Morai-Logistics-Blog-season-for-third-party-logistics-providers

As the holiday season approaches and the expectations of efficiency and on-time delivery increases, 3PLs must optimize their solutions.

The Christmas holiday season provides many industries with the opportunity to significantly increase their revenue. By the end of this year, retail sales between November and January 2019 are forecasted to ‘top $1.10 trillion’. The reason behind the industries success can partly be attributes to e-commerce sales, which are also projected to increase 22% throughout this holiday season. In comparison to $110 billion in 2017, e-commerce sales are expected to reach $134 billion this year.

To ensure customers experience a positive shopping experience, companies are amping their game in a various ways. According to Deloitte, vice chairman of Deloitte LLP, Rod Sides, states

We’ve seen retailers continue to advance their approaches to shipping, delivery, in-store experiences and tech-enabled commerce.

Sides also defines those companies who will succeed this holiday season are those who exhibit ‘the right balance between innovation, experience and value.’

The holiday season for instance, is a prime time to shine for third party logistics providers (3PLs). By providing optimized solutions to help their clients optimize their customer journeys, 3PLs can leverage holidays to build relationships with customers.

This article by Morai Logistics discuss how 3PLs are an important service partner this holiday seasons.

Top Driver’s This Holiday Season

There are a variety of reasons 3PLs brace themselves for the holiday season. The retail sales industry is projected to prosper significantly this season, by a combination of ecommerce and brick and mortar. Consumers can complete all of their holiday shopping online, without even stepping foot into a store. An increase in convenience and accessibility also increases the ability for shoppers to purchase faster and more frequently. This places considerable pressure on supply chains to ensure:

  • On-time delivery
  • Transparency
  • Cost-effective rates
  • Personalization

However, despite the holiday season, the rise in consumer demand has been nothing short of new for 3PLs. Advancements in technology has forced organizations to compete within a saturated market of providers who offer similar services. This heightens even more during the holiday seasons as organizations must choose the best service providers for their customers. In addition to a peak in orders and next-day delivery, setbacks caused by weather can significantly impact the shipment lifecycle. Let’s take a look at the top reasons 3PLs are an important partner for organizations looking to prosper this holiday season.

Speed is becoming a primary determinant of consumer preference. By 2019, statistics show that 65% of retailers will offer same-day delivery. This transition from concept to standard practice requires companies to seek solutions that will ensure real-time operations.

Visibility

During the holiday season, setbacks in deliveries can disrupt the customer experience, especially when there is a lack of visibility. Once a consumer selects a product, they pay close attention to the shipment life cycle via tracking codes or order updates. It’s important for companies to choose organizations such as 3PLs who can offer a level of transparency that will keep their customers happy.

Efficiency

In addition to speed, another important factor that supply chains should focus on is efficiency. On-time deliveries are essential for companies competing in saturated markets. Aside from transparency, 3PLs also prioritize orders arrive as scheduled. Therefore, hiring service partners such as 3PLs is important to ensure consumers receive their product in a timely and efficient manner.

Inventory Management

For the retail industry in particular a large influx of in-store inventory is not ideal. 3PLs offer optimized warehouse management solutions and technologies that can effectively manage, track and store your stock.

Distribution Centers

E-commerce has made shopping accessible from anywhere across the globe, which increases the need to ensure consistency in order fulfillment. 3PLs often have many distribution centers spread across the country, which helps organizations house product closer to customers.

There is no denying that the holiday season is a busy time of year. Partnering with the right third party logistics provider is important for organizations looking to increase revenue and create a positive consumer experience.

Morai-Logistics-Blog-truck-platooning

Experts believe last-mile logistics can effectively build brand loyalty by significantly improving the customer experience.

From a global market perspective, immediate and fast delivery is becoming a critical necessity to a company’s success. In fact, a staggering 88% of consumers who participated in the 2018 Global Consumer Insights Survey, confirmed they would pay more for ‘same-day or faster delivery’. To an online shopper, the process of dropping product into a shopping cart and checking out seems relatively simple. However, the movement of transporting product from the manufacturer, to the distribution center, to the end user, is far more complex.

