Posted on Leave a comment

What is Logistics Organization Structure?

Businesses outsource these functions to other organizations so that the cost is lowered and the efficiency of the supply chain is automatically increased. The logistics company are usually third-party service providers that specialize in a specific area of logistics.

Definition of Logistics

The term logistics mean the organized transport of products and materials. It is that part of the supply chain management that uses material handling, transportation, security and distribution. If you ask what does the term logistics mean, it means how the process is planned and how the goods are stored from the original point to the end.

How Does the Logistics Organization Structure Work?

A supply chain is a network of suppliers and distributors. So, for instance if you wish to transport a product from point A to point B, then the concept of logistics come into play. In the military, the supply of inventory and equipment handling was done through logistical operations. The logistics resources include any mode of transportation that helps reach the destination. It can be any kind of transportation such as ships, pipeline and tanks that can help create products, raw materials and equipment for easy flow of goods transportation. 

The supply chain systems depend on using logistic resource configuration as you can easily rely on the demand and supply of products. 

What is the Structure of Logistics Management?

The organizational structure based on the hierarchy of powers are:

Linear: They are part of the initial development stage for small organizations with only a single management level that comprises business owners. They are also dependent on direct authorities.

Combined: This organizational structure comprises the staff and linear logistics management.

Staff: These services ensure expert decision making of qualified line managers in different departments. The staff depends on specialists from different fields.

The logistics management structure

Hybrid: The hybrid organizational structure comprises divisional and functional structures. It suppresses the shortcomings and strengthens the pros of both the structures. The structure comprises not only divisional units but also functional sections that are centralized in the top management.

Center: To simplify complicated organizational structures, the center is used to help build and develop a logistic organization structure. The head of economic center may be considered as an independent entrepreneur. The centers use not only cost, profit but also investment and revenue expenditures.

Project: The managers and supervisors send the projects by combining the functional and other structures. The tasks are received by the workers who take part in the projects given to them by the project supervisors and managers. 

Matrix: Large diverse companies have this strategy that there is only one organizational unit that connects all kinds of management activities.

Product: Divisional structures are part of modifications of organizational structures. They are opted for the growth of the functional organization and how they operate in different environments. The division is broken down into various units that is broken down by products, services and geographic locations because of the company’s target customers.

Divisional: In this organizational structure, the sales, production, knowledge and environment use strategic business units from other older companies. Through this model the business can be carried out within the company.

Functional: The functional organizational structures are created by grouping workers into different sections by discussing similarities and tasks. Most midsize businesses have logistics organization.

Strategic Business Unit: This organizational structure is open to customization. It is usually used when the company can’t cope with the changing market conditions, other quality requirements and advancements in information technology.

How Important is Logistics Management?

Logistics is an essential element that contributes to successful supply chain that helps boost the sales and profits of a company. It helps with the warehousing, shipment and product deliveries. 

It not only boosts efficiency, guarantees seamless delivery, gives the best customer satisfaction and ensures a successful supply chain process. Reliable logistics services are beneficial for businesses as they can help in boosting the value of a business and keeping up with the best public image.

The customers make or break a product idea. Customer satisfaction is the key to the ultimate success of a business. A reliable logistics management company lets you plan out good strategies that can allow better services to meet customer demands. 

Logistics inventory management helps companies store and move items from one place to another. It helps manage raw materials, components and finished products. It is utilized when suppliers send the required materials to companies. 

Posted on Leave a comment

Benefits of HR-V Cargo Space Service

Here is how you can find out that there are plenty of advantages the Honda HR V has over Hyundai. When you travel in an SUV with your family, there is a lot of room with many features. The HR V may be right for you but you must learn more about it before you reach a decision.

Plenty of Passenger and Cargo Space

One of the biggest advantages of using passenger and cargo space service is that it has plenty of room for five passengers as it is shown in these interior dimensions. The front head room is of five inches while the legroom is of 41 inches. There is also rear headroom that is only three inches long and the legroom is of 39 inches. You can get cargo space with more than twenty cubic feet just behind the rear seats and there is approximately more than fifty cubic feet space when the seats are folded down.

Folding the seats down can give you more storage space. This means you can transport everything in one single trip. You can take advantage of different configurations to fit all your items in the SUV. There is utility mode, long mode and tall mode. Through the utility mode, the rear seats get completely flat so that there is a lot of cargo room. In the long mode, you can fold down the passenger side front and rear seat so that it becomes around eight feet long. In the tall mode, you can fold the bottom of the rear seat up so that you get ample four feet of vertical cargo space.

