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Driving Digital Transformation for Cargo

Posted on by David Priestman

At cargo-partner, a group company of NIPPON EXPRESS HOLDINGS, INC., digitalization is key to shaping the future of logistics and enhancing the customer experience. The company has made significant strides in recent years by integrating advanced digital platforms and data management systems across its organization. Central to this digital transformation is the expertise of cargo-partner’s IT leadership, with women leaders playing an instrumental role in driving these innovations.

Streamlining Logistics Processes

cargo-partner’s commitment to customer-centric digital solutions is evident in its recent developments in IT systems and platforms. “We’ve always aimed to streamline processes and improve efficiency to deliver the best possible experience for our customers,” said Nadezhda Hauer, Head of Business Intelligence & Advanced Analytics at cargo-partner. “One of our key milestones has been the implementation of CargoWise across all global locations. This, alongside our proprietary supply chain management platform, SPOT, has enabled us to integrate data across systems and external data sources, giving our customers faster, more transparent services and better control over their shipments.”

Maximizing Customer Value with Salesforce Integration

But CargoWise is just one aspect of cargo-partner’s recent digital transformation efforts. Liandre Vasco, Team Leader IT Sales Applications, has been instrumental in maximizing customer engagement through Salesforce integration. “Salesforce has allowed us to create a 360-degree view of our customer relationships,” Liandre Vasco explained. “This enables us to proactively address customer needs, enhance communication, and ensure that we deliver personalized, responsive service – critical elements in today’s competitive market.”

Enhancing Financial Operations for Seamless Business

On the financial side, Anna Nowak, Team Leader of Finance Applications, has led efforts to optimize financial processes through digital tools. “We’ve leveraged advanced digital invoicing solutions to streamline billing and payment processes, which have directly benefited our customers by improving accuracy, transparency, and speed,” Anna Nowak said. “These innovations not only support our internal efficiency but also enable us to provide faster and more accurate billing for our customers, in many cases integrated forward with the customers’ ERP.”

Fostering Passion and Confidence

At cargo-partner, fostering gender balance and empowering women to excel in IT are priorities embedded in the company’s organizational culture. Yet, challenges persist, not only within the industry but also within the mindset of potential candidates.

“Our biggest hurdle is that very few women apply for IT positions, and when they do, they often aim lower than their experience warrants,” Nadezhda Hauer explained. “Women need to stop waiting, stop doubting, and start stepping up. Passion is the key. If you love the work, you belong here. Women often try to check every box in job descriptions before applying. But that’s not the point – growth comes from challenging yourself. I’ve seen women diminish their knowledge in interviews or undervalue themselves during salary negotiations. This needs to change. As leaders at cargo-partner, we recognize and address these gaps.”

The IT field offers boundless opportunities, flexibility, and pathways for growth. At cargo-partner, teams across regions already achieve gender parity or even majority-female representation in areas like data processing. “Historically, these roles were undervalued. Today, they’re pivotal, and women must realize they belong in every corner of the IT landscape,” Hauer emphasized. By fostering a diverse workforce, cargo-partner is not only enriching its work culture but also ensuring that the company remains innovative and adaptable to the ever-changing needs of its customers.

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The Transformative Impact of AI Tech Adoption in Logistics

Posted on by David Priestman

In the ever-growing and highly competitive logistics sector, automation has become indispensable, with the latest innovations in the form of Artificial Intelligence (AI) transforming business dynamics more radically than ever before. The potential of this technology to enhance productivity is almost unfathomable, positively affecting both the profitability and efficiency of companies, as well as their ability to foster economic growth.

According to 2023 statistics from the US International Trade Administration, the UK AI market was worth more than £16.8 billion and is expected to grow to £801.6 billion by 2035, while government research suggests that around one in six UK businesses has embraced at least one form of the technology.

This growth in AI adoption opens up a range of possibilities for companies in the logistics sector. Taking the data that can be gleaned from connected devices, AI can transform it into useful insights to be managed by Robotic Process Automation (RPA) solutions. In this way, simple and repetitive tasks, usually performed manually by employees, are automated, which generates opportunities to embrace more strategic value-added tasks.

“With the help of Artificial Intelligence, we can accurately predict the demand for goods and services and generate possible scenarios from current market conditions. This will allow logistics companies to allocate resources efficiently, plan transportation routes and optimise inventory levels, which results in a significant reduction in the operating costs that presente a management challenge: fuel, labour and vehicle maintenance,” says Erick Martins (pictured), Solutions Consultant at Descartes Systems Group.

