Logistics trends to watch out for in 2017

Posted on January 5, 2017January 5, 2017 by WHadmin

As the New Year gets underway I thought it would be useful to look at how I believe supply chain and logistics services will develop in the next 12 months.

I predict that our industry will be subject to aggressive transformation in 2017. The continuing growth of e-commerce, the increasing empowerment of consumers, the stagnation of bricks-and-mortar retail and Brexit will all play their part in influencing change.

As industry leaders we need to recognise these challenges as opportunities. As traditional practises get turned on their heads we have a real chance to innovate and revolutionise our industry.

Those who embrace change will be at the forefront of one of the most exciting times our industry has experienced.

So what are the main trends that will act as the catalysts for these changes?

Growth of e-commerce – there is now hard evidence that traditional bricks-and-mortar retail is stagnating. As you would expect e-commerce continues to go from strength to strength. Overall the trend is for Omni channel retail which in turn will mean more companies looking to add or extend their online offering. As industry professionals we should be looking to develop our capabilities and services around e-commerce logistics.

Same Day Delivery – the genie has definitely been let out of the lamp! What we used to say was impossible is now quickly becoming the norm. With companies such as Amazon and Argos trailblazing this service, customers are beginning to expect it, and other retailers will have to get with the trend in order to stay competitive. Can you offer retailers a same day solution?

Customer centric deliveries – we are living in the age of increasingly empowered consumers. They expect delivery to be about them. They need to be made at a time that suits them, to a destination of their choosing. They want to be able to change the delivery time and place last minute. They want to know the name of the driver and see a photo. They especially want to be able to track and trace that last mile. This is a paradigm change for the industry and creates real opportunity for technological innovation and creativity.

Supply chain visibility – the growth of e-commerce challenges logistics providers. Automation, high volume, stocking products in line with demand, multiple delivery options all make traditional practises unworkable. We are entering a new world of full supply chain visibility. Companies want to be able to track their products from manufacture right the way through to the final moments of delivery. They want real time information and touch of a button reports. To keep at the top of our game we need to have the technology and skills to be able to offer service at such a detailed level.

Brexit – the full effects of this are unknown and it is extremely difficult to predict what will happen. We could see an upsurge in trading with countries such as China as free trade with European countries ceases to exist. Import and export in and out of the UK may take a hit and shipping companies may feel the pinch. I will be watching developments keenly.

I am looking forward to 2017 and am eager to see how our industry responds to the challenges ahead.

Who knows may be next year I will send you all a copy of my article using a drone!

All the best for 2017, Les.

PLANNING FOR SUCCESS in 2017

Posted on December 28, 2016December 28, 2016 by WHadmin

The relative quiet during and after Christmas and the New Year affords a good opportunity to review our performance during 2016.

The benefits of looking in detail at what worked and being honest about failures and disappointments is of huge value.

It’s from these conclusions we are able to plan for 2017 and drive our businesses forward.

So, while you’re recovering from too much turkey and one to many eggnogs start reflect on the successes and failures.

What were your biggest achievements this year and why?

What strategies led to real results?

Which were the least and most profitable services?

What did you not do so well and how can you change things to make improvements?

Did you provide consistent excellent customer service to all customers?

Where can you improve your service?

What do you need to invest in to improve operational and financial performance?

What do you need to do you attract more customers?

Is your marketing timely and relevant?

Do your services compliment your customers’ requirements?

On your return to work in the New Year it’s time to formalise the review with your management team and workforce.

Your review should conclude with a comprehensive business plan for 2017 complete with financial targets, customer account plans, people development goals and operational improvement objectives.

The work doesn’t stop there though.

Monthly reviews throughout the year should keep your plan on track.

Look out for these tell-tale signs that things might be going wrong.

Sales figures drop – stop and analyse why this is happening immediately. It could be your service levels have dropped and you have unhappy customers. It could be your products aren’t meeting your customers’ expectations. You could have a problem with quality or may be your marketing lacks relevance and you aren’t attracting the new customers you expected.

