Author Archive for Clint Reiser

A New and Better Way to Manage Freight Trucking Risk?

I was recently informed of the new start-up company named TransVix that is developing a US trucking futures exchange market. Admittedly, my logistics research is focused more on warehousing than on transportation. However, I do have a solid understanding of both logistics and financial markets, and of financial derivatives such as forward contracts and futures. So I thought I would take this opportunity to discuss the concept of trucking futures and provide my perspective, and […]

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Trump, Trade, Transportation, and the Protectionist’s Dilemma

Richard Peretz, UPS CFO, was on CNBC yesterday morning discussing the company’s most recent earnings release. The interview addressed a number of prominent topics in the logistics world. First of all, he noted the ongoing increase in B-to-C as a percentage of UPS’ overall business, and as we have stated repeatedly on Logistics Viewpoints, this is driven by the boom in e-commerce. Secondly, he noted the company’s ongoing investment in the automation of its US […]

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Warehouse Automation & Control System Growth Drivers

ARC Advisory Group conducts an in-depth analysis of the global warehouse automation and control (WAC) market. The research process includes the analysis of large amounts of information and interviews with executives from numerous warehouse automation companies. The process concludes with the publication of ARC’s global Warehouse Automation & Control Market Research Study, which analyzes the market shares across numerous segments of the market, defined by criteria such as geographic region, end-user industry, load-size, and more. […]

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How The Warehouse Automation Market is Evolving to Meet Practitioners’ Needs

The warehouse automation market has certainly evolved over the last two years. Thankfully, I believe most of the changes are advancements that allow suppliers to better meet customers’ needs. I will categorize the market’s evolution into three high-level categories – more holistic solutions, greater system adaptability, and greater system intelligence. Warehouse automation vendors have purchased other companies within the industry to expand their offerings, with recent examples including Dematic’s acquisition of SDI Group, obtaining its garment-on-hanger system, and Vanderlande’s acquisition of Dinamic, extending its portfolio of conveyors. The rapid growth of e-commerce; the heterogeneous nature of today’s items, orders, and loads; and the unpredictable business environment have made system adaptability and fulfillment flexibility increasingly important to fulfillment operations. Shuttle systems have been the ideal solution to meet these needs.

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Mexico – The Land of Sunshine, Tequila, and.…Automated Warehouses?

During my discussions with warehouse automation suppliers and WMS suppliers, Mexico was frequently noted as a strong spot within an otherwise weak Latin America region. Warehouse automation vendors didn’t really point to an overarching factor driving sales to companies in Mexico. But WMS suppliers informed ARC that the WMS selling environment in Mexico remains favorable due to increased nearshoring efforts by US companies. Multinationals care more than ever about agility in their supply chain, as China’s costs increase, Mexico’s proximity is becoming more appealing. I dug further into macroeconomic reports to see if there were additional insights to be obtained. I came across the Department of Commerce 2016 Top Markets Report on the Cold Chain in Mexico. This report states that Mexico’s supermarkets have been growing at a rapid pace.

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SingPost – A Smart Transformation to E-Commerce Logistics Solutions

Two decades ago, I didn’t know postal operators in foreign countries unless I had a pen pal in the region. The role and range of services offered by postal companies have changed considerably since the advent of e-mail, the internet, and most importantly, the exponential growth of e-commerce. Singapore Post (SingPost) is one such domestic provider that has been in the press for its increasing presence in today’s digital economy. In 2014, Chinese e-commerce giant […]

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Measuring the Changing Technology Requirements in Today’s Warehouse

Earlier this month I wrote an article about the changing warehouse order profile. That article presented data and discussed findings from ARC Advisory Group’s warehouse practitioner survey conducted in partnership with DC Velocity earlier this year. The overarching theme of the findings is that the ongoing transformation in the fulfillment environment is quickly shifting order profiles and warehouse operations. Adaptability and responsiveness are becoming more important and direct-to-consumer fulfillment is expected to increase extensively, as is the […]

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Quantifying the Changing Warehouse Order Profile

My colleagues and I have written a number of articles about the widespread growth of e-commerce and its effect on distribution operations. Many companies are opening new facilities for e-commerce fulfillment and others are using traditional replenishment facilities to fulfill e-commerce orders as well. It’s well-known that e-commerce growth is affecting the requirements placed on many organizations. But to what degree is the movement of goods through the supply chain shifting? And to what degree […]

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In Defense of Global Trade

Logically enough, the majority of Logistics Viewpoints (LV) readers work in the logistics field. And LV is a logistics industry blog, not a political op-ed site. However, I believe the issue of global trade is both a core logistics topic and a hot political one. Furthermore, the presidential candidates from both major parties have been denouncing international trade as of late. I actually believe both candidates are supporters of free trade, whether it be domestic or international. […]

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Is Oracle’s Acquisition of Logfire a Cloud-WMS Inflection Point?

Oracle recently announced a definitive agreement to acquire Logfire, a Cloud WMS provider. Last year I explained that Cloud WMS deployments still remain limited compared to Cloud adoption of other supply chain software (I am using the term “Cloud” to represent single instance, multi-tenant solutions). And with good reason. WMS is a real-time application that requires quick response times to function properly. In addition, a WMS solution supports processes often confined to a single facility. […]

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