Dust Identity, a firm that wants to use miniscule fragments of diamonds to attach tracking codes to parts, has raised additional funding, reports Fortune. The diamond fragments would make it possible to track the parts through the supply chain. 

Read the article on Fortune

Anvyl, a hub for brands to manage their supply chains, has raised another $9 million dollars to continue their expansion into the supply chain management market. 

Read the article on Ally Watch

The jewelry industry remains one of the last places to see innovation in the supply chain, reports Digital Supply Chain. Supplies still pass along the supply chain using processes from 100 years ago, however slowly technology has begun to creep in. 

Read the article on Digital Supply Chain

Retailers and manufacturers need to work together to give customers what they want, reports Open Access Government. That means using technology and efficiencies in the supply chain to speed up everything from the delivery of an item to its creation. 

Read the article on Open Access Government

On July 6, 2018 after months of threats, the United States began to collect a 25% tariff on $34 billion worth of imported Chinese goods. Today, that number has reached $250 billion with the US-China Trade War showing no sign of being resolved in the near future.

When the tariffs were announced, American businesses didn’t race to pull their sourced imports from China opting instead to see if a resolution would be quickly reached. With so many corporations deeply routed in China it would cost them millions of dollars to move their production elsewhere, essentially destroying the Chinese business relationships that they’ve built up over the years.

Over a year later – it’s become a different story as both American and foreign-based companies are pulling their production teams out of China and moving them elsewhere. “People are not waiting, companies are not waiting to see what the outcome is,” Larry Fink, BlackRock Chairman and CEO discussed on CNBC’s Squawk Box.  Nintendo, Apple, and Dell have already made the decision to move a percentage of their production out of China with many other business following suite.

United States President Donald Trump had initially urged these companies to bring their production back to the United States - creating thousands of jobs for the American people. Instead, companies are looking elsewhere to countries like Vietnam, India, and Mexico to meet their production needs. “We have been shifting production to Vietnam very aggressively,” CEO of Lovesac Co. Shawn Nelson told The Wall Street Journal. He told the newspaper that by the end of next year he plans to have no production in China.

A recent poll conducted by law firm Baker McKenzie found that 82% of companies around the world say they are transforming their production and supply chain due to the trade war. Approximately 18% of these companies are moving their entire business away from China. Another 58% are moving a percentage elsewhere while keeping a majority of their production in China – a move that will essentially altering the supply chain industry.

Regardless of the outcome of the US-China Trade War, China is in a tight predicament that has already seen a steep decline in monetary growth. After announcing that China’s growth was down, spokesman Mao Shengyong from China’s National Bureau of Statistics stated, “Economic conditions are still severe both at home and abroad, the global economic growth is slowing down…” He goes on to say,  “…the economy is under new downward pressure.” As more companies exit the country that downward pressure is only set to increase.

As of June 29,^, 2019, trade negotiations were set to resume between both countries. At the time of publishing, the trade war is ongoing. Even if the war were to end tomorrow many companies have already begun moving their production out of China- a time consuming and costly endeavor. Chances are they would not spend additional money moving their production back to China once the two nations resolve the issue. China is not the only country to be effected by the war. China has hit the United States with tariffs of their own to the tune of $110 billion.

To progress in any industry, hands-on experience is vital; it’s not just about knowing the theory, it’s also about doing it in practice. The discussion of whether experience or a degree is more important has been ongoing for a number of years - and we often see experience coming out on top in terms of what employers are looking for.

In order to continuously keep learning, Debbie has placed an emphasis on networking throughout her career. She says: 

“Looking at the bigger picture is vital in order to keep on moving through the ranks in the supply chain sector. Not only does networking with other people in the industry open your eyes to other opportunities that are out there, it also helps you meet people who may currently - or soon will be - hiring for a new role and if they’re not - they could even introduce you to another employer that is.”

Keep an up to date calendar of upcoming conferences and events in the industry to attend and look for opportunities to speak at these events too. Not only will you be able to deepen your knowledge by hearing from other people, but people will also start to recognise you. 

