In the realm of modern logistics, this promising solution is gaining traction worldwide. Here in North America at our Brimich Logistics Inc. facilities, this innovative approach is being implemented. As one of the first facilities in North America to adopt this system, we are proud to say it has helped to align with the growing emphasis on sustainability in our supply chain practices.

Industry Snapshot

From perishable foods to life-saving pharmaceuticals, maintaining precise temperature control throughout the supply chain is not just a preference; it’s a necessity. There are two dominating factors causing food waste in the Logistics and Supply Chain industry:

1. A lack of high-quality reliable Cold Storage temperature control
2. Inefficient handovers causing unforeseen breaks within the supply chain.

Brimich Logistics Inc. is dedicated to offering dynamic customizable solutions for clients, so that we can each strive in this area.

Brimich Logistics Inc.

Among early adopters of these CO2 systems is Brimich. Our very first Cold Storage CO2 facility was opened at 470 Hardy Road in Brantford Ontario in 2021. This adaptive strategy has become one of the most crucial value-added services for clients’ dynamic and ever-changing needs. To date, a portfolio of core high-profile clients are uniquely serviced at our 130,000 square foot CO2 Cold Storage facility in the Oak Park industrial area in Brantford, Ontario.

This initiative has lasting impacts on the client’s bottom line, efficiency within the Cold Storage supply chain and environmental benefits. Ultimately this service offering directly improves company bottom-lines and the quality of product the end consumer receives. Proper temperature control is vital for keeping frozen foods fresh as approximately 13% of all globally produced food is lost each year due to poor supply chain processes.

At Brimich, we strive to continuously adapt to this dynamic and vast industry. Our goal is to remain impactful and innovative in an industry where the end-consumer expectations of quality, time and offerings is ever-changing and deeply dynamic. Our passion is to focus on solutions that increase the durability of the supply chain processes our clients experience, while standing with integrity throughout the entire process.

Market Size: A Growing Giant

The Cold Chain Logistics market has been on a steady rise, propelled by the increasing demand for perishable goods worldwide. According to recent studies, the global Cold Chain market size was estimated to be over $200 billion in 2021 and is projected to continue its upward trajectory.

By 2030 the market is expected to be valued at $782.27 billion. Factors such as globalization, urbanization, and changing dietary preferences contribute to this expansion.

The Crucial Role of CO2 Cold Chain Storage

Within the realm of Cold Chain Logistics, Carbon Dioxide (CO2) as a refrigerant has re-emerged as a key player, revolutionizing the way perishable goods are stored and transported. Unlike traditional refrigerants such as Freon, CO2 offers several environmental and operational advantages. Its non-toxic and non-flammable nature makes it safer for both workers and the environment.

The importance of CO2 Cold Chain Storage extends beyond its environmental benefits. Its high cooling capacity and efficiency ensure precise temperature control, critical for preserving the quality and safety of perishable goods.

Moreover, CO2-based refrigeration systems are increasingly recognized for their reliability and cost-effectiveness. As businesses strive to optimize their operations and reduce operational costs, CO2 Cold Chain solutions offer a compelling proposition – combining performance with sustainability.

Using CO2 as a refrigerant is like recycling or delaying emissions. This is because CO2 is an industrial by-product emitted from factories. By using CO2 resources captured from this process, CO2 gas mimics environmental recycling processes.

Leading Regions in the Industry

While the demand for Cold Chain Logistics is ubiquitous, certain regions have emerged as leaders in driving innovation and adoption within the industry:

• North America: With a well-established infrastructure and stringent regulatory standards, North America boasts a mature Cold Chain Logistics market. The region’s advanced technology adoption and emphasis on food safety have propelled the growth of Cold Chain solutions, including CO2-based refrigeration systems.
• Europe: Europe stands at the forefront of sustainability initiatives, driving the adoption of eco-friendly Cold Chain practices. Countries like Germany and the Netherlands are renowned for their advanced logistics infrastructure and commitment to reducing carbon emissions. CO2 refrigeration technologies are gaining traction across Europe, supported by government incentives and regulations promoting environmental sustainability.
• Asia-Pacific: Rapid urbanization and changing consumer lifestyles in Asia-Pacific have fueled the demand for Cold Chain Logistics, particularly in emerging markets like China and India. As these economies continue to grow, the need for efficient and sustainable Cold Chain solutions becomes more pronounced. CO2 refrigeration systems offer a promising solution to meet this demand while addressing environmental concerns.

