A PUBLICATION OF CERASIS

The Most Impactful Supply Chain & Logistics Trends in 2017

TABLE OF CONTENTS

1

2

Introduction

Supply Chain Trends of 2017

Manufacturing Trends of 2017

Conclusion

1

Logistics Trends of 2017

Logistics Technology Trends of 2017

Manufacturing Trends of 2017

3

4

5

Freight Trends of 2017

Conclusion

6

INTRODUCTION

“The problem with trends is that they are like a freight train gaining speed; everyone can see the

train, but at what point do you say the train is really moving at speed?” – Steve Banker from a

recent Forbes article.

This is quite the appropriate quote from Supply Chain thought leader, Steve Banker, the Service

Director, Supply Chain Management at ARC Advisory Group, a leading industry analyst and

technology consulting company.

The reality is that the speed at which the supply chain & logistics industries are changing are

breathtaking. Now, not all of these trends are moving at the pace that technology is moving. One

of the core trends you’ll see weaved thru out this year’s “Trends” e-book (you can download last

year’s here), is a stronger focus on the fundamentals such as adhering to risk management,

collaboration, focusing on your core, and using expert vendors to achieve your goals. It is vital

that, despite all new technology, we as supply chain & logistics practitioners are leaning on tried

and true practices. Why? Well, the great Bill Gates once said this: “The first rule of any

technology used in a business is that automation applied to an efficient operation will magnify

the efficiency. The second is that automation applied to an inefficient operation will magnify the

inefficiency.”

That quote is at the heart of this e-book and should be heeded by every supply chain & logistics

practitioner as they are attracted to amazing technologies such as robotics, the Internet of

Things, automation, and cloud-based systems, such as a transportation management system.

Finally, we include trends you will see in manufacturing and manufacturing technology. Why do

we include this information? A majority of shippers who will apply the trends & information in

the supply chain and in logistics practices, come from the manufacturing community. Therefore,

we want to make sure that supply chain practitioners as well as manufacturers understand how all

of these technologies are affecting the entire supply chain, including the supply chain &

procurement side of a manufacturing operation.

We hope you enjoy this new e-Book. Download all of our educational e-books here.

INTRODUCTION

Chapter One

Supply Chain Trends of 2017

5 Things Supply Chain Entities Need to Focus on In Trump’s Administration

At Cerasis, the topic of Amazon and its impact on logistics and manufacturing comes

up often. Amazon is taking a major share from every company involved in the global

supply chain. Dan Gilmore, Editor of Supply Chain Digest, may have described it

best as “the Relentless Amazon Assault on Everything.”

So, we must re-evaluate how we view Amazon’s impact on supply chains. The

company does have many advantages over small to medium shippers, much like your

company, but there is a light at the end of the tunnel. Your organization must take

note of Amazon is doing and use that information to create a more efficient,

productive and compliant supply chain. Meanwhile, the incoming Trump

administration has promised big changes, and although some fear changes, the supply

chain is not one to back down.

This two-part series will be broken down into the two key driving forces of change in

the supply chain, the incoming administration, and Amazon’s new services. So, let’s

think about what the new administration means for supply chain entities before we

get into how supply chain entities can truly compete with Amazon throughout 2017.

1. Ethics and Visibility Are “Top Priorities.”

President Trump is a businessman. He made great promises to reduce regulations, but

he has also made significant promises to the middle class. Regardless of how you

voted, his promise to the middle class is more likely to stand over the next four years

because its success or failure will determine his chances for re-electability in 2020.

Thus, your organization needs to look at the incoming administration with intense

resolve to maintain compliance and improve visibility.

The incoming president is also not afraid of using social media to change the

direction of public perception. In other words, if your company is not being honest

and maintaining visibility, you could be in the crosshairs of the next Tweet. Obviously,

this is the driving concern in the global economy, explains Jonathan Webb of Forbes

magazine. In other words, the time to invest into better accountability and visibility

measures, such as Software-as-a-Service (SaaS) platforms that enhance visibility, has

arrived.

2. Companies Will Be Tested by the New Administration.

This does not mean that the incoming administration is going to send out a scorecard,

but your company will be subject to any changes in international policy regarding

trade. However, companies that have already integrated supply chain operations with

third-party tools may be able to avoid failing the tests.

Integrated companies outpace nonintegrated companies by more than 30 percent,

reports IRMS 360. These organizations have backup operations in place to back up

failed backups.

Essentially, the more options a company has today will allow greater flexibility in the

face of challenge or evaluation by the new administration. By the end of the year,

trade with Mexico and China will likely decline as well.

3. Procurement Will Need to Adapt.

The “Made in America” slogan has gathered attention around the country, but not

everything that comes from China or Mexico is a finished product. Supplies and raw

materials originate in these countries too. Meanwhile, Europe is trying to negotiate the

complexities of Brexit, leaving doors to some resources unattended. Unfortunately,

this confluence of events means that simply getting the raw materials needed for your

products could become much more challenging throughout 2017. In fact, up to 33

percent of supply chain entities expect a disruption in supplier availability in 2017,

reports Material Handling and Logistics.

Procurement must evolve this year. Even in a worst-case scenario, a 35-percent tariff

on imports, your company can still survive if you can negotiate the best rates for the

raw materials available. Thus, having strong alternative suppliers in place will be

essential to your operation. Furthermore, collaboration between differing supply chain

entities will help to create more diverse procurement opportunities, explains Made in

USA News. Specifically, collaboration must focus on the following procurement

processes:

• Suppliers must derive contracts and opportunities from manufacturer success.

• Shared strategic objectives must be defined.

• Manufacturers must advocate for suppliers.

• Suppliers should have authority to refuse or negotiate certain terms of services.

• Both manufacturers and suppliers should promote an inclusive approach to

procurement.

4. Business Self-Interest Will Drive Investments.

There is no way to tell exactly what the state of imports and exports will look like at

the end of 2017. The new administration’s current actions suggest all investments in

the supply chain will be the result of business self-interest. In other words, businesses

are looking to invest in their own companies to avoid possible persecution or

alienation. Moreover, self-interest investments are not as risky as investing in other

aspects of the supply chain while regulatory oversight is being reviewed, reconsidered

and changed by the new administration.

More importantly, according to the ASQ 2017 Manufacturing Outlook Survey, reports

Material Handling and Logistics, up to 74 percent of companies expect average

salaries of workers to increase. Meanwhile, 46 percent of companies expect to expand

existing workforces. Consequently, these companies are growing even during

uncertainty, so your company needs to think about expanding and optimizing

operations as well.

5. Fleet Investment Will Dominate Supply Chain Trends in 2017.

Of the promises made by the new president, investment in infrastructure appears to

be one of the most likely to come true. The country’s deteriorating infrastructure

gained media exposure throughout the election cycle. Thus, the country’s roadways

may be on President Trump’s top list for immediate attention.

Better roads mean many things to supply chain entities. Primarily, investment into

new or upgraded fleets can finally be achieved without the worry of a crumbling

infrastructure, explains Capacity LLC. In other words, better roads will reduce

accidents and wear and tear on new vehicles. New fleet investments, such as increased

research and application of self-driving trucks, will help to reduce the driver shortage

and stimulate the supply chain.