 

“Don’t underestimate the power of networking online too. The internet is full of opportunities to deepen your experience without leaving your laptop; whether that’s creating a blog, interacting with other people in the supply chain sector on LinkedIn or contributing tips-led articles to industry publications. Better yet, if you know the area you want to hone in on in your career, keep this the focus of your online networking activity.”

How can you gain more responsibility?

In order to move up through the ranks, employees in every industry need to seek and gain more responsibility in their role - and the same goes for the supply chain sector. 

 

“As we all know, the supply chain is broad. From supply chain design and planning, to inventory management and control, what does the ‘top’ look like for you in the position you aspire to be in? Once you know this, and you’ve decided what your ‘dream role’ is, you can start to move towards translating this directly to your personal career path in order to get there.” 

 

“To get to the next step of my career, I knew I needed project management skills, so I worked out the next position I needed to be in so that I could get these skills under my belt - and I was open with my leadership team about my ambitions to get there. If the leaders within your company aren’t aware of your ambitions or where you want to grow your skills set, you can’t expect these responsibilities and opportunities to be handed to you.” 

Seeking responsibility and being open with your line manager does require confidence; for many of us, speaking up about not only our career goals but our personal goals too, is a big step outside of our comfort zones. Keep a lookout for confidence focussed workshops, or seek a mentor to support you through these difficult conversations so you’re able to aim high and achieve big. 

Is there non-linear career movements you could be going after?

Often, a step up in a career could start with a sideways move. Debbie explains:

“A sideways move could look like moving to a different position but staying in your current company, or moving to a new company but keeping a similar job title, salary or even responsibilities. What makes it a lateral move is that the new position could give you an array of new skills you need to make that step up, or the new organisation could be far more profitable or in line with your career aspirations.”

Within the supply chain sector, there’s no doubt that the more education and experience you have, as well as how up to date with industry changes and progression you are, the more you’ll be able to reap the rewards in the long run. 

For anyone at a crossroads in their career path in the supply chain sector, or wanting to achieve their long-standing ambitions and make the life and career they’ve always wanted, mapping out a clear career plan is a great place to start. Your career ladder can and will look different to other people’s, so don’t rule out lateral moves and the top could be closer than it appears. 

---

Debbie Lentz joined Electrocomponents plc, a global multi-channel provider of industrial and electronic products and solutions, as the President of Global Supply Chain in 2017. Debbie is responsible for leading the further development of the Group’s supply chain capability to provide an innovative and sustainable market-leading service for customers and suppliers. 

RS Components is a trading brand of Electrocomponents plc,

With the rising globalization of different operations from manufacturing all the way to warehousing, having a network of procurement which is capable of supporting and reacting to the needs of the supply chain is a challenge. In fact, many procurement professionals believe that selecting a supplier who is capable of providing manufacturing locations consistently and offering a reliable service is a challenge. Effective management of the supply chain enables businesses to track products and raw materials required for the manufacture of their products. It also enhances optimization of inventory levels and reduces costs which in the process lead to synchronized supply and demand.  

Visibility is an important thing in the supply chain. A properly managed supply chain enables companies to maintain the highest possible visibility to ensure that materials are available and are delivered to the customers. An effective supply chain enhances efficiency and helps businesses eliminate halts in production as it identifies areas which an enterprise relies on a single supplier.

Effective supply chain management provides businesses especially the manufacturers of different products with a competitive edge. However, there are various issues and challenges in supply chain management mainly in today’s business landscape. Here are three issues to consider within your own supply chain.

1. Globalization

Globalization introduces various supply chain challenges to businesses and companies. First, as a way of seeking to reduce costs in the supply chain, companies are moving to nations which offer lower costs, taxes, and transportation of raw materials. Such outsourcing practices in some instances may involve more than one country in different regions. However having suppliers of different products or materials from different regions and geographic locations can also lead to complications in the supply chain. Companies have to deal with issues of collaboration and coordination across borders. Storage and logistics issues may also arise making the entire process even more painful. Furthermore, companies have to ensure and maintain fast delivery lead times to their customers who no matter the circumstances want to receive their products on time.