A Promise From Us

Not all logistics problems have the same solutions, which is why we work alongside clients to build a unique customized solution. With Brimich, all your CO2 Cold Chain needs will be met with a reliable representative who can combine local presence and global reach. We strive to bring simplicity and predictability, while also reducing risk and administrative workloads on your business.

We create solutions that are governed by a strong commitment to helping your supply chain performance and efforts towards carbon neutrality!

Imagine having to track all your inventory without the aid of technology – fun, right? Not at all. Luckily we have, and have had an evolving modern digital method of tracking inventory in the form of a warehouse management system.

A warehouse management system (WMS) is an integral tool that can significantly streamline your warehouse operations. By implementing a WMS, your inventory management becomes a more transparent and efficient process. The system provides real-time updates, ensuring accurate inventory levels and reducing the likelihood of overstocking or stockouts. You will have a clear view of your inventory at all times, which can help in making informed decisions when it comes to purchasing and logistics.

Your organization can achieve a new level of order and accuracy with the help of a WMS. This system is designed to optimize all your warehouse tasks by sequencing jobs, directing picking, and suggesting replenishment strategies to save your employees’ time. As a result, your team can focus more on critical tasks rather than manual data entry or error correction. Bringing AI into the mix, the system can forecast needs and set priorities for tasks based on the most efficient routes and methods, thereby boosting productivity.

Leveraging a WMS contributes to better integration with an Enterprise Resource Planning (ERP) system. This integration facilitates seamless data flow between systems, allowing for smoother automation of processes and enabling better decision-making based on comprehensive data analysis. Consequently, automation in a WMS not only accelerates warehouse activities but also minimizes human error and enhances overall efficiency. Your business stands to gain a competitive edge with a robust warehouse management system at its core.

Core Components of Warehouse Management

Effective warehouse management is crucial for reducing costs, optimizing efficiency, and enhancing accuracy in inventory and order processing. Below are the fundamental components you should consider integrating to maximize your operation’s potential.

Inventory Management and Accuracy

Your inventory is the backbone of your warehouse. Implementing real-time inventory tracking ensures accuracy and visibility across all your stock levels. Sophisticated systems utilize cloud-based solutions and automated systems to update inventory data instantly, minimizing errors and maintaining precise inventory control. This often involves technologies like barcoding, RFID (radio-frequency identification), and integration with ERP (Enterprise Resource Planning) systems to synchronize inventory information.

Receiving and Put-Away Efficiency

Upon receiving new stock, efficiency in the receiving and put-away process is vital. A robust system will facilitate rapid unloading, inspection, and recording of incoming items. The put-away strategy should be optimized to enable quick access and space utilization, often using FIFO (First-In-First-Out) or batch and lot tracking methods to maintain freshness and compliance.

Picking and Packing Strategies

Streamlining your picking and packing process with established strategies like zone, wave, or batch picking can substantially boost productivity. Automated systems can direct warehouse personnel to the correct storage locations, minimizing travel time and increasing the speed of order processing. Proper packing ensures that orders are secure and ready for shipment with the correct documentation, reducing errors and returns.

Shipping and Order Fulfillment

Efficient shipping protocols and order fulfillment systems are essential for timely deliveries, customer satisfaction, and repeat business. Integrating your management system with carriers can automate shipment scheduling and tracking, providing up-to-date information about each order’s status. Matching orders with optimal shipping methods based on cost, speed, or carrier preference is a critical feature of advanced warehouse management systems.

Labor and Workforce Management

Managing your workforce strategically can lead to improved performance and reduced operational expenses. Warehouse management systems can forecast labor demands and schedule warehouse personnel effectively. By analyzing labor patterns and productivity, you can align your workforce with your operational needs, ensuring that staff is utilized where and when they’re most needed.

Integrating Technology for Enhanced Performance

Integrating advanced technology within your warehouse management system significantly increases performance efficiency across all operations. From artificial intelligence optimizing logistics to mobile solutions improving real-time communications, the focal point is on streamlining the supply chain.

Artificial Intelligence in Warehouse Operations

Artificial intelligence (AI) transforms how you manage inventory tracking and predict supply needs. AI-powered analytics provide deep insights into your warehouse’s functioning, enabling you to harness data for improved decision-making. By predicting trends and analyzing past performance, you optimize your inventory levels and reduce waste.

