Blog - Supply Chain Secret Sauce

Trends In The E-commerce Parcel Fulfillment Markets

Sat, 11 May 2024 17:53:38 GMT

How Robotics are driving change!

Best practices are changing for fulfillment based on robotics and artificial intelligence. Today there are only a handful of robotic fulfillment companies and technology resources that make workable robotics for fulfillment but that will change very soon.

Robotics- Every warehouse has some type of automation but what we are seeing today is that vacuum enhanced gripping with the right type of arm reach is opening the door for some easy pick and pack opportunities. As these develop into more of a finger based recognition of placement, things will only improve and be faster. Today's limitations of weight and size will be slowly vaporized into full blown case pick and master case building on a unit pick scale.

Overcoming obstacles to deploy- today the ability to deploy easy fulfillment robotics has been infused with capital and technology to really make this more like plug and play. Integration is the key to robotic success. Data security and accuracy is achieved with robotics communicates with clarity of all activity.

Perspective- There are some robotic fulfillment centers like Nimble.ai who are also selling their robotics to other fulfillment companies to press the robotic fulfillment process forward. The reason is that it is possible to see a greater ROI if a company manages their own fulfillment based on the fact that their items are easily robotic managed. It is a risk to sell to competitors but in the end, major brands will be lining up to cash in on this value.

Economies of Scale- eventually the best in class and easiest to plug and play robotics will win the pursuit of mass market appeal. Today their are many players but really when it comes down to the right robotics for mass fulfillment there are only a few good ones.

Cost to Serve or Operate- this is the ice cream on the cake. The end result is a major decline in per pick and per order costs. Robotics can deliver success 100% error free and every day of the week. This removes the largest cost which is labor. It also expands the other cost which is greater visibility. Today and even more tomorrow, we will see greater visibility into true fulfillment costs along the order life cycle.

Acceptance- as with anything, you have the early adopters and you have the "wait and see" companies. Today we have gone beyond early adoption and in fact if you are not looking at robotic fulfillment companies you may miss the boat of amazing cost savings. These companies are highly backed by capital and are painting costs that will tear through the market. Using the human person to fulfill your goods will soon be very uncommon, unless your goods are heavy, awkward or other unique characteristics.

Summary-

Review your product offering and see how aligned it is with robotics. Key items are: Weight, units per box, type of item and volume.
Review robotics in the market place to determine your best strategy forward. If you have high volume, you may want to look at subscription robotic options so that you can upgrade as needed. If you are mid range volume, look for that right robotic fulfillment company like Nimble.ai. (as an example)
Data. Data. Data - Make sure you know what data is important to you and now with robotics, ask for that data to be produced for you vs you producing the reporting.
since labor rates will not be going up, be sure to lock in your pick and order rates, storage, etc.

How to start?- Reach out to us and we will help you get started. Even if we don't work together, we know enough to get you on the right track.

Contact us for your free advisory call where we can talk about your supply chain needs:

Understanding Supply Chain Cost To Serve

Sun, 17 Mar 2024 16:05:00 GMT

Understanding Supply Chain Cost to Serve

When we think about what is cost to serve, it can be a daunting project to wrap your arms around – Right? Well, sort of. Since the process of developing a cost to serve model is cost accounting based, you are able to produce a model that can span from a high level overview of certain costs to get guidance on your supply chain spend, to the minutia of transaction detail by customer. Anyway you slice it, understanding where you are spending your money to serve customers, relative to the profitability those customers produce, is always good to know.

What is cost to serve? As you google this terminology you will find some consistent answers and some varying answers. Here is how we define it.

Cost to serve : Using activity based accounting to measure how much it costs a company to move product from origination supply point to customer destination.

With the right prompts: A.I. can help you put this all together!

Sounds simple right? In distribution channels the formula could be as basic as:

Advanced Metric: Cost to Serve

Cost to per case to pick up the product by a carrier and deliver to distribution centers (DC’s) + The labor cost per case to receive the product at the DC + The overhead cost per case to store the product + The cost per case to pick the product + The cost per case to transport that product to a customer = A high level version of your supply chain cost to serve. Additionally, you can add in spoilage, reverse logistics (returns), and many other unique things to your industry.