2. Fast changing markets

The changes in technology and globalization have affected personal, cultural, social and psychological factors of consumers. Changing consumer markets also have an impact on supply chain management as it introduces new customer dimensions. First, the product life cycle is reduced significantly due to changing customer demands. Businesses are forced to keep up with the new market trends and continuously innovate by introducing new products that meet the needs of consumers. Due to this, there is also a demand for flexible supply chain which can accommodate changes in the manufacturing of new products as required by the customers.

Changing markets also demand that the enterprises update features of their products constantly. Doing so requires them to redesign their supply chain to accommodate these changes. Such market changes also make forecasting of product demands difficult. However, the changing demands in the market make it necessary to continuously study the market and develop new products.

3. Quality and compliance

The rise of social media apart from the influence it has on consumer behavior also makes it compulsory for companies to develop high-quality products. Consequently, rising consumer expectations have increased the rates of product recalls. This means that the supply chain must be able to respond to these challenges accordingly. Companies are under pressure to create high-quality products consistently and this can only be achieved by addressing various aspects of the supply chain which include quality of supply of raw materials, procurement process of raw materials, manufacturing processes, packaging, and transport/logistics all the way to the handling of the product.

The quality of products also largely depends on the company’s compliance. As such, companies need to make sure that both local and international regulatory standards are met. Supply chain aspects such as product manufacture, packaging, and logistics should pass quality control and safety checks. All these aspects are not easy to conform to in most instances and some of them end up making supply chain management costly.

You’re familiar with GPS as it is being used for different navigation purposes. It has made its place in many industrial sectors. Another revolution the GPS tracking system has brought is food safety. Food safety is a global concern. People across the world do care pretty much about whether the food they’re eating is healthy or not. But is it possible? With GPS attached to your poultry, you can find out about the production of the food presented to you. A complete historical record of the product can be available to you.

Hot it works

The idea may sound absurd to you, but it's not. For example, you can track the chicken you have on your plate through this technology to make sure it had been bred on organic feed. This way you can make sure you're eating a healthy product. The supply chain from the farm to your table is quite interesting. The tracker is attached when your food while it’s on the farm. Whether it's attached to the leg of a chicken or a berry plant, you will know the complete process it undergoes before reaching your table. You can know every step your chicken took and the food it ate. The process can provide a complete record of the product's past to you reducing the possibility of fraud and mishandling.

Why you want this

In addition to customer satisfaction, producers are looking at GPS tracking to minimize the chances of exploitation of a company’s reputation. GPS tracking can deliver the complete historical data of how the food got to the fork from the farm. It has revolutionized the way we look at food. It can work for your company's good in the following ways.

• GPS tracking can provide real-time data which is trustworthy. By providing the data, the supplier gains visibility and control, optimizing your supply chain.
• Enables traceability
• Increase trust among buyers and customers.
• It can help to reduce the chances of rumors because of the complete record

Many companies and restaurants have officially adopted GPS tracking for food production and to validate a trustworthy supply chain. It can pinpoint the farm in which the ingredients were produced and provide you the complete information and history to make sure accurate information is recorded. Companies embracing this technology created a buzz and attracted many customers.

Issues

Technology works to reduce the risks around us. The agricultural sector can reduce concerns about food safety through GPS tracking. With the reduced price of GPS tags more products are being tagged making traceability easier and improving supply chain visibility.

Amazon has been quietly gearing up to make a play in the “last-mile” delivery space. Previously, the e-commerce giant relied heavily on the United States Postal Service (USPS), United Parcel Service (UPS), and FedEx for delivery.  As their needs grow, Amazon has begun to test the waters as to what local delivery would mean for the company. So much so that they have recently announced that they will be hiring Amazon Delivery Service Partners (DSP) to meet their demands.