“For players in the sector, having a tool that offers predictability, while allowing them to reduce costs and overcomes possible hurdles in processes, is strategic and makes it an indispensable resource for the coming years.” Adding operational efficiency and improving customer experience. “The application of AI to logistics operations is a trend that should expand the frontiers of the sector in the coming years,” he adds.

The implementation of automation solutions in the areas of logistics and supply chain opens up a new world of potential for companies as they allow them to work with large volumes of data, analysing it in real time, spotting trends and anomalies – and making decisions that result in tangible business benefit.

Here, therefore, are four reasons to incorporate AI and machine learning-based connectivity tools:

1. High return on investment by reducing mileage, fuel consumption and driver time, thus increasing productivity. Thanks to machine learning techniques, more deliveries can be made with fewer vehicles, resulting in significant savings. These improvements not only affect the operational aspect, but also have an impact on the administrative processes of logistics, including customer service, customer retention, availability and visibility for all departments involved.

2. High availability combined with security. The Software-as-a-Service (SaaS) model is a trend that is increasingly being adopted by businesses. This approach eliminates the need to acquire, install and maintain software, as it only requires the payment of a monthly fee that allows access to various functionalities that are always updated and in compliance with current regulations.

3. Integration into a single system. Integrating all platforms with a single provider offers several advantages, such as the ability to prioritise tasks according to their importance, including route planning, last-mile execution, and delivery confirmation. The route planning tool combines information on customer restrictions, vehicles, service windows, and routes, as well as the definition of rest stops and other details that allow you to create an optimal route.

4. Global visibility of traffic (both customer and order). Today’s technology offers real-time visibility into trucks, routes, orders, and customers for all functions of every organisation. This makes it possible to compare what is planned with what is actually being executed, identify driver locations and evaluate their performance. In addition, analytical tools can be used to generate reports and dashboards, facilitating route management and adjustments.

“Given the speed at which the segment is growing and the increasingly demanding needs of consumers, AI will soon be part of a strategic approach within companies with the aim of optimising efficiency, improving service quality and maintaining competitiveness in a market as dynamic and agile as logistics,” concludes Martins.

Conclusion

The implementation of AI in logistics operations represents the next crucial step in the modernisation and optimisation of processes in this sector. With its immense potential, AI will be an indispensable tool defining the future of transportation and logistics. However, integrating these tools into existing systems and adapting processes to maximise their benefit is key.

It is essential to be willing to adapt, acquire new knowledge and skills to be prepared for the changes that AI will bring. Its strategic adoption will allow businesses to stay competitive and meet the demands of an ever-changing and evolving market.

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Automation’s Role in Alleviating Labour Shortage Pressures

Posted on by David Priestman

The pandemic has undoubtedly had a knock on effect across the global labour force, as many companies were forced to downsize operations or shut their doors, either temporarily or permanently. This jolt to business-as-usual, followed by a mass exodus of workers from the labour force during the Great Resignation and a hangover from Brexit created a ripple effect in the UK workforce that continues to impact employers today.

In fact, ONS data has revealed that nearly one third of UK businesses are experiencing labour shortages after an increase in economic inactivity post-pandemic. The number of workers has declined by 545,000 in what became known as ‘The Great Resignation’, a drop that contributed to worsening inflation and which also limited public service funding. Other factors, such as Brexit, have also resulted in a damaging effect, with research suggesting that the UK has lost over 330,000 workers due to Britain’s decision to leave the EU in 2016.

Andrew Tavener, Head of Marketing for Fleet Solutions at Descartes Systems, explains how automation can help alleviate the UK’s labour shortage pressures.

Recruitment SOS

As a result of this ongoing worker supply and demand imbalance, organisations are struggling to secure the labour, knowledge workers, and leaders they need to thrive—and logistics and supply chain-focused businesses have been hit particularly hard. According to a recent survey, 76% of supply chain and logistics leaders are experiencing notable workforce shortages in their operations, with 37% of respondents characterising the resource shortage as high to extreme.

Although competition for resources is an enterprise-wide issue, the acuteness of the labour challenge varies by organisational function. According to survey data, transportation operations (61%) and warehouse operations (56%) were hardest hit by resource shortages, from truck drivers to the fulfillment team on the warehouse floor, as companies struggle to meet customer demands with fewer workers.

