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Integrating Risk Management Into Supply Chains: 5 Points to Cover

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Archives, Global Logistics, Global Trade Daily, International Trade

Integrating Risk Management Into Supply Chains: 5 Points to Cover

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Risk management is central to running any business, but it’s especially important for supply chains. Disruptions in the supply chain have far-reaching ripple effects, as the COVID-19 pandemic has made painfully evident. With logistics serving as the backbone of virtually every other operation, risks here are risks everywhere.

Supply chains must identify, document and respond to all potential dangers to maximize efficiency and resiliency. However, while many organizations are aware of this need, fewer understand how to implement proper risk management.

Why Supply Chains Need Better Risk Management

According to a PWC survey, 60% of supply chains pay only marginal attention to risk reduction processes. The study also revealed that most of these companies focus on maximizing profit, minimizing costs or maintaining service levels. Ironically, had they prioritized risk management, they’d be better equipped to meet those goals in the face of disruption.

Widespread supply chain issues amid the COVID-19 pandemic further illustrate the subpar state of risk management. Early in the outbreak, 75% of U.S. companies saw capacity disruptions from the pandemic, and many continued to face similar challenges throughout the year. The world’s supply chains were clearly unprepared to handle these risks.

Understanding the importance of risk management is the first step towards improvement. As supply chain managers start to create a risk management plan, here are five points to cover.

1. Identify and Organize Risks

Risk management in any operation begins with identifying the risks an organization faces. These can be internal, like poor user behavior leading to a data breach, or external, like a natural disaster. This may also take careful analysis, as some risks, such as changes in customer preferences, may not come to mind immediately.

Supply chain managers should break down every node and link to find risks. When recording these, it’s also crucial to determine their potential impact on the company, which is often more substantial than initially evident. For example, worker’s compensation claims can incur ongoing care expenses and disability payments on top of the original cost of care.

After compiling a list of risks and their potential impacts, supply chains should prioritize them. Weigh each hazard according to its likelihood and the size of its consequences. The most likely and most disruptive deserve the most attention in planning to prevent and mitigate them.

2. Create Response Plans for Known Risks

This organized list represents a supply chain’s known risks. These are the things that a company can predict and quantify, and as such, managers can create a response plan for them. Businesses may not be able to create a detailed plan for every item, but they should for at least the most threatening eventualities.

Some hazards don’t require extensive planning and preparation. For example, if a truck battery dies, drivers can start it without jumper cables if need be to take it to a repair shop. Even though the solution here is fairly straightforward, businesses should still write down what to do to ensure quick responses.

Other events need a more detailed and lengthy response plan. A supply shortage from an overseas supplier, for example, may require backup sources, a transition plan and steps to mitigate customer reactions. Creating these plans can take tremendous effort, but emergency responses will be slow and ineffective without them.

3. Ensure Flexibility for Unknown Risks

Of course, supply chain managers can’t predict every possible eventuality. In fact, unknown risks like the COVID-19 pandemic can be the most disruptive because businesses don’t have a specific action plan for them. While supply chains can’t predict the details of these events, they can prepare for them.

The key to preparing for unknown risks is to ensure flexibility. When a supply chain can’t predict a disruption, it must be able to adapt to it in the moment. If the chain is flexible by design, it can adapt more easily, minimizing the effects of unforeseen events.

Segment, stock and plan (SSP) strategies can reduce part shortages by 50 to 90%, helping supply chains become more flexible. Supply chains should also consider distributed sourcing, which mitigates the impact of a disruption in one location. Creating more transparency through internet of things (IoT) technology and data analytics will also help.

4. Build a Risk-Aware Culture

One easily overlookable point of supply chain risk management is cultivating a risk-aware culture. Supply chain managers can’t expect to discover every potential disruption on their own, much less fully understand their impact. Employees throughout the supply chain may have a more personal understanding of these things, making them indispensable assets.

Just as effective cybersecurity involves all employees, so does the rest of risk management. All workers should be able to report risks they notice, requiring easy and open communication tools. Similarly, management must be open to change and ensure employees that bad news is a welcome alert, not something to punish.

Some supply chains may even consider rewarding employees whose insights lead to meaningful risk management improvements. When everyone can report and discuss potential hazards, supply chains can get a more comprehensive picture of their risk environment. This communication will also improve flexibility for unknown risks.

5. Monitor and Review Risks

Finally, supply chains must understand that risk management is an ongoing process. Some experts claim that constant monitoring is the best way to strengthen the supply chain, as it enables quick, effective responses. The first step here is expanding visibility through data collection and reporting.

Regular reports from all supply chain nodes provide an updated picture of a supply chain’s risk environment. Similarly, IoT tracking and data analytics can enable real-time visibility across an organization and help predict incoming changes. When relying on data analytics, supply chains must ensure they’re gathering extensive, high-quality data, as poor or insufficient datasets can be misleading.

Monitoring this data to predict incoming disruptions is only part of the ongoing risk management process. Supply chains must also periodically review their risk management framework as their situation changes. What’s most threatening today may not be tomorrow, so these plans should evolve over time.

Risk Management Is Crucial for Supply Chains Today

The sheer size and complexity of supply chains today make risk management essential. Disruptions can come from anywhere and have far-reaching consequences if these organizations don’t prepare to counteract them.