Role of Automation and Robotics

Automation streamlines your warehouse’s repetitive tasks, such as sorting and transporting goods, increasing productivity and reducing errors. Robotics, such as automated guided vehicles (AGVs), seamlessly integrate into your operations, enhancing speed and precision in material handling. These technologies work in tandem to boost your warehouse’s overall throughput.

Software Systems: Cloud-Based vs On-Premises

Deciding between a cloud-based WMS and an on-premises solution impacts your operational scalability and data accessibility. Cloud-based systems offer you real-time data access from anywhere, enhancing your supply chain visibility. In contrast, on-premises WMS may afford greater control over customization and security, vital for your company’s specific needs.

Mobile Solutions and Voice Technology

Mobile devices armed with barcoding and voice technology give you the flexibility to perform on-the-go inventory management, leading to error reduction and time-saving in order picking. Implementing pick-to-light systems and utilizing sensors throughout the warehouse further drives efficiency and accuracy in your logistic operations.

Examples of Warehouse Management Systems

ProVision

ProVision is a high-end warehouse management system solution that is user-configurable to manage a wide range of warehouse operations and activities. This warehouse management system is popular among several reputable supply chain and logistics companies, including Brimich Logistics.

Infoplus

Infoplus is the ideal warehouse management solution for small to mid-sized companies in a wide range of industries. This warehouse system is a web-based solution and features core inventory management, demand forecasting, and inventory optimization.

Oracle SCM Cloud

Oracle is a cloud-based warehouse management system that is geared towards distribution manufacturing, inventory management, and fleet management. An additional feature of Infoplus is product development that companies can use to create a bill of material from a conceptual design.

Optimizing Warehouse Operations

Implementing a warehouse management system (WMS) can significantly enhance your operational efficiency by streamlining warehouse processes, boosting productivity, and reducing labor costs.

Workflow Optimization and Lean Management

By adopting a WMS, you ensure your workflow is calibrated for peak efficiency. Key performance indicators (KPIs) such as order fulfillment rates and travel time within the warehouse are optimized, leading to a more lean management system. This means that your employees can navigate the warehouse quicker and with more accuracy, effectively reducing unnecessary steps and time spent on each task.

• Productivity Boost: Tasks are prioritized and directed through the most efficient paths.
• Labor Costs: Precise management of labor reduces excess staffing requirements.

Quality Control and Customer Satisfaction

A sound WMS aids in maintaining high quality control standards, which directly impacts customer satisfaction. Your ability to trace and handle products throughout the fulfillment process is sharpened, so errors in inbound receipts and outbound deliveries are minimized – ensuring that the right product reaches the customer in perfect condition.

• Quality Assurance: Systematic tracking of products to prevent errors.
• Customer Experience: Enhanced by delivering orders accurately and on time.

Tracking and Reporting for Continuous Improvement

Real-time tracking and reporting functions of a WMS grant you oversight over every aspect of your warehouse operations. With complete visibility into your supply chain management, you can continually refine your processes, leading to sustained operational efficiency.

• Continuous Improvement: Data-driven insights help refine warehouse processes.
• Monitoring: Key metrics are tracked to oversee and improve warehouse monitoring and reporting.

Strategic Business Impacts

Implementing a warehouse management system (WMS) can have significant strategic impacts on your business by optimizing supply chain efficiency, adapting to evolving market conditions, and enhancing customer relations.

Supply Chain Synergy and Cost Reduction

Enhanced ERP Integration: Your WMS should seamlessly integrate with enterprise resource planning (ERP) systems, leading to real-time inventory accuracy. This synergy facilitates:

• Effective labor forecasting, optimizing workforce allocation.
• Improved pick accuracy, reducing error rates and returns.

Cost Reduction Strategies:

• Operating Costs: Streamline warehouse operations to reduce wastage and lower costs.
• Demand Forecasts: Utilize accurate data to improve ordering and stock levels, minimizing overstocking or stockouts.

Adapting to E-commerce and Market Trends

E-commerce Growth Management: As your online sales grow, a robust WMS helps you handle increased order volumes and maintain customer service quality. This supports:

• Omni-channel Fulfillment: Enable seamless integration across sales channels for a unified customer experience.
• Scalable Solutions: Adapt to changing market trends with a WMS that scales with your business needs.