The DSP program would give people a pathway to create their own delivery business complete with a fleet of 20-40 Amazon logoed vans; management training; health benefits; and no experience necessary. For a $10 thousand (and $30 thousand in liquid assets), owners can expect annual revenue potential between $1 million and $4.5 million and an annual profit that ranges from $75 to $300 thousand per year. This deal would enable Amazon to compete with the likes of UPS, FedEx, and local services in the last-mile delivery space.

This opportunity is not for the faint of heart. It may be easy for someone with access to the start-up fees to jump at a chance to own their own business. Keep in mind that with every business venture, there is risk and reward. Do the positives outweigh the negatives? That’s up to you to decide!

Now for the positives. It’s great for people who want to become a business owner without having to deal with the logistics of starting out. According to the Small Business Association; 30% of businesses fail within the first two years while 50% fail within the first five. Yahoo Finance states that most small businesses fail because of poor planning in Jessy Bains article; Why so many small businesses fail — and how it can be avoided. John Rampton notes that most organizations fail because they underestimate the financial burden a company can be in his article; Starting Your Business: The Tools, Resources and Mindset You Need to Succeed. What makes Amazon’s DSP program succeed is that they account for the road blocks that beginning entrepreneurs may face when starting a business. Amazon’s program tries to alleviate some of these pressures by offering training, resources, and support including a three week training; exclusive discounts; and legal support. Owners will also get access to a fleet of 20-40 Amazon logo-ed vans to fulfill their deliveries.

Now for the bad. Amazon may give you the tools you need to thrive, but it’s up to you to actually succeed. It is up to the owner to hire and train their staff, learn about benefits and finances, and manage a growing company. Unfortunately, there’s no guarantee that you’ll excel even with Amazon’s help. It takes grit and persistence that some owners may not have.

This opportunity won’t come easy, and every owner needs to decide for him or herself if the positives outweigh the negatives. If you have the determination to succeed and learn about different aspects of owning a business but just need a little help; Amazon’s Delivery Service Partners program may be the right for you. If you are nervous about the commitment both financial and responsibility; this opportunity may not be the correct fit. At the end of the day it’s important that you do your research and are honest with what you’re capable of.

Does this opportunity sound appealing? Are you a veteran? Amazon has committed to $1 million to help military veterans succeed by offering $10,000 reimbursement for those that qualify.

It was the break up heard all over the Supply Chain community. FedEx Express and Amazon have officially called it quits when it comes to U.S. domestic deliveries. The news was confirmed when FedEx decided not to renew their express shipping service contract with the e-commerce giant which is set to expire on June 30th. Amazon responded by diplomatically explaining to The Verge, ““We respect FedEx’s decision and thank them for their role serving Amazon customers over the years.” Express shipping tends to be the fastest way a package gets from point A to point B. Examples of express shipping includes same day, overnight, and next day shipping.

FedEx cited the rising demand in the e-commerce market as one of the main reasons they have ceased their express shipping relationship with Amazon. In a statement the organization said, "There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026.” They went on to proclaim, “FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it."  Amazon might have been the first e-commerce company to offer free two-day shipping, but as of today they are not the only one. With numerous businesses such as Walmart encroaching on their territory, consumers now have a choice on where to buy their last-minute purchases.

But what does that mean for Amazon and FedEx? Who will pick up FedEx’s slack when it comes to express shipping? Analysts are torn as to whether or not this will be a strategic move on FedEx’s part or will cause their stocks to plummet. Morgan Stanley analyst Ravi Shanker believes while it will be a smart long-term decision for FedEx, they will feel the pain for the next few years. FedEx won’t be going down without a fight. They recently introduced “FedEx Extra Hours”, a way for consumers to get their packages until 2 AM, the next day, or in two days- just like Amazon Prime.

