Unboxing Logistics

What comes to mind when you hear the term AI? For some, artificial intelligence is an exciting step forward, bringing possibilities of error reduction and cost savings. For others, it’s little more than a marketing buzzword. Henrik Bergsager and Kushal Pillay of Powerhouse AI are in the first camp. In this episode, they discuss how AI tools can significantly improve warehouse operations for small and medium-sized businesses.Uses of AI in the warehouseAI can be used to improve virtually any warehouse task, including inventory management, demand forecasting, and storage optimization. Henrik notes that businesses should approach problems one at a time, not all at once. “By focusing on these smaller cogs in the warehouse, you don't need massive amounts of investments to get up and running.”Getting started with AIGetting started with a new tool is always daunting. For a smooth transition, Henrik says, “You have to get the rest of your employees on board. … You need to get all the warehouse workers understanding why we're doing this, [what are] the benefits of introducing new technology.”Kushal adds that organizations should focus on the KPIs they’re trying to improve with the technology. He adds that it’s important to keep expectations realistic—don’t expect the tool to eliminate human labor. “[At the] end of the day, you're not buying a robot. You're buying a certain software, which does a job for you.”How much technical expertise do you need?Fortunately, you don’t have to be a technology genius to take advantage of AI warehouse solutions. As Kushal puts it, “Most of the tools out there [don’t] need you to know the deep details of how they work. … The only thing we need is what is the input, and what do you expect as the output? The rest of the work is done with[in] the system.”LinksConnect with Henrik on LinkedIn: https://www.linkedin.com/in/henrikbergsager/ Connect with Kushal on LinkedIn: https://www.linkedin.com/in/kushalpillay/ Visit Powerhouse AI’s website: https://www.pwh.ai/

The holiday season is often the most profitable time of year for small businesses, but it comes with many challenges. How can small ecommerce businesses create a great purchase experience for customers? What logistical hurdles will they face? In this episode, Maxwell Bonnie, co-founder of Saltbox, answers these questions and shares tips to help SMBs successfully navigate the upcoming peak season.What’s different about peak season 2024?Peak season is always a busy time, but this year’s peak has the potential to be even more hectic than usual. That’s because there are only 17 days between Thanksgiving and Christmas instead of the usual 20 or 21, leaving businesses scrambling to ship more packages than ever in a short amount of time.Maxwell also predicts that carrier capacity will be a concern. Due to changes related to USPS’s 10-year plan, “Brands are going to be shifting a little bit away from the Post Office and trying to go directly to FedEx and UPS to mitigate risk. … That means FedEx and UPS are going to be busier than they've ever been.”Advice for small businesses during peakWhat can your business do to keep things running smoothly during peak season? First, Maxwell suggests diversifying your carrier mix by using a combination of large, emerging, and regional partners to transport packages.He also advises businesses to “[Ship] earlier. Having earlier cutoff times than normal with your holiday orders … build[s] in some buffer so that your customer gets the package on time.”The importance of having a planThe bottom line? “You need some sort of plan, but know that it's not going to go to plan—and that is completely okay. But take the time to put something on paper so that you are prepared for this [peak] season.”LinksConnect with Maxwell on LinkedIn: https://www.linkedin.com/in/maxwellbonnie/ Visit Saltbox’s website: https://www.saltbox.com/

In the words of John Golden, vice president of sales at ParcelShield, “Shipping medication is a risky business, but it's also critical to hundreds of millions of those that are depending on pharmacy services.” In this episode of Unboxing Logistics, John and Lori discuss the risks pharmaceutical shipments face and how the right technology can protect healthcare businesses and patients alike.Challenges and risks when shipping pharmaceuticalsParcelShield’s motto? It’s not just a package, it’s a patient. Because medical supplies and prescription drugs make such a huge difference in people’s lives, pharmacies must carefully consider logistical risks when shipping them. John says, “Many pharmaceuticals are time-sensitive. They're temperature-sensitive. They're highly regulated. … They're expensive. They're also life-sustaining. … There's risks out there like flight delays, extreme weather, traffic, or carrier dependability.”The importance of proof of deliveryProof of delivery is always useful for giving customers peace of mind, but when shipping expensive pharmaceuticals, it’s non-negotiable. John explains that if the government or a pharmacy benefit manager (PBM) pays for a medication, they want to make sure the package arrives.Without proof of delivery, “governments and PBMs [could] claw back the money that they paid you for those medications.”Using technology to decrease riskTechnology helps ensure the safe, timely delivery of pharmaceutical shipments by predicting when and where packages could get delayed. According to John, these systems “leverage things like predictive analytics and machine learning … [to look] for advanced warnings.”He goes on, “[The risk] could be wildfires. It could be hurricanes. It could be Mardi Gras. It could be the Super Bowl. But technology exists to be able to provide what we would call an early warning system to help to avoid shipping medications into a high-risk situation.”LinksConnect with John on LinkedIn: https://www.linkedin.com/in/johnvgolden/ Visit ParcelShield’s website: https://www.parcelshield.com/

