Archive for Statistics

Machine Learning in Today’s Warehouse Management Systems (WMS)

While speaking with a number of WMS product managers, I began to notice that machine learning was called out as a focal point for WMS product development efforts. In general, machine learning is a hot topic in the world of supply chain technologies. Just last week, Chris Cunnane wrote about machine learning for transportation execution. And Steve Banker recently wrote  about Vecna Robots use of machine learning to improve its vision system. Naturally, I wanted […]

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Mid-Year Logistics Industry Review

US GDP grew at about a 2 percent annual growth rate in the first half of the year. The logistics and warehousing industry grew at a tepid rate in the first quarter. But this is positive when compared with the Q1 performance of recent years when the industry actually contracted, likely due to atypical seasonality. According to US Census data, US exports in the first half of 2017 totaled $763.6 billion, representing a 7.3 percent increase over the total for the first half of 2016. According to US Census data, US exports in the first half of 2017 totaled $763.6 billion, representing a 7.3 percent increase over the total for the first half of 2016.

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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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The Halloween Supply Chain

Halloween is a short 12 days away, and spending for the holiday is soaring. According to the National Retail Federation’s (NRF) annual survey conducted by Prosper Insights & Analytics, total spending for Halloween is expected to reach $8.4 billion this year. This marks an all-time high in the survey’s 11-year history. US consumers are expected to spend an average of $82.93 on Halloween this year (based on 171 million Americans planning to celebrate Halloween), which […]

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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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Enterprise Software Market Returns to Growth in Second Quarter

ARC Advisory Group (www.arcweb.com) monitors and analyzes the enterprise software market on a quarterly basis. We track the revenues of thirteen prominent publicly traded enterprise software companies and translate financial results reported in foreign currencies to US dollars using an average exchange rate for the given reporting period. Many of these companies are supply chain technology vendors such as Descartes Systems, Manhattan Associates, and Logility. Others have a broader focus that includes logistics software. These […]

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AI May take Over the World, but it won’t Improve Forecasting

But before AI does take over the world, can supply chain practitioners use AI and cognitive computing technologies to improve supply chain operations? Don’t hold your breath.

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Enterprise Software Suppliers Exhibit Mixed Results in Q1 2016

ARC Advisory Group (www.arcweb.com) monitors and analyzes the enterprise software market on a quarterly basis.  We track the revenues of fifteen prominent publicly traded enterprise software companies and translate financial results reported in foreign currencies to US dollars using an average exchange rate for the given reporting period. The suppliers’ reporting period for this analysis is the quarter ended March 2016, unless stated otherwise. The suppliers included in this report recorded combined quarterly revenue of $21.3 […]

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Ten Years of Logistics Technology Trends

Last week I read the Logistics Viewpoints guest post by Chainalytics discussing the pitfalls of decision-marking biases. Although the Chainalytics article focuses on supply chain decision making, these biases can apply to business forecasting as well. Reading this article made me interested in my own potential decision-making biases. I chose to take time on Friday to review some of the research I have conducted during my ten years as an analyst at ARC Advisory Group. […]

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Moving Beyond Madness to Methods in Supply Chain Decision Making

Data models provide insights, but humans make decisions, and those decisions are not always rational. Behavioral economics research explores the nature of human decision-making, biases –like the “anchoring effect”, a common tendency to rely too heavily on the first piece of information when making decisions — and how seemingly unrelated things influence our decisions. We’re here to report that the anchoring effect is alive and well in almost every transportation procurement decision. But why is […]

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