(This can also be done on a per mile basis vs a cost per case; but we do prefer the cost per case or unit as a fundamental basis. You can also look at total supply chain profitability by case.)

It gets more exciting when you look at your costs vs the total supply chain margin $ you have to work with. Honing this into a customer cost vs margin to achieve a total profit by customer, brings a heightened awareness to the customers you really need to work with more, and the customers you are thankful for.

Simplified Metric: Cost to Serve

The more units, cases or SKUs you add; the less your cost per case will become. This is why, using this metric alone is not always telling. Like all business guides, balance in metrics are important. It is important to know what SKUs are driving profitability, what SKU’s are driving your warehouse efficiency and delivery efficiency, what SKU’s are important to your brand supply chain and what SKU’s add to your overall new growth. Knowing more about your inventory and it’s impact on customers, new growth, handling and distribution will allow you to make the right decisions.

We hope this is helpful. This is by no means a complete picture of Supply Chain Cost To Serve…. But hopefully it gives you an idea of the power it can generate. If you want to approach this at a higher level, you can look at this is a simplified way as well:

Inbound logistics costs per case + Staffing salary & benefits costs in the warehouse DC’s per case + Outbound logistics costs per case = Your high level supply chain costs per case. It tells you on a high level what your supply chain is spending. You can then have your VP of Supply Chain dig into YOY analysis to drive profitability through cost reductions.

To assist you, we have provided some links to other companies and their view of cost to serve.

We can help you set up the model that is right for your business and simplify your supply chain metrics. Thank you for taking the time to read this article. We hope it was helpful. www.linksupplychains.com.

Other POSTS you may like: The Powerful Brand Supply Chain

Other Companies:

https://www.ci-advantage.com/analytics/initiatives/cost-to-serve/

https://www.supplychainbrain.com/articles/18106-how-to-build-a-cost-to-serve-model-1

About Link Supply Chains, LLC :

Link supply chains, LLC is one of the fastest startup product information management companies in the USA. Ready to store everyone’s product information in the cloud for easy access to all distribution channels. You and I both like one point of contact, and your product information does too! Product information management made easy! The company has a mission to simplify supply chains and reduce costs.

In addition, they offer supply chain consulting, coaching & business strategy with expertise to reduce supply chain costs, add depth to business strategy and create engagement through their “Supply Chain Team” training methods. Their CEO, Wade Wickus has a very popular podcast called “Supply Chains… The Secret Sauce” Link supply chains is quickly becoming the “go-to” in the supply chain community. To join the link supply chains movement, go to www.linksupplychains.com.

Case Study: Supply Chain Systems & Documentation

Sun, 11 Feb 2024 17:58:07 GMT

Transforming Uprising Food's Supply Chain with Secret Sauce Expertise

UprisingFood.com, led by founder and CEO William Schumacher, is a company at the forefront of brand marketing and business building in the food industry. Despite their success, the team recognized that supply chain management was not their forte, presenting a significant challenge in scaling their operations efficiently.

The Challenge:

Critical bottlenecks in the supply chain

Uprising Food faced a critical bottleneck: their supply chain operations were at an amateur level, hindering the company's growth and operational efficiency. The team needed a partner who could overhaul their supply chain processes, from spec documentation and process costing to vendor contracts, and elevate their operations to match their ambitious growth plans.

Solution:

Documentation and streamlined process costing

Enter Wade and the Supply Chain Secret Sauce team, specialists known for their ability to quickly diagnose and revamp supply chain systems for maximum efficiency and impact. Within just two months of collaboration, Wade and his team were able to enact a dramatic transformation in Uprising Food's supply chain operations.

The Supply Chain Secret Sauce team worked closely with Uprising Food to:

Develop comprehensive spec documentation , laying the groundwork for standardized operations and quality control.
Streamline process costing , ensuring financial efficiency and transparency throughout the supply chain.
Negotiate and secure vendor contracts that were advantageous and scalable, accommodating Uprising Food's growth trajectory.

