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A brand-new Logistics Report stresses that logistics networks are not shaped to handle the rapid-delivery demands of the growing e-commerce demand.
According to the 27th annual State of Logistics report, “gaps” in infrastructure and “accelerating trends for speed” will increasingly put pressure on a logistics systems not designed for e-commerce driven “last mile, last minute” delivery service.
“Consumer expectations are changing. They want their products delivered fast and they don’t want to pay a lot of money for delivery,” says president of Penske Logistics, Marc Althen, in the annual report. “Shippers are struggling to meet the challenges these expectations create.”
VIDEO - 2016 CSCMP State of Logistics Report - Part 1 of 2
Sean Monahan, a logistics expert of the A.T Kearney consultancy firm, and co-writer of the report, furthermore described how the Logistics Industry will enter a 'new era' in the upcoming decade that will be severely effected by multiple disruptive forces. Among these forces are self-driving trucks and cars, drones, 3D printing and the ever-increasing influence of the Internet of Things (IoT).
VIDEO - 2016 CSCMP State of Logistics Report - Part 2 of 2
Transportation Management and Logistics Visibility
Monahan also envisioned that the market demands increased logistics visibility and (cost) control into all transportation management activities to ensure ongoing logistics costs optimization. Monahan describes the following other forces, including:
1. Technologies that will create step-change efficiencies in connectivity, labor, and assets;
2. Macroeconomic trends that will dictate new trade flows;
3. Consumer requirements that will stretch capabilities;
4. The aforementioned operational constraints that will change the rules of the game.
About the 27th annual State of Logistics report
The 27th Annual State of Logistics Report was released by the Council of Supply Chain Management Professionals (CSCMP) at a press conference on June 21, 2016, at the National Press Club in Washington, D.C. The report reveals total U.S. business logistics costs rose to $1.48 trillion in 2015, a 2.6 percent increase from the previous year, which represents a considerable slowdown from previous years.
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ControlPay, active since 2002, is a global freight audit company with its headquearters in Breda, the Netherlands.
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