Category: Industry Insights

  • NEXT Mitigates COVID-19 Challenges Across The Supply Chain

    NEXT Mitigates COVID-19 Challenges Across The Supply Chain

    With the impacts of COVID-19, companies are having to alter their supply chains. At NEXT we are continually taking steps to serve BCOs, steamship lines, terminals, and 3PLs, with flexible solutions that meet the needs of a rapidly shifting landscape.  Over the past few weeks here are some of the ways NEXT has helped mitigate challenges across the supply chain.

    • One of the largest online retailers in America saw a capacity shortage limiting its ability to move goods from distribution centers into local facilities. NEXT met its client’s needs within a day, using NEXT’s hybrid model to coordinate deliveries throughout the U.S.
    • A top 5 U.S. pharmacy has been relying on NEXT to address all of its drayage needs. As a result of partnerships with terminals at the Ports of Los Angeles and Long Beach, NEXT can offer its shippers access to goods three to five days faster than other solution providers, allowing this client to ensure all of the essential products its customers need are available.
    • A multi-billion-dollar 3PL is utilizing NEXT’s yard space to avoid demurrage fees that many shippers face as a result of congestion at the ports. By relying on NEXT’s facility, just a few miles from the Port of Long Beach, this 3PL can ensure its shippers avoid unnecessary charges.

    To help shippers get through the disruptions caused by the coronavirus, NEXT recently published a white paper outlining best practices for logistics planners and professionals. The free report is available here.

  • Best Practices for Moving Essential Goods During COVID19

    Best Practices for Moving Essential Goods During COVID19

    Logistics leaders are being confronted with an unprecedented challenge as a result of the Coronavirus (COVID-19). While pandemics have swept the globe before, the just-in-time nature of many supply chains has led to incredible turmoil.

    The typical rules of supply and demand have been forgotten, as companies race to ensure their essential goods make it to store shelves, and ultimately to consumers.

    We created a resource to help shippers navigate these incredibly complicated times, layering in best practices from many of the world’s most advanced and robust supply chains.

    Among our key findings, learn how forward-thinking shippers are:

    • Changing their approach to sourcing materials and resources
    • Building redundancy across their supply chain
    • Creating new approaches to working with truck drivers

    Eight of the top ten shippers in the US have trusted NEXT with their freight, offering us a unique position to understand what’s happening across the globe.

     

    Download the Full Report Here

     

     

  • LINK2020: The Retail Supply Chain Conference

    LINK2020: The Retail Supply Chain Conference

    NEXT was in attendance for the The Retail Industry Leaders Association (RILA) event in Dallas, Texas. The event attracts a large number of Retail supply chain executives looking for solutions to maximize efficiency and increase ROI.

    For two days, top executives in retail participate in roundtables, panels and network to discover the latest industry trends and insights.

    Some of the best moments from LINK2020 came from keynote speakers such as Nancy Giordano (CEO, Play Big Inc.) who spoke on Navigating the Big Shift in Tech, Society, and Supply Chain. Giordano zeroed in and two key factors:

    • The impact of Gen Z on previous generations of consumer behavior
    • The value of social impact/sustainability in company brand and culture

    Another keynote highlight came from Chip Bergh (CEO, Levi’s) – on Enterprises developing additional revenue streams and growing with changing culture. These presentations we both part of a larger trend in showing how supply chain will be impacted by tech and new societal norms. Bergh highlighted these areas:

    • Gen Z has changed behavior from consumerism to sustainability (profits through principles)
    • Gen Z is requiring companies like LEVI’s to develop additional revenue streams (clothing alterations and subscriptions vs. traditional retail or online shopping)
    • Enterprises are opening internal incubators/innovation labs instead of outsourcing to wholesalers, big tech, etc.

    Given the current news, a hot button issue everyone was discussing is the how the current coronavirus outbreak will continue to affect the global supply chain. Many industry executives are asking how will the outbreak affect consumers and how can the retail and supply chain industry develop a strategy around coronavirus? Only time will tell as to how much impact the outbreak will have on retail heading into spring and peak season.

  • NEXT Hosts Japan America Society

    NEXT Hosts Japan America Society

    NEXT recently had the privilege of hosting members from the Japan America Society of Southern California for an evening of sushi, sake and an insightful panel discussion on Supply Chain Visibility.

