Powering Value-Added Logistics in Today’s Market

Introduction

Good morning. Wherever you are in the world, we are thrilled you could join us today. I’m Christine Barnhart, your host for Supply Chain Unfiltered. Here, we take an honest look at the challenges that supply chain professionals encounter and invite forward thinkers and innovators to share their insights on strategies, technologies, and collaborative efforts shaping the future of supply chain management.

Recently, I returned from an incredible trip to Spain and Italy. After enjoying delicious espressos and wines, I reconnected with supply chain professionals in Barcelona and had a fantastic time visiting Naples and Rome. Now, as I shake off the jet lag, let's dive into our insightful conversation with Mr. Tom Campbell from Capacity LLC.

Meet Tom Campbell

Tom Campbell serves as the Chief Strategy Officer at Capacity LLC, a third-party logistics (3PL) firm specializing in order fulfillment for both direct-to-consumer and major retailers. Operating in New Jersey with additional facilities in Indianapolis and California, Capacity collaborates with notable brands such as Sephora, Ulta, Target, and Macy's. Known for their rapid scaling capabilities and innovative technologies, Capacity has established itself in the logistics market.

Reflection on PACK EXPO

Tom recently attended PACK EXPO in Chicago, an event that showcases innovations in supply chain packaging. He emphasized that PACK EXPO serves as a leading indicator of industry health, especially for small, innovative firms. Important themes from the event included advancements in AI and sustainability, with standout experiences from visits to organizations like Everest Labs, which employs AI to enhance recycling processes and minimize waste.

The Importance of Value-Added Services

In the context of Capacity's operations, value-added services are essential. These services constitute about 10% of their business and facilitate flexibility for brands when products need assembly or rework. By incorporating value-added activities, Capacity is able to efficiently manage logistics, especially during peak seasons when scalability and speed are vital.

The Role of Technology

Tom discusses the significant role that technology plays in Capacity's strategy, particularly their utilization of Nulogy, a software that streamlines operations. Implementing Nulogy has enabled Capacity to transform from a paper-based system to an automated cloud-based one, improving efficiency in assembly operations, inventory management, and customer service.

AI’s integration into logistics is also making waves. As data readiness becomes increasingly important, Capacity’s strategic use of AI aims to identify efficiencies and streamline processes. Tom urges companies to focus on their core problems rather than simply adopting AI for the sake of using technology.

Creativity and Human Insight

Despite the rapid technological advancements, Tom emphasizes the irreplaceable value of human creativity and insight in logistics. He reflects on how collaborative efforts between humans and robots have led to increased productivity, without replacing employees. Innovation should always be complemented with the human touch.

Conclusion

In closing, Tom shared his experiences in Italy, linking global insights with logistics challenges. He invited others to reach out to him for further discussion on Capacity's innovative approach to logistics and value-added services. The industry must embrace technology while retaining the essential human element to navigate today’s complex supply chains effectively.

Keywords

Value-added services
Third-party logistics (3PL)
Nulogy
AI in logistics
PACK EXPO
Automation
Supply chain efficiency
Human creativity

FAQ

Q: What are value-added services in logistics?
A: Value-added services are additional services provided by 3PL firms that enhance product offerings, such as assembly, rework, and packaging.

Q: How does Capacity LLC differ from other 3PL providers?
A: Capacity LLC specializes in rapidly scalable operations with a focus on automation and innovative technologies, working closely with premium consumer brands.

Q: What technology does Capacity use to improve operations?
A: Capacity utilizes Nulogy, a cloud-based software that significantly enhances efficiency in their logistics operations by replacing outdated paper-based systems.

Q: How is AI impacting logistics?
A: AI is being used in logistics to identify inefficiencies, improve operational processes, and provide analytics that support decision-making.

Q: Why is the human element still important in logistics?
A: While technology can enhance efficiency, human creativity, judgment, and relationships remain vital for navigating complex supply chain challenges and driving innovation.