Drones have captured the imaginations of many logisticians. The uses for drones are expanding as more logistics providers test these devices in a number of ways, including inventory and yard management and, of course, delivery. While government guidelines remain either vague or non-existent, drones are being tested and implemented particularly within the healthcare industry to deliver medicines in remote areas as well as in general areas of the US and Europe. -Cathy Morrow Roberson, Founder/Head Analyst, Logistics Trends & Insights LLC
Daimler AG cast doubt on Tesla Inc.’s plan to deliver electric heavy trucks next year, saying its more modest goal to start selling battery-powered big rigs by 2021 is more realistic.
One of the disruptive impacts of the rise of e-commerce is a shortage of labor to fill a growing number of warehouse positions needed to keep up with increasing e-commerce volume and customer expectations. Distribution hub markets are oversaturated with new DCs and that's driving greater competition for labor. This, at a time when both the working population and unemployment statistics are trending downward. The challenges were never more evident than through the most recent peak season. -George Swartz, Group Vice President, Fortna Inc.
Forwarders play an important role in obtaining space on airplanes or ocean vessels at the best rate possible for shippers. Long known as a relationship business, much of the forwarders' business traditionally was done by phone, fax machine or in person. Real-time tracking and management of shipments was non-existent, transparent invoices did not exist and neither did electronic document submission. Until now – today thanks to technology and start-ups, the freight forwarding market is changing. -Cathy Morrow Roberson, Founder/Head Analyst, Logistics Trends & Insights LLC
Retailers still celebrating their strongest holiday sales in years now face the less-pleasant task of disposing of billions of dollars in returned merchandise.
The fast food chain KFC has been forced to temporarily close most of its U.K. outlets after problems with a new delivery contract led to a chicken shortage.
The availability of labor (or lack thereof) is requiring us to think differently about network strategy and site selection. Distribution network strategy is no longer just about optimizing traditional costs (transportation, operating expense, fixed costs and capital). Today, when evaluating different network strategies, total supply chain cost, including availability, cost and quality of labor, real estate occupancy costs, inventory working capital and possible economic incentives must be considered alongside service level improvements that drive revenue growth. -Chirag Modi, Director, Global Strategy, Fortna Inc., and Tray Anderson, Vice President, Strategy, Fortna Inc.
The parcel industry is projected to grow 9 percent annually to more than $343bn globally by 2020, according to Accenture, thanks to the increase in e-commerce orders, which are forecast to surpass $600bn by 2021 in the US alone. Parcel carriers are challenged in this era of explosive e-commerce growth to maintain historic profitability as the number of stops per delivery and the size of packages increase, while customer expectations for speedier deliveries continue to heighten. -Dan Clark, Founder and President, Kuebix