Securing the air cargo supply chain

PATRICK BURNSON | 154 views

Air cargo shippers and air transport workers both require more transparency for the sake of security. As we have seen elsewhere in the supply chain, this will also enhance efficiency.

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Tempcon Express LLP

Tempcon Express exclusively focused on clinical trails, and the pharmaceutical industry. Tempcon Express has developed a strong network in providing reliable & dedicated logistics services to ensure product arrive on time and within specification.

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Put Strategy First When Pondering Automation for Your DC

Article | October 15, 2020

The unsurprising investment eagerness of venture capital funds is manifesting in an automation tech glut in the distribution center space. Motivated by enabling trends like labor and land shortages, DCs are amid an automation transformation. Never has defining an automation strategy been more important. There’s no shortage of VC cash available to logistics tech startups With a brightly shining spotlight centered on supply chains for the past two years, it’s no surprise that total funding in logistics startups has seen a dramatic increase – growing at over 70% CAGR (Compound Annual Growth Rate). Logistics technology startups raked in over $25 billion in the first three quarters of 2021. That’s more than half of the total amount raised in the whole of 2020, and the incentives for continuing investment persist. The rise of the of the “micro” DC “Micro” is a relative term. The size of a micro fulfillment center (MFC) can range from 5,000 to 50,000 square feet. Those reduced square footages allow location in dense urban areas, typically within 40 miles of most of their intended customers. In addition, smaller footprints lead to reduced rents compared to a standard customer fulfillment center (CFC), and the proximity to consumers makes for lower final mile delivery costs. It’s no wonder that MFCs accounted for more than half of the logistics real estate leasing activity in the third quarter of 2021. The “urban logistics” trend is fueling demand for these highly automated, smaller locations. Vertical logistics integration grows ever more fashionable among retailers It’s a very “in” thing right now, these acquisitions and partnerships, and they won’t be going out of fashion soon. For example, American Eagle took in Airterra and its parcel optimization tech and third-party logistics (3PL) provider Quiet Logistics. Target started early. They bought Grand Junction, a software platform that helps retailers determine the best delivery method and track carrier performance, in 2017. Their 2020 acquisition of Deliv brought with it same-day delivery routing technology that they’re now applying to their 2021 purchase, on-demand delivery service Shipt. Target uses Delivs’ tech to generate more efficient routes for Shipt. Kroger has partnered with UK’s e-grocery specialist Ocado to build automated CFCs across the US and expand their retail footprint. The first CFC opened last spring in Ohio and their second in Florida later that year. They plan to open 20 CFCs over the next three years. “The proliferation of DC automation solutions and modalities, the rise of MFCs in high-density urban areas, the increasingly automated vertical integration of logistics, and the need to rapidly expand order fulfillment capacity have all, in combination, advanced the need for and application of clearly defined strategies concerning the implementation of automation technology. Do not operate without one.” Vikas Argod, Principal, Supply Chains Operations practice at Chainalytics Coping with shortages in warehouse space and labor availability Third quarter, 2021 US demand for industrial real estate exceeded supply by 41 million square feet. This pushed the national vacancy rate in the fourth quarter down to a record 3.7% in the Cushman & Wakefield US National Industrial MarketBeat report for Q4 2021. Who knows what the record might be when the Q1 2022 report breaks in a few weeks? On the labor side, the December 2021 US unemployment rate was 3.9%, lower than in December 2019 (3.6%) yet reflecting a tighter labor market. Labor force participation rates are at 61.9%, nearly 2% below February 2020 levels, because of lingering effects of the COVID-19 pandemic. The rising wages and signing bonuses of the past year offer silent testimony to the ongoing constraints in today’s labor market. Both trends will remain with us for the near- and mid-term, making an automation strategy a necessary part of your DC operations as you attempt to mitigate the effects of both. In addition, warehouse labor shortages are most pronounced in markets with high distribution center densities – Greater Memphis, In-land Empire, Allentown, PA, et al.) Building the capability to rapidly open DCs at scale No other factor drives home the need for a coherent DC automation strategy like this one. Let’s explore it with an example. We’ll call this “A Tale of Two Companies.” One jumped on the automation bandwagon without hesitation – not a bad thing – but applied no strategic groundwork. The other is, well, Amazon. Company one responded to increasing demand by creating DCs in their usual, strategically located fashion. However, with automation, the lack of a logical strategy led to adopting “the best that money could buy.” So, while these DCs work fine on their own (most of the time), each employs unique implementations from a variety of vendors, with little to no overlap of methods, capabilities, and management procedures between DCs. It’s functional, but a needlessly complicated hodgepodge. On the other hand, it definitely looks like Amazon has a standardized automation strategy. One that can easily adapt to exploit the individual physical specifications of any space. This makes it simple to arrive and equip it with a standard package of automation solutions. That’s probably how Amazon blanketed the US with over 400 new DCs in just the last two years. They waste no time or money on repeating unnecessary decisions along the way. Now, we all can’t have the resources of an Amazon. However, the rise of on-demand warehousing companies like Stord and Flexe allow organizations to dramatically decrease the cycle time of standing up additional fulfillment capability. Developing an automation strategy will feel familiar. It begins with benchmarking, order profiling, current performance drivers, EBIT targets, and theoretical evaluations of newer technology options. All this leads to the creation of a decision framework for DC automation. The goal here is achieving alignment among the leadership on critical capabilities to focus on. These include rapid fulfillment, labor shortage, capacity constraints, safety challenges, or sustainability. Those that commit to this process will start slowly but finish with a strategy that will underpin thousands of decisions and enable sustained rapid growth. If, in the end, you decide that automation is not right for your operation, that’s a perfectly valid strategy as well. So long as you have a method to evaluate all of your options, and you base your decision on cost-service-sustainability trade-offs, the right strategy for your organization may be no automation at all. There’s no point in chasing shiny robotic objects if automation makes little sense‌. The rise of automation and the multitude of technologies to choose from require the development of a strategic decision framework. Contact us and see how Chainalytics – an NTT DATA company – can be your guide in developing this critical part of your foundation for growth. Our top supply chain talent, enabled by proven, leading-edge digital assets – tools, methods, and content – deliver actionable insights and measurable outcomes to some of today’s largest and most complex supply chains.

