Growing consumer demand and ever increasing intolerance for lengthy transit times are forcing retailers to adopt a strategy that will most immediately and economically satisfy the customer demand. Retailers are looking to provide a fulfilling in-store or online experience while managing efficient inventory levels and offering next day delivery of in store and online items. 

Today’s technologies have enhanced the global exchange of information about goods and bolstered transportation networks moving items across borders. The Internet has provided purchasers of goods and services access to a global market with delivery options, from standard to expedited and everything in between. In the commercial markets, things get a little complicated due to global currency transactions. The current payment, clearing and settlement systems are major bottlenecks to the flow of global trade. They are inefficient, have long settlement times and high-cost fees and exchange rates. The ideal solution would be a common worldwide currency. Although the Euro has helped simplify currency transactions in Europe, a common worldwide currency is unlikely.  Bitcoin may be a viable option to ease the currency bottleneck.

Many Wal-Mart Stores suppliers are saying no to new storage fees and a payment schedule that could delay payment for months. In an effort to re-invigorate margins, Wal-Mart sent a letter in June this year to some 10,000 suppliers advising their suppliers of new fees which would be imposed upon them such as a 1% warehouse use fee, 1% distribution center use fee, and premium fees for new store penetration. 

At a popular Supply Chain Summit, several prominent economists presented their findings for the Logistics Economic Outlook for 2016 and beyond. We’ve summarized some of their findings and forecasts in order that our clients and followers might be armed with expert advice on what to expect in the coming years and how to plan on what’s ahead.

3D printing is likely to have an impact on the production methods of many products, their parts, or the raw materials needed in their manufacturing process.  3D printing technology eliminates the mold manufacturing method in favor of a less expensive digital process. The product can be made locally, thereby reducing the distance required to ship the finished goods to market. Material with high shipping costs made of most any plastics based material would be a perfect candidate for 3D printing technology today but a myriad of additional raw materials have been used successfully in 3D printing manufacturing.  

People, process, and technology; these are three elements that leaders focus on when looking to make impactful changes in their organization.  Regardless of what department you are looking to improve, it is vital to hire the logistics firm with the appropriate leadership and industry experience and record of success.

Every carrier, large and small, has their "sweet spot" lanes; those lanes that achieve a well balanced mix of freight to and from their core customers and terminals.  Achieving this balance and minimizing empty miles are the most critical aspects of running a profitable trucking company.  Any carrier’s tariff or quoted pricing will absolutely reflect the level of desirability of any pickup or delivery point.  Understanding this information should be an integral part of your freight routing strategy.  Routing a shipment to a carrier for which the origin or destination are considered outside their sweet spot will result in a higher rate and (most likely) sub par transit times.  They really don't want that particular shipment but take it at a premium price to appease the customer.  They will often times hand it off to a carrier that services that origin or destination.  This "Partner Carrier" relationship, as it is commonly referred to today, often causes a reduction in overall customer service.  Dissecting, understanding and utilizing this information is exactly what a 3PL offers its shipper clients.  A 3PL offers maximum utility in routing decisions and the price benefit of large volume freight tendering. 

Challenges abound in today's Logistics environment.  Shippers have to adapt or sink. Businesses will be faced with the choice of doing things the way they’ve always done them, or assessing their business processes and evaluating partnerships in the hopes of doing them better.  63% of shippers cite cutting transport costs as their biggest challenge. This is followed by business process improvement (32%) and improving customer service (31%).

Over the past 3 years, the National Transportation Safety Board has investigated nine rear-end accidents involving passenger or commercial vehicles striking the rear of another vehicle, the result of which was 28 fatalities and 90 injured people. In 2012, rear-end crashes resulted in 1,705 fatalities and represented almost half of all two-vehicle crashes.

A familiar (and painful) scenario we all surely endured at some point involves the shipment of product to someone’s receiving dock only to find out later that the bill is about double what was expected because the initial estimate was way off.