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    Moderated by Nancy Hiromoto, VP of N.F. Stroth & Associates — the panelists included experts from different factions of the logistics industry:

    Bobby Napiltonia, Chief Revenue Officer, NEXT Trucking

    Tracy Burdine, Director of Client Services, Yusen Terminals

    Daniel Goldstein, General Manager, Yamamotoyama U.S.A. (Founded in Tokyo in 1690, Yamamotoyama is the oldest tea company.)

     

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    The discussion covered several topics on current issues facing the industry from technology & data integrations NEXT is spearheading, to how these advances are helping port drivers earn more money on the NEXT platform.

    “We have a goal that every trucker can make $1000 a day in our marketplace,” said Napiltonia. “We feel by changing from the bottom up, the truckers that transport goods to folks like yourself will have better experiences in terms of on-time deliveries and without a scratch.”

    Tracy Burdine addressed how the tariff wars are impacting overall changes to terminal business.

    “We saw a 7% drop in volume last year, but more importantly, we saw a shift in peak. Usually our busiest month is January, but last year it was August, which usually isn’t the case. Everyone had to be agile and make sure they were ready to deliver.”

    When asked what is seen as the biggest challenge facing the shipping industry in 2020, Napiltonia pinpointed it directly.

    “Shipping will always face challenges because of weather and other unforeseen circumstances, but the biggest challenge today is change. The industry has not really changed in hundreds of years. At NEXT, we look at it like shipping was in black & white television and we bring a virtual reality and whole new experience. Our biggest challenge is change and acceptance.”

    Burdine agrees and added, “I think everyone is going to make the (digital) transformation, but it’s how well you do it. Do you look at the next steps and just build what was out there last year? Or are you going to move forward with technology and advance yourself to get ahead of the market?”

  • Coronavirus & The Impact On Global Supply Chain

    Coronavirus & The Impact On Global Supply Chain

    The Coronavirus continues to spread quickly, exceeding 20,000 cases and 425 deaths as of February 5, 2020. While the bulk of the outbreak remains in the epicenter of Wuhan, China, there are 159 reported cases in other countries, including the United States.

    The effects of this epidemic are being felt far and wide — from travel & tourism to e-commerce, but the dominoes are now beginning to fall across the global supply chain. Top companies like Apple, Hyundai, Ford, Starbucks, McDonalds and IKEA are reporting factory closures and major disruptions to business. Experts predict that if factory closures extend into mid-February, there will be widespread shortages to all retail industries.

     

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    Apple CEO Tim Cook said on an earnings call Tuesday that Apple had been regularly deep cleaning stores this week and conducted temperature checks on employees to avoid spreading the virus. He added that while sales in a Wuhan store, one of the first to close, were relatively small, he expected the decline in retail traffic and other store closures to negatively impact sales. Sales in China make up about 15% of Apple’s total revenue.

    The New York Times reported today that Hyundai will suspend production in South Korea, due to disruption in parts supply. Other automotive companies announcing closures and delays this week are Ford, Nissan, Toyota and Tesla.

    With a large portion of customers shipping from China, the ramifications from the outbreak could prove to impact business greatly. According to customs data from last month, Chinese imports accounted for roughly 40% of the shipments entering the U.S.

    “Currently we aren’t yet seeing any effect from the virus, however if the issue persists over the next few months or spreads to the rest of China we will definitely see issues,” says NEXT Sr. Manager of Drayage Operations, Jordan Gladstein.

    “It’s something we’ll need to watch closely.”

    Economists however, are already sounding alarm bells. FreightWaves recently interviewed economist Paul Bingham, Director of Transportation Consulting at IHS Markit about the fallout from overall transportation issues.

    “The main problem would be on the land side, the truck drivers and others involved in freight handling within China, moving between cities. When you get into these quarantine situations, that’s clearly where you start to crimp the ability of the supply chain to function.

     

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    Though supply chains can make do with certain stopgap measures for the time being, they cannot really circumvent the gravity of the problem in the long run.

    Shehrina Kamal, Product Director of Risk Monitoring at Resilience360 spoke to FreightWaves about supply chains withstanding the onslaught of problems… for the moment.