Enhancing Customer Experience and Loyalty

Delivering on Customer Expectations:

• Traceability: A WMS offers improved traceability, giving your customers visibility into their order status.
• Customer Experience: Accurate and speedy fulfillment raises customer satisfaction and fosters loyalty.

Employee Morale and Service Quality:

• A well-organized warehouse boosts employee morale, which in turn can lead to better customer service.

Frequently Asked Questions

This section answers common queries about the specific advantages of integrating a Warehouse Management System (WMS) into your logistics operations.

How can a Warehouse Management System improve inventory control?

A Warehouse Management System streamlines your inventory control by providing accurate real-time inventory tracking and minimizing the chances of overstocking or stockouts. With a WMS, you’re equipped with the tools to maintain optimal inventory levels.

In what ways does a Warehouse Management System enhance customer service?

By ensuring that accurate stock levels are maintained and that orders are processed efficiently, a Warehouse Management System helps deliver orders to your customers correctly and quickly, thereby enhancing customer satisfaction and trust in your service.

How does a Warehouse Management System contribute to the efficiency of order fulfillment?

A Warehouse Management System optimizes order fulfillment processes by automating tasks such as picking and packing, and by directing workflow intelligently. This contributes to a faster turnaround time from order receipt to shipment.

What is the role of a Warehouse Management System in reducing errors in warehouse operations?

A Warehouse Management System reduces the likelihood of human error in warehousing operations by automating data capture and utilizing barcode scanning or RFID technology. This enhances accuracy in order processing and inventory management.

How does a Warehouse Management System support real-time data reporting and analysis?

A WMS offers real-time data reporting and analysis tools which support quick decision making and provide valuable insights into your warehouse operations. This data can be leveraged to improve efficiency, reduce costs, and forecast future inventory needs.

Contact Brimich Logistics to Manage Your Inventory

If you feel your business could benefit from the addition of a new or updated warehouse management system, contact Brimich Logistics today for a free no-obligation quote.

Incredible changes are currently redefining the path of moving goods from one business to another. As we continue to move into the future of B2B third party logistics and order fulfilment, what signs should we be paying attention to?

The challenges of dealing with the pandemic both revealed and accelerated opportunities in the supply chain. Combined with technological advances enabling the ability to drill down on specific customer needs, B2B 3PL partnerships have in front of them new paths to success on all fronts.

Let’s have a closer look at the challenges facing B2B 3PL operations, and how emerging technologies are providing solutions.

B2B 3PL Defined

To be specific, B2B 3PL is the process by which businesses outsource their order fulfilment, warehousing, shipping, and other logistics needs to a third-party provider.

This allows businesses to focus on their core competencies while leaving the logistics to the experts. Thanks to the rise of e-commerce, B2B third party logistics is a booming industry, with many businesses outsourcing their logistics needs to third-party providers in order to save time and money.

Differences Between B2B and B2C

A quick look at the interior of a related 3PL warehouse will give you a very good idea of whether an operation is B2B or B2C.

For example, a B2B fulfilment warehouse will tend to handle large items or irregularly shaped products on their way downstream through the manufacturing chain. A B2C warehouse on the other hand will often store large quantities of the same item such as FMCG products bound for retail store shelves, or multiple types of items in smaller quantities being prepared for last mile delivery.

With the ongoing evolution of the supply chain, unified supply chains are streamlining processes even further to include more wholistic B2B2C operations within some market segments. This provides complete control over the entire logistics process from intake of raw materials and manufacturing to final delivery.

Challenges Facing B2B Shipping

The major challenges in fulfilment faced by both B2B, B2C and even B2B2C, lie in the immediacy of demand for timely delivery of goods and the ability of logistics partners to keep up with operational needs.

“Only when fulfillment demands are met can a manufacturer plan for exponential growth”

Source: John Hayes: Director of Sales for Balyo USA as quoted in Forbes

From a 3PL point of view, a growing B2B client will not only require more flexible warehouse space, but the means to handle orders quickly, efficiently and accurately.

In the best of times, some businesses must have the ability to adjust to the massive roller coaster swings of seasonal trends. There are also labour issues, both of which tend to be relatively constant compared to the need for staying on top of technologies designed to make orders and tracking more efficient.

Like it or not, the pandemic spurred a 77.6% increase in e-commerce due to the need for safety and fuelled by convenience. 3PL providers had no choice but to adapt by proving themselves to be agile and more flexible than ever before. As we’ve seen in the last couple of years, the pandemic also exposed liabilities in a fragile supply chain that manifested in a shortage of truckers and empty store shelves.

