NYC, Robots, Nordstrom’s Omnichannel Bet and More
Grab a coffee and settle in as we take you on a whirlwind tour of this week’s most exciting last mile logistics and supply chain updates. First, we’re zipping through New York City streets, where a cool $44.7 million sets the stage for serious transportation upgrades. Next, we’ll peek into the complex world of big and bulky last mile deliveries to see what’s slowing them down and what could speed them up. We’ll also uncover how a slip in inventory counts could hurt profits, look at Nordstrom’s new state-of-the-art fulfillment center and explore the powerful combination of human ingenuity and robotic precision in warehouses. Let’s dig in.
$44.7 Million Boost: New York’s Transportation Revolution Kicks into High Gear
Uncle Sam’s dropping serious cash on the Empire State, and it’s not just for show. The U.S. Department of Transportation just announced a $44.7 million investment in three game-changing projects across New York that could do wonders for the city’s transit and logistics.?
Urban Freight Gets a $5.6 Million Makeover
Forget those massive trucks clogging up your street. With $5.6 million in funding, New York City is aiming to upgrade how goods move through town. We’re talking cargo bikes zipping past traffic, boats hauling freight along the Hudson and cleaner vehicles that won’t leave you choking on exhaust. There’s a lot of work to do. Still, it’s a solid plan to make deliveries smoother, streets cleaner and sidewalks more accessible.
$39 Million for Trains and Parking: Brooklyn, Queens and Beyond
Now, let’s break down the rest of the allocations. First up, $15 million is going toward planning a light rail line connecting Brooklyn and Queens. The benefits should shave considerable time off commutes, link communities, open up job opportunities and make the city safer for drivers and pedestrians. Meanwhile, on Long Island, Riverhead’s snagging $24.1 million to build a 500-space parking garage and overhaul its downtown streets. This project is all about breathing new life into the riverfront, creating jobs and making it easier for people to get around and enjoy the town.
Slowing Down But Not Out: The Current State of Big and Bulky Last Mile Delivery
The big and bulky last mile delivery market, as analyzed by Armstrong & Associates, Inc. (A&A), showed mixed trends in 2023. Yet, projections show that by 2026, we could see a promising rebound. What’s stirring things up behind the scenes?
The 2023 Review: Trends and Challenges
With revenues ranging from $1.2 million to $1 billion, big and bulky services constitute about 34% of the $10.3 billion U.S. market. However, growth slowed in 2023, dropping from a 13.7% CAGR (2017-2023) to a projected 9.5% (2024-2026). The sector also struggles with high transport costs, eating 30-40% of expenses. At the same time, basic deliveries now bring in less than $90 per shipment.
Looking Ahead: Opportunities and Growth Strategies
Despite the recent slowdown, the big and bulky sector could rebound considerably and offer mouth-watering potential by 2026. The main reason why? E-commerce continues growing, and consumers increasingly buy big and bulky items like furniture and appliances online. Perhaps that’s why companies have no other choice but to get creative and increasingly use independent contractors, 3PLs and freight brokers to improve last mile delivery.?
Retail’s Billion-Dollar Challenge: Enhancing Inventory Accuracy
In retail, a tiny slip-up in inventory tracking can spiral into significant financial losses. As shopping evolves into a seamless omnichannel experience, retailers face the dual challenge of aligning inventory accuracy with skyrocketing customer expectations. ??
Closing the Inventory Data Gap
Imagine the chaos on a busy shopping day — items get moved, misplaced or even stolen, creating a nightmare for inventory tracking. This issue becomes even more pressing in an omnichannel setup, where accurate inventory data is crucial across various touchpoints and platforms. It’s no surprise that 55% of retail CFOs are leveraging tools like scenario modeling to sharpen their inventory accuracy to guarantee that what’s promised online can be picked up in-store.
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Tech to the Rescue: Smart Devices on the Sales Floor
It’s like we’ve gone from flip phones to smartphones overnight in retail. Forget the bulky, outdated barcode scanners. We now live in a tablet-driven era. These tools transform store associates from traditional salespeople into tech-powered customer service pros. With accurate data at their fingertips, they can answer queries, update inventory levels and even help find alternatives for out-of-stock items, all in real time. It’s making shopping smoother and more personal, while keeping inventory management and the store running like clockwork.
Nordstrom’s Big Omnichannel Move: Upgrading Its Supply Chain with State-of-the-Art Fulfillment
Nordstrom’s making waves in the supply chain world, and it’s not just about fancy clothes anymore. The retail behemoth is on the brink of completing a major upgrade with its new West Coast omnichannel fulfillment center to speed up deliveries, cut costs and improve its handling of everything from your favorite blazer to the trendiest sneakers.
A Strategic Upgrade
In their May 30 earnings call, Nordstrom outlined the transition from their old San Bernardino center to the cutting-edge facility in Riverside, expected to wrap up within days. This 1-million-square-foot automated hub, which opened doors in 2020, isn’t just any warehouse. It’s equipped with a high-tech pouch system that efficiently stores, sorts and transports items. With dynamic order routing and a sophisticated command center, Nordstrom has more than doubled the volume handled here. This facility represents a leap toward faster click-to-delivery times — a more than 5% increase since last quarter — and a smoother fulfillment process.
Boosting Efficiency and Experience
One thing about this strategic pivot is it puts operational efficiency and the customer experience first. The new omnichannel center allows Nordstrom to better blend in-store and online shopping into a unified experience across all their platforms, including Nordstrom Rack. Moreover, the CEO highlighted the center’s role in driving down costs and improving the speed of getting merchandise through the network to lead to happier customers, boost sales conversions and reduce returns.??
How Human Touch Enhances Robotics in Warehouses
A recent Harvard Business Review-featured study reveals a crucial insight for the logistics sector: combining human ingenuity with robotics is more efficient than relying on automation alone. With warehouses around the globe integrating these technologies, this blend not only maximizes efficiency, but also improves worker satisfaction and job performance.?
Integrating Human Skill with Robotic Precision
Robotic systems in warehouses can perform up to 1,000 tasks per hour. Yet, they hit a performance ceiling due to spatial and operational constraints. Here, human-robot collaboration (HRC) steps in. Companies like DHL and CEVA are pioneering this approach, seeing tangible benefits such as reduced worker fatigue and increased productivity. For instance, allowing workers some autonomy in task management has led to a productivity increase of 8.3% when humans lead the operational strategy with robots in a supportive role.
The Human Advantage in Automation
As automation surges from $7.91 billion in 2021 to a projected $51 billion by 2030, the human touch remains invaluable. Workers bring unique adaptability and a knack for improvement that robots can’t replicate. Interestingly, when humans team up with their robotic counterparts, job satisfaction rises, errors fall and efficiency climbs. It begs the question: How will this synergy between human ingenuity and machine precision further shape the future of work?
From City Streets to Warehouse Floors: OneRail Drives the Future of Logistics
From New York’s multimillion-dollar transit makeover to the synergies of humans and robots in cutting-edge warehouses, innovation is the name of the game these days. That’s where OneRail comes in to shake things up and take your operations to new levels:
No matter your industry, OneRail can transform your logistics strategy. Schedule a demo today to find out how.
First seen on the OneRail blog here: https://www.onerail.com/this-week-nyc-robots-nordstroms-omnichannel-bet-and-more/