Tag Archive: e-commerce

The Resilient Supply Chain: Are You Prepared for AI & Automation?

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Will artificial intelligence and automation impact your industry?  Most likely the answer is yes.  The only question is how. At the very minimum, you should be paying attention so you can make sure you are taking potential advancements into account in your strategy.   In the accounting industry, AI has the opportunity to transform and automate a significant number of jobs.   Manufacturing has already been impacted by automation. Of course, it is likely to continue to evolve and it has the potential to transform the logistics industry.  Here are a few potential applications:    Instructions – Artificial intelligence certainly seems…
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E-Commerce Drives Industrial Space to New Heights

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According to the Journal of Commerce, e-commerce is driving industrial space rents to new heights.  Our clients are definitely experiencing the same dilemma! There has been a 12.1% increase in rental rates since 2017, and the L.A. / Long Beach area has the lowest vacancy rate in the U.S. of 1.2%.  Ridiculously, the average price in L.A. was 60%+ higher than the U.S. average in the first quarter! And, stranger yet, e-commerce is driving class B space (not as desirable) to be snatched up. It is becoming the new class A!  Even Class C (even less desirable) is starting to…
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E-Commerce is on Fire

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At the Southern California E-Commerce and Logistics Summit, there was much discussion on e-commerce.  No matter whether you are in a consumer products company (which is typically more geared to e-commerce) or if you are in aerospace, e-commerce principles and implications will affect you.  The bottom line is that we are in the era of the customer:   E-commerce is over 10% of all retail sales currently and projected to climb over 15% by 2023 – Customer responsiveness, rapid deliveries and last mile considerations will become commonplace.  China and the U.S. account for over 80% of the e-commerce growth –…
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Transportation Capacity Tight & Rates on the Rise

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Transportation capacity is tight and rates are on the rise. And,  it doesn’t look like it will change anytime soon!  The lack of qualified drivers, tighter enforcement of driver work rules and the dramatic changes brought on by e-commerce are creating challenges for shippers not to mention higher rates.  According to the Journal of Commerce and the 2018 TPM Conference, impacts abound with “rollover freight”, dropped tenders and longer transit times. The last one is key – in today’s Amazon-impacted market, customers expect quicker deliveries; not extended ones!  Are you thinking about transportation trends and the impacts on your company?  …
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Technologies of Disruption & E-Commerce

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I participated on the Amazon Effect: Play or Pass Panel at the Manufacturers’ Council of the Inland Empire’s Manufacturing Summit.  B.J. Patterson, Dan Vest and I had an interesting discussion about the technologies of disruption.  Certainly Amazon has led the way with several of these…. For example, e-commerce directly correlates to Amazon.  Who doesn’t want to order 1 toothbrush or 1 can of carpet cleaner at a time and expects it to arrive within 24-48 hours?  It appears as though we all do! Yet we don’t think about what it takes behind the scenes to make this happen. For example, the…
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What’s New & Hot in Transportation?

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What’s New & Hot in Transportation? I was a panelist at Mobility 21‘s (the Southern California Transportation Coalition) session, “Speed to Delivery: Goods Movement’s High-Tech Future”.  We had a fascinating discussion with a panel of experts from Walmart, Caltrans, the California Transportation Commission and Paul Granillo, Kome Ajise, Elizabeth Fretheim, Fran Inman.  One area with 100% agreement is that the Amazon Effect (inclusive of rapid deliveries, small shipments and easy returns) is the expectation. For example, according to Fran, e-commerce is rising, master plan business parks are growing, omni-channel is taking over, the need for flexibility is at an all-time…
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Top Importers & Exporters… E-Commerce Impacts

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According to the Journal of Commerce, the top importers were impacted by e-commerce and that trend is expected to continue. Imports grew by 8% last year (2.2 million TEU) whereas exports grew by 3% (just under a million TEU). The rankings are showing signs of a shakeup with the surge in e-commerce and Amazon. In 2016, Walmart rated #1, Target #2 and then Home Depot and Lowe’s as #3 and 4. For example, the retail industry woes are highlighted by Sears and Walmart. Sears sales slid by almost 10% whereas Macy’s slid almost 4% and Payless filed for Chapter 11 protection…
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8 Hot Trends in Supply Chain

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It has been a week of supply chain immersion. We were knee deep in supply chain trends at MCIE’s manufacturers’ summit, the Supply Chain Summit and the APICS-IE executive panel and networking symposium on emerging supply chain trends. It goes to tell you that it is a hot topic! For a company to be successful, the supply chain cannot be overlooked. As always, it is important to keep our ears open for trends and watch-out’s. Certainly the latest trends were discussed at each event. What were most interesting were those trends in common among all events and speakers: Speed: With Amazon…
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UPS Notes E-Commerce Boom

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According to today’s Wall Street Journal, UPS had robust growth in the third quarter, which was strongly influenced by the e-commerce boom. E-commerce now accounts for about 45% of U.S. packages. Is e-commerce on your radar? I’m on the flight back from Phoenix as I went to meet with a potential ERP selection client and to see my parents. As I told my potential client, e-commerce is a must in any ERP selection project today. According to my recent Amazon Effect research report (which will be live shortly), e-commerce, websites, 24/7 accessibility and order status information have all become musts! One…
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E-Commerce is No Longer an Option

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Are you offering e-commerce options for your customers? If not, you’ll be left in the dust! It is no longer an option for companies if success is an objective. E-commerce eliminates time and distance as barriers – who can afford not to offer customers a way to get “what they want when they want it”? Better yet, it is often at better margins to boot! For example, according to Modern Distribution Management’s 2013 State of E-commerce in Distribution, the number of distributors whose e-commerce revenue comprises 5-10% of total revenue has grown by 50% since last year. Substantial! E-commerce has…
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