What Does It Mean?

The new administration is quite simply causing some turmoil, but that does not mean

that supply chain entities will face doom and gloom over the next few years. Instead,

the new administration is giving supply chain entities the perfect reasons to expand

their operations and reduce risk by holding them more accountable for their actions.

Essentially, the new administration is spurring investment out of uncertainty, and

these investments will continue to have positive returns regardless of what actions are

taken.

Top 5 Trends to Know to Compete with

Amazon’s Supply Chain

Aside from the new administration, Amazon’s supply chain continued push deeper into

new and existing markets will define additional trends in the supply chain throughout the

coming year. While supply chain entities struggle to stay competitive with the e-

commerce giant, more organizations will look for ways to eliminate inefficiencies and

boost operations. Fortunately, these five trends may alleviate some of the strains of

competition by giving supply chain partners an advantage in the global market.

1. Robotics Will Grow More Versatile.

Amazon’s purchase of Kiva Robots changed the landscape of robotics in the supply

chain. However, new companies are being created and developed to fill the void. The

robotics company, Starship, released a robot that delivers meals and groceries to people in

Euro metro markets. Meanwhile, Lowe’s has created the LoweBot, which boosts

customer service, explains Dan Gilmore of Supply Chain Digest.

More companies are turning to robotics to find new ways to bridge the divide between a

dwindling number of customer service representatives, including store associates, and

maintaining around-the-clock operations. Across the spectrum, robotics will become

more versatile and accessible. In other words, robots will gain new movements, capable

of picking items from shelves in warehouses and storefronts.

Per IDC Manufacturing Insights, the use of robotics will become more platform based

through robot-as-a-service, reducing costs of deployment and maintenance. Furthermore,

the speed of operation of robots will increase more than 30 percent by the end of 2017.

Clearly, robotics will become more important in 2017 than during any previous year.

2. Technology Will Reshape Procurement Practices.

Better procurement practices translate into better overall sales, but the role of

procurement in driving sales’ statistics will change throughout 2017. Today, procurement

drives up to 67 percent of sales, explains Johnathan Webb of Forbes magazine, as

procurement professionals look for innovative ways to produce effective, superior

products.

For example, Johnson & Johnson procurement professionals actively review market

trends before making purchases. Upon identifying these trends, a correct forecast of

supply demands can be generated. Thus, the role of procurement has become more

focused on being physically involved in market news and research, not just signing

purchase orders in an office.

3. More Businesses Will Create E-Commerce Platforms.

Amazon’s supply chain empowered the e-commerce market by giving everyone an

opportunity to sell their goods online, which has made competing with Amazon difficult

at best. Amazon’s supply chain expansion culminated in more companies looking to enter

e-commerce without giving shares to Amazon. Companies expanded e-commerce and

omnichannel solutions simultaneously as well, reports Steve Banker of Logistics

Viewpoints.

For example, Walmart and Kmart redesigned their mobile e-commerce interface for

consumers, making shopping and purchasing online easier and integrated with major

companies. A simple search for a product on Walmart.com reveals partnered listings with

Wayfair and third-party sellers, much like Amazon’s current vendor options. Moreover,

customers can make purchases online and have them shipped to the store or their home.

At Walmart, customers can even pick up orders without ever getting off the car now.

Ultimately, more businesses will seek out partnerships with bigger companies to stay

competitive with Amazon’s bare price points and ease of use.

4. User Preferences Will Enhance Mobile Management Systems.

Traditional warehouse management systems (WMS) lacked integration with other

systems. Procurement strategy was not always evident. Accessibility of systems depended

on in-house IT departments, and upgrading access terminals could cause extreme delays

and problems in operations. However, newer management systems, such as a

comprehensive transportation management system (TMS) that integrates warehouse

management with transportation management, are starting to offer more accessibility and

personalization options.

In other words, accessibility and personalization allows warehouse managers and staff

members to define metrics relevant to new products and current operations, test new

processes and effectively manage the flow of goods. Similarly, new mobile options,

ranging from Android tablets to compact barcode scanners will reduce inconsistencies

and errors across the supply chain, explains IRMS 360. Paired with the advancements of

predictive analytics and the Industrial Internet of Things (IIoT), more data will result in

more efficient processes, creating a positive feedback loop throughout an organization.

5. Contingency Planning Will Become a Standard Practice.

Amazon’s supply chain has proven that not planning will result in the failure of small and

medium-sized businesses. Furthermore, natural disasters reap $211 billion from the

global supply chain annually. Having a larger global footprint is how Amazon’s supply

chain has been able to maintain operations in the face of natural or manmade disasters.

This is contingency planning.

The IIoT empowers contingency planning by giving supply chain entities real-time data

from an endless number of sources, which range from online browsing data to point-of-

sale data. Consequently, supply chains can react appropriately and divert resources to

maintain operations. But, the key to utilizing this information lies in knowing what to do

and how to do it when an event occurs. In other words, more companies will diversify

distribution, supplier and storage networks throughout 2017 to prepare for what might

happen in the future.

The Big Picture.

Supply chains must accept that they cannot equal the power of Amazon’s supply chain

without embracing these new trends. New technologies are great, but chances are

Amazon has already implemented them. Rather than falling into despair, you can use

these trends to re-evaluate processes and practices in your organization, which will help

you stay competitive with Amazon and overcome the possible challenges of the new

administration.

The complexities of the global supply chain rely on your willingness to take advantage of

new trends and technologies today, as well as tomorrow, so do not squander this

opportunity.

9. Multi-Order eFulfillment Grows Critical.

Chapter Two

Manufacturing Trends of 2017

Trends In Manufacturing: 5 Tangible

Technologies are Shaping the Future of

Manufacturing Now

Continuous improvement is part of the game in manufacturing. Factories are finding new

ways to change how products are made, reflecting an increased need for shorter product

life cycles. Among the new trends in manufacturing improving the industry, additive

manufacturing and cloud-based systems will push manufacturing forward in 2017. In fact,

rapid design and lightning-fast prototyping, reports Mark Dohnalek of Manufacturing

Business Technology magazine, will allow manufacturers to design and produce products

in a few days, if not hours. Let’s take a closer look at final five trends in manufacturing to

watch for in 2017.

1. Manufacturers Will Turn to Crowdsourcing For New Ideas.

Crowdsourcing is one of the new trends in manufacturing. As people have grown more

comfortable with virtual reality (VR) or augmented reality (AR), the demand for new

inventors has increased. As a result, companies are using crowdsourcing to kick start new

campaigns for better, faster and smarter technologies, reports Steve Erickson of the

Mazella Report. More importantly, crowdsourcing gives manufacturing a chance to judge

market value of new products before they are even created. In other words, a strong

crowdsourcing response might indicate a product’s future successes before it even hits

factory floor.

2. Enterprise Resource Planning Will Move to the Cloud.

Cloud-based systems are quickly replacing legacy enterprise resource planning (ERP)

systems in manufacturing. The cloud enables automated updating without the pitfalls of

downtime. In addition, cloud-based systems can manage whole-system solutions.

