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Supply Chain and Logistics

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Supply Chain is now a household name

Last year, as grocery store and retail shelves went empty, “supply chain” became a household name. In 2022, this new level of visibility will influence the way supply chain and logistics managers approach their jobs. We’ve looked to the experts and, from their wealth of knowledge, compiled our picks—trends to look for in the coming year.

Trend #1: Recruiting will become more strategic.

A simple job posting isn’t enough to attract qualified candidates anymore. To find outstanding talent, hiring teams must be innovative.

  • Consider forging relationships with supply chain organizations, like APICS or CSCMP.
  • Why not partner with colleges that feature supply-chain-related degree programs?
  • Or how about advertising on a niche job board like supplychaincareers.com?
  • Start weighing the benefits of transferrable skills.
  • Create internships and make them available through local colleges and job centers.
  • Be forward thinking when it comes to recruiting qualified talent. This means reviewing your plans for targeted hiring, compensation planning, and retention strategies.

Trend #2: Supply chain agility will be an advantage.

To satisfy customer expectations and remain competitive, an agile supply chain will enable you to quickly react to delays and changes. Steps to boost your agility include:

  • A greater emphasis on risk management
  • Increased end-to-end visibility
  • Physical changes to the supply-chain footprint
  • Diversifying inventory storage
  • Automation of order processing and shipping
  • Data-driven decision making

Trend #3: ESG and sustainability practices will be imperative.

Since the early 2000s, stakeholders and consumers have looked to companies that proactively address environmental and social concerns. The pandemic accelerated this trend, moving sustainability from “good to do” to “imperative.” In 2022, this will include an increased emphasis on supply chain transparency, including:

  • How was a product sourced, handled, shipped, and delivered?
  • Were the manufacturing processes ethical?
  • Did they impact the environment?

Sustainability is now essential in creating supply chain processes, and all enterprises will eventually need to create programs to address these concerns.

Trend #4: The use of artificial intelligence (AI) and Internet of Things (IoT) technologies will continue.

AI and IoT technologies are on the rise, with AI playing a growing role in IoT applications and deployments. Able to perform tasks previously done only by human hands, these technologies have been especially useful in addressing the global worker shortage of the last two years. Major providers now offer integrated AI capabilities, such as machine learning-based analytics. The value of AI in this context is its ability to quickly wring insights from data.

Trend #5: Reverse logistics will play a critical role.

As online sales increase, the need for a robust reverse logistics process is imperative. This service directly supports all circular economy initiatives. Besides enhancing sustainability, a solid reverse logistics strategy and reuse offering will improve customer loyalty. It will also reduce cost, retain revenue, and allow for growth opportunities and custom integrations.

 

As fallout from the pandemic continues, savvy supply chain leaders will continue to keep an eye on trends, adapting and innovating as they look toward the future.

Ready to take your supply chain and logistics processes to the next level?

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From virtual, to hybrid, to in-person conferences, here are 10 events that supply chain and logistics managers should be aware of in 2022:

JumpStart 2022:
January 24-26, Atlanta, GA
(In-person)

Join in-depth panel discussions focused on supply chain trends, transportation regulations, emerging technologies, and infrastructure. The lineup is tailored to provide carriers, shippers, 3PLs, and other professionals with a full picture of the multimodal supply chain.

Manifest:
January 25-27, 2022, The Paris, Las Vegas, NV
(In-person)

Manifest 2022 will bring together the most comprehensive ecosystem of innovation and transformation in LogisticsTech and end-to-end supply chain.

18th Annual RLA Conference and Expo:
February 7-9, 2022, Las Vegas, NV
(In-person with pre-events starting the evening of February 6)

This conference is designed to bring RL professionals together for three days of powerful keynote speakers, content-driven panel discussions, and an ample amount of networking opportunities.

America’s Procurement Congress:
March 17-18, 2022, Eden Roc, Miami, FL
(In-person)

Embrace the new value drivers propelling the function to deliver business impact.

