7 Ways in which Cloud and AI can boost integrated logistics

It fosters problem-solving, adaptability, and collaboration, helping you thrive during disruptions and difficult market cycles. Integrated logistics can support a business focussed on enhancing its customers’ experience. To achieve this, choosing the right integrated logistics partner matters, and that trust is vital. This partner should work with the business to understand its unique needs and priorities.

Reverse logistics is the process of managing the return of products for repair, replacement, refund, or disposal. Many companies have a review process for incoming returns to determine whether you can resell items and to issue refunds. Let’s dive in and explore some examples of the tasks involved in effective logistics management. The certification is designed to show employers you have the right skillset to navigate the R12 E-Business Suite, enter data, pull information, form queries, and access online help. You’ll also need to know how to manage the purchasing process, set up and use the R12 Oracle Purchasing software, and navigate purchase orders. The exam covers topics such as navigating in R12 Oracle applications, introduction to Oracle Applications R12, shared entities and integration as well as the fundamentals of Flexfields, Multi-Org, and Workflow and Alerts.

It also has a platform called ARRIVEnow that customers can use to increase their productivity, make their shipments more transparent and reduce any excess waste. While 3PL providers are capable of handling the entirety of a company’s supply chain operations, the different components of the logistics process can be carried out by individual players. For instance, freight companies solely handle the physical transportation of goods, while freight forwarders are dedicated to optimizing transport solutions and handling necessary documentation. In this sense, logistics could be seen as a complex web of moving parts, which operate in tandem with one another in order to boost efficiency and reduce costs within the supply chain.

One of the key barriers to digitalisation relates to the cost of introducing technologies. As a Loadstar article explains, often freight forwarders are sceptical that new technology solutions will deliver positive change. In addition, there may be a lack of knowledge on how to digitalise a business or what aspects to focus on digitalise first. The process of digitalisation in freight forwarding requires an investment in the technology, but also in adapting business process and operations, and upskilling staff. Due largely to the rise in ecommerce, brands are experiencing new challenges to keep up with customer service demands, which impact operations inside the four walls. Demands like speed, quality management, and low shipping costs have always been important, but it has intensified because consumers now have more options than ever.

You’ll also need to accurately forecast inventory levels to appropriately stock warehouses in your network. Plus, the supply chain crisis has made clear the importance of having real-time, multi-location inventory visibility. Situational awareness is a significant skill that allows individuals to excel in supply chain management. Soft skills like communication, discernment, and (especially) listening are often undervalued in supply chain management.

In order to continue to compete with that commoditized product the firm made significant cost improvements with supply chain redesign and technology. As companies increasingly use their supply chain to compete and gain market share, spending and activity in this area are notably on the up-swing. A TMS must also handle settlement, a more complex process that requires documenting certain freight milestones and metrics before payment can be made, such as proof of delivery, pickup and time in transit. Data collected during the settlement process is used by the TMS’ performance management and optimization processes. TMS users can search settlement data for clues to customer demand and capacity utilization and in order to negotiate special pricing for factors such as loading speed and time of day.

Marketplace

Starting with an average salary of $43,000 annually, transportation analysts can potentially earn more than $80,000 with experience. Supply chain management is a crucial process because an optimized supply chain results in lower costs and a more efficient production cycle. Companies seek to improve their supply chains so they can reduce their costs and remain competitive.

In February 2023, Microsoft announced a new version of their search engine Bing, in which users can search via conversational prompts, powered by the same technology as ChatGPT. Around the same time, Google announced that they are working on their own AI-powered chatbot, Bard, likely in response to the immense noise made around the public nature of OpenAI’s ChatGPT. A technology that revealed itself to be so transformative means that numerous companies started to seek ways to benefit from it, working on creating their own AI-powered chatbots.

