Key Trends in the Industry
Changing customer demands and increasing last-mile delivery costs are continuing to place pressure on supply chains and force retailers to rethink their strategies for order fulfillment. An influx of start-ups and tech-savvy logistics platforms in the industry has already begun to transform delivery models and tackle inefficiencies.
- Approximately 40% of overall logistics costs are associated with the last-mile*
- To combat the costs associated with last-mile delivery, providers are exploring a wide array of solutions ranging from locker boxes and collection points to autonomous delivery solutions such as drones
- Fleet operators are developing urban distribution centers and retailers are shifting towards compact stores to both reduce costs and bring their operations closer to the end customer
*Supply Chain Digital
What We're Reading
Logistics |NAFTA Countries Remain Bullish on Trade
Material Handling & Logistics - March 22, 2018
While the Trump administration has led to some uncertainty regarding protectionist trade policies, business leaders in the U.S., Canada, and Mexico remain optimistic that growth in cross-border business will continue. Read the full article here.
Trucking |Truckers Boosted Hiring at Fastest Pace Since 2015
Wall Street Journal - March 9, 2018
With freight volumes remaining strong, shippers are clambering to hire enough trucks, This continued surge in demand has led trucking companies to hire new workers at the fastest pace in several years. Read the full article here.
Rail | Best-Ever Month for Chem Carloads
Railway Age - March 8, 2018
Although somewhat held back by declines in coal, grain, and motor vehicles, February was the best month ever for carloads of chemicals and the second-best month ever for intermodal. Read the full article here.
Marine | AB InBev, APL, and K+N Partner on Blockchain Trial
American Shipper - March 15, 2018
A consortium of AB InBev, Accenture, APL, Kuehne & Nagel, and an unnamed European customs organization recently tested a way to eliminate the physical printing of international shipping documents through blockchain. According to the parties involved, “the tests confirmed that blockchain can reduce operating costs and increase supply chain visibility and save the freight and logistics industry hundreds of millions of dollars annually.” Read the full article here.
Air | IATA Hopeful for the Future of Pharmaceutical Air Freight
Pharma Logistics IQ - March 21, 2018
Historically, pharmaceutical and biological goods have been primarily shipped by sea, due largely to temperature control risks and a lack of transparency into the airport environment’s handling of such goods. With new tools being put in place to assist shippers in locating partners that are IATA CEIV pharma accredited, however, the future of pharmaceutical shipping could shift towards the air. Read the full article here.