As supply chain managers tackle their risk management framework, they must be sure to cover these five points. If not, they could fall short when an emergency arises. By contrast, following these steps can help them ensure ongoing efficiency and minimal disruption in the face of adversity.

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Archives, Global Trade Daily, News

Bauxite Prices in China Leap Up After Military Turmoil Took Hold in Guinea

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IndexBox has just published a new report: ‘China – Bauxite – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In September, the price for Guinean bauxite in China reached its highest point in 18 months. The military coup in Guinea has caused concerns that shipments from the country will decrease and instigated the spike. Guinea is the world’s primary bauxite supplier, making up more than half of all exports. In case there is a decline in supply from Guinea, China may expand imports from Australia. An increase in bauxite prices could lead to costs for aluminum on China’s domestic market to grow as the country imports nearly 57% of the bauxite it consumes.

Key Trends and Insights

Prices for bauxite in China spiked due to concerns that the recent military coup in Guinea may cause shipments from the country to fall. Guinea is China’s main source of bauxite. In 2020, China imported 53M tonnes of the Guinean product making up 47% of all its bauxite imports.

In September, Guinean bauxite reached $50.50 per tonne on the Asian Metal exchange, its highest point since March 16 last year. Despite no information indicating an interruption in mining activities, the stock market responded to the political situation in Guinea with a spike in prices. Key players operating in Guinea´s bauxite industry, such as Compagnie des Bauxites de Guinee (CBG) and Société Minière de Boke (SMB), did not announce any possible suspension of works.

Guinea is the world’s largest source of bauxite accounting for 50% of global exports. A reduction in supply from Guinea would inevitably result in a deficit in the global market and increase bauxite prices from other countries.

If bauxite shipments from Guinea fall, then China is expected to expand imports from the two other main countries supplying it, Australia and Indonesia. Australia is the top bauxite producer in the world and would most likely grow exports to China. Together, Guinea, Australia and Indonesia supply 97% of all imported bauxite to China.

Bauxite is the main source of alumina or aluminum oxide, which is used to produce aluminum metal. China produces over 60% of the world’s aluminum and is the largest consumer of bauxite. The country’s bauxite imports account for 77% of the global total. An increase in bauxite prices will cause costs for Chinese aluminum products to rise as the country imports nearly 57% of the bauxite it consumes.

Bauxite Production in China

China ranks third in global bauxite production, following Australia and Guinea. China accounts for 16.2% of the world bauxite production.

In 2020, approx. 60M tonnes of bauxite were produced in China; with a decrease of -14.3% compared with the year before. In value terms, bauxite production dropped dramatically to $1.6B in 2020 estimated in export prices.

Bauxite Imports into China

In 2020, the amount of bauxite imported into China expanded sharply to 112M tonnes, picking up by +11% from the previous year’s figure. In value terms, bauxite imports reduced to $5.1B (IndexBox estimates) in 2020.

Guinea (53M tonnes), Australia (37M tonnes) and Indonesia (19M tonnes) were the main suppliers of bauxite imports to China, with a combined 97% share of total imports.

In value terms, the largest bauxite suppliers to China were Guinea ($2.5B), Australia ($1.5B) and Indonesia ($873M), together accounting for 96% of total imports.

Indonesia saw the highest growth rate of the value of imports (+29% y-o-y), among the main suppliers over the period under review, while purchases for the other leaders experienced a decline.

In 2020, the average bauxite import price amounted to $45 per tonne, reducing by -11.3% against the previous year. Average prices varied noticeably amongst the major supplying countries. In 2020, the country with the highest price was Indonesia ($47 per tonne), while the price for Australia ($42 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Indonesia, while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

warehouse
Archives, Global Logistics, Global Trade Daily, Special Reports, Warehousing

The Biggest Warehouse Fraud Cases in Recent History

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There is hardly a branch of the shipping industry that hasn’t experienced some kind of fraud, from importer customs fraud present in every country to tax fraud and agreement evasion. But, one of the scams that is not often talked about is warehouse fraud. You might be surprised to learn that warehouse fraud is by no means uncommon. In fact, there have been quite a few intentional fraud cases involving warehouse management that hurt not only the parties involved but the industry in general. In this article, we will go over the two largest warehouse fraud cases in recent history: the Qingdao scandal and the Nickel warehouse fraud.


Notable warehouse frauds in recent history

While these two cases are pretty sizable, it is essential to remember that they are by no means the only warehouse scams in history. Nor will they be the last. While we have modern safety equipment and high-tech features, keep in mind that willing participants carried out these actions. One can hardly create a technology that will overcome human greed. So, while these cases may seem considerable now, expect that we’ll be reading about even bigger scams in the future.

Qingdao scandal

The Qingdao scandal in China was based on using receipts multiple times to raise finance. While now Quingdao is considered one of the best factories in the world (Haier), it was under quite a bit of scrutiny during this scandal. The effects of it are manifold, but most were to the metal industry. To help you understand this fraud, we will go through it in a chronological timeline.

June 2014

Qingdao receives allegations of fraudulent use of warehouse receipts. The main accusation is that companies are using receipts multiple times to raise finance. The investigation focuses on bonded warehouses in the Dagang port terming. But, it neglects to take note of other bonded and non-bonded areas. Several banks like Citi, Standard Chartered, and Standard Bank claim that they are monitoring the investigation and reviewing the financial activities in Qingdao.

