Key Trends In Logistics

Transcription

1 Key Trends In Logistics By Gary Master Co-founder Agile Business Media LLC Publisher, DC Velocity Magazine & CSCMP s Supply Chain Quarterly Executive Producer, Move It!

2 What do I want to Accomplish Today? Discuss underlying changes in our world today Examine some key logistics trends Identify the need for local WERC groups Discuss local WERC group offerings

3 Change... What Change?

4 We Live in a Changing World! Truth be told, we have always lived in a changing world what is different today is the speed of that change.

5 We live in a changing world Social Media s influence Retail Interaction as a society Governments have fallen Governments changing overnight Global warming or weather extremes New Health Threats- getting medicines to impacted regions and replacing labor in the supply chain Terrorism A True Global Economy Changing demographics- the greying of the labor force Emergence of New Technologies Pirates US government polarization Movement towards Green and more legislation Consider having to overcome all of these changes to deliver to a consumer that now knows what they want, when they want it and what price they are willing to pay!

6 Logistics is the key to making change possible! Think about how we get our... Food Medicine Water Clothing Building supplies Cleaning supplies Retail specialty items Toys Baby products Fuel Automobiles Toilet Paper

7 Logistics- You are the key to the future of mankind!

8 In order to love change we must first understand it.

9 Key Changes in Logistics Omni-Channel Distribution and Amazon s impact Labor shortage New disruptive technologies A greater visibility of logistics in the boardroom Others not discussed today Outsourcing of functions (cont. growth) Energy cost reductions sought Sustainability Emerging markets Have to demonstrate ROI more than ever Logistics now being seen as a profit enhancer

10 An Introduction to Omni-Channel

11 An Introduction to Omni-Channel Staying relevant in an Amazon world! Not too long ago life as a retailer was fairly simple. Build a brand, build some stores, setup distribution for your stores and you were set. Over simplified yes, but the point is... life was much simpler then. Then came along the Internet, E-commerce and mobile devices like tablets and smart phones. The World changed... Instead of the retailers holding the power now consumers hold the power as they are smarter than ever! Today s consumer knows what they want, when they want it and what they are willing to pay for it!

12 This is the world that we live in today! One year ago 59% of the general population checked their mobile device before getting out of bed Today the latest numbers say it is now 75%

13 An Intro to Omni-Channel We as an industry face an awesome opportunity! With $319 Billion in online sales projected for 2013 and 6.9 billion mobile devices the opportunity to satisfy demand from this new type of customer has never been greater! So... The newest buzz word is Omni-Channel and it is seen as the way to satisfy these new demand patterns and to increase both sales and lift profit margins for companies. At a recent national conference for retailers 65% of respondents stated they don t know what to do to handle this new demand yet or they are in the infancy of exploring their options.

14 An Intro to Omni-Channel Omni-Channel distribution is truly the latest buzzword in fact in makes going green look like just another color. Is this hype justified and what exactly is Omni-Channel distribution? Is Omni-channel distribution different from multi-channel distribution or Omni-channel fulfillment and all-channel distribution? Let s start with the hype and see what some of our readers are saying about this subject.

15 30.3% 69.7%

16 46.7% 53.3%

17 28.7% 71.3%

18 45.4% 54.6%

19 Labor Shortage

20 Labor Shortage Consider in ,000 truck driving jobs will go unfilled! This will only get worse! Some projections show a shortage of 110,000 in This is not only true for the trucking community we have companies on the supplier side that can t find enough engineers, installers or sales people. One study indicates there will be more than 200,000 logistics and supply chain job openings that will remain open by Sure pay will go up to help solve this issue, but the fact remains we have two problems with these numbers and there are not enough applicants to fill the positions with the right skills and not enough applicants that can pass drug tests. Warehouse and DC decision makers can t find enough shift workers or skilled people. Working in a DC with new technology increases the need for specific skills. The above are true in a slow growth economy. With economic growth forecast through 2018, the labor shortage will become even worse and every company must re-evaluate their retention of employees and recruitment strategy.

21 Disruptive Technologies 3D Printing Google Glasses Augmented reality Too many others to mention like Premium rail service and goods to person technologies These are just some of the new technologies that are already here and being studied for how they can help attract new workers and be implemented in the supply chain

22 10 years ago who would have thought?

23 Logistics has a key place in the Boardroom Logistics has never been sexier! Move It! and its growth being picked up in Japan on Japanese public TV We love Logistics- UPS Transportation providers advertising in Forbes, Fortune and other prominent business magazines Logistics operations being show by Amazon in commercials Logistics being seen as a fundamental part of life now!

24 What does this all mean to WERC and local efforts within WERC? The importance of organizations like WERC has never been greater. Leading the way in: Research Trend analysis Networking on a national and local level Bringing suppliers and Shippers together Having an independent third party to help organize practioners/shippers and the supplier community to focus on making a difference in the world I realize that they are way too many organizations out there, but WERC with its focused mission and audience is highly respected and at the center of most discussions today across organizations.

25 What can a local WERC group offer? Individual growth through in person education and networking Take away corporate strategies and tips from local level discussions that can help the overall company An ability to network for business leads or career development An ability to share with a local group the challenges of the day or time An ability to breakout of social media and meet in person for less cost and time commitment than traveling across the country for a major event.

26 Ways to Increase the success of the Local efforts In my opinion, we are a society on social media steroids and that has led to us being the most connected yet alienated societies ever.

27 Ways to increase the success of the Local efforts Human beings were created to network and have social interaction. While social media is good face to face meetings are still the best venue and are actually preferred by most individuals. It is a fact that most people won t say things in person that they will say in social media. Also, you can read the impact of your comments in person and you can t read them in social media until they have taken you off their friend list or blocked you. With limited travel budgets and time local events offer a tremendous value if they have solid programming that can lead to the perfect world of a local group that meets in person and keeps in touch via social media

28 Ways to increase the success of local efforts Solid content and diversity such as: Future technologies Trends in Logistics Ways to attract talent A networking hour Facility Tours A career path coach Once a year conference or show Roundtables with multiple leaders and Q&A (webcast and in person) Coming up with program for the year that allows the members to see how they will learn and grow together and can meet their objectives Build relationships with other groups

29 Questions or Comments?