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That means consumers everywhere are making resolutions, joining gyms, journaling, cutting back on alcohol and calories, and engaging in other self-improvement activities. And, since the cost of processing a return averages about 30% of the products original price , this storm of product returns is every retailers nightmare.
Companies importing and exporting goods, be it finished retail products, manufacturing components or materials, now face substantial cost and price pressures that squeeze margins and force difficult pricing, sourcing, operations and distribution decisions. The result?
Supply chain and logistics teams today face a pivotal moment in their evolution. The traditional metrics of excellence cost efficiency, on-time delivery while still important, are no longer sufficient in an era defined by volatility, complexity and political changes. Third, decision-making is evolving from human-led to AI-augmented.
Consumers want real-time answers, so logistics teams are left chasing down answers with disconnected processes and tribal knowledge of silos. Operations leaders know the feeling: you are constantly fighting fires instead of driving strategy. Waste increases your cost and reduces first time quality and your customers’ trust.”
Improved margins Today, many manufacturers are producing excess inventory to buffer against demand complexity — but there are both high capital investments and high operating costs associated with this strategy. Any surprise — like stockouts, or products that weren’t allocated correctly — can lead to much higher transportation costs.
A rise in nearshoring and away from single-source dependency The pandemic was a wake-up call that exposed the fragility of globally interconnected supply chains and the risks of over-reliance on distant suppliers and single-source strategies. The result was a shift and acceleration towards nearshoring, reshoring, and source diversification.
In the immediate, companies are stockpiling products , moving warehouses, and updating production schedules to keep costs as low as possible. Prioritize resilient strategies for all products Tariffs can change the supply chain overnight. Tariffs certainly will impact costs most directly, which likely cannot be avoided.
By digitalizing and automating their production planning processes, manufacturers can respond faster and more profitably when confronted with demand variability, materials shortages, logistics roadblocks and other supply chain issues. As a result, the manufacturer reports that run times have been reduced from several minutes to a few seconds.
Conversely, disruptions are also evident; for instance, another company, which manufactures large machines for constructing concrete curbs, highway barriers and sidewalks, faces logistical challenges. Tariffs on these imports raise material costs, squeezing profit margins unless businesses pass these costs on to consumers.
The UK-based economics research consultancyestimates that the keep-or-return game and other serial returner behaviors are costing retailers about $7 billion annually in the UK alone. Fashion retailers like Zara, H&M and ASOS are now charging returns fees to customers to discourage hauls and offset the costs of reverse logistics.
About 30% believe AI significantly boosts productivity and cutscosts. Businesses across APAC are gradually adopting AI and noticing clear benefits: Real-time visibility and better forecasting AI consolidates data from procurement, inventory, logistics, and fulfillment into one real-time view.
In todays world, companies will not generate market share without a well thought out and activated network effect strategy. If a companys business strategy does not include a move into an industry-based network, its market share will erode over time, along with its ability to leverage lower costs and logistics on a global basis.
The explosive growth of e-commerce also creates significant logistics challenges for retailers and D2C manufacturers. They need to offer low-cost or free shipping and returns, while also protecting margins. Understaffing during peak periods increases costs and delays, while also reducing fulfilment service levels.
We believe that combining GXOs global scale and logistics expertise coupled with Blue Yonders state-of-the-art supply chain technology stack will provide unmatched services and capabilities to our customers and support the growth of both of our companies. But there was a gap that needed filling.
For us, this recognition underscores our unwavering commitment to delivering cutting-edge solutions that drive efficiency and innovation in warehouse management. Seedcom Logistics implemented Blue Yonder Warehouse Management to streamline their processes and optimize inventory management.
Many virtual attendees were also present, with representatives from across logistics, procurement, manufacturing, IT and sustainability not only learning from the esteemed speakers presenting, but also sharing their expertise and experiences. Interested in where you can meet with Blue Yonder?
Geopolitical tensions, rising fuel costs, driver shortages, blocked shipping lanes and frequent supply chain disruptions make it tough to achieve reliable on-time delivery amid this complexity. While these kinds of events are hard to predict and impossible to eliminate, modern transportation management system (TMS) solutions can help.
Our WMS solutions have transformed supply chain operations, significantly reducing order processing times and optimizing warehouse resource utilization. Our solutions streamline logistics processes, resulting in improved productivity and reduced operational costs game-changers for distribution networks.
We’ve seen seismic shifts in the global logistics landscape over the past few years, including a transition to omni-channel commerce, increasing demand variability and growing customer expectations. In the age of Amazon, consumers want customized fulfillment and delivery options, with fast service at a low cost.
Concerns that may have seemed specific to the warehouse extend to transportation and logistics. A task that would have taken days, or even months, was cut down exponentially. But everyone wanted to reduce the impact of labor shortages on their supply chain. But in the long-term, turnover costs companies more than it helps.
They must find faster, more efficient strategies to surgically and profitably match supply with fluctuating demand and ensure operational excellence across their value chain. Did we mention inflation and rising cost pressures? Today, life sciences companies face an entirely new competitive landscape.
Recently, theres a growing trend among retailers to simply discard some product returns on receipt, because the cost of processing and re-merchandising them is greater than the potential profit. There are a number of practical actions fashion retailers are already taking to reduce returns. In the United States alone, every year 2.6
In a mainstage session at the Symposium—“PepsiCo’s Control Tower Strategy—Innovating E2E Process Flows”—Raphael Cyjon, Vice President of Strategy and Transformation, Transportation & Fleet, discussed the success PepsiCo has achieved with Blue Yonder Supply Chain Command Center.
