Successful warehousing technology upgrades depend on effective change management. Stay ahead of the curve with this comprehensive guide.
To stay ahead of the curve—and ahead of the competition—many shipping managers are seeking to upgrade their company’s warehouse technology. In fact, 80% of shippers cite the need for new technology as a challenge in their workplace.1 However, only 16% of companies have multiyear strategies in place to achieve supply chain excellence.2
Even when shipping teams know that a tech upgrade will improve operations and have created a plan for implementation, they may struggle to present their ideas to the executive team. To bring about the changes you’re considering, you must first learn how to effectively communicate with these top decision-makers.
Read through the three tips below to help you make the best business case for warehouse technology upgrades.
1. Speak in a way that will resonate with executives.
Whether you’re hoping to upgrade your warehousing technology to fix specific supply chain problems interfering with day-to-day operations or simply want to help ensure your business can stand out from the competition, it’s crucial to communicate with executives in a way that will resonate, speaking to issues important to them. This will help encourage your higher-ups to further explore the tech upgrades you’re proposing and will instill confidence in your ability to lead the change.
Supply chain and logistics managers are more than twice as likely as directors to describe themselves as “analytic.”³ While to you, it may seem most logical to point to numbers-based data and lay out very detail-oriented, supply chain-based arguments, executives tend to think in less technical terms.
Use business-oriented phrasing that will grab their attention.
Focus on return on investment (ROI) and broader value propositions, and remember: While it may seem intimidating pitching a tech upgrade to your higher-ups, keep in mind that you all have the same overarching goals—to improve company operations while ensuring success for your team members and the company as a whole as you move into the future.
Spend some time practicing your pitch and write down any questions executives may have. Laying out how you will address any concerns and familiarizing yourself with key financial concepts will help you feel confident and prepared as you step into meetings.
2. Emphasize big-picture gains.
In today’s complex marketplace, supply chains are no longer thought of solely in terms of procurement and logistics, and many executives are well aware of the importance of end-to-end optimization.
A holistic approach is paramount to supply chain success. So, when approaching your company’s executives, emphasize the value that a technologically sophisticated, well-managed supply chain can provide to all shareholders, rather than just the ways it can be used to control costs. Framing your argument in strategic terms will be most effective when speaking with the executive team.
Warehouse tech upgrades can boost a company’s bottom line in more ways than one.
These transformations can improve customer experience, enhance end-to-end visibility, offer real-time data, boost brand reputation, improve regulatory compliance and help mitigate risk.
Speak to these benefits in business-centric terms, citing easy-to-understand, real-world examples whenever possible that show how the upgrades will help. It’s easy for executives to dismiss opinions and speculations but illuminating case studies and industry success stories—including competitors’—are harder to argue with.
Unfortunately, many executives are still unaware of the significant role supply chains play in business. In one study of 50 private equity firms, executives ranked supply chain functions as “relatively unimportant” in terms of driving revenue and growth.4 This is a missed opportunity.
As e-commerce and consumer technology continue to alter the business landscape, warehousing operations must not just keep up, but adapt. The most successful companies will implement solutions that allow them to stay nimble far into the future, and executives are always thinking ahead; emphasizing the big-picture points above will help drive your case home.
3. Focus on customer experience improvements.
When pitching warehouse upgrades, using business-oriented, big-picture lingo is important, but it’s also crucial to zero in on specific concerns. You may be focused mainly on the technical supply chain issues disrupting your workers’ day-to-day duties, but company decision-makers typically have different concerns.
Executives will be more interested in how an upgrade could improve customer experience.
With reverse logistics playing an increasingly important role in supply chains, excellent customer service is no longer just an option—it’s a necessity to continue thriving in today’s ever-shifting retail landscape.
Today’s customers expect transparent and easy communication, quick, efficient fulfillment and seamless returns. By streamlining processes, reducing overhead and harnessing the power of data, warehouse tech upgrades can help your company remain relevant in minds of today’s savvy consumers.
In one survey of U.S. shoppers, more than half of respondents said that just one bad experience with a brand would stop them from returning.5
When meeting with the executive team, explain clearly how the upgrades would enhance the customer experience—and, ultimately, what that means for the bottom line.