To differentiate themselves from the competition and build brand loyalty, companies, especially in the retail space, must focus on last-mile logistics.

Delivering to E-commerce Markets

Over the course of the past several months, Morai Logistics has highlighted a significant rise in e-commerce shopping. Statistically, this global market will continue to generate sales that reach an impressive $4.5 Trillion by 2021. Omni-channel retailing has also given customers the ability to purchase product across a variety of platforms and devices. When buying becomes more and more accessible, competition for customer loyalty also increases. Delivery has been linked to being a significant factor in motivating customer preference.

As mentioned above, today, almost 90% of surveyed customers would opt to pay extra for same-day shipping. This figure has significantly increased over the course of the last few years. In 2016, McKinsey found that nearly

25% of consumers are willing to pay significant premiums for the privilege of same-day or instant delivery.

This reinforces the growing need for companies to seek innovative delivery solutions to remain competitive and improve the customer experience. Shifting from traditional networks that include large parcel carriers, to last-mile delivery methods, has proven to be a ground-breaking move.

Last-Mile Logistics

To improve the customer experience, retailers are beginning to take a closer look at last-mile delivery. This is the final step in the delivery process and efficiency is critical in order to meet the rise in online purchases.  According to Datex, last-mile delivery is defined as,

…as the movement of goods from a transportation hub to the final delivery destination.

Business Insider describes this phase as ‘the most expensive and time-consuming part’ of the shipment lifecycle. However, it remains an important factor in improving customer satisfaction. To combat the inefficiencies of last-mile delivery, there are variety of solutions that transportation and logistics providers are focusing on. Datex outlines them as follows:

  • Robots
  • Local Delivery
  • Uber Delivery
  • Click-to-collect

Third Party Logistics providers (3PLs) are also leveraging these solutions in order to compete in an industry challenged with capacity crunches and driver shortages. There are a variety of benefits that help promote efficiency and access to real-time data. Backed by technology, last-mile logistics helps 3PLs ‘manage peak times, routes and costs’. In return, retail customers receive their packages on-time and in good condition, and shippers and retailers avoid unnecessary costs associated with inaccuracies and returns.

Brand Loyalty

To ensure customer demand and satisfaction in today’s digital marketplace, companies must seek innovative methods for transporting goods. In every organization, building positive brand loyalty should also be a key focus. Customers will pay for a better customer experience, and there is high ROI from investing in existing clients. According to Fundera, ‘43% of customers spend more money on brands they’re loyal to’.

When customers are provided with personalized solutions, they will be more inclined to return for additional business. Supply chains know that customers are demanding immediacy and transparency. Since 56% of customers exercise brand loyalty toward companies who “get them”, this should propel supply chains to invest in innovative last-mile delivery solutions.

morai-infographic-3-ways-iot-optimize-3pl-cover

The integration of the Internet of Things (IoT) can help third party logistic providers (3PLS) optimize their services to improve operations, transparency and the customer journey.

The Internet of Things (IoT) simplifies our day-to-day through the sharing of data between devices. It is a technological movement that has contributed to the digital progression of many industries.

The advancements IoT provides the transportation industry has caused disruption, leading researchers to believe that 3PL providers may become replaced. However, there are three ways that IoT technology will help 3PLs optimize supply chains for their customers.

This week we will focus our infographic on highlighting the way third-party logistics providers benefit from using IoT technology in order to bring their business, and their clients’ business to the next level.

IoT and 3PL Providers: A Glimpse at the Future of Logistics

morai-infographic-3-ways-iot-optimize-3pl-web

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in what we do as a 3rd party logistics provider? Then don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Morai-Logistics-Blog-relay-for-life

Morai Logistics raises $22,420 in support of cancer research and development by marching with members of the community at the 2018 Relay for Life.

Cancer remains one of the leading causes of death in North America. Last year alone, there were 206, 200 new cancer diagnoses in Canada. Furthermore, by the end of 2018 the number of estimated new cases in the United States will be 1,735,350‘. These figures reflect the urgent need for communities, industries and governments to support cancer research and development.