With B2B e-commerce taking up more and more market share, and ever-impatient customer demands, business leaders find themselves with their hands full trying to navigate developmental challenges.

In general, the rapid growth of e-commerce has significantly impacted B2B shipping expectations and the logistics industry as a whole. With the rise of online shopping, businesses feel more pressure to ensure that their products are delivered quickly and accurately. This has led to an increase in demand for 3PL providers who can offer fulfillment services such as warehousing, packaging services, inventory management, and last-mile delivery.

Opportunities and Solutions

Wherever there’s a bottleneck in the supply chain, whether it be in the physical transportation of goods or in data management, there’s an opportunity.

“Companies are facing unprecedented change due to innovation, technology disruptions, and evolving customer expectations. Supply chains are becoming unbundled and customized to reduce costs and meet evolving customer needs. Logistics structures will also shift to more specialized solutions tailored to different customer segments, modes of transportation, and distribution networks.”

Source: KPMG Advisory on the Future of Logistics

If you drill down into the specifics of oncoming capabilities, the opportunities are staggering – and fully capable of becoming new market segments all on their own. Take for example the drone technology and fully automated vehicles which, quite possibly, could become the mainstays of  intelligent logistics.

Nonetheless, here’s an overview of some of the more immediate solutions both currently in use and on the horizon:

Automation And Robotics

Automation and robotics are revolutionizing the logistics industry, and by extension providing serious benefits to B2B shipping. Robotic process automation (RPA) and artificial intelligence (AI) are being used to streamline processes, reduce costs, and improve efficiency. Automated guided vehicles (AGVs) are used in warehouses to transport goods, while drones are being tested for last-mile delivery.

Big Data Analytics

Data is the new oil in today’s digital age. Big data analytics is a game-changer for the logistics industry. Businesses can use data to optimize their supply chain, identify inefficiencies, and make informed decisions. Predictive analytics can help 3PL providers to forecast demand and optimize inventory levels.

Sustainability And Green Logistics

Sustainability and environmental concerns are increasingly becoming critical issues for businesses. Consumers are demanding eco-friendly products and environmentally responsible practices. Green logistics is an approach that focuses on reducing the environmental impact of logistics operations. It involves using renewable energy, reducing waste, and optimizing transportation routes.

Personalization And Customer Experience

Personalization and customer experience are crucial in today’s consumer-centric world. B2B businesses are also starting to recognize the importance of providing a personalized customer experience. 3PL providers can help businesses to achieve this by offering customized logistics solutions tailored to their specific needs.

In Closing

The future is coming, some would say the future is already here. Either way one thing is for certain, there will always be advancements and challenges in B2B logistics. Moving forward, the dependancy on technology to provide solutions may be the answer, but benefits do not always come without associated costs.

Does your 3PL provider live up to your expectations and deliver what your company needs? Are they paying attention to the trends and demands shaping the future of your business? As a growing family owned company with operations in Brantford and Etobicoke Ontario, Brimich Logistics and Packaging is willing and able to serve all your transportation and climate controlled warehouse needs. Contact us today!

There are some elements that are always in demand such as reducing delivery times, controlling transportation costs and increasing overall efficiency. But how do current trends affect these systems, and what future challenges can be overcome by adopting emerging warehousing technologies?

What is Warehouse Technology?

Warehouse technology is the hardware, software, and mechanisms that drive the logistical process of moving goods from the point of production to the point of sale.

“At a 14.6% CAGR, Warehouse Automation Market is Projected to Reach USD 38.23 Bn by 2027”

Brandessence Market Research

Warehouse technology has evolved from simple tools like conveyor belts, forklifts, and pallet jacks to computerized systems that are designed to streamline operations and maximize productivity.

Warehouse technology can be broken down into a few main categories;

• Cloud technology in warehouses
• Warehouse Management Systems
• Automatic Storage and Retrieval Systems (ASRS)
• Automatic Guided Vehicles (AGVs)
• Robotic Process Automation (RPA)
• RFID in Warehouse Automation
• Automated Inventory Control Platforms

1. Cloud technology in Warehouses

Cloud technology provides access to data through the internet without needing to store information on-site. This data can be anything from inventory records to sales figures. Companies are increasingly adopting cloud technology in their warehousing operations.