For example, a manufacturer’s financial, warehousing, shipping and auditing information

can be kept safely in one platform. This is where Software-as-a-Service (SaaS) companies

come into play. These holistic platforms offer increased versatility and flexibility to adapt

to fluctuations within markets, and they can eliminate the overhead costs of running an

in-house IT department.

Platform SaaS solutions also lead to better visibility across the entire supply chain, asserts

Synchrono of Supply Chain 24/7. Essentially, manufacturers can seamlessly integrate

existing solutions into cloud-based platforms through a series of increments, lessening

the burden of transition. In fact, adoption of cloud-based platforms for manufacturing is

expected to grow more than 20 percent between 2017 and 2018. Thus, more

manufacturers will be able to reduce costs and eliminate redundancies wherever possible.

3. Additive Manufacturing Will Move to Retailer Locations.

There is a stereotype in manufacturing of keeping product creation away from

consumers. But, emerging markets and stronger desire for customization have created a

unique paradox for manufacturers. Consumers want more complex, customized, and

unique products available immediately, and manufacturers are turning to additive

manufacturing, such as 3D printing, to meet this demand, reports Industry Week. But,

what is 3D printing really?

Technically, 3D printing could be applied to a machine using yarn to fashion a custom

accessory in the store. It can use liquid polymers to sculpt home items. The concept of

3D printing really goes back to defining ink and the medium. Meanwhile, think about the

basic component of many yarns, polyester. This is a polymer that has been put out in

fine threads to create a thick yarn. As a result, tomorrow’s manufacturers might be sitting

on store shelves, not based in factories.

4. Manufacturers Will Use “New Tech” to Draw in Millennials.

Millennials want to work with computers, not oily machines. They want meaningful,

innovative careers, and manufacturers have taken notice. 2017 will be the year that more

manufacturers draw on technology to entice millennials to enter the industry. As

mentioned previously, 3D printing is one of these technologies, but other technologies

being deployed include greater use of robotics through automated assembly and

ultrasonic quality-assurance systems. Ultimately, more technology and relatability

between millennials and manufacturers will help to drive growth in the industry

throughout the year.

5. Automation Will Reduce Bottlenecks and Improve Accountability.

Customers want more than ever before. They want the Holy Trinity of Manufacturing:

getting anything they want, anytime they want it and at the right price. In response,

manufacturers are looking to automation to improve customer service, hold the right

people and processes accountable and eliminate bottlenecks in production.

For example, manufacturers can use automation to track sales, monitor inventory levels,

monitor use of additive manufacturing, maintain control over financial information and

manage logistics processes, reports Terri Hiskey of Manufacturing Business Technology

magazine. Furthermore, automation will enable lean production, reducing overstocking

or understocking issues, explains Ilene Wolff of Advanced Manufacturing Media. This

will also help to reduce overhead costs and drive costs down for end-users. Ultimately,

lower costs in the manufacturing process through automation will enable growth in

response to market-based or political uncertainty.

The Big Picture.

At the end of 2017, manufacturing will still look similar to what it is today. However, the

biggest changes in the industry will appear subtle, reflecting changing technology and

management software applications. But, each of these trends in manufacturing will work

in tandem to create demand-driven manufacturing, empowering the supply chain along

the way. Your organization should consider exploring and implementing these

technologies and trends before your competitors put you out of business.

The "First Five" Core Manufacturing Trends of

2017

Where and how manufacturers make products for Americans will change in 2017. The

new administration is pushing for reshoring among the nation’s biggest manufacturers,

and new technologies are revolutionizing how companies respond to growing skepticism

and scrutiny by the public and government oversight as well.

Manufacturers must adapt to changing demands, or they will become nothing more than

a statistic in history books. The solution to this problem lies in understanding the “First

Five” core concepts and trends in manufacturing throughout 2017, and you need to think

how they will impact the industry and your company in the coming year.

1. The Shop Floor Gets a Digital Makeover.

The Industrial Internet of Things (IIoT) is no longer the newest kid on the block. It is

simply the most consistent kid on the block in manufacturing. Nearly every new piece of

equipment or technology is inherently imbued with data capture and processing

capabilities. Machines are talking to one another. Even the printer on your desk can

probably send an alert to your smartphone when ink runs low. This simple fact is

revolutionizing factory floors.

A report by Synchrono identified how every new upgrade leads to greater use of the IIoT

in manufacturing, reports Supply Chain 24/7. Obviously, manufacturers that have not

upgraded systems in a while will be faced with added challenges in implementing digital

processes, but making these changes today is essential to responding to changing

consumer and business-to-business (B2B) demands tomorrow.

2. Collaboration Will Become Interchangeable With Visibility.

Collaboration encourages growth and modernization of the supply chain, and it has

become synonymous with visibility. However, age-old means of collaborating, such as

emails and faxes, are insufficient to sustain the industry in 2017. Manufacturers must

look for new ways to improve collaboration.

For example, a company’s enterprise resource planning (ERP) systems should be

accessible from anywhere within the manufacturing enterprise. Logistics providers need

to know when products will be available, and warehouses must send information back to

the manufacturer to ensure supply and demand fluctuations are easily met. However, the

limitations of company-specific ERP systems are starting to stifle manufacturing

capacity, so manufacturers will need to look for new systems, including software-as-a-

service (SaaS) offers to stay competitive, explains Mark Humphlett of Manufacturing and

Business Technology magazine.

3. Big Data Accessibility Will Drive Innovation and Change.

Take a moment to think about Big Data. It is a combination of numbers, statistics,

progress reports and real-time data. In its raw form, it is useless. You cannot realistically

review every detail manually, so how Big Data is accessed and distributed will also change

in 2017. Currently, many systems analyze Big Data and disseminate reports and insights

into a sole system, but the demand for better collaboration requires a more cohesive,

interchangeable system of accountability. This will lead to the creation of more metrics

and business-intelligence tools to help improve manufacturing operations.

4. Actionable Metrics Will Enhance Operations, Reducing Costs.

The ability to access information and insights from Big Data naturally leads to actionable

metrics. Metrics are like Big Data; they can appear useless. But, when applied

appropriately, metrics become actionable. Key performance indicators can provide an

overview of plant operations, and complexities within specific manufacturing process

zones can be drilled down into.

This information is invaluable to managers, and it will become a hallmark of

manufacturing throughout 2017. Managers will have the information they need at their

fingertips, and when paired with the logistics trend of embracing transportation

management systems (TMS), the possibilities for growth will increase.

5. Sustainable Manufacturing Will Become Essential.

Sustainable manufacturing is starting to replace fossil fuel-based manufacturing, reports

James D. Sawyer of Advanced Manufacturing Media. Although not expressly stated,

OPEC has plans to cut oil production to drive the cost of fuel up in 2017, but increases

in domestic production, including offshore drilling rigs, will help alleviate rising fuel

costs. Per the International Energy Agency (IEA), more renewable energy installations

came online in 2015 and 2016 than fossil fuel-based installations. This includes the

number of renewable installations, particularly wind farms, that were brought online in

the U.S.

