The Friday Report: May 20th, 2022

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Fast Delivery a Favorite Among E-Commerce Consumers

A recent survey from LaserShip shows that paying more for faster order fulfillment is favored by e-commerce consumers. Almost 60% of respondents paid for faster delivery, and 69% of those paid extra for next-day delivery. LaserShip says that its findings suggest that the pandemic’s impact on shopping behaviors is a lasting effect, since 62% had never paid for expedited delivery prior to June 2020.   

  • 89% of consumers prefer home delivery (up ~10% from 2020) 
  • 73% of consumers view fast delivery as critical to their shopping experience (up 16% from 2020) 
  • 64% of consumers did not try a new retailer due to slow delivery 
  • 54% switched retailers because of slow delivery

Consumer demand for home delivery is anticipated to increase post-pandemic and slow delivery is costing retailers. The LaserShip study offers insights to help build flexible and resilient supply chains, so that 3PLs can help to meet consumer needs.  

To read more, please click here. 

Demand for Warehouses and Distribution Centers on The Rise

According to a recent report by CBRE, the demand for the construction of warehouse and distribution centers is on an upward trend. This trend is anticipated to continue through 2022 and 2023.  

As global supply chains reorganize into regional optimization, the need for warehouses near major metropolitan areas such as San Francisco, Dallas, New York, and Chicago are skyrocketing. Proximity to docks, airports, and trucking services are factors that influence site selection as demand for e-commerce increases.  

In addition, undeveloped real estate and inactive lots such as department and grocery stores are being bought and leased to be set up as last-mile distribution centers. These centers are important for providing service in high traffic transportation corridors. 

Markets Projected to Have Largest Growth Percentage: 

  • Louisville, Kentucky 
  • Greenville, South Carolina 
  • Kansas City, Missouri 
  • Phoenix, Arizona 
  • Las Vegas, Nevada
  • Central Florida 

To read more, please click here. 

FAA commences $1 billion investment in Air Traffic Control System

The Federal Aviation Administration has initiated investment into the United States air traffic control system. The investment totals $1 billion of a pledged $5 billion. The money is being used to repair, modify, or maintain infrastructure and equipment to keep the country’s facilities as some of the best in the world.  

FAA Deputy Administrator A. Bradley Mims suggests that there is a long road ahead to decrease the backlog of maintenance and begin improvements to safely operate United States airways. Mims says that the investment is designed to directly impact women-owned and minority-owned businesses to expand jobs and opportunities through the nation.  

Breakdown of $1 Billion Investment 

  • Reinforce Navigation, Weather & Tracking Equipment: The FAA uses a host of communications, surveillance, weather and navigation systems to guide aircraft safely. The backlog of supporting infrastructure sustainment projects will be finished to keep these systems reliable.  
  • Power Systems: Replace underground cables, transformers, switches at airports, engine generators and fuel storage tanks that are part of primary and back-up power systems for our air traffic systems.  
  • Enroute Flight Centers: Update and repair the country’s Air Route Traffic Control Centers that handle aircraft flying at high altitudes.  
  • Long-Range Radars: Renovate or replace the supporting infrastructure at long-range radar sites, which are critical to tracking flights between airports.  
  • Replace Towers: Pay for design, site evaluation and preparation for the first air traffic control towers that will be replaced over the coming years. Many of the towers selected will be located at regional and smaller airports.  
  • Improve Towers and Approach & Departure Facilities: More than 50 percent of our towers and TRACON facilities, which handle flights entering and exiting busy airspace, are over 40 years old. Funding will pay for new elevators, plumbing systems, and supporting infrastructure. 
  • Environmental and Safety: Remove and restore areas where we have outdated facilities or personnel safety infrastructure that is no longer used and incorporate environmental and personnel safety updates. 
  • Personnel & Travel: Recruit and hire installation technicians and engineers needed to improve and modernize these facilities. 
  • Facility Security: Upgrade various integrated security systems at all FAA staffed facilities. Upgrades include those for guardhouses, visitor parking, fencing, perimeter hardening, window blast protection and lighting.  

To read more, please click here. 

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