Retail industry faces challenges along entire length of supply chain.
The retail industry’s supply chain
faces continuing challenges along its entire length—from the
factories where retailers source their products through delivery to
the consumer, whether the product is purchased at a store, through a
catalog, or, increasingly, via a computer website.
faces continuing challenges along its entire length—from the
factories where retailers source their products through delivery to
the consumer, whether the product is purchased at a store, through a
catalog, or, increasingly, via a computer website.
The industry was hard hit in 2014
and 2015 by congestion at the nation’s ports, especially those on
the U.S. West Coast during the contract negotiations between the
International Longshore and Warehouse Union and its employers.
and 2015 by congestion at the nation’s ports, especially those on
the U.S. West Coast during the contract negotiations between the
International Longshore and Warehouse Union and its employers.
“A lot of those goods came in
late, had to be marked down immediately, didn’t make sales,” said
Jonathan Gold, vice president of supply chain and customs policy at
the National Retail Federation (NRF).
late, had to be marked down immediately, didn’t make sales,” said
Jonathan Gold, vice president of supply chain and customs policy at
the National Retail Federation (NRF).
At the same time, retailers are
having to adjust to changes in how consumers shop, as well as new
trade agreements that can affect where it is most economical to
source goods.
having to adjust to changes in how consumers shop, as well as new
trade agreements that can affect where it is most economical to
source goods.
“There is a lot going on in the
transportation space. That’s a lot of where the retailers’ focus
is certainly,” said Jess Dankert, senior director of retail
operations for the Retail Industry Leaders Association (RILA). “The
one that kind of rises above and is more overarching is the question
of the port congestion and just general ports operations.”
transportation space. That’s a lot of where the retailers’ focus
is certainly,” said Jess Dankert, senior director of retail
operations for the Retail Industry Leaders Association (RILA). “The
one that kind of rises above and is more overarching is the question
of the port congestion and just general ports operations.”
The congestion at West Coast ports
in 2014-15 “put a finer point on some of the issues that need to be
addressed,” she said. There is interest in “benchmarking U.S.
ports against leading ports globally” to find out where
improvements can be made.
in 2014-15 “put a finer point on some of the issues that need to be
addressed,” she said. There is interest in “benchmarking U.S.
ports against leading ports globally” to find out where
improvements can be made.
A provision in the Fixing America’s
Surface Transportation (FAST) Act, signed by President Obama in
December, calls for the creation of a port performance freight
statistics program and appointment of a working group to advise the
director of the U.S. Bureau of Trade Statistics on how, specifically,
performance should be measured.
Surface Transportation (FAST) Act, signed by President Obama in
December, calls for the creation of a port performance freight
statistics program and appointment of a working group to advise the
director of the U.S. Bureau of Trade Statistics on how, specifically,
performance should be measured.
Retailers would like to see “a
more seismic degree of improvement among the ports,” Dankert said.
more seismic degree of improvement among the ports,” Dankert said.
“Collaboration and the cooperation
among ports, terminal operators, carriers, clients, warehouse
operators, 3PLs, and everything else is improving at a really quick
rate right now,” said Ron Marotta, vice president of origin cargo
management for the international division at Yusen Logistics
(Americas) Inc. “You have to talk to all your partners in the
supply chain and, as a 3PL, we’re doing that, our customers are
doing that.”
among ports, terminal operators, carriers, clients, warehouse
operators, 3PLs, and everything else is improving at a really quick
rate right now,” said Ron Marotta, vice president of origin cargo
management for the international division at Yusen Logistics
(Americas) Inc. “You have to talk to all your partners in the
supply chain and, as a 3PL, we’re doing that, our customers are
doing that.”
Marotta said retailers are not only
traveling more to Asia to meet with their supply chain partners, but
when they visit the U.S. West Coast “depending on the carriers that
they use, they will go visit every single terminal operator on the
West Coast that they use.” They will meet with drayage companies,
trucking companies, chassis leasing companies, “all of those
partners, those cogs in the wheel, of the supply chain,” he added.
traveling more to Asia to meet with their supply chain partners, but
when they visit the U.S. West Coast “depending on the carriers that
they use, they will go visit every single terminal operator on the
West Coast that they use.” They will meet with drayage companies,
trucking companies, chassis leasing companies, “all of those
partners, those cogs in the wheel, of the supply chain,” he added.
