What’s the Risk of Brexit in the Global Distribution Landscape? 

Brexit was and remains a major risk to the global supply chain, but now, Brexit’s pre-existing disruptions will be put to an even bigger challenge in the wake of the coronavirus. As reported by Natasha Bernal of Wired: 

“The supply chain is resilient and capable of coping with demand,” says Andrew Potter, a professor at the University of Cardiff who specializes in logistics and transport. “Where the problem will come is if other people are infected and there will be fewer people going in [to work]. If you start to have a situation where you have to quarantine distribution centers for a longer period of time or there is a drop-off of the workforce, that’s where you’re going to see much more issues in the supplies coming through.” 

Since Brexit’s impact is still in infancy, the UK supply chains lacked much of the preparedness activities needed to handle the massive swell in consumer demand amid panic buying, but there might be an opportunity to learn something from this event. Britain could be faced with added tariffs and surcharges to meet basic demand regardless of whether those products have already become part of the list of in-demand items in response to the coronavirus. 

Potential Opportunities to Drive Higher Profitability Despite Brexit 

Supply chain leaders can secure profitability and supply chain stability despite Brexit, but the coronavirus adds a new level of uncertainty. As customers have grown to push for more products and put an immense burden on the supply chain, the whole system sits on the cusp of collapse. Months of Brexit preparation among UK-consorting businesses helped to build up supplies and warehoused goods in advance of the perceived disruptions. With the coronavirus rapidly spreading, those supplies will undoubtedly become central to the global response. It might seem odd, but the measures undertaken to shore up supply chains around Brexit may have a slight protective effect against the coronavirus and help improve the global disruption landscape. 

How to Safeguard Your Supply Chain From Brexit and Other Risks 

The writing is on the wall for the supply chains of the UK. Brexit is here, and the coronavirus is continuing to plague the planet. Instead of throwing in the towel, supply chain leaders need to take drastic steps, including: 

• Reassure the workforce, if not increasing it temporarily, to fulfill more orders.  
• Improve operational efficiency through AI and machine learning.  
• Avoid unnecessary software changes during the tumultuous period.  
• Start evaluation of processes that prove inefficient to handle the changes caused by Brexit and the coronavirus. 
• Start thinking about how to better improve home delivery. 

The last step is the most important, as noted by Bernal: 

“It [supply] will eventually run out. In most cases, it won’t run out this week or next. You’re probably looking into a situation in April. We could end up with this kind of perfect storm where just as inventory starts to run low, people stop venturing out to buy things. And therefore, your whole world becomes a home delivery model.” 

Brexit and the Global Distribution Landscape Will Affect Your Supply Chain Ability to Succeed 

There was a time when Brexit seemed like the gravest threat to the global supply chain. However, the coronavirus has fueled a resurgence in the global supply chain and fears of the proverbial supply chain apocalypse. With that in mind, supply chain leaders that take extraordinary steps to secure more capacity, avoid out-of-stocks, and embrace digital transformation during the uncertainty have an opportunity to come out as winners down the line. Learn more about the ways your organization can reduce the impact of Brexit, the coronavirus, and any other supply chain disruption event by contacting Veridian online today. 

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Signs That You Might Need a New Fulfillment Strategy

Warning signs of a strategy on the brink of collapse include:

• Lengthy product cycle times.
• Poor replenishment and reordering of inventory.
• Limited visibility in procurement.
• Higher freight spend.
• Inability to manage laborers and workflows.

Indicators of a Strong Strategy

A strong distribution fulfillment strategy must enable continued scalability, agility, and profitability. Key indicators that your strategy is working include:

Strong, Lean Inventory

A strong inventory is a benchmark for a working distribution fulfillment strategy. Without inventory, your strategy is immediately on the back foot. If you plan to fulfill orders in-house, you must have the inventory available immediately.

If outsourcing your distribution fulfillment strategy, your inventory needs to be with the provider who is distributing goods on your behalf.

Either way, if you have a strong inventory in place, it’s the first sign that your strategy is working.