In today's episode, host Lori Boyer is joined by Jonathan Salama, CEO and co-founder of Transfix. With a unique background in tech and data science, Jonathan sheds light on how data is revolutionizing the logistics industry. Join us as we explore the intersection of technology and logistics, unraveling the complexities and uncovering the opportunities.Leveraging data for efficiencyJonathan emphasizes the importance of leveraging data to drive decisions and automate repetitive actions within the logistics space. Using data science, companies can optimize their operations, enhance their efficiency, and ultimately, improve the customer experience.Understanding the role of brokeragesJonathan explains the critical role brokerages play in matching shippers with carriers, describing them as a marketplace driven by demand. He states, “In my opinion, every company should be using brokers.” This highlights the value that brokers provide by navigating the complexities of logistics, ultimately ensuring that shipments are executed efficiently and at competitive rates. Navigating the future with emerging technologiesThe discussion shifts towards the future of logistics, focusing on emerging technologies like automated trucks and AI. Jonathan expresses his excitement, saying, “I am a lot more excited about automated trucks... I think that is going to revolutionize our space.” He highlights how these advancements will reshape the industry, making it more efficient and responsive to the ever-changing market demands.As the logistics industry continues to evolve, embracing data-driven solutions and innovative technologies will be key to staying competitive. Jonathan’s insights remind us that while the journey may be complex, leveraging the right tools and partnerships can lead to significant improvements in efficiency and effectiveness. For more insights, connect with Jonathan and explore what Transfix has to offer. Join us next time for more engaging discussions in the world of logistics!Connect with John on LinkedIn: linkedin.com/in/jonathansalamaVisit the Transfix website: https://transfix.io/

In the latest episode of Unboxing Logistics, Lori Boyer engages with the insightful team from Better Trucks, including Josh Fredman, Mike Koleno, and Tom Butt from EasyPost. Recorded live at Parcel Forum 2024, this discussion dives deep into the transformative power of analytics in enhancing customer experiences within the logistics sector. The experts share actionable insights on how data can streamline operations, meet evolving customer expectations, and foster effective partnerships:Holistic data centralizationTo truly understand and improve customer experience, businesses must centralize their data. This approach allows shippers to analyze their operations from a comprehensive perspective, identifying opportunities for enhancement across the entire package journey.Transparent communicationKeeping customers informed throughout the shipping process is vital. By providing timely updates on package status, shippers can alleviate anxiety and foster trust, ultimately leading to greater customer satisfaction.Collaboration for growthStrong partnerships between shippers and carriers are crucial for leveraging shared data and insights. Engaging with logistics partners can unveil new opportunities for efficiency and improved service delivery, benefiting all parties involved.In summary, this episode highlights the importance of using analytics not just as a tool for efficiency, but as a means to elevate customer experiences and drive growth in the logistics industry. Tune in to gain valuable insights that can help you optimize your operations and enhance your service offerings.LinksConnect with Josh on LinkedIn: linkedin.com/in/josh-fredmanConnect with Mike on LinkedIn: linkedin.com/in/mike-kolenoVisit the Better Trucks website: https://www.bettertrucks.com/ Connect with Tom on LinkedIn: linkedin.com/in/tombutt