Domestic manufacturers are looking for sustainable alternatives to fossil fuels during this

time as well, and even though the new administration may have some tough criticisms of

renewable energy, the trend shows no signs of slowing. In addition, renewable,

sustainable manufacturing operations have fewer overhead costs and gain favor with

consumers, reports Inora Technologies. Ultimately, the sustainability push will be key to

meeting market demand and fluctuations throughout 2017.

Putting the “First Five” Together.

The “First Five” trends in manufacturing are not necessarily something that has been

discussed in mainstream media. But, that does not mean they lack importance. In many

ways, these trends will define how manufacturers respond to changing attitudes

throughout 2017 and the next four years. Ultimately, manufacturing is evolving in the

wake of a new presidency to meet the demand of modernity.

This evolution will naturally lead to five more substantial trends in manufacturing. In part

two of this series, we will dive further into the manufacturing discussion by looking at

what technology trends will become key components in companies that survive the

changing political and social climates.

9. Multi-Order eFulfillment Grows Critical.

Chapter Three

Logistics Trends of 2017

6 Logistics Trends to Understand in 2017

2017 will not be a bed of roses for logistics providers, nor will the coming year be filled

with thorns in the sides of major supply chain entities. By understanding how the

industry will evolve throughout 2017, you can prepare your organization for the

challenges and opportunities that will come. Take a moment to think about how these

remaining six trends will impact the shipping and freight industry as a new administration

takes control.

1. Government Pressures Will Catalyze Major Decisions.

The Trump administration could be a redeeming feature for the logistics industry, but

some of his recent promises could come at a great price. He has threatened to unwind

major trade agreements, penalize logistics companies that move operations overseas,

including manufacturing and warehousing services, and stifle companies’ plans for

growth in emerging markets.

President Trump’s plans will likely stimulate short-term growth, reports Patrick Burnson

of Supply Chain 24/7. But, the risks from arising Asian markets, banking problems in the

Eurozone and conflict among the Middle East and Africa will keep U.S. GDP below 3

percent. This means any shakeup in existing regulations will breed instability and could

result in industry losses. However, only time will tell if Trump keeps or abandons his

promises to hold the shipping and logistics industry accountable for outsourcing and

reshoring efforts.

2. Omni-Channel Solutions Will Become Fundamental Logistics Services.

If you want it, Walmart can get it. If you want it, Amazon has it. If you want it, it can be

here tomorrow.

These are not empty promises. The major retail giants, Amazon and Walmart, have

dramatically changed how consumers view product accessibility. If it is on a Walmart

shelf today, you could pick up your order without even leaving your car, or you can

peruse the shelves, wait in line and fight with cashiers over price tags. Yet, Amazon is on

the verge of launching stores like Walmart, Amazon Go, without the lines, cashiers and

overhead costs.

Both companies are branching out of their traditional service offerings to create a more

diverse, omni-channel shopping experience, and logistics providers must be capable of

meeting these changing degrees of purchase flexibility, explains Direct Drive Logistics.

3. Logistics Providers Will Push the Boundaries of Digitization.

Retailers without an online purchasing option face stiff disadvantages when compared to

Amazon and Big Box retailers. Online sales grew 12 percent in 2016, and growth is

forecasted for 2017, reports Ludger Schuh of the Inventory and Supply Chain Blog.

Thus, management teams must have access to immediate freight and shipping rates and

information, allowing better consolidation and optimization of incoming and outgoing

shipments. Furthermore, Big Data will transform how companies view operations

through a combination of internal and external metrics, merging all processes from

procurement logistics with last-mile delivery.

4. Hyper-Local Demand Will Drive Last-Mile Freight Delivery and Optimization.

Remember the Amazon Barbell? The strong, hyper-local end will see better opportunities

for growth as more logistics providers embrace the benefits and capabilities in

transportation management systems (TMSs). Moreover, internal use of a TMS will shift

as TMS-as-a-Service (TMSaaS) will encourage more companies to upload their processes

into the cloud, further adding to the capacity and insights gained from Big Data and

predictive analytics.

5. Retailers Will Push Company-Exclusive Offers or Benefits.

From Pinterest to Walmart, the ability to trade online has grown exponentially. Small

businesses can compete with the Big Box retailers and Amazon alike, and the demand on

logistics providers has never been greater. Some blame Amazon for creating near-

impossible delivery schedules and rate offers, but it all goes back to gaining and retaining

a strong customer base.

Rather than allowing customers to abandon ship at the first sign of price increases, more

companies are creating company-exclusive offers. People can already get money back

from Walmart with a simple scan after purchase, and Amazon has launched 13-minute

delivery through Prime Air. As more companies promise more in favor of customer

loyalty, logistics providers will need to lower costs wherever possible. Essentially,

companies will start evaluating providers across the board.

6. Companies Will Evaluate Logistics Providers For Efficiency and Value.

Overhead costs in logistics companies translate into higher freight shipping rates. But,

cutting the number of people working in the company could dramatically lower shipping

rates. Now, this might sound counterproductive with the driver shortage and increased

demand. But, more logistics companies are automating as many processes as possible.

This includes picking completed by robots, automated billing, auditing and freight pricing

and even driverless trucks. Per Karl Siebrecht of Flexe Blog, 15 percent of warehouse

executives cite implementing autonomous robots as a top priority between 2017 and

2020. This will help settle fears of rising costs in shipping, encouraging more shippers to

work with carriers and logistics providers to find the best deals and steals possible.

Ultimately, these evaluations will redefine contract negotiation and service-level bids

among third-party logistics (3PLs) and in-house providers as well.

What Does It Mean?

The challenges of 2016 should not be forgotten, and 2017 will welcome a host of unique

challenges to logistics providers. Trade agreements could change, and the financial risk of

outsourcing operations overseas could severely impede your company’s growth. Your

organization must strike a delicate balance between opportunity and threats as

government pressures mount and business-to-business partnerships fall under greater

scrutiny. But, growth is possible if you take steps to prepare for these trends today.

The Top 6 Logistics Trends Impacting Shippers

in 2017

The election is over, but the race is just starting for logistics providers. Although rate

volatility is expected to stabilize in 2017, organizations must do more with fewer

resources to survive. From Amazon to hyper-local retailers, 2017 will be a year of intense

scrutiny and pressure on logistics providers. Fortunately, your organization can get ahead

of the learning curve by knowing what trends in logistics to watch for this year.

1. Globalization Will Become More Important in Everyday Decisions.

New markets are emerging in the global economy daily. According to PLS Logistics,

global companies will install procurement managers in China for entire organizations by

2025. Meanwhile, Brazil, Russia and India will become major suppliers as companies

access the remaining untapped resources of the world. The need for more raw materials

is echoed by Nishith Rastogi of Entrepreneur Media as more products are tossed out in

favor of the next best thing.

2. Product Life Cycles Will Grow Shorter and More Complex.

There was a time when buying a computer was considered a once-in-a-decade purchase,

if not once-in-a-lifetime. Today, the tech devices that entered the market in early 2016 are

obsolescent, and more companies are looking for real-time data-driven decision making

opportunities through the Internet of Things (IoT).

