Wednesday, January 22, 2020
AI Investment Reported to Reduce Supply Chain Costs
A survey conducted by McKinsey and Company reported that 61% of survey respondents saw a reduction in supply chain planning costs as a result of using artificial intelligence. The AI did not reduce headcount, but instead improved forecasting and network optimization. Belk recently introduced AI to its inventory management system to improve efficiency in ordering, replenishment and allocation.
Public Warehousing Market Expected to Grow by $37.2B
The global public warehousing market is predicted to grow by $37.92 billion between 2020 and 2024, driven by companies’ cost-cutting initiatives. Public warehouses provide storage solutions on an at-need basis, making them more flexible than investing in a warehousing network directly.
Amazon FBA Lifts Ban on FedEx Ground
Third-party merchants selling on Amazon’s platform can once again use FedEx’s ground network to fulfill Amazon Prime orders. The delivery company is now consistently meeting on-time delivery requirements, although the holiday season ban was lifted later than expected because of the high amount of January returns re-entering the network.