Analyst Insight: Supply chain complexity and turmoil is on the rise due to growing global markets, increasing customer expectations, rising costs and more intense competitive pressures. Progressive companies understand that supply chain performance has a significant impact on the bottom line and shareholder value, and they must reinvent their supply chain networks on a regular basis in order to remain competitive. However, the traditional way of designing supply chain networks with a focus on cost optimization is giving way to more progressive thinking. - John Spain, Executive Vice President, Tompkins International
Analyst Insight: Online sales surged last year, and many companies saw their e-commerce sales grow by double digits. This growth is expected to continue for the foreseeable future, so the good news is that rising rates and revenue for e-commerce are significantly exceeding expectations. But there is bad news too - e-commerce is stressing distribution operations and many companies are having difficulty keeping up. Adopting the right operational practices for order fulfillment is essential for business success. - Kelly Reed, Partner, Tompkins International
Analyst Insight: Both the public and private sectors in China are taking bold steps to respond to challenges of the new consumption-driven economy. Government measures, though stuck at a policy level in many cases, are addressing the right issues. At the same time, domestic companies are rising up to meet new demands. In 2014, China will see big changes in its core logistics and manufacturing industries. Some of the top areas seeing change include domestic transportation, distribution, import and export, as well as sourcing. - Jim Serstad, Managing Director Asia, Tompkins International
Analyst Insight: Final delivery - it's the last phase of the delivery process that places goods into the consumer's hands. What will final delivery look like in the future? There are multiple competing business models to fulfill the final delivery need, ranging from the engagement of independent contractors, to wholly owned internal operations and systems based on crowdsourcing. In the end, the maximum value provided to the end customer will determine who is most successful - not just who delivers the product. -- Lisa Kennedy, Project Manager, Tompkins International
Analyst Insight: Direct delivery of orders to the customer's doorstep is a hot topic for transportation and logistics executives"”from giants like Amazon to mom-and-pop specialty retailers. In particular, there is a lot of buzz around the direct-to-consumer cold chain. Free delivery and free returns, combined with the complexity and cost of cold chain distribution center (DC) and delivery assets, make for a chief marketing officer's dream and a chief financial officer's nightmare. How can you get this capability just right? - Don Anderson, Principal, Tompkins International
The third-party logistics services industry is growing at a faster rate this year than gross domestic product, but experts at Tompkins International anticipate more aggressive growth than the 6 percent cited by other sources.