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SOFTWARE AND TECHNOLOGY

Digital innovation in logistics warehouses

Article | April 19, 2022

Business Chief takes a look at three leading logistics companies and how they are digitalising their warehouses. With technology evolving at an exponential rate, and the logistics industry needing flexible solutions for its complex operation, we take a closer look at some of the successful deployments of digitalisation within the warehouses of leading logistic companies around the world.

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How to Test Major Changes in Your Supply Chain Process

Article | July 29, 2021

Did you know that the return of your supply chain process depends on how your software technology works as well as the efficiency of the people involved in the entire process? However, changes keep taking place, and you might feel clueless as to where your initiative is going. Supply chain testing is done in order to know and mark the various aspects where the supply chain is the weakest. Since data handling is a crucial aspect, managing it becomes even more necessary.

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Trends in Shipping by Vertical: Retail, Wholesale & OEM Shipping for 2020

Article | February 10, 2020

Global trends in shipping continue to evolve in the wake of uncertainty and risk. The recent outbreak of the Coronavirus threatens to undermine use of shipping options that would involve air freight between the U.S. and China, explains Wired. New hazmat regulations are taking effect in 2020. Retailers are trying to stay evergreen and compete with Amazon. The list of risks is endless, and the only way to really succeed will lie in understanding the trends in shipping by vertical and a few key sectors that require vigilance in the coming year.