Well-Stored and Organized Inventory

Inventory storage and organization is key to the success of any distribution fulfillment strategy. It ensures that your goods are secure and protected while enabling you to track what is available to ship to your customers.

If your warehouse is well-stocked, organized, and easy to navigate for order processing, it’s another good indication that your distribution fulfillment strategy is operating as it should.

Quickly Processing Orders

If you are processing orders quickly, your strategy is working to perfection. It’s a good sign if your distribution fulfillment strategy has clear instructions on which materials should be used to pack different products, and packing slips and labels are consistently added to ensure that there are no distribution errors once goods leave your storage facility.

Smooth Shipping Processes

Consistently meeting despatch and delivery deadlines is another key indicator that your distribution fulfillment strategy is working. Partnering with reliable shipping firms for national and international distribution is a smart way to keep to your shipping schedules and meet deadlines consistently.

Factors to Consider That Keep Your Distribution Fulfillment Strategy Working

Now that you know the signs that your distribution fulfillment strategy is working, how do you keep it that way? Here are the top things to consider:

The Location of Distribution Centers

While the size of your storage space matters for maintaining inventory levels, the location of your distribution centers is a determining factor for fulfilling orders. Your customers demand faster delivery at ever more affordable costs.

There are several ways you can keep your distribution fulfillment strategy working when it comes to location, such as:

• Urban fulfillment centers, which will allow you to quickly and affordably ship to customers in bigger cities with larger populations.
• Store fronts-as-a-distribution center, which maximizes omnichannel value and keeps all inventory in mind.
• Spread inventory across multiple locations, which will allow you to distribute goods within close proximity to your customers.

The more distribution fulfillment centers you have in proximity to common shipping destinations, the more you can leverage ground shipping. Remember that ground shipping is considerably more cost-effective than air expedited shipping and much faster than shipping from greater distances.

Leveraging Technology

Technology integration will help to future-proof your distribution fulfillment strategy. Software implementation and optimization allow you to improve your supply chain systems and enable omnichannel fulfillment.

You can better manage your orders and track essential information, including inventory quantities, which will help you ensure that you can fulfill orders across multiple locations.

Free Shipping

Free shipping as part of a distribution fulfillment strategy is becoming more prevalent and essential to customer satisfaction. Reducing shipping times and delivery costs will attract more customers.

Offering free shipping can increase customers’ order and retention rates, but bear in mind that it can be expensive, especially if you have a high return rate.

Get the Help You Need With Your Distribution Fulfillment Strategy

Strategy is everything in successful supply chains and efficient warehouses. Knowing when things might go wrong, recognizing what goes right, and recognizing the top considerations to continue to build a better strategy, your organization can attain lasting success. For specialist help with your distribution fulfillment strategy, talk to Veridian. Book a consultation today.

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Challenges of Quick Ship Order Fulfillment

The leading obstacles of quick ship order fulfillment include:

• Warehouses lack the human resources to handle sudden changes in demand. Increases in demand without planning will lead to delays in shipping.
• Consumers may prefer faster shipping, but the question remains. Do they need it enough to pay for it?
• Failure to utilize integrated systems will contribute to areas of poor visibility and miscommunications. Such shortcomings will alienate consumers.
• Automated systems still require a human component, even if only for reprogramming.

The Benefits of Quick Ship Standards

The leading benefits of implementing quick ship standards in your organization, says Daniela Forte of Multichannel Merchant, include:

• Utilizing quick ship standards increases the productivity of your team.
• Faster shipping improves competitive advantage by 85%, compared to those using traditional shipping strategies.
• Quick ship standards build trust, rapport, and reliability among business-to-business (B2B) and direct-to-consumer (D2C) consumers.
• Companies using quick ship standards achieve year-over-year sales increases and a 200% increase in sales conversions.  