Reliable Performance

The HR V comes with a 1.8 L cylinder engine which delivers around 141 horse power. As the two-wheel drive model gets equipped with a variable transmission. Because of reliable performance, there is a real time AWD with intelligent control system that will transfer power to the rear wheels so that they can sense that the front wheels lose traction. You can also focus on driving as the system works for you to keep you in control on roads that are less than ideal.

Advanced Technology

HR V offers more of a command center with a driver’s cockpit design and functionality. The look of Honda HR V is not only appealing but it has a lot of curb appeal. There is a tall cabin and it means there is more space for you and your lifestyle. When you are behind the wheel of an HR V, you feel confident and bold. 

The Honda HR V offers high tech features. It comes with a five-inch color screen, a four-speaker sound system and Bluetooth technology so that they can make hands free phone calls. It also comes with a seven-inch display audio stream with a high-resolution touch screen and a sound system. You can also connect to your mobile device so that it cannot only stream music but also helps you access social media and get service appointments. The HR V comes with safety features. There is anti-lock braking system, multi angle rear view camera with guidelines, and a tire pressure monitoring system.

The information given here is one of the reasons why Honda HR V has become such a great SUV family. It is not only ideal for a long family trip, but it also allows you to spend some time taking your kids to school and enjoy more sports games. They can spend less time stopping at the gas station to refuel. It is one of the reasons why people who travel through Honda SUV enjoy a comfortable trip. They take benefit from the advanced technologies. The use of cargo space and extra passenger space allows people to choose this particular SUV. When you signal towards the right, a small camera on the passenger side mirror shows a live video feed of the roadway on the display screen. All these latest technologies and advancements make the Honda HR V one of the greatest cars that any family would dream to have.

Posted on Leave a comment

Supply Chain Changes After 2023

Supply chain operations have been the same for a very long period. The lack of change and innovation in the field has made supply chains prone to failures and vulnerabilities. These vulnerabilities in the supply chain were severely exposed during the pandemic. 

Although the shipping industry was able to make it through the pandemic with these vulnerabilities, if these flaws are not rectified, the entire operation can collapse, halting the global supply chain. 

As we walk into 2023, we will witness significant changes in the global supply chain ecosystem and see new and improved methods being used in the business. 

As firms strive for greater efficiency and sustainability, new technologies and strategies for transforming supply chains emerge. Predictive and prescriptive tools, blockchain technology, machine learning, and Industry 4.0 are all expected to change how firms handle their supply chains in the near future.

This will allow firms to make better decisions, cut costs, and adapt quickly to changing market situations.

Today we will discuss some of the significant changes that will happen in the year 2023 and the years that follow.

Supply Chain Automation

Businesses may benefit from automated systems by cutting costs, simplifying operations, boosting efficiency, enhancing supply chain visibility, and allowing decision-making. Companies must invest in cutting-edge technology such as AI/ML, robotics, and IoT (Internet of Things) to compete. 

A recent Gartner research found that 61% of respondents feel technology gives a competitive advantage. Many people see new technology as an important area for investment, with 20% investing in robotics. This would be one of many supply chain changes after 2023.

Integration of BlockChain in Data Handling

Blockchain’s distributed ledger technology has enormous potential to alter the supply chain industry. Using blockchain technology, firms may securely store and disseminate data across their network. Enterprises may use smart contracts to automate procedures and ensure all parties adhere to the set rules. Blockchain enables businesses to track and trace things across their supply chain, guaranteeing only legitimate items are delivered to customers.

Sustainability of Supply Chain

Today, as more businesses attempt to reduce their carbon footprint, sustainability is a top focus in the supply chain industry. Companies must strive to build sustainable practices that minimize their environmental impact by employing eco-friendly plastic packaging, supply chain management, renewable energy solutions, and resources such as carbon footprint calculators.

This will ensure that supply chains remain flexible and sustainable, even under quickly changing market situations, and will assist firms in remaining competitive in a more environmentally concerned world. According to a Gartner survey, 84% of supply chain leaders anticipate investing in climate adaptation and mitigation strategies over the next 18 months.

Managing Risks and Adaptability

Risk minimization is becoming increasingly important in the supply chain industry. Today’s organizations attempt to identify and manage potential risks before they become big crises, arming themselves with resilient ways to deal with unanticipated changes and disruptions. 

