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AUTOMATE TO SLASH TARIFF MISCLASSIFICATIONS, PENALTIES AND DELAYS

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Archives, Global Trade Daily, Imports/Exports

AUTOMATE TO SLASH TARIFF MISCLASSIFICATIONS, PENALTIES AND DELAYS

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A Fortune 500 chemicals company experienced surges in its tariff classification requests and predicted future volume would be even greater. Without support, the risk of misclassifying items was extremely high. Procuring an automated global trade system helped alleviate the strain on resources and mitigate the risk of delays and penalties. It also allowed the company to cut outsourced services, which yielded meaningful P&L savings and helped the organization manage its growth projections efficiently.

It is a timely case study as enterprises that engage in international trade continue to experience increases in tariff classification requests as their import and export shipments surge. With global merchandise volume forecast to grow 7.5% this year and 4.1% in 20221, organizations still using manual processes for product classifications — researching and applying HTS codes — may be misclassifying a variety of their products, including anything from direct materials to back-office supplies.

Misclassifications not only cost organizations shipping delays — sometimes from two to 14 days — increasing the likelihood of an audit, but they also lead to steep penalties. In fact, some companies have had more than 80% of their classifications incorrect for products and have incurred U.S. Customs and Border Protection fines of up to four times the lawful duties, taxes and fees.2

However, there is an overlooked solution. Today’s global trade management systems come equipped with automation and machine learning capabilities to streamline classification requests. They cut classification errors and the cycle time, improve a team’s productivity, and help prevent fines and border delays.

Here are the keys to success for organizations using trade systems to overhaul their tariff classification process:

1. Automate the consistent, repetitive classification requests that take up more than 60% of a resource’s time. Organizations can immediately alleviate the workload for classifiers by leveraging automation and machine learning for repetitive product classifications that have slight deviations. Those items can take hours of a resource’s time, leaving little to no bandwidth for other categories that may require more research. As the system learns more about the minor deviations in product types, it can provide accuracy of close to > 95%. Taking manual processes out of the equation helps guarantee supply assurance to an organization’s customer base while mitigating penalties from errors.

2. Eliminate third parties or outsourced contracts involved in classification overflow assistance. Implementing automation for tariff classifications allows an organization to remove outside brokerage services, equating to an immediate P&L savings impact. Some organizations have seen upwards of 10% savings captured by eliminating these obligations. That, in turn, helps positively impact the overall trade governance budget. Not only are the short-term effects instant, but for the long-term, global trade systems can help identify discounts for various classification codes based on trade agreements between importing and exporting countries. These discounts usually go overlooked by internal resources because of how busy they are with other tasks.

3. Use machine learning to help realize a cycle-time reduction for classification requests. Enterprises should leverage global trade services to automate customs rulings updates, ensuring compliance is current for all import/export nations. That leads to a reduction in the time spent by internal resources on researching the data each time a regulatory change occurs. Also, organizations should integrate databases with their global trade management systems to classify past and new unique classifications. Machine learning can leverage past classification mistakes for the future, but for new items, linking information flows from databases can help automate requests as they appear for the first time.

Organizations experiencing growth in their imports and exports must pay attention to global trade systems with automation and machine learning now more than ever to ensure business continuity and future scalability. While digitizing classification processes results in crucial P&L and cost savings, it’s also critical to mitigating the risk of future border delays and steep fines.

___________________________________________________________________

Alex Hayes is a consulting manager at GEP, a leading provider of procurement and supply chain solutions to Fortune 500 companies.

1. https://ihsmarkit.com/research-analysis/global-trade-outlook-for-2021.html#:~:text=We%20forecast%20the%20volume%20of,2021%20and%204.1%25%20in%202022

2. https://www.govinfo.gov/content/pkg/USCODE-2011-title19/pdf/USCODE-2011-title19-chap4-subtitleIII-partV-sec1592.pdf

furniture
Archives, Global Trade Daily, News

Vietnam Drives Out China from the American Wooden Kitchen Furniture Market

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IndexBox has just published a new report: ‘U.S. – Wooden Furniture Of A Kind Used In The Kitchen – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

In 2020, American imports of wooden furniture for kitchens soared by +22% y-o-y to 52M units or $1.9B in value terms. Supplies from Vietnam and Malaysia offset the dramatic drop in imports from China after the tariffs on Chinese products increased. Among other countries, Indonesia, Taiwan, Thailand and Mexico saw the highest spikes in wooden kitchen furniture exports to the U.S. The average wooden kitchen furniture import price dropped by -18.1% against the previous year. 