Cloud-based software can be integrated with existing warehouse management systems and is easier to modify as customer requirements change. Cloud technology can also improve communication between departments through centralized data and analytics and is beneficial for warehousing operations in all industries; it can be scaled to meet the specific needs of each company.

2. Warehouse Management Systems

Warehouse management systems help track the movement of goods along the supply chain and keep an eye on inventory levels.

There are three main types of software: A Warehouse Management System (WMS) is used to plan and execute all warehouse activities.

An Asset Tracking System (ATS) helps track inventory and its location whereas Warehouse Execution Systems (WES) are used to manage the workflow of employees working in the warehouse.

Over time, warehouse technology has evolved from simple tools like conveyor belts, forklifts, and pallet jacks to computerized systems that are designed to streamline operations and maximize productivity.

It’s no surprise that WMS is the fastest-growing segment of the warehouse technology industry – boosting warehouse productivity by 50% and reduce costs by 10%. In fact, 95% of the world’s top corporations use some form of warehousing technology.

3. Automatic Storage and Retrieval Systems (ASRS)

Automatic storage and retrieval systems (ASRS) are computerized storage systems that manage inventory flow and optimize space. These systems are engineered to eliminate the need for human operators while also improving safety and efficiency.

ASRS systems can be designed to store a range of products, from raw materials to finished goods. They may be used in warehousing, distribution centers, and retail environments to store anything from pharmaceuticals and chemicals to food and beverages.

These automated storage systems use robotics and control systems to manage inventory, and can do everything a manual shelving system can, but they can store more products with less space.

ASRS systems have also been positively impacted by AI technologies, like machine learning, that allow third-party system integrators to tailor systems to meet the specific needs of different clients

4. Automatic Guided Vehicles (AGVs)

Automatic Guided Vehicles or AGVs are unmanned automated vehicles designed to transport goods in a warehouse. AGVs can be programmed to move autonomously within a warehouse and can integrate with other systems, like WMS and ASRS. AGVs are also used to transport materials in industrial environments, such as mines, steel mills, and oil fields.

Many companies are implementing warehouse technology to automate their operations. One way this can be done is by using AGVs to transport materials between storage locations. AGVs can be designed to travel along any type of path – from straight roads to curvy railroads – and can be programmed to follow specific routes.

AGVs can be used to move both small and large loads, and they can also be used in dangerous environments.

5. Robotic Process Automation (RPA)

Robotic process automation (RPA) uses computer software to automate business processes. It’s a specific type of software that mimics the actions of a human operator.

RPA is used to execute repetitive tasks, like monitoring inventory levels, calculating taxes, or confirming the accuracy of customer orders. RPA software is programmed to follow a series of instructions so it can be used to execute complex tasks.

Robotic process automation is suited for high-volume, high-variety operations, which makes it an ideal technology for warehousing operations. It can be used to audit supply chains, as well as to automate complex warehouse tasks.

Moreover, warehouses can use RPA technology to create digital warehouses. This helps to streamline operations and increases efficiency.

Furthermore, the software can be used to create digital scanning systems to record the shipping of products, or it can be used to create digital picking systems to select products for shipment.

6. RFID in Warehouse Automation

RFID or Radio Frequency Identification technology uses radio waves to communicate information about the object to an electronic reader.

This technology is used in warehousing to track the movement and location of goods through the supply chain. Companies use RFID tags to track the flow of goods through the supply chain. They can also be used to manage inventory and improve customer service by providing real-time analytics.

RFID technology is beneficial for warehousing and logistics operations in all industries because it can be scaled to meet the specific needs of each company. It can be used to track all types of inventory in all environments. RFID readers are designed to read tags from a distance, making it easy to track inventory.

RFID tags are usually made with a piece of silicon that holds a chip. The chip is linked to information about the object, such as the product’s manufacturer, location, and unique identification number. When the tag passes near the reader (which is mounted in a warehouse or on a transportation vehicle), it’s detected and the information is transmitted to the reader. The reader transmits the information to a computer system, and it’s stored in a database.

7. Automated Inventory Control Platforms

Automated inventory control platforms are centralized computer systems that manage inventory. These systems integrate with other warehouse technologies to control the flow of goods through the supply chain and manage inventory records. In comparison, these software systems are less expensive and have a quicker ROI than automation.