To do this, organizations must install solutions that allow them to recognize and respond to potential risks quickly, deploy data analysis systems that detect potential hazards before they arise, and continually change their plans and activities to changing conditions.

Planning in Collaboration

Companies must be able to collaborate with their suppliers and partners to quickly develop focused strategies that allow their operations to run successfully. Collaborative planning is critical for uniting divergent teams and allowing them to work toward a cohesive corporate goal that considers all stakeholders’ desires and objectives. 

Businesses should focus on developing collaborative relationships next year by embracing digital technologies such as cloud-based technologies and predictive analytics to manage their supply chains better.

IoT For Monitoring

IoT tracking is becoming increasingly important in the supply chain industry. Using IoT-enabled devices, businesses can quickly and accurately track the flow of their products across the supply chain. This will assist in ensuring operational systems remain effective and adaptable in the face of changing market conditions.

Most businesses have learned in recent years that their supply chain and logistics strategies must be revised since they have failed to succeed. By cooperating with the critical global macro trends, they must scale their efforts to stand out, function more effectively, and improve services in 2023.

This will enable them to drive fundamental change and development in the sector and enhance logistics and supply chain performance and resilience in the years ahead.


These are some supply chain changes after 2023 and the years that follow. Logistics companies must adapt to these changes to earn more profit and become sustainable.

Posted on Leave a comment

Supply Chain Trends In 2023

The future is unpredictable. But regarding the supply chains in 2023, some predictions can be made by looking into the history and the circumstances we might face. 

One could forecast the disturbances in supply chain operations in 2023 for multiple reasons, whether they already exist or because of new geo-political conflicts due to a rise in inflation, climate changes, or any other issue yet to come forth. 

Other consequences can be increased prices and port congestion, resulting in the reduced availability of ocean/sea freight. Port congestions can disrupt the delivery timings leading to delayed shipment hence slower supply chains.

This blog details about the supply chain trends in 2023, and threats that company owners must look-out for. Keep reading to find out better ways to boost your supply chain management plan.

The covid-19 pandemic has severely disrupted the global supply chain over two years, causing an instant change in demand and immense plant shutdowns. 

In the post-covid era, a revolution in the ray of adaptation to uncertainty is critical, which means that to satisfy the customers on a grander scale and for saving costs, the merchant must come up with strategies, analyze the risks, and research the market. 

Below are eight supply chain trends in 2023 for you to take care of and remain up-to-date with the industry.  

Artificial Intelligence And Machine Learning:

The advancement in technological areas has provided a boost to the use of artificial intelligence(AI) and machine learning in many industries. Implementing AI in demand, product examination, and sales prediction is a crucial trend for supply chains in 2023 and the upcoming years.

Forecasting Using Data Analytics:

Data is vital for businesses to manage the supply chain strategically. Most companies track this essential information using spreadsheets. However, industries are working towards automatization, enabling less human involvement in management while still getting desired results.

Forecasting enables you to calculate the future, saving you from the risks. It is highly challenging because customers’ priority changes due to product shortage. Reliable software and artificial intelligence make the job a bit easy by suggesting products with less demand, products that are selling fast, and new product trends in the market.

Digital Supply Chain And The Internet Of Things(Iot):

IoT allows us to transfer data over the network without human involvement. The internet of things(IoT) is an interconnected network consisting of computers, digital and mechanical machines, objects, or people who have been given unique identifiers(UIDs). 

Supply Chain Efficiency:

To make your business thrive during harsh situations, you must ensure your supply chain is competitive and capable of managing the unexpected appropriately and profitably.

Supply Chain Resilience:

The resiliency of a supply chain is anticipated by its ability to react to the unexpected circumstances it might face in the future, respond to those interruptions, and retrieve from them.

Customer Centricity:

Customer centricity is a strategy to put the customers’ interests first to better their experience and build long-term relationships. Nowadays, customers are more demanding due to the advancements and ease of switching to other brands. So retailers’ top priority is to provide the best service and value their feedback. Hence it’s safe to say that customer-centricity is the supply chain’s future.

Supply Chain  Visibility And Sustainability:

Having an end-to-end view to manage products from initial shipment of goods to final distribution to the market and further to the customer, satiating customers’ needs and requests, increasing profit, defines supply chain visibility. 

You must have a sustainable supply chain to maintain sustainability in your business. Therefore, for a sustainable supply chain, we must re-evaluate the transportation of goods to their initial location and where they are manufactured. 

