We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Something's happening here
outbound

Something's happening here

December 1, 2015
Mitch Mac Donald
No Comments

One of the highlights of DCV's annual report on omnichannel distribution is a summary of the findings of our latest survey on the topic, conducted in partnership with ARC Advisory Group. Among other things, the survey looks at the trends and forces driving the omnichannel revolution.

At the top of the list, of course, is e-commerce. In the United States alone, e-commerce grew by an average of 15 percent in each quarter of 2013 and 2014. That's almost double the rate of growth in total national retail spending, according to the U.S. Census Bureau. To state it another way, Internet sales are now pivotal to a retailer's success or failure. For companies accustomed to doing most of their business through traditional retail channels, competing successfully means rethinking their DC operations and logistics networks, many of which were originally built to serve brick-and-mortar stores.

These e-tailers compete not only with other traditional retailers, but also with the online pure-plays like Amazon.com. In 2014, Amazon posted higher sales than the next nine online retailers combined—essentially using its extraordinary product delivery capabilities to wallop the competition.

What makes Amazon such a formidable competitor? One word: technology. No retail company has ever come close to matching Amazon's prowess using tools like predictive software, big data, and goods-to-person systems and hardware to gain a competitive advantage in its marketplace.

While Amazon is often cited as a leading example of a technology-enabled (and technology-driven) business, it by no means stands alone. In a blog post on the website TechCrunch, Tom Goodwin pointed to some other notable enterprises that have deployed digital tools to turn whole industries on their ear. "Uber," he wrote, "has become the world's largest taxi company, yet it owns no vehicles. Facebook is now the world's most popular media owner, yet it creates no content. Alibaba is the most valuable retailer, yet it has no inventory. And Airbnb is now the world's largest accommodation provider, though it owns no real estate."

What all of these companies do have, of course, is technology—to be specific, consumer-interface technology that matches buyers who want something with sellers who have something to offer. As this snapshot of the marketplace makes clear, something interesting is happening here.

And it's not just happening in the consumer world. Some of the same disruptive technologies that are changing our personal lives are making their way into logistics operations, particularly warehouses and distribution centers. Exhibit A would be the tablet computer; Exhibit B, the smartphone. The trend will only gather steam. In an article that appeared in CSCMP's Supply Chain Quarterly ("Seven technology trends shaping the future of material handling," Q4, 2014), Lew Manci of Crown Equipment offered his take on how technology will transform warehouse and DC operations. "In the next 10 years, the intelligence designed into material handling equipment will grow exponentially, as will connectivity between systems and their environment," he wrote. "Tech-savvy workers will operate intelligent machines, working alongside robots and autonomous forklifts in highly automated operations."

In other words, logistics operations are likely to look far different from anything we can even imagine today.

It's time to look at technology in a different light. When we consider the benefits of logistics technology, we must start thinking beyond efficiency, beyond productivity, beyond the ability to help us make better decisions. Today's technology is clearing the path to gaining a demonstrable competitive advantage through logistics. The winners will be those who recognize the opportunity and seize it.

Material Handling Transportation Technology
  • Related Articles

    are we missing something here?

    Now here's something to chew on ...

    Thought I’d something more to say …

Mitchmacdonald
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.

Recent Articles by Mitch Mac Donald

Thought I’d something more to say …

Digital supply chains, circular economies, and a whole bunch of uncertainty

Sorry, folks. This is not normal

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • IBM survey says digitalization trends will sweep trucking industry by 2030

  • Gartner survey signals increased investment in resilience over the next two years

  • Truck driver hiring pool tightens to lowest point in three years, ACT says

  • What Level of Automation is Right for Your Warehouse?

  • Growing up … and up and up: interview with Sam Bertram

Now Playing on DCV-TV

D92f0dd1 a98c 434a 9e17 30b63ee72c90

Automated Pack-out and Print-Apply System for thredUP

DCV-TV 4: Viewer Contributed
SilMan Industries designed and implemented a mixed polybag-carton system, including automated print and apply, in a new regional Fulfillment Center for thredUP, one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes, and accessories.The Situation Secondhand clothing and online...

FEATURED WHITE PAPERS

  • Using innovation to manage peak seasonal demand

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing