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LOGISTICS MANAGEMENT 1 Get Your Daily Fix of Industry News on Logisticsmgmt.Com logisticsmgmt.com Includes: • Transportation Services • Third-party Logistics • Logistics Technology December 2017 ® • Warehouse/Distribution Centers 2018 Buyers’Buyers’ GuideGuide Page 19 23 YEARS OF BUSINESS WITH WALMART REGIONAL CARRIER OF THE YEAR 5 AWARDS IT ALL COMES DOWN TO THE POWER OF ONE. In 2017, we received our 5th Regional Carrier of the Year Award from the world’s largest retailer. While we certainly appreciate the recognition, we’re even more grateful for the people behind it. Because to us, this award is yet another example of what can happen Speaking of partnerships, when the right people come together. The power of teamwork. The power of partnership. scan here to see what Averitt The Power of One. Thank you Walmart and all our Averitt associates. can do for you. AVERITTEXPRESS.COM • 1.800.AVERITT Get your daily fix of industry news on logisticsmgmt.com management UPDATE AN EXECUTIVE SUMMARY OF INDUSTRY NEWS u CBRE report makes the case for on-demand strategies that enable UPS customers to participate in global warehousing. In its “2017 U.S. Holiday Trends Guide,” trade and finance. As for how it would like to leverage block- industrial real estate firm CBRE stated that the most appli- chain technology, UPS said it’s looking at blockchain applica- cable trend on the supply chain and logistics side centers tions for its customs brokerage business operations, with the around what it calls “warehouse space, on demand.” CBRE company focused on digitizing transactions. explained that this trend is being paced by online sales essentially creating instant, short-term demand for warehouse u Time to close the continuity gap. According to a and distribution center space, something it also labeled as a report recently published by the Business Continuity Insti- potential headache for retailers that want to ensure prompt tute and supported by Zurich Insurance Group, almost customer delivery. Pop-up warehouse models work by 75% of organizations have reported having business con- matching short-term industrial space with suppliers, which tinuity arrangements related to supply chain management. has resulted in higher efficiency and lower costs. By matching The report showed that organizations with business con- owners of excess warehouse space with users, or retail ship- tinuity arrangements are eight times more likely to report pers that need it temporarily, it provides a way for both parties greater supply chain visibility, twice more likely to insure for to “easily match both sides of the transaction…with greater supply chain losses, and three times more likely to display transparency and fewer costs to the process.” top management commitment. According to the report, this behavior coincides with other areas of good practice, u XPO opens up eight new last-mile hubs. Last especially organization-wide reporting of disruption, which month, XPO Logistics said that it completed the opening increases supply chain visibility. Another important result of eight last-mile logistics hubs in advance of Black Friday outlined by the report is the use of technology and Big on November 24. These new XPO hubs are based in Bir- Data to overcome skills and resources gaps in supply chain mingham, Ala.; Buffalo, N.Y.; Jacksonville, Fla.; Los Ange- management. However, the report does show that 63% of les, Calif.; Milwaukee, Wisc.; Savannah, Ga.; Tulsa, Okla.; organizations do not use any technology to analyze, track, and Washington, D.C., bringing the total number of XPO and monitor the performance of their supply chains. North American last-mile network hubs to 53, with plans to add another 30 next year. XPO’s last-mile service facili- u Ports need to go even more digital. A group of lead- tates more than 13 million deliveries on an annual basis. ing ports from around the globe recently wrapped up a “We’re anticipating strong demand this holiday season, two-day meeting in Los Angeles as part of a maritime col- as more people are purchasing heavy goods online,” said laboration called chainPORT, a far-reaching initiative estab- Troy Cooper, XPO chief operating. “Our last-mile expan- lished in 2015 to digitally connect ports worldwide and boost sion is directly related to the rapid growth of e-commerce efficiency within the global maritime supply chain. The Port and omnichannel retail. The scale of our network speeds of Los Angeles and Hamburg Port Authority in Germany fulfillment, while our technology gives retailers, e-tailers and are leading the chainPORT initiative in collaboration with the consumers control over the shopping experience.” Global Institute of Logistics. Other ports participating in the third annual meeting are Shanghai, Antwerp, Barcelona, u UPS becomes a member of the