AuthorManuel Torres, RUSCA Blog Committee Drones have become a discussion point for years, and especially the hype for normalcy in the industry such as their ability to make deliveries is something becoming clearer for the future. There’s finally a promise for drones to become an utilized tool towards fulfilling orders. We’ll go in-depth with the potential impact drones will have in regards to retail giants, and other companies who will be actively in the market for them already. The landscape for drones this year is certainly something everybody can envision becoming a reality compared to previous years when it was only a short conversation.
As mentioned previously, the landscape for drones is becoming clearer, but that’ll depend on federal regulations. In the article, Delivery Drones Are Gaining a Clearer Commerical Flight Path, author Liz Young goes into greater detail about the future of drones. She asserts that “Industry executives say they have an improved landscape in 2024, however, after federal regulators recently granted several drone-delivery companies permission to fly more freely. That has led several retailers, restaurants, and healthcare systems to expand their services across the U.S.” (Young, 2024). Furthermore, regulators have of course begun playing a major role in the rollout of drone delivery, and as mentioned there can finally be a serious conversation about drone deliveries with this news. Worth noting the major wave this will cause for industries and consumers. Specifically, consumers who were either in support of drone implementation, alternative delivery strategy, or other ways that’ll satisfy those consumers. From a certain point of view, this is great news for those in favor of alternative strategies with efficient delivery or the environmental benefits they can bring since they’re battery-powered. However, there are serious obstacles that are still down the road for drone deliveries. Considerations are to be made on its efficiency, cost difficulty, etc. Even with all of these considerations in mind, there needs to be a bigger emphasis on retail giants still being in the market for drones. Young mentions “Retail giant Walmart, which has been among the companies most aggressively seeking to embed drones in its delivery operations, said it will begin offering drone delivery this year to about 75% of the population of the Dallas-Fort Worth region” (Young, 2024). Additionally, companies are partaking in what will hopefully be the next step in delivery alternatives. Taking a step back into the cautions of drone deliveries is still important, and experts are quite hesitant the question whether drones have a major cost differential compared to current transportation trends used today. Not only do these factors need to be taken into account, but also the difficulties behind delivery as a whole. For example, there could be issues when delivering in urban areas such as moving around buildings, apartment deliveries, potential technical issues, etc. Another potential issue for the future of drones would be a privacy risk. Many people could consider an invasion of privacy when many drones are flying everywhere when it comes to passing their homes. Author, Trevir I Nath, in the article How Drones Are Changing the Business World. He maintains, “Widespread use of drones also can be expected to increase privacy concerns among citizens already nervous about corporate and government data collection. Drones typically use a camera and GPS to navigate delivery destinations, which many believe to be intrusive” (Nath, 2023). Furthermore, this greatly reveals one of the many concerns if drones ever become a norm in day life deliveries. Once again it still needed to be noted whether it’ll be cost-efficient for companies. Director of research of the Massachusetts Institute of Technology’s Center for Transportation and Logistics, Matthias Winkenback, adds to this by mentioning “It’s not just hard to fly these drones on a technological level, it’s also just simply extremely hard to fly them cost-effectively,” (Young, 2024). Additionally, drones could well be within certain constraints before heading straight into the business world and diving into upgrading alternatives for supply chains. After all the potential considerations are made there’s still a great hope that’ll eventually become a reality. Other factors are needed to be aware of, but there’s still a positive side working continuously to make it happen. When it comes to privacy and potential hazards for aircraft technical issues never arise to that extremity. “They have also been working on what’s known as detect-and-avoid technology that teaches the devices to around obstacles including other aircraft” (Young, 2024). Furthermore, this should provide some relief for those unease of those specific concerns. As for industry-wise concerns regarding whether drone deliveries can become a viable business implementation. The FAA asserts “routine, scalable, and economically viable (Young, 2024). Additionally, the work behind the scenes is evident when it comes to drones. Drone deliveries may have their many concerns as that was the main discussion during COVID, but now the many cons are becoming non-existent with the efforts being made towards fixing them. We shall hopefully see what lies ahead for the good of industries. Sources https://www.wsj.com/articles/delivery-drones-are-gaining-a-clearer-commercial-flight-path-dec702be?mod=logistics_news_article_pos2 https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/future-air-mobility-blog/drones-take-to-the-sky-potentially-disrupting-last-mile-delivery https://www.shippingsolutions.com/blog/the-future-of-drones-in-logistics-and-supply-chain-management https://theweek.com/tech/drone-delivery-pros-cons AuthorAdam Seoudy, RUSCA Blog Committee In recent years, fluctuations in the housing market, characterized by increasing interest rates and diminished home improvement activity, have presented challenges for major retailers like Home Depot, impacting their sales performance. However, rather than passively weathering these economic shifts, Home Depot has strategically realigned its supply chain operations, with a specific focus on better accommodating the needs of contractors and optimizing bulk purchasing dynamics.