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Spotlight

Tempcon Express LLP

Tempcon Express exclusively focused on clinical trails, and the pharmaceutical industry. Tempcon Express has developed a strong network in providing reliable & dedicated logistics services to ensure product arrive on time and within specification.

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FREIGHT

FourKites Launches Industry-First ETA Solution Air Freight: Dynamic ETA for Air

FourKites | June 25, 2021

FourKites, the world's leading real-time supply chain visibility platform, has announced Dynamic ETA for Air, its newest AI-powered innovation. Shippers, carriers, and 3PLs can now monitor 100% of air freight with exact and automated estimated arrival times for the first time (ETAs). Because of this unprecedented insight into air freight, the supply chain may now have more trust in a method of transport that is usually used for the most important goods yet has been notoriously difficult to monitor. With real-time insight into all air freight and highly precise predicted ETAs, supply chain partners can improve downstream planning, save the time and cost of manual track-and-trace operations, and enhance customer satisfaction. Shipping by air is estimated to cost 4-5 times more than shipping by road and up to 16 times more than shipping by ocean. Still, it is essential for shippers' most critical and time-sensitive freight, such as pharmaceuticals and medical supplies, perishable agricultural and seafood products, emergency shipments of spare parts, or simply goods for which customers demand the quickest delivery. Furthermore, as inventory delays continue to plague supply chains, companies increasingly resort to air cargo to expedite freight. However, due to the complexity of the global air network and numerous stopovers and transfers of products at major airports, a lack of real-time visibility has hampered air freight. Consequently, ETAs for air shipments have only been provided 40% of the time and maybe up to two days off, causing a slew of downstream logistical and customer service problems. FourKites' Dynamic ETA for Air delivers ETAs on 100% air freight and is accurate within 9 hours by using the most advanced machine learning algorithms and knowledge graphs. Businesses may anticipate spending much less time and money addressing delays due to this unparalleled predictive insight, thus improving their customer experience. In addition, using Dynamic ETA has resulted in a 2x increase in customer satisfaction ratings for FourKites customers. Between 2020 and 2021, FourKites saw a 97% increase in air loads. The platform currently serves over 100 airlines and 17,000 airports and has grown by 40% quarter on quarter. About FourKites FourKites is the world's leading supply chain visibility platform, expanding visibility beyond transportation into yards, warehouses, shops, and other locations. FourKites combines real-time data and powerful machine learning to help businesses automate their end-to-end supply chains, tracking over 2 million shipments daily across road, rail, ocean, air, parcel, and courier and reaching 176 countries. More than 500 of the world's most recognizable brands rely on FourKites to change their company and build more flexible, efficient, and sustainable supply chains, including nine top-10 CPG and 18 top-20 food and beverage companies.

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Deutsche Bahn invests in Skyports to bring drones to logistics supply chains

Deutsche Bahn | December 13, 2019

DB Digital Ventures, Deutsche Bahn’s digital business division, is investing in drone infrastructure company Skyports. Through testing, the two organisations will explore how drones can be integrated into logistics supply chains. DB will conduct a joint pilot project with Skyports to test drones in a logistics supply chain. The project aims to make cargo transport faster, more flexible and more efficient. Sabina Jeschke, DB management board member for digitalization and technology, commented: “Drone technology is developing at a rapid pace. In collaboration with Skyports, we intend to research how to participate in this dynamic development for passenger and cargo transport.

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Banyan Technology unveils freight industry-first Dynamic Pricing tool

Air Cargo News | July 01, 2019

Banyan Technology Inc., North Americas leading innovator of live carrier and API connectivity for transportation management, unveiled the launch of Intelligent Pricing— a dynamic pricing tool through its Live Connections platform.Through the tool, carriers can instantly offer pricing incentives on top of the discounts that are already contracted to shippers or 3PLs through an API-powered dispatch system—taking into account geography, shipment attributes, clients and even customer behavior.These adjustments are then automated to appear as Live Lane Specials directly within shippers transportation management system (TMS) workflow as they're making live routing decisions.

