Whether it’s automated warehouse equipment or integrated software systems, there’s a constant stream of trends affecting supply chain management today. Keeping up with these changes is essential in order to meet increasing customer demands.

What’s on the horizon for 2019? Here are some supply chain trends to focus on over the next twelve months.

Emerging Technologies

High-tech innovations continue to reshape every facet of the supply chain industry. Drones, artificial intelligence and highly developed robots are part of the next wave of technology making its way into warehouses and transportation.

Supply Chain Visibility

Ebbs and flows such as seasonal business have traditionally made it difficult to forecast supply chain workloads. Features such as the Internet of Things (IoT) and Big Data give managers real-time information they can use to accurately predict demand shifts and respond quickly to problems.

Sharing Economy

As retailers look for ways to be flexible enough to accommodate customer demand while keeping costs low, on-demand warehousing and logistics is seen as a viable solution. The sharing economy is projected to grow from $14 billion in 2014 to $335 billion in 2025.

Evolving Customer Channels

Change in customer channels has actually been an ongoing trend over the last few years. Traditional brick-and-mortar retail continues to move into direct-to-consumer, with 40 percent of brands now selling DTC. By the year 2025, DTC sales are expected to reach $130 billion.

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While many elements of the supply chain may change, one constant is the need for efficient, reliable and safe warehouse equipment. We offer a full line of electric tugs, movers and pushers to suit any application. Visit our website for immediate assistance from our friendly sales engineers.

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Technology has put more information than ever before in the hands of warehouse managers. Unfortunately, not everything is as reliable as quality warehouse equipment. Even the most knowledgeable predictions can fail to materialize.

How do you keep erroneous predictions from throwing operations off course? Follow these three helpful tips to be prepared for curves in the road.

Manage Costs Carefully

The boom in online retailing has been something of a mixed blessing. Sales have gone up, but profits are shrinking due to free shipping, competitive pricing and other costs of gaining customers.

– High-tech improvements are necessary but expensive, so focus on the long-term return on investment.

– Don’t be afraid to let shoppers bear some of the costs. Stricter return policies, free-shipping minimums and focus on high-value items are strategies to indirectly reduce costs while still providing customer satisfaction.

Maximize Square Footage

When is the last time you reviewed your warehouse layout? Do a careful analysis to identify dead space, optimize placement of high-volume SKUs and make any other changes needed to ensure full productivity of the entire footprint.

“Listen” to Your Customers

National news and market data provide an outlook on the general business climate, but it paints a picture in broad strokes that may not apply to your business. Take advantage of the detailed customer data that you have to watch for even slight changes that may indicate an upcoming positive or negative trend.

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The rise in E-commerce has resulted in customer demand for greater speed with less room for error. Reliable material handling equipment and accurate barcoding and labeling are necessities to stay ahead of the competition.

Here are the barcoding and labeling trends experts are seeing today. How does your system measure up?

Flexible Usage

Product demand, return volumes and seasonal fluctuations cause frequent changes in product slotting for maximum efficiency. Many barcoding and labeling systems are moving to materials that are easy to remove and reposition.

Advance Planning

When planning a warehouse layout, the barcoding and labeling process is often regarded as a secondary issue that can be handled on the fly. Putting it off until later can result in confusion, errors and delays. Make sure barcoding and labeling is part of the initial planning process for any new construction or renovations.

Color-Coding

Colored barcode labels are more visible, making them particularly helpful with tiered racking systems. Color-coding also provides consistency across a network of warehouses or distribution centers.

Environment-Specific

Different conditions present different challenges for barcoding and labeling. For instance, a label that works in ambient temperatures may be insufficient for freezer use. Consider the environment that labels will be used in and be sure they can stand up to the conditions.

Full-Service Suppliers

As warehouse space grows to accommodate inventory levels required for E-commerce, barcoding and labeling becomes more complex. Full-service suppliers can handle the project every step of the way, from planning and preparation to creation and installation.

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With Amazon’s far-ranging network of facilities, robust infrastructure and labor force of more than 600,000, it’s not far-fetched to compare the retailing giant to a self-contained country. Amazon has begun using its stature to wield influence among governments both here and abroad.

Continuing the parallel, “citizens” of Amazon are seeking to be heard on topics ranging from warehouse equipment to global warming. What issues are causing employees to raise their voices in protest?