How to Create and Deploy Quick Ship Standards

Warehouses and supply chains have a common goal: move more product faster and cheaper, a basic premise of quick ship standards. However, the path to implementation is not always the easiest to realize. Those that wish to develop and deploy measures should follow these best practices:

1. Know your customers. Although data suggests that up to 30 percent of e-commerce purchases are returned, reality reveals approximately 10 percent of online purchases are returned without requesting a replacement.
2. Give customers options. Since 85% of online purchases are based on availability, not customer desires, an item being listed as “out-of-stock or on backorder” will lead to lost conversions. More importantly, consumers are more likely to go to your competitor—Amazon! Moreover, consumers may prefer to wait on a lengthy shipping process when it is free, having delayed shipping to combine items to fewer packages, or paying a premium only for faster delivery.
3. Consider handling and shipping costs in all decisions. Any decision affecting operations will impact shipping efficiency. Shippers should always consider the impact on handling and shipping before making changes to operations. 
4. Outsource fulfillment to third-party marketplaces. Sometimes, it is easier to let someone else handle the storage and fulfillment of your inventory.
5. Integrate warehouse and supply chain systems. Integrating systems eliminates uncertainty and inconsistencies in applying data to understand and improve operations.
6. Take advantage of robotics and automated systems to speed fulfillment. As noted by Schafer in “Get Ready for the Nextgen E-Commerce Automation Revolution,” automation is much more than merely sending a system to collect an item. It is up to workers to pull tubs, ensure enough containers are available, authorize payment of reorders and more. Thus, deploying quick ship standards that account for both discrete and non-discrete systems (such as combined human and automated resources) are essential to faster order fulfillment.

Optimize Your Fulfillment Operation With the Right Quick Ship Standards

The right fulfillment strategy will reduce labor costs, increase employee morale, and enable competitive advantage. Of course, it all relies on having the processes and technologies in place to gain end-to-end visibility and apply data accordingly. Find out what your organization needs today to implement quick ship standards by contacting Veridian online today.

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Supply Chain Executives Are Increasing the Number of Distribution Centers to Meet Demand

The number of distribution centers in operation has increased dramatically. In addition to building new facilities, traditional brick-and-mortar locations have been transformed into distribution centers, as exhibited by Sam’s earlier this year. The increase in distribution centers is meant to provide an extra layer of security for fulfilling more orders around the globe. Unfortunately, differences in the type of WMS used may result in bottlenecks, miscommunications, and even wrong orders fulfilled.

More Distribution Centers Have a Greater Risk

More distribution centers can help with demand for more products, but believe it or not, many manufacturers continue to use manual, labor-intensive processes for handling their operations, explains Eric Allais of Inbound Logistics. Manual processes result in higher overhead expenses and diminish the ability of a company to compete with Amazon’s speedy, two-day, if not next-day, delivery service offerings. A modern-day WMS may be more affordable than maintaining existing systems, and this is especially true for companies still reliant on Excel and paper-based systems.

Tips for Successful Deployment of A Modern-Day WMS 

Supply chain leaders can reduce disruptions and streamline deployment by following a few suggestions, reports Jim Laverty of Supply Chain 24/7, including:

1. Create a dedicated change and integrated management team. The change and integration management team are responsible for overseeing and managing the selection and implementation of a modern-day WMS. The word, integrated, is used in tandem to describe the need to blend all departments into the process and integrate systems as well. This streamlines implementation and helps to prevent unnecessary delays or added costs.
2. Use the system for a trial period of at least three months. Selecting a trial period for a modern-day WMS is a great way to see how the system functions and its benefits in real-world applications. However, any trial of a new WMS must be mindful of potential limitations that exist as the system is brought online and integrated with existing systems.
3. Adjust business rules, not system functions. It’s easy to decide to customize and modify an off-the-shelf solution to mirror past systems, but this a bad idea. Supply chain leaders want to improve operations, not reflect the problems of the past. Instead of trying to modify the system to meet unique, past needs, consider adjusting business rules and processes to match new system functions and capabilities.
4. Take advantage of all the training and education resources available. Modern WMS vendors have an arsenal of training resources and programs available to help supply chain executives and managers train workers on new systems and adjust to their use. An active training program is a key to building support for new systems among existing team members.
5. Work with a supply chain systems integrator throughout the entire process. Since many issues and problems may arise in implementing a modern WMS, companies should consider outsourcing the process or at least partnering with an experienced, supply chain systems expert, like Veridian.

