The Wall Street Journal page 1 detailed how big companies were gaining significant competitive advantage from both scale and innovation. Examples given include:
- A partnership between IKEA and a construction firm to build “factory” apartment buildings. Cost down 35% – elapsed construction time down 50%
- Amazon – where volume drives the ability to deliver directly to the local US Post Office for lower-cost last-mile delivery
We see it too! Only the biggest and brightest companies are optimizing order creation and warehouse picking/loading with AutoO
2. (See AutoO
2 here ) This gives them lower costs than smaller competitors. I can only speculate why smaller companies are not grabbing the AutoO
2 technological advantage with both hands.
J.B. Hunt reported double-digit increases in revenue per load. Key points:
- Intermodal revenue up 16% (Intermodal is about 50% of their business)
- Brokerage revenue is up 56%
US oil slides – below $68/barrel (down ~4% as of noon EST Monday)