American Imports of Wooden Kitchen Furniture by Country

In 2020, the amount of wooden furniture for kitchens imported into the U.S. surged to 52M units, increasing by 22% compared with 2019. In value terms, wooden kitchen furniture imports totaled $1.9B in 2020 (IndexBox estimates).

In 2020, Vietnam drove out China from the leading position in the American imports and became the largest exporter of wood kitchen furniture to the U.S. Over the last year, the supplies from Vietnam rose from $224M to $487M. Malaysia occupied second place in the list of top suppliers to America, boosting its exports to the U.S. from $148M in 2019 to $415M in 2020. Indonesia recorded the highest spike in kitchen furniture exports to the U.S. In 2020, Indonesia ramped up the supplies from $13M to $103M. Among other countries, Taiwan, Thailand and Mexico featured the most prominent export growths of kitchen furniture to the U.S. The purchases from China fall dramatically from $831M to $132M owing to raising tariffs on Chinese imports.

Vietnam (16M units), Malaysia (11M units) and Canada (6.1M units) were the main suppliers of wooden kitchen furniture imports to the U.S., with a combined 64% share of total imports. China, Indonesia, Mexico, Italy, Taiwan and Thailand lagged somewhat behind, together comprising a further 27%.

In value terms, the largest wooden kitchen furniture suppliers to the U.S. were Vietnam ($487M), Malaysia ($415M) and Canada ($301M), together comprising 62% of total imports. China, Italy, Indonesia, Mexico, Thailand and Taiwan lagged somewhat behind, together comprising a further 28%.

The average wooden kitchen furniture import price stood at $37 per unit in 2020, with a decrease of -18.1% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Italy, while the price for Taiwan was amongst the lowest.

Source: IndexBox Platform

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

How to Lead When the Industry is Volatile

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In 2011, Prince William was marrying Kate, investors’ eyes were on Greek Prime Minister George Papandreou, and global trade experts were predicting a volatile 2012.

A decade later, Prince Harry just welcomed his first child with Meghan, Greece is still in the EU, and global trade experts are predicting a volatile 2022. 

As the saying goes, don’t wait for the storm to pass — just learn to dance in the rain. For the global trade industry, this translates into: get used to the volatility.

To build a truly sustainable supply chain in an era where the only stable prediction is instability, company leadership must embrace flexibility. Creating an agile organizational structure that’s ready to adapt at the drop of a hat (or the obstruction of a barge) ought to be considered a critical task for any workforce in the industry. Because — and this is the last quote I’ll reference, I promise — as General Electric’s Chief Innovation Officer Sue Siegel said in a 2018 keynote address, “The pace of change will never be as slow as it is today.”

The experts, however, got the cause of the volatility wrong back in 2011 — they thought it would be inflation. Who would have predicted the COVID-19 pandemic, or the Suez Canal disaster? 

Company leaders who pay attention to the growing data on worker productivity and how they rate their satisfaction on their work/life balance will continue to embrace work-from-home culture (now referred to as WFH by those in the know), instead of dismissing it as a temporarily allowable measure during the pandemic.

Within my own company, until last year we enforced a strict policy of keeping computers at the office — we’d decided the risk of damage during transit and at home was just too great. The pandemic forced us to reverse that policy in an instant, on a Thursday in March, without time to prepare. But we haven’t had to replace any equipment yet; it turns out adults can be trusted to take care of their valuables — and to roll with the punches. When I reflect on the resiliency our employees have demonstrated over the past year, I’m amazed.

In fact, I think the first subheading in the economy section of the 2020 history books will be “WFH.” Employees appreciate the flexibility, and those who benefit from mental and physical health-related workplace accommodations are thriving under the ability to create their own schedule and work environment. 

Meanwhile, COOs are shaking their heads wondering why we’ve been paying for all this office real estate over the years.

Leadership coaches have long preached that innovation is prevented when you’re comfortable with structure, and 2020 forced every member of the team to learn this lesson head-on.