July 2014

Citic Resources Holding files a claim against the operator of a warehouse at Qingdao port. They wish to recover copper and alumina from it. Qingdao experiences significant postponement and rerouting of shipments, which causes copper premiums and prices to firm up in Shangai.

August 2014

Qingdao faces a court case. Glencore’s warehousing division sues them over undelivered aluminum. Shanxi Coal Import & Export sues Citic Recourses Holdings for $89.75 million, plus interest. Their primary claim is over undelivered aluminum ingots.

September 2014

Qingdao port states that the fraud contains 400,000 tonnes of material, including 80,000 tonnes of aluminum ingots, 20,000 tonnes of copper, and 300,000 tonnes of alumina.

December 2014

Trading company Mercuria and banking firm Citi give their arguments as they face a $270 million exposure due to Qingdao.

March 2015

Wanxiang Resources (Singapore) and Impala Warehousing & Logistics (Shanghai) face each other in UK courts. That is because Impala brought a claim against Wanxiang, forcing them to impose an anti-suit injection. To prevent Wanxiang from pursuing a proceeding, Impala is granted the anti-suit injunction.

May 2015

UK High Court settles the dispute between Citibank and Mercuria. The main subject of dispute was the missing metal from Qingdao.

August 2015

The People’s Bank of China slashes interest rates. Furthermore, it lowers the bank requirements for the deposit reserve ratio. They do this mainly to help many Chinese metal companies under considerable financial stress due to the Qingdao scandal.

Nickel warehouse fraud

The Nickel warehouse case mainly revolved around the Access World company owned by Glencore. They revealed that at the end of January 2017, numerous forged warehouse receipts bearing its name were in circulation. Fortunately, this was mostly contained in Malaysia and South Korea. The main difference between this and the Qingdao scandal is that no nickel has been physically delivered against the forged receipts. It was large-scale fraud involving multiple people and happening in different locations. The effects of the scam can be hard to evaluate, but the rough estimate is over $300 million. Therefore, it is fair to say that it is one of the largest warehouse fraud cases in recent history.

June 2016

Access World issues the original nickel warehouse receipt to the Straits (Singapore) Pte Ltd, the trade facilitation arm of Straits Financial Group. Unidentified parties make copies of Straits’ nickel warehouse receipts at some stage between 2016 and January 2017 to raise finance from banks.

January 2017

London-based Marex Spectron brings receipts of failed authentication from Access World, revealing the forgery. This prompts other receipts holders to check whether their documents were legit. Access World reveals that there are forged receipts in circulation in Asia. The London Metal Exchange then tells the warehouse operators to stop warranting metal where ownership is not assured. This includes any possible links to forged warehouse receipts such as those reported by Access World.

February 2017

Authorities confirm that Straits Singapore held the original Access World nickel warehouse receipts.

March 2017

Authorities identify France’s Natixis and Australia’s ANZ as being among the banks that agreed to provide cash against the forged warehouse receipts. Furthermore, Brokerage companies EDF Man and Marex Spectron are found to be caught up in the scheme.

May 2017

Natixis files a lawsuit against Max Spectron to recover $32 million in losses.

June 2017

Marex Spectron files a defense, claiming no liability in the case filed by Natixis. They claim that warehouse operator Access World incorrectly authenticated forged documents as genuine, which involves them in the lawsuit.

Conclusion

When reading about warehouse fraud cases in recent history, it is vital to keep in mind their scope. They usually involve large-scale companies, numerous participants, and millions of dollars. Therefore, if you feel worried about your warehouse, don’t be. Just get the necessary insurance, and use the recommended safety measures. Those two are the best possible protection from warehouse fraud.

_____________________________________________________________

Cory Hooker worked as a moving coordinator and long-distance moving consultant for many relocation companies. His most recent engagement was with Movers Toronto. He now focuses on writing helpful articles and raising his two daughters Megan, and Pauline.

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Archives, Commentary, Global Trade Daily, Special Reports

Invisible Safety: How What You Can’t See Can Hurt You

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COVID-19 outbreaks in the workplace have revealed the importance of protecting and maintaining the health and wellness of employees. From social distancing to HVAC upgrades, factories have implemented strict protocols to stop the spread of the COV2 virus.  

If you walk into any manufacturing facility in North America, the first thing that you will see are signs related to safety. That’s because factories and assembly plants often have dangerous equipment and machinery, and even a minor lapse can have serious – or even life-threatening – consequences. Employers want to keep their team members safe, and they also know that the legal and financial risks of failing to maintain rigid safety standards can be devastating at a business level. But thanks to the COVID-19 pandemic, one of the biggest threats to safety can’t be seen at all: the air we breathe. Forward-thinking assembly companies need to factor this in when they evaluate their protocols for keeping their employees healthy and safe. And in many cases, existing HVAC systems aren’t up to the task.

