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Tag: Supply Chain Management

  • The Port Strike Ended — Now What? | Entrepreneur

    The Port Strike Ended — Now What? | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In October, ports across the U.S. shut down as the International Longshoremen’s Association (ILA) went on strike for the first time since 1977. The port strike shut down 14 major ports and threatened to disrupt more than half of the U.S.’s global trade.

    The ILA represents about 45,000 dockworkers, and the union went on strike to demand higher wages and a ban on automation. Fortunately, the shutdown only lasted for three days, and the ILA and the U.S. Maritime Alliance extended their contract until January 15, 2025.

    However, if they can’t reach an agreement in the new year, the dockworkers could go on strike again. It’s a good idea for small businesses to start diversifying their supply chain and getting ahead of overseas orders now, just in case we find ourselves in a repeat situation.

    Related: 5 Ways of Effectively Navigating Supply Chain Disruptions

    The economic impacts of a port strike

    How a port strike would affect the U.S. economy depends largely on how long it lasts, but shipping delays would likely be the first and most noticeable sign. Over $2 billion worth of goods flow through these ports daily, and a strike would affect everyday items like perishable food, different types of alcohol, durable goods and raw commodities.

    Delays could hurt small businesses that rely on shipments from overseas suppliers, causing low inventory and lost revenue. If a shutdown lasted more than a month, it could cause the cost of imported goods to rise and contribute to inflation. Transportation costs could also rise due to the increased delays.

    An extended port strike would hurt retail, agricultural and manufacturing businesses, and over time, this could force businesses to lay off workers to cut their expenses. A prolonged strike could also hurt the U.S.’s relationship with its global partners and cause other countries to look for alternative trade partners.

    Related: 7 Strategies for Growing Your Business When Supply Chain Disruptions Are Everywhere

    How businesses can mitigate future risk

    A port strike poses numerous challenges, but businesses do have time to prepare so they aren’t caught off-guard. January through March tends to be a slower period for retail sales, so businesses will have more capacity to keep their supply chain moving. Let’s look at five ways small businesses can prepare for another port strike.

    Stock up on inventory

    Businesses have until January 15 to begin building up their inventory and preparing for another shutdown. Start reviewing your inventory levels to accurately forecast demand and determine what you’d need to get through a strike. Prioritize high-margin products and items that are essential to your business operations.

    Diversify your supply chain

    Another way small businesses can protect themselves is by diversifying across several different suppliers. Begin establishing relationships with suppliers in different locations or countries and look for opportunities to source these items locally. Domestic suppliers may be more expensive, but they’ll reduce your dependence on international ports.

    Use inventory management software

    If you aren’t already using inventory management software, now is a good time to start. This software gives you real-time visibility into your inventory levels, making it easier to forecast demand and make informed purchasing decisions.

    Inventory management software uses AI to analyze historical data and external factors to predict future demand. It can also help you determine which items are the most popular and should be prioritized.

    Communicate with your customers

    Since an ongoing port strike can cause delays and inventory shortages, it’s important to communicate with your customers. Let them know about potential delays and increased costs before these problems occur. Being upfront about these challenges will help you build trust with your customers and let them know you’re doing everything you can to manage the situation.

    Set clear expectations for how long delays could last and recommend alternative products that are available. Make sure your customer service team is prepared to handle customer questions and that it’s easy for customers to get in touch with your business.

    Prepare for additional costs

    If another shutdown occurs, small businesses should expect inventory, storage and transportation costs to increase. Coming up with cash flow solutions now will ensure your business can absorb these costs without any major disruptions.

    If you don’t already have one, establishing a line of credit can help you cover the cost of extra inventory and additional storage space. You can also negotiate with your suppliers to extend your payment terms and free up your cash flow.

    Related: How to Secure the Inventory You Need During a Supply Chain Nightmare

    According to the Conference Board, a nonprofit think tank, a one-week shutdown could cost the U.S. economy $3.78 billion. Hopefully, the ILA and U.S. Maritime Alliance will reach an agreement before January, but business owners should be proactive and plan for the worst-case scenario.

