Analyst Insight: Continued globalization and increasing leverage of third-party services for manufacturing, distribution and returns keeps the warehouse and logistics sector strong. Though the growth of warehouse space slowed due to poor sales of consumer and commercial goods in the U.S. over the last year, technology sales continue to thrive though growth for some was not robust in the last year.
Analyst Insight: For most companies, the management focus on order fulfillment concerns cost-containment. To lower operating expenses, companies should look to both cost savings (via efficiency gains) as well as cost avoidance (via accuracy improvements). Making these changes in the short term can yield long-term benefits, as those improvements that save costs now can also position companies to better handle the greater volumes that will follow a rebound in consumer demand.
Analyst Insight: The economy and reductions in demand have focused priority on tactical initiatives within the supply chain. In 2010 there will be renewed focus beyond securing distribution efficiencies and renegotiating transportation rates (2009's top actions). As we exit the recession, companies are encouraged to embrace a 4-step strategy for transformational change.
Analyst Insight: Today's transportation organizations are being affected on all sides by rising costs and demands. Top performers in this economy are extending beyond the basics of domestic and international systems and beginning to create and extend automated processes to address advanced capabilities like dynamic optimization and the daily use of analytic tools to monitor events and communicate and collaborate on a near real-time basis.
Analyst Insight: As the economic recovery proceeds, companies should be changing their sights from mere tactical cost-cutting measures to more strategic improvement initiatives. Productivity increases and cost containment are now considered a given at the leading companies. The bigger benefits are coming from companies that are integrating logistics and distribution more broadly into innovative supply chain improvement strategies.
Analyst Insight: Global competition, ongoing business transformation, and the increased lead-times / complexity of global supply chains are creating a situation where pipeline inventory and landed costs have increased dramatically. But before a company can reduce pipeline inventory or landed cost, it needs visibility into them. Hence, improving supply chain visibility is a key strategic imperative that has been, and is, growing in importance in managing the multi-enterprise supply chains.
Analyst Insight: With online retail sales projected to reach 17 percent of total company sales in 2010 and double-digit growth expected each year through 2012, retailers must take measures to offer next-generation retail. That would create a model that focuses on consumers and their experiences up to and through the purchase, or moment of truth. While most retailers have invested in some form of online capabilities, few (7 percent) have built the appropriate supply chain infrastructure to support a true, seamless, cross-channel experience for the customer.
The latest news, analysis, services and systems regarding transportation and distribution and their impact on global supply chains. Today’s companies are shipping and delivering perishables and manufactured goods faster and farther around the world than ever before through transportation and distribution solutions. New technologies that provide information during local and global shipments via air, ground and sea are transforming the way companies do business - and allowing them to stay ahead of the competition in their industries. As these services continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies are using transportation and distribution solutions to power their supply chains.
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