Modex 2022:
March 28-31, Atlanta, GA
(In-person)

From illuminating education to next-generation technology and equipment in action, MODEX lets you see what’s coming — and take advantage of it to power your supply chain with more possibilities for years to come.

American Supply Chain Summit 2022:
May 3-4, Dallas, TX
(In-person)

The Supply Chain Summit serves as an annual platform to exchange ideas and collaborate on the impact of market dynamics and new technologies for current and future supply chain and operations leaders.

Reuters Supply Chain Execution 2022:
June 2022, Chicago, IL
(Hybrid format. Check website for June date.)

With supply chain execution now central to business-success, supply chain executives must embrace a digital mindset and accept that this isn’t just a buzz phrase but a requirement for a modern, data-driven, customer-centric supply chain execution process.

Garter Supply Chain Symposium:
June 6-9, 2022, Orlando, FL
(In-person)

Delivering the must-have insights, strategies, and frameworks for chief supply chain officers (CSCOs) and supply chain leaders to think big, make bold moves, and drive real impact within their organizations.

ASCM CONNECT Annual Conference:
September 18-20, Chicago, IL
(Hybrid Event)

As the largest non-profit association for supply chain, ASCM is an unbiased partner, connecting companies around the world to the newest thought leadership on all aspects of supply chain.

CSCMP Edge Supply Chain Conference and Exhibition: September 18-21, Nashville, TN
(In-person)

The global landscape has fundamentally shifted. Connect with your global supply chain community to discover the latest innovations, new strategies, and best practices like never before.

Ready to take your supply chain and logistics processes to the next level?

Partner with PRIDE Industries to streamline your operations, drive customer satisfaction, and improve your bottom line.
Learn More

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“Early on, we discovered Ramon’s talent for making boxes and making them quickly,” says Matt Weiss, Distribution Manager of HP Operations at PRIDE Industries. “The fact is, folding boxes isn’t as simple as it sounds. There are a lot of complex folds—it can be pretty confounding.”

 

According to Scott Lacey, Director of Production Operations for PRIDE Industries, Ramon is so fast and accurate in making and filling boxes that it takes two or three people to fill his shoes when he’s absent.

 

“The way Ramon moves, the fluidity of what he does—how he knows which materials will fit which cubic volume—it’s a very fast process,” says Scott. “He thinks fast. He moves fast. And he moves things through the operations so efficiently that there’s no backup. He’s one of those people that, when he’s not here, you know it.”

 

According to Scott, when an incredibly high amount of volume flows through, Ramon’s speed and accuracy enable us to keep operations flowing smoothly. And he achieves this high level of performance even though—like most employees at PRIDE Industries—he has a disability that once made it difficult for him to find work.

Resilience at Work

At the young age of ten, Ramon was diagnosed with a brain tumor. After multiple surgeries, radiation, and chemotherapy treatments, the tumor subsided. However, the battle cost Ramon much of his teen years. It also took away his sight in his right eye.

 

“My left eye is okay, but the right one … I cannot see with it,” says Ramon.

 

Years later, after his family relocated from Mexico to the United States, Ramon found employment in the fast-food industry. However, he was unable to see the order boards and had to leave that line of work. Then in 2004, he found his way to PRIDE Industries—where, after demonstrating his skill and commitment, he was offered a permanent position in 2007. Since then, he’s continued to be an outstanding employee at our HP Operations Facility in Lincoln, Calif.

Employing People with Disabilities Makes Sense

Ramon’s story proves what the job coaches at PRIDE Industries see every day—people with disabilities have as much to contribute to the workplace as anyone else. In fact, people with disabilities consistently boast impressive statistics when it comes to employment, including higher retention rates and lower absenteeism than average.

 

As for Ramon, he embodies these traits—not only on the shipping floor, but also in the classroom and beyond it. Once he accepted his position with PRIDE Industries in 2007, he was determined to effectively communicate with coworkers, so he studied conversational English at night school—while employed full time. He then took the citizenship test and passed, becoming a United States citizen the same year.

