Retailer implements consultative service, saves $1.5 million – Modern Materials Handling

A circular economy, an economy without waste and no depletion of finite resources, gains traction in the sustainability debate as a way out of the current linear “take-make-waste” economy. Circular economy principles, ranging from ecodesign and recycling to new business models, such as products-as-a-service, can lower CO2-emissions and significantly contribute to combatting climate change. Furthermore, moving towards a more circular economy could deliver benefits such as improving the security of the supply of raw materials, increasing competitiveness, stimulating innovation, boosting economic growth and creating jobs.

Time has been of the essence over the past year as demand for goods outstripped supply, forcing shippers to order more than they needed. Now that consumer demand is waning, companies find themselves with more inventory than they can handle. The national Outbound Tender Volume Index (OTVI) has dropped 12% over the past year and 14% over the past month while loaded intermodal volumes (ORAILL) are trending higher. Could shippers be using the bottlenecks around ports and railheads and a slower transit time from intermodal to decrease their inventory costs?  There is no denying that intermodal is not experiencing the same decline in demand as its truckload counterpart. Even though these two modes tend to move in relative sync with each other, that has not been the case for most of the past year.