Data Security And Cybersecurity:

Cybersecurity has become unsettling for supply chain management. The infirmity of cybersecurity could result in severe damage like stealing customers’ data and its inappropriate use for financial gain.

Therefore, for supply chains in 2023, it’s safer for businesses to look into their digital supply chains and have a plan of action to deal with such situations.

Supply Chain Threats In 2023:

Experts have forecasted the following threats for supply chain managers to look-out for;

Container shipping bottlenecks:

Bottlenecks in ocean freight are thought to be persistent in 2023. Delays impact port capacity due to external challenges such as the pandemic resulting in grand congestion, alongside a decline of labor and unplanned shutdowns of ports due to overload. 

The rise in inflation:

When prices go high in one sector, the supply chain has a domino effect as all the sectors are interconnected. The increasing inflation in the workforce, energy, and transportation costs is a significant risk factor to the existing supply chain.

Warehouse scarcity:

The two-year global pandemic has left the supply chain in crisis, including port congestion due to delivery delays, shortage of labor, and outdated infrastructure. The port congestion leads to the forced return of goods to the warehouse causing warehouses to be crammed.

Covid -19 comeback:

While everything is slowly returning to normal post-pandemic, covid-19 is still a significant threat. Any new, potentially more deadly variant can take us back to the covid era, including lockdowns and restrictions producing more disruptions to an already threatened supply chain.

Looking for Better Supply Chain Management in 2023?

If you are looking to have a more sustainable, resilient, and overall better-performing supply chain in 2023, here are some areas you must focus on:

  1. Shift In Labor Supply:

In further years, the labor supply might change significantly. The economy has been predicted to rise more quickly in emerging countries than industrialized ones. Hence laborers will shift to developing countries for work. Therefore, managers should keep this shift in labor in mind when developing global supply chain networks.

  1. All Data In One Place:

Having all your data on a single platform can help you save time and manage your supply chain without delays. Increased visibility will help you look into new trends and adjust your strategy following the entire value chain.

  1. Simplify The Supply Chain:

Making your supply chain less complex by collecting all of your vendors’ contracts into a single agreement that offers flexible terms.

  1. Forecast And Demand Planning:

Forecasting and demand planning prepare you for unexpected events and enable you to meet your customers’ expectations.

  1. Predictive Analysis:

Anticipating the customers’ demand by judging their past sales patterns and identifying trends, understanding the effect of economic and weather conditions on customers’ market can be done by using predictive analytics.

That is all about supply chains in 2023, the trends, the threats, and factors that supply chain management would largely depend upon in 2023.

Posted on Leave a comment

Digital Supply Chain – Explained

A digital supply chain’s foundation is built on web-enabled proficiencies. A lot of IT companies use a combination of paper-based and IT-enabled processes. However, a genuine digital supply chain is more than just this mixed model for the capitalization of connectivity. It is an integrated system that has the capability to produce smart components.

The main aim of the digital supply chain is to allow insights for better efficiencies and facilitate better profits. In addition to the sustainability of waste. Companies that work through a digital supply chain have better resources, assets, and people. Moreover, their inventory is better because they can cater to needs at any time. It also reduces the overall expenses because they respond to manufacturing and transportation risks proactively. Furthermore, when a company is hundred percent digital, they can save in every area, for example, resources, time, expenses, and environmental footprint.

The process of a digital supply chain is such that it monitors the inventory levels, interaction of customers, carrier locations, and equipment in real-time. Furthermore, they use this information to plan and execute a high-level performance. 

The following play a vital role in the digital supply chain

  1. GPS tracking
  2. Radiofrequency identification
  3. Wireless sensor networks
  4. Location-based data

The integration of cloud technologies with Web services unifies the information and processes. It creates more efficient collaboration and trading partner capabilities.

Building a digital supply chain isn’t easy. It requires properly planned strategies and organizational skills. Not putting in enough effort can lead to data duplication and inefficiencies.

Traditional Supply Chain vs Digital Supply Chain

Traditional supply chains work on the strategy of planning and reacting, whereas digital supply chains predict and prescribe actions.

Traditional supply chains work on rules that are historical, which makes them tremendously static. However, the digital supply chain functions in real time; it can adapt to changing circumstances. The difference between the two is vast. The former is linear, and the latter is based on networking.

Supply chain digitization relies on information technology and operational technology. Moreover, the system is also integrated, balancing profits and service levels. The traditional supply chain depends entirely on standalone systems.