They can also be used to create online marketplaces and provide customer analytics. There are two ways in which inventory can be controlled – manually or automatically:

• Manual control is when an employee manually inputs data into an inventory computer application
• Automatic control is when a computer or machine is used to collect data, often through sensors and scanners.

These systems are beneficial for warehousing operations in all industries because they can be scaled to meet the specific needs of each company.

Customizable to fit the needs of any operation, these platforms can track inventory, manage orders, and provide historical data. They can also be used to manage third-party logistics providers and provide data that’s helpful in strategic decision-making.

Challenges to Efficient Warehousing

At the grass roots level, the warehouse is often the first point of contact between a company and its customers. As such, it is critical that it be well maintained and operated efficiently.

The development of intelligent or “smart warehouse technology” through their logistics partners will help companies with the following challenges:

• The fulfillment of small orders
• Occurrences of human error
• Warehouse operators shortages
• Reducing delivery windows
• Omnichannel and ecommerce and shipments

Other top issues that companies face in optimizing this process are accuracy in inventory management, availability of goods, and the cost of goods.

These issues can be overcome through the implementation of new technologies, such as warehouse automation, sensor-based tracking, and blockchain technology.

Warehouse efficiency goes beyond just the logistics of moving goods from A to B. There must also be an emphasis on safety, accuracy, and customer satisfaction. With the tools available today, companies can achieve greater efficiency in every aspect of their warehousing operations.

Key Benefits of Warehouse Technology

As the competition in the global market increases, manufacturers are bringing these new warehousing systems and technologies into their supply chains to stay ahead in the race.

In the same way, manufacturers of warehouse equipment are upgrading their systems to make them more efficient, less costly, and easy to use. With the help of new technologies, warehouses can become more profitable.

A few key benefits include:

• Increased productivity and efficiency
• Reduced labor costs
• More efficient inventory management
• Faster production flows
• Diminished risk of processing errors

On the downside, more technology means less people, and fewer jobs. On the upside, less people means fewer resources, for example lights, HVAC systems, etc which are required to keep humans safe and comfortable in warehouses.

Through standardization, integration, automation, and simplification, EDI (Electronic Data Interchange) has become the lifeblood of the logistics industry, and something you might want to be aware of if you’re shipping products.

What is Modern EDI?

Modern EDI is a protocol that allows two systems to connect with one another for the purpose of exchanging data electronically.

Developed in the early 1960’s, this EDI protocol was first used to send shipment information between the Du Pont company and Chemical Leahman Tank Lines.

Later in 1982, other large companies like Ford and GM realized the potential benefits and began requiring their suppliers transfer information through EDI. Within a decade EDI was being used by roughly 12,000 businesses.

Since then, their numbers have continued to grow as businesses capitalized on the efficiencies gained by exchanging information through this secure channel.

How Does EDI Work?

To understand the fundamentals of how EDI works, we must first understand the terminologies. According to EDI Basics, the following definitions apply:

• Standard format– Because EDI documents must be processed by computers rather than humans, a standard format must be used so that the computer will be able to read and understand the documents. A standard format describes what each piece of information is and in what format (e.g., integer, decimal, mm/dd/yy). Without a standard format, each company would send documents using its company-specific format and, much as an English-speaking person probably doesn’t understand Japanese, the receiver’s computer system doesn’t understand the company-specific format of the sender’s format.

  • There are several EDI standards in use today, including ANSI, EDIFACT, TRADACOMS, and ebXML. And, for each standard, there are many different versions, e.g., ANSI 5010 or EDIFACT version D12, Release A. When two businesses decide to exchange EDI documents, they must agree on the specific EDI standard and version.
  • Businesses typically use an EDI translator – either as in-house software or via an EDI service provider – to translate the EDI format so the data can be used by their internal applications and thus enable straight-through processing of documents.

• Business documents– These are any of the documents that are typically exchanged between businesses. The most common documents exchanged via EDI are purchase orders, invoices, and advance ship notices. But there are many, many others such as the bill of lading, customs documents, inventory documents, shipping status documents, and payment documents.

• Business partners– The exchange of EDI documents is typically between two different companies, referred to as business partners or trading partners. For example, Company A may buy goods from Company B. Company A sends orders to Company B. Company A and Company B are business partners.