As written in Young's report (2024), Home Depot is proactively establishing new distribution centers tailored to meet the requirements of contractors. These centers are purposefully configured to stock substantial quantities of construction essentials such as lumber, insulation, and roofing shingles—materials integral to large-scale projects. This strategic pivot underscores Home Depot's endeavor to target a specialized market segment while remaining responsive to the evolving landscape of the construction industry. Central to the success of these distribution centers is their ability to offer bulk procurement options at competitive price points. By facilitating bulk transactions, Home Depot not only extends cost-saving benefits to contractors but also capitalizes on economies of scale, thereby enhancing its own profitability. Furthermore, this initiative underscores the company's concerted effort to prioritize the promotion and movement of core products that previously faced stagnation within conventional retail settings. Beyond the financial implications, the adoption of distribution centers includes operational benefits that enhance the customer’s experience. By reducing in-store clutter and optimizing spatial utilization, Home Depot cultivates an environment conducive to streamlined shopping experiences. In addition, the reduction of burdens associated with managing bulky inventory affords store associates increased capacity to provide personalized assistance and guidance to customers. These supply chain improvements create savings for Home Depot and then those savings are able to be passed onto customers, creating value for all parties involved. This, in essence, is the future of supply chain management, according to Home Depot. At their new distribution centers, there are customer-centric enhancements and features aimed at improving convenience and flexibility. These include provisions for product reservations, direct delivery to job sites, and deferred payment options—a suite of amenities tailored to the preferences and exigencies of contractors operating within the construction domain (Young 2024). Also, these benefits include digital tools like new order management capabilities to better navigate complex pro orders, as per Stroh’s report (2024). Home Depot is changing how it handles its supply chain, not just because of market changes, but to fortify its position as an industry leader, despite the market. By pioneering innovative approaches to supply chain management, Home Depot is trying to secure a larger market share while consolidating its reputation as the preferred destination for contractors. In addition, this strategic trajectory may serve as a precedent, potentially causing its competitors to do the same in order to remain relevant in the broader retail landscape. In summary, Home Depot's strategic adaptation of its supply chain underscores a commitment to agility and responsiveness amidst dynamic market forces. As the retail sector continues to evolve, Home Depot's proactive measures to fortify its place amongst the top players in its industry prove Home Depot will be there to evolve with the market. By creating savings through economies of scale for their customers, they are using their supply chain innovations to win a larger share of the market. And finally, their approach of aligning with contractor needs epitomizes a forward-thinking approach to sustaining relevance and success in an ever-changing marketplace. Sources Young, L. "Home Depot Is Bulking Up Its Supply Chain to Serve Contractors." The Wall Street Journal, 2024, https://www.wsj.com/articles/home-depot-is-bulking-up-its-supply-chain-to-serve-contractors-ae4614ea. "Home Depot Opening Four New Distribution Facilities to Fill Pro Orders." Chain Store Age, n.d., https://chainstoreage.com/home-depot-opening-four-new-distribution-facilities-fill-pro-orders. "Home Depot Bulks Up Its Supply Chain to Serve Contractors." Supply Chain Dive, n.d., https://www.supplychaindive.com/news/home-depot-distribution-network-pro-orders/710222 Current Cocoa Supply Chain Issues Are Just the Start of a Problematic Future for Chocolate3/25/2024
AUTHORLiam Ripberger, RUSCA Blog Committee For centuries now, chocolate has been one of the most essential ingredients for many of the world's favorite treats. However, recent trends in cocoa prices shine light on the dire cocoa supply chain issues. Going into February of 2024, cocoa prices are at the highest we have seen in 46 years. According to CoBank, an agricultural financing company, these price highs for chocolate are approximately 65 percent higher than they were around the same time last year (Zimmerman). Chocolate prices have been steadily rising for the past three years, with this year being the worst yet so far for supply issues. This year's yield is projected to be worse than last year in Ghana, where the yields for cocoa were the lowest they have been in the past 13 years (Zimmerman).