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You can foun additiona information about ai customer service and artificial intelligence and NLP. So invest in return processing technology, outline your refund policy, and categorize inventory based on whether it can be resold. Include a return form as part of your reverse logistics process for insight into your products. Analyze them to find areas for improvement—tweaks to make to your inventory that could limit the number of products being diverted back to your warehouse. Overcome that (and save your bottom line) with a streamlined reverse logistics process—one that is cost-effective and processes returns quickly and efficiently, resulting in faster inventory turnarounds.

There’s no doubt that investment in climate-friendly transport chains is on the rise. Organizations often require a bachelor’s degree in a field such as business or logistics. Supplies of products of all kinds were delayed due to ever-changing restrictions at national borders and long backups in ports. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way.

Here are some of the biggest challenges when dealing with returns—and how to overcome them. With a returns management system, the customer can print a returns label at home and either drop off the item at a pickup point or at a local store. Supply chain management (SCM) is the optimization of a product’s creation and flow from raw material sourcing to production, logistics and delivery to the final customer. As technology continues to transform our world, its influence on the logistics industry will only become greater, prompting a shift in how companies quickly and efficiently deliver their products to consumers.

Supply Chain Predictions 2024: AI, Sustainability Top Of Mind

The key to even further improvement is identifying areas where automation can lead to optimization and monitoring the results to ensure maximum efficiency. While sales may not be considered a supply chain component, it’s a critical business function for last-mile logistics companies that can be resource-intensive. Leveraging AI to enhance the efficiency of sales activities adds to the company’s overall profitability, which can translate to cost savings for clients. Find out how Swiss luxury retailer Globus has used insights from the Celonis platform to drive this omnichannel customer service excellence. Introducing logistics dashboards that visualize throughput times and cancellation and return rates in real time has decreased throughput time significantly, and reduced the overall cancellation rate by 20%.

From a retail perspective, consumers now expect omni-channel shopping experiences, and retailers struggle to position inventory across their supply chains to meet online and offline demand. Fortunately, innovative AI technology can get the right inventory to the right place, at the right time, to satisfy customers—and maximize profit. Changing global climates, new technologies, and evolving customer expectations ever increase the demands on us. Stay informed, plan for contingencies, and leverage the talents of the people around you to excel in our ever-changing world. Geopolitical and economic factors have heightened existing hurdles, and the increasing emphasis on sustainability has many enterprises rethinking their manufacturing and supply chain strategies. Inbound logistics processes have been significantly impacted by high costs, unpredictable lead times, and uncertain delivery dates.

The entities involved in the supply chain include producers, vendors, warehouses, transportation companies, distribution centers, and retailers. APQC’s latest research in priorities and trends for supply chain professionals indicates that 2024 is shaping up to be another challenging year for supply chains. Disturbances continue, such as the volatile freight costs caused by shipping disruptions at the Suez and Panama Canals. Organizations intend to conduct benchmarking against similar companies, improve collaboration, implement new technologies, and standardize processes to start addressing their supply chain planning priorities. Given that technology had such a prominent spot among trends for the next three years, it is not a surprise that the implementation of new technologies has surfaced as an obstacle for 52% of survey respondents.

Relying on a 3PL means you get the benefits of skilled warehouse staff, as well as warehouse automation technology, without investing cash into developing your own. Robotic machinery to pick and pack orders, for example, means human staff don’t need to be on-hand to fulfill orders. The machinery works 24/7, so retailers can benefit from later order cut-offs for immediate shipping. While vacancy rates are up, rents continue to grow due to demand for storage space, especially in key regions, despite new supply coming online.

AI allows businesses to process large amounts of data in real time, anticipate market trends, optimize logistics, and perform routing and scheduling based on changing conditions. It can also streamline workflows through automation, improve procurement, reduce disruptions and provide better end-to-end visibility and transparency. Project44 focuses primarily on offering companies real-time visibility into their supply chain, beyond just basics like shipment tracking. Shippers and logistics companies use its cloud-based platform to continuously monitor things like purchase orders and stock keeping units to improve their inventory management, enabling more reliable and predictable deliveries. The company says it also supports all transportation modes and shipping types, including air, parcel, less-than-truckload, rail and intermodal. The Association for Supply Chain Management (ASCM), formerly known as the American Production and Inventory Control Society (APICS), offers a number of certifications to demonstrate your SCM skills.

