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The logistics and supply chain industry is constantly evolving, marked by significant events such as the recent closure of Yellow Corp, a major player in the Less-than-Truckload (LTL) sector. Meanwhile, the advent of AI is revolutionizing the way forwarders meet financial targets, and the rise of omnichannel retail is changing inventory management. Despite the threat of a UPS strike causing some initial turbulence, many businesses have maintained their delivery activity with the courier service, demonstrating resilience in the face of potential disruptions. As always, the Intelligent Audit team is here to keep you informed with this week's top stories from an industry that never stands still.
Yellow Corp, a less-than-truckload company with a nearly 100-year history, has ceased all operations as of July 30, 2023. The shutdown has impacted thousands of employees and customers, and it may cause a significant shift in the LTL sector. The company's financial struggles, customer concerns about a potential Teamsters strike, and inability to meet its financial obligations led to this unfortunate outcome, as reported in Transport Topics. The end of Yellow Corp's operations has left a void in the LTL marketplace, presenting opportunities for competitors like ArcBest. It has potential implications for the Department of Defense and the government’s General Services Administration, for whom Yellow carried a substantial amount of freight.
Artificial Intelligence (AI) is emerging as a vital tool in helping forwarders meet their future financial targets by reducing headcount while increasing efficiency. However, managing the transition to AI-based systems while keeping employees engaged is a significant challenge. Rob Petti, CEO of forwarding software provider Prompt, sums it up in JOC.com: “Clearly, AI and its potential impact on headcount are out there... every company implementing any sort of AI technology is doing it to improve margins. Otherwise, why do it?”
As reported in Supply Chain Dive, DHL Supply Chain has deployed over 1,000 autonomous mobile robots (AMRs) from Locus Robotics, managing increased demand during peak seasons and reducing its reliance on additional labor. As DHL continues to meet supply chain challenges with advanced technology, the future of logistics looks promising.
As the logistics industry grapples with labor shortages, collaborative mobile robotics offers a promising solution. According to DC Velocity, Vecna Robotics' autonomous vehicles, designed to work alongside human workers, can significantly increase warehouse efficiency and productivity, helping offset the labor shortage.
Research from procurement consultancy firm GEP, reported in Supply & Demand Chain Executive, shows that supplier diversity programs can significantly enhance supply chain resilience. The study found that these programs can lead to increased innovation, better customer relationships, and improved financial performance, among other benefits.
According to Supply Chain Digital, effective integration of Sales and Operations Planning (S&OP) and Sales and Operations Execution (S&OE) processes can significantly enhance supply chain efficiency. By focusing on flexibility, organizational structure, and strategic feasibility, leaders can strengthen their supply chains and drive greater value for their organizations.
Even with the looming threat of a UPS strike, many companies chose to maintain their current volume levels with UPS. Parcel delivery experts noted in Supply Chain Dive: "The benefits to sticking with UPS... [include] confidence a deal between the company and the Teamsters will be reached before a strike could occur." A tentative deal was announced the next day, July 25, just days before the current contract would have expired.
The disconnect between abundant stock in distribution centers and empty store shelves lies within a business model that has yet to fully adapt to the needs of modern shoppers. The solution is to modernize the supply chain with precision data, updated shipping methods, and improved vendor-retailer relationships, as suggested in Supply Chain Brain.
Businesses need to be more adaptive and resilient amid potential disruptions and ongoing changes. Partnering with Intelligent Audit, a top freight audit provider, can help navigate these turbulent waters, providing access to a suite of transportation optimization tools. With Intelligent Audit's services, businesses can confidently navigate complex freight auditing procedures, ensure optimal transportation spending, and find the suitable carrier at the right time. Discover how 25 years of smarter shipping can transform your logistics network today. Reach out to us to learn more about our solutions.
Set up a call with one of our experts to discuss how Intelligent Audit can help your business uncover opportunities for cost reduction and supply chain improvements through automated freight audit and recovery, business intelligence and analytics, contract optimization, and more.