In this episode of Unboxing Logistics, Lori Boyer from EasyPost welcomes Julian Van Erlach, Senior Vice President at FabFitFun. They dive into the complexities of scaling logistics while maintaining a superior customer experience. With a unique model that generates four peak seasons annually, FabFitFun’s operations are a masterclass in efficiency, cost management, and customer satisfaction. Julian shares his insights on how FabFitFun has scaled its logistics, optimized processes, and maintained excellent customer satisfaction—even during rapid growth.Align operations with company growth"What is it that we're going to solve for or scale for?" Julian emphasizes the importance of staying closely aligned with merchandising and marketing to ensure that logistics can anticipate and meet the company's growth. FabFitFun's ability to proactively analyze purchase orders, anticipate challenges, and prepare operationally has allowed them to efficiently handle millions of customized orders.Overcome choke points with smart solutions Julian identifies the key areas that create choke points in logistics, from shipping costs to scaling labor. By using cartonization software like MagicLogic to optimize the size of every box, FabFitFun has saved "many, many millions of dollars per quarter" while minimizing wasted space. Additionally, FabFitFun’s ability to scale labor efficiently, hiring temps to meet seasonal demand, has been crucial to their success.Prioritize customer experience and operational efficiencyOne of Julian's standout insights is how FabFitFun has balanced cost-saving measures with enhancing the customer experience. "There is no trade-off," he explains, citing zone skipping as an example where they simultaneously save money and reduce shipping time. By prioritizing recycled materials, clear communication, and precise cartonization, they ensure that customers receive their orders on time and in great condition, all while reducing costs.FabFitFun’s success lies in its ability to anticipate challenges, optimize operations, and prioritize customer satisfaction without compromising efficiency. Whether through advanced technology, proactive labor management, or innovative shipping strategies, the company has created a logistics model that supports rapid scaling while maintaining an exceptional customer experience. As Julian puts it, “Being attuned to company strategy and world events” is essential for any company looking to scale successfully.LinksConnect with Julian on LinkedIn: linkedin.com/in/inventorymgmtandlogisticsVisit the FabFitFun website: www.fabfitfun.com/ Email Julian: julian.vanerlach@fabfitfun.com

SHOW NOTESIn this episode of Unboxing Logistics, Lori Boyer of EasyPost interviews Glenn Gooding, president of iDrive Logistics, about navigating the complexities of peak season. Glenn shares his 39 years of experience in the small parcel supply chain, providing practical tips for planning, communication, and technology. From demand forecasting to managing unexpected challenges, Glenn emphasizes that peak season success hinges on thorough preparation and proactive collaboration with partners. The conversation touches on the importance of aligning with carriers, maintaining clear communication across stakeholders, and preparing both technology and operations well in advance.You can’t plan enoughGlenn stresses that planning for peak season must go beyond just operational logistics—it should involve in-depth communication with all stakeholders, including customers, suppliers, and carriers. Starting the planning process early is essential, especially when it comes to technology. "Failure to plan is a plan to fail," Glenn says, recalling his early lessons from UPS. Companies should begin evaluating their technology in Q1 and develop a roadmap that aligns with both client expectations and operational capabilities.Communication is criticalCommunication, both internally and with external partners, is vital to ensuring a successful peak season. Glenn highlights the need for ongoing dialogue with carriers, suggesting that companies forecast demand accurately and proactively collaborate to reduce strain on carrier networks. He advises, "The easiest time to lose a customer is through a poor performance in Q4," emphasizing the importance of aligning expectations and ensuring seamless customer experiences, even when challenges arise.Embrace flexibility and team moralePeak season is unpredictable, and companies must prepare for various worst-case scenarios, such as higher-than-expected demand or adverse weather conditions. Glenn recommends having a "master operating plan" in place, with designated leaders to manage crises effectively. Additionally, maintaining a positive team environment during stressful times is crucial. As Glenn notes, leadership should "embrace the challenge" and motivate teams with goals, rewards, and a positive attitude to keep morale high throughout the season.LinksConnect with Glenn on LinkedIn: https://www.linkedin.com/in/glenngoodingidl/ Visit the DHL eCommerce website: https://www.idrivelogistics.com/ 