Blockchain in Montreal, Felixstowe, Indonesia and Shenzhen. “Historically, Trucking Alliance. UPS said that is has joined the Block- ports were measured on their ability to accommodate ships chain in Trucking Alliance, which is a forum for the develop- and other modes of transport effectively and efficiently,” said ment of blockchain technology standards and education for Kieran Ring, CEO of the Global Institute of Logistics. “How- the freight sector. The company stated that it sees the need ever, increased international trade and the global economic to create industry standards and protocols to enable block- environment have given rise to a new breed of customers chain platforms to operate together with established tech- who demand optimum flexibility, efficiency and transparency nologies. Looking forward, it said that blockchain standards in their dealings with ports.” and intercompany collaboration will support the logistics Continued, page 2 LOGISTICSMGMT.COM DECEMBER 2017 | LOGISTICS MANAGEMENT 1 Get your daily fix of industry news on logisticsmgmt.com management UPDATE AN EXECUTIVE SUMMARY OF INDUSTRY NEWS u FedEx/Walgreens announce a package pickup/ and shippers to amend NRAs; and, finally, allowing the drop-off partnership. FedEx and national drugstore chain act of tendering cargo to be considered acceptance of a Walgreen Co. are collaborating on FedEx package pickup rate under the terms of an NRA. The NPRM will include a and drop-off services, which are now available at more specific request for public comments addressing whether than 7,500 U.S.-based Walgreens stores. FedEx officials the Commission should expand the NRA rules to allow said that this Walgreens rollout is part of the nationwide inclusion of non-rate economic terms. A crucial element of expansion of FedEx OnSite (ONSE), a network of retail the agreement review and analysis process is the ability to locations offering FedEx pick up and drop off services, access the data collected by the Commission through its including the ability to hold packages for up to five busi- on going monitoring activities. ness days. And along with the more than 7,500 participat- ing Walgreens locations, FedEx said customers can also u Use of analytics to mitigate fraud jumps. According find FedEx OnSite in select Albertson’s and Kroger grocery to a recent Deloitte poll, use of analytics to mitigate third- stores. Customers can redirect packages to a FedEx party supply chain fraud, waste and abuse risk jumped to OnSite location or other FedEx hold locations, includ- 35% in 2017 from 25.2% in 2014. Between those years, ing more than 1,800 FedEx Office locations, using FedEx an average of 30.8% of poll respondents reported at least Delivery Manager. one instance of supply chain fraud, waste and abuse in the preceding year. However, some industries saw higher and u IoT gaining ground faster than you think. Bsquare, lower rates of financial abuse. For the third time in four years, a provider of Industrial Internet of Things (IIoT) services, consumer and industrial products professionals reported the recently released the findings from its first annual “IIoT highest level of supply chain abuse for the past 12 months Maturity Study” that explores the current IoT adoption (39.1%), a slight decline from 2016 (39.6 %). Energy and progress of business buyers in manufacturing, transporta- resources (34.7 %) respondents also reported a higher than tion and oil and gas markets. According to the 2017 study, average rate of financial abuse in 2017, dropping a bit from 86% of industrial organizations are currently adopting 2016 (35.9%). Life sciences and health care professionals IoT solutions and 84% believe those solutions are very or noted a marked decline in 2017 (26.3%) from 2016 (36.9%). extremely effective. In addition, 95% believe that IoT has a significant or tremendous impact on their industry. How- u ONE alliance announces deal. XVELA, a Cloud col- ever, the study also shows that most IoT investments are laboration platform for ocean carriers and terminal opera- focused on connectivity (78%) and data visualization (83%). tors, announced that Ocean Network Express Pte. Ltd. In addition, only 48% are doing advanced analytics on that (“ONE”) has selected XVELA’s next-generation collabora- data and only a small number (28%) are automating the tive stowage service to meet its stowage planning needs. application of insights derived from analytics. With the ONE service scheduled to begin April 1, 2018, ONE stowage planners will migrate to the full XVELA u Regulatory reform steps taken. The Federal Mari- Cloud-based service, enabling improved communica- time Commission (FMC) took an important step in its regu- tion, transparency and operational efficiency both within latory reform efforts last month when it voted
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