Although these supply issues have already created record high chocolate prices, the average consumer has not yet seen the worst of the price hikes. According to Matt Spooner, a supply chain management specialist for Kinaxis, the prices will be realized by consumers a bit later in 2024 (Casey). Consumers may not have noticed the price changes yet, because many of the chocolate goods for Valentine’s Day, and this upcoming Easter have already been manufactured and shipped to the shelves. Therefore, as cocoa supplies run out before the next cocoa harvest later in the year, chocolate will rise exponentially as we inch towards the holiday season late in 2024. Spooner believes that, “Maybe by reducing the actual size of the bars of chocolate, what the consumer sees is mitigated a bit, so you’re not seeing that the price of cocoa for the producer is up fifty-percent,” (Casey). These high costs could lead large chocolate companies to cut jobs, something that Hershey has already announced. In order to understand why all of this is happening, it is important to get to the root of the issue, which is the cocoa tree. Just like many other crops, cocoa trees are struggling to acclimate to the effects of climate change. The overwhelming majority of cocoa supply, roughly 70 percent, comes from different areas in West Africa (Zimmerman). However, erratic rainfall has been terrorizing the region, resulting in lots of flooding, and even extended droughts. This is incredibly detrimental to the agricultural output of the area. On top of this, areas like Ghana have been struggling with black pod disease, which, according to the Ministry of Agriculture, is a fungal disease that preys on cocoa (Seedial). This disease thrives in rainy seasons, which is a lethal combo for cocoa trees when paired with the recent rainfall in Ghana and other parts of West Africa. These past few years have seen rising supply chain issues surrounding cocoa farming, which raises the question of longevity for the industry. According to scientists from the National Oceanic and Atmospheric Administration, cocoa trees are on track to go extinct by 2050 (Sherman). This is because of the way climate change is impacting West Africa, making about 89.5 percent of the land currently being used for cocoa harvesting go sour by 2050 (Sherman). Though this is scary for the future of chocolate, researchers at UC Davis believe that with their partnership with Mars, Wrigley, there is still hope for the cocoa trees. Being one of the largest chocolate manufacturers and distributors, Mars is investing a lot of money into researching cocoa trees. They intend to focus on solutions that will help the plant withstand climate change and overcome diseases. Davis Alan Bennett, a professor of plant sciences for UC Davis, is incredibly confident in the future of chocolate production, stating that: “chocolate is not going anywhere [...] I think it still has a bright future,” (Apodaca). Right now the price of chocolate is at a record high and still rising, affecting everyone along the supply chain from manufacturers to customers. Whether or not cocoa trees will survive the impact of climate change is unknown, and for now all we can do is hope for the best and savor chocolate while we still can. Sources: “Cocoa supply issues could lead to smaller chocolate bar sizes: expert” https://www.supplychaindive.com/news/cocoa-supply-smaller-chocolate-bar-sizes-kinaxis-ivory-coast-hershey-mondelez-easter-candy-prices/707464/ “Surging cocoa prices could lead to Valentine’s Day sticker shock” https://www.fooddive.com/news/chocolate-prices-rise-africa-cocoa-supply-cobank/706762/ “Could research being done at UC Davis save the future of chocolate? Mars Wrigley is betting on it” https://www.cbsnews.com/sacramento/news/saving-chocolate-mars-wrigley-researching-cacao-at-uc-davis/ “Scientists Expect Chocolate to Go Extinct by 2050” https://www.foodandwine.com/news/scientists-expect-chocolate-extinction “Black Pod Disease of Cocoa” https://agriculture.gov.tt/wp-content/uploads/2017/11/Black-Pod-Disease-of-Cocoa-pdf.pdf AuthorNathan Perez, RUSCA Blog Committee Walmart has developed into a leading member of the E-commerce industry. Walmart is strict when it comes to supplier deliveries. Walmart required 98% of the suppliers' deliveries to be on time and in full, but they have since relaxed them by lowering their demands to 90% on time and 95% in full. These new demands come with great hope for suppliers since before this, if the delivery wasn’t on time or in full, the supplier would be subject to a fine. The logistics industry is always unpredictable since trucks can break down or deliveries can be delayed by traffic, so mandating 98% was extremely tough on vendors.