A report for NRF by
PricewaterhouseCoopers released in 2014, which used 2012 statistics,
found retail accounted directly for 7.7 percent of the U.S. gross
domestic product and 29 million jobs scattered across 3.8 million
establishments. With indirect and induced impacts thrown into the
mix, PwC said retail accounts for 16 percent of GDP and 42 million
jobs—and 11.8 percent of those jobs are in logistics and freight
transportation.
PricewaterhouseCoopers released in 2014, which used 2012 statistics,
found retail accounted directly for 7.7 percent of the U.S. gross
domestic product and 29 million jobs scattered across 3.8 million
establishments. With indirect and induced impacts thrown into the
mix, PwC said retail accounts for 16 percent of GDP and 42 million
jobs—and 11.8 percent of those jobs are in logistics and freight
transportation.
While supply chains are global, Gold
noted they have a big impact on Main Street businesess. About 95
percent of retailers having 50 employees or fewer, and “If anything
happens to the supply chain, it has a bigger impact on those folks
than Walmart,” he said.
noted they have a big impact on Main Street businesess. About 95
percent of retailers having 50 employees or fewer, and “If anything
happens to the supply chain, it has a bigger impact on those folks
than Walmart,” he said.
Long-Distance Problems. Logistical challenges can start
thousands of miles away from the store where the customer buys a
product or has it delivered to his or her home.
New trade agreements like the
pending Trans-Pacific Partnership may influence where a retailer
chooses to source a product.
pending Trans-Pacific Partnership may influence where a retailer
chooses to source a product.
“Retailers have become global in
nature and certainly how they move freight around the world is very
important,” explained Myles O’Brien, chief customer officer for
Toll Global Forwarding.
Companies move freight from one entity to
another to minimize corporate tax rates, “as these free trade
agreements come along, they also have to maximize duty-free
opportunities,” he said.
nature and certainly how they move freight around the world is very
important,” explained Myles O’Brien, chief customer officer for
Toll Global Forwarding.
Companies move freight from one entity to
another to minimize corporate tax rates, “as these free trade
agreements come along, they also have to maximize duty-free
opportunities,” he said.
For example, a U.S. company may make
a product in Vietnam, but then ship it to Hong Kong where it’s
further shipped to various countries around the world, including
Australia. If a new free trade agreement is signed, the company now
may be able to source those Australia-bound goods duty-free directly
from Vietnam, but the retailer also needs to weigh that benefit
against changes to corporate taxation.
a product in Vietnam, but then ship it to Hong Kong where it’s
further shipped to various countries around the world, including
Australia. If a new free trade agreement is signed, the company now
may be able to source those Australia-bound goods duty-free directly
from Vietnam, but the retailer also needs to weigh that benefit
against changes to corporate taxation.
“So there is an onus now on global
retailers to be able to structure their supply chain to maximize both
corporate taxation and duty-free opportunities that arise when new
trade agreements go into place,” O’Brien said.
retailers to be able to structure their supply chain to maximize both
corporate taxation and duty-free opportunities that arise when new
trade agreements go into place,” O’Brien said.
Retailers and other businesses are
uncertain whether shippers will be able to smoothly comply with a new
International Maritime Organization requirement that the verified
gross mass of a container be provided prior to it being loaded on a
ship.
uncertain whether shippers will be able to smoothly comply with a new
International Maritime Organization requirement that the verified
gross mass of a container be provided prior to it being loaded on a
ship.
Retailers are “trying to figure
out what carrier cut-off dates are going to be, what documentation
they are going to need. Everyone is going to do it differently, which
is going to be more of a problem,” Gold said.
out what carrier cut-off dates are going to be, what documentation
they are going to need. Everyone is going to do it differently, which
is going to be more of a problem,” Gold said.
There are unanswered questions for
retailers about how “measurements will be communicated and verified
and declared” and how compliant their suppliers are, O’Brien
said. If shippers do not comply “the freight’s not going to
move.”
retailers about how “measurements will be communicated and verified
and declared” and how compliant their suppliers are, O’Brien
said. If shippers do not comply “the freight’s not going to
move.”
O’Brien compared the challenges of
the new law to the known-shipper regulations that went into effect
after the Sept. 11, 2001 terrorist attacks which eliminated the
anonymous tendering of freight.
“In the lead up to that there
was a lot of confusion, but a lot of the confusion was about what
exactly the requirement was and who was exactly responsible for it
and in reality who would do it,” he said. “So it’s really about
the clarity of the regulations.”
the new law to the known-shipper regulations that went into effect
after the Sept. 11, 2001 terrorist attacks which eliminated the
anonymous tendering of freight.