Supply chains can encounter problems and unwanted effects, which can be a lot of work if traditional. The majority of companies need to perform regular resilience assessments and list the solutions manually. But, for the digital supply chain, the quality control data is shared. It can allow the companies to resolve the issues right away without the requirement of preplanning.


It is very beneficial for companies to incorporate digital supply chain management into their business. The technology will open doors to tremendous opportunities, evolving the world of digital supply chains.

However, a lot of the companies are still working on traditional aspects and switching to digital can take some time. But it isn’t wishful thinking for companies to become technologically pro in the future. Moreover, these digital technologies will be around for some time, so companies can evolve based on their convenience.

In addition, it is important to understand that the skill set needed for Digital Supply Chain is different in contrast to the traditional methods.

Posted on Leave a comment

Corporate Sustainability: How to Maintain and Improve It

Having a stable job and job security when the economy is in bad shape is a blessing, especially one that is rewarding, both financially and in praise. In such situations, it may seem like it isn’t necessary to worry about whether your employees are happy. However, if you want your employees to perform sustainably, know that happy employees produce more than unhappy ones. They love their job; hence their chances of quitting are less, and they influence others to be committed to their job, too. Corporate sustainability does not only represent initiatives that require finances, time, and human capacity. Nor does it only create a sustainable strategy, but, it impacts measures and leads towards innovations. 

Large or small, every company makes a difference, which starts from one step. Here are some pointers to emphasize that can help in overcoming low sustainability.

Create a Sustainable Team

If you are unable to create a sustainable department, create a sustainability team. It will enable more minds to focus on and tackle problems. Moreover, come up with solutions that are innovative for the company.

A good sustainability team creates a stronger and more sustainable identity for the company. It is possible that the people in your company would want to make a positive impact, so ask them if they are interested in creating a sustainable team.

Other than that, you should also make sure that the people in your team are from different departments and can meet up monthly. A sustainability team can engage the employees, create awareness, and increase the overall performance of the company.

Paperless Business Cards

100 million cards are printed every year across the globe. Out of these millions of cards, more than 80 percent are thrown away. Using digital cards can combat this problem. Moreover, there are many other alternatives in the market that can be investigated as well.

Sustainable Competence and Knowledge

Sustainability covers every aspect of a business, for example, energy consumption and gain. It is important that employees know what sustainability is to create a system that integrates it. Most sustainability initiatives require expertise and knowledge, such as knowing how to talk to employees and eco-friendly tools for product evaluation.

Eliminate All Personal Office Bins 

Most of the things that are thrown away can be recycled and waste can be reduced. According to the stats, when office bins are removed from under the employee’s desks, the amount of waste is recycled significantly.

It is human nature to use what is convenient. So, when an employee has a waste bin under his desk, he will never walk to the recycle bin. One great example is Curaprox, which is a Swiss company that took the initiative of offices without bins. The amount of waste decreased by fifty percent after this initiative. In addition, general waste decreased by seventy-five percent and sorted waste increased by twenty-five percent.

Productivity and Purpose

Our aim should be towards sustainability because that is better in every way. A company should have a strategic and meaningful approach. They should be able to tie their purpose to their values. 

Posted on Leave a comment

Supply Chain Risk Mitigation: Now More Important Than Ever

Russia’s untimely invasion of Ukraine has created a potentially dangerous and turbulent situation for logistics. These disruptive circumstances are not only limited to the affected area but are also directly impacting other areas beyond the war zone’s boundaries, urging the nations to work on supply chain risk mitigation strategies.

Russian invasion into Ukraine is affecting the logistics sector primarily and creating havoc for the global logistics industry. The logistics industry is currently facing significant risks which include transportation modes such as air, rail, road, and marine freight and fuel services risks.

However, targeted strategies have been planned to cope up with the logistics disruptions and overcome the potential risks as mentioned above. Some of the sanctions implemented on Ukraine by Russia are making the situation only worse with each passing day. Logistics industry always is at the dying edge of the boat in such war circumstances. National leaders group themselves on a round table and develop different coping strategies in such situations; however, risk mitigation is the only strategy that really counts. Some potential risks are discussed below that can rip off various aspects of the global logistics industry.

Air Freight Risk:

Air freight risk will eventually result in increased cost and limited capacity. It will create no-fly areas due to which flight house will be increased, and so will the operating cost. The impact and likelihood of air freight risk is exceptionally high; therefore, an adequate mitigation strategy must be created to combat any large disruption.