There was a lot we didn’t know about the novel coronavirus when it first reached North America in March 2020, but over the last year and a half we have learned a great deal. As it turns out, the risk of disease transmission through surface contact is fairly minimal, as is the likelihood of an outdoor super spreader event – but more than 99% of COVID-19 cases can be traced back to events held in indoor spaces with poor ventilation and filtration. That’s why the Centers for Disease Control (CDC) has issued so many guidelines on how companies can keep their facilities safe. One of their biggest recommendations is for companies to improve ventilation to reduce the risk of people getting sick. 

That’s easier said than done. The best way to improve ventilation is to open windows and circulate fresh air. Unfortunately, many buildings, especially assembly facilities, have self-contained ecosystems to protect the quality of the items that are being put together. After all, letting free-floating particles into a building where microchips or electronic components are being put together is a recipe for disaster. What works during “normal” times to maintain product integrity may actually be harming the workers who are unable to breathe air from the outside. 

Despite some misinformation from the early days of the pandemic, HVAC systems are not responsible for the spread of pathogens. That’s the good news. On the other side of the coin, many of these systems don’t circulate enough air to maximize the safety of people inside the facilities that rely on them to maintain appropriate levels of humidity and temperature. Replacing entire heating and ventilation systems is expensive and time-consuming. So what options do operators of assembly facilities have to maintain employee health without jeopardizing their operations? 

The answer is supplementary air systems, which actually top the list of CDC recommendations for maintaining the safety of indoor spaces where natural ventilation is impossible. These devices come in many sizes, and can be used to filter air in small facilities as well as buildings with several million square feet of floor space. Regardless of how big a facility is, the principle is the same: air needs to be circulated and properly filtered to remove potentially dangerous microbes from the environment. Existing HVAC systems actually do a pretty good job, but they simply don’t move enough air to be effective, especially in an era defined by an airborne virus that has already killed more than half a million Americans. 

Clearly, this is something that needs to be taken seriously by companies in the manufacturing space. But this isn’t just a short term solution. While many people were optimistic that rising vaccination rates and social distancing rules would lead to the end of the coronavirus pandemic this fall, there is still plenty of reason for concern. That’s because in many parts of the country vaccination rates remain very low, and new variants, including Delta, are proving to be much more of a problem than doctors initially anticipated. Despite the many heroic advances in medicine over the last 18 months, the reality seems to be that we will be dealing with the long-tail effect of COVID-19 for years, or even decades, to come. 

It has been a century since the last major viral epidemic caused this much damage, but most health experts agree that the next pandemic will happen long before the year 2120. In fact, there is a high probability of a similar event occurring in the next 25 years. With that in mind, operators of assembly facilities not only need to get through the current pandemic, but also prepare for the next one. Maintaining air quality should be at the top of their list as they plan for an uncertain future. 

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Marshal Sterio is the CEO of Surgically Clean Air Inc., a Toronto-based manufacturer of portable systems that purify air by supplementing existing HVAC systems. The company’s products are market leaders in dental practices, currently protects over 50,000 dental professionals, and are used by Fortune 500 companies, Major League Baseball clubs, the NBA, the NHL and thousands of other organizations. 

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3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

7 Supply Chain Optimizations to Protect You in 2022

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Current market turmoil is too big for any company to control, but leaders can take some first steps to protect themselves in 2022 with supply chain optimization best practices. Shoring up relationships, improving understanding of current affairs, and adding safeguards all can play a role in securing operations. For companies looking to create a significant impact in short order, here are seven optimization efforts to try.

1. Map the supply chain

Supply chain designs are changing rapidly. Not only can modern technology bring partners together and facilitate near-instant data transfer, but mergers and acquisitions are shifting the landscape of what’s available. To optimize a modern supply chain, you need a good map to see how parts move and where new connections appear.

Consider creating a robust visualization of your supply chain. Show how goods move, where data flows, and what connects each point physically and digitally. You may identify new pathways or constraints, discover unnecessary, duplicative efforts, or uncover advantages such as optimized warehouse locations. But to find these, you need to be able to look.

2. Consolidate data and documents

You need accurate data that’s readily available if you want to respond to a crisis. The more significant the delay in collecting and analyzing this information, the more time it takes to adapt to whatever occurs. So, focus your supply chain optimization on efforts to automate data capture, consolidate it, and make it usable for you and your partners.

One core area to start with is your documentation. Look for tools that support data capture and verification in standard documents, such as invoices, bills of lading, service-level agreements (SLAs), dock receipts, and more. Build a single repository to help you track everything a shipment uses. When possible, work to integrate your tracking and partner systems so that everyone is working from the most recent status and information.

3. Strengthen current relationships

Your supply chain is complex and intricate, involving a wide range of partners. Use the lessons and capabilities from documentation-focused efforts to foster broader communications improvements. Ask suppliers and partners what they need from you, such as updated forecasts or projections. Speak with carrier reps to secure capacity and discuss your seasonal volume. Tell companies how you measure their capabilities or SLA success. Ask partners how they measure you.

The aim is to open lines of communication and start discussing ways to be mutually beneficial in every deal. When you’re a better partner during non-peak, companies are more likely to give you additional support, capacity, and leeway during peak. As we’ve seen in 2020 and 2021, that can make a world of difference.

4. Secure additional space early

Keeping the peak season focus, it’s time to work on your current capacity. Can you or your 3PL store additional goods? Are you running out of shelf space? What will happen when you scale, up or down?