On Friday, June 8th, 2018, Morai Logistics participated in Relay for Life, an annual fundraising event founded by the Canadian Cancer Society. Alongside thousands of members of the community, our team marched together to help ‘fight back against cancer’. These initiatives are a constant pillar of strength to many. However, the urgency to implement processes that effectively facilitate the preventative treatment of cancer remains.

Relay for Life 2

Arthur-Gay: Valued Morai Logistics Team Member. Cancer Survivor.

Forbes identifies patient personalization as a step toward providing optimal customer experience to patients in need of immediate and tailored medical treatment. This phenomena is growing in popularity on both the patient/customer and facility side. By 2022, it’s expected that the personal medicine market will reach USD 2.45 trillion. This will place an increase in pressure on the healthcare supply chain management industry.

This article investigates the importance of personalized medication in improving cancer treatment. It also touches on the role supply chains have in meeting the demands of this growing market.

Personalizing Cancer Treatment

The Canadian Cancer Society defines personalized medicine as the ‘use of information about a person to prevent, diagnose and treat disease’. The ability for medical professionals to determine appropriate and preventative treatment for each individual patient is a product of extensive R&D. It also helps to answer the following six benefits:

  • How likely will an individual develop cancer?
  • Who will benefit from ‘earlier screening’?
  • Which treatment would be effective, while causing less side effects?
  • What appropriate plans should be implemented to manage treatment?
  • How do research develop new treatments?
  • How do we educate patients on making the right ‘treatment decisions’?

This advanced method of understanding and identifying appropriate treatment protocol has shown a considerable advantage in preventing specific cancers. Therefore, it’s important to recognize the impact this growing market will have on healthcare supply chain management.

Challenges in Healthcare Supply Chain Management

Research predicts that the healthcare supply chain management market will reach USD 2.56 billion by 2025. As this treatment approach moves from ‘reaction to prevention’, this will enable medical professionals to offer effective treatment options’. However, research has identified the popularity of personalized medicine will place considerable pressure on manufacturers in supply chains.

Due to the complexities of this individualized approach, challenges in the supply chain manifest in an inability to match ‘scale, speed, reliability and traceability’. Supply Chain Diver indicates that this direct-to-customer approach will require:

  • Increased delivery demand
  • Specific packaging
  • ‘Increased temperature monitoring’
  • Custom clearance in transport
  • Delay monitoring by GPS-based alerts

In addition, the transportation of medication is ‘time and temperature’ sensitive, which places a critical importance on ensuring ‘cold chain is virtually error-free’. When multiple medications are shipped together but require different temperatures, certain challenges may arise. The facilitation of personalized medication creates an intricate shipment lifecycle going from manufacturer to production facility to the patient. However, research also explains that the same third party logistics providers (3PL) run throughout the entire service. For logistics companies, this means recognizing their vital role in facilitating the personalized medication market.

Community of Change

Morai Logistics is passionately dedicated to supporting cancer research and development. As a North American leader in supply chain and logistics, we understand the important role 3PLs play as a partner and advocate for the safe and efficient transport of personalized medication. Our participation in community events, such as Relay for Life, is one of the many ways our company stands with those affected by cancer.  Together, our energetic and passionate team raised $22,420 this year in honour of an incredible cause!

Relay for Life

The Morai Logistics Team at Relay for Life

morai-blog-ebook-supply-chain-c-suite

Discussion on effective leadership (i.e. c-suite, or c-level positions such as CFO, CTO, CMO, etc.) trends in 2018 stimulates further investigation into what it takes to become an effective supply chain and logistics C-Suite executive.

Previously, Morai Logistics identified four key leadership trends shaping economies across North America. The importance of empowering women in leadership positions, fostering ambition, exhibiting core values and embracing upcoming generations, were correlated with effective business leadership. However, these trends also place a significant emphasis on the responsibilities of C-suite Executives, especially those in supply chains and logistics.

The term “C-Suite” describes leaders who hold senior executive positions within a business or organization. According to Investopedia, these positions may include ‘chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO), and chief information officer (CIO)’. Alternatively referred to as C-Level, the qualifications of an effective leader outlined above remain consistent with those who hold these positions. However, this year there is an increased emphasis on a commitment to corporate culture, people management, strategic thinking and active leadership.

