Analyst Insight: Speed is a game-changer. Leaders are enabling faster fulfillment and reaping real bottom line and competitive advantage benefits. The key is balancing potential revenue gain or service level improvement against the investment and operating costs required to deliver on the promise. Choosing the right strategy depends on understanding the impacts, not just within the distribution center, but across the entire organization. – Helgi Thor Leja, Industrial Distribution Leader, Fortna Inc.
The total cost of ground transportation for Canadian shippers increased by 2.7 percent in December when compared with November results, according to newly published data from the Canadian General Freight Index.
Analyst Insight: It's no secret that the explosion of e-commerce, omnichannel, multichannel and social media - along with large online retailers' offerings - have significantly raised customers' expectations for rapid delivery, free shipping and free returns. Customers are clearly signaling that a company's successes and failures rest on high expectations of price, selection, convenience and experience. Companies must "get local" in order to meet customers' demands for speed of delivery. – John Spain, Partner, Tompkins International
Denmark's government laid out details of a plan to build a tunnel connecting the Nordic region to Germany and cutting traveling time, saying in a bill that it will cost 65bn Danish crowns ($10bn) and be in use by 2024.
With any discussion regarding the future of industrial distribution, the impact of AmazonSupply is sure to come up. Distributors seem to have differing views on this impact, ranging from fear of ArmageddonSupply to a shrug indicating "this too, shall pass."
The present business models being employed by e-retailers and their shipping partners are becoming increasingly unsustainable, according to a report from Transport Intelligence, a research and analysis firm focusing on the global logistics industry.
For states in the northern half of the country, particularly the Midwest and Northeast, tough winters are expected. Prolonged freezing temperatures and heavy snowfalls rarely catch anyone off guard in those regions.
This past June, the largest overnight delivery carriers, FedEx and UPS, announced that they would apply dimensional weight pricing to all shipments, effective January 2015. It is expected that shipping costs will increase 20 percent to 30 percent and affect over 70 percent of all shipments. What shippers are truly affected by the new pricing model? What can be done to avoid the cost increase?
You need to understand the requirements around speed of delivery, and the cost. Clients often come with questions like, "My customers want next-day delivery, what is it going to cost me to deliver that?" And the short answer is, "it depends."