“In the lead up to that there
was a lot of confusion, but a lot of the confusion was about what
exactly the requirement was and who was exactly responsible for it
and in reality who would do it,” he said. “So it’s really about
the clarity of the regulations.”
Freight rates deteriorated in 2015,
and while carriers were able to push through rates at the end of the
year, Drewry is forecasting that the container-shipping companies are
likely to lose $5 billion in 2016 as the industry is plagued by
overcapacity. It predicted freight rates would continue to drop this
year.
Many retailers sourcing goods in Asia are currently
negotiating service contracts for cargo moving to the United States,
contracts that typically run from May 1 to April 30.
and while carriers were able to push through rates at the end of the
year, Drewry is forecasting that the container-shipping companies are
likely to lose $5 billion in 2016 as the industry is plagued by
overcapacity. It predicted freight rates would continue to drop this
year.
Many retailers sourcing goods in Asia are currently
negotiating service contracts for cargo moving to the United States,
contracts that typically run from May 1 to April 30.
“With spot rates where they are,
it’s in the BCOs’ interest to negotiate early and commit to
longer terms, and that’s, I think, why the carriers made such an
effort to get rates up in January,” O’Brien said. “Having said
that, most customers I speak to don’t want carriers to go out of
business, and the carriers need to get a return on their assets in
order to stay in business.”
it’s in the BCOs’ interest to negotiate early and commit to
longer terms, and that’s, I think, why the carriers made such an
effort to get rates up in January,” O’Brien said. “Having said
that, most customers I speak to don’t want carriers to go out of
business, and the carriers need to get a return on their assets in
order to stay in business.”
There is also uncertainty about the
underlying demand for retail goods.
underlying demand for retail goods.
The Global Port Tracker report
prepared for the NRF by Hackett Associates and released in early
January estimated import container traffic at the nation’s leading
gateways totaled 18.2 million TEUs, up 5.4 percent from 2014.
prepared for the NRF by Hackett Associates and released in early
January estimated import container traffic at the nation’s leading
gateways totaled 18.2 million TEUs, up 5.4 percent from 2014.
Founder Ben Hackett cautioned that
inventory levels remain high, in part because of warm weather that
reduced demand for winter clothing.
inventory levels remain high, in part because of warm weather that
reduced demand for winter clothing.
“We continue to remain concerned
about the high inventory-to-sales ratio,” Hackett said, adding
enough time has passed since the disruption on the West Coast in
2014-2015 “that we can no longer look to that for justification of
the high level.”
about the high inventory-to-sales ratio,” Hackett said, adding
enough time has passed since the disruption on the West Coast in
2014-2015 “that we can no longer look to that for justification of
the high level.”
While imports were relatively robust
in the United States compared with Europe in 2015, the stock market
plunge in early January, should it continue, could cool consumer
demand.
in the United States compared with Europe in 2015, the stock market
plunge in early January, should it continue, could cool consumer
demand.
Port Congestion. Container shipping saw the
announcement in late 2015 of two major mergers expected to be
completed sometime this year: CMA CGM is acquiring APL and the two
large Chinese carriers, COSCO and China Shipping, are combining.
It’s unclear how those mergers
will change the makeup of container-shipping alliances—CMA CGM and
China Shipping belong to the Ocean Three alliance, while APL belongs
to the G6 alliance and COSCO to the CKYHE alliance.
will change the makeup of container-shipping alliances—CMA CGM and
China Shipping belong to the Ocean Three alliance, while APL belongs
to the G6 alliance and COSCO to the CKYHE alliance.
Retailers usually like to spread
their cargo out and have it carried by several carriers or alliances.
their cargo out and have it carried by several carriers or alliances.
“As the industry goes through this
period of consolidation, it takes away sailing options,” Marotta
said. “I hear a lot of the retailers are working closer with their
sourcing groups and trying to plan better and strategically plan in
terms of production.”
period of consolidation, it takes away sailing options,” Marotta
said. “I hear a lot of the retailers are working closer with their
sourcing groups and trying to plan better and strategically plan in
terms of production.”
Another challenge: the growing size
of containerships.
of containerships.
Marotta noted “when that vessel
comes into port they can’t possibly take all that cargo off as fast
as you can unload a smaller vessel. So there is extra time on the
unloading process, on the cargo availability process that everybody’s
dealing with.”
comes into port they can’t possibly take all that cargo off as fast
as you can unload a smaller vessel. So there is extra time on the
unloading process, on the cargo availability process that everybody’s
dealing with.”