Another takeaway for company leadership that the talking heads have been leaving out of their morning segments is that providing total visibility to clients and customers is the first way to ensure viability during a disaster. Yes, you may get an earful at the time when delivering bad news — but they’ll appreciate it in the long run (and trust you more for it) because a sugar-coated status report doesn’t allow managers to make the best decisions possible for their projects. 

Time for one more?

Those whose leadership style leans toward positivity were more likely to see their staff weather the 2020 storm. In a crisis, employees want to grab onto hope — it’s your duty to serve as their cheerleader. At the same time, make sure you have an outlet to vent that frustration away from work, lest you compress yourself into a powder keg that creates an entirely different problem down the line. 

________________________________________________________________

Richard J. Bolte, Jr. was born in Philadelphia in 1957 and joined BDP International in 1973. Throughout his 47-year career with the company, he has held positions covering a broad range of the firm’s operations in global logistics and transportation. His formative experience at BDP centered on ocean exports and supply chain management, with particular emphasis on company operations. Rich was Vice President of the company’s Northeast Region before taking the position of Chief Operating Officer. In 1996 he was named President of BDP International.
 

In 2006, Rich Bolte was named BDP’s Chief Executive Officer; and subsequently, in 2013 the Board of Directors appointed Rich as BDP’s Chairman & CEO. He now serves as the organization’s Chairman to the Board. Rich championed BDP’s global expansion, and the company now employs nearly 5,000 employees in 135 offices throughout nearly 40 countries. He can be reached at rich.bolte@bdpint.com.

fitness
Archives, EU Trade, Global Trade Daily

Fitness Equipment Imports in the EU Grow Despite the Pandemic

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

A spike in the fitness equipment imports in the EU has been recorded during the pandemic year, driven by growing demand from retail consumers while fitness clubs’ activity was limited. In 2020, the import value rose by +9.6% y-o-y to $3.4B. Germany, France and the Netherlands remain the largest importers of gym and fitness equipment in the EU.

Gym and Fitness Equipment Imports in the EU

In 2020, the amount of gym and fitness equipment imported in the EU surged to 762K tonnes, picking up by 25% against the previous year’s figure. In value terms, gym and fitness equipment imports totaled $3.4B (IndexBox estimates), rising by +9.6% y-o-y in 2020. While the demand from fitness clubs was limited due to lockdowns, it was offset by soaring retail sales of equipment for home use.

The largest gym and fitness equipment importing markets in the EU were Germany ($659M), the Netherlands ($496M) and France ($467M), with a combined 47% share of total imports. These countries were followed by Spain, Poland, Italy, Sweden, Austria, Denmark, Finland, Belgium, the Czech Republic and Hungary, which together accounted for a further 44%.

In 2020, the gym and fitness equipment import price in the EU amounted to $4,493 per tonne, reducing by -12.2% against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was Austria ($8,510 per tonne), while the Czech Republic ($3,554 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Denmark, while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

chemical
Archives, Global Trade Daily, Imports/Exports, News

China Boosts Imports of Chemical Wood Pulp to Meet Growing Demand for Paper Packaging

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

In 2020, China increased its chemical wood pulp imports by +10% y-o-y to 24M tonnes. It was driven by rising demand for paper packaging and tableware amid the pandemic and further stimulated by a sharp fall in import prices last year. Brazil, Indonesia and Canada are the major suppliers, providing 57% of the total import volume. Bleached sulphate pulp accounted for 95% of total wood pulp imports into China. 

Chemical Wood Pulp Imports into China by Country

Chemical wood pulp imports into China amounted to 24M tonnes in 2020, growing by +10% against the previous year’s figure.  A sharp fall in pulp prices last year also encouraged importers to increase purchases. In value terms, chemical wood pulp imports fell by -9.5% to $12B in 2020 (IndexBox estimates).

In 2020, Brazil (7.2M tonnes) constituted the largest chemical wood pulp supplier to China, with a 30% share of total imports. Moreover, chemical wood pulp imports from Brazil exceeded the figures recorded by the second-largest supplier, Indonesia (3.5M tonnes), twofold. The third position in this ranking was occupied by Canada (2.9M tonnes), with a 12% share.

In 2020, the highest increases in terms of chemical wood pulp volume supplied to China were registered in Indonesia (+25.2% y-o-y), Brazil totalled (+14.6% y-o-y) and Russia (+10.2% y-o-y). By contrast, Canada reduced its export volume to China by -3.6% y-o-y.