• Computer-to-computer– EDI replaces postal mail, fax, and email. While email is also an electronic approach, the documents exchanged via email must still be handled by people rather than computers. Having people involved slows down the processing of the documents and also introduces the potential for a host of errors. Instead, EDI documents flow straight through to the appropriate application on the receiver’s computer (e.g., the Order Management System) and processing can begin immediately. A typical manual process involves lots of paper and people, the EDI process does not.

EDI for Logistics

Logistics companies rely on EDI data to simply get things done. From on-boarding a new trading partners, to customer communications, connecting and integrating EDI transport data across the supply chain is of the utmost importance.

Being able to scale quickly is what every logistics company wants to be able to do. Modernized EDI systems give organizations the control needed to do business with customers and trading partners around the planet.

These critical data exchanges are based on four key factors:

• standardization
• automation
• integration
• and simplification

Using this foundation, companies can send and receive electronic documents: Tradacoms, EANCOM, X12, EDIFACT, HIPAA, ODETTE, VDA, and much more.

Modern EDI provides the capability to accommodate and leverage all of these communication standards quickly and efficiently across the entire logistics industry.

Moreover, every industry, from transportation and logistics to manufacturing and retail has its own recurring EDI transactions. And for the record, each EDI document transaction contains a certain amount of important data. Without it, the EDI document is practically useless.

EDI and Transportation

As transportation has evolved, Electronic Data Interchange has become a requirement in the transportation industry. Shippers, brokers and carriers all try to integrate and exchange information as fast as possible.

With logistics blooming and escalating to millions of transactions, EDI enables the exchange of invoices, remittances, shipping manifests, BOLs, and shipping statuses.

The major benefits of EDI in transportation is in reduced manual tasks, decreases costs, and the eduction human error.

Transportation Related EDI Examples

The Downsides of Modern EDI

For one, EDI communication is always one-way; information is sent from system A to system B without confirmation in the transaction set. To confirm reception, system B would have to send a transaction back to system A.

The second major disadvantage of EDI is that, due to network issues, transmission delivery times can be unpredictable. In other words, transmissions can take anywhere from fifteen minutes to four hours.

This can be a major deterrent to EDI in an age where time is money, and information needs to be exchanged immediately.

Electronic Data Interchange (EDI) refers to a means by which businesses replace paperwork and the sharing of physical documents with the use of electronic documents.

The use of this technology has found its way into the logistics industry. Let’s look at how this solution is used in logistics and its benefits.

What are the standards of EDI?

EDI standards is a broad term used by software developers to describe templates used in EDI. These are standard across all platforms on which they are to be used or, if not, can easily be suited to the businesses that use them. EDI standards are necessary if business communication is to be effective, especially for logistics companies.

What are the types of EDI?

There are several types of EDI that a logistics company can work with. The following is a list of some of the most common EDIs.

• Direct EDI – Also known as point-to-point EDI, this is a prominent EDI that allows a business to deal with each of its partners as separate individuals. This is very beneficial for a business that partners with several logistics companies or a logistics company that partners with many businesses. Each business can book work, manage its account, and send invoices without interfering with another business on the same platform.
• EDI via AS2 – This is a type of EDI that allows documents and data to be shared over the internet. It continues to gain market in the logistics industry because of its ability to connect with several computers.
• Web EDI – This is an even better form of the EDI via AS2. This type of EDI allows access of documents via an ordinary browser.
• EDI outsourcing – Here, a firm chooses to hire another one to help it manage its EDI systems. This is common for many businesses that may need EDI services without the capacity to set up in-house teams.

What is the Importance of EDI?

If you are asking yourself, what is the importance of EDI, anyway? Then, to answer your question, the word ‘efficiency’ comes to mind.

EDI helps to streamline logistics services and allows easy record keeping and sharing of files. This allows for more efficiency in the handling of value tasks that help make logistics more possible.

What are the Benefits of EDI?

Aside from its importance in improving the efficiency of a logistics company, EDI also benefits a company in other many ways.

• Saving on costs – Logistics firms don’t need to set aside a massive budget for printing and mailing of documents. With EDI, the files can be shared with clients instantaneously.
• Time-saving – Compared to the past, when the document had to be crafted from scratch and then submitted to clients, EDI increases efficiency and cuts down on lost time. EDI systems have in-built templates that help make work easier.

Why EDI?

EDI is an aspect of technology that can’t be left behind in today’s logistics industry. If a  logistics company is to streamline its transactions with clients, EDI is necessary.