“I think it will be important for
big BCOs to have some control or some negotiations to where there
containers are loaded and stowed on these big ships,” O’Brien
said. “If you want to affect how your cargo is stowed on a ship,
you are going to have to be talking to the owner of the ship.”
big BCOs to have some control or some negotiations to where there
containers are loaded and stowed on these big ships,” O’Brien
said. “If you want to affect how your cargo is stowed on a ship,
you are going to have to be talking to the owner of the ship.”
“Until we can push containers out
of the terminals quicker, everyone in this business is concerned
about the bigger ships, how we are going to deal with the volumes,”
said Steve Schulein, vice president of drayage and industry relations
at the 3PL National Retail Systems.
of the terminals quicker, everyone in this business is concerned
about the bigger ships, how we are going to deal with the volumes,”
said Steve Schulein, vice president of drayage and industry relations
at the 3PL National Retail Systems.
Creation of a gray chassis pool in
Los Angeles and Long Beach has helped drayage companies, “but it is
not without some issues,” he said.
Los Angeles and Long Beach has helped drayage companies, “but it is
not without some issues,” he said.
Chassis leasing companies are
working on creating a port-wide chassis pool in New York/New Jersey,
Schulein said. NRS has also purchased chassis to test them for its
own use.
working on creating a port-wide chassis pool in New York/New Jersey,
Schulein said. NRS has also purchased chassis to test them for its
own use.
Congestion at West Coast ports in
2014 and early 2015 resulted in retailers diverting some cargo to
Canadian West Coast ports, such as Vancouver and Prince Rupert, as
well as East Coast ports like New York and Savannah.
2014 and early 2015 resulted in retailers diverting some cargo to
Canadian West Coast ports, such as Vancouver and Prince Rupert, as
well as East Coast ports like New York and Savannah.
“That has not totally gone away…
but the numbers have fallen off as would be expected,” Schulein
said.
but the numbers have fallen off as would be expected,” Schulein
said.
Drewry said in January that “For
the U.S. western seaboard ports, 2015 ended on a much brighter note
than where it started. Head-haul flows from Asia to WCNA (west coast
of North America) in November were registering year-on-year gains of
6.6 percent—only one point behind what the ECNA (east coast of
North America) terminals were achieving. The extent of this current
rebound and of the leveling of demand growth between the two
shorelines is underscored by the 12-month rolling growth average. For
the Asia-WCNA trade, the annual growth rate by the end of November
was barely touching 2 percent whereas the East Coast ports were
steaming ahead at a rate of 17.3 percent.”
Marotta said not all
the business that was diverted from West Coast ports during the
2014-2015 congestion has returned to those ports.
the U.S. western seaboard ports, 2015 ended on a much brighter note
than where it started. Head-haul flows from Asia to WCNA (west coast
of North America) in November were registering year-on-year gains of
6.6 percent—only one point behind what the ECNA (east coast of
North America) terminals were achieving. The extent of this current
rebound and of the leveling of demand growth between the two
shorelines is underscored by the 12-month rolling growth average. For
the Asia-WCNA trade, the annual growth rate by the end of November
was barely touching 2 percent whereas the East Coast ports were
steaming ahead at a rate of 17.3 percent.”
Marotta said not all
the business that was diverted from West Coast ports during the
2014-2015 congestion has returned to those ports.
The Port of Savannah, for example,
has seen its volume “grow far ahead of the market,” and “there
are a lot of retailers, importers, and even manufacturers that have
new DCs (distribution centers) down there. There is more development
going on, and nearly every building for transload is full,” he
said.
Schulein said New York “benefited a lot from the
additional tonnage, but having said that we experienced extensive
lines at various terminals on any day of the week. It was a problem.
Ships were off schedule which definitely impacted the terminals and
the drayage carriers,” because the ships were dumping more volume
at the ports.
has seen its volume “grow far ahead of the market,” and “there
are a lot of retailers, importers, and even manufacturers that have
new DCs (distribution centers) down there. There is more development
going on, and nearly every building for transload is full,” he
said.
Schulein said New York “benefited a lot from the
additional tonnage, but having said that we experienced extensive
lines at various terminals on any day of the week. It was a problem.
Ships were off schedule which definitely impacted the terminals and
the drayage carriers,” because the ships were dumping more volume
at the ports.
Schulein added the drayage industry
continues to have problems in finding qualified drivers. NRS, which
has drayage operations in Los Angeles/Long Beach, New York/New
Jersey, and Savannah, has “an ambitious program, and I know a lot
of our competition has as well, to attract drivers to the business.”