Creating a Future-Forward Warehouse
As supply chains become increasingly complex, warehouse technology upgrades become increasingly important. But before any changes can be implemented, the executive team must be on board and in full support of the transformation.
Speaking in business-oriented language that resonates with executives will strengthen your argument from the get-go, and specifically emphasizing big-picture gains will help grab their attention. Finally, remember to show the long-term value of the transformation by focusing on customer experience enhancements.
Keeping these simple tips in mind will help you feel informed and prepared as you approach your higher-ups, increasing your chances of achieving a warehouse tech upgrade that will keep your company nimble, competitive and future-ready.
Returns can make or break an e-commerce business. Proprietary research from USPS Delivers, conducted with Provoke Insights, reveals valuable tactics for creating a functional and competitive reverse logistics plan.
Read the highlights below, then get the full slate of insights to see how your business can create a streamlined and successful return policy.
We live in a consumer-driven era of personalization and customization. Shoppers are no longer satisfied with products and messaging being delivered the same way for every person. In one study of U.S. internet users, 90% of respondents said messages from companies that are not personally relevant to them are annoying, and 44% of respondents said they were willing to switch to brands that better personalize marketing communications.1
These preferences are changing the logistics landscape for shippers. In order to survive now and in the future, businesses must have adaptable models built on customer data and communication systems.
Read on to learn more about the seamless experience customers crave and the tips that can lead you to success in a market that’s no longer one-size-fits-all.
The Customer-Driven Ecosystem
Personalization and customization go beyond monograms. Customers want businesses to anticipate their needs and create a smooth and rewarding experience.
Here’s an example: A shopper adds something to her digital cart on a store’s website but doesn’t complete the purchase. Using retargeted direct mail, the abandonment triggers a personalized direct mailpiece to be sent out, highlighting the item that was in her cart and offering her free shipping. The mailpiece arrives within 48 hours and the shopper then completes her purchase using the unique discount code. Her order is processed and shipped from a nearby location, arriving at her door as quickly as possible.
For customers, this type of tailored experience can feel magical. But it only works if the business providing it has a flexible network that is rich in data and uses clear communication to maximize the efficiency of the supply chain.
Here are three tips for adapting your shipping and logistics processes to better capture your target audience:
Focus on your customers
The first step toward updating your processes is understanding who your customers are. Study the data they have provided you, from demographic basics to shopping habits. Do your older customers prefer ordering online and picking up in-store? Are your male customers more influenced by promotions on social media?
Starting with this data, you should be able to redefine your goals as a supplier. Maybe you’ll use this data to home in on customer satisfaction and build up your customer base instead of focusing solely on product sales. With a strong grasp of who your customers are, you can begin to see the path toward end-to-end visibility in your supply chain.
Build an integrated network
Many businesses see their platforms and tools as independent structures. While it’s true that a customer relationship management (CRM) tool doesn’t necessarily need to connect with a warehouse inventory system, both of those tools interact with customer data.
A CRM tool tracks how and when a customer buys something from your business. When an item is bought, the warehouse inventory system makes a note to replenish that item. Letting these two systems—among many others—“talk” to each other can greatly reduce downtime. This can help your shipping business run much more efficiently.
In the same vein, it’s also important that the different people within your business talk to one another. To encourage collaboration and sharing of ideas, facilitate regular communication between your marketing department and shipping and logistics department. Connecting them can help bring about creative solutions for optimizing systems communication.
Strengthen your supply chain
As you gather more data on your customers and allow your systems to communicate with each other, you’ll begin to see efficiency gaps in your supply chain. For example, if you notice that many of your orders are coming from a location far from the nearest distribution center, you may be able to find a more sustainable solution, such as shipping from a local store or adding a new fulfillment center closer to that area.
If your business expands internationally, you can also streamline supply chain processes by partnering with global suppliers. Sending orders through an outsourced fulfillment center closer to your global destinations can provide both time and cost savings.
Using valuable data and systems communications, you can adapt your current shipping and logistics process to curate a better direct-to-consumer experience.
Take the time to learn who your customers are and what keeps them coming back to your business. Then, integrate your systems for better internal communications and reform your supply chain. Small changes along the way will help you emerge as a top player in today’s consumer-driven landscape.