For 2022, it’s a promising idea to start thinking about scaling up your inventory. We’ve seen slower inbound services and prolonged delays at ports. So, increasing stock on hand helps you avoid stockouts and backorders. Work to secure or build that additional space early on to accommodate this increase in stock. It’ll protect order fulfillment as well as give your overall supply chain more lead time.

5. Create realistic alternatives

Communicating with existing partners around their KPIs and your needs, such as storage, will often identify gaps in coverage. You may realize that some partners can’t meet every demand or that they’re at risk when supply chains struggle.

Protect operations with supply chain optimization practices focused on diversity and alternatives. Bring on additional carriers and regional support to keep goods flowing. Try different warehouses or 3PLs for your sales channels to determine the best fit. Adding partners eliminates many single points of failure, allowing you to keep running when the market becomes complex. This protects customers and partners throughout the supply chain by ensuring operations don’t grind to a halt.

6. Enact a testing plan

Today’s supply chain relies on a considerable number of systems and tools to operate efficiently. So, any changes in these can impact your overall supply chain optimization efforts. Work with your partners and internal IT teams to create a plan for testing changes, tracking implementation, and evaluating results. Set metrics and KPIs for tools as well as new partners.

Whether you’re splitting fulfillment across multiple partners, trying new suppliers, or shifting ERPs, you’ll face significant challenges. A robust change management plan will help your teams stay on track, encourage people to try the new methods, and attempt to make investments lucrative. Give people what they need to grow your supply chain.

7.  Continue to analyze and adapt

Supply chain optimization never truly ends. While the other tips can help you take initial steps or push a project further, you’ll want a team to review operations consistently. Assign analyst roles and tasks to ensure you’re continually reviewing the overall supply chain and any improvements you make. Crunch short- and long-term data to see where you’re succeeding or if new risks emerge. Always keep testing and reviewing to help mitigate the impact of supply chain disruptions that have become increasingly common in the 2020s.

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Jake Rheude is the  Vice President of Marketing for Red Stag Fulfillment, an ecommerce fulfillment warehouse that was born out of ecommerce. He has years of experience in ecommerce and business development. In his free time, Jake enjoys reading about business and sharing his own experience with others.

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Archives, Global Trade Daily, News

China and Uzbekistan Emerge as the Fastest-Growing Persimmon Exporters

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IndexBox has just published a new report: ‘World – Persimmons – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

China and Uzbekistan recorded double-digit growth rates of persimmon export value over the last year. The global exports rose by +18% y-o-y to $695M in 2020. Spain, Azerbaijan, China and Uzbekistan constitute the largest persimmon suppliers worldwide, accounting for 85% of the total export volume. The average persimmon export price spiked by +6.4% y-o-y to $1,091 per tonne in 2020. Russia remains the world’s largest importer of persimmons.

Global Persimmon Exports by Country

In 2020, the volume of persimmons exported worldwide was estimated at 637K tonnes, picking up by 11% from the previous year’s figure. In value terms, persimmon exports soared by +17.7% y-o-y to $695M (IndexBox estimates) in 2020.

In 2020, Spain (211K tonnes), distantly followed by Azerbaijan (126K tonnes), China (108K tonnes) and Uzbekistan (97K tonnes) represented the main exporters of persimmons, together committing 85% of total exports. The following exporters – Lithuania (14K tonnes), Poland (12K tonnes) and Georgia (11K tonnes) – each recorded a 5.7% share of total exports.

In value terms, the largest persimmon supplying countries worldwide were Spain ($234M), China ($206M) and Azerbaijan ($92M), with a combined 77% share of global exports.

In terms of the main exporting countries, China (+62.1% per year) and Uzbekistan (+48% per year) have the highest growth rates of the value of exports.

In 2020, the average persimmon export price amounted to $1,091 per tonne, picking up by +6.4% against the previous year. There were significant differences in the average prices amongst the major exporting countries. In 2020, the country with the highest price was China ($1,909 per tonne), while Uzbekistan ($499 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Lithuania, while the other global leaders experienced more modest paces of growth.

World’s Largest Persimmon Importers

Russia represented the major importer of persimmons globally, with the volume of imports resulting at 149K tonnes, which was approx. 27% of total imports in 2020. Kazakhstan (58K tonnes) occupied the second position in the ranking, followed by Germany (55K tonnes), Ukraine (40K tonnes), Italy (31K tonnes), Thailand (28K tonnes) and France (28K tonnes). All these countries together occupied an approx. 44% share of total imports. Belarus (19K tonnes), Lithuania (16K tonnes), Poland (12K tonnes), Canada (9.3K tonnes) and the UK (8.4K tonnes) held minor shares of total imports.

In value terms, Russia ($120M), Germany ($75M) and France ($37M) were the countries with the highest levels of imports in 2020, together comprising 43% of global imports. These countries were followed by Ukraine, Italy, Kazakhstan, Thailand, Canada, Lithuania, Belarus, Poland and the UK, which together accounted for a further 32%.

Source: IndexBox Platform

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Archives, Global Trade Daily, Software

What Is the Best Field Service Management Software?

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Field service management (FSM) technology is essential for businesses wanting to maximize their team’s productivity. Features like schedulers, dispatching utilities, and user-friendly mobile apps make managing team members in the field easier.