 

Ramon’s employment story wouldn’t be complete without one additional element: travel time. Due to his vision loss, Ramon can’t drive. So, he relies on public transportation. Although he lives only 15 minutes, as the crow flies, from his workplace, the journey can take up to three hours a day—including time spent transferring from one bus to another. Yet, to Ramon, the journey is worth it because, in the end, he arrives at a place where his extraordinary talents are fully appreciated.

 

Tenacity. Dedication. Skill. And a great attitude. An employer couldn’t ask for more, and that’s what Ramon delivers every day.

Make a social impact

PRIDE Industries builds inclusive, diverse work environments where people with disabilities can thrive. Is your company seeking well-trained, reliable employees? Join our Employment Partner Network today.
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ramon telles
Ramon Telles

“He thinks fast. He moves fast. And he moves things through the operations so efficiently that there’s no backup. He’s one of those people that, when he’s not here, you know it.”

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Increase Revenue Opportunities and Improve Cost Avoidance

By Bob Anderson, RLA Bronze Member

Establishing good relationships with customers depends on quality interactions, involving unique and easy-to-use systems and processes. The reverse logistics cycle is a key touchpoint for customers—a foundational process that provides opportunities to influence and improve customer loyalty. Providing a winning customer experience is more challenging when the customer cannot return the product and get a refund quickly. When a return material authorization (RMA) needs to be created and approved, it can delay the customer’s refund payment, causing dissatisfaction.

 

Done right, the reverse logistics process increases asset utilization, creates a more positive customer experience, and improves environmental sustainability. A sound reverse logistics process should:

  • Provide end-to-end data integration and visibility
  • Improve the recovery rate of material after RMA booking
  • Create a global footprint for reverse supply chain
  • Provide better operational ownership and accountability
  • Consolidate vendors to provide cost-effective recycling
  • Reduce brand protection and gray market risks
  • Maximize reuse opportunities, both internal and external
  • Optimize asset recovery and reduce potential leakage
  • Improve process efficiency and problem resolution
  • Support a sustainable and circular process

The PRIDE Industries Approach

In implementing our reverse logistics transformation charter, we took a long-term, multiphase approach. The initial phase laid the foundation for an end-to-end vision and delivered a globally consistent, scalable, and reliable process with connected system(s) for inbound logistics, receiving/disposition, inventory management, and value recovery of returned products. The benefits of the initial phase included enhanced customer experience with real-time supplier integration, streamlined end-to-end processes for increased efficiency, and the ability to support aggressive time-to-market strategies by leveraging existing business-to-business (B2B) interfaces, resulting in a reduced total cost of ownership.

 

Our transformation charter focuses on the following issues:

  • Sustainability: engaging, supporting, and promoting the circular economy;
  • Cost: providing an effective solution, regardless of volume;
  • System integration capability/flexibility: integrating multiple technologies through flexible architectures; and
  • Process capability: scaling to changing business needs and maintaining high levels of process efficiency.

Reverse Logistics Components

In our experience, these are the areas to take into consideration when developing a reverse supply chain.

infographic displaying reverse supply chain to enhance customer experience

INBOUND LOGISTICS, SCREENING, AND TESTING

Managing product returns in transit to receiving locations is critical, which is why we paid particular attention to the material recovery rate when we were revamping our reverse logistics processes. At the time, the recovery rate was much lower after RMA booking. After conducting an analysis, we discovered that customers sometimes needed material return prompts, and that some customers required more assistance during the return process—identifying the return location, and printing the label, for example.

 

To solve this problem, we decided to create proactive asset recovery capabilities to help with customer returns. The goal was better customer connection. better records maintenance, and better tracking of each touchpoint with the customer. We needed a tool that would assign open RMAs to agents, build contact lists, keep track of customer touchpoints, and facilitate conversations with customers, thus improving visibility to all. We evaluated multiple vendors’ tools, but few addressed the requirements, and none did so completely. For this reason, we decided to create the tool ourselves.