In value terms, Brazil ($3.3B) constituted the largest supplier of chemical wood pulp to China, comprising 28% of total imports. The second position in the ranking was occupied by Canada ($1.6B), with a 14% share of total imports. It was followed by Indonesia, with a 13% share.

The average chemical wood pulp import price stood at $507 per tonne in 2020, falling by -17.8% against the previous year. A drop in demand for chemical wood pulp from printing and writing paper mills became the main reason for the price reduction.

Average prices varied somewhat amongst the major supplying countries. In 2020, the countries with the highest prices were the U.S. ($582 per tonne) and Canada ($569 per tonne), while the prices for the product from Indonesia ($448 per tonne) and Brazil ($467 per tonne) were amongst the lowest.

Chemical Wood Pulp Imports by Type

In 2020, bleached sulphate pulp (23M tonnes) was the main type of chemical wood pulp supplied to China, with a 95% share of total imports. Moreover, bleached sulphate pulp exceeded the figures recorded for the second-largest type, unbleached sulphate pulp (1.1M tonnes), more than tenfold.

In value terms, bleached sulphate pulp ($11.4B) constituted the largest type of chemical wood pulp supplied to China, comprising 95% of total imports. The second position in the ranking was occupied by unbleached sulphate pulp ($560M), with a 4.7% share of total imports.

Source: IndexBox Platform

lead times CMA
Archives, Global Logistics, Global Shippers 101, Global Trade Daily

7 Ways to Reduce Supply Chain Lead Times

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No one enjoys waiting forever for their items to arrive. However, this is not simply an issue of annoyance for companies and stores which rely on their inventory to turn a profit. So, how can you beat this problem, reduce the time it takes for your inventory to arrive, and be free to engage your customers without worries? To answer this question, we have compiled a guide. We offer you 7 ways to reduce supply chain lead times for your perusal.

1. Use local suppliers

One of the principal causes of long supply chain lead times is the sheer distance your merchandise needs to travel. So, to combat this issue, one of the simplest ways is to find local suppliers who can provide you with what you need. Now, it is only natural that companies look for the best balance between quality and cost. But you must take into account the cost of transporting your merchandise over long distances. Even cheap maritime shipping has drawbacks, so don’t be afraid to buy slightly more expensive local products.

2. Have backup suppliers available

It is all well and good to trust and rely on suppliers you have worked with for years. However, it is helpful to know who could replace missing shipments if your regular suppliers are facing some issues. Take the chance when you do not need to find a replacement in a hurry to plan ahead and maybe even draft contracts ensuring that you can count on them when you need to. This way, your business will always have something to fall back on. You do not want to face a situation where you cannot follow through with already placed orders and leave your customers waiting for weeks.

3. Always have extra inventory

It might seem like a risk to have more merchandise than you think you will need. Your product might not sell and end up just sitting in some warehouse. However, we must consider the alternative: If you are facing any issue with your chain of supply, you could be looking at considerably increased chain lead times. In such a case, you would actually be losing money. Of course, we are not saying you should stock up on absolutely everything. Taking on an extra amount of unpopular articles is just asking for trouble. Analyze the current trends and check which of your merchandise is currently popular.

4. Communicate with your suppliers

This one is simple. If there are any problems with your suppliers, you want to know immediately. Some suppliers might not take the initiative to inform you if there is an issue on their end. This could lead to sudden increases in supply chain lead times for no apparent reason. To combat this, always make sure to stay in touch with your suppliers. Prompt them to inform you of accidents. Check in advance if they can handle an increase in demand, and always let them know if you anticipate a decrease in the demand for their product. This way, you can encourage friendly cooperation and ensure you are kept informed of any sudden developments.

5. Hire a good logistics manager

No one can do everything by themselves, and good employees are always valuable. That is why you should try your best to find and hire a logistics manager who excels at their job. They can help you smooth out wrinkles such as delivery routes, the best places for your warehouses, and streamline contact with suppliers. They might even be able to help you cut down on unnecessary expenses. These things will directly be reflected in the efficiency of your company’s work as a whole, thereby reducing chain lead times and allowing you to turn a better profit.