The quality and availability of these features can vary significantly among platforms, however. Here are the most essential FSM software features and a comparison of the top options.

Essential and Cutting-Edge FSM Software Features

Most FSM software will include a few of the same basic features. Industry-leading platforms will almost always offer job scheduling, dispatching, work order management and contact management tools. Typically, these programs will also come with apps that allow workers to access the information they organize remotely or via a smartphone while in the field.

Newer, more sophisticated platforms are also adding in more advanced features that can provide some additional functionality.

1. Route Optimization

Route-planning tools find the most efficient route for a given job, including multistop trips. They help field members move from one location to another while reducing mileage, travel time and gas consumption.

In some systems, real-time data from vehicle GPS will be used to find the best possible routes. Route optimization may also be combined with dispatching optimization to help a business respond to new work orders as quickly as possible.

These tools can help businesses overcome some of the most common route optimization challenges and improve routing efficiency.

2. Intelligent Scheduling

Many managers rely on automatic or simple manual scheduling to assign field workers to jobs. This approach can work, but it’s often extremely inefficient.

Intelligent scheduling leverages algorithms that consider all the workers across an organization, their availability, current location and other information to more effectively assign them to jobs. In the same way route optimization takes advantage of available data to improve routing, these tools get the most out of scheduling workflows.

Most modern service fleets outfit their workers with various diagnostic and repair tools, especially if the business services complex or critical machinery, like construction equipment.

The specific toolkit in a vehicle or with a particular field worker may vary significantly — meaning each worker may not be equipped for every job. Varying skill sets can also make the choice of worker critical. Intelligent scheduling technology can take this into account and only look for workers with the correct tools for a job.

In practice, these features can help companies complete more jobs with the same resources while offering customers faster response times and improved service windows.

3. Open APIs

FSM platforms often include integrations for tools businesses are already using — like Outlook, Quickbooks or even industry-specific software like digital construction tools. These integrations allow the software to share data directly with these tools and integrate the new FSM into existing workflows.

Extensive, open APIs help simplify the learning process for a new FSM. The software integrates with tools companies are already using, reducing the number of new features workers must learn how to use. They also help make an FSM much more scalable.

These extensions may require additional payment or IT investment, but they can extend platforms’ functionality.

What to Consider When Reviewing FSM Options

Not all platforms offer these tools. Managers interested in these features should carefully investigate a potential FSM tool to ensure it provides the functionality they desire.

These are five of the most popular field service software options available.

1. FieldOne

FieldOne is an FSM tool designed for large and enterprise-level businesses that offer field service. Available features include automated routing and workflow automation. The software works across several platforms.

Native apps for iOS, Android, and Windows phones and tablets are available, and because the tool is cloud-based, workers using these apps can access the FSM software from just about anywhere.

The software is built with the Microsoft Dynamic Platform, enabling easy integration with tools that can extend the base software’s functionality.

Pricing for the software can vary. The FieldOne developers offer a free trial, meaning businesses can experiment with the software without committing to a subscription.

2. Jobber

Jobber is an FSM platform built to help home service businesses coordinate their field team and stay on top of work orders.

The software includes a client manager and hub that allows business customers to approve quotes, check appointment details, pay invoices and request work orders. The tool also provides scheduling and quoting features and a one-on-one support system for when users need help troubleshooting.

Various pricing plans for Jobber exist, starting at as slow as $35 per month for a single user. The most expensive “Grow” plan costs $196 per month and supports up to 30 users. Costlier plans offer additional features, and some functionality — like GPS tracking — isn’t available with the cheapest “Core” plan.

Jobber offers a free trial, allowing interested businesses to test the software before investing in a subscription.

3. FieldEdge

FieldEdge is built for contractors, particularly providers of HVAC, plumbing and electrical services. The program supports a wide range of company sizes, from individual freelancers up to enterprise-level businesses.

Software features include inventory and workflow management, an activity dashboard, reporting and mobile access. The program supports web, Android and iPhone access.

FieldEdge also offers a client portal that allows customers to review information related to work orders, invoices and other essential information. The software provides seamless integration with QuickBooks, which can help to simplify business record-keeping.

Pricing for FieldEdge is determined individually for a company and customized based on the business’s needs. An available 14-day free trial gives companies a chance to experiment with the software.

Find the Right FSM Software

Choosing the right FSM can help any business streamline operations and deliver better service to customers faster. These three FSM tools are some of the most popular picks.

The best FSM software for a business will depend on that company’s needs. Looking for key features like route optimization, client portals and APIs will help managers determine if a particular software will simplify their business’s workflows.

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Emily Newton is an industrial journalist. As Editor-in-Chief of Revolutionized, she regularly covers how technology is changing the industry.

warehouse
Archives, Global Trade Daily, Native Content, Warehousing

New Certificate Prepares In-Demand Warehouse Talent

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It’s no wonder that positions on the frontlines of e-commerce are the number-one job on the rise right now. According to a LinkedIn jobs report, hiring for these roles has grown 73% year-over-year, and demand continues with more than 400,000 current openings. Plus, projections show that there will be as many as 600,000 more spots to be filled by 2029.

