Today's dynamic logistics environment demands an ever increasing supply chain efficiency sprouting new strategies, practices, and processes, all of which are designed to meet the requirements of the new digital economy. The "Amazon Effect" has been the major catalyst for the evolution of contemporary supply chain design. The Amazon effect is the ongoing evolution and disruption of the retail market, both online and in physical outlets, resulting from increased e-commerce. The name is an acknowledgement of Amazon's early and continuing domination in online sales, which has driven much of the disruption. We'll highlight just a few new technologies that are being implemented in varying degrees in the next gen supply chain design.

Wall Street is buzzing and XPO Logistics shares have risen sharply amid rumors of a buyout by Home Depot. XPO Logistics is a top ten global provider of cutting edge supply chain solutions to the most successful companies in the world. The company operates as a highly integrated network of people, technology, and physical assets. They use their network to help customers manage their goods more efficiently throughout their supply chains. As of the end of 2016, XPO served more than 50,000 customers and operated with over 87,000 employees and 1,425 locations in 34 countries.

Years ago, the term "Expedited Service" would send chills down the spine of the accountants, and almost always get someone a good thrashing for whatever went wrong to create the need to call an expedited carrier. As today's supply chain and inventory systems have evolved into a complicated dance of extreme efficiencies and razor thin inventory levels, expedited freight transportation has matured along with them as an integral cog that is the wheel of the 21st century supply chain philosophy. The additional costs of premium transportation can now be justified with the new supply chain savings.

According to FreightWatch International, the risk of cargo theft incidents is much higher during the holiday season, and the upcoming Thanksgiving weekend should demand additional supply chain security measures for retailers looking to protect their precious holiday merchandise.

The ELD (Electronic Logging Device) mandate is roughly 30 days away.  The effective date, which has been pushed back several times, is now December 18.  The electronic logging device (ELD) rule – congressionally mandated as a part of MAP-21 – is intended to help create a safer work environment for drivers, and make it easier and faster to accurately track, manage, and share records of duty status (RODS) data. An ELD synchronizes with a vehicle engine to automatically record driving time, for easier, more accurate hours of service (HOS) recording. 

Walmart has acquired Brooklyn-based delivery startup Parcel, the retail giant’s sixth technology startup acquisition in the past 14 months.  This move is just a singular acquisition toward an aggressive common industry goal; catch up with Amazon.  It makes sense.  The best online ordering system means nothing without boots, or in this case, wheels, on the ground.  

In revising the North American Free Trade Agreement, the Trump administration will seek tax equality and the ability to reimpose tariffs if a flood of imports from Canada and Mexico causes "a threat of serious injury" to U.S. industry. According to an administration draft proposal being circulated in Congress by the U.S. trade representative’s office, the U.S. would keep some of NAFTA’s most controversial provisions, including an arbitration panel that lets investors in the three nations circumvent local courts. The administration also will seek to eliminate a requirement in the trade deal that anti-dumping and anti-subsidy disputes be settled via a special dispute panel. Some U.S. industries including lumber have complained that the current agreement protocol is ineffective in stopping unfair subsidies. Additionally, the U.S. wouldn’t use the NAFTA negotiations to deal with foreign currency policies or to hit numerical targets for bilateral trade deficits, as some trade industry watchers have been urging.

 It Is no secret, nor a surprise that shopping malls are struggling to keep tenants. Online shopping and ease of delivery are clearly the contributing factors altering our shopping habits. So, what might the next generation shopping mall look like? One thing is certain- it will have to be a dramatic transformation of today's version.  One architecture firm has bold plans to salvage brick-and-mortar shopping centers by turning them into warehouses with drone ports.

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Amazon has been reshaping Logistics for many years.  They are now poised to leverage today's technology to redefine the supply chain process.  Logistics providers everywhere would be well advised to pay attention.

An anticipated increase in fuel prices are likely to increase shipping costs for U.S. manufacturers in 2017 in the form of higher fuel surcharges.