Today's supply chains are under enormous pressure to manage their supply chain faster and more efficiently. Technology officers are looking to applications to meet efficiency demands from both customers and management. The rate at which technology is expanding its capabilities seems to make what was an impossible idea just a few short years ago now a plausible solution.

The inaccuracy of cargo containers, as well as individual skids, gaylords and crates, is a major safety issue that shippers need to be aware of. Generally, freight cost is directly related to weight.  It is not unusual for shippers to innocently estimate the weight of a particular shipment below the actual.  For example, it is very common for shippers to calculate their shipment size from their product data and neglect to include the weight of the shipping packaging.  Usually, a benign issue but multiplied by several shipments per container the bulk shipment could be significantly overweight causing unsafe trucks, ocean vessels and airplanes.  The safety issues are significant; reduced braking distance for a truck, buoyancy issues for a sea going vessel and lift problems for an airplane.  Most carriers have an entire department to re-weigh freight and confirm their NMFC classification to ensure a transportation vessel is safely loaded. 

In 2015, China devalued the Yuan nearly 2% hoping to stimulate growth and exports.  This year, the currency is down 2.9 percent versus the dollar. Purchasers of Chinese exports are enjoying lower net prices when buying in dollars. 

Unmanned aerial vehicles, also known as drones, are becoming extremely popular. The unmanned drone industry is expected to create more than 100,000 U.S. jobs by 2025. The economic impact could approach 100 billion within the next decade according to a study prepared for the Association for Unmanned Vehicle Systems International. Future aeronautical engineers will need to be trained in everything from computer software development to engineering, manufacturing and piloting skills. Commercial drones do have their limitations. Currently an average drone can reach speeds of 50 miles per hour and carry up to 5-7 pounds, limiting drones delivery to small parcels.  

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.