Results:

A robust supply chain that can scale as needed

The collaboration between Uprising Food and the Supply Chain Secret Sauce team yielded impressive results:

A leap from amateur to advanced supply chain operations, enabling Uprising Food to operate at a significantly higher level of efficiency and effectiveness.
The establishment of robust supply chain foundations, allowing for scalable growth without compromising on quality or operational speed.
A partnership that extended beyond mere consultation to leave a lasting impact on Uprising Food's strategic and operational capabilities.

Supply Chain Services:

The transformative effe ct of supply chain management

William Schumacher's testimonial underscores the transformative effect of the Supply Chain Secret Sauce team's expertise on Uprising Food's operations. By addressing critical supply chain inefficiencies and implementing best practices, Wade and his team not only met but surpassed expectations, proving themselves to be invaluable partners in operational excellence. For businesses struggling with supply chain challenges, this case study serves as a compelling endorsement of the strategic advantage that professional expertise can bring to the table.

Let's Discuss Your Supply Chain Strategies with a 100% Satisfaction Promise

Wade Wickus: CEO & Founder of Supply Chain Secret Sauce

Sun, 11 Feb 2024 17:19:47 GMT

Navigating Excellence: The Journey of Wade Wickus

Wade Wickus's professional journey is a testament to dedication, strategic innovation, and leadership in the ever-evolving landscape of supply chain management. With a career spanning over three decades, Wickus has significantly contributed to the growth and optimization of logistics and supply chain strategies across various industries. This blog delves into the milestones of his career, his speaking engagements, volunteer work, and personal interests, painting a picture of a multifaceted leader.

Early Years at SYSCO

Groundwork and Growth

Wade's remarkable career began at SYSCO, where he spent a formidable thirty years. The first twenty years were dedicated to the Sysco Distribution Center Level, covering an extensive range of responsibilities, including Sales, Marketing, Sourcing/Procurement, Branding, Warehouse Operations, Building Construction, M&A, and Logistics. His roles in logistics covered parcel, last mile, inbound, and van, showcasing his ability to manage and optimize complex supply chain processes.

Strategic Leadership

Transitioning to SYSCO Corporate Headquarters for the subsequent ten years, Wade honed his expertise in Supply Chain Strategy Consulting for 25 Distribution Centers (DCs) across the United States and Canada. His leadership in logistics centralization, inbound logistics systems/TMS, and financials & KPIs for all inbound PO’s logistics, underscored his strategic vision. Wickus managed inbound logistics load planning for 20,000 shipments a month, overseeing $700M in logistics spend and achieving $12M in optimizing logistics for major supply chains, including notable clients like Hilton and Marriott.

Making a Mark with Hunt Brothers Pizza

Strategic Innovation

Wade's journey continued as he joined Hunt Brothers Pizza, the world's #4 pizza brand, for five years. His tenure here was marked by significant contributions to Supply Chain Strategy, Procurement/Sourcing, Manufacturing, Last Mile Distribution, Logistics, New Construction, Branding, Technology, and securing Government Tax Incentives TIFF’s.

Venturing into Consultancy and Startups

Pioneering Digital Transformation

Wade ventured into consultancy and startups, spending two years as a consultant and one year launching a tech startup. He created a Product Information Management Database on AWS servers, assisting companies through digital transformation. His consultancy extended to logistics, parcel, and warehouse operations with EBTH.com for national expansion, and he is currently leading supply chain strategy for Uprising Food, Inc, Steeped Coffee, and IAM Dairy Distributing.

Speaking Engagements and Publications

Sharing Knowledge and Expertise

Wade has shared his insights and expertise through various prestigious platforms. From presenting at the 2012 Momentum about optimizing networks with Manhattan Logistics TMS, to discussing the total cost to serve at the 2018 SCOPE Chicago, his presentations have enlightened many in the industry. His involvement in the CSCMP Annual Edge Conference, BWG Strategy Sessions, and his podcast "Supply Chains…The Secret Sauce" for business, highlight his commitment to education and innovation in supply chain management.