While these areas are admittedly highly labour-intensive, 55% of supply chain and logistics leaders said knowledge workers are the hardest to hire—and they are becoming increasingly important as supply chain and logistics operations become more technology-enabled and data-driven.

Throw the extreme demands of peak season into the mix—only 9% of logistics and supply chain leaders said workforce shortages did not impact peak season performance at some level—and companies are feeling the pressure. And not only is the labour shortage affecting companies’ peak season, financial, and logistics partner performance, but it’s also taking a toll on customer service performance, with 58% of respondents specifying that workforce shortages have negatively impacted service levels.

How technology helps turn the tide amidst workforce constraints

Staring down the barrel of critical labour shortages, logistics-focused organisations are centering their operational strategies around automation and technology solutions to ease the resource burden. A recent study that examined which strategies and tactics companies are implementing to survive the current labour shortage revealed that 54% of the supply chain and logistics leaders surveyed are focused on automating repetitive tasks and non-value-added services —a logical step in reducing the resource footprint to perform at higher levels with fewer workers.

The survey also found that 50% of the logistics-focused organisations surveyed are leaning into centralising operations (e.g., centralised transportation planning). Typically executed through cloud-based solutions leveraged as shared services across the enterprise, this strategic approach helps increase operational efficiency without increasing headcount.

Tech in action

How does the goal of automating repetitive, low-value tasks and leveraging technology to drive efficiencies translate to the warehouse floor or to transportation operations? Driverless vehicles, robotics, drones, and soft and hard automation in the warehouse are all on the table for supply chain and logistics decision-makers but there are some clear productivity-boosting technology winners in the pursuit of mitigating current labour challenges in these areas.

To help drive productivity gains for labour workers, a late 2023 survey of 1,000 supply chain and logistics decision-makers across three sectors: 1) manufacturing, distribution and retail; 2) carriers; and 3) logistics services providers revealed that delivery route optimisation (54%) and driver mobile productivity (45%) solutions are the top technology choices. To mitigate the impact of the shortage of knowledge workers, automated real-time shipment tracking (53%) emerged as the top technology choice.

Indeed, for distribution-focused organisations, deploying automated technology solutions that optimise route planning and execution and mobile apps that help drivers perform more efficiently (and safely) on the road translates to productivity gains that reduce labour requirements.

For instance, strategic route planning solutions increase route density and asset utilisation, while reducing planning time and resources required to deliver maximum efficiency. In another example, intelligent dispatch and tracking software uses real-time GPS to ensure responsive, more consistent on-time delivery performance that helps to keep customer service standards high.

In the warehouse, some companies are turning to robotics and automated guided vehicles (AGVs) to eliminate the need for manual labour. On the back end, warehouse management systems (WMS) with barcode-based pick and pack workflows, multi-carrier parcel/LTL shipping automation and capabilities for real-time visibility into the order journey help companies minimise labour costs and fulfil more orders while enhancing the customer experience.

Perhaps even more importantly, automated logistics and supply chain technology solutions not only ramp up productivity but play a role in improving employee retention by simplifying and streamlining daily workflows for warehouse staff, planners, dispatchers, and drivers —a valuable advantage amidst ongoing labour constraints.

AI making waves

In the wake of the launch of ChatGPT, interest in Artificial Intelligence (AI) has surged and generative AIs have raised awareness and expectations related to AI technologies, as well as opportunities to bring new capabilities into the market. Supply chain and logistics leaders are also looking to AI to help improve operational efficiency and worker productivity. According to the survey, almost 30% of respondents are in the process of investigating AI technology while 53% are planning to deploy/partially deployed/fully deployed in their AI implementations.

As logistics becomes increasingly data-driven, the ability of AI to analyse vast volumes of data in the blink of an eye will continue to propel technology innovations. While AI-based capabilities like, for example, predictions and event detection in the context of route planning and transportation management, have been embedded in logistics technology for years now, the capacity of AI to continuously evaluate tens of thousands of data points and variables and make learned adjustments will help to further automate and accelerate logistics processes, eliminate redundancies and inefficiencies, and increase worker productivity.

Looking ahead

For supply chain and logistics leaders faced with the challenge of keeping operations profitable with fewer resources post Brexit, post pandemic and after the Great Resignation, technology is changing the face of the strategies, tactics, and best practices used. For labourers bogged down with repetitive and time-consuming low-value tasks and for knowledge workers spending an inordinate amount of time preparing data, compiling reports, or tracking shipments manually, automation is a gamechanger.

