The DHL Supply Chain is investing in the Ohio region. Uniqlo’s parent company, Fast Retailing, has implemented RFID technology in its stores to improve its supply chain. E-commerce causes challenges in meeting the growing demand for faster delivery. American Airlines reports a significant drop in cargo revenue. Freight fraud has become more prevalent in the trucking industry.
Columbus Emerges as Thriving Logistics Hub
The Columbus region in Ohio is a thriving logistics hub, home to Rickenbacker International Airport and offering direct access to East Coast ports through rail services. The region has seen significant growth, with new warehouses being built rapidly, and the area ranking in the top 10 regions in the US almost annually. DHL Supply Chain is investing in the region, with plans to spend $500 million in capital this year on adding automation to its facilities. The Carhartt facility in Canal Winchester is an example of what future warehouses will look like, with automation supporting humans and designed to address omnichannel expectations.
Source: Supply Chain Management Review
Uniqlo’s Parent Company Introduces RFID Technology
Uniqlo’s parent company, Fast Retailing, has implemented RFID technology in its stores to improve its supply chain, inventory management, and checkout process. RFID chips embedded in price tags are read by radio frequency identification readers inside automated checkout stations, enabling customers to drop items in a bin and pay without scanning individual items. This technology has resulted in significant reductions in out-of-stock items and improved customer satisfaction, according to Uniqlo. Cheaper and more precise RFID technology has enabled more apparel retailers to implement the technology for inventory management, and self-checkout systems using RFID are gaining traction.
Source: Wall Street Journal
E-commerce has led to fragmented and inefficient urban logistics networks, creating challenges in meeting the increasing demand for faster delivery. A report by consultancy Roland Berger advises moving away from the current fragmented process of delivery and urges stakeholders to work closely together to bundle flows and transform the entire ecosystem. The report suggests purpose-built vehicles and collaboration among logistics operators as potential solutions to reduce costs, delivery times, carbon emissions, and urban congestion.
Source: Inside Logistics
American Airlines Reports Drop in Cargo Revenue
American Airlines reported a 37.8% year-over-year drop in cargo revenue for the first quarter, primarily due to lower demand and yield. This decline is in line with other airlines such as United and Delta, who also reported double-digit drops in cargo sales. The decrease in cargo revenue is partly due to consumers shifting spending to services, high inflation, and economic uncertainty. Freight rates are likely to remain low until the global economy picks up and airlines reintroduce passenger services.
Source: Freight Waves
Rising Freight Fraud Threatens Trucking Industry
Freight fraud is a growing problem in the trucking industry, as tech-savvy individuals are using false identities to skim off payments for shipping goods, a tactic known as double-brokering. The rise of online freight transactions and heated competition for shipments have made it easier for fraudsters to exploit vulnerabilities in the system. The problem is especially hard on smaller carriers and brokers, as lost revenue can threaten their businesses. Complaints about fraud, including double-brokering, have risen significantly, and experts say there are gaps in enforcement. Despite being illegal, double-brokering continues to be a threat to the industry.
Source: Wall Street Journal
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