Get the Help You Need With Selecting and Implementing a Modern-Day WMS

A modern-day WMS can be a defining factor in the success or failure of your supply chain. Since selection and implementation can be a time-consuming and costly process, consider partnering with Veridian to help from start to finish. 

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Spurred by the record-breaking growth of e-commerce and rising labor costs, robots can have a very positive impact in distribution centers when implemented correctly.

E-commerce defines the state of global supply chains today. As Amazon continues to push toward dominance of all sales channels, more companies must tap into the power of automation to fulfill more orders. As explained by Clint Raiser of Logistics Viewpoints, e-commerce retail sales have grown at 15% annually, doubling in size since 2012. To meet rising demand, supply chain executives must begin considering new ways to increase the capacity of their existing facilities.

Why Do Companies Fear Distribution Center Robots and Their Implementation?

Distribution center robots are a force in the Amazon powerhouse, reports the Association for Advancing Automation. When Amazon purchased Kiva robots, distribution center robots became the new “shiny object turned real-world effective object” of e-commerce fulfillment. Robotics provides a boost to distribution centers and warehouse managers seeking ways to increase capacity and improve efficiency in critical areas. Implementing robotics might sound easy, but it does require standardized systems and integration of existing systems. Anyone who has worked in a distribution center knows that exceptions arise constantly. Each exception must be carefully designed, developed, and tested to ensure that the robot, the warehouse management system (WMS), and the physical situation all stay in sync.

Another major problem for businesses looking to embrace the use of robotics goes back to basic economics; its impact on jobs. While robotics have resulted in some job loss, the case studies of Amazon, as noted by The New York Times, reveal that Amazon has added more than 80,000 jobs since they began adding Kiva robots to their distribution centers. The robots take care of arduous and repetitive tasks, leaving the people to work on more mentally challenging tasks. The net result is very efficient distribution centers that can fulfill Amazon customers’ orders quickly and cost-effectively. It’s a winning equation that has enabled Amazon to become the leader in the rapidly-growing e-commerce sector.

How to Successfully Implement Robotics in Your Distribution Center

Formerly Kiva robots, Amazon robots are no longer for sale to third parties, but that does not mean a company cannot take advantage of other robotics manufacturers. To leverage the benefits of robotics in the distribution center, managers should follow these best practices:

• Improve data transparency and quality. The blistering speed of the rise of the Internet of things (IoT) has contributed to a surge in the use of data for machine learning and autonomous applications, like robots.
• Bring disparate systems together. According to Angel Gonzalez of the Seattle Times, systems alignment is essential to leveraging gross and fine movements from robotics to human workers.
• Re-assure your workforce. Your workers are going to fear the implementation of robotics. Reassure your employees, who may be concerned with job-loss or wage-reductions. Explain the safety and economic benefits of the implementation of distribution center robots and emphasize the new opportunities implementation will bring.
• Measure performance. Any change to standard warehouse operations must be measured to ensure its profitability and viability. Track savings and performance before, during, and after implementation of robots.
• Engage with experts to guide you through the process. Automating a distribution center is much more complex than just purchasing the best robots. Third-party resources, such as Veridian, can help ensure the successful implementation of warehouse automation.

A Bird’s-Eye View of Success After Implementation

Successful implementation of distribution center robots should mirror the guiding principles behind the founding of Kiva Robotics, as shown by Supply Chain 24/7, resulting in faster fulfillment, more efficient replenishment strategies, decreased order inaccuracies, on-demand scalability, unrelenting product organization, and robust profitability.

Humans, robots, and all systems, including the warehouse management system, should work in tandem and share information. If your organization is considering implementing distribution center robots, turn to Veridian and leverage their expertise to answer your questions to help you navigate the process of robot vendor choice, integration of systems, and implementation of new software necessary to work at peak efficiency. Click the button below to schedule a time to speak with Veridian to find out more today.

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