Mitigation strategies for air freight risk:

  • Extend the pricing contracts For the next seven to eight months.
  • Implementation of index-based price managements should be made on immediate notice.
  • Take core partners in confidence and work closely with them to mitigate the increased cost.
  • Remove capacity if not needed in air transport.

Rail Freight Risk:

Rail freight services between Europe and Asia will face disruption. Pan-European rail freight services will also face considerable transportation disruption. The European continental rail network will also be disrupted in the areas outside Russian territory. The impact and likelihood of rail freight disruption will range from high to low.

Mitigation strategies for rail freight risk:

  • Shift modes of transportation to air and water freight services.
  • Utilize the rail linking rail between northern Kazakhstan and southern Turkey.
  • Try using shorter routes for transportation.

Road Freight Risk: 

The disruptions and affected areas of road freight will almost be the same as rail freight. Road freight disruptions will be seen in Eastern Europe and Pan-European territory. Due to the potential risk, routes will be shifted to alternate areas, eventually increasing the transit hours. Similarly, the areas outside the Russian region will be affected equally. The impact and likelihood of road freight disruption will range from low to high.

Mitigation strategies for road freight risk:

  • Work closely with affected road carriers.
  • Understand and learn the changes in routes and services. 
  • Find out whether your carrier of choice will apply a surcharge.


Logistics professionals should not lose their hopes but must prepare themselves for the worst as well. Some of the immediate actions mentioned below should be taken to combat disruption risks.

  • Plan alternates for every sort of logistic risk.
  • Prepare for the unexpected and the worse.
  • Analyze risk assessments and implement strategies on logistics networks.
  • Reduce the risk exposure and constrain the surface area.
  • Enhance the transport planning route time.
  • Re-evaluate network resilience and capacity.
  • Prepare alternate sources of supply and transportation.
  • Create emergency funding for incremental costs of increased fuel charges.
Posted on Leave a comment

What Is Supply Chain Security?

supply chain security

A supply chain can vary significantly from one another. A company that manufactures electronic devices has a different supply chain than one that manufactures sports goods. So, the definition of what is supply chain security can not be explained under one set of rules and recommendations. 

In general, supply chain security involves protecting a supply chain against any physical threats or risks. It also considers the regulations set by local and international governments for the integrity of supply chains.

We noticed that many companies showed little to no interest in cybersecurity in the past. Companies did all in their might to protect their supply chains from physical threats, such as sabotage, theft, and terrorism. Factories would be visited by independent auditors, regulators, and corporations who do background checks on employees. Cargo would be documented, secured, and examined before and after shipping to prevent fraud or theft.

Physical attacks are still avoided by tracing shipments and rechecking regulatory documents. Vendors are also told to obtain shipments specified by quality criteria, and a company may employ multiple vendors to ensure a nondisturbed supply of commodities.

What Are We Neglecting?

While we don’t discourage anyone from paying much heed to physical supply chain security, we do not encourage them to focus on physical security alone. The recent supply chain attacks in covid-19 are an excellent example of the need for excellent cyberdefense in today’s world. Just as the cyber pandemic began spreading in 2020, the global supply chain started feeling the strain, which will continue into 2022. Millions of people started to use internet shopping as their primary, if not sole, method of acquiring items, resulting in a surge in transportation demand.

The computer components supply chain is an excellent example of this. The computer chip deficit is one of the worst situations in the present supply chain problem due to work-at-home situations, internet games and entertainment, and public demand.

The market forces for specific components were never higher for both manufacturers and buyers. Computer lovers are now enrolling in year-long waiting lists for graphics chips, while automakers report losses in millions owing to chip scarcity. 

5 Ways How You Can Ensure Better Cybersecurity

Risk Assessment:

It’s critical to understand where your new suppliers stand on cybersecurity before entering into supplier partnerships. What kind of safeguards do you and they have in place? What procedures and policies are in place to maintain data security? You want to know that sensitive client information will be kept safe in any data you share with your suppliers. You should secure all your partners, but those who play a critical role in your supply chain will be at higher risk and require greater caution.

Train Your Staff:

The most common cause of cyber attacks is still human error. As a result, it’s one of the most critical issues to address. While you should constantly strive to create a cyber security-aware culture inside your organization, this practice should also be supported throughout the supply chain. A good method to do so is sharing resources with vendors to educate their personnel about cyber threats.