Employee morale drops – your biggest asset is your workforce. Low morale leads to mistakes and a lack of attention to detail. It doesn’t take long for this to translate into a drop in service levels which are clearly visible to and felt by your customers. Get close to your workforce to understand potential frustrations and issues.

Costs rise and revenue falls – this is often really difficult to see as the movement tends to creep over time rather than stand out as a dramatic change. The key to staying on top of this is regular key performance indicator reviews and robust financial management.

Competition increases – keeping an eye on your competitors is essential. If you see a sudden increase in the market then it’s time to stop and review what you are doing. Making sure you are always at the top of your game and able to offer something different to your competitors is key to maintaining growth and achieving your goals.

Important customers leave – losing key clients tends to be a sign that something isn’t right. Proper account and relationship management should be an early indicator. Take time to understand what has gone wrong and address the issues quickly to avoid future losses. Proactive communication to customers is key. Keep the customer at the heart of your business.

Growth is quick and exceeds expectations – now don’t get me wrong this is a good thing; but don’t be caught out by it. Rapid growth can put serious strain on your people, systems and resources. If you’re pulling in the cash make sure your infrastructure can sustain the growth long-term.

Quality time spent reviewing and planning has a direct relationship to your company’s success.

I wish you all a wonderful New Year and a 2017 filled with growth and prosperity!

Are you delivering customer service excellence?

Posted on December 14, 2016December 14, 2016 by WHadmin

The relationship between business and customer is the true foundation of any 3PLs success.

“By developing close relationships with clients and reacting to changes in the market, 3PL firms are giving customers the vision and capability to grow now and in the future” Nigel Wright

Excellent customer service and the ability to pro-actively meet the challenges of the ever changing supply chain give 3PLs a distinctive edge in this highly competitive market.

As we all begin to review 2016 and plan for 2017 it’s a great time to take a look at your customer service.

In my opinion, excellent customer service stems from outstanding performance in four key areas of your business, information technology, delivery solutions, your people and cost.

Information Technology

State of the art WMS allow you to provide customers with transparent, accurate real time data on inventory, stock movement and costs. This touch of a button technology impresses customers providing the ability to solve queries and get answers quickly.

As supply chains become increasingly demanding and customers require pallet, layer, case and single picks WMS provide sophisticated systems that allow you to provide full service solutions.

Cutting edge WMS provide paperless, error proofed processes. This not only looks impressive and reassuring to a customer but also improves overall accuracy and efficiency that becomes visible in excellent KPI’s.

It is not enough to just install a WMS. Frequent changes to the supply chain mean to be progressive you need to be constantly working to improve and expand the capacity of your system.

Delivery Solutions

As B2C services continue to expand with the growth of the e-commerce culture, you need to find creative, cost effective solutions to offer your customers.

Traditional lead-times of 3-5 days are simply not good enough anymore. You need to have reliable next day, same day and even 2 hour delivery solutions. On top of that the end user is demanding full track and trace, flexible delivery slots, parcel shop and click and collect.

To provide the best service you need to be working on solutions to all of these challenges.

People

Your greatest asset is your workforce. The key to providing the highest level of customer service is excellent staff, who enjoy their job, understand their value, are unafraid to suggest new ideas and improvements and who communicate enthusiastically and professionally with staff and customers alike.

A strong leadership team and a multi skilled workforce are essential.

Attracting and retaining the best quality people should be a key component in your business plan. Good salaries, clear training and development plans, comfortable facilities, clear communication, multi-level involvement in decisions, investment and fun should all play a part in your core values.

Cost

Cost remains and always will be a key component in any customer service solution. However customers now place a much higher value on exceptional service and niche solutions. Costs should be flexible and transparent and clearly communicated and documented.

Customer service excellence is the driver of growth for both your customer and for your business. Achieving the highest standards possible should be a major priority for you in 2017.