Amazon Becomes a Political Force

Last year, Amazon CEO Jeff Bezos enjoyed a private summit with Canadian Prime Minister Justin Trudeau, and it was later announced that Amazon would open a new office in Vancouver employing 3,000 people. In the United States, Amazon caused a frenzy with its search for a city to host its second headquarters.

The “contest” was ultimately won by Washington, D.C. and New York City, although the latter eventually declined. It’s expected that a facility in the nation’s capital will give Amazon a stronghold for increased lobbying as well as efforts to obtain Department of Defense contracts.

Employees Flex Their Muscle

For their part, several Amazon employees are taking an ethical stand against certain products. Workers are joining civil rights groups such as the ACLU in objecting to use of Amazon’s facial recognition software for “authoritarian surveillance.”

In a development that bears watching, some Amazon employees are taking advantage of stock holdings in their compensation packages. As shareholders, they have filed a resolution demanding that Amazon create a plan to deal with climate change.

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Your company may not be the size of Amazon, but your employees deserve quality warehouse equipment. Visit our website and chat with our sales engineers about our line of electric tugs, movers and pushers.

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Our electric yard trucks are designed to make the job of shunting trailers easier and safer for workers of any age, size and gender. One industry group has joined forces with a tech company in an effort to make warehouses and distribution centers more accommodating for all truck drivers.

Changing Attitudes About the Driver Experience

In the past, shippers gave little if any thought to improving the experience of drivers who passed through their facilities. They believed that the practice of “turn and burn,” or loading and unloading trucks as quickly as possible, was more beneficial to the bottom line.

With today’s increased demand for transportation, high rates are eating away at shippers’ profit margins. Companies are finding that making their warehouses more attractive stops can result in them becoming a “shipper of choice,” which in turn can lead to lower rates.

Making Warehouses More “Carrier-Friendly”

Ellen Voie, president and CEO of Women in Trucking (WIT), sees an opportunity to help warehouses become more “carrier-friendly.” With the help of Dan Serewicz, co-founder of Dock411, Voie is gathering data in hopes of giving shippers incentive to make their facilities more welcoming for drivers.

Dock411 is an app that lets truckers share information about shippers such as hours of operation, loading times and driver amenities. The app also includes a simple three-question survey about treatment drivers receive at specific stops. Regular reports are provided to Voie, and she and Serewicz personally contact facilities that receive negative feedback.

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The rise of e-commerce has increased demand for automated material handling equipment in the warehouse and logistics industry. In particular, the field of robotics is becoming a primary source of solutions for a wide range of warehouse and distribution center applications.

Automation: The Key to Raising Productivity

As more purchasing is done online, order turnaround and delivery time becomes an important way for companies to set themselves above the competition. In addition, facilities are forced to keep greater quantities of SKUs in stock, making traditional methods of warehouse management less efficient.

According to a recent study by Allied Market Research, the global warehouse robotics market is expected to reach $5.2 billion by 2023. E-commerce currently surpasses even the automotive industry for the largest share of this growing market.

How Robots “Stretch” the Workforce

Robots are an ideal way to handle picking and other repetitive tasks so human workers are free to focus on activities that require more precise skills. This is a distinct advantage in light of today’s labor shortage, especially when warehouses need to ramp up for peak seasonal periods.

Loading docks are another prime target for the influx of robotics. Mobile robots designed to load and unload trucks, such as the ones from Bastian Solutions that debuted at the Modex trade show last spring, are well-suited to withstand extreme weather while lifting heavy loads.

Crystal Parrott, vice president of Dematic’s Robotics Center of Excellence, says the robotics industry is still evolving. Next steps include using artificial intelligence to refine robots for more complex tasks.

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As online shopping moves into the food and beverage category with grocery and restaurant delivery, a Boston-area start-up is taking the trend one step further. They’re combining robots and warehouse equipment to create “micro fulfillment centers” inside existing supermarkets.

Streamlining Grocery Delivery

In October, Takeoff Technologies is scheduled to kick off the first of what they project to be several micro fulfillment centers. The host store is yet to be named, but the center will occupy approximately 20 percent of the facility’s 50,000-square-feet.

Robots are sourced from Knapp, a leading warehouse and supply chain automation company. The mechanical “workers” will shuttle bins of merchandise to human counterparts, who will inspect the items for damage and assemble them into orders.

Benefits of New Technology

The micro fulfillment centers offer a number of potential advantages over the current online grocery ordering model:

– Orders can be ready for customer pick-up in as little as 30 minutes.