Take Necessary Security Steps:

A supplier policy can effectively encourage an open relationship with your suppliers and set clear expectations between you. You can devote parts to cybersecurity and data protection in such a document, laying out what level of security your vendors should be able to demonstrate. Asking your suppliers to align themselves with an existing set of cybersecurity standards and certifications is one of the simplest ways to do this.

Be Cautious:

Small firms must evaluate the security of their suppliers and maintain a high level of cybersecurity to persuade more significant partners that they are not a security concern. Many firms, particularly in the public sector, are now demanding their suppliers meet specific security criteria before gaining contracts with them.

Transfer Data Safely:

Data must be transferred through secure channels and kept secure at all times in the supply chain. Because hackers are most likely to intercept data as it moves from one location to another, maintaining adequate security during this process is critical. Encrypting data before it is transferred is an excellent approach to reduce this risk.

Companies should also ensure that they have a thorough picture of the various types of data in their supply chain and where it all resides. Internal data (together with backup systems) and data that your suppliers have access to are included.


Managing cyber threats in the supply chain doesn’t have to be difficult, but it is critical to accept responsibility for your own risk and adhere to standardized cybersecurity standards. Understanding all partners’ security processes, rules, and solutions is in everyone’s best interest. These actions lower risk throughout the supply chain and show clients, partners, and stakeholders that their secrets are secure with you.

Posted on Leave a comment

How did lowe’s home improvement modify its logistics network during pandemic?

Lowe’s started as a small hardware store in North Carolina, USA and it has now become a household name. From a local hardware store to becoming one of the most well-renowned home improvement retailers in the world, Lowe’s home improvement worldwide prominence has not come by chance or luck. They have proven time and time again, that their ability to adapt to different environments and fulfill customer requirements has been a crucial part of their success. 

In a recent statement, Lowe’s Executive Vice president of Supply Chain, Don Frieson stated that the two most integral reasons for Lowe’s success are; 

  1. Leveraging Coastal Facilities 
  2. Making a shift to a market delivery model

The toughest and the most profitable season for home improvement retailers is the springs. Springs push property owners in large numbers to seek out new tools, utensils, materials, and devices so they can prepare for the season. As the demand increased, most of the companies that were already short on supplies, failed to meet the customers’ demand. This our Lowe’s under enormous pressure, because not only were they catering to their usual market but now they also had to provide supplies for the other customer of other companies. At the end of the day, customers had to buy products from somewhere, right?

Lowe’s home improvement’s logistics network & the crisis at hand

To encounter this challenge, Lowe’s had to do a little renovation of their own. Don Frison stated that; “Just like any other company out there, we’ve had to make the right pivots to survive in this environment”. As most companies adapted a hybrid model or completely shifted to the remote work model, Covid-19 and the lockdown became the reason for a lot of new customers and generated sales for Lowe’s.  

Although it increased sales, it put enormous pressure on production. It was already suffering from an unstable inventory, and warehouse operations, as well as the extra load, seemed like too much to handle. 

To overcome the problem on hand, the company decided to expand its logistics operations and altered towards a more productive and efficient home delivery approach, along with other tactful steps. They also increased the cost of sales compared to the previous fiscal year. 

How did lowe’s manage the product shortage and other odds?

To ensure product availability, Lowe’s formed a combination of regional and flatbed distribution centers. This assisted in moving a large number of imports to the warehouses and the customers. Furthermore, the company has accumulated a few more practices since the pandemic, some of which go beyond these distribution networks.

When we look at the numbers, the progress of Lowe’s become quite evident. 

  • They have inaugurated 15 regional distribution centers, that pick up the products from vendors and deliver them to the stores or in some instances directly to the customers 
  • They have also added 15 flatbed networks, that deliver special products which require, delicate handling
  • The number of stores, that flatbed, and regional distribution centers covers has gone up to 115 
  • 35% of the Company’s product was shipped directly from the vendors, and the larger chunk, 65% was purchased and delivered via its distribution centers 

They further enhanced the operations by accounting for six new cross-dock delivery terminals to meet the last-mile shipments. They have also opened 4 Bulk distribution networks to manage huge merchandise such as heavy appliances. The company is also utilizing coastal holding which allows the stores to receive products early and minimizes the delivery time.    

Delivering the products from warehouses to the retailers 

To enhance the supply chain. Lowe’s is introducing a new system that will minimize the number of mid-parties and build a more direct supplying network for the customers. 