 

Though this required additional effort on our part, ultimately this decision paid off. By developing a tool tailored to our needs, product return rates rose dramatically, and we recovered more products. And by making returns easier, we increased customer satisfaction and reduced gray market risks, thus enhancing our brand protection.

RECEIVING AND DISPOSITION

The primary objective of our new process is to preserve as much of a product’s functional value as possible, instead of driving the product to its lowest use—scrap. Process analysis steps include identifying the best scenarios for extending product life and then implementing the systems that will enable the collection, sorting, and channeling of products for best and highest use. There are numerous combinations of these properties taken into consideration before the final disposition sub-inventory is decided.

ORDER INVENTORY AND MANAGEMENT

The next component is the management of inventory of damaged goods (DGI)/ finished goods (FGI) and the purge/scrap process. At PRIDE Industries, partner interactions are built on industry standard B2B messaging to facilitate receiving, disposition, inventory, and order management. By improving our designs and processes, we were able to minimize messaging issues, so that the PRIDE Industries Enterprise Resource Planning (ERP) system and our partners’ warehouse management systems (WMS) are now in sync at all times. To ensure further process integrity, offline interfaces are designed to compare and sync inventory in both systems, thus minimizing issues in the follow-on processes.

 

A big challenge for recovering value through reverse supply chain channels is product mix. Both the traditional difficulty in forecasting customer demand, and the complexity of extreme supply chain volatility, are amplified in a high product-configurability environment. This makes larger inventory holds necessary. To address this challenge, we created a maximum inventory product mix management solution, with the goal of maximizing the number of customers that can be satisfied while minimizing the inventory we hold. Our management tool does this by setting a maximum inventory holding level for each product, calculated by taking the difference between forecasted supply and demand based on historical data, and adding a safety stock level over a given planning cycle. Anything in excess of the maximum level is recycled rather than received into inventory, allowing the supply chain to operate as close to run rate as possible. By implementing such a solution in the reverse supply chain, we achieve maximum value while controlling overall operating costs.

 

By making changes in this process family, we increased end-to-end data visibility and product reuse opportunities, while carrying only the required level of inventory in the warehouse.

ORDER FULFILLMENT AND ORDER MANAGEMENT

  • This process is for internal order fulfillment from the returned product inventory. Stock rotation is one of the reasons for product returns in this process family, and the most significant by volume. In this return scenario, the product returned is brand new, sealed, and can be deployed or reused without going through any pre-packing testing. To capitalize on this, we built a software tool that allows users to request inventory from returned materials. Internal customers place their request through the online form, and a complex set of rules allocates inventory to match demand. Improving the recovery rate significantly, which in turn reduces gray market and brand protection risks.
  • Providing customer savings by redeploying products after return, thus turning a cost center into a revenue generator.
  • Boosting process efficiency and reducing transaction costs.
  • Enhancing the process for product reuse, which in turn provides consistent cost-avoidance opportunities, whether selling on the secondary market or re-using internally.
  • Dramatically improving customer satisfaction ratings.

Reverse Logistics That Enhance the Customer Experience

Using the traditional forward channel to drive and control the returns stream is no longer a sound approach. To lower costs, returns should be prioritized in the existing value stream. As more companies strive for a holistic shopping experience, enterprises should focus on supplying the critical data that returns provide. This information can improve the manufacturing, sales, and distribution processes that are so critical to a company’s overall success.

 

The more technical the product, the more critical the information provided—and in some cases the more challenging. The use of IT and the solutions that it offers are essential in supporting the reverse supply chain.

 

Reverse logistics provides an incredible opportunity to improve your relationship with your customers by developing brand loyalty. Even though the customer has very little to do with operational activities like receiving, repair, screening, inventory management, and fulfillment, how you handle the RL process will affect how the customer views your service and directly impact your bottom line.

PRIDE Industries is the nation’s leading employer of people with disabilities. When the organization started in 1966, its employees focused on making crafts for sale. Today, PRIDE Industries is a social enterprise with multiple lines of business, including manufacturing (medical, electronics, and consumer goods), packaging and shipping services, and global distribution operations. As part of a company-wide effort to improve sustainability, its manufacturing team recently set a goal of increasing material reuse and recycling.

