Retailers and consumer goods manufacturers are spending an enormous amount of money, energy and time to improve their omnichannel sales capabilities, yet a JDA report reveals an unexpected and disturbing fact: despite these significant investments, only 16 percent of companies say they can fulfill omnichannel demand profitably today. Retailers and consumer goods manufacturers are spending an enormous amount of money, energy and time to improve their omnichannel sales capabilities, yet a JDA report reveals an unexpected and disturbing fact: despite these significant investments, only 16 percent of companies say they can fulfill omnichannel demand profitably today.
After years of truckload carriers wooing shippers with low rates, expanded service offerings and intense engagement models, a perfect storm is underway that puts shippers and logistics providers in the awkward position of wooing the carriers. Why has this happened? Take a look at the backbone of the U.S. market economy – supply and demand.
Promotions are often implemented as successful marketing tactics to assist in attracting new customers, retaining existing customers, testing new product concepts and quickly reacting to changing consumer demands. Not only do they provide brand recognition, but they also give marketers, product developers and sales people an additional avenue for creativity. While specialty products and limited-time offers can build brand revenue, implementing promotions isn't as easy as one might think when factoring in supply chain management requirements such as fulfillment and distribution.
FTR reports February 2015 U.S. trailer net orders were 20,400 units, 26 percent below January figures and - 32 percent Y/Y. The trailer market continues to moderate after record setting orders in 2014Q4. Backlogs fell for the first time in six months. Trailer orders have exceeded 347,000 for the past 12 months.
Analyst Insight: The rise of omnichannel fulfillment and e-commerce is having a dramatic impact on distribution network design. As omnichannel fulfillment becomes the new normal for consumers, distribution and logistics professionals are increasingly reassessing their fulfillment networks, the attributes of their distribution facilities and the expectations placed on their partners. This reassessment is leading to more innovative fulfillment options, but uncertainty remains on the profitability of additional customer service solutions. – Barry Blake, Vice President, Research, SCM World
Analyst Insight: Customers of 3PLs face fundamental market transformation impacting their supply chain operations and initiatives. Connected commerce drives basic changes to fulfillment operations. Change is occurring at internet speed. 3PLs haven't traditionally been known for "anticipating" customer requirements changes. They have, however, been exceptional in responding to customers' requirements when the changes become apparent. In today's fast-paced markets, responding to change may not be enough. Vested relationships based on innovation are the new 3PL imperative. – Rich Sherman, author and founder at Gold & Domas Research
Analyst Insight: Implementation time-lines for transportation management outsourcing continue to shrink thanks to cloud-based systems, process standardization, and features like automated carrier contract management. This is not the case for facility start-ups. With 10+ key milestones, hundreds of key tasks and sub-tasks, time-line slippage and cost overruns can quickly extend the time to value for both 3PLs and shippers. – Valerie Bonebrake, Senior Vice President, Tompkins International
The International Air Transport Association released full-year air cargo data for 2014 showing 4.5 percent demand growth compared to 2013 measured by freight tonne kilometers, a significant acceleration from the 1.4 percent recorded in 2013 over 2012.
The Procter & Gamble Company plans to build a multi-category manufacturing facility in Berkeley County, West Virginia, in the Eastern Panhandle of the state near the town of Tabler Station. When the plant opens in 2017, it will be one of the most advanced and sustainable plants among P&G's global manufacturing and supply-chain operations.