Volunteer Work and Personal Life

Giving Back to the Community

Wade's commitment to community service is evident through his volunteer work. He has served as a board member for the Boys & Girls Clubs of America in Westbend, WI, the Second Harvest Food Bank of Southern Wisconsin, and the Urban Ninja Foundation in Lexington, KY. These roles underscore his dedication to making a positive impact beyond his professional endeavors.

A Life of Balance and Passion

Outside of his professional and volunteer commitments, Wade is a 4th Degree Black Belt in Aikido, showcasing his discipline and dedication. His passion for kiteboarding, tennis, basketball, golf, and being a Packers fan, reflects a well-rounded personality that values balance, health, and team spirit.

Wade Wickus's journey through the realms of supply chain management, strategic consultancy, and community service showcases a career built on innovation, leadership, and a deep-seated commitment to improving every environment he's part of. As he continues to lead and inspire in the supply chain world, his story remains a beacon for aspiring professionals in the industry.

Let's Discuss Your Supply Chain Strategies with a 100% Satisfaction Promise

Case Study: Supply Chain Optimization with Fractional Services

Sun, 11 Feb 2024 17:19:45 GMT

Supply Chain Optimization with Wade's Expertise

In a highly competitive market, efficient and cost-effective supply chain operations are crucial for businesses aiming to maintain a competitive edge. Our client, a company seeking to enhance its direct-to-consumer (DTC) fulfillment operations, faced challenges in reducing fulfillment and shipping costs while improving service levels.

The Challenge:

Finding the right reliable fulfillment partners

The primary challenge was to find a reliable fulfillment provider that could not only meet the client's operational requirements but also contribute to significant cost savings and efficiency improvements. The goal was to enhance the speed and accuracy of order fulfillment and shipping processes without compromising on service quality.

Solution:

A data driven approach to supply chain management.

The client enlisted the expertise of Wade, a seasoned operations professional known for his data-driven approach and deep knowledge in manufacturing, fulfillment, and packaging. Wade's first step was to conduct a comprehensive bidding process, leveraging his strong industry contacts to identify a number of qualified service providers.

Through meticulous negotiation of costs and terms of service, Wade ensured that the client was positioned to make an informed decision that aligned with their strategic and operational goals.

Wade's involvement extended beyond the selection process. He led the implementation of the new fulfillment solution, ensuring a smooth transition that minimized disruption to the client's operations. His hands-on approach and operational acumen were instrumental in navigating the complexities of integrating new systems and processes.

Results:

Supply chain cost reductions, improved service levels & reduced errors.

The impact of Wade's expertise on the client's supply chain operations was profound:

Significant Cost Reductions: By selecting the right fulfillment partner and negotiating favorable terms, the client achieved substantial savings in fulfillment and shipping costs.
Improved Service Levels: The new fulfillment solution enhanced the speed and reliability of order processing and delivery, leading to better customer satisfaction.
Reduced Pick Errors: The implementation of more efficient processes and systems reduced the incidence of pick errors, further streamlining operations and minimizing losses.

Supply Chain Services:

A data-driven approach

Wade's role as a strategic partner to the client underscored the importance of expertise and a data-driven approach in optimizing supply chain operations. His ability to navigate the industry landscape, coupled with his operational acumen, brought about significant improvements in efficiency, cost savings, and service quality. This case study exemplifies how leveraging the right expertise can be a "secret sauce" for businesses looking to enhance their supply chain and fulfillment operations. Wade's contributions have not only benefited the client in the short term but have also positioned them for continued success in the competitive DTC market.

Let's Discuss Your Supply Chain Strategies with a 100% Satisfaction Promise

The Powerful Brand Supply Chain

Wed, 05 Aug 2020 03:03:00 GMT

Understanding Brand Supply Chains

Today as customer experience gets pushed to the front of every action or process in a company, the brands those customers purchase really drives your brand supply chain. Can you influence the customer to select those brands that reduce costs or drive efficiency in your supply chain? I suspect that in some industries that is still possible; however, in more and more industries with e-commerce and the IoT, brands have a life of their own.

The power of a brand can really impact the costs of a supply chain and company, if not prepared correctly for intense scale. That is why understanding your supply chain impact by the few brands that represent 80% of your profitability is essential. It comes back to the age old story of the tail wagging the dog or the dog wagging the tail. In today’s market it is a little of both. Brands are driving sales for their products over other like items. Also, new products that are “blue oceans” of opportunity are driving sales with strong social media drive.

