Logistics Trends

These are the stories that best summarize the events of 2019 in logistics and transportation management.

Atlanta-based transportation and logistics titan UPS said this week that it is making further inroads to its healthcare-dedicated warehouse and distribution network, in the form of the addition of 1.3 million square-feet (MSF) of United States-based distribution space, as well as receiving the European Union’s Good Distribution Practice (GDP) compliance certification for France- and Germany-based healthcare operations.

The report, entitled, “Logistics Activity Trending Toward Sustainable Growth, highlighted key findings from the Prologis IBI, which is a quarterly survey of customer sentiment. The IBI pointed to what Prologis called an environment of normalization away from the unsustainably high levels of activity recorded in 2018” (and came in at 60 for the third quarter; a reading of 50 or higher indicates growth is occurring) with:

Ottawa-based Shopify, a multi-channel commerce platform, announced that it has reached an agreement to acquire Waltham, Mass.-based 6 River Systems, a provider of collaborative warehouse solutions. The purchase price is $450 million, and the acquisition is expected to be made official in the fourth quarter.

Given the number of available and emerging digital solutions capable of transforming and improving logistics and supply chain operations, why are many firms still spinning their wheels instead of driving forward? Learn this and more in the 28th Annual Study of Logistics and Transportation Trends

The findings of a Logistics Management reader survey of roughly 120 logistics and supply chain professionals regarding 2019 Peak Season prospects was tempered compared to last year, with 33.3% expecting it to be more active than last year (down from 61% last year), 34.8% expecting it to be less active (up from 10% last year), and 31.9% saying they are not expecting a change (up from 29% last year).

Entitled DHL Medical Express Service (WMX), DHL said this service was launched in November 2018 as a pilot program, and focuses on increased customer demand for faster and more predictable lead times in response to regulatory complexities that can often delay exports, adding that this service provides major benefits for clinical trial patients, as “temperature-sensitive biological products and new patient-specific treatments will be in the right hands, exactly when needed.”

Slowly but surely, a conversion from vacant retail properties to industrial retail space appears to be under way. That is the word from Los Angeles-based industrial real estate firm CBRE. In a report, entitled “Trading Places: Retail Properties Converted to Industrial Use,” which was published this week, CBRE explained the main driver for this is due largely to shifting consumer preferences for e-commerce and in-store omnichannel platforms.

When two days is too long, on-demand networks step in to deliver orders in hours or even minutes. This is hot enough that four-year old startups are having to share the space with the likes of Target, WalMart, Home Depot and even Amazon. Ultimately, delighting customers is driving it all.

The full, 40-page research report features all the data gleaned from this year’s survey plus a summary analysis from the editors of Logistics Management.

The Logistics Management editors have hand picked the most influential news stories impacting the market in 2017. Most Read Logistics Stories 2017. Logistics News 2017, Supply Chain Top Stories 2017

UPS said this week it has opened up a new, 76,000 square-foot, Bogtota, Colombia-based healthcare facility, which is geared towards helping pharmaceutical, biopharma, and medical device companies with their global supply chains for expansion into and intra-transport and export from Latin America.

Prior to Fashion Week earlier this fall in New York City, LM Group News Editor had a chance to talk with Greg Hewitt, CEO of DHL Express U.S, about his company’s involvement and role in Fashion Week from a logistics and supply chain perspective.

Indecision revolving around three complex supply chain elements—transportation, technology and organizational structure—finds many companies waiting to commit to a strategic path. However, waiting too long will only result in a competitive disadvantage that will be difficult to overcome in today’s fast-paced, global economy.