With the new vacancy in Amazon’s supply chain, it’s anyone’s guess as to who will take over FedEx Express’ routes.  Will Amazon look to UPS who already handles a portion of their deliveries or turn to the United States Postal Service to pick up the slack. One thing is for sure- FedEx’s decision to end their relationship with Amazon is a pivotal moment in the history of supply chain and logistics. It will essentially begin a battle for the leader in supply chain and logistics. It could also solidify Amazon’s decision to control all aspects of their supply chain whether that means building warehouses to hold their products to the last-mile delivery. In fact, Amazon has already showed signs of this. In an ad located on their website, Amazon is looking for Amazon Delivery Service Partners to “deliver smiles to customers across the company” – a clear indication that UPS and USPS might be in trouble.

Delivering their own goods and services is not the end goal. Amazon has expressed interest in delivering third party goods and products, becoming more of a threat to the already established delivery companies. It’s hard to say which delivery company who will come out on top, but as of now it’s anyone’s game.

For decades, the logistics industry has been lagging behind in the adoption of technology in service provision. However, this has changed significantly over the past few years as a result of the increased adoption of various technologies most of which are aimed at increasing competitiveness and enhancing the provision of services.

For instance, the increasing demand for use of drones and unmanned aerial vehicles and software packages for faster delivery of goods are among the latest additions to the logistics industry which have shaped the landscape for the better.

Although this adoption is gathering momentum, it is expected to drive the logistics market in the coming days. The increasing demand for analytical solutions which are industry-specific is expected to raise the demand for drones in the logistics industry.

Owing to the changing landscape in the logistics sector in favor of drones and competition on fast and efficient delivery, there have been more and more companies looking for this technology to help with logistics. Amazon, for example, is the leader and the most known example of such companies. However, Amazon is only one out of hundreds of companies in many sectors which are now using this technology to ease the delivery of products or items to their customers.

Taking this into account, it is clear that drones will play a crucial role in the logistics sector in the future. While Amazon has been experimenting with delivery with drones in some areas in the US, Alphabet-owned Wing, a drone delivery firm, expects to follow suit in Canberra, Australia after receiving approval from Australia’s Aviation Authority. Wing intends to deliver items for people in about 100 homes in various neighborhoods such as Franklin, Crace, and Palmerston. With this service slowly entering the city of Canberra, you are likely to see more drone deliveries in the future.

The partnership between Wing and local businesses such as pharmacies, local groceries, and coffee shops among others will see many residents receiving basic commodities such as coffee, medication, and groceries at the comfort of their homes with the help of drones. These products will be delivered within a short time reducing cost and time which could have been wasted traveling to your local store. Adoption of drones in product delivery from the store to the end consumer allows you to order a product online through the store’s e-commerce website and a drone would be dispatched to your residence or home within the shortest possible time.

Although the main thing that comes to mind of almost everyone when drones are mentioned is delivery, another area which is viable for this technology in the logistics sector is inventory management. Although this requires larger, heavier duty drones, the future of this technology in inventory management seems bright. These drones could be used to move luggage between different warehouses, items from one store to the other, and balance inventory levels without using trucks. Since retailers have always faced challenges regarding returns and claims, drones can be used to tackle these issues in the logistics sector. For example, a retailer may use a drone to send damaged freight back to the manufacturer. It can also be dispatched to the home of the consumer to replace and pick up a defective product.

Judging by the effectiveness shown by drones in the logistics sector and its increasing adoption by different companies in operations, it is evident that they are soon going to become a much bigger part of logistics. The key benefits of using drones in this sector are that they will help to reduce levels of congestion in our roads and provide a speedy way of serving the consumers. However, the main concern that still slows the adoption of unmanned aerial vehicles is legislation.

When my husband and I lived in the city we were pretty lucky in that only a few of our packages ever got stolen from our front door steps. It helped that our front door had a little nook that drivers could discretely tuck our packages into, hiding them away from thieves (or porch pirates as they’re commonly referred to) in our neighborhood. My neighbors though weren’t so lucky as many of them saw their packages mysteriously disappear.

