Elon Musk unveiled a prototype of an electric Tesla Truck on November 16th. Over the Thanksgiving holiday the pricing was announced. It’s not pretty. The base price of the 300-mile range Tesla Semi is $150,000, and the 500-mile range model costs $180,000. That’s almost double the base price of a traditional semi truck according to CostOwl. There are real doubts on whether this truck can win in the marketplace. This is a Class 8 truck, […]
My colleagues and I often mention our current research projects in our blog posts, and proceed to note some of the findings or even just some of the considerations at hand. In a recent post, I mentioned “Analysts at ARC Advisory Group receive periodic inquiries from potential investors such as private equity firms and venture capitalists looking to get a better feel for a technology market.” It occurred to me that many Logistics Viewpoints readers […]
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Selecting a transportation management system (TMS) is no easy feat. In other articles, my colleagues have discussed key considerations when choosing a TMS, such as why RFPs aren’t generally helpful and the difference between deployment options. After the work of selecting a TMS comes the no less rigorous step: implementation. During a TMS implementation, there are some phases during which an organization can set itself up for an improved ROI down the road. Initial steps […]
On Wednesday, a painting by Leonardo da Vinci was sold at auction at Christie’s in New York City for a record-shattering amount. While there are only about 20 known surviving da Vinci paintings, “Salvator Mundi” is the only one that is in private hands. The painting was once thought to be a copy, and sold for about $60 in the 1950’s. It resurfaced at an estate sale in 2005, and a consortium of American art […]
Is Your Supply Chain Ready for Reverse Logistics? Three Critical Questions to Ask to Reach Your Goals in 2018
Two steps forward – one step back. This old catchphrase is fitting for the current state of ecommerce and reverse logistics. The constant growth and rapid evolution of ecommerce is heightening the volume of returns. In 2016 alone, the ecommerce return rate was 30 percent, compared to under 10 percent of brick and mortar sales (Invesp). Retailers recognize that this number is quickly, and inevitably, rising. Yet, most treat reverse logistics as an afterthought, focusing […]
The global transportation management systems (TMS) market is an area that is poised for growth. As I’ve written about in the past, one of the major trends that is driving TMS adoption is the strong, proven ROI associated with an implementation. ARC survey on the ROI of TMS found that respondents indicated freight savings of approximately 8 percent with the use of a TMS application, which is a 2 percent improvement from the last time […]
The United States exported $2.2 trillion dollars of product in 2016, making it the third largest world exporter after China and the European Union.[i] Much of this is due to the easing of export controls over the past five years by the Department of Commerce Bureau of Industry and Security (BIS) in cooperation with other federal agencies. That’s great news for US companies seeking to expand their sales beyond the domestic market. Yet still, the […]
ARC did a survey designed to uncover just what practices contribute to success in running a warehouse. A successful warehouse was defined as a warehouse that is productive, safe, contributes to high customer service, and retains its employees. In looking for best practices, we were looking at what high-performing warehouses were doing that is different from other distribution operations.
We’ve all done things that we probably either regret or, at the very least, know we shouldn’t have done. This is true in both our personal lives and our work lives. However, I recently saw an article that epitomizes this scenario. A Nevada Department of Transportation employee is under investigation for violating the rules of his job. His main responsibility is to test employees suspected of on-the-job substance abuse. What did he get in trouble […]
Taking their lead from UPS, FedEx, and other parcel carriers, LTL freight carriers are starting to supplement traditional NMFC class-based rating and are applying space-based (also referred to as “dimensional” or “dim weight”) rating to freight in an effort to maximize the cubic utilization of vehicles. This change has many shippers guessing about what to quote for shipping costs because they don’t know what the weight and dimensions of a shipment will be until they […]
The phrase “retailer headwinds” caught my attention last week. I came across the phrase used by a number of sources that attributed soft comparable sales or difficult market conditions to these “headwinds.” The repetitive use of this phrase was especially relevant because I am currently researching the global warehouse automation market and the retail segment accounts for such a large percentage of global warehouse automation sales. In fact, ARC estimates that the retail sector accounts […]
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What will happen to truck capacity when the Electronic Logging Device (ELD) Mandate is finally enforced this coming December? The ELD mandate will help to standardize Hours of Service (HOS). Paper logs can be manipulated easily, with some drivers running multiple books or delaying start times, to drive more hours than legally allowed. This would help a driver deliver loads more quickly and move more loads over a given timeframe. There will be many drivers […]
Machine learning engines can take data on forecast accuracy and use that data to automatically improve the forecast model. However, three is a rub. Lost sales is a key piece of data on the accuracy of the forecast, but lost sales is generated with a demand forecast. This is circular reasoning. But that does not mean this analysis is without value.
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Rail freight is losing market share to faster and more reliable modes. Better technology can be part of the solution.
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For the first time in franchise history, the Houston Astros are world series champions. The Astros outlasted the LA Dodgers in a thrilling seven game series to bring home the crown. As soon as that final out was made, the real planning began. And no, I’m not talking about how the Astros can build off of this year’s team in free agency to defend the title next year. I’m talking about the victory parade. There […]
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Now that Halloween is behind us, the time has come to focus on bigger things: the 2017 holiday season. Retail imports have been on the rise as the industry braces for the busiest time of the year. The National Retail Federation’s (NRF) latest projections call for a 3.6 to 4 percent increase in holiday sales for 2017 over the same period in 2016. That makes for a total of $678.75 billion to $682 billion, up […]
The challenges of omni-channel retail are not new. By now, the difficulties of executing on the omni-channel retail promise are well-known, as is the importance of delivering on this promise for consumers whose demands continue to rise. E-commerce advances, both in terms of market share and technology, have created the expectation that consumers can receive their purchases when and how they want them, no matter what they’re after – “out of stock” is an unacceptable […]
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