This eBook uncovers current C-Suite trends, current challenges facing C-Level execs, and the core attributes required to be an effective executive leader.

What Does it Take to Reach the C-Suite in Logistics?

morai-logistics-ebook-supply-chain-c-suite-image

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? Interested in what we do as a 3rd party logistics provider? Then don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

morai-blog-infographic-evolution-of-women-in-logistics

As a woman-owned business, Morai Logistics identifies has always kept track of the status of women in the logistics and supply chain industry. This is an update to how the industry as a whole has evolved with regards to the gender gap.

Over the last four years, the logistics industry has seen a significant transformation from the integration of new technologies. As a result, the industry requires a labor force of workers with a dynamic skillset to help them succeed in the digital workplace.

Research found that ‘71% of global supply chain professionals believe women have a different natural skillset’ in comparison to men. In addition, 91% of respondents felt that these skillsets are ‘advantageous to working within supply chain management’.

Podcast Feature: Let’s Talk Supply Chain

Kelli Saunders, president of Morai Logistics, sat down with host of Let’s Talk Supply Chain, Sarah Barnes to discuss women and millennials in supply chains. The podcast identified challenges that have turned women away from exploring the industry, persuading them to pursue education and professions in ‘traditional’ roles. Kelli Saunders states that “we (as women) have so much to give” and being complacent in areas where we can’t explore further should change.

Women are encouraged by Saunders to take the leap and develop the courage to go after opportunities by believing they are worthy and qualified. This infographic takes a contemporary look at the current gender gap in North American supply chains, and identifies the positive contributions women create.

Take a listen on the podcast below:

We also have resources available from the podcast here: morailogistics.com/podcast

Re-Examining the Evolution of Women in Logistics

We’ve decided to focus this week’s infographic on updating the status of women in the logistics and supply chain industry and re-explored the gender gap. Generally speaking, we take a look at positions in education, the workforce, salaries, and listed the advantages presented by having a diverse workforce that includes women.

morai-infographic-evolution-of-women-in-logistics

That’s it for us this week! We loved having our president on Let’s Talk Supply Chain and collaborating with Sarah Barnes was awesome. Feel free to check out her other podcasts on the logistics and supply chain industry (we particularly enjoy her Women in Supply Chain Series) here: letstalksupplychain.com

lets-talk-supply-chain-sarah-barnes

Season 2, Episode 8

Let's Talk Supply Chain Podcast

Women in Supply Chain Series is back! On this episode Sarah Barnes of Let’s Talk Supply Chain interviews Kelli Saunders who speaks publicly about Women and Millennials in Supply Chain! She speaks to Kelli about some of the important things to consider when working with Women & Millennials, how companies can benefit and the different communication styles to be aware of so that your culture thrives through innovation and success!

Take a listen below, or visit Let’s Talk Supply Chain directly:

Increase Your Knowledge of the Supply Chain and Logistics Industry

FREE LOGISTICS RESOURCES MENTIONED IN THIS EPISODE

According to the report Digital Supply Chain: Creating Skills for the Future, the Canadian supply chain and logistics industry currently employs 878,000 people. Digital technologies is stated to be a contributing factor to the increase in job creation expected to happen over the course of the next five years.

However, research also identifies Canada’s ranking as the 14th nation in the World Bank’s Logistics Performance Index.

While the country’s investment in research and technology remains high, less than 41% of Canadian industries actually utilize advanced communication technologies. The report further identifies that as the integration of emerging platforms continues to rise, the need for an advanced workforce is critical.

Unceasing technological advancements in the form of artificial intelligence, the Internet of Things (IoT) and Big Data, are necessary to help companies keep up with consumer needs and demands. They’re also key to improving the countries performance in trade logistics.

This eBook takes a look at current technology trends that will have a direct impact on the transportation supply chain and logistics workforce.

What does an Advanced Supply Chain look like?

ebook-supply-chain-logistics-a-transforming-workforce

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

Industry 4.0, also referred to as the Fourth Industrial Revolution, has initiated a lucrative transition for transportation supply chains. Research on future trends of supply chain management found that over the next five years about 80% believe ‘digital supply chain’ will be the leading industry model and 72% of global companies will invest over US$900 billion each year on digitization.