    Take the time to assess your supply chain now and look for ways you can strengthen it. Diversifying your supply chain and stockpiling inventory now will help you minimize the fallout if another strike happens. It’ll also help you preserve your relationships with your customers.

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    Joseph Camberato

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  • When Is the Right Time to Think About Your Holiday Inventory? | Entrepreneur

    When Is the Right Time to Think About Your Holiday Inventory? | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    It’s currently summer, so most people are thinking about attending barbecues and buying fireworks — not planning their holiday shopping season. However, if you run a brick-and-mortar store or ecommerce business, this is the best time to begin thinking about the holiday inventory.

    Successful planning in June and July will set you up for profitability in November, December and January. Here are six ways you can successfully plan for increased inventory demand during the holiday season.

    Related: July Is Just Early Enough to Start Planning for Holiday Selling

    1. Come up with a timeline

    The holiday season is the most profitable sales period for most retailers. According to the National Retail Federation (NRF), holiday sales exceeded $964 billion in 2023, a 3.8% increase from the previous year.

    So start by coming up with a timeline of key dates when you can anticipate increased sales and demand. These dates most likely include:

    Think about the shipping cut-off dates for each of these holidays, and add them to your calendar. That way, you can let customers know the last days to receive standard and expedited shipping on their orders.

    2. Determine what you’ll need

    Next, you’ll forecast the types and amount of inventory you’ll need for the holiday season. Having enough inventory on hand to meet customer demand will ensure you don’t lose out on business to competitors. It will also help you avoid overstocking items you don’t need.

    The best way to estimate holiday demand is by looking at previous sales data and taking note of customers’ shopping patterns. Of course, shopping habits can change slightly from year to year, so you also want to look at industry trends. For example, you can see what your competitors are doing and how they’re preparing for the holidays. And if you have an NRF membership, you’ll receive insights into consumer and retail trends.

    Once you’ve done adequate research, you can begin planning your holiday inventory. You can also start to think about when you should begin marketing and how much staff you’ll need to have on hand to manage the increased demand.

    3. Do an inventory audit

    An inventory audit involves regularly reviewing your inventory for accuracy. During an inventory audit, you’ll verify that your physical inventory matches what you’ve recorded in your financial records. An inventory audit can also help you spot inefficiencies in your supply chain.

    To perform an inventory audit, you’ll start by organizing your inventory to reduce the odds of miscounting items. From there, you’ll begin physically counting and recording each item into your inventory management software.

    Once the audit is complete, you’ll reconcile the count with your inventory records. If there are any discrepancies, you can investigate where they came from. You can also begin developing a plan to reduce discrepancies in the future.

    Related: You Should Be Planning Now for Holiday Sales — Here’s How

    4. Check in with your suppliers

    Once you know how much inventory you’ll need to meet the holiday demand, you should begin reaching out to your suppliers. Checking in early with your suppliers will ensure you’re on the same page and you’re not caught off-guard by changes to their order times or pricing.

    It’s also a good idea to ask if any of your suppliers offer pre-sale discounts or promotional pricing. It never hurts to ask, and some may be willing to give you a discount for large orders.

    5. Think about financing

    As you begin planning for your holiday inventory, one of the biggest issues is how you’re going to pay for everything. Many small businesses don’t have the cash flow to pay for a large inventory order, shipping supplies and the unexpected costs that come along with it.

    If you find yourself in this place, financing may be a good solution. Inventory financing is a one-time loan or ongoing line of credit you can use to purchase inventory for your business. The inventory purchased is used as collateral for the loan.

    Financing can help you maintain consistent cash flow during seasonal fluctuations in your business. It will also give you the flexibility to respond to increased customer demand. If you’re interested in exploring your financing options, you should begin looking into this now so you’ll be well prepared come fall.

    6. Place your orders early

    Many customers begin their holiday shopping in September and October out of concern over product shortages and slow shipping times. So you want to place your inventory orders as soon as possible so you can capture those early shoppers.

    However, it’s impossible to forecast exactly how much inventory you’ll need, and you’re bound to run out of items. So you also want to have a plan for how you can quickly replenish out-of-stock items. For example, a good inventory management system will alert you when you’re running low on certain items and need to re-order.