6. Anticipate customer demand

You might not feel confident enough to make predictions about future customer demand. This is quite normal. So, you will need to hire a professional to analyze the consumer data you have access to. This way, you can preemptively place certain orders so that, even if you do face unavoidable delays, you can stay ahead and be ready to offer your merchandise on the market. You might hesitate when faced with the additional expenses of hiring a good analyst, but if things work out, you stand to increase your profits considerably. Staying ahead of the market and leading trends is always profitable.

7. Change your shipping methods

If you notice consistent problems with your supply chain lead times, yet can’t find any issues with your suppliers, then you should consider looking into the shipping methods you are currently using. Favoring slower but cheaper methods when starting out is okay. However, once your business expands and there is more interest in your product, you might find such a system flagging. So, consider switching to a more modern solution. This can also help increase the safety of your shipments. Alternatively, you can try to place your orders more frequently in smaller batches instead of delaying them to order in bulk.

Conclusion

This marks the end of our guide on 7 ways to reduce supply chain lead times. We hope you have found it helpful and informative. Just remember: always have alternatives for your suppliers, communicate with them properly, look to the future to anticipate customer demands, and do not hesitate to modernize your shipping methods.

________________________________________________________________

John Davis has worked for Heart Moving, NYC for the last five years, and has extensive knowledge of moving and transporting goods. He also works as a freelance blogger, and loves sharing his knowledge on the subjects he is familiar with. He always feels inspired by the thought that his advice can help someone else.

leadership
Archives, Global Logistics, Global Trade Daily, Global Trader Lists

TOP 10 WOMEN IN LOGISTICS 2021: MEET THE NATURAL BORN LEADERS WHO ARE REDEFINING THE INDUSTRY

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It is hard to believe that it’s been an entire year since our previous annual Women in Logistics spotlight. As the industry continues to break boundaries in resiliency and innovation, what better way to honor the leading ladies behind the companies that not only made it through the pandemic but who continue to grow and redefine greatness in operations, company culture, and transformation? 

Here are our top 10 picks for this year’s Women in Logistics and why they made our special list:

1. Sandra McQuain
Executive Director
England Economic & Industrial Development District 

Topping the list is the first female leader in England Economic & Industrial Development District’s 25-year history. Sandra, who first joined the “England Airpark” in 2018, is also the only female to manage one of the seven commercial airports in the state of Louisiana.

England Airpark is a 3,600-acre economic and industrial development district serving as a home to a Part 139 Commercial Airport (AEX), a staging base for military training and transfer operations, manufacturing, and warehouse facilities, and more. 

Sandra’s primary focus is to provide critical strategic, financial and operational leadership that is driven by more than 25 years of experience working with businesses, government agencies and elected officials. 

Beyond England Airpark, Sandra was appointed by Louisiana’s Governor John Bel Edwards and Secretary of Transportation and Development Shawn Wilson to serve as a member of the Resilient Louisiana Commission’s Transportation and Infrastructure Task Force. She also serves on the Transportation Policy Committee and Beltway Committee for the Rapides (Parish) Area Planning Commission and is also a Board Member of Fort Polk Progress. 

Additionally, Sandra works closely with the MORE Initiative of the Association for the Improvement of America’s Infrastructure (AIAI), which recruits women for the transportation and logistics industries.

2. Deidre “Dee” Cusack
Senior Vice President of Global Products and Solutions
Dematic

According to her colleagues, Dee is a prime example of a natural-born leader who challenges her team of more than 1,200 to think differently and push boundaries for greatness. 

Dee currently serves as the Senior Vice President of Global Products and Solutions at Dematic, a STEM-focused company that has undergone significant growth and transformation thanks to her leadership and strategic commitment to innovation. 

She was appointed top her SVP role mid-pandemic, and yet her company successfully released 18 new products in strategic areas, increased Build with Standards orders by more than $300 million and generated more than 200 new patents.

As if this was not enough, Dee holds recognition for the following awards:

– CEO Award for International Trade, given by Joe Hogan, the former CEO at ABB 

– 7-time winner of the Customer Focus Award, granted by Roger Bailey, President of Power Products at ABB 

– CEO Award for Collaboration, given by Hasan Dandashly, CEO at Dematic 

Speaking of awards, Dee was awarded the largest customer purchase order in history at Ametek Aerospace and five U.S. and international patents.

