The Council of Supply Chain Management Professionals (CSCMP) has released its
2016 State of Logistics Report. According to Jeff Berman, writing at
Logistics Management:
Among the report’s key conclusions is the logistics industry is entering a new era. The report predicts over the next decade, the logistics industry will face “disruptive forces,” including technology and operational constraints that threaten to fundamentally change the rules of the game.
It may already be starting. Motor carriers are experiencing rate weaknesses, especially in the $278 billion truckload market, as temporary overcapacity has given shippers some pricing power. The report concluded that TL rates and demand for transportation are “soft, and continue to fall.”
While this is occurring, the TL sector copes with nearly 100 percent driver turnover as the truck driver shortage continues. “Despite softening demand and slower rates, competition for drivers remains intense,” the report concludes.
There are bright spots for asset providers, however. The $82.2 billion parcel and express sector, fueled by double-digit growth in B2C online commerce, continues to grow. Its main drivers are the “explosion” of B2C e-commerce and omni-channel retail, the report says.
The revolution in ecommerce depends on agile, adaptable, affordable surface transportation. Even as ecommerce explodes, many traditional delivery mechanisms are taking-water. Because the traditional Truck Load providers are being replaced by non-traditional alternatives? Because parcel delivery is the ecommerce center of gravity? Because LTL is rising? Because
inventory costs are creeping up. Because
speed-to-market is becoming more important than cost-saving? Because [insert your best guess]?
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