To meet this increased demands, more manufacturing and logistics partners are looking

for ways to shorten product lifecycles through improving inventory management systems,

changing shipping strategies and altering the fundamental ways products move from point

A to point B.

3. Autonomous Trucks Will Drive Logistics Forward.

Autonomous trucks do not require drivers. They are not susceptible to drowsy driving, and

they are not subject to electronic logging mandate. They do not require a paycheck,

background checks or clearinghouse drug and alcohol testing.

Self-driving trucks might seem like a far-fetched idea, but it became a reality in 2016, and

more companies are continuing the push toward this sustainable solution to the driver

shortage. Regulations are increasing, and watchdog groups can cause irreparable harm with a

simple social media post. However, self-driving trucks have the power to eliminate these

problems.

A recent McKinsey Report, explains Gus Lubin of Business Insider, indicates self-driving

trucks will take over approximately 100 percent of trucking jobs in the future. This graph

shows how quickly the surge begin and rise in 2017.

4. Consumer Demand Will Shape Logistics Services in 2017.

Consumers have power. This has always been true in retail, but the power of consumers has

grown with the rise of the digital age. Consumers continue to demand the newest products

today, not tomorrow, and the products of the past simply will not cut it for tomorrow’s

demand. Consequently, consumer demand will shape logistics providers service offerings

throughout the coming year.

Providers will need to focus on predictive analytics to get ahead of tomorrow’s needs by

adjusting operations to reflect today’s immediate demand. Meanwhile, the use of Big Data

will empower new fleets and freight optimization and consolidation measures, and the IoT

will provide new insights. As explained by Zvi Schreiber, CEO of Freightos, saving time for

end users will be the cornerstone of all logistics operations in 2017.

5. Organizations Will Streamline Reverse Logistics.

Getting products to business-to-business partners and consumers is only half the battle.

These products may have another life when their raw materials are recycled and repurposed.

The products may be returned for defects or because of buyer’s remorse. Ultimately, the flow

of products must be seamlessly bidirectional.

If a company does not have standard reverse logistics processes in place, repeat purchases

could be lost. Amazon understands the value of an easy-to-use reverse logistics strategy.

For example, a consumer can access the Amazon Returns Center and initiate the shipping

label printing and shipping of products from any internet-accessible device. But, Amazon’s

service after the sale does not end there.

Consumers can try to sell an unwanted product as a seller once the return window closes, so

the reverse logistics process becomes full circle with new-product logistics and shipping. This

model of bidirectional operation will further encourage supply chain logistics providers to

streamline reverse logistics throughout 2017.

6. The Amazon Barbell Will Gain Power.

Amazon’s unsurpassed capability in logistics has stimulated a barbell effect among

manufacturers and retailers. Essentially, you can have strong high-end products or hyper-local

convenience for consumers. But, you cannot exist in between the two strong ends. In other

words, the diversity of Amazon has made it difficult for companies to continue providing

one-size-fits-all products to consumers. However, this action can be mitigated successfully,

reports Karl Seibrecht of Flexe Blog, through “in-store pickup, ship-to-store initiatives and

pop-us distribution solutions.”

Like 2016, logistics providers will be tested for weaknesses in 2017. For organizations that do

not embrace these trends, the road will quickly divert to Chapter 11 bankruptcy. Additionally,

improving operations in response to the top six trends in logistics could stimulate growth and

prosperity among providers. However, logistics providers must also consider the remaining

six other factors in part two of this series.

9. Multi-Order eFulfillment Grows Critical.

Chapter Four

Logistics Technology Trends of 2017

5 Trends in Logistics Technology For 2017 That

You Need to Know!

The coming year is set to reshape how the logistics industry operates. Automation and

robotics are leading the charge, and the Industrial Internet of Things (IIoT) is adding to

the mountain of data being collected and analyzed for insights and better operations.

Meanwhile, technology is stepping up to meet the added pressures and demand on the

industry, and your company needs to understand where it will be felt the most.

1. Logistics Will Become Data-Driven.

There was a time when logistics was simple shipping processes. But, modern logistics is

data-driven, and this concept will become essential to success in 2017. By simply looking

at the increasing geographic, political and price barriers to shipping in different parts of

the world and U.S., you will notice an increased data-collecting presence.

In other words, every new device or piece of technology that connects to the internet via

Wi-Fi or wired connection is generating more information for businesses and shippers to

use. For manufacturers, this means having more detailed, accurate forecasting models

ready in real time. Consequently, shippers can respond almost immediately to an

increased demand for any product, at any time, at the right the place and the right price.

2. Consumers Will Dictate Logistics Operations.

Regardless of increasing political concerns for shippers, consumers have the most power

the in the relationship. They are the ones making purchases. Even among business-to-

business partners, consumers define what will and will not be acceptable from shippers.

Thus, accountability and visibility tools will be critical to keeping consumers happy in

2017. This will also translate into better levels of customer service to maintain and

promote these relationships, explains Nishith Rastogi of Entrepreneur.com.

Since no one in the industry has an innate sense of clairvoyance, predictive analytics will be

needed to gain insights and ensure enough products and customer service representatives are

available to meet increasing consumer scrutiny and demands. Ultimately, having automation

in this part of the product lifecycle will propagate or stifle future operations.

3. Returns Management Will Be Highlighted.

Consumers are holding shippers’ feet to the fire when it comes to returns. A return may be

for damage, buyer’s remorse, inadequate product descriptions or other issues, and the

anonymity of the internet is increasing the number of returns needed. Automated

technology, including autonomous trucks, drones and unpacking processes, will be required

to meet this need.

Returns management will also be subject to greater scrutiny than previously as the ability to

track transactions and the stage of the product lifecycle grows more available to consumers.

Essentially, robotics, handheld or RFID-triggered scanners may be used more often to handle

returns, which will shorten the time between processing and refund for consumers, further

increasing the public image of the company.

4. On-Demand Delivery Applications Will Create Amazonesque Delivery Windows.

Amazon has catalyzed marvels of invention and speed in logistics. The company is on track

to begin using drones for national delivery in 2017, and this means competitors will be faced

with catching up or going out of business. However, self-driving cars and autonomous trucks

can be leveraged as well as drones.

In other words, creating a combination of these different parts can create the one-day or

two-day delivery timeframes that consumers are coming to expect. According to Odyssey

Logistics, the Federal Aviation Administration (FAA) has cleared the way for companies to

begin testing and using drones for commercial purposes. If the recent advances of Amazon

Air are any indication of future success, your company needs to start looking at autonomous

technology and robotics to stay competitive.

5. Augmented Reality Will Redefine Picking and Repair Processes.

Augmented reality (AR) is comparable to virtual reality, but it uses real-time images with

layers of information presented to the user. For example, a pair of glasses might populate

product picking information to laborers in a warehouse. This will eliminate confusion and

errors as pickers will be able to verify products immediately.