 

3. Alexi Cashen
Co-Founder and CEO
Elenteny Imports 

Alexi is known for seeking out leadership rather than waiting for it to find her. This approach has served her well throughout her career as an entrepreneur, even amid the 2010 financial crisis. 

It was after Alexi moved to New York City from a small town in Colorado that she partnered with Tim Elenteny and co-founded Elenteny Imports, an alcohol logistics company. Since its launch, Elenteny represents more than 1 million cases annually and works with over 400 global clients while supporting alcohol brands as they navigate the U.S. three-tier system.

It would only make sense that given her history in thriving during a crisis that she would expand her professional horizons in 2020. Elenteny launched their Less than Container Load (LCL) route into Seattle during the global pandemic. 

Furthermore, Alexi started a mentoring-focused podcast just for entrepreneurs in the sparkling spiked beverage industry in 2020 as well.

4. Hima Bindu Challa
Co-founder
limbiq

Hima was born and raised in India, where she completed her Master’s in Computer Applications and began her career. Fast forward to 2009 and she officially pivoted her career focus to the logistics and supply chain industry in the United States, where she would remain for the next 10 years. 

Hima then moved to Germany, where she co-founded limbiq with the sole intention of providing a simple and complete solution to supply chain partners. 

She and her team focused on SMEs as their first target group.  

“We felt that SMEs are the ones with the biggest problems in collaborating with different partners because of their size,” she explains. “We eventually learned that irrespective of size, it’s a problem everywhere.” 

5. Gerri Commodore
Senior Vice President of New Business Implementation
GEODIS Americas

Gerri’s success goes well beyond the numbers and global impact of GEODIS, which ranks among the top supply chain operators in Europe and the world. Her accomplishments have been achieved during more than 20 years in the industry, from operations management, inventory and omnichannel fulfillment strategies to warehouse management systems and supply chain optimization. 

Her current role supports the successful integration of new clients for the company’s North Americans and South American networks–critical to ensuring operations are launched in a timely manner and within budget, according to client goals. 

She is the driving force behind GEODIS’ Women’s Network–focusing on recruiting, retaining and growing female professionals while continuing to improve the industry’s gender balance. Since becoming the network’s chairperson, membership has grown by more than 500 percent—pandemic and all.

Additionally, Gerri was part of the team that was responsible for growing GEODIS’ worldwide female leadership roles from 13% in 2017 to 18% and has pledged to reach 25% by 2023.

6. Darlene Wolf
Senior Vice President, Strategic Partners
Arrive Logistics 

Darlene focuses on utilizing her expertise and experience to support partners from managing network relationships to navigating business challenges with shippers at the top of mind. 

Part of what makes Darlene’s role so impactful is the level of accountability she holds for herself and for her team. Whatever a shipper needs, her team is standing by to deliver successful and smooth operations. 

“I’m so honored to be spotlighted as a distinguished woman in the logistics industry,” Darlene says. “When our industry faces disruptions or challenges, I pride myself on being a leader who consistently promotes innovative solutions.”

7. Cheryl Emery
Director of Field Resources
Penske Logistics 

Cheryl brings more than 30 years of experience to the logistics sector. Prior to her role as an HR director for the company, she took charge as an operator for the business. 

Her time as an operator further supports her current role in talent management, performance, recruiting and retention. 

Cheryl’s skills as an HR business partner goes beyond supporting the growth of Penske’s business as she is now designing policies and procedures focused on operator needs. In doing this, operator needs are clearly outlined so workers know exactly what it takes for policy implementation while meeting the needs of the business. 

8. Yamini Vellore
Chief Information Officer
Blume Global

Yamini’s 30-year career started off strong with Manhattan Associates, where she focused on developing solutions as the VP of Global Research and Development. Fast forward to 2010, and she joined the Hewlett-Packard team in developing and maintaining global IT architecture. 

She did not stop there as she continues breaking barriers for females in the logistics and technology sectors as CIO at Blume Global, where her primary focus is on infrastructure architecture and DevOps.

Yamini strives to ensure Blume’s solutions are available 24x7x365 to a global customer base. Her leadership role redefines standards in diverse hiring practices. 

Blume’s use of Google Cloud Platform services and customer transition heavily rely on expertise that Yamini’s colleagues have cited as “instrumental” to the company’s architecture. 