    “Just like with the trade war, businesses will be a bit cautious about taking any drastic measures for now. But if the virus outbreak is prolonged over several months, companies might start to look at alternative options.”

    To find out how to best protect yourself, please visit the World Health Organization for the latest updates.

  • Writing The Perfect Supply Chain RFP

    Writing The Perfect Supply Chain RFP

    Every year, logistics and supply chain leaders across the globe survive the holiday season, and then get right back to work.

    An in-depth hindsight process typically marks Q1; shippers look to understand successes and opportunities for improvement, before looking to lower prices and improve their ROI.

    However, not every RFP approach is optimized.

    Many shippers fall into a trap, asking for the same things from a new provider, and failing to really identify the goals of the review. It’s one thing to say, “we want a provider who’s going to hit our SLAs more often.” It’s something entirely different to realize that the incumbent may have been at the mercy of a shipper’s warehousing team, missing deadlines because a warehouse was understaffed.

    It’s also critical to realize that while RFPs can be for two to three years, a supply chain will change dramatically over that time, and ensure that the selected vendor has the flexibility to make the necessary changes.

    Today, we released a paper detailing five questions that help shippers create more impactful RFPs.

    Click here to download the report.

  • White Paper: Three Major Opportunities To Improve Port Efficiency

    White Paper: Three Major Opportunities To Improve Port Efficiency

    Across the US, importers and exporters are at the mercy of terminal and port efficiency. Shippers must rely on parties that are faced with geographical constraints, altering how much freight can be moved through their boundaries. A 2019 Survey found that 81% of supply chain professionals identify the terminals as the chokepoint that creates the most friction in logistics. This is perhaps fueled by the perception that terminals can be compensated for inefficiency (demurrage). But make no mistake, there are massive opportunities for improvement in port efficiency, but success will only be achieved if constituents from across the supply chain work together to solve a wide range of issues. Three major opportunities to improve port efficiency are—

     

    Increasing Transparency Through APIs

    Data sharing has never been a component of traditional terminal and port operations. For far too long, the ports have been stuck using archaic technology and haven’t been able to offer data in effective ways. BCOs could benefit greatly layering in track and trace technology, but the dominant solution, electronic data interchange (EDI), leaves something to be desired. There are more than 2,000 variations of EDI to choose from. Forward-thinking terminals that wish to meet the needs of their shippers have a nearly impossible moving target to hit, a literal 1 in 2,000 chance of getting it right.

    Enter APIs, a more modern programming language that enables disparate programs to more easily share information. APIs, which largely gained mass adoption around Salesforce, can even solve the EDI issue, connecting various EDI languages and enabling real-time data transactions.

     

    Solving the Chassis Catastrophe

    Many of the steamship lines offer shippers access to free port chassis for a day when a ship arrives. The challenge, however, is that these chassis are often late in returning to the ports, meaning there are not enough to go around. The result is a tremendous drain on the entire supply chain. Containers are left to accrue demurrage fees, often in the thousands of dollars per container, while carriers are essentially required to utilize a set of chassis that aren’t always readily available, dramatically limiting their earning potential and productivity.

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    Adding complexity is the fact that not every chassis is made equally; some companies offer GPS or LTE connectivity, allowing shippers and carriers alike to easily learn the location and condition of a chassis. AIM Chassis is on the cutting edge of chassis management. As with APIs, these companies are demonstrating a larger appetite for data sharing to alleviate many of these issues. However in many cases, the terminals are very limited with regards to how much impact they can have; chassis agreements and ownership are not within their overall sphere of influence.

     

    Scaling through Scalable Solutions

     

    Nearly every US port has geographical constraints; there is simply no room to expand beyond their current boundaries because the land around them is already owned and in use. This means ports must re-imagine the traditional means of scaling. Automation, which is incredibly expensive, is one approach to increasing throughput. Another, however, is to find space that’s not exactly at the port but is close enough that containers can be easily moved, transloaded, and returned rapidly. Companies like SecureSpace are offering AirBNB-like capabilities and access to yards.

    Another less costly approach is to expand hours of operation to keep up with drayage demand. Ports on the west coast have utilized fees from drivers to enable extra staffing to remain open for more hours and increase throughputs.