In this episode of Unboxing Logistics, host Lori Boyer speaks with Ford Deihl, a product manager at DHL eCommerce, about the booming world of international shipping and the massive opportunities it offers for small and mid-sized businesses. Ford shares insights into the international market, how businesses can expand globally, and the strategies that can make international shipping easier than expected. The conversation touches on logistics, cultural differences, and how to optimize shipping costs while ensuring a seamless customer experience. The discussion ends with practical steps and solutions for entering new international markets.International shipping: a major growth opportunityInternational shipping represents a vast potential for ecommerce businesses, with global revenue expected to reach $6.3 trillion in 2024. Ford emphasized the importance of tapping into this market to reach new customers and grow revenue. "This is a way to grow your top line for your business and reach new customers," Ford notes. Businesses should identify markets where their products resonate and take advantage of the ease provided by modern shipping solutions.With the right partners, it’s easier than you thinkExpanding internationally may seem daunting, but it doesn’t have to be. Ford assures listeners that with the right carrier and shipping solutions, businesses can simplify the process. He recommends starting with familiar markets like Canada, the UK, and Australia, especially for small and mid-sized businesses. Using partners like DHL eCommerce, businesses can integrate shipping services seamlessly, without a heavy operational lift. "If it’s a big lift, it’s probably not the right solution for you," Ford explains, urging companies to leverage existing shipping and logistics partnerships.Prepare for successFord stresses the importance of preparation before diving into international shipping. Having strong logistics, customer service, and a well-defined brand are crucial to success. Businesses must also ensure their storefront is optimized for international customers, including local payment options and realistic shipping time estimates. Ford emphasizes, "Ideally, what you're shooting for is a domestic-like experience for an international customer." Additionally, offering Delivered Duty Paid (DDP) can enhance the customer experience by eliminating surprises at checkout, further increasing customer satisfaction and conversion rates.LinksConnect with Ford on LinkedIn: https://www.linkedin.com/in/forddeihl/ Visit the DHL eCommerce website: https://www.dhl.com/global-en/home/our-divisions/ecommerce.html 

Delve into the critical role of parcel data in optimizing shipping operations, especially as businesses gear up for peak season. Megan Rudolph, senior director of parcel operations at Saddle Creek Logistics, shares her expertise on how to collect, analyze, and leverage parcel data to enhance customer satisfaction, reduce costs, and ensure carrier accountability. The essentials of parcel dataMegan emphasized that parcel data boils down to two main metrics: transit time and cost. She explains, “Parcel analytics is all the data that allows you to measure those two things.” Understanding these two metrics at a granular level enables businesses to manage consumer expectations, optimize costs, and hold carriers accountable. Megan also stresses the importance of real-time data, particularly for tracking shipments and managing delivery exceptions. Leveraging data for cost optimizationSurcharges are a significant factor in shipping costs, and Megan advises businesses to closely monitor these charges to identify opportunities for cost savings. Businesses can use parcel data to negotiate better rates with carriers and make informed decisions about service selection. “Knowing how to leverage that data to negotiate is really important,” Megan notes, highlighting that businesses can shift volume to different carriers if necessary to optimize costs. The role of AI in parcel analyticsLooking ahead, Megan is excited about the potential for AI to democratize data analytics. She explains that AI can help those who are less data-savvy to easily access and interpret parcel data, thus lowering the barrier to entry for effective data use. “AI becomes a facilitator,” she says, allowing businesses to ask simple questions and receive actionable insights without needing deep technical expertise. LinksConnect with Megan on LinkedIn: linkedin.com/in/megan-rudolph-688a4743Visit Saddle Creek’s website: https://www.sclogistics.com/ 

First-mile consolidation is a great way for growing SMBs to simplify their shipping logistics. Tyler Abderholden, vice president of Sendle’s global network, explains what first-mile consolidation is and why it’s beneficial.How does first-mile consolidation work?Generally, a multi-carrier shipping strategy involves coordinating multiple pickups at different times of the day. First-mile consolidation gives small businesses a way to reap the benefits of a multi-carrier approach without the headache of multiple pickups.Tyler explains, “One driver will show up to your operation [and] pick up all of the packages, whether they're going to carrier A, carrier B, carrier C, carrier D, and so forth. … You have a single pickup. It comes at your preferred time of day.”Benefits of first-mile consolidationWith first-mile consolidation, “you are managing a single touchpoint with a single provider.” By relying on a first-mile consolidator to get packages into the hands of the right carriers, merchants avoid shipping delays caused by missed pickups. And because consolidators access volume discounts, merchants save money too.Giving customers a choiceFirst-mile consolidation provides access to a variety of shipping speeds, allowing customers to choose what works best for them. Tyler and Lori point out that the next-day shipping trend has begun to decline, with more consumers willing to wait longer for their packages. Tyler says, “Everything was moving to, how do we get to next day? And now everything has been, some things need to be next day and some things are okay to take a longer time. And that's great. Customers have that choice.”LinksConnect with Tyler on LinkedIn: https://www.linkedin.com/in/tyler-abderholden-06a00920/ Visit Sendle’s website: https://www.sendle.com/en-us