This article appeared in Reverse Logistics magazine’s September 2021 issue.

About Bob Anderson
PRIDE Industries, Business Development Executive

Bob has more than 20 years of high-tech industry experience in reverse logistics, manufacturing planning, and supply chain management. Over the last 15 years, he has led the transformation of reverse supply chains at Cisco, Barnes & Noble, and Teleplan International. Bob is an expert in the development and execution of efficiency programs, especially in the management of supply chains. He has deep experience in supplier and inventory management, purchasing, logistics, quality assurance, product management, and training. A strong believer in the power of teamwork, Bob has used the leadership skills he honed on the basketball court to successfully build and lead transformation teams in several companies.

Ready to take your supply and logistics processes to the next level?

Partner with PRIDE Industries to streamline your operations, drive customer satisfaction, and improve your bottom line.
Learn More

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People in blue uniforms and gloves working on electronics parts
Case Study:

HP Inc.

A 20+ Year Partnership: HP Inc. and PRIDE Industries

In 1998, PRIDE Industries began sorting and packaging computer related products for HP Inc. Then, in 2003, we were selected to provide additional services for HP Inc.’s commercial and personal printers, spare parts, and related devices.

Situation

Having relocated the bulk of its operations to Kentucky, HP sought a partner that could handle procurement and planning as well as purchase order management, packing, and shipping for its printer parts and components—while saving HP money and helping them meet their Diversity, Equity, and Inclusion (DEI) goals.

Solution

PRIDE Industries had, since 1998, earned HP’s trust through the sorting and recycling services we provided for their products. Then, in 2003, when HP selected us through a competitive bid process, we began providing supply chain management and global fulfillment services for their commercial and personal printers. Not only did our procurement and planning teams manage supplier relationships and the bulk of supply-chain links for this project, we also created a unique, proprietary system that acts as an interface between HP’s and PRIDE Industries’ Enterprise Resource Planning Systems (ERPs).

PRIDE Industries’ procurement team manages supplier relationships, including purchase order management, delivery performance, and escalations. Additionally, PRIDE Industries’ planning team performs forecasting/demand planning, creates material purchasing requests, manages part setup and maintenance, carries out lifecycle planning activities, implements part-roll tasks, and provides overall operational project management support. The HP Inc. program at PRIDE Industries is a global, 24-hour operation. Our team of supply chain planners, buyers, and business support assistants focus on striking the optimal balance between supply chain inventory levels and high customer level-of-fill targets.

After demonstrating business excellence to HP, we acquired two more HP Inc. business segments:

  • Spare Part Fulfillment program to support HP Inc. Print business acquisition
  • PRIDE Industries is the sole HP Inc. North America regional distribution center for their printing and copier spare parts needs.
  • PRIDE Industries manages the spare parts return program via the HP iReturns system and cross-docking activities.


“This partnership has been great for furthering our mission to create jobs for people with disabilities,” says HP Program Manager for PRIDE Industries Ralph Mendez.

Services Provided

  • 267,000 square feet of dedicated warehouse space for the program
  • Technical expertise for forward/reverse logistics and supply chain management
  • Systematic interface/infrastructure
  • Proactive management

Results

  • PRIDE Industries was named Global Service Supplier of the Year for HP Inc.
  • > 37K active part numbers (SKUs) managed
  • 43.5K average monthly units shipped
  • 800 average orders per day
  • 1,311 average sales order lines per day
  • 98% same day shipping
  • 93% level-of-fill requirement met
  • $32.1M HP-consigned inventory managed
  • 30 weeks of supply (including end-of-life)
  • 60% cost savings from consolidation as a percentage of consolidation activity
  • 16% cost savings from consolidation as a percentage of HP/PRIDE Industries logistics spend
  • > 200 kits managed
  • 221 average monthly kits built per day
  • 99% on-time shipments
  • 6-7 weeks of PRIDE Industries-owned inventory

Awards

  • PRIDE Industries was named Global Service Supplier of the Year for HP Inc.
HP Logo

Highlights

By the end of July 2021, the Lincoln, Calif. facility employed 52 staff, nearly a quarter of whom have a disclosed disability.

