Chain links: What we’re reading this week

The high cost of not updating your DC. Supply chain innovation in an Obamacare world. And how supply chain trends are affecting the pallet market.

 

The high cost of not modernizing your DC

A sharp increase in orders should be a boon for any company. In reality, it could result in chaos if your distribution center proves unequipped to efficiently handle the growing number of SKUs. As tempting as it may be to simply hire more workers, labor alone will not solve warehouse capacity and functionality issues.

SOURCE: TotalTrax, Inc.

Supply Chain Innovation in an ACA World

Medical device manufacturing and distribution is a nearly $110 billion industry. But this industry is under pressure like never before due to the Affordable Care Act. That requires companies to look at managing their supply chains in smarter ways.

SOURCE: Cardinal Health

 

Amazon buying trucks is boring but absolutely necessary

You’re about to see Amazon-branded big rigs out on the highway, driving between the company’s sprawling warehouses. As for why, it all has to do with the e-tailer’s business model.

Source: Wired.com

Markets in Transition: Material Handling Trends as Pallet Market Disruptors

Rick LeBlanc is well known in the pallet world for having the pulse on trends and developments in the field. Here he identifies seven material handling macro trends that are affecting the pallet market.

Source: Pallet Enterprise

Supplier Audits Rise to the Fore — At Least, They Should

As supply chains become more global and complex, it can be harder to identify where potential risks and vulnerabilities may lie. This article suggests additional factors to consider when auditing your supply chain such as the sourcing of objectionable products and materials and whether your suppliers have continuity plans in place.

Source: CFO magazine

Average e-commerce delivery time slower than last year

Top retailers are delivering products with speed, cost, and accuracy under pressure during the holiday shopping rush, but a broad study of e-commerce businesses by the consultancy Kurt Salmon shows that outside of the top 10 performers, the average order-to-delivery time across 62 retailers studied was 6.9 days—20% slower than last year’s number.

Source: Kurt Salmon

Amazon continues to open its fulfillment network to third parties

Amazon.com already sets the pace in the e-commerce market for speed and accuracy in delivering parcels to its own online shoppers, and now the Internet giant is further opening up its vaunted fulfillment network to third party stores. Amazon recently launched its Prime Now service in Chicago, offering one-hour delivery of items ordered from local grocery, prepared meals, and baked goods stores in the city.

Source: Amazon.com