Consider this example. A person reads a list of 8 pieces of information quickly, much like the

automated handsets of today’s warehouse technologies. The average person can only retain

about seven bits of information in short-term memory, give or take two. In other words, up

to three digits or letters in the read-aloud code might be lost, requiring a person to replay and

listen to the audio and confirm the picked product for accuracy.

AR eliminates this concern because the brain can process visual contexts faster than the time

and attention required for audio contexts, which will encourage more companies to adopt

AR in 2017, explains Tech Gistics.

What Does It Mean?

Consumers are influencing logistics technology every day. End-user purchases are creating a

data trail that gives logistics providers a glimpse into the demand on the industry in the

upcoming hours, days, weeks and months. In addition, consumers want better responsiveness

and faster delivery times, so automation, the Internet of Things and AR are helping to make

up the difference between your company and Amazon. Ultimately, your logistics technology

needs to be upgraded through automation wherever possible.

9. Multi-Order eFulfillment Grows Critical.

Chapter Five

Manufacturing Trends of 2017

The First 5 Manufacturing Tech Trends of 2017

The Industrial Internet of Things (IIoT) and the Internet of Things (IoT) are similar, but

both function on the connection of equipment to the internet and applying data collected

to consumer and business needs, including the needs of manufacturers. From boosting

the level of artificial intelligence to promoting better means of mitigating and preventing

risks, technology will change how manufacturers grow throughout 2017. Consequently,

you need to understand the top five trends in manufacturing technology and how they

relate back to connected devices and the IoT.

1. Artificial Intelligence Will Grow More Important.

The Manufacturers Alliance for Productivity and Innovation predicts market use of

artificial intelligence will expand 3 percent in 2017, but investments in expansion and

development of artificial intelligence will grow 300 percent this year, explains Erin

Remaley of Open Arc. Expansion of artificial intelligence means more manufacturers

and global entities are turning to advanced computer systems and platforms, including

transportation management systems-as-a-service (TMSaaS) and software-as-a-service

(SaaS) providers, for answers and insight into ways to boost production and reduce

inefficiencies.

Artificial intelligence also goes back to the increased collection, analysis and application

of meaningful data in business. Robotics that apply data to make decisions and perform

actions function through the IoT. Thus, more investments into artificial intelligence

naturally contribute to more investments into the IoT, further propelling the industry

forward into a more advanced, smart business model.

2. Apps and Smart Devices Will Enable Communication and Collaboration.

Communication and collaboration are keys to better manufacturing processes, and new

apps and smart devices will further empower this trend.

For example, mobile apps can be used to give remote workers and employees information

regarding market demands while in the field or working in different regions of the globe.

Similarly, data can be optimized through dashboards, reducing the amount of work needed to

review information and make decisions. In other words, more smart devices and apps will

lead to informed decisions that will give manufacturers an upper hand in managing trade and

business with other supply chain partners. This may include business dealings with shippers,

logistics providers, point-of-sale business partners and beyond.

3. 3D Printing Will Make Repairs or Replacement Simpler.

The application of additive manufacturing through 3D printing will make repairs and

replacement parts more accessible and customizable. This will give manufacturers an

advantage when reviewing slots in warehouses for storage by eliminating unnecessary excess

replacement parts storage. Meanwhile, 3D printing means manufacturers will be able to

reduce overhead costs in completing repairs as the “printing” of replacement parts will move

closer to end users. In other words, the cost to ship products back to manufacturers for

repair will be virtually eliminated.

4. The IIoT Will Reduce Cybersecurity Vulnerabilities.

Traditional manufacturing had little concern over cybersecurity. Equipment was not

connected to the internet, and the number of people involved in the sales process did not

have to use more than one or two computers. However, modern manufacturing is becoming

more complicated and connected via the IIoT, opening the door to vulnerabilities in

cybersecurity, explains Manufacturing Talk Radio.

Fortunately, the IIoT can be leveraged through the cloud to enhance cybersecurity as well.

Thus, 2017 will see more manufacturers evaluating existing cybersecurity measures, testing

for vulnerabilities and increasing proactive, preventative measures.

5. Predictive Analytics Will Be Leveraged to Reduce Risk and Boost Collaboration.

More than 25 billion devices will be connected to the IoT globally, including consumer and

manufacturer devices, reports The Manufacturer.com. Consequently, every connected device

adds to the amount of data that can be analyzed and leveraged to reduce risk and boost

collaboration across new, emerging and existing markets.

This will be further used to gain insights into what markets demand, including new product

prototypes and public perception regarding such products. Regarding increased

collaboration, the application of predictive analytics through this data will give manufacturers

more information to ensure enough products and supplies are available to keep up with

demand.

In a Nutshell.

Manufacturers will face many challenges in 2017. The U.S. manufacturing market appears to

be benefiting from the new administration’s policies, but uncertainty could spell doom for the

global economy. Meanwhile, overseas manufacturers and entities that engage in global trade

could be limited in their ability to meet the needs of business-to-business partners and

emerging markets. These five trends in technology, powered by the IoT, will be critical to the

success of manufacturers throughout the coming year.

Manufacturers are starting to look at the IoT with a sense of hope and renewed interest in

providing the right product, at the right price and at any time. Part II of this series will delve

into six manufacturing tech trends that do not necessarily require the application of

connected devices, but of course, the IoT’s influence will still be felt even when not directly

involved.

9. Multi-Order eFulfillment Grows Critical.

Chapter Six

Freight Trends of 2017

6 More Manufacturing Trends to Look Out For

in 2017

A Quick Recap of Manufacturing Technologies to Think About 2017.

Although apps and smart devices will make an impact in manufacturing technologies this

year, a few other technology trends will dramatically redefine industry standards.

Sustainable alternatives to traditional manufacturing will replace existing processes, and

avoiding the Industrial Internet of Things (IIoT) will finally become impossible. For your

business to succeed, you need to apply these principles to your manufacturing operations,

and think about what each trend means for your target markets too.

1. Green Manufacturing Will Replace Existing Methodologies.

Leading up to the election of 2016, manufacturers were uncertain as to which

investments would be most appropriate. The election of Donald Trump for president

appears to have reinvigorated efforts to bring more manufacturers back to the U.S., and

the push toward green, sustainable alternatives to traditional manufacturing will continue

to dominate the market, asserts Stuart Hall of Global Manufacturing,

Green initiatives are more than just a political ideal. They are becoming essential

components to saving money for manufacturers. As the availability of resources and raw

materials has grown tighter, a circular economy is evolving. Unlike traditional, linear

economies, a circular economy takes advantage of product flows from both direction. In

other words, recycled, reusable materials can be processed and used to reduce the cost of

manufacturing items. Consequently, companies can continue to make a profit while

keeping eco-conscious motives in mind. Furthermore, green initiatives are pushing

consumers toward companies that embrace sustainable ideals, so this trend will continue

to grow in importance throughout the coming year.

2. Companies Will Turn to Low-Cost Marketing and Funding Solutions.

New technology can help manufacturers reach new markets and create new products.