43,500

average monthly units shipped in FY20

267K sq. ft.

of dedicated warehouse space

$32.1M

HP-consigned inventory managed

"PRIDE Industries is a proactive partner who exceeds their performance targets. I’m in love with the mission and in love with their performance."

Director, HP Inc. Americas Service Supply Chain

Learn more about our services

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Amazon logo seen at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams.
Case Study:

Amazon.com

Amazon Chooses PRIDE Industries as the First to Join its Alternative Workforce Supplier Program

Amazon.com delivers almost a million packages to people’s front doorsteps every day and is known for its fast delivery. Achieving this quick turnaround requires hundreds of dedicated and motivated employees to sort and pack items accurately, making staffing a crucial function for the company.

Situation

As part of its commitment to diversity, equity, and inclusion (DEI), Amazon launched the Alternative Workforce Supplier Program (AWSP) in 2016. This innovative staffing initiative is tailored to meet the needs of individuals who have traditionally faced obstacles to entering and advancing in the workplace.

To meet its ambitious DEI goals, Amazon sought organizations in each geographical market who had expertise in recruiting, assessing, and supporting people with disabilities. More importantly, they needed companies with a track record of filling roles in a high-volume environment like Amazon’s.

Solution

  • Amazon chose PRIDE Industries as its first nonprofit agency (NPA) to quickly scale its diversity, equity, and inclusion initiative – the Alternative Workforce Supplier Program.
  • PRIDE Industries was chosen for our decades of experience and longstanding relationship with the California Department of Rehabilitation (DOR).
  • As an AbilityOne®provider, PRIDE Industries hires, trains, and continuously supports employees who have significant disabilities.
  • We developed assessments, job counseling, and job simulations at a mock warehouse for screening candidates.
  • We created a specialized team of Job Coaches and Employment Relationship Coordinators who were responsible for training, coaching, and supporting over 300 new team members, 90% of whom had a disclosed disability.
  • Given our results, the initial contract was expanded to include 12 Amazon PRIME Now sites.
  • When Amazon eventually chose to bring its AWS program in-house, they adopted PRIDE Industries training methods developed for their warehouses.

Services Provided

  • Interviews of candidates referred by local partners
  • Assessment of candidate skills and interests
  • Help with the coordination of employee transportation to job sites
  • Reviews of employment soft skills, such as punctuality and communication
  • Employee training for jobs such as Associate, Yard Hostler, and Water Spider, for both Sortation and PRIME Now warehouses

Results

Through its partnership with PRIDE Industries, Amazon.com was able to make a positive social impact without sacrificing business excellence:

  • Amazon achieved its goal of increasing diversity, equity, and inclusion in its workforce.
  • Hundreds of individuals with disabilities were successfully employed and received continuous on-the-job support.
  • The productivity level of employees with disabilities consistently met or exceeded average site productivity levels.
  • Because PRIDE Industries exceeded its contract requirements, Amazon asked PRIDE Industries to extend its services beyond California into two additional sites in Nevada.

“PRIDE Industries has been a fantastic partner in helping Amazon hire people with disabilities. We are excited to hire more talented individuals from diverse backgrounds, and our partnership with PRIDE Industries helped us expand this goal.”

— Ilia Movchan, Amazon Program Manager
Amazon logo

Highlights

304

people with disabilities placed

Contract expansion​

to 12 Amazon PRIME Now sites

Sites served

California & Nevada

“PRIDE Industries has been a fantastic partner in helping Amazon hire people with disabilities. We are excited to hire more talented individuals from diverse backgrounds, and our partnership with PRIDE Industries helped us expand this goal.”

— Ilia Movchan, Amazon Program Manager

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