    Related: Keep Calm and Holiday On: How to Plan for the Holidays Year-Round

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    Joseph Camberato

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  • How Smart Technologies Are Revolutionizing Supply Chain Management | Entrepreneur

    How Smart Technologies Are Revolutionizing Supply Chain Management | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Supply chain management plays a pivotal role in the success of any enterprise. Entrepreneurs and business owners are constantly seeking innovative ways to optimize their supply chains, reduce operational costs and enhance overall efficiency.

    This is where the Internet of Things (IoT) and smart technologies step in to revolutionize the field of supply chain management.

    Related: Supply Chain Management: The Game-Changing Innovations That Are Shaping the Industry

    The role of IoT in supply chain management

    IoT refers to the interconnected network of physical devices, vehicles, buildings and other objects embedded with sensors, software and network connectivity that enables them to collect and exchange data. When integrated into supply chain operations, IoT can bring about a transformational shift in the way businesses manage their logistics and distribution processes.

    1. Real-time tracking and visibility:

    In the context of supply chain management, real-time tracking and visibility are game-changers. IoT devices, such as GPS sensors and RFID tags, provide continuous data streams that allow entrepreneurs to monitor their goods at every stage of the supply chain journey. This means they can pinpoint the exact location of products, monitor their condition and track their movement from manufacturer to distributor to retailer.

    The benefits are twofold. First, this level of visibility significantly reduces the risk of theft and losses since any anomalies or deviations from the planned route can trigger immediate alerts. Second, it offers valuable insights into the overall efficiency of the supply chain. By analyzing data on delivery times, transportation routes and storage conditions, entrepreneurs can identify areas for improvement, optimize routes and ensure that goods reach their destination faster and in better condition.

    2. Inventory management:

    IoT sensors are capable of automating inventory management with unprecedented accuracy and efficiency. These sensors can monitor inventory levels in real time and send automatic alerts when stock is running low or when products are approaching their expiration date.

    This proactive approach to inventory management has numerous advantages. It prevents stockouts, ensuring that businesses never run out of essential supplies, which can be especially critical for just-in-time manufacturing processes. It also helps in reducing overstock situations, which can tie up capital and storage space. Ultimately, this level of control not only optimizes storage space but also improves cash flow management by reducing excess inventory costs.

    3. Predictive maintenance:

    Within the IoT ecosystem, smart technologies can predict when machinery and equipment are likely to fail. IoT sensors on machines can continuously monitor their performance, collecting data on factors such as temperature, vibration and energy consumption. By analyzing this data, predictive maintenance algorithms can identify patterns that indicate when a machine is deviating from its normal operating conditions, suggesting a potential breakdown.

    This predictive capability is a game-changer for supply chain operations. Instead of relying on scheduled maintenance, which can be costly and lead to unnecessary downtime, businesses can address maintenance needs proactively. This minimizes downtime, reduces repair costs and ensures smooth operations. In essence, it keeps the supply chain running like a well-oiled machine.

    4. Reduced costs:

    IoT-enabled supply chains are inherently more efficient. The real-time data provided by IoT devices allows businesses to identify bottlenecks and inefficiencies quickly. For example, if goods are consistently delayed at a particular warehouse or if delivery routes are suboptimal, these issues can be promptly addressed.

    By optimizing processes and streamlining operations, businesses can significantly reduce costs in various aspects of the supply chain, including transportation, warehousing and labor. For instance, they can minimize fuel consumption by optimizing delivery routes, reduce warehousing costs by better managing inventory levels and enhance labor productivity by automating routine tasks. This cost reduction not only improves profitability but also enables businesses to remain competitive in a rapidly changing market.

    Related: IoT: Introduction And Disruption Of Supply Chain Management

    The power of data analytics

    IoT generates an immense amount of data, but its true potential is unlocked through data analytics. Entrepreneurs can harness this data to gain valuable insights into consumer behavior, demand patterns and supply chain performance. By leveraging advanced analytics tools and machine learning algorithms, businesses can make data-driven decisions that enhance their competitiveness.