– The bin system means robots don’t require optimization to handle every item.

– Order-picking by robots is more efficient than using human workers to shop alongside in-store customers.

Humans and Robots Working Side-by-Side

Max Pedro, co-founder and president of Takeoff, says that their micro fulfillment centers can be operational within three months, as opposed to three years for traditional full-size warehouses. Pedro further explains that artificial intelligence and data science will be used to optimize product slotting in bins.

Takeoff’s platform is in line with the strategy of fulfillment centers across all industries, where human and robot workforces are being combined for their complementary strengths.

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Thanks to innovations such as our battery-powered tugger carts, supply chain technology has improved the physical efficiency of warehouse and logistics workers. Today, Amazon is once again in front of the industry with using technology to refine inventory management, a job long considered the exclusive domain of human retailing experts.

Amazon Expands Its “Marketplace”

During Amazon’s infancy, when they began to branch out beyond books, the company struggled to convince companies to sell their products through the online platform. Amazon decided to recruit the best and brightest of business-school graduates and retailing veterans to build their own retail team.

Spurred by that success, Amazon started developing their marketplace concept, spearheaded by Fulfillment by Amazon. With independent merchants able to sell their products on a completely self-service basis, the retail team became less valuable.

By 2015, marketplace sales exceeded retail sales while also generating twice the operating profit margin. While retail vendors once enjoyed preferred status, the playing field leveled as marketplace vendors began receiving the same perks and benefits.

Reaching New Heights of Data Accuracy

At the same time, Amazon rolled out an initiative known as “Hands Off the Wheel” in which demand forecasting, ordering and other inventory-related tasks were moved to algorithms. Initially, humans had the power to override the software, but that changed as the system achieved unprecedented levels of precision.

In what seems to be an inevitable move, the retail and marketplace teams are now merging. As customer demands continue to grow, less reliance on humans keeps Amazon far ahead of competitors such as Walmart and Target.

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In the highly competitive warehouse and distribution center industry, it’s more important than ever to minimize expenses and maximize profitability. Our electric material handling equipment helps you allocate valuable manpower more efficiently.

But that’s just a start. Here are some expert tips to reduce costs and optimize your bottom line.

Incorporate a Warehouse Management System (WMS)

How much do you really know about the effectiveness of individual employees? If you’re still using time cards and other old-school methods, the answer is, “not much.”

Warehouse management systems with labor management functionality offer reporting at a granular level that provides unprecedented amounts of data. All the information you need to spot problems is right at your fingertips.

Reduce Excess and Obsolete Inventory

– Discounts available with buying in bulk may be tempting, but it can actually be counterproductive due to increased storage costs. Review the warehouse layout and make any necessary changes to improve space utilization.

– Obsolete inventory also ties up capital and renders warehouse space unprofitable. Slow-moving items can be donated to charity, sold at a discount or disposed of in other creative ways that don’t result in a total loss.

Conduct Ongoing Tech Training

Access to technology isn’t enough. Workers need adequate training to ensure that they’re getting full functionality from tablets, scanners and other devices.

Establish a training program for both current and new employees. Online learning systems allow hands-on training and reduce costs of live training sessions.

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Warehouse managers are responsible for a wide range of tasks in order to keep their operation running as smoothly and efficiently as possible. While some leaders don’t mind overseeing employees and finding ways to encourage them, others would rather spend their time handling tasks, such as selecting new equipment for warehouses.

If you’re among those who don’t necessarily enjoy being in charge of others, you can still be an outstanding manager. The following tips can provide you with some insight on how to make the most of your skills.

Focus on Problem Solving

One of the most effective ways to ensure that your warehouse keeps running as efficiently as possible is by putting an emphasis on problem solving. Have workers engage in coming up with ways to handle problems that come up in day-to-day operations. Having challenges to face at work can provide workers with motivation to do their best on the job.

Delegate Leadership Tasks

When possible, find employees that have earned your trust by proving to be dependable and highly competent. Assign certain leadership tasks to these employees rather than having to handle all of them on your own. Giving these tasks to trusted employees helps boost morale in the workplace while also giving them a reason to trust and respect you.

Improve Communication

Having solid communication skills is one area that you can’t compromise on. If you struggle with communication, work on improving those skills in order to encourage your workers to put forth their best efforts on the job.

If you need high-quality equipment for warehouses that helps improve safety and productivity, contact DJ Products. We carry a wide selection of equipment that allows your workers to do their jobs more efficiently.

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