Walmart has also cut costs to Last Mile Shipping. Back in November of 2023, Walmart began to add parcel stations in major consumer states which have since cut Last Mile shipping costs by 20%. The cutting of these costs has been a success for their consumers as they have more time to order and have a greater assortment of merchandise. While on the flip side, it has become more efficient and easier to distribute online orders (Jennifer McKeehan). Walmart’s parcel stations have automated fulfillment centers and have created twice the capacity and throughput at the same footprint (Rainey CFO). Rainey further states that the parcel stations are a tremendous benefit to the efficiency of delivering packages. Walmart, trying to keep up with major competitors like Target and Amazon, has added early morning delivery services. Walmart wants their customers to have shopping personalized and tailored to the customer’s lifestyle. The addition of early morning delivery adds to the already established services of curbside pickup, late-night express delivery, and on-demand delivery. In addition, Walmart and FedEx have reached an agreement which allows for lower discount rates for members of the Walmart Marketplace. The announcement comes after UPS became a supported carrier for Ship with Walmart. The lower rates will allow companies to use the Marketplace to save costs and Walmart also has benefits for their members to use the fulfillment Services. The new sellers will see a 50% off storage fee and a 25% off fulfillment fee for 90 days. Walmart will continue to try to steal e-commerce market share from its competitors like Amazon and Target. Walmart continues to deal with its large competitor, Amazon. They have taken action to lower costs, be more lenient with suppliers, and even be more understanding to their customers. The effort Walmart is producing to become the leader in e-commerce has sparked rivalry in the industry. The competition of Amazon, Walmart, and Target will be exciting for all supply chain enthusiasts. Sources: https://www.supplychaindive.com/news/walmart-adds-early-morning-delivery-option/709771/ https://www.supplychaindive.com/news/walmart-parcel-stations-stores-last-mile-delivery/700379/ https://www.supplychaindive.com/news/walmart-marketplace-fedex-ground-discounts/707648/ https://www.supplychaindive.com/news/walmart-last-mile-delivery-fulfillment-cost-reduction/708379/ https://www.wsj.com/articles/walmart-eases-supplier-delivery-demands-as-stocking-pressures-recede-b2a93505?mod=logistics_more_article_pos5 https://marketplace.walmart.com/solutions-providers/ AuthorCary Wong, RUSCA Blog Committee As modern civilizations have progressed over the past couple of centuries through the Industrial Revolution and into the current day, it has become increasingly apparent that business production can greatly influence the well-being of the planet and its inhabitants. For a long time, corporations have either unknowingly or indifferently harmed the environment through their supply chains and systems of production. In addition, many of these companies have negatively impacted their workers through the use of detrimental practices such as child labor, and unfair pay wages. However, in recent years, world governments, especially in the European Union, have been working towards mitigating these harms and encouraging corporate responsibility.
In 2022, the European Commission drafted a framework for a new set of rules and guidelines for corporations called the Corporate Sustainability Due Diligence Directive (CSDDD). This directive, which was preliminarily agreed upon by the legion of European countries in December 2023, requires businesses to “identify and remedy in their supply chains cases of employing forced or child labour or environmental damage, such as deforestation” (Blenkinsop). The directive specifically targets European companies with more than 500 employees and a net turnover rate of more than 150 million Euros over the past year. As these standards include a great deal of companies in the EU, it shows promising potential to contribute positively to international sustainability goals. However, when the Union’s countries went to vote on the CSDDD on February 28th, its approval unexpectedly fell short of the necessary 65 percent mark. Although the directive was originally supported by almost every country in the EU, a group of countries including powerhouses like Germany, Italy and France ended up opposing it (Messenger). While these countries undoubtedly agreed with the message behind the directive, many of them felt that its regulations and restrictions would negatively affect businesses at the small and medium levels. At the vote meeting, France proposed to reduce the scope of the directive by increasing the minimum number of workers or amount of yearly revenue required for companies to adhere. Meanwhile, according to the German politician, Marco Buschmann, “there were too many objective reasons against the current proposal: too much bureaucracy, too many new liability risks, unmanageable due diligence requirements — and too few clearly visible benefits” (Hancock). The news of the directive being rejected has not sat well with activists and sustainability groups around the world. Many people feel that the leaders of the EU are overlooking the importance of sustainability and corporate social responsibility. However, fortunately, there have been recent talks of amendments and a new upcoming vote on the directive. Despite the looming decision on the CSDDD, it will certainly not be the last corporate responsibility initiative to make headlines, as sustainability becomes more relevant. Sources https://www.reuters.com/world/europe/eu-envoys-fail-back-supply-chain-checks-law-2024-02-28/#:~:text=BRUSSELS%2C%20Feb%2028%20(Reuters),damage%2C%20following%20vocal%20German%20opposition. https://www.gtreview.com/news/sustainability/eu-members-block-supply-chain-due-diligence-law/ https://www.ft.com/content/7db379e2-b2ef-41d9-bad5-367a84af5d6e https://www.esgtoday.com/eu-council-fails-to-approve-new-environmental-human-rights-sustainability-due-diligence-law/ AuthorShane-Anson Bootsma, RUSCA Blog Committee The warehousing industry boom is beginning to fade as companies shift away from the rapid expansion of warehouses and distribution centers and towards efficiency. Recently, companies have been beginning to slash safety inventory levels built up from the pandemic, and now companies have started cutting back on storage space within. Companies like Amazon and Walmart, which experienced a surge in demand during the pandemic, are now reassessing their warehousing strategies. Amazon, known for its vast network of fulfillment centers, is reportedly reducing its safety inventory levels built up during the pandemic. Similarly, Walmart, a retail giant, is cutting back on storage space as it tightens its supply chain operations.