    Smart technologies beyond IoT

    In addition to IoT, several other smart technologies are making waves in supply chain management:

    1. Blockchain:

    Blockchain technology is revolutionizing supply chain management by offering secure and transparent tracking of products and transactions throughout the entire supply chain journey. Here’s how it works:

    • Secure and immutable records: Every transaction or movement of products is recorded in a secure and immutable blockchain ledger. This means that once data is entered, it cannot be altered or tampered with. This inherent security ensures the authenticity of records, reducing the risk of fraudulent or deceptive practices.

    • End-to-end transparency: Blockchain provides an unbroken, transparent chain of custody for products. Entrepreneurs can trace the origin of each product, monitor its movement from manufacturer to distributor to retailer and even verify its authenticity. This level of transparency not only reduces the risk of counterfeit goods but also enhances trust among consumers.

    • Smart contracts: Blockchain allows for the implementation of smart contracts, which are self-executing agreements with predefined rules. These contracts can automate various supply chain processes, such as payments, quality inspections and compliance checks. This automation reduces administrative overhead and ensures that contractual obligations are met promptly.

    2. Artificial Intelligence (AI):

    AI-driven algorithms are a powerful tool for optimizing supply chain processes. Here’s how AI can transform supply chain management:

    • Demand prediction: AI algorithms can analyze historical data, market trends and various external factors to predict demand accurately. This enables businesses to adjust their production and inventory levels accordingly, reducing the risk of overstocking or stockouts.

    • Process automation: AI can automate routine and repetitive tasks, such as data entry, order processing and inventory management. This not only reduces labor costs but also minimizes the potential for human errors, improving overall efficiency.

    • Enhanced decision-making: AI can analyze vast amounts of data in real time to make informed decisions. For instance, it can optimize delivery routes based on real-time traffic data or recommend the most cost-effective suppliers. This data-driven decision-making leads to more efficient supply chain operations.

    • Personalized customer service: AI-powered chatbots and customer service platforms can personalize recommendations and resolve customer issues more efficiently. This enhances the customer experience and fosters brand loyalty.

    3. Robotic Process Automation (RPA):

    Robotic Process Automation involves the use of robots and automation technologies to streamline various aspects of supply chain management. Here’s how RPA is making a significant impact:

    • Warehouse operations: Robots can automate tasks within warehouses, such as picking and packing products. They work with precision and consistency, reducing the potential for errors and increasing order accuracy. This not only speeds up order fulfillment but also reduces labor costs.

    • Repetitive Task Automation: RPA can handle repetitive and rule-based tasks, such as data entry, invoice processing and tracking shipments. By automating these tasks, businesses can free up human resources for more strategic activities.

    • Enhanced efficiency: RPA can operate around the clock, ensuring that supply chain operations continue without interruptions. This enhances overall efficiency and reduces lead times.

    • Cost reduction: By automating routine tasks, RPA reduces labor costs and the potential for errors that can lead to additional expenses. It also optimizes resource utilization, ensuring that operations are cost-effective.

    Related: How AI Can Revolutionize Our Broken Supply Chain

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    Taiwo Sotikare

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  • How AI Can Revolutionize Our Broken Supply Chain | Entrepreneur

    How AI Can Revolutionize Our Broken Supply Chain | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The Covid-19 pandemic sent shockwaves through the global supply chain, exposing vulnerabilities and inefficiencies that were previously hidden. From inventory mismanagement to port backlogs, the pandemic magnified a myriad of issues that challenged even the most robust supply chains. As businesses search for innovative solutions to address these problems, Artificial Intelligence (AI) stands out as a powerful ally. We explore how AI-driven predictive analytics can support and enhance experienced human decision-making in the face of evolving global supply chain dynamics.

    The power of AI in tackling supply chain challenges

    The pandemic brought to light several key challenges that businesses must address to ensure smooth operations in their supply chains. By leveraging AI, organizations can gain insights into crucial aspects such as inventory management, container allocation, demand fluctuations, freight pricing and port operations. Let’s examine how AI can help tackle some of these challenges.

