RightChain™ on Supply Chain
2018 | Volume I

Every so often there is a confluence of events and timing that allows us to cut RightChain(TM) Research loose on the current trends. There seems to be an inflection point in multiple dimensions and eventually coagulate into themes strong enough to paint words and pictures into coherent collections of headlines that we compile into trends. We call that RightChain(TM) on Supply Chain. The latest edition is here including commentary on the shifting sands of logistics landscapes, the relentless pressure of the Amazon, the tsunami of automation, and .... just back from the Middle East.... 

 
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URBANISTICS

The logistics landscape is rapidly transforming from a two-tiered to a three-tiered world with third tier locations in some unusual places like vacated anchor stores in vacated shopping malls and city centers. We recently coined the term Urban Center Distribution Center (UCDC) to reflect the nature of new logistics facility roles and locations in a variety of our supply chain strategy projects.

- Dr. Ed Frazelle, President and CEO

  • Goldman Sachs Asset Management PRE and DHph team up for multi-story facility in New York

  • More Signs that US Distribution Centers May Go Multi-Story

  • Sam's Club closing dozens of stores; some being converted to distribution centers

  • Walmart is abruptly closing 63 Sam's Club stores and laying off thousands of workers

  • Rakuten Super Logistics Expands Fulfillment Operations with New Facility in Northeast US

 
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RISING RATES

Freight and real estate rates are increasingly rapidly as the economy heats up, especially in congested urban areas.

- Dr. Ed Frazelle, President and CEO

  • DAT sees a growth spurt in spot truckload rates compared to contract rates

  • Demand in the global air cargo supply chain remains “robust"

  • U.S. warehousing market remains solid (A&A)

  • Rising US Transportation and Logistics Costs are Hitting the Corporate Bottom Line

  • Demand in the Global Air Cargo Supply Chain Remains “Robust”

  • January non-manufacturing activity is strong (ISM)

  • JLL calls 2017 a ‘banner year’ for U.S. industrial real estate market activity

  • With surface transportation tight on highays, rails, shippers sweat to secure space

  • Trucking Companies Ordered Most Big Rigs In 12 Years

  • Logistics Hiring Surges on Online Sales Fulfillment

  • Tyson Sees Meat Prices Rising With Freight Costs: ‘Ultimately, the Consumer’s Going to Pay’

  • Warehouse construction surge lifts industrial land prices in U.S. logistics markets

 
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Blockchain

The Blockchain train is picking up steam. Will it meet a surreptitious end ala its bitcoin relative or will it become the new standard in supply chain digitization? We are advising our clients at very least to get close enough to see it and understand it. 

- Dr. Ed Frazelle, President and CEO

  • BNSF joins blockchain group

  • Agility Logistics to deploy Maersk/IBM blockchain platform

  • Blockchain in Transport Alliance partners with finance trade group

  • TBSx3 Launches Blockchain Consortium with DB Schenker and DP World to Protect Global Supply Chains

  • Blockchain: The 2018 Disruptor of the Year

 
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DE-HUMANIZING

Whether it's replacing human participation in transporting and handling goods or information, there is tsunami-like momentum behind the current wave of supply chain automation. Every supply chain strategy project we are currently engagement in involves the application of automation to various aspects of the physical and digital supply chain.

- Dr. Ed Frazelle, President and CEO

  • Amazon Receives Patents for Picking and Putaway by Wristband

  • Advanced Robotics Developments Produce Game-Changing Innovations for Material Handling 

  • Automated trailer loading, unloading system helps move billions of pounds annually

  • Braun and Schicke to head VW’s digital logistics divisions (AL)

  • Daimler Trucks goes digital on spot freight (AL)

  • Amazon unveils smart convenience store sans checkouts, cashiers (ST)

 
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Amazonian

The Amazon effect just won't quit. As it was with Wal-Mart before, the disruptive forces won't let anyone in the supply chain world rest. Just like there are reports of Whole Foods' employees in tears trying to keep pace with demands of store logistics; I recently had a call from a high level supply chain professional who was in tears for similar reasons - they were forced to provide nearly 100% fill rates while dramatically cutting inventory, slashing costs, reducing headcount, and shrinking cycle times. The call was as much personal as professional in nature. I recommended a book titled Boundaries to help them cope with the professional and personal stress. The book basically teaches how and when to say YES and NO; excellent advise no matter the context. As I explained to a colleague recently, we basically help our clients put numbers and words to YES and NO in crafting their own supply chain service strategies.

- Dr. Ed Frazelle

  • Amazon Receives Patents for Picking and Putaway – by Wristband?

  • Amazon Begins Grocery Delivery from Whole Foods Market

  • Amazon to Launch Delivery Service That Would Vie With FedEx, UPS

  • Getting Your Product on Shelves at Whole Foods Just Got Harder

 

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TIME VICE

What Peapod pioneered long ago, Amazon Whole Foods is launching.... one hour delivery of groceries to the home... Same-day delivery.... Curbside pickup.... 

- Dr. Ed Frazelle, President and CEO

  • Goldman Sachs Asset Management PRE and DHph team up for multi-story facility in New York

  • Keeping Pace with Walmart’s On-Time Delivery Requirements

  • XPO Logistics Extending Home Delivery Service to Europe

  • Wal-Mart Tightens Delivery Windows for Suppliers

  • The Customer Experience: The Last Mile Gets the Royal Treatment

  • Sam's Club closing dozens of stores; some being converted to distribution centers

  • Walmart is abruptly closing 63 Sam's Club stores and laying off thousands of workers

  • Kroger, Walmart Lure Shoppers with Curbside Pickup

  • Rakuten Super Logistics Expands Fulfillment Operations with New Facility in Northeast US

 


SOURCES

Automotive Logistics (AL)

Inbound Logistics (IL)

Industry Week (IW)

Logistics Management (LM)

Modern Materials Handling (MMH)

Supply Chain Digest (SCD)

Seattle Times (ST)

Wall Street Journal (WSJ)