A Senior member of Lowe’s said that their current delivery system is not as sufficient as it should be, he added; “each store functioning as its distribution node for big and bulky products”. 

The incapability of the current delivery model made Lowe’s launched a new system. In this model, they completely skipped stores while delivering goods to the customers.  The turnaround time changed rapidly, now they could deliver products within the same day, or within just 4-5 hours to be precise. After its success, they have applied this model at various locations and the results have been remarkable. They have had improved operating margins, increased appliance sales, better inventory, fewer damages, and higher customer satisfaction rate due to prompt deliveries”.

Posted on Leave a comment

Pandemic Impact on Supply Chain in Shanghai & Rising Global Concerns

As the number of Covid-19 cases started to decrease around the world, China became one of the first countries to recover from the pandemic and it seemed like things were getting back to normal. But unfortunately, China’s recovery from the pandemic couldn’t last long and Shanghai, which is one of the most prominent cities in the East Asian Country, became the new epicentre of the rising Covid cases. Now, let’s learn more about the pandemic impact on supply chain in China.

How has the pandemic affected supply chain in China?

Even after implementing a successful strategy of “Zero-Covid”, China is once again in a challenging state. To bring down the severity of the pandemic, Shanghai is facing a massive lockdown that creates huge uncertainty in the supply chain.

During this month, the number of cases has risen to 26,000 a day and that’s a huge number considering the previous situation in China, which was quite under control. According to news sources, some areas of the city are starting to open despite the increasing number of cases, but the city at large remains under lockdown.     

The closure of Shanghai has brought major disruption to the supply chain, the costs are continuously on the rise and transportation of goods has become extremely difficult, and all the trucking operations are almost on hold. The disruption in supplies in the factories is slowing down the workflow, and as the numbers increase, the experts and analysts are getting more and more concerned about the persistence of the global supply chain.          

Increasing Supply Chain Problems in Shanghai

As the covid is spreading in Shanghai, it is getting more difficult for truck drivers to manoeuvre through the city. More checkpoints are being positioned verifying the covid-tests of the drivers and they need to get tested every 24 hours which is really frantic. Conducting these many tests without proper logistics is turning out to be more chaotic.  

Head of Network Operations at Flexport, Derek Bushaw stated that “Trucking is the lifeblood of the first and last mile”, he further added that “The first mile for the factories is that inbound delivery of components, and whether those are imported or domestically sourced, that’s still a challenge because it depends on trucking.”

There’s been a huge decline in the efficiency of shipping companies in the past month, the efficiency has dropped to over 30% because of the deficiency of trucking transport and logistics, which is detrimental to the global supply chain. The hindrances within the city of Shanghai are forcing a lot of cargo companies to end their operations and leave the city. 

To sustain production, Shanghai has implemented a “closed-loop system” which means that the workers spend all day in the factories and never leave the place. It is working so far but experts predict that they’ll eventually run out of supplies and they’ll have to open up the city for imports and supplies. 

Massive manufacturing plants such as Apple’s supplier Pegatron have announced that it has paused its operations in Shanghai due to harsh Covid-19 restrictions. Well, it is expected that the restrictions will ease up by the end of this month. Experts believe that if the disruptions continue till the end of this month, we’ll see a major increase in the price of commodities.  

impact of pandemic on supply chain
impact of pandemic on supply chain

Instability hazards: huge Impact of pandemic on supply chain

The biggest question here is that what guarantees the prevention of another lockdown? And if we’re being honest there’s no certain answer. Head of APAC Strategy at FAO Global, Cameron Johnson said that regardless of the future operations, the current lockdown will cause the product prices to rise at least 4-5 percent.  

Alongside Shanghai, the neighboring city of Kunshan is also facing strict lockdowns and restrictions, which is also damaging the total output and productivity of several factories. Similar to Shanghai, Kunshan is home to gigantic automotive and electronic suppliers that provide supplies to companies such as Apple and Tesla. So, the consequences will be worldwide and drastic.

Jena Santoro (Manager of intelligence solutions for the Americas at Everstream Analytics) believes that this is just the starting of this outbreak, she further added that this situation will only elevate regardless of the lockdown, and it’ll most likely be the next big covid-19 situation. 


The biggest issue here is that the future is uncertain, and planners can’t formulate a strategy. We can only wait and hope that the situation gets better and clearer as time progresses because otherwise, it doesn’t look that good for the production houses in Shanghai and Kunshan.