Stolen packages aren’t just an issue in my city- it’s a nuisance that happens around the world. A driver delivers a parcel on a doorstep, but before the recipient can claim it, a porch pirate intercepts it - leaving the owner angry, frustrated, and confused.

The number of packages getting stolen is rising – a 2017 survey by Package Guard claims that 11 million people had their packages stolen within the 2016-2017 year. A majority of those packages (74%) were stolen during the day when many people were at work and were unable to accept the deliveries. The “last mile” delivery of any package is always the most vulnerable. Up until that point the shipping company has the item in their possession. Once it gets placed on the doorstep and left unattended- anything can happen.

In the past few years Amazon has set out to change that. In 2017, they announced Amazon Lockers. Amazon Prime members get their items shipped to a public location such as a grocery store or a gas station. The items are stowed away in a locker and the only way someone can get that item is if they have the combination. The customer simply keys in their unique access code and retrieve their package. 

This isn’t the only way that Amazon is attempting to ensure that all of their packages make the last mile of their journey safely. They’ve also introduced a program called Amazon Key Services that they’ve rolled out in numerous states and cities which aims at making it harder for porch pirates to win. In the past few years they have experimented with the idea of drivers leaving items in the trunk of a person’s car or even in their house. Results have been success. Expanding this service, Amazon recently announced that they will start leaving packages in owner’s garages in participating states and cities. Amazon Prime members with a myQ-compatible garage door opener from Chamberlain or LiftMaster are eligible for this service. The service does come with a fee and can cost participants around $400 after they purchase an Amazon Prime subscription ($119), the garage door opener ($50-80), and the Amazon Cloud Cam ($125-$200) to monitor one’s garage. While this is a steep price to pay- homeowners may find that purchasing this equipment is worth the peace of mind.

With so many ways for drivers to ensure packages get to their destination safely, Amazon is proving that the last mile of any package’s journey doesn’t have to be uncertain. By choosing to ship your items to a public locker or using Amazon Key Services, members can rest assured that their items will get to them safe and sound.

Transacting business in the supply chain generally means communicating orders via EDI formatted files or some other equally rigid set of rules. The reasons are easy to understand; order times are critical and specifications for orders are complex so their formats need to adhere to formats that can be instantly read by computerized systems.

EDI requirements may be rigid but they change frequently so there’s some reason to believe that there is in fact, flexibility within the order process. But getting the details wrong causes errors and costs money. How will this tight connection fare in the age of what’s called ‘Industry 4.0’ as new technologies are brought into the mix? Is it possible that the long-standing EDI format will be replaced by directly connected machines (IoT) that avoid the details of creating and processing orders? Or will the deeply embedded format keep business at a slower pace than might be possible if things changed?

Industry 4.0

Internet of Things (IoT) is impacting manufacturing, shipping, warehousing, delivery, and even customer support by adding smart devices to things that have traditionally been, well… dumb. Dumb in the sense that they don’t communicate or have any way to sense their surroundings. That’s changing rapidly as we approach the widely touted 50 billion IoT devices expected to populate the earth by 2020. Whether any particular company wants to move toward these automated pipelines is as moot as those who declared they were not abiding by Walmart’s demand to implement EDI years ago.

Manufacturing facilities around the globe are adding smarts to their machinery or replacing old machines with newer and smarter ones that can go beyond the basics of their intended functions. They are attached wirelessly directly to their company’s management and ERP systems and communicate their current status. They take instructions about manufacturing conditions to adjust their speed and can even sense variations in the materials they work with and adjust their actions to create products that meet required specifications.

The data passed between those machines and the systems that control them amount to magnitudes of data that never existed meaning that traditional manufacturing facilities that operated manually and on a completely analog basis are becoming digital factories. The data itself presents both issues and opportunities for every point along the supply chain because it’s now possible for the end customer to be aware of the status of the product they expect to purchase, and for the manufacturing machine to know how many units it needs to build to meet demand.