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    John Monarch

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  • Instawork Arrives in Providence Ahead of Back to School Rush

    Instawork Arrives in Providence Ahead of Back to School Rush

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    The flexible work platform matches a network of more than 10,000 skilled hourly workers with Providence businesses


    SAN FRANCISCO, August 17, 2023 (Newswire.com)
    –
    Instawork, the leading platform for connecting businesses with a network of more than 4 million skilled workers, announced today the platform’s availability in Providence, Rhode Island. The platform specializes in connecting businesses with workers based on their unique business needs while providing workers the choice to decide when, where, and how they work best.

    Home to some of the United States’ premier universities, locals in Providence are gearing up for the back-to-school rush as students fill the college town once again this fall.  

    Nearly 32,000 full-time students will make the eight college campuses in Rhode Island’s capital city their home this year and local and on-campus businesses will need all the help they can get to accommodate the increasing demand.

    “Back to school season is finally here, and college towns like Providence are gearing up for the rush of students returning this fall,” said Kira Caban, Instawork’s Head of Strategic Communications. “Instawork helps local and on-campus businesses stay ahead of the demand by providing a network of skilled hourly workers to ensure they meet customer needs.”

    More than 10,000 people in Providence have already downloaded the Instawork app and are working to staff nearly 200 business locations across the area. The most common roles for Instawork in Providence are line cook, prep cook, and event server. Other positions in the hospitality and warehousing/supply chain industry are also offered on the app. Local workers can easily create a profile, find a shift that matches their skills and interests, and start working in as little as 24 hours. 

    In Providence, the average hourly pay rate on the Instawork platform is $20.13 per hour, more than Rhode Island’s $12.25 per hour minimum wage. That meaningful increase in earnings gives local residents an easier way to make ends meet during a continued period of inflation.

    Businesses across the city that rely on Instawork range from nationally recognized hotels and restaurant groups to some of the area’s favorite local hot spots and event venues. 

    The announcement also follows Instawork’s recent $60M Series D funding to accelerate investment in AI-driven capabilities. Fueled by this growth, Instawork is helping staff distribution centers for some of the country’s largest retailers as well as the majority of sports stadiums across the U.S. and Canada. 

    Just this week, Instawork was ranked in the top 10% of the country’s fastest-growing companies by Inc. 5000 for the second year. In 2022, Instawork was included in the Forbes Next Billion Dollar Startup list, received the 2022 ACE Award recipient for “Best Innovation,” and was named one of the “Best Business Apps” by Business Insider. Those interested in learning more about Instawork should visit www.instawork.com or download the app.

    About Instawork

    Founded in 2016, Instawork is the leading flexible work app for hourly workers. Its platform connects thousands of businesses with over four million workers, filling a critical role in local economies. Instawork has been featured on CBS News, the Wall Street Journal, The Washington Post, and more. Instawork helps businesses in the food & beverage, hospitality, and warehouse/logistics industries fill temporary and permanent job opportunities in more than 40 markets across the U.S. and Canada. Follow us on Twitter, Instagram, LinkedIn, and Facebook.

    Source: Instawork

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  • 4 Ways to Be Ready When the Supply Chain Heats Up Again | Entrepreneur

    4 Ways to Be Ready When the Supply Chain Heats Up Again | Entrepreneur

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    To hear the Federal Reserve Bank of New York tell it, all is finally well in supply chains. The bank’s Global Supply Chain Pressure Index has fallen to the lowest level since 2009, during the slumping demand of the Great Recession. But businesses in the United States might not agree with the bank’s assessment — and they’re finding new ways to deal with the pressures that remain.

    Early in the pandemic, supply chains were plagued with tremendous problems: lack of staff, stalled production lines and burdensome sanitary measures, to name just a few. Later, as the economy reopened in earnest, fuel prices began to rise — and they really took off after Russia invaded Ukraine. But by then, things had already started to change.