How do you measure brand supply chain metrics? Here are some ideas. Certainly there are many ways to look at this. Let’s look at few of our favorites:

A. Profitability by SKU by brand. This rolls up the costs and margin to develop a profit by SKU and then rolling all that up by brand. What does this do? This can tell you where costs for this brand are leveraged or deleveraged. Perhaps logistics costs are high for brand x but that brand makes up costs on warehouse and last mile delivery costs. Overall brand x may be a higher total profit per case than brand Y. Why profit per case or unit? This really focuses on the volume driving everything.

B. Sales projections relative to costs per case/unit by SKU & Brand. This levels out the costs as volume kicks in. For example on a new item the cost/SKU/brand may be very costly. However, once the breakeven point is visualized for that brand once that point is reached, profitability grows exponentially. This gives insight into how to support brand growth and when to discontinue an item. When that breakeven point is in the distance and remains there, it’s time to think about alternatives.

C. Rank distribution pain points by high costs for that brand. The insights from this metric can tell you the story of brands that may be generally heading in the right direction in profitability by SKU but have certain cost pain points that if fixed could drive the profitability even farther. Also included in this may be some subjective data that can add insight as well. For example:

Order is always cut by 25% by supplier (unchanged PO is not good).

Carrier is always late by several hours and we need to put in OT to receive this product weekly.

Packaging is poor and thus we damage product during selection.

Looking at metrics: identify those brands with high handling costs.

How do you affect change in your supply chain when a brand has high potential but the costs to the supply chain are impeding its success? Typically working together with the supplier and all levels through out the supply chain creates a great recipe for success. Everyone wants to see the product be successful if profit and customer experience using the product is fantastic. So leveraging relationships on the potential success of the brand in collaboration with others, will drive further success. Of course eliminating supply chain costs but keeping amazing service will continue to drive positive customer experiences.

If you need help developing this, there are many companies who can help you. Link Supply Chains has helped companies succeed in understanding their brands that drive overall success. Doing a business review of your brand impact is a good start.

I hope this was very helpful and useful. Thank you for reading this blog.

Supply Chain Warehouse Construction

Fri, 08 May 2020 13:07:00 GMT

Supply Chain Warehouse & Office Construction

Supply Chain construction can be a big project consisting of warehouse or office construction. We have all been there! You are excited to build a new warehouse or add on to an existing warehouse and then the process of design build begins. This can be an all consuming task if preparation, support and planning are not in place first.

We have assisted in building freezers, coolers, office space, buying land for future endeavors for companies but the most compelling project was changing construction companies midstream on a project that just seemed to be going down the wrong path. Wow! That was stressful.

What do you do? How do you know that things are not going well? When do you decide to make the change? How did you prepare the contract so that a change was possible? Why do these types of things happen?

Believe it or not, not every supply chain construction company knows everything about your business or what you need. The best companies are the ones you have experience with or your competitor had a good experience with. Sometimes all the stars don’t align and you have to find a new supply chain construction company. This may be because the one you used 10yrs ago was bought out or ownership changed. You are left with a new opportunity to create a new relationship with a new design build company.

Calling references, seeing projects they have built and really making sure you understand their capabilities is essential. In this field, it is common to have many LLC’s with similar names in other markets but all entities are working together under one brand. Make sure the company you selected is showing you work that they actually did and not one of their sister affiliates.

The contract needs to be pushed back upon the construction company to ensure you have the appropriate out clauses or review clauses during the design and construction process. This is not easy, can cause stress, take time, is an investment in legal review costs, but if something does go wrong you just saved millions of dollars by having a fairly weighted contract.

Red Flags:

Certain aspects of the design seem costly or overkill for your needs based on your experience as well as working with other subs to get their independent thoughts.
GeoTech – The earth under your site does not seem to be getting the attention it needs. Knowing the sub soil by talking with your city officials is important.
Drawings and designs are not accurate or lack detail through the design process.
Unusual pressure to start construction or to accept change orders rapidly.
Cooling equipment not aligned with racking layout or door placement not aligned with truck yard turn radius.
There are many other flags, these are just examples.