However, more companies are still looking for cost-effective ways to develop and test

prototypes, and social media and crowdfunding may be the solution, explains Joe Birkedale

of Catalyst. Most companies already have technologies in place to interact with customers,

but crowdfunding and social media provides another channel for communication. This

communication can be leveraged to gain insight and feedback for new prototypes from

consumers and industry experts while in the research and development process. Thus,

companies can eliminate costs during the design process and deliver an appropriate product

in a timely fashion.

3. More Off-Site IT Investments Will Be Made.

The days of in-house IT departments are obsolescent, reports Steve Menaker of the

Cincinnati Business Courier. Cloud-based technologies are replacing antiquated, legacy

systems, and major manufacturers are planning to launch new investments into customer

relationship management (CRM) tools. Furthermore, the growing need to enhance

cybersecurity and maintain new system implies more companies will outsource IT services to

third-party entities, including third-party logistics providers (3PLs), who provide additional,

valued-added services. Ultimately, this push to outsource technology will make more

technology available to small and medium-sized businesses.

4. Avoiding the IIoT Will Be Impossible.

Some companies have held out on implementing the IIoT in manufacturing for initial

investment reasons, cybersecurity concerns or other issues. However, this will become an

impossibility in 2017. Any type of new system purchased will have connectivity with the

internet, provided the company has internet access. Thus, more companies will be able to

lower prices through lowering the cost of manufacturing, shipping and repair or

replacements. Meanwhile, the increasing use of wearables will enhance the productivity of

smart factories by increasing visibility, reducing risks and ensuring accountability among

employees. Ultimately, the age of manual processes and little insight has ended.

5. Customization Will Replace Traditional Inventory Management.

According to the Global Dispatch, traditional inventory management operations will change

in 2017. Inventory management will become more reliant on advanced computer analytics

systems to manage inventory in real time. This will eliminate shrink from theft, damages and

errors during shipping, reducing overhead and improving operations. Moreover, companies

will be able to manage warehouses more efficiently by eliminating overstocking or

understocking issues, and new technologies, including 3D printing, will make customization

of inventory needs easier.

6. Responsiveness Will Become Synonymous With Real Time.

Manufacturers have always faced a battle with responsiveness. Business-to-business and

omnichannel sales are making this challenge more difficult. However, greater visibility and

speed in production are helping manufacturers create price quotes for new products and get

products from the factory to the end user more quickly. reports Louis Columbus of Supply

Chain 24/7. On the customer-side of the equation, better pricing will translate into better

public perception and positive word-of-mouth marketing through social channels. In other

words, manufacturer responsiveness will become synonymous with real time orders from end

users. Consequently, manufacturers will see a rise in communication and collaboration

throughout the supply chain.

Putting It All Together.

Technology is changing how manufacturers respond to markets around the world.

Companies are looking for ways to reduce their carbon footprints, embracing “green,”

sustainable alternatives, and they are finding customers are willing to pay more for products

that live up to their expectations, ranging from green to lean production. Although this two-

part series in manufacturing technology covered many things, the best way to remember this

information is to think about it visually, and the following infographic, created by RSM US

LLP, can help you apply these technologies to your company throughout 2017.

9. Multi-Order eFulfillment Grows Critical.

Chapter Six

9 Freight Trends to Expect in 2017

9 Freight Trends to Expect in 2017

The freight industry of today is evolving rapidly. It is no longer bound by the traditional

constraints of the economy, and Amazon is gearing up to begin expanding into a global

freight shipping provider. As a result, your company needs to think about these freight

trends and how you can prepare to respond to them as soon as possible.

1. Freight Providers Will Focus on ELD Implementation.

With the official deadline for implementing electronic logging devices less than one year

away, more freight providers will be upgrading technology and systems in 2017, reports

Matt Sullivan. This will help to ensure maximum compliance once the deadline passes,

but additional mandates will continue to push the industry forward.

2. Hours of Service Will Become Core to Freight Operations.

Meeting the hours-of-service (HOS) requirements among drivers will be key concern

among freight providers this year. In the past, drivers were subject to fewer restrictions on

mandatory breaks and time off the road. However, the newer HOS statutes mean that

fewer drivers will be available at any given time to get shipments from point A to point B.

Consequently, the driver shortage may grow worse with this new perception.

3. Capacity Demand Will Grow in Importance.

Capacity is expected to grow tighter and more important in the coming year. In the latter

half of 2016, freight demand increased consecutively each month, asserts Mark

Montague of Supply Chain Brief. Furthermore, less-than-truckload (LTL) shipments

increased faster than full truckload (FT). This trend will be driven more as the year

progresses as drivers retire and the driver shortage gains momentum.

4. Freight Rates Will Increase.

The factors will contribute to an increase in freight rates as well. Reduced capacity and

increased demand will also weigh heavily on the industry, but the biggest impact will be felt

in fall 2017, following the ELD mandate. But, a few other influences will still affect the

industry.

5. Optimism Behind the New Administration Will Spur Freight Growth.

The pro-business stance of the new administration, reports Sean Kicarr of FleetOwner, will

act as a stimulus among freight providers. This will help to encourage enhanced, increased

hiring practices, provide an acceptable tax code to businesses of varying sizes and encourage

reshoring practices. In other words, more manufacturing jobs will return to the U.S., which

will place added pressure on freight shippers to hire more drivers and invest in fleet.

Ultimately, the new administration is poised to increase freight spend and accountability over

2017 and beyond.

6. Ocean Freight Will Feel the Amazon Impact.

Amazon recently entered the global, ocean-shipping market as global shipping competitors

were unable to keep up with the online retailer’s surging demand for faster, cheaper freight

shipping. Amazon now has its own non-vessel owning common carrier (NVOCC) license,

which will allow the company to operate in shipping international containers. Moreover,

Amazon also has developed its own dedicated aircrafts for faster global and regional delivery.

In other words, the company is using investments into its own freight shipping processes to

meet the demand where carriers and local shippers cannot.

7. Dynamic Pricing Will Become Commonplace.

The use of Application Program Interfaces (APIs) will give freight shipping providers an

advantage in keeping rates lower. More importantly, APIs will automated all data exchanges

between carriers, shippers, freight brokers, receivers and transportation management systems

(TMS), making the process of rate adjustments and selection easier across the board, reports

FleetOwner.

8. Automation Will Enhance Freight Visibility and Accountability.

Robotics, virtual reality and automated picking and packaging processes will reduce labor

and transportation costs for the industry. Of course, automation begets automation. In other

words, the Industrial Internet of Things (IIoT) will be required to enable automation, which

will result in better visibility and accountability across an organization. Furthermore,

companies will be able to respond to problematic weather conditions, cybersecurity treats

and disruptions in communication faster through the IIoT and automated systems.

Additionally, autonomous trucks (self-driving trucks) will also reduce the labor demand while

increasing demand on the IIoT.

9. Freight Providers May Respond Faster to Educational Concerns Than Politicians.

The next wave of freight workers will need to have an intricate understanding of

mathematics, computer programming and robotics to be effective. However, the current

political climate continues to push an agenda based on college degrees as a source of

education. Unfortunately, the increasing focus on domestic spending by the U.S. government

is starting to have an impact on student loan programs and grants.

