All The Supply Chain News You Need To Know 1.14 - 1.18
New audit reveals reliance on legacy systems costs Oregon office up to $1.6 billion. The audit of the Oregon State Department of Administrative Services’ Office of the State Chief Information Officer was performed by the Oregon Secretary of State Audit Division and looked at $8 billion in departmental spending. The department currently runs on legacy systems that date back to the 1990’s which limit the office’s visibility to only 12.5% of procurement expenditures. The state has agreed to update to enterprise solutions which will provide savings ranging from 5% to 20%.
TMS market matures as shippers shift focus to visibility. To combat areas shippers can’t control like capacity, rate hikes, and driver shortages, they’re turning to TMS technology to save via cost avoidance. Last year was a great year for TMS ,” says Bart De Muynck, Gartner’s research vice president, transportation technology to Logistics Management. “In fact, in 2018 we saw investments go up across the entire supply chain technology spectrum.” Sensata Technologies of Attleboro, MA realized these cost avoidance savings to the tune of $2.2 million during their first year using TMS technology. “It has been very beneficial for improving communications with carriers as well as internally to our own team,” said Janelle Ballerstedt, Sensata’s global logistics and TMS project lead.
IFS study reports double-digit increases in IoT sophistication in 2018. The research study of 200 North American executives shows significant YoY growth in Internet of Things (IoT) usage by industrial companies. While the study showed a 30% increase in the use of IoT to support asset performance management, only 16% of respondents have integrated their IoT data streams with their ERPs. This lack of integration creates a barrier preventing companies from fully leveraging their IoT data. “IoT is a big disruptor,” said Antony Bourne, president, IFS Industries to Supplychain247. “But if industrial companies do not embrace digital transformation, chances are that their business will be the one that’s disrupted by more agile competitors.
Ecom causing urban planners to face final-mile delivery challenges. Congestion-related costs have ballooned in city centers as the demands of parcel shipping strain areas not designed for the elevated traffic. Costs in 6 major Texas urban areas skyrocket from $1 billion in 2013 to $6.3 billion by 2016. New York City has seen a 29% increase in residential deliveries from 2010 to 2015. As the ecom boom continues to grow exponentially, these numbers only look to get worst. “We’re seeing a lot of smaller vehicles,” said Diniece Peters Mendes, director of the New York City Department of Transportation’s Office of Freight Mobility to Transport Topics. Two cargo bikes can replace one motorized vehicle, Peters Mendes pointed out. Between 2016-2019, Texas plans to spend $6.6 billion to ease congestion.
FedEx following JB Hunt, Home Depot, Ryder, and Amazon into XPO’s bulky goods residential delivery market. FedEx Freight drivers are now delivering large items to homes in 5 cities as part of the pilot program. FedEx Freight Direct will offer heavy and hard-to-handle item delivery to last-mile destinations in Atlanta, Omaha, Oklahoma City, Tulsa, and Dallas with a two-hour delivery window. The service comes at a time where more than 66% of shippers are using 3 or more providers to deliver these goods and an additional 38% of shippers are using 5 or more carriers.
Sluggish iPhone sales felt across Apple’s supply chain.
Apple’s
main iPhone supplier, Foxconn, reports an 8% decline in sales YoY. iPhone metal
case makers and division of Foxconn, Foxconn Technology, lost 60.18% in sales
for December against last year. Catcher Technology, who makes casing for the
iPhone XR, saw revenue tank by 28% in December. Largan Precision, a key iPhone
camera lens manufacturer, dropped 33.86% in sales to end the year. "Looking
forward to 2019, it's almost a consensus that iPhone would face a decline in
unit shipments --which could hit all the suppliers," said Eddie Han, an
analyst at Taipei-based Market Intelligence & Consulting Institute to Nikkei Asian Review.
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