Today’s customers want to return items quickly, easily and for free. These demands put a strain on logistics teams at e-commerce companies of all sizes.
To create a positive return experience for the customer in a way that is effective and efficient for the company, businesses need to tackle the challenges that come with processing returns.
USPS® recently commissioned Provoke Insights to conduct a proprietary study into the e-commerce reverse logistics landscape.
32%of surveyed companies cited manual labor tasks, including reworking, repacking and relabeling, as the biggest challenge to returns.1
After identifying what isn’t working in the returns process, turn to technology. Implementing the right hardware and software can relieve time-consuming manual tasks that slow down the productivity and efficiency of fulfillment employees. More than two-thirds (67%) of companies are already improving their logistics processes with technology.2
Research indicates that these four technologies provide opportunities to enhance and optimize your returns process.
Automatic Data Capture
Identify a returned object and gather important data about it without ever opening a package by using scannable barcodes or RFID tags.
44%of surveyed companies use
automatic data capture.3
Primarily, automatic data capture cuts down the amount of valuable employee time spent opening a package, identifying an item, logging the reason for return and deciding where that package goes next.
When a customer initiates a return online, they can note why they are returning the item. Then, a specific barcode is generated for their return label. Back in the warehouse, a team member can simply scan that code to see if the item is damaged and ineligible for resale or if it was simply the wrong fit for the customer.
Log and store valuable information about each return—such as the type of return, status, and more—in an accessible shared space.
37%of surveyed companies
use cloud computing.4
The cloud is, in short, internet storage. Rather than managing reports and data on a local computer or server, which requires timely back-and-forth between a network of internal and external stakeholders, businesses can use the cloud for faster and more efficient visibility.
Most cloud-based management applications also incorporate some level of live editing, meaning stakeholders can see logged updates in near-real time. It also opens the door to better collaboration with partners and broader visibility across the supply chain.
Predictive Analytics and Big Data
Discover insightful patterns through data analysis that can forecast and help get ahead of future returns.
25%of surveyed companies use
predictive analytics with big data.5
Using all the data collected from the returns process—including the reasons for returns, as well as their frequency and volume—predictive analytics technology can identify and flag issues that might otherwise have gone undetected.
For example, if there is a large volume of returns on one item that arrived damaged, the instance would be flagged. Then, a fulfillment team could pre-empt future returns by changing the packaging for that item to prevent issues going forward.
Predictive analytics informed by big data are time- and money-savers for logistics teams.
Track and verify returns against the original transactions to scale back the time and labor of manually checking returns against receipts.
14%of surveyed companies
While blockchain technology is still in the early stages of development and use, it is quickly gaining traction and offers a lot of value. The digital ledger of blockchain, which allows information to be digitally distributed but not manipulated or copied, creates a transparent record of a shipment. With this true record, it’s easy to see whether what is in the package when returned matches what was in the package when originally shipped.
Implementing digital ledger technology scales back the manual labor needed for fulfillment employees to verify returns, allowing them to return focus to their primary roles.
These four technologies have been embraced by a number of companies as the keys to an optimal returns process. Leverage one or all of these options and see how technology can help streamline reverse logistics for your business.
While technology offers value for a modern e-commerce business dealing with returns, the landscape of reverse logistics is vast. Discover actionable insights from top companies to tackle seamless product returns head-on: Our full report is an insider guide, rich with proprietary research from Provoke Insights, that can help any business create a sustainable and competitive returns process.
Blockchain verifies transactions by recording activity on a continuously updated digital ledger, with no central point of control. The technology has become increasingly popular throughout the supply chain and logistics worlds, but there’s still confusion around how exactly it can help managers in their day-to-day jobs.
Below, explore the four most common applications of blockchain in the supply chain—smart contracts, tracking, fraud and theft prevention, and transaction processing.
Smart contracts, which live on a blockchain, are digital, self-executing contracts that allow for speedy, streamlined transactions.1
Here’s how they work: Once supply chain partners decide on the terms of a delivery, payment, return or other operation, they’re stored in the blockchain as a unique code.2 This allows payments to be triggered automatically when specified conditions have been met. For example, after setting up a contract with a carrier, a party can put a payment into escrow. Once the receiver confirms receipt of delivery, the payment can be released automatically.