Why the need for digital implementation? Well, customers want lower prices, demand immediacy, and expect operations to ‘always be on.’ A highly efficient chain is achieved when innovative technologies are used to boost productivity and operations, lower costs and improve transparency. The benefits associated with building highly efficient digital supply chains are considered to be extremely important.

2,000 companies have already started to digitize their supply chains. How are supply chain and logistics companies implementing new technologies to achieve end-to-end results? This week we thought we would focus on the Fourth Industrial Revolution and how it impacts the logistics and supply chain industry.

The Fourth Industrial Revolution in Supply Chain and Logistics

morai-logistics-infographic-industry-40

If you liked this blog post, why not subscribe to our blog? Interested in our 3rd party logistics services? If so, don’t hesitate to check out our services . We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.

.Morai-Logistics-Blog-logistics-ecommerce-convenience

E-commerce giants are turning to brick-and-mortar stores to supplement their continued growth trajectories. Could this mean the e-commerce market is too saturated?

To say that online shopping and e-commerce has boomed in the last decade would be a gross understatement. In 2014, retail e-commerce sales worldwide were 1.3 trillion U.S. dollars. That number rose by 954 billion as of this year and is estimated to hit nearly 4 trillion by 2020. However, despite the impressive numbers, there seems to be a shift in strategy amongst the titans of the booming online retailer industry.

A few weeks ago, Reuters reported that Chinese e-commerce giant Alibaba had announced plans to move into the physical realm of brick-and-mortar stores. The move is a strange one for the company given that until now, its made $392 billion through digital sales alone.

Alibaba’s American counterpart, Amazon, has made similar announcements. Its recent purchase of Whole Foods and unveiling of an automated physical store late last year indicates the company is already on a similar trajectory.

The question to ask is why is this trend happening. Reporter Robyn Mak, who broke the Alibaba story, suggests that its because the retail e-commerce market is reaching its limits for the industry titans.

Alibaba’s New Strategy—Invest in Old Models

According to the Reuter’s article, Alibaba founder and executive chairman Jack Ma, has outlined the following plan for the company:

  • The company will upgrade existing physical shops in partnership with established retailers.
  • The company will also build its own stores from the ground up.
  • Continued support for “Hema”, Alibaba’s own supermarket chain where can customers buy and have groceries delivered. Some stores even allow customers to choose fresh produce and have cooked in-store.
  • Explore a similar Hema strategies for clothing.

Hema has been especially successful for Alibaba so it makes sense for the company to increase investment. As Robyn Mak stated:

The attraction for existing retailers is a chance to boost their notoriously low margins by tapping into Alibaba’s technology and platforms to manage inventory, supply chain, and logistics. Stores can also benefit from using the tech giant’s algorithms to analyse shopping habits and by moving to cashless checkouts, powered by Alibaba’s payments affiliate […] The e-commerce group boasts that sales per unit area at Hema are up to five times higher than a traditional supermarket

e-Commerce Around the World

The potential windfall profits that could be made through e-commerce has led to many new online businesses. In fact, there was an estimated 12 to 25 million online stores worldwide according to a 2014 study.

Most of that money trades hands in North America, followed by Europe and then China.

The world of ecommerce is dynamic and has opportunities for innovative new start-ups. At this point, Amazon and Alibaba might be too big to grow further.

Currently, 85% of China’s retail spending happens in brick-and-mortar stores. So while Alibaba is starting to stagnate in its online sales, it can continue its expansion into physical markets.
As mentioned earlier, Amazon has already started on this path. They invested $13.7 billion to acquire and rebrand the Whole Foods Market chain.

Balancing the Pace of Technology and Consumer Demand

As more people go online to do their shopping, the e-commerce market will continue to grow. Alibaba and Amazon are in the process of developing developing new strategies. But because of the demand in ecommerce, new avenues need to be explored for the industry titans. This won’t mean either company will give up any ground online. Instead, each has its own plan to expand past the digital store.

If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news.