We can not expect our construction companies to know everything about every industry and every warehouse requirement. This is why there are a wide range of construction companies out there. Each having their skill set in a specific market and typically there aren’t many that market themselves as a provider for every industry.

We can help you understand your construction project, do a gap analysis to provide insights into potential issues, and work with you to ensure that you get the outcome you desire. Supply Chain Strategy

We could place several links of companies here. Gray construction, Wehr Construction, etc. But… by far our favorite company is ARCO National, St. Louis. They have helped us on a project where we had to make a mid stream change for the right reasons. They do work with Sysco and other big name fortune 50 companies as well as privately held companies.

https://www.arconational.com/st-louis/

Another is in Cincinnati, CR architecture & Design. They have a mission of listening before acting, so they really understand the values, culture and vision of the customer to design the right space. As an alternative we have chosen this company as a “go to” as well. They are a large company with many offices through out the U.S.

https://cr-architects.com/about/

We hope this post was helpful. Congratulations on your new construction project! The investment will last a lifetime. Thank you for reading this post.

What is a satisfied customer in 2025?

Fri, 08 May 2020 11:01:00 GMT

The New Dimensions of Customer Satisfaction

In 2025, the landscape of customer satisfaction has evolved dramatically, driven by rapid technological advancements, heightened customer expectations, and a more profound understanding of the customer journey. As businesses strive to navigate this complex terrain, understanding the concept of a satisfied customer in this era is paramount. This blog delves into the essence of customer satisfaction in 2025, highlighting key elements that define it and offering insights on how businesses can achieve it.

Personalization at Scale

In 2025, personalization has transcended basic product recommendations, evolving into a holistic strategy that encompasses every touchpoint in the customer journey. A satisfied customer is now one who experiences a seamless, personalized interaction that anticipates their needs, preferences, and behavior patterns. Businesses leveraging AI and big data to craft these individualized experiences are seeing unprecedented levels of customer loyalty and satisfaction.

Omnichannel Excellence

The distinction between online and offline has blurred, giving rise to an omnichannel experience that ensures consistency, convenience, and accessibility across all platforms. A satisfied customer in 2025 no longer tolerates siloed interactions but expects a unified brand experience whether they’re shopping online, in-store, or through social media.

Proactive Customer Service

Proactive customer service has become a cornerstone of customer satisfaction. In 2025, businesses don’t wait for complaints to address issues. Instead, they anticipate problems and offer solutions before the customer even realizes there’s an issue. This approach not only resolves potential dissatisfaction but also strengthens the customer’s trust in the brand.

Sustainability and Ethical Practices

Today’s consumers are more environmentally conscious and socially aware. A satisfied customer in 2025 chooses brands that align with their values, focusing on sustainability, ethical sourcing, and corporate social responsibility. Brands that demonstrate genuine commitment to making a positive impact on the world earn their customers’ respect and loyalty.

Continuous Engagement

Engagement doesn’t end with a purchase. In 2025, satisfied customers are those who feel connected to a brand through continuous, meaningful interaction. Whether it’s through personalized email marketing, community involvement, or exclusive content, ongoing engagement keeps the brand top-of-mind and fosters a long-term relationship.

Achieving Customer Satisfaction in 2025

To create satisfied customers in this new era, businesses must invest in technology that enables personalization and omnichannel experiences. They should also adopt a customer-first mindset, focusing on proactive service and engagement strategies that anticipate and meet customer needs. Additionally, demonstrating a commitment to ethical practices and sustainability can significantly enhance customer satisfaction and loyalty.

In essence, a satisfied customer in 2025 is one who feels understood, valued, and connected to a brand that not only meets their expectations but also shares their values and contributes positively to the world. As businesses adapt to these evolving standards, the ones that succeed will be those that can genuinely engage with their customers on a deeper, more personal level.

Embracing these principles and strategies will not only satisfy the customer of 2025 but will also drive sustainable business growth in an increasingly competitive and complex market landscape.