This helps ensure all steps in a supply chain are carried out efficiently and creates trust among all parties entering into a contract. By cutting down on the risk of errors, delays and nefarious activity, costs can also be reduced—whether related to mitigating mistakes or employing intermediaries to carry out payments.3
Because all parties given access to a blockchain are able to view the same data as it’s updated in near-real time, it’s easy to track product journeys from initial sourcing to final distribution.4 Having this kind of visibility into every activity and transaction can provide consumers with the full story behind a company’s products, allowing for heightened brand reputation.
64% of supply chain professionals say that a lack of information on the tracking of product origins has caused inaction or indecision.5
Because blockchain is a continuously synced ledger—updating in near-real time as transactions and activities are uploaded and recorded—supply chain managers no longer have to hunt down the history of a good’s movement step by step, party by party. This transparency cuts down on delays and associated expenses and can eliminate the need for costly intermediaries hired for oversight.
Inventory management can also be improved, as companies are better able to forecast future demand, reducing the risk of excess inventory.
Fraud and Theft Prevention
In complex, global supply chains with many moving parts, it can be nearly impossible to stay abreast of every interaction. Unfortunately, this can be an open invitation for fraud and theft. Blockchain provides great traceability and transparency, so companies can feel confident that all parties in their network have carried out operations as specified and are complying with regulations.
In a recent proprietary interview, one blockchain thought leader emphasized the usefulness of the technology when working in industries with a black market or a lot of fraud, which can pose risks to consumers and negatively impact brand value.6
If the security of the database owner is compromised in a traditional centralized database, then the security of the ledger may be compromised as well. With blockchain, no single party has ownership; all partners view and verify uploaded data, and the entire network establishes a set of rules by which batches of data are automatically validated or rejected.7
Because each block, or batch of data, is linked to the one preceding it, tampering is almost impossible.8 This brings about a high degree of security, making it very difficult for hacking or tampering to go unnoticed. With the risk of fraud and theft reduced, the time and money spent mitigating such issues are greatly reduced as well.
Traditional, paper-based transaction processing throughout the supply chain is often slow, inefficient and error-prone.9 With these setups, each party records their transactions for uploading onto a centralized database, owned and controlled by a single entity. When multiple parties are involved in multiple locations, it can be difficult to process all of these transactions quickly and accurately.
Blockchain, on the other hand, allows all parties to view and validate the same information at the same time, creating consensus and reducing the risk of disputes. This speeds up transaction processing, while the unalterable nature of the database enhances security.10
In another interview, one blockchain thought leader stated the benefits simply, noting how the technology can replace time-consuming, traditional paper-based processes in the world of shipping and logistics.11
With blockchain, intermediaries are no longer needed to process and cross‑reference complex supply chain transactions, and waiting for payments to be processed becomes a thing of the past.
Learn More About Blockchain
As blockchain becomes more common throughout nearly all facets of the industry, supply chain managers are taking steps to learn about the basics of the technology and what it can do for their business. Smart contracts, tracking, fraud and theft prevention, and transaction processing are just a few of the ways supply chain and logistics professionals can begin applying blockchain.
To learn more about the technology and how it can be used throughout the supply chain, explore the USPS® in-depth blockchain experience.
As blockchain continues to gain traction throughout many areas of business and industry, supply chain managers are taking notice.
In a recent survey commissioned by USPS® and carried out by SIS International Market Research, 66% of supply chain professionals said they were at least “moderately familiar” with the technology.1
Managers know that blockchain can offer great benefits throughout the supply chain, but they also know that being at the forefront of this technology comes with some risks—time and money spent.
To determine if blockchain is the answer for your supply chain, you have to ask the right questions. Think through the six questions below to get started.
1. Are multiple external parties involved in your logistics or supply chain?
The more external partners in your supply chain, the more complex and time-consuming processes become—and the harder it is to keep track of them.
Within complex, globalized supply chains, payments can take days, and tracing parts back to their source can be difficult. This can make it nearly impossible to confirm, for example, that ethical processes have been followed, or to pinpoint the exact source of materials.