With technology-powered tools doing the bulk of the heavy lifting, workers can free up valuable productive time to focus on more meaningful tasks, while enjoying more simplified and streamlined workflows that enhance their daily work experience and, ultimately, help improve retention rates. From the C-suite perspective, the combined power of automating low-value, repetitive tasks and adopting technology-driven solutions spurs increased productivity, supply chain visibility, and top- and bottom-line performance while fostering more positive employee, partner, and customer experiences.

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Elevate Parcel Delivery with Advanced Routing Capabilities

Posted on by David Priestman

Pošta Slovenije, a leading provider of postal and logistics services in Slovenia, is set to improve its logistics and delivery operations through a strategic partnership with FarEye. This collaboration addresses Pošta Slovenije’s efforts to streamline and enhance its delivery operations.

Pošta Slovenije is aiming for a comprehensive solution, that will address accuracy, optimize order processing across multiple channels and streamline pickup and delivery operations. They are striving to enhance their dispatch team’s skills, refine delivery route adjustments and boost invoicing efficiency. Additionally, they sought to enhance mobile app functionality, reduce fieldwork errors and better integrate new delivery status updates.

To address these challenges, FarEye has proposed a dynamic solution designed to revamp Pošta Slovenije’s delivery framework. Key elements of the solution include:

Advanced Route Planning and Optimization: The solution will provide advanced planning and optimization tools for managing routes efficiently, supporting seamless transitions between networks, and adapting to changes in delivery attributes throughout the shipment process. It will also account for address segmentation, where each delivery post covers multiple areas, ensuring accurate and effective route calculations.

Enhanced Pickup and Last-Mile Delivery Management: The solution provides tools for managing pickups and deliveries, improving overall operational efficiency.

Integration of a Control Tower: This feature will offer real-time oversight of logistics operations, including the ability to handle exceptions and manage communications effectively.

Mobile App Enhancement: FarEye will improve the functionality of Pošta Slovenije’s mobile app, reducing fieldwork errors and integrating new delivery statuses.

Improved Sorting and Preparation Processes: The solution will streamline sorting and preparation tasks, supporting better handling and billing processes. Comprehensive Analytics Tools: The platform includes KPI dashboards and analytics tools to monitor performance and gain actionable insights.

By integrating these advanced technologies, FarEye aims to optimize Pošta Slovenije’s operations across various shipment types and support multiple networks with distinct delivery requirements. The partnership is poised to enhance overall customer satisfaction and operational efficiency.

“This collaboration with FarEye represents a significant step forward in our efforts to further modernize and optimize our logistics and delivery processes,” said Slavko Ovčina, CIO, IT Director at Pošta Slovenije. “We are excited to leverage FarEye’s AI-Powered last-mile technology to address our operational challenges and improve our service delivery.”

Kushal Nahata, CEO and Co-founder of FarEye, commented, “In Europe, the logistics industry faces significant inefficiencies, costing companies billions of dollars annually and impacting operations across the continent. With advanced route optimization, postal companies can save up to 20% in costs, improve efficiency, and contribute to sustainability goals by reducing carbon emissions. This supports the EU’s target of a 55% reduction in greenhouse gas emissions by 2030 and will help enable the EU to become the first climate-neutral continent by 2050, setting new standards for delivery excellence in the region.”

FarEye’s solution is designed to seamlessly integrate with Pošta Slovenije’s existing systems, ensuring a smooth transition and immediate impact on operational performance. The solution will be used across shipment types – Letter items and smaller packages, parcel shipments, logistics shipments, express shipments and for additional activities like emptying of mailboxes and signing of documents.

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Transportation Management Solution Streamlines Communications

Posted on by David Priestman

Descartes Systems Group has announced that Nynas AB, a manufacturer and supplier of specialty oil products and services, is using Descartes’ cloud-based transportation management system (TMS) to automate communications throughout the customer order lifecycle. The solution is used to communicate with carriers, freight forwarders, customs agents, independent inspectors and its main storage hub to support the types of shipments they deliver across Europe.

“We already rely on Descartes’ customs filing solution to automate compliance processes and wanted to build on this success in our transportation operations, as many stakeholders are rapidly moving from paper to digital transportation processes,” said Rogier van Hoof, Senior Lead Business Processes at Nynas.