Real-time insights and predictive analytics further empower companies to make proactive decisions, reducingcosts and enhancing service levels. Our robust and innovative solutions cater to large enterprises across diverse industries, including retailers, manufacturers and logistics services providers.
We believe this recognition highlights the Completeness of our Vision and our Ability to Execute by providing cutting-edge technology to address the complex and evolving needs of our customers. Johnny Ivanyi, Global Head of Logistics Operational Excellence, Bayer.
Our strategy of supporting our customers on a “composable journey” aims to streamline technology deployment and tailor capabilities to meet each manufacturer’s unique business requirements. Blue Yonder APS capabilities are purpose-built to smooth and balance production, maximizing cost control, asset utilization and customer service.
Imagine a network where every party, grocers, suppliers and logistics partners all operate with shared, real-time visibility, communication, and context. Minimize spoilage, reduce out-of-stocks and ensure the right products are in the right place on time and with less waste.
Based on an increasingly omni-channel world, these systems are challenged to handle the combination of downstream demand variability, upstream supplier variability, and the risk that comes with leveraging global sourcing and supply chain strategies. The greater the number, the greater the network effect and the value created by the offering.
From medium-term production planning spanning several months to short-term sequencing into individual production lots, manufacturers are challenged to optimize their resources and capacities to achieve the best possible utilization, while also meeting cost and service targets. Looking for an APS?
Reduced Operational Costs: Retailers can save on costs associated with warehousing, shipping, and customer service, as the third-party sellers handle these aspects. Find out how to get the best of marketplace growth, without the logistical headaches, in our next piece on marketplaces!
And how do you create a self-learning, self-healing environment in which change informs both future plans so they’re more feasibly constrained, and future execution to reduce firefighting? With user-specific context, network-wide awareness enables detection of meaningful change, reducing latency in generating insights.
Digital solutions are equally valuable in optimizing service, costs, sustainability and other outcomes during this slightly less wonderful time of the year. But now retailers and manufacturers with direct-to-consumer (D2C) capabilities need to fulfil those orders as quickly, efficiently and cost-effectively as possible.
This approach can help to drive down customer acquisition and re-acquisition costs as consumers are voluntarily returning to brand channels for style tips, recipes, how-to guides and content from creators they follow elsewhere too. Network design, and the flow of inventory through that networkthats where a lot of the push is.
And they want free or low-cost shipping. Just about every automaker has been forced to embrace digital solutions that increase real-time visibility, drive out costs and inefficiencies, and fluidly match supply with shifting demand. They want customized and personalized product options.
The Trump administration has introduced a 25% tariff on steel and aluminum imports, a 10% tariff on Chinese goods, and additional duties aimed at the European Union, India and Japan under a “reciprocal tariff” strategy. If enacted, these tariffs could increase the cost of new vehicle models by $4,000 to $10,000.
As the logistics industry watches and waits, the stakes are high. Delivering consistent results amid uncertainty Obviously, logistics service providers (LSPs) will also have to make dramatic changes over the coming months, pivoting strategically along with their customers. Rates and costs may skyrocket as supplier networks shift.
A team from Blue Yonder recently attended the Finished Vehicle Logistics North America 2025 (FVL NA 2025) conference in Huntington Beach, California. Amid this volatility, its increasingly difficult to predict finished vehicle logistics demand, let alone optimize logistics for cost and service.
Managing yard and warehouse operations has long been one of the thornier aspects of transportation logistics. Yards are a choke point between transportation and warehousing — and wherever you have choke points, you have a higher risk of inefficiencies that drive up labor costs, detention fees and delivery commitments. They aren’t.
With high processing, sorting, and restocking costs and ever-rising return rates, it’s clear that returns are implicated in many of the challenges that retailers face today. The key is implementing an efficient returns strategy that ties into the business’s wider goals. The Returns Owner A strategy without an owner is unlikely to work.
Driving down costs across the supply chain is a key goal for third-party logistics (3PL) businesses, particularly during inflationary pressure and labor market shortages. What are your current returns processes costing you? The high cost and inefficiency of current returns processes comes from three key areas: 1.
Dan Gilmore is a recognized thought leader in WMS, with experience prior to his role at Softeon as the founder of Supply Chain Digest, CMO at RedPrairie (now BlueYonder) and as lead WMS analyst at META Group (later acquired by Gartner). The Logistics of Logistics Podcast. Check out The Logistics of Logistics on Youtube.
This substantial increase underscores not only the shifting priorities within the logistics sector but also the profound impact on global supply chains. Logistics Service Providers (LSPs) find automation not just beneficial but critical — transforming it from a tactical enhancement to a strategic necessity.
Here are the trends our Blue Yonder Industry Strategy team sees for the upcoming quarter: Supply Chain and Technology Supply chains will remain volatile with escalating disruptions as a result of extreme weather effects and unrest across the globe. Speak to one of our Industry Strategy leaders today! Reach out at blueyonder.com.
Logistics service providers (LSPs) face unprecedented challenges in today’s fast-paced market. Trend 1: Industry consolidation The logistics industry is experiencing a wave of consolidation. DHL made several major acquisitions in 2022, including an Australian logistics company and a Mexico-based health care logistics company.
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