Consequently, more Americans are hitting roadblocks to attaining an education with the skills

necessary to enter the increasingly automated, advanced freight industry. So, more companies

will begin offering tuition reimbursement programs or educational programs to encourage

potential applicants to work for their company. While this represents an increased hiring cost,

it will help employees gain a sense of loyalty and drive labor longevity in the industry.

The Big Picture.

Freight is growing. It’s getting smarter, faster and more responsive to the demands of the

market. With the promise of reshoring hope and possible public backlash for continuing

offshoring of processes, freight providers will have the opportunity to restore public trust

and increase profits in 2017. They just need to take notice of what’s happening.

9. Multi-Order eFulfillment Grows Critical.

Chapter Six

Key Transportation Management Trends of 2017

Key Transportation Management Trends of

2017

2017 will be the year of renewed focus and interest in adopting newer transportation

management systems (TMSs) to boost productivity and find the biggest cost savings

among shipping transportation providers. This is the result of renewed, surging demand

from consumers and greater confidence in the stability of the U.S. economy.

Consequently, seven key trends will dominate the industry throughout the remainder of

the year.

1. Transportation Management Systems Will Become Centralized in the Cloud.

The use of a dedicated TMS has been essential to staying competitive over the past few

years, but 2017 will be the year that companies around the country and globe will look to

centralize their TMS operations in the cloud. Approximately 15 percent of companies

utilize cloud-based TMS systems, reports Dream Orbit. However, global use of the TMS

is expected to have a compounded annual growth rate (CAGR) of seven percent between

2017 and 2021. Thus, companies using legacy-only systems will soon be unable to

compete in a global shipping market.

2. Globalization Will Encourage Adoption of Newer, More Advanced Systems.

Industries around the world are coming together to find better ways of doing business.

U.S. import and exports grew nearly $2 trillion over the past 25 years, and transportation

accounts for approximately 14 percent of jobs in the U.S., asserts PLS Logistics. While

statistics are not clearly defined, a large portion of these jobs are devoted to the shipment

of goods, so the industry is being driven by globalization. Essentially, growing

globalization means more people and products will be needed in the U.S., so adoption

rates of TMS systems will grow to meet this demand.

3. Safety and Automation Will Be Standard.

Safety is a top priority for shippers. An issue could result in swift backlash, financial setbacks

and even the assessment of criminal penalties. However, automated systems can help to

increase safety by eliminating the opportunity for human error from the equation. In other

words, shipments can be organized to prevent falls or injuries on the job. Of course, there

will still be opportunities for safety violations, but automated systems, such as robotics, have

the potential to virtually eliminate all the human touchpoints from the picking, packaging and

shipping process.

4. Sustainability Will Become Key to Better Public and Private Images.

Sustainability will be another driving force of TMS adoption in 2017. Customers and

business-to-business partners are willing to pay more for services that come from well-

known, eco-conscious companies. While this might seem counterproductive, it means your

company could charge more per shipment if sustainable, efficient practices are in place.

Fortunately, a dedicated TMS can handle this need. In fact, the use of TMS-as-a-Service

(TMSaaS) systems are starting to replace older TMS solutions. Thus, companies can access

information from any location and take advantage of the latest information from all supply

chain network partners, which helps the industry isolate and correct unsustainable practices.

5. Analytics Will Take Center Stage of Dedicated TMSs.

Analytics have the potential to dramatically reduce the burden on shippers in 2017, reports

Willian B. Cassidy of JOC.com. Analytics is not a new player in the transportation game

either. Siemens has been using the technology for more than 15 years! It can help new and

upcoming shippers find ways to consolidate shipments and reduce overhead. Meanwhile,

analytics systems are being built into new TMS solutions, including TMSaaS products. This

will further reduce the burden on shippers by giving them more tools and resources at a

more cost-effective price point, translating in more competitive rates.

6. Apps Will Be Essential to Success in 2017.

The role of mobile technology cannot be overstated. Per Bridget McCrea of Supply Chain

24/7, TMS solutions will get a makeover in 2017 through mobile optimization. New vendors

will demand increased access and ease-of-access to information about supply chain partners.

Meanwhile, the number of smartphone users is growing, which includes drivers. Supply chain

entities can use this to their advantage by creating Google Play store of iTunes-enabled apps

that workers can download and use. In some cases, a small subsidy payment may be

appropriate for workers bringing their own devices, but that will be up to each company

individually.

7. Autonomous Trucks Will Drive Investments Forward.

The final push toward investing in transportation throughout 2017 will be the increasing

interest and versatility of autonomous trucks. These self-driving trucks have the capacity to

meet the demand where truckers are unavailable, due to either reduced workforces or hours-

of-service limitations. Essentially, this will lead back to automation with TMS solutions,

which will propagate the trends in this post.

Transportation management is going to be an exciting area of the shipping industry to watch

in 2017. If your company has not yet implemented cloud-based TMS systems, you are

behind the learning curve. Start thinking about how you can get started by embracing these

top seven trends in transportation management now.

9. Multi-Order eFulfillment Grows Critical.Conclusion

Trends to Change the Industries, But Still a

Focus on the Fundamentals

Modern business is changing, and the manufacturing, supply chain, logistics, and

transportation management industries is no exception. In 2017, companies will need

to make serious changes to processes and standard operating procedure in order to

survive the problems faced and these trends. From an increasing focus on meeting the

demands of compliance and regulatory measures to executing IoT deployment m

trucks as a means of improving and reducing the impact of the driver shortage, each

of these trends will help refocus these industries to the “big picture,” not the

individual picture. However, it is vital that the fundamentals are adhered to in order to

not let any new technology, tool, or process implemented only shine a bright light on

the inefficiency of your company.

We hope you enjoyed this educational e-Book on the trends for 2017 and beyond in the

manufacturing, supply chain, logistics and transportation management industries.

Cerasis, a transportation management company founded in 1997, has always believed in the use

of technology to improve process to not only reduce cost but to stay strategic, competitive, and

have the ability to use data from technology to continually improve. In fact, one of our core

values is just that: continuous improvement of our people process and technology.

We built our Cerasis Rater TMS in 1998, launching it as web-based before Google was even a

business. Our (now Army, as our Development Manager, Jerel Byrd calls them) development

team are always continually improving the Cerasis TMS, as we know it is vital to have a system

that is not only innovative, but sound, secure, and enables those in transportation to do their job

all while doing it cost effectively.

Are you using a TMS to help manage your transportation department as a shipper? What are

you seeing in the space?

In addition to our transportation management system (TMS), the Cerasis Rater, when you are a

Cerasis shipper, you gain access to the following managed services:

• Transportation Accounting to include: Invoice auditing, one weekly invoice no matter

how many shipments, and freight payment services

• Comprehensive end to end freight claims management: if your freight is damaged or lost,

we will handle the freight claim on your behalf

• Carrier Relations: We will negotiate rates on your behalf and you get better rates thanks

to our buying power

• Inbound Freight Management

• Reverse Logistics

• Robust Analytics and Reports

Want to learn more? Visit http://cerasis.com

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