That’s tough because of the delays at terminals and difficulty
getting several trips per day, especially by independent
owner-operators whose income is based on how many loads they can
carry in a day.
continues to have problems in finding qualified drivers. NRS, which
has drayage operations in Los Angeles/Long Beach, New York/New
Jersey, and Savannah, has “an ambitious program, and I know a lot
of our competition has as well, to attract drivers to the business.”
That’s tough because of the delays at terminals and difficulty
getting several trips per day, especially by independent
owner-operators whose income is based on how many loads they can
carry in a day.
NRS has more than 1,200 drivers,
both for drayage and domestic transportation, and he said it is
easier to find drivers for its domestic business than for drayage..
both for drayage and domestic transportation, and he said it is
easier to find drivers for its domestic business than for drayage..
In California, drayage companies
have also been sued by drivers who claim they are employees instead
of independent owner-operators.
have also been sued by drivers who claim they are employees instead
of independent owner-operators.
“There is a very strong move on
the West Coast for more asset-based operations in trucking,”
O’Brien said. Toll now has employee drivers on the West Coast who
are unionized, and “it’s working very well for us. We don’t
have problems, efficiency levels, etc., are good.”
the West Coast for more asset-based operations in trucking,”
O’Brien said. Toll now has employee drivers on the West Coast who
are unionized, and “it’s working very well for us. We don’t
have problems, efficiency levels, etc., are good.”
Free-Time
Reductions. In December, the Port of Long Beach
said it was considering reducing free time for containers at the
port from four days to six shifts. It said the change could encourage
terminals to more consistently operate at night.
“When containers stack up in
terminals, it leads to extra handling that makes the process slower
for longshore workers, the shippers that depend on them, truckers who
move the goods, and ultimately the consumer,” said Jon Slangerup,
the port’s CEO. “This approach will keep the system more fluid
and help avoid congestion.”
terminals, it leads to extra handling that makes the process slower
for longshore workers, the shippers that depend on them, truckers who
move the goods, and ultimately the consumer,” said Jon Slangerup,
the port’s CEO. “This approach will keep the system more fluid
and help avoid congestion.”
Both the Los Angeles Customs Brokers
and Freight Forwarders Association and NRF have weighed in with
strong concerns about the proposal.
and Freight Forwarders Association and NRF have weighed in with
strong concerns about the proposal.
The forwarders said no change should
be made before an analysis is made of the decision for more terminals
to switch to an appointment system for drayage truckers coming to
container terminals before picking up or dropping off cargo.
be made before an analysis is made of the decision for more terminals
to switch to an appointment system for drayage truckers coming to
container terminals before picking up or dropping off cargo.
Gold told Slangerup in a letter that
reducing free time would lead to additional congestion, operational
issues, and potentially additional demurrage costs to retailers.
reducing free time would lead to additional congestion, operational
issues, and potentially additional demurrage costs to retailers.
He suggested a combination of
efforts identified through the supply chain optimization groups that
the ports of Long Beach and Los Angeles have set up were a better way
to speed container traffic.
efforts identified through the supply chain optimization groups that
the ports of Long Beach and Los Angeles have set up were a better way
to speed container traffic.
Appointment Systems. Look for the U.S. Federal Maritime
Commission to continue its examination of port congestion and offer
possible solutions in the coming year. Mario Cordero, chairman of the
agency, said in response to concerns raised by shippers, he is
pressing PierPass, the system that collects fees on cargo moving
through the port during the day to fund truck gates at night and on
weekends to have a third-party audit. The agency has also asked
PierPass for additional information to set up a similar system in
Oakland to fund weekend operations.
Cordero said he is in “lockstep”
with a call by Slangerup for a “PierPass 2.0.”
with a call by Slangerup for a “PierPass 2.0.”
The extended gates and appointment
system at the Port of Vancouver in British Columbia could be a
potential model. Cordero noted queue times for truckers at
Vancouver’s terminals are measured both inside and outside the
terminal, terminals keep consistent hours, and the appointment system
penalizes both truckers and terminals if appointments are not kept.
system at the Port of Vancouver in British Columbia could be a
potential model. Cordero noted queue times for truckers at
Vancouver’s terminals are measured both inside and outside the
terminal, terminals keep consistent hours, and the appointment system
penalizes both truckers and terminals if appointments are not kept.
