Skip to content
Search AI Powered

Latest Stories

Direct Connection

A mixed bag

The U.S. economy is growing. However, logistics capacity has not been able to keep up with increased demand, and costs are rising.

In June, the Council of Supply Chain Management Professionals (CSCMP), along with Penske Logistics, presented its annual "State of Logistics Report" in Washington, D.C. This year's report, authored by management consulting company A.T. Kearney, shows the challenges that carriers and shippers are facing as they try to adjust to market shifts that haven't been seen in years.

On the good news side of the equation, the U.S. economy is roaring back to life. U.S. gross domestic product (GDP) grew by 2.9 percent in 2017. The robust economy, however, is creating an increase in demand for logistics services, and in every sector,supply has not been able to keep up, according to the report.Meanwhile costs are on the rise. The report also found that U.S. business logistics costs increased 6.2 percent last year due in part to rising interest rates, a tight labor market, and higher fuel prices.


At the same time, old business models are being challenged by new demand patterns and competitors. The rise of e-commerce has radically changed customers' expectations for how and when they receive products and services. The report, for example, touches on the growing importance of last-mile delivery and same-day service.

Now more than ever, to compete in today's market you'll need a fully digital, connected, and flexible supply chain. Technology will play a key role in improving fulfillment and driving efficiency in this new environment, particularly in the areas of autonomous mobile robots, artificial intelligence, freight "Uberization," and blockchain. The report provides an innovation grid spanning from 2018 to 2028, laying out future and potential trends to keep an eye on.

How can CSCMP help you meet these challenges? The 2018 "State of Logistics Report," which outlines these trends, is complimentary for all CSCMP members as an exclusive member benefit and is available for purchase by nonmembers. I invite you to visit cscmp.org, click on the development tab, and select the "State of Logistics Report" under reports and surveys for more information.

Also, our EDGE conference will help you learn more about innovative technologies and practices that will help you compete in this changing world. It also will provide you with an opportunity to network face-to-face with supply chain leaders who are dealing with the same challenges as you are. You can learn where they succeeded and where they failed, and then go back home re-energized for making the leap forward.

Recent

More Stories

A computer-generated image with a series of document icons represented in a curve against a sweep of digital text and maybe the lights of highway or circuitboard below.

How Gen AI can be used to standardize distribution processes and procedures

Documented processes and procedures are an important aspect of any successful distribution operation. Without process documentation, product gets shipped and not billed, customer orders and items get lost, and employees get upset. Distribution outfits need some form of step-by-step manuals, workflow diagrams, or digital instructions to ensure that operations run smoothly, consistently, and efficiently. However, creating and updating these documents has, historically, been time-consuming and resource-intensive.

Generative artificial intelligence (Gen AI)—a subset of AI that can create content, such as text, images, videos, and other media—can help. This cutting-edge technology has the potential to streamline the process of creating documented processes and procedures. As a result, it can become a cornerstone for companies looking to optimize their distribution operations, streamline training processes, and provide a superior customer experience. What once seemed like a distant futuristic possibility is now a crucial tool for the modern distribution industry.

Keep ReadingShow less

Featured

US customs agent inspecting agricultural goods

Industry groups: Reciprocal tariffs show “incomplete thinking”

As the Trump Administration threatens new steps in a growing trade war, U.S. manufacturers and retailers are calling for a ceasefire, saying the crossfire caused by the new tax hikes on American businesses will raise prices for consumers and possibly trigger rising inflation.

Tariffs are taxes charged by a country on its own businesses that import goods from other nations. Until they can invest in long-term alternatives like building new factories or finding new trading partners, companies must either take those additional tax duties out of their profit margins or pass them on to consumers as higher prices.

Keep ReadingShow less
ATRI releases annual list of nation’s top truck bottlenecks

ATRI releases annual list of nation’s top truck bottlenecks

New Jersey is home to the most congested freight bottleneck in the country for the seventh straight year, according to research from the American Transportation Research Institute (ATRI), released today.

ATRI’s annual list of the Top 100 Truck Bottlenecks aims to highlight the nation’s most congested highways and help local, state, and federal governments target funding to areas most in need of relief. The data show ways to reduce chokepoints, lower emissions, and drive economic growth, according to the researchers.

Keep ReadingShow less
photo of various colored umbrellas

Do you know a Rainmaker?

Know someone who is making a difference in the world of logistics? Then consider nominating that person as one of DC Velocity’s “Rainmakers”—professionals from all facets of the business whose achievements set them apart from the crowd. In the past, they have included practitioners, consultants, academics, vendors, and even military commanders.

To identify these achievers, DC Velocity’s editorial directors work with members of the magazine’s Editorial Advisory Board. The nomination process begins in January and concludes in April with a vote to determine which nominees will be invited to become Rainmakers.

Keep ReadingShow less
chart of warehouse rents

Colliers: warehouse construction rates return to pre-pandemic levels

It’s getting a little easier to find warehouse space in the U.S., as the frantic construction pace of recent years declined to pre-pandemic levels in the fourth quarter of 2024, in line with rising vacancies, according to a report from real estate firm Colliers.

Those trends played out as the gap between new building supply and tenants’ demand narrowed during 2024, the firm said in its “U.S. Industrial Market Outlook Report / Q4 2024.” By the numbers, developers delivered 400 million square feet for the year, 34% below the record 607 million square feet completed in 2023. And net absorption, a key measure of demand, declined by 27%, to 168 million square feet.

Keep ReadingShow less