Warehouse clerks, material handlers, assemblers, forklift and machine operators, pickers, packers, truck drivers, and so many other warehousing professionals are the backbone of supply chains around the world. They ensure that products are connected with the people who need them. And amid skyrocketing e-commerce rates, these talented professionals are needed now more than ever before.

Walmart recently signaled its long-term investment in the field by putting out a call for permanent full-time and part-time order pickers, freight handlers, forklift operators, technicians and managers at more than 250 Walmart and Sam’s Club transportation offices and distribution centers. While in years past the company hired thousands of seasonal workers to support e-commerce operations, the current focus on permanent positions showcases the growing importance of expert distribution and delivery.

This demand for warehouse workers is consistent around the world too. Flipkart opened four new warehouses in India last month, creating 12,000 new job opportunities. In England, Europa Warehouse is having trouble finding the staff it needs to support its new high-tech facility. And nearly 80% of warehouse occupiers in the Asia-Pacific region plan to expand their real estate footprints within the next three years.

Become a warehousing employer of choice

Warehousing employers are well aware that competition for talent is fierce — and they’re rising to the challenge. Today’s warehouse jobs offer many perks, including a variety of shift options; flexible schedules; an average pay of $20.37 an hour; a diverse workforce; and opportunities to use high-tech equipment, such as automated storage and retrieval systems, automated guided vehicles, robots and more. Also, because of the supply-demand imbalance for workers, employers are offering hiring bonuses, wage hikes and tuition reimbursement. As a result of the “Great Resignation,” potential workers are looking for more than pay and benefits. They want to feel valued and have opportunities for career growth.

Perhaps the best way to show employees that they are valued — and worth investing in — is through education and upskilling. To that end, ASCM has launched a warehousing certificate program developed in partnership Prologis Inc., the global leader in logistics real estate, to prepare workers to fulfill the record number of warehousing jobs available now and in the future. The Supply Chain Warehousing Certificate program provides individuals with an extensive overview of warehousing, distribution, inventory management, product storage, packaging and shipment, sustainability and more.

This first-of-its-kind program includes a real-world curriculum with input from industry leaders. The 20-hour, self-paced, online course offers an extensive overview of warehousing, distribution, inventory management, product storage, packaging and shipment, sustainability, and more. The program is open to anyone, and ASCM can organize a tailored approach for groups of employees to support a corporation’s needs.

After passing the comprehensive final exam, participants will receive a printable certificate along with a digital badge issued by ASCM that can be displayed on their social media profiles. Earning this certificate shows employers that this individual has the knowledge and capability to effectively problem-solve and identify opportunities, handle shipping documents and tracking methods, improve order accuracy and efficiency, use inventory management systems, manage holding costs, make effective decisions about transportation carriers, understand KPIs, follow environmentally sustainable work practices, and Apply different performance metrics to measure the success of a facility in the warehousing and distribution industry.

Although the program is primarily designed for entry- and mid-level warehousing workers, it also provides critical knowledge for those already working in sourcing, purchasing, supplier relationship management and contract management. By earning the certificate, these team members can gain a better understanding of roles and cross-functional operations. Plus, when leaders are more attuned to warehousing best practices, they can guide their supply chain organizations to success.

cigarette
Archives, Global Trade Daily, News

Poland’s Cigarette Exports Skyrocket to Record $4B

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IndexBox has just published a new report: ‘Poland – Cigarettes – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

Poland is the world’s largest supplier of cigarettes, accounting for 18% of global exports. In 2020, Poland’s cigarette supplies jumped by +14% y-o-y to $4B, reaching the highest level ever. In physical terms, Poland increased cigarette exports twofold in the past decade. In value terms, supplies abroad soared threefold since 2010. Germany remains the largest importer of cigarettes from Poland. German purchases spiked from $0.9B in 2019 to 1.4B in 2020. The average cigarette export price grew by +3.5% y-o-y to $20,824 per tonne in 2020. 

Poland’s Cigarette Exports by Country

Poland remains the world’s largest supplier of cigarettes, accounting for 18% of global export volume. Cigarette exports from Poland amounted to 192K tonnes in 2020, rising by +10% against 2019. In value terms, cigarette exports expanded by +14.3% y-o-y to $4B (IndexBox estimates) in 2020.

Germany (55K tonnes) was the main destination for cigarette exports from Poland, with a 29% share of total exports. Moreover, cigarette exports to Germany exceeded the volume sent to the second major destination, the UK (20K tonnes), threefold. The Netherlands occupied the third position in this ranking (17K tonnes), with a 9% share.

In value terms, Germany ($1.4B) remains the key foreign market for cigarette exports from Poland, comprising 34% of total exports. The second position in the ranking was occupied by Italy ($395M), with a 9.9% share of total exports. It was followed by the Netherlands, with an 8.6% share.

In 2020, the average annual growth rate in terms of value supplied to Germany stood at +46.2%. Exports to the other major destinations recorded the following average annual growth rates: Italy (-3.1% per year) and the Netherlands (-26.8% per year).