The consequences of these changes are becoming increasingly evident in the form of layoffs and job losses. As companies tighten the reins on their supply chains’ operating and inventory expenses, many are cutting back or closing distribution centers and warehouses, as well as laying off many of those employed there From warehouse workers to logistics professionals, the ripple effects of the industry's transformation are being felt across the workforce. As of December 2023, warehousing and storage employees have fallen to the lowest employment count since November of 2021, with more layoffs coming in 2024 from prominent companies like Saks, Newell Brands, and DHL Supply Chain. These companies are diversifying, shifting to store-based fulfillment or opening micro fulfillment centers rather than leaning on large, costly warehouses. Areas that have relied on warehousing for employment and income have been hit the most with companies such as Amazon downsizing distribution centers and cutting jobs. As a reflection of the trend toward JIT management practices, in San Joanquin, home to a significant portion of the region's warehousing activity, job growth has slowed considerably in recent months. However, according to Gutierrez, president of the San Joaquin Partnership, an economic development group, the warehousing industry as a whole is simply shrinking after a boom and is still “healthy”, albeit in a transition state. Sources https://www.wsj.com/articles/warehousing-demand-is-starting-to-shrink-19c5feaa https://www.wsj.com/business/logistics/warehouse-boom-fades-and-the-hopes-of-a-california-region-fade-with-it-ea03538e https://www.supplychaindive.com/news/warehouse-employment-decline-layoffs-2024/705635/ AuthorVaish Konda, RUSCA Blog Committee On Saturday, February 24, the Indo-Pacific Economic Framework for Prosperity was officially launched. The agreement, an initiative aimed at fortifying economic ties and fostering prosperity in the Indo-Pacific region, involves 14 nations, including Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. Through the IDEF, involved nations move closer to creating a more fair and robust economy for families, workers, and businesses in the United States and Indo-Pacific region (FACT SHEET).
The IDEF partners have successfully negotiated agreements, including the IPEF Supply Chain Agreement, Clean Economy Agreement, and Fair Economy Agreement. Each agreement aims to enhance supply chain resiliency, prepare economic opportunities in clean sectors, and combat corruption, respectively (FACT SHEET). In terms of the supply chain, the framework will allow participating countries to collaborate closely in managing disruptions, particularly during pandemics (U.S.-led Indo-Pacific supply chain deal). The IDEF also prioritizes labor rights, including empowering workers to ensure improved economic competitiveness. New labor rights provisions have been incorporated into these agreements to protect labor rights, such as the establishment of a tripartite Labor Rights Advisory Board and the ability to report labor rights inconsistencies (FACT SHEET). The IDEF also seeks to help prevent the exploitation of migrant workers through strong labor law enforcement (FACT SHEET). Various other strategies have also been formed, such as the IPEF Investment Accelerator, which aims to strengthen investments in partner economies, and the IPEF Critical Minerals Dialogue, which supports the U.S. development of a full critical mineral supply chain (FACT SHEET). Similarly, the IPEF Networks initiative strives to expand ties between businesses, entrepreneurs, and overall societal groups to increase the diversity of stakeholder participation over time. The Indo-Pacific Economic Framework for Prosperity represents progress in fostering economic collaboration and addressing regional concerns. The commitment of the United States and its allies to creating a fair, inclusive, and resilient economic environment is demonstrated through IPEF agreements. As these agreements gain momentum, they are set to redefine economies in the Indo-Pacific, providing benefits for a variety of people. Sources: https://www.whitehouse.gov/briefing-room/statements-releases/2023/11/16/fact-sheet-in-san-francisco-president-biden-and-13-partners-announce-key-outcomes-to-fuel-inclusive-sustainable-growth-as-part-of-the-indo-pacific-economic-framework-for-prosperity/ https://asia.nikkei.com/Politics/International-relations/Indo-Pacific/U.S.-led-Indo-Pacific-supply-chain-deal-to-take-effect-Feb.-24 https://english.kyodonews.net/news/2024/02/c71d7989fdbc-us-led-indo-pacific-deal-on-supply-chain-resilience-takes-effect.html AuthorManuel Torres, RUSCA Blog Committee It’s no secret that retailers have begun trimming their inventories towards achieving a normalized supply chain. It would cater to a far more accurate consumer spending pattern in that instance. It’s increasingly becoming a trend for many companies to either close down existing warehouses or upgrade any existing facilities. According to the article, Warehousing Demand Is Starting To Shrink, Liz Young, asserts, “The amount of U.S. warehouse space listed for sublease reached a record high of more than 156 million square feet in the fourth quarter of 2021, according to real-estate services from Savills” (Liz Young, 2024). Furthermore, this goes into depth and summarizes the strong trend of companies wanting to leave behind pandemic automation and take it to the next level toward staying adaptive in the industry.