Don’t choose a 3PL based on where you are today, but rather where your business is going to be one to three years from now. Finally, if you’re scaling internationally, choose a 3PL with locations in multiple countries, which can help to reduce cross-border shipping and tax complexities. 3PLs either work with established carriers or have their own fleet for shipping and fulfilling orders. Choosing between an asset-based and a non-asset-based 3PL can be a big decision for brands. Let’’s break down what these terms mean and how to pick the right one for your business.

Supply chains are a huge part of emissions problems, estimated to be about 70% for most companies and therefore a great area to focus on when looking for solutions. A failure to excel at any one of these components can result in breakdowns affecting the entire supply chain. Performance data might also be used to verify compliance with Federal and state transportation regulations. This can be important when Federal and state agencies execute surprise inspections, often involving freight audits.

In case of an incident, you will be informed by our team proactively, with a status update of the possible impact and involvement of your container. APQC found that organizations are taking a variety of measures to address their supply chain obstacles. Most try to be adaptable in the face of volatile conditions, with 84% of respondents saying that their organizations have re-evaluated or modified their supply chain strategy to overcome obstacles. As these trends gain traction, they create new opportunities and challenges for businesses.

• TMSes are available as standalone software or as modules within enterprise resource planning (ERP) and SCM suites.
• From June 2023 to 2025, one feeder ship and 18 large container ships with slot capacities of 16,000 TEU and 17,000 TEU will be put into service under the Maersk flag.
• From there, ShipMonk stores, packs and ships each order using whatever method its algorithm suggests is cheapest and most efficient.
• The Six Sigma certification scheme is often found within organizations, earning you “belts” as you move from green to black up the certification ladder.

To address potential obstacles, at least 55% of organizations plan to increase their supply chain budgets. The actions organizations intend to take with procurement include implementing new technology and capabilities to increase supply chain visibility. They also intend to further standardize their procurement processes and identify and implement ChatGPT App proven practices. In addition, 55% expect to increase their budget for supply chain tools, technology, innovation, and initiatives in 2024. In light of the inflationary environment for businesses, this ensures that supply chains can continue to meet the needs of the business while implementing and operationalizing new technologies.

It’s why brands like Walgreens are incentivizing shoppers to return FedEx items in-store. Let’s put that into practice and say hair straighteners are your most returned item. Three-quarters of people who return the item do so because they didn’t realize the product only worked on wavy hair. Prevent this from happening—and your returns warehouse from being overrun with unsold inventory—by updating the product description on your website. “Customers will participate in a company’s reverse logistics practices when they feel they’re doing something beneficial beyond themselves.

A TMS can handle many department operations, including accounting, office management and freight shipping. This can help reduce manual processes, improve decision-making capacity, automate operations. The global TMS market is current valued at USD 11.7 billion and is expected to grow to USD 28 billion by 2027.

As LLMs advance, conversational AI becomes highly sought after across sectors for its capacity to provide real-time interactive use cases that enhance user experience. With an average annual salary of $62,200, warehouse logistics managers can find fulfilling careers. The highest-paying cities for this role include Reno, NV; Newark, NJ; and Newark, DE, each offering average salaries exceeding $80,000 per year.

With an average salary of $90,000 annually, logistics engineers can find lucrative opportunities. Maryland, Virginia, and Washington are the highest-paying states for this career, making them potential destinations for aspiring professionals. Starting with an average salary of around $47,000 per year, experienced operations managers can earn well over six figures. Another exciting career path within the field is that of an operations manager.

The changing post-COVID-19 supply chain landscape has no playbook and, to a certain extent, defies conventional wisdom surrounding trends and markets. Resilience is the ability to continuously bounce back in the face of unknown and changing conditions, viewing failures as learning opportunities instead of calamities. Technologies like the Internet of Things (IoT) enable companies to monitor the condition of goods in transit, ensuring product quality and safety. Embracing cutting-edge technologies is not an option but a necessity for companies looking to thrive in the logistics landscape.