    Related: 3 Fundamentals for Building a Resilient Supply Chain

    Loosening the chains

    People came back to the supply-chain labor force as wages climbed, with especially rapid job gains in transportation and warehousing. Then, as consumers started to spend more time outside their homes, demand for goods delivered to their doorsteps stalled. By the end of 2022, businesses throughout supply chains had built up unprecedented inventories of products sitting on shelves. Meanwhile, gas prices had fallen significantly and were back in their pre-pandemic range.

    All of these factors helped to loosen the vise on supply chains. Yet all was still not well. In the Census Bureau’s survey of manufacturers for the last quarter of 2022, almost 40% said they were producing below capacity because of a lack of staff. More than a quarter said they couldn’t bring in enough raw materials. About 1 in 10 said logistics were an issue. That doesn’t sound like a big number, but it was four times higher than in the fourth quarter of 2019 before the pandemic began.

    We heard similar complaints from the hundreds of companies we surveyed for our 2023 State of Warehouse Labor report. In 2022, 34% of respondents said they had to pass up business because of a lack of staff. Among these companies, about two-thirds said the foregone revenue amounted to 25% or more of their total business. Both of these figures were up slightly from the previous year’s survey.

    A return to normalcy?

    Clearly, all is not yet well in supply chains, at least in the United States. Yet as we look forward, the economy seems to be stabilizing. Inventories have leveled off and even started to clear at major retailers. The overall utilization of the nation’s manufacturing capacity has come off its highs as demand has cooled. And with less pent-up demand and excess saving among consumers — as well as the possibility of an economic downturn — the balance of spending between goods and services is likely to be much closer to pre-pandemic norms.

    In this climate, it’s not surprising that businesses are more confident in their ability to deal with demand. For 2023, 76% of the ones we surveyed expected to be effective at recruiting workers, and 85% said they were effective at retaining workers. Both of those figures were higher than in the previous year’s survey, where only 59% said they were effective at recruiting and 76% said the same about retention.

    One reason for their confidence has been their improving access to flexible labor, which gives them extra agility in responding to changes in demand. The use of flexible and temporary labor rose from 57% to 69% among these businesses between 2021 and 2022, and a majority said they could fill at least three-quarters of the extra shifts they needed. They also rated flexible workers better in terms of skills, training and reliability than they had in the previous year’s survey.

    Related: 5 Ways of Effectively Navigating Supply Chain Disruptions

    Preparing for volatility

    That’s good news since payrolls are becoming increasingly difficult to manage. The volatility of labor demand in supply chains has never been higher. Two decades ago, employment in transportation and warehousing typically fluctuated up or down by around 2% over the course of the year. Even just before the pandemic, that volatility had risen to about 5%. So swings in employment are more than twice as wide as they used to be, especially at inflection points in the economic cycle.

    How can businesses anticipate this volatility and manage the eventual return of demand? Here are some tips:

    1. Watch what’s happening further up the supply chain. Some of the earliest signs of a recovery will come from orders by manufacturers for raw materials and other supplies. They’ll be preparing for expected orders from wholesalers and retailers. You can track these signs in your industry or at a national level using tools like the Institute for Supply Management’s Purchasing Managers Index.
    2. Put a plan in place that’s not just for the short term. Booms in the United States tend to last a long time, with only four recessions in the past 40 years. When demand returns, it will probably be here to stay — at least barring some unexpected event like a pandemic. So try to avoid high-priced, short-term contracts that play on uncertainty.
    3. Talk to your customers and use your network. It may be obvious, but you don’t have to sit on your hands and wait for new business to come in as if by surprise. You already have good relationships with your long-term customers — you can pick up the phone and ask them what they’re seeing in the market without having to give them a sales pitch.
    4. Diversify your payrolls for maximum agility. Today companies can bring in job sharers, gig workers and flexible shift workers as well as traditional full-time and part-time employees. By diversifying payrolls across these groups, managers can reduce the risks of downtime, overtime and idle hours, as well as the resulting variations in overall pay.

    The pandemic’s disruptions undid much of the fine-tuning that had characterized supply chains over the past couple of decades. But after last year’s cooling-off period, it’s time to regain that agility and look toward the future. Demand could return like a trickle or a tsunami. Either way, it will pay to be prepared.

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    Daniel Altman

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