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    The NEXT Advantage

    NEXT Trucking has taken a 360º approach to solving congestion at the ports. On the technology side, NEXT has built a solution that connects more than 2,500 various EDI solutions through API, removing one of the major hurdles terminals face in creating transparency and enabling shippers to further leverage their EDI investments. Chassis management issues have been alleviated through the use of AI; chassis management is nothing more than a complex mathematical equation that NEXT has cracked through a new program called Chassis Management, which is being trickled out this month and into the new year.

    NEXT has also pioneered an approach that merges technology and real estate, setting up yards just miles away from the ports of Los Angeles and Long Beach. In partnership with the terminals, NEXT utilizes peel piles to move containers through the ports more rapidly.

    The results have been tremendous:

    • Our customers see a 167% increase in containers pulled per truck
    • We’re decreasing environmental impact by limiting the amount of time trucks idle while waiting to get in and out of the ports
    • We’re cutting demurrage fees out of the picture
  • Transloading 101: Save Time & Money

    Transloading 101: Save Time & Money

    To transload or not to transload — that is the question.

    Transloading services have increasingly become an integral part of moving goods that arrive at a port and travel inland. So, what exactly is transloading? Let’s take a closer look.

     

    Most freight comes by way of shipping containers on large vessels. This standardization has greatly increased the use and efficiency of transloading – which is the process of moving the contents from a 40- or 45-foot ocean container to a domestic 53-foot intermodal rail container, over-the-road truck trailer, or consolidating freight to a less-than-truckload carrier.

    Due to increased international trade and the growth of e-commerce, transloading has become a standard method for shipping goods in recent years, especially in and around the L.A. port complex where as much as one-third of containers coming through Southern California are transloaded.

    In the ultra-competitive market of retail shipping, companies are constantly looking to gain an advantage and transloading facilities are one way to save time and money when complicated logistics are involved. In fact, many long-haul shipments of goods often involve multiple shipping companies, multiple modes of transit, or both before the shipment reaches its ultimate destination.

    Retail giants such as Target, Kohls, Williams Sonoma and Wal-Mart continue to drive the current rise in transloading services.

    To find out more about NEXT Trucking’s transloading services, please visit nexttrucking.com or call 855-688-6398.

  • Preparing For Peak: The State of Drayage 2019

    Preparing For Peak: The State of Drayage 2019

    We surveyed the #logistics ecosystem to understand what shippers want out of their suppliers, and who’s to blame for congestion at the ports.

    Key recommendations from the report include:

    • Stakeholders in drayage are uniquely positioned to implement standardized industry APIs
    • Incorporating existing technology to increase transparency in drayage and improve outcomes and fluidity
    • Transloading optimizes efficiency and mitigates the amount of time spent driving empty containers

    “The regulatory environment and geopolitical climate have combined to delay the start of peak season, but as we get closer to the holidays, we anticipate that volumes will see a prolonged spike that lasts through January 2020,” said Bobby Napiltonia, Chief Revenue Officer for NEXT Trucking. “This research shows what’s possible for the industry as technology continues to influence today’s best practices, and establishes concrete steps that shippers can take immediately to prepare for what will be a frantic end of the year.”

    Download the White Paper Here

  • Insider Hacks To Navigating Crowded Ports

    Insider Hacks To Navigating Crowded Ports

    In twelve years as a proud owner-operator, Marvin Estrada has spent more than his share of time waiting in crowded ports. On this day, Marvin arrives early and takes his place in line. Hopefully, it won’t be too long today Marvin thinks, as he tunes the radio to his favorite station.

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    One hour in and Marvin’s rig hardly moves. At two hours, the line begins to inch forward, but ever so slowly. With his appointment time rapidly approaching, Marvin can feel his grip on the wheel tightening and his pulse rising. Is he going to make his appointment? The odds aren’t looking good, but hopefully, the dispatcher can find him a later time slot.

    After over three hours in line, Marvin finally reaches the loading dock. He watches his freight descend only to stop and suspend inches from his chassis. Tragically, the long line ran Marvin’s time into the operator’s lunch break—nothing will move for another hour and a half. After another 35 minutes at the mechanic station, and an hour and a half in the terminal exit line, Marvin is finally on his way.