For example, AI and virtual reality can be used to create simulations that allow workers to practice skills safely before applying them in real situations. AI-powered training programs can provide personalized learning experiences, adapting content to match individual abilities and progress. They will have to withstand economic uncertainty, political instability, and technological disruption. At the same time, there will be the potential to benefit from new opportunities, again in the realm of technology, as well as in sustainability.

And it helps users streamline and automate their raw material sourcing, procurement and shipping processes. Blue Yonder uses machine learning, predictive analytics and generative AI to enable businesses to optimize and automate their supply chain operations, offering everything from demand forecasting to transportation management. Its services are used by more than 3,000 companies, including Best Buy, Pepsico and Campbell’s. As supply chains continue to develop and mature there has been a move toward more intense collaboration between customers and suppliers. The level of collaboration goes beyond linking information systems to fully integrating business processes and organization structures across companies that comprise the full value chain. The ultimate goal of collaboration is to increase visibility throughout the value chain in an effort to make better management decisions and to ultimately decrease value chain costs.

By completing this form, you confirm that you agree to the use of your personal data by Maersk as described in our Privacy Notification. Unilever is one of the world’s leading suppliers of Beauty & Wellbeing, Personal Care, Home Care, Nutrition and Ice Cream products, with sales in over 190 countries and products used by 3.4 billion people every day. For more information about Unilever and our brands, please visit Unilever website. Another pitfall is engineering AI automation, which isn’t founded on a solid understanding of workflows. When standard operating procedures are confusing or complex, the steps needed for AI-driven automation become difficult to define and even more difficult to support.

At the same time, rates will continue to be impacted as carriers compete for a smaller pool of cargo. The final measure is to confirm the 3PL integrates with your existing inventory management system, order management system, order processing software, and/or warehouse management solution. A 3PL should have a robust order management system (OMS) to track stock ChatGPT levels across warehouses and to get the products into your customers’ hands, fast. This will be integrated with your own software, so that you’re able to maintain management of your shipping and fulfillment. Full logistics service providers, like the Shopify Fulfillment Network, offer end-to-end solutions that get orders to your customers easily and quickly.

As a company’s business drivers change, business processes, SCM technology investment and the overall approach to supply chain management must change and keep pace. An inefficient and poorly functioning supply chain can negatively impact every aspect of an organization, jeopardizing the long-term performance and success of a business. Market data analysis supports strategic decision-making, allowing logistics providers to optimize supplier relationships. It also allows them to adjust pricing strategies and manage inventory levels more effectively. Further, the integration of big data and analytics enables the generation of comprehensive risk management reports as well as identifying anomalies and trends.

Each of the three main SCM systems in Figure 1 has a particular role in managing orders and sharing data with the other two. Shippabo offers SCM services to ease the process of importing goods from overseas, whether that be pre-assembled items or large factory sourced raw goods for assembly. The Logistics Industry Trends & Startups outlined in this report how is customer service related to logistics management? only scratch the surface of trends that we identified during our in-depth research. Among others, hyperlocal solutions, drones, and sustainable technologies will transform the sector as we know it today. Identifying new opportunities and emerging technologies to implement into your business early on goes a long way in gaining a competitive advantage.

“Through innovative technology and efficient and digital processes, we need fewer resources and can reduce emissions. Switching to low-emission modes of transport, motors, and fuels is the most important way to further climate protection in the transport sector and logistics,” say DSLV experts. Supply chain management is the planning of a product’s journey from initial sourcing and creation through distribution.

It is followed by product and service innovation and creativity as top priorities. There is a large difference between the percentage of respondents selecting operational or process innovation (46%) and those selecting product and service innovation (30%). This speaks to the desire organizations have to find better ways to drive more effective supply chains versus introducing new products or services. To make these process improvements stick, leaders must adopt change management practices that address staff concerns and resistance.