Flexibility stretched

Every participant in the supply chain is being armed with more data than they have ever encountered. Their first challenge is to collect and store it; in itself a mundane IT task of managing storage and connectivity. But what is done with that accumulated data as it passes along the chain is what will define the next generation manufacturer, transport company, retailer, and even the end customer. Those that devote the time and resources to understanding, then imagining how Supply Chain 4.0 will look.

It’s been a while since Walmart first insisted that its suppliers moved to its digital order process. Back then the prospect of using EDI rather than fax or phone to place orders seemed like a technological hurdle. And in fact it was a significant hurdle that plenty of suppliers bucked against. But today Walmart’s tactics have become accepted and electronic order processing is no longer the pariah it once was. Now the retailer is making another mandate to its suppliers. But this time it’s not about what but where.

Amazon’s Web Services (AWS) has been the go-to supplier of cloud based software deployments and an overwhelming number of companies have put their online software there. It’s easy, reliable, and competitively priced. But now that Amazon is competing directly with Walmart for retail business Walmart doesn’t want the digital guts of its business hosted on a competitor’s site. That’s understandable, and in fact in 2014 the company moved its entire ecommerce presence to the cloud - and not Amazon’s cloud.

Our colleague Steven J. Vaughan-Nichols explains the move and strategy here. 

So where’s the mandate?

It isn’t enough that Walmart hosts its own data away from AWS. The retailer doesn’t want its suppliers hosting its data and the transactions they process on its competitor’s cloud either. The most recent mandate instructs suppliers to move their systems off AWS. They’re apparently fine with alternate cloud vendors like Microsoft Azure who are not direct competitors, but Amazon is a no-no. 

To be clear, the mandate (for now) is directed at tech providers. So product suppliers who host their own systems on AWS may not be affected. But the move may turn out to indirectly impact product suppliers if their EDI service providers host their applications and data on AWS.

The ripple effect

Amazon has done a great job of delivering cloud computing facilities that make it easy for companies to deploy their software services. In fact it may be the default choice for smaller EDI service providers because they can concentrate on developing their systems and delivering high quality customer support while leaving the heavy lifting of server farms and data centers to Amazon.

If your EDI provider has received a mandate letter from Walmart to shift its cloud hosting services you can bet they are scrambling to meet whatever deadlines are being required. Their revenue is reliant on delivering their customers’ transactions (your transactions) to and from Walmart and every other trading partner you deal with. And because of the depth and breadth of Walmart’s vendor base nearly every EDI service provider has connections to Walmart.

Be proactive

Don’t know if you will be affected? Ask your EDI service provider where their applications are hosted and how they are responding to Walmart’s mandate. Either your provider will need to change or you will need to change your provider if you want to keep your business relationship with Walmart.

 

Moving EDI data around the globe is old hat to most of the folks reading this ec-bp newsletter. Managing the connections and translations can get complex and picky when it comes to the details of the files and the changes that need to be incorporated into translators to make processes flow properly. For most EDI practitioners, their roles are fairly well defined and fit well with established concepts. But as mobile devices take over I think the line between what is EDI and what is associated with end user interaction is changing.

 

EDI is a significant source of big data. Of course that's no shock to anyone dealing with data storage or a VAN bill, but when you consider the volume of transactions and the number or companies involved, it would seem that there is a wealth of data in those transactions. The data now covers (depending on the trading partners) every aspect of the order process, from initial P.O. to final payment, with plenty of status updates along the way. So, what can be learned from all the data? It turns out that when looked at as an aggregate and put through the right analytical processes, there's plenty to be learned - and predicted.

Being able to use the data created by both the supplier and customer to understand the sales cycle can be a great advantage to both companies who are looking to make the most of their resources in an increasingly competitive environment. The addition of CPFR (Cooperative Planning, Forecasting, and Replenishment) can go a long way to maximizing margins and minimizing mistakes.