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    Sadly, this story is all too common for today’s drayage drivers. For owner-operators like Marvin, who currently drives and recruits other drivers for NEXT Trucking, overcrowded ports and long lines are a way of life. Nearly 63% of drivers say they wait three hours or more at shipping docks. According to the April 2019 FREIGHTWAVES Port Report, wait times in Los Angeles ports run around 120 minutes, with the Elizabeth New Jersey port running about 159 minutes.

     

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    Marvin speaks to the stress drayage drivers feel. “It’s just crazy. It’s a mess. One of the ports is backed up five miles, out to the freeway, right now. Crowded ports with long lines make our jobs as owner-operators so much harder.”

     

    But wait—all isn’t gloom and doom. Not a moment too soon, here are some insider hacks to help drayage drivers better navigate today’s crowded ports.

     

    1. Book Earliest Appointment- Try to book one of the first appointments of the day and arrive as early as possible. If the terminal opens at 8 AM, arrive between 6 and 7 AM and make line. The earlier, the better to get the jump on the competition.

     

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    2. Avoid Break Times- As many terminals open at 8 AM, the first break is usually around 10 AM for 30 minutes. Lunch break typically starts around 11:45 AM and ends around 1:15 PM. Wise carriers avoid scheduling on either side of these time slots. The best strategy is scheduling early around 8 AM or later around 3 PM.

     

    3. Be Prepared to Reschedule- If it becomes evident that a scheduled appointment time isn’t going to work—don’t panic. Immediately reach out to dispatch and see if a later time may be available. If this isn’t an option, remain in line and proceed to the pedestal. With a little good fortune, the crew on duty will understand the circumstances for the late arrival, and proceed to load your freight.

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    4. Bring Your Chassis- This will save significant time as you won’t need to make a mechanic stop. These stops can become serious bog downs if you are using a chassis that belongs to the port. Due to liability, the terminal mechanics must examine these thoroughly, which can easily add 30 minutes to an hour of wait time. Bring your chassis in good condition (correct tire pressure, working lights, no red flags), and you can avoid the mechanic stop entirely.

     

    5. Perform Self-Checks- Before approaching the in-gate pedestal be sure all the specific appointment details are correct. Make sure you have the right time as well as booking and appointment numbers. Nothing is worse than a long wait only to be sent back for one tiny incorrect detail.

    After freight is loaded, be sure to hop out and confirm the container’s identity. Verify all container numbers match and the container is sealed correctly. A minute or two spent now can save hours later by avoiding the trouble window.

     

    Proactively use your waiting time to catch and address errors before they result in delays. When an error becomes obvious, waste no time contacting dispatch to obtain accurate information. The time you save will be your own.

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    6. Know Your Ports and Embrace Automation- Drayage carriers can make their lives easier by developing an intimate knowledge of the ports and terminals they work. Some terminals have better reputations, while others don’t. Knowing and selecting faster options given a choice can go a long way to lessening carrier stress and increasing income.

     

    Automation is driving increased speed and efficiency in many industries—and drayage is no exception. Only two fully automated terminals exist in North America—Long Beach Container Terminal (LBCT) at Middle Harbor in Long Beach, and TraPac at the port of Los Angeles. The Global Container Terminal in New Jersey and a few locations in Virginia employ semi-automated processes at their facilities. These numbers seem sure to grow with increased knowledge of automation’s advantages.

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    Marvin Estrada can’t hide his enthusiasm when discussing the benefits of automated robotic cranes loading containers. “Robots don’t take lunch or get bored. With automation, drivers can be in and out of a terminal in under 30 minutes.”

     

    For Marvin and other savvy drayage drivers, the choice is obvious—jump on the opportunity to work in ports and terminals that currently embrace automation.

     

    7. Get Your Mind Right- We humans appear to better cope with adversity when allowed to prepare. The strategy of mentally prepping for the worst and optimistically hoping for the best seems to benefit most. In short, as a drayage driver today be ready for long lines and extended waits—all the while focusing on remaining calm.

     

    According to Marvin, honking may feel good at the moment, but only increases tensions and further slows everyone’s roll. His best advice, after twelve years as an owner-operator, is as simple as it is wise. “Always start your workday with positive energy, stay calm in the heat of the moment, and, oh yeah, bring lunch and water.”