The average cigarette export price stood at $20,824 per tonne in 2020, picking up by +3.5% against the previous year. There were significant differences in the average prices for the major overseas markets. In 2020, the country with the highest price was Belgium ($34,439 per tonne), while the average price for exports to France ($11,472 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to Saudi Arabia, while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Platform

DOT inspections
Archives, Global Logistics, Global Trade Daily, Trucking

What Fleet Managers Should Know About DOT Inspections

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Operating a trucking company typically means covering a lot of variables, from vehicle depreciation and traffic jams to driver sick days, broken-down equipment, conflicts with business partners and everything in between.

One thing fleet managers definitely cannot afford to overlook in this list of responsibilities is the importance of DOT inspections. What do fleet managers need to know about DOT inspections, and how can they prepare for the next one before it arrives?

What Are DOT Inspections?

First, what are DOT inspections, and why are they so important?

State troopers or other enforcers, working under the authority of the Federal Motor Carrier Safety Administration (FMCSA) carry out surprise roadside inspections to ensure both truck and driver are in good working order.

The goal of these inspections is to keep truckers and other motor vehicle operators safe on the road. An inspector is tasked with determining whether a truck and its driver are following all of the applicable rules and regulations designed to prevent oversights and accidents.

The Six Levels of DOT Inspection

There are six levels of DOT inspection a truck and its operator may be subject to. Which one is carried out depends largely on the whims of the inspector. Drivers will never know what level of inspection to expect until they’re stopped, so it’s essential to be familiar with all six.

Level 1

Level 1 inspections are as comprehensive as they are commonly performed. There are 37 steps to complete for a Level 1 inspection, assessing both the driver and the vehicle as well as addressing the presence of any illegal cargo.

All of the truck’s systems will be inspected, from the brakes and electrical to the steering, seatbelts, and everything in between. The driver will also be assessed to determine whether they’re under the influence of drugs or alcohol.

Level 2

Level 2 inspections are nearly as thorough as Level 1, though inspectors are not required to go underneath the vehicle to ascertain its condition. The driver assessment to look for the presence of drugs and alcohol remains the same, however.

Level 3

Level 3 DOT inspections focus solely on the driver. The inspector will review all pertinent paperwork, such as driver’s license, medical examiner’s certificates, and skill performance evaluations, to determine whether the driver is in compliance with all applicable FMCSA regulations.

As with the first two levels, the driver will also be assessed to determine if they are under the influence of alcohol or another controlled substance.

Level 4

Level 4 inspections are not as common as some of the others, since they’re used for one-time examinations. They’re useful for tracking violation trends or other data, and they often don’t take up a lot of time for either the driver or the inspector.

Level 5

Level 5 inspections are the same as Level 1 inspections with one major caveat: the truck is the only thing being inspected. The driver does not even have to be present for this level of inspection, which frees them up to perform other tasks while their vehicle is being inspected.

Level 6

Level 6 inspections are only necessary for vehicles tasked with hauling radioactive materials. The Enhanced NAS Inspection for Radioactive Shipments is the same as the standard Level 1 inspection, but it pays special attention to any radiological emissions.

Once the truck and driver have passed inspection, the truck is marked with a clearly visible nuclear symbol that is removed once the delivery reaches its destination.

Preparing Vehicles for a DOT Inspection

Getting ready for a DOT inspection is a two-fold proposition: it involves preparing both the vehicle and the driver. First, let’s take a closer look at getting fleet vehicles ready for inspections.

By far the easiest way to pass a DOT inspection is to be prepared. This can entail but is not limited to keeping the vehicle in tip-top shape, keeping it clean, and ensuring all required and recommended maintenance is carried out in a timely manner. Understand the systems that will be inspected and address any problems promptly.

Fleet managers may wish to seek out a DOT Inspection Certification as well. While this will not prevent an inspection from occurring if there is an obvious violation to address, it can help streamline the process a little bit in some situations.

Keeping the vehicle clean may not be a requirement for DOT inspections, but it can ensure the inspector is focusing on the details of the inspection rather than becoming vexed because of the state of the truck.

Preparing Drivers for a DOT Inspection

Drivers are the other part of the equation when it comes to successfully preparing for a DOT inspection.

Driver inspections tend to require a lot of paperwork. Inspectors will go over everything from the driver’s commercial licensing, to their medical card, waivers, daily logs, and hours of service. They will also assess the drivers to see if they are under the influence of drugs or alcohol, and will verify any HAZMAT requirements.

Start by ensuring all of the driver’s paperwork is up to date. Then keep a copy of all the necessary paperwork in a folder in the cab — as well as backups located elsewhere in case something happens to the originals. A lot of this information, such as the daily logs and hours of service, can sometimes be accessed digitally, depending on how the fleet is set up. Fleets that haven’t switched to digital data collection for hours of service and daily logs may wish to consider doing so to speed up the inspection process.

Make sure your drivers are always polite and professional when dealing with inspectors. It’s always a good idea to treat these individuals with professional courtesy, even and perhaps especially if they’re flagging a violation.

Don’t Fail an Inspection by Lacking Preparation

DOT inspections might be a hassle, but they are an unavoidable part of operating a trucking fleet. The easiest way to fail one of these inspections is to go into them entirely unprepared. As long as the fleet is operating properly, all violations are addressed as quickly as possible, and drivers and fleet managers are working to keep themselves and other drivers safe, then passing these inspections with flying colors should be easy.

They say that failing to plan is planning to fail, and that is a rule to live by when it comes to preparing for DOT inspections.