Read More

FREIGHT

FourKites Launches Industry-First ETA Solution Air Freight: Dynamic ETA for Air

FourKites | June 25, 2021

FourKites, the world's leading real-time supply chain visibility platform, has announced Dynamic ETA for Air, its newest AI-powered innovation. Shippers, carriers, and 3PLs can now monitor 100% of air freight with exact and automated estimated arrival times for the first time (ETAs). Because of this unprecedented insight into air freight, the supply chain may now have more trust in a method of transport that is usually used for the most important goods yet has been notoriously difficult to monitor. With real-time insight into all air freight and highly precise predicted ETAs, supply chain partners can improve downstream planning, save the time and cost of manual track-and-trace operations, and enhance customer satisfaction. Shipping by air is estimated to cost 4-5 times more than shipping by road and up to 16 times more than shipping by ocean. Still, it is essential for shippers' most critical and time-sensitive freight, such as pharmaceuticals and medical supplies, perishable agricultural and seafood products, emergency shipments of spare parts, or simply goods for which customers demand the quickest delivery. Furthermore, as inventory delays continue to plague supply chains, companies increasingly resort to air cargo to expedite freight. However, due to the complexity of the global air network and numerous stopovers and transfers of products at major airports, a lack of real-time visibility has hampered air freight. Consequently, ETAs for air shipments have only been provided 40% of the time and maybe up to two days off, causing a slew of downstream logistical and customer service problems. FourKites' Dynamic ETA for Air delivers ETAs on 100% air freight and is accurate within 9 hours by using the most advanced machine learning algorithms and knowledge graphs. Businesses may anticipate spending much less time and money addressing delays due to this unparalleled predictive insight, thus improving their customer experience. In addition, using Dynamic ETA has resulted in a 2x increase in customer satisfaction ratings for FourKites customers. Between 2020 and 2021, FourKites saw a 97% increase in air loads. The platform currently serves over 100 airlines and 17,000 airports and has grown by 40% quarter on quarter. About FourKites FourKites is the world's leading supply chain visibility platform, expanding visibility beyond transportation into yards, warehouses, shops, and other locations. FourKites combines real-time data and powerful machine learning to help businesses automate their end-to-end supply chains, tracking over 2 million shipments daily across road, rail, ocean, air, parcel, and courier and reaching 176 countries. More than 500 of the world's most recognizable brands rely on FourKites to change their company and build more flexible, efficient, and sustainable supply chains, including nine top-10 CPG and 18 top-20 food and beverage companies.

Read More

Deutsche Bahn invests in Skyports to bring drones to logistics supply chains

Deutsche Bahn | December 13, 2019

DB Digital Ventures, Deutsche Bahn’s digital business division, is investing in drone infrastructure company Skyports. Through testing, the two organisations will explore how drones can be integrated into logistics supply chains. DB will conduct a joint pilot project with Skyports to test drones in a logistics supply chain. The project aims to make cargo transport faster, more flexible and more efficient. Sabina Jeschke, DB management board member for digitalization and technology, commented: “Drone technology is developing at a rapid pace. In collaboration with Skyports, we intend to research how to participate in this dynamic development for passenger and cargo transport.

Read More

Banyan Technology unveils freight industry-first Dynamic Pricing tool

Air Cargo News | July 01, 2019

Banyan Technology Inc., North Americas leading innovator of live carrier and API connectivity for transportation management, unveiled the launch of Intelligent Pricing— a dynamic pricing tool through its Live Connections platform.Through the tool, carriers can instantly offer pricing incentives on top of the discounts that are already contracted to shippers or 3PLs through an API-powered dispatch system—taking into account geography, shipment attributes, clients and even customer behavior.These adjustments are then automated to appear as Live Lane Specials directly within shippers transportation management system (TMS) workflow as they're making live routing decisions.

Read More

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