If your supply chain is comprised of numerous parties across various locations, implementing blockchain may be very beneficial for your business, allowing you to keep track of all operations and transactions through a single, automatically updated ledger.
Blockchain can offer 100% traceability and guaranteed origins on products.2
If this is not currently an issue for your business, it’s still worthwhile to learn about the technology and stay ahead of the curve. Plus, the more your business grows, the more complex your supply chain may become. Keep reading to learn more about the benefits of blockchain.
2. Is there a need for a shared, common database between parties?
In supply chains involving multiple external parties, efficiently recording, sharing and verifying data can be challenging. With different parties using different databases, businesses often have to track down partners’ information one by one.
With blockchain, data is continuously synced across a common ledger. All partners view the same data at the same time, allowing transactions to be recorded and verified in near-real time. This makes it easy to provide all stakeholders with the assurance that best practices have been followed, compliance has been achieved, deliveries carried out as specified and so on.
82% of supply chain professionals are willing to share data with third parties and competitors at a level that would be necessary for successful blockchain development.3
If you’ve been finding it challenging to keep track of or verify such activities, blockchain may be a good fit—eliminating the need for error-prone, time-consuming paper-based systems and making it quicker and simpler to update data.
3. Do the parties have conflicting interests?
When multiple parties are involved in a supply chain, conflicting interests are often involved as well.
For example, your supply chain partners may have conflicting competitor relationships, industry standards or quality-control requirements. Differing priorities can complicate supply chain processes—while one supplier may be primarily concerned with speed and efficiency, another may be focused on keeping down costs.
Blockchain can help mitigate this friction, allowing for better end-to-end management and oversight. With a single, constantly updated database, it’s much easier to keep track of partners’ activities and transactions, gauge timing, and predict and mitigate issues.
58% of supply chain professionals said they expect blockchain to improve tracking.4
4. Do the parties mistrust each other?
A lack of trust among partners within your supply chain can make even the simplest processes complicated and stressful. If one party doesn’t trust another party to record data accurately—and not alter it for nefarious or self-serving purposes—the integrity of the entire supply chain can be compromised.
As one blockchain thought leader put it, “Blockchain is ultimately [about solving] a trust issue.”5
Blockchain offers end-to-end transparency, allowing all parties to view and confirm others’ activities. And because the ledger is immutable, meaning it cannot be changed once batches of data are uploaded and verified across the network, tampering or hacking is nearly impossible.
If you’re currently using third parties to help establish trust, blockchain could be a smart choice, eliminating the need for often-expensive intermediaries.
5. Are there differences in the rules that govern parties?
When different parties within a supply chain must adhere to different guidelines and regulations—whether self-imposed, governmental, environmental or industry-wide—conflict and confusion can ensue.
With traditional databases, it can be difficult and time-consuming to confirm various partners’ compliance and keep track of different regulations throughout the supply chain. Having to confirm compliance with individual parties can cause significant delays in moving products through a supply chain—especially when partners are spread out across the globe.
With businesses and consumers alike expecting speedy delivery of goods, the old way of recording and verifying information is becoming increasingly cumbersome. If you’re struggling to keep track of your partners’ compliance or often experience delays as a result of compliance issues, blockchain could be a good solve.
6. Do the rules governing transactions rarely change?
For blockchain to benefit a supply chain, the rules governing transactions and operations should not change often.
When using blockchain, a detailed set of rules is established by all in the network, creating a protocol by which transactions can be verified automatically—or rejected, if tampering, hacking or inaccurate data is apparent. This is what creates such high security within a blockchain; once a set of rules is established, the validity of uploaded data from every supply chain partner can be quickly and reliably validated.
If such rules cannot be established, blockchain would not be beneficial to your supply chain. But if your business is currently operating without specific transaction guidelines in place and you’re looking to achieve uniformity and higher efficiency, blockchain can be an ideal solution.
Implementing Blockchain in the Supply Chain
If you’ve determined that blockchain may be right for your supply chain, explore our in-depth digital experience, where you can dive into the key benefits of blockchain, learn more about the technical inner workings of the technology and explore a helpful use case.
Discover the Physical Internet, a concept that lays out what the future of logistics looks like for businesses around the globe.