“Using Descartes’ TMS, we’ve seen an immediate 20% reduction in order revisions through better quality data and less manual work. Where we traditionally relied on emails, phone calls and PDF documents to communicate any change in order data to multiple parties, the solution has eliminated tedious manual tasks in favor of direct and synchronized communication with the systems of our outside partners. In addition, our customers now have an easy-to-access overview of order details and shipment status.”

Part of Descartes transportation management solution suite, Descartes’ cloud-based TMS helps companies of all sizes automate transportation processes and reduce transportation-related costs. Using the system, businesses have a single platform for entering customer order data, managing orders through the shipping process (e.g., managing changes to pick-up dates, product types, product quantities) and automating communications with external supply chain participants from the time customers place their orders to the time they are invoiced for shipments. By eliminating manual steps to communicate with multiple systems and transportation partners, businesses reduce the risk of inaccurate data, increase productivity and accelerate the movement of goods to customers.

“We’re pleased our solution is helping Nynas to streamline communications across its transportation network,” said Elmer Spruijt, VP, Global Sales at Descartes. “Descartes’ global transportation technologies are used by diverse businesses worldwide to help fuel high performance, to make supply chains cost-effective by unifying transportation operations, and to streamline communications with transportation partners.”

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Körber Supply Chain Software Acquires MercuryGate

Posted on by David Priestman

Körber Supply Chain Software, a joint venture between Körber AG and KKR, and leader in end-to-end supply chain software solutions, signed a binding agreement to acquire MercuryGate International Inc., a leading provider of transportation management systems (TMS). MercuryGate is known for its strong capabilities in multimodal optimization and execution, as well as its expertise and capabilities in driving rapid implementation and time to value. The acquisition is a strategic move that extends Körber Supply Chain Software’s capabilities in delivering a comprehensive, innovative, adaptable and scalable supply chain execution portfolio.

The complexities of global supply chains continue to grow, and the need for flexibility and resiliency has never been greater. Operators demand ever-increasing adaptability and scalability in supply chain execution solutions to innovate and expand. By extending its portfolio of solutions across all supply chain execution operations, Körber Supply Chain Software aims to become a leader in managing the movement of goods from procurement to receipt and fulfillment to the end consumer, reducing planning silos, accelerating resolution of issues, and improving customer and business outcomes. Bringing Körber Supply Chain Software and MercuryGate together will enable customers to benefit from:

• Solutions that connect across inbound and outbound supply chain activities, improving cost efficiencies and customer experiences by optimizing placement, usage, and routing of goods.
• A resilient and reliable supply chain platform with visibility across inventory pools, enabling customers to identify growth opportunities as well as predict and rapidly respond to potential disruptions.
• Simulation capabilities to evaluate future supply chain strategies and understand ROI across their local and global business.

“Our customers navigate dynamic, volatile supply chain environments under increasingly high expectations for order fulfillment,” said Ed Auriemma, CEO of Körber Supply Chain Software. “With the acquisition of MercuryGate, Körber Supply Chain Software is poised to offer an unparalleled combination of advanced technology and deep industry expertise to create innovative processes to help businesses manage these challenges.”

The acquisition of MercuryGate will establish a critical pillar of Körber’s ambition to create a unified supply chain execution suite that can offer real-time optimization and collaboration across the supply chain. Customers will benefit from integrated processes across functions, faster and more accurate decision-making and the ability to mitigate risks and disruptions more effectively.

Stephan Seifert, Chief Executive Officer of Körber, said: “This acquisition illustrates our power to execute our ambitious growth strategy, substantially extends our existing supply chain software portfolio, and is a significant milestone to becoming our customers’ first choice regardless of their challenge. Furthermore, it is proof that our trustful strategic cooperation with KKR results in additional value for our customers.”

“The addition of MercuryGate’s multimodal, SaaS-based TMS to Körber’s supply chain software business will create a comprehensive, value-driving, supply chain offering for global industry leaders,” commented Joe Juliano, CEO of MercuryGate. “The combined company is positioned to deliver the broadest and deepest set of supply chain execution software solutions available worldwide.”

Peter Rottier, a Managing Director at Summit Partners, which first partnered with MercuryGate in 2018, added, “We believed that global supply chains and growing customer demand for shorter order-to-delivery times would support increased adoption of solutions like MercuryGate’s that are designed to help shippers and logistics providers mitigate the costs and complexity associated with transportation. It’s been exciting to work alongside the MercuryGate team as they executed against this vision.”

The transaction is subject to customary closing conditions and regulatory approvals.

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