You don’what Happens When I Invest In Nodes have permission to view this page. Please include your IP address in your email. Opinions expressed by Forbes Contributors are their own. A truck maneuvers near piled up containers at Liscont containers terminal in Alcantara Docks of the city harbor on October 26, 2017 in Lisbon, Portugal. Lisbon harbor is one of the largest and most important ports in Europe.
There are several key supply chain trends to watch in 2018. The retail supply chain has been going through a massive transformation. Traditional brick and mortar retailers seek to leverage their stores to better compete against Amazon and other ecommerce retailers. Driving unprofitable sales makes no sense. Eventually retailers need to understand their true costs and margin based on the omnichannel flow path. The industry continues to discuss the driver shortage. Basic economics tells us that if you raise wages, you will attract new drivers to the industry. There has been less public discussion about looming labor shortages in warehousing. The amount of picking, because of omnichannel and ecommerce, has increased the need for warehouse workers.
Logistics service providers are actively exploring the use of autonomous mobile robots to meet the labor shortage. The move to install tariffs and bring more production back to America has gone much more slowly than I expected following the election of Donald Trump. Jim Preuninger, the CEO at Amber Road, points out that in times of agrees that scenario analysis is critical. Amber Road is a leading supplier of global trade management. In times of uncertainty, scenario building and analysis can be done preemptively to provide more time to fully understand, design, and implement needed changes. Multinational companies design their supply chains taking into consideration many factors, including fully landed costs, regulatory issues – including tariffs, lead times, and supplier quality and reliability. But tariffs are a critical component of landed costs. I reached out to Toby Brzoznowski, a cofounder and executive vice president at LLamasoft, on this topic.
LLamasoft is a leading provider of supply chain design software. Day One after the elections, I heard of multiple companies that had put analysis projects in place to run landed-cost scenarios for a wide range of potential tariff increases, or changes to trade agreements. However, as you said, things have not moved quickly, and it seems at this point that companies now have their contingencies mapped out but are sitting and waiting to see what happens. If significant new tariffs emerge, supply chain networks will change greatly. But politics in the US remain tumultuous. If the Trump administration does not impose new tariffs this year, it may not happen. Emerging technologies such as blockchain, 3D printing, autonomous mobile robots, IoT, machine learning, and related technologies continue to get a tremendous of amount of publicity. I am the Vice President of Supply Chain Services at ARC Advisory Group, a leading industry analyst and technology consulting company. I engage in quantitative and qualitative research on supply chain management technologies, best practices, and emerging trends.
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