Groups similar to the L.A./Long
Beach supply chain optimization committees have been set up in
several ports around the country, including New York/New Jersey where
it is called the Council on Port Performance and the Northwest
Seaport Alliance in Seattle and Tacoma where it
Beach supply chain optimization committees have been set up in
several ports around the country, including New York/New Jersey where
it is called the Council on Port Performance and the Northwest
Seaport Alliance in Seattle and Tacoma where it
is known as the executive advisory
council.
council.
Those local efforts are important,
Gold said, because each port operates slightly different.
“We
are all for infrastructure and building and improving the last mile,
but until you fix some operational issues” the flow of cargo
through ports is unlikely to improve, he explained.
As of 2015,
five terminals in the ports of Los Angeles and Long Beach required
truckers to have appointments and an additional five were planning to
require appointments in 2016. Terminals in the Port of New York and
New Jersey are also planning to require appointments.
Gold said, because each port operates slightly different.
“We
are all for infrastructure and building and improving the last mile,
but until you fix some operational issues” the flow of cargo
through ports is unlikely to improve, he explained.
As of 2015,
five terminals in the ports of Los Angeles and Long Beach required
truckers to have appointments and an additional five were planning to
require appointments in 2016. Terminals in the Port of New York and
New Jersey are also planning to require appointments.
“We are in the midst of
implementing a reservation system in the port [of New York and New
Jersey], of which GCT Bayonne will be the first to work with it,”
said John Atkins, president of Global Terminals USA, in January.
implementing a reservation system in the port [of New York and New
Jersey], of which GCT Bayonne will be the first to work with it,”
said John Atkins, president of Global Terminals USA, in January.
Port Newark Container Terminal also
said it was active in discussions of “a port-wide appointment
system with the Council on Port Performance.”
said it was active in discussions of “a port-wide appointment
system with the Council on Port Performance.”
Schulein said it is sometimes
impossible to get desired appointments because all time slots are
booked. He also said containership arrivals are sometimes delayed,
which “puts a lot of pressure on the terminals and will ultimately
impact the scheduling” of appointments.
impossible to get desired appointments because all time slots are
booked. He also said containership arrivals are sometimes delayed,
which “puts a lot of pressure on the terminals and will ultimately
impact the scheduling” of appointments.
And if a truck is delayed and misses
an appointment, it may have to start the process all over again.
an appointment, it may have to start the process all over again.
Schulein said the use of larger
ships is going to require terminals to remain open for longer hours.
While the unloading and loading of container vessels occurs around
the clock, unlike Los Angeles and Long Beach, where terminals offer
night gates for truckers, night and weekend hours are not regularly
offered at New York and New Jersey terminals.
ships is going to require terminals to remain open for longer hours.
While the unloading and loading of container vessels occurs around
the clock, unlike Los Angeles and Long Beach, where terminals offer
night gates for truckers, night and weekend hours are not regularly
offered at New York and New Jersey terminals.
If extended hours are offered,
truckers also need to be able to deliver cargo to warehouses at night
or on weekends.
truckers also need to be able to deliver cargo to warehouses at night
or on weekends.
“California has adapted to night
gates, we haven’t gotten to that point” in the New York region,
Schulein said.
gates, we haven’t gotten to that point” in the New York region,
Schulein said.
More Innovations. “One of the things that we as the
retail industry would like to see more of is the use of innovative
technology to improve operations at ports and facilitate the movement
of cargo,” RILA’s Dankert said. “We’re seeing changes in
consumer behavior, in what consumers want out of the shopping
experience and that’s reflected in the supply chain. The supply
chain is taking on more of a customer-facing role.”
retail industry would like to see more of is the use of innovative
technology to improve operations at ports and facilitate the movement
of cargo,” RILA’s Dankert said. “We’re seeing changes in
consumer behavior, in what consumers want out of the shopping
experience and that’s reflected in the supply chain. The supply
chain is taking on more of a customer-facing role.”
“The big retailers are clearly
going to have to be a lot more flexible—be able to adapt to a more
omni-channel supply chain,” O’Brien said.
going to have to be a lot more flexible—be able to adapt to a more
omni-channel supply chain,” O’Brien said.
A retailer might have transload
facilities, both national and regional DCs and products could be in
any one of those places at any time, he said. A retailer may “want
to get its hands on a particular product no matter where it is along
the chain and be able to pull it out and deliver it. The visibility
tools that you need to be able to do that are extremely important.”
facilities, both national and regional DCs and products could be in
any one of those places at any time, he said. A retailer may “want
to get its hands on a particular product no matter where it is along
the chain and be able to pull it out and deliver it. The visibility
tools that you need to be able to do that are extremely important.”
