NAW's Hoplin speaks on possible port strikes, use of automation | Strategies help distributors combat profit erosion | Importers accelerate shipments ahead of possible strike
National Association of Wholesaler-Distributors CEO Eric Hoplin was a guest on "Mornings with Maria" and spoke about the potential impact of port strikes on the US economy and union efforts to slow the use of automation. America's ports are among the least efficient on the planet, Hoplin said, noting Rotterdam -- one of the busiest ports in the world -- moved toward automation several years ago and did so without significant job losses. "And their ports are so much more efficient than ours," Hoplin said.
High logistics costs require distributors to adopt strategies to restore profitability, including analyzing customer profitability, pricing structure, minimum order requirements, adjusting delivery terms, improving operational efficiency and changing service models, writes Randy MacLean, founder of WayPoint Analytics. By understanding which accounts to apply these tactics to, companies can ensure more orders contribute positively to the bottom line.
US importers are picking up the pace of shipments to mitigate potential disruptions at key ports from Maine to Texas as the International Longshoremen's Association and its 45,000 dockworkers prepare to strike. CMA CGM says it will add surcharges to all US East Coast and Gulf ports from every origin port starting Oct. 11, while Hapag-Lloyd plans to add a Work Disruption Surcharge starting Oct. 18.
Process automation is transforming distributor operations by removing manual tasks and optimizing supply chains, say experts Alex Witcpalek of Continuum and Nick Schwalbach of SPS Commerce. The pair emphasize AI's role in analyzing data to improve efficiency and the importance of having a team open to change. However, Witxpalek and Scwalbach note the complexity of distributor businesses and a focus on immediate customer needs can hinder widespread adoption.
Simbe Robotics' inventory-tracking robots will make an appearance at more ShopRite locations thanks to an expanded partnership with Wakefern Food Corp. Wakefern member Shop-Rite Supermarkets will implement Tally robots at all 37 of its stores in New York and New Jersey following a successful four-month pilot test, and Inserra Supermarkets will bring the robots to all 23 of its ShopRite locations as the grocers seek to improve inventory operations.
Distributors are being encouraged to use AI tools for content creation, but experts warn against oversimplifying AI's role. While AI can efficiently handle tasks like product descriptions, it lacks the personal touch needed for more complex content, such as technical guides or educational articles, writes Lindsay Young, president of B2B marketing firm 3 Aspens Media. Human expertise remains crucial for creating credible, relevant content, according to Young, who notes firms should strategically combine AI's efficiency with human insight for effective sales and marketing content.
The key for effectively driving short-term goals via LinkedIn business-to-business ads is clarity of messaging and memorable creative, according to analysis by MAGNA and LinkedIn. B2B ads on the platform that most successfully contribute to long-term growth convey a unique perspective and are emotionally appealing, the research found.
Investment-grade corporates are managing their debt maturities cautiously due to fears of potential Federal Reserve rate cuts. The concern is that rate cuts could affect their financial strategies, prompting them to keep tight reins on maturities to mitigate risks. This approach highlights the delicate balance companies must maintain in response to monetary policy changes.
Technology entrepreneurs are optimistic about the future of work, while economists are skeptical and journalists are pessimistic, according to researchers Nicky Dries, Joost Luyckx and Philip Rogiers, who surveyed professionals in the three fields. "As our study shows, experts from different disciples typically have different views on future risks and opportunities -- and we know from research that embracing uncertainty and competing scenarios is in fact essential to long-term strategic planning," they write.
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The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers throughout the United States, accounting for approximately 1/3 of the U.S. GDP. 250,000 wholesale distribution companies operate across North America, including all 50 states. Learn more.
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