The major shift doesn’t come out of thin air, rather, it’s due to the companies returning to the known inventory management strategy known as just-in-time, which can account for the numerous warehouses available for subleasing in the market. As mentioned before, one of the main alternatives companies have sought regarding adding facilities is upgrading current facilities. Global head of industrial research at JLL, Mehtab Randhawa, asserted, “Many companies now are considering warehouses and upgrading to newer buildings that can accommodate more automation and require less labor” (Randhawa, 2024). In other words, it’ll give companies an advantage when it comes to being efficient and more logical than adding more facilities that aren’t efficient. Another strong trend that’s common in the industry at the moment is seeking the goal of “aligning their supply chains for more normal, pre-pandemic stocking and consumer spending patterns” (Liz Young, 2024). The trend is closing several facilities and reducing to make way for newer buildings that are more catered towards efficiency with upgrades. It’s two connections that can be made since companies want to avoid renewals of estates then they’d ultimately have to cut down on numerous facilities to make change for the future of their supply chains and to reach their goal. It’s the most logical decision-making a company can make and could foresee the benefits behind them. Diving to the past on the topic regarding companies upgrading facilities, closing warehouses, and building new facilities with the most up-to-date equipment. All these trends have been predicted by experts in 2022 to surround the specific idea behind warehouse demands. Author, Mike O’Brien, greatly summarizes the accurate prediction for warehouse demand but also mentions another scope companies would be chasing. In the article, Warehouse Space Demand Will Shrink in 2023, he claims “Demand for warehouse space will decrease in 2023, experts predicted, but companies will still be looking to fill in network gaps opportunistically while continuing to move sourcing and inventory closer to domestic customers to hedge against supply chain shocks” (Brien, 2022). Furthermore, it’s fair to say experts were nearly right on the dot with their prediction, and that also includes the strategy companies are pursuing for the most maximization of their supply chain. It’s evident companies have already committed to these practices today. A spokesman from online retailer, Fanatics, affirms “We will be shifting our fulfillment efforts to newer buildings in and around the region where we have access to updated technology and infrastructure to ensure a better fan experience” (Young, 2024). In addition, it can’t go unnoticed the efforts towards renovating norms that companies are used to and essentially reaching the mentioned goal of aligning their supply chains. That’s not to mention warehouse leasing still being popular in today’s market. It can be assumed that it’s still a process companies are going through. There’s still a suggestion that subleasing continues to grow as mentioned in the article from Liz Young. Therefore, as long as more companies are innovating their supply chains through these newer strategies. Leasing will remain pivotal for years to come. Works Cited Warehousing Demand Is Starting to Shrink, www.wsj.com/articles/warehousing-demand-is-starting-to-shrink-19c5feaa. Accessed 25 Feb. 2024. O’Brien, Mike. “Warehouse Space Demand Will Shrink in 2023.” Multichannel Merchant, 20 Dec. 2022, multichannelmerchant.com/operations/warehouse-space-demand-will-shrink-in-2023/. Why Warehouse Rents Keep Going up While Demand Is Dropping - WSJ, www.wsj.com/articles/why-warehouse-rents-keep-going-up-while-demand-is-dropping-4dc9a120. Accessed 25 Feb. 2024. |
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