US agency set to rule on whether Amazon is a distributor | US worker productivity increased in Q4 2024 | Grainger plans 1.2M SF DC outside Houston
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February 2, 2024
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The Consumer Product Safety Commission is reportedly set to decide whether it will classify Amazon as a distributor, which could put the online marketplace on the hook for the safety of the third-party products that make up more than 60% of its sales. Such a classification would open Amazon to lawsuits and recalls for items sold on its website and shipped through its logistics network.
Full Story: The Wall Street Journal (2/1) 
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US worker non-farm productivity increased at a faster-than-expected 3.2% annualized rate in the fourth quarter, according to Labor Department data. Improved worker productivity helps businesses contain unit labor costs and could potentially boost the Federal Reserve's battle against inflation and increase the likelihood of interest rate cuts.
Full Story: Reuters (2/1) 
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Distribution giant Grainger announced plans for a new 1.2 million square feet distribution center near Houston, Texas, that is expected to open in 2026. Grainger said the facility, which will contain over 250,000 industrial supply items, would boost the company's capacity to deliver next-day orders and meet customer demands for timely and efficient product delivery.
Full Story: Modern Distribution Management (tiered subscription model) (2/1),  Distribution Strategy Group (2/1) 
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Automating with AI at the industrial edge
Cloud resources remain a vital tool for manufacturers, but on-site edge devices are now capable of AI inferencing to help reduce latency, save on bandwidth costs, and allow businesses to retain full ownership of their data. Join experts from Red Hat, OnLogic, and Guise AI, as they discuss AI in factory automation. Register now.
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Operations and Technology
Warehouses and other businesses using automatons are enlisting "robot wranglers" charged with "corralling and managing the robots, fixing minor maintenance issues and keeping tabs on their locations," writes Liz Young. Though the technologies can boost efficiency, some robots tend to wander off, while others are known for their naivete and even misbehavior, say the wranglers.
Full Story: The Wall Street Journal (1/30) 
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Honeywell and Hai Robotics are joining forces to provide innovative storage and retrieval solutions for distribution centers in a partnership that combines Hai's robotics technology and Honeywell's software expertise. The aim of the tie-up is to help distribution centers boost efficiency by utilizing existing space better, handling items faster, and freeing up workers to focus on higher-value tasks.
Full Story: The Manufacturer (U.K.) (1/31) 
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Government urged to act to avoid US port backups
(Justin Sullivan/Getty Images)
The US government needs to take steps now to deter possible congestion at US ports as more ocean carriers reroute away from the Red Sea and retailers consider returning to West Coast ports for back-to-school and holiday shipments. "We need to make sure that our ports, terminals, railroads, harbor truck drayage providers and warehouses are ready for the increased cargoes," says Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation.
Full Story: FreightWaves (1/30) 
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Sales and Marketing
Meghan Bazaman, a senior analyst at Capterra, talks about how business-to-business marketers can use AI to uncover powerful brand insights. Bazaman explains how to improve data accessibility and management, and how to ensure teams have the right skills to use AI tools to monitor social media.
Full Story: MarketingProfs (free registration) (1/31) 
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The Business Leader
The Federal Reserve opted to leave its benchmark federal-funds rate unchanged at the conclusion of its meeting this week, and Chair Jerome Powell suggested that cuts might not be coming at the next meeting. "Based on the meeting today, I would tell you that I don't think it's likely that the committee will reach a level of confidence by the time of the March meeting," Powell said. Markets fell in response to the news, with the S&P 500, Nasdaq Composite and Dow Jones Industrial Average all down for the day.
Full Story: CNBC (1/31),  The Wall Street Journal (1/31) 
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Recent tech industry layoffs followed by rehires have exposed the complexities of measuring workforce efficiency in today's dynamic job market, which is characterized by evolving work models and rapid technological advancements. Gauging productivity matters because it influences decisions on issues as diverse as remote work and the integration of AI, potentially reshaping economic growth and labor dynamics on a global scale.
Full Story: Bloomberg (1/30) 
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