9. Elise Le
Head of Customer Experience
ClearMetal 

For ClearMetal’s Fortune 1000 customer base, complex supply chains are a given. When it comes to making sure customers have the best experience regardless of their supply chain complexities, ClearMetal calls on Elise.

Known as a distinguished professional in the logistics field, Elisa is cited by colleagues as possessing exceptional skills, high credibility and ongoing persistence in maintaining customer expectations–something that she seems to accomplish with ease.

“Her work distinguishes her in logistics not only as a woman but as an individual,” says one ClearMetal colleague.

The increase in efficiency, growth, and success for ClearMetal is the overarching theme for initiatives spearheaded by Elise and include Repeatable & Scalable Engine, Value Framework, Deployment Efficiency, Upsell Ratio and Revenue, and Employee Development Process. 

10. Elizabeth Kauchak
Chief Operating Officer
Dermody Properties

Elizabeth has been involved in industrial real estate for more than 20 years. During this time, she has worked with countless companies in fulfilling their supply chain and logistics needs. 

Prior to joining Dermody Properties, she was the Market Leader in Northern California for Prologis. 

She has a wealth of knowledge that she has always been happy to share. This goes for both the people she works alongside and especially to her customers. She has fostered a spirit of diversity and inclusion since joining Dermody Properties.

ports
Archives, Global Logistics, Global Trade Daily, Ocean Ports

EXPANSION ALONE MAY NOT BE ENOUGH AS BUSY PORTS EYE SMARTER GROWTH

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A sharp increase in container cargo in the second half of 2020 and into the early months of this year has proven to be a pleasant surprise for several U.S. ports. But even prior to the impacts of COVID-19 on container cargo, many ports were already dealing with substantial growth and operational success. “Deeper, wider, bigger” has been the theme as ports and terminals spent and continue to spend billions of dollars to capture greater market share.

So, is “deeper, wider, bigger” the secret to growing the container business?

“There really is no secret,” says Joe Harris, spokesman for the Port of Virginia, who adds that his home facility “offers a modern, technologically advanced port run by a team of experienced professionals. We focus on customer service, efficiency and providing a predictable experience to our customers–the ocean carriers–and the cargo owners choosing to move their goods over our terminals. Those things, combined with a long-term plan of strategic infrastructure investments that is shared with the port’s users, are vital to our future.” 

From 2014 through 2024, the Port of Virginia will have invested nearly $1.5 billion in modernization. This includes expanding annual TEU (twenty-foot equivalent units) throughput capacity by 1 million units and deepening and widening commercial channels to make Virginia the deepest port on the U.S. East Coast. 

“The strategy is to leverage these investments to grow volume, expand market share, build our competitiveness and continue to be a catalyst for economic investment and job creation in Virginia for decades to come,” Harris said. 

Supporting the strategy is a team of professionals across the world, including the U.S., representing the port. These professionals are continually engaged in driving business to Virginia, according to Harris. “They are supported by a business analytics team that is helping to identify emerging markets, new industries, expansion among beneficial cargo owners and ocean carriers,” he adds. 

Port Tampa Bay has also witnessed a strong uptick in container cargo.

“Our container business increased by 33 percent last fiscal year and is up another 43 percent in the most recent quarter,” says Wade Elliott, the port’s vice president of Business Development. “The primary driver is the continued rapid growth of the Florida market, which was the second-fastest-growing state by population last year.”

The Tampa Bay/Orlando I-4 Corridor region, home to Florida’s largest concentration of distribution centers with close to 400-million square feet of space, “was already one of the hottest industrial real estate markets in the U.S. pre-COVID-19,” Elliott notes.

“New container service connections from Asia, and more recently Mexico, have helped facilitate this increased business,” he says, “and the port’s close proximity to these distribution centers allows importers and exporters to make multiple round-trip deliveries per day, resulting in significant savings in trucking and supply chain costs.”

To keep pace with the growth, there is a need to develop more infrastructure.

“Port Tampa Bay recently completed 25 acres of additional paved storage, bringing the total container terminal footprint to 67 acres with plans to add another 30 acres,” Elliott said. “Work has also begun on a third berth which will bring the total to over 4,500 linear feet, allowing three large ships to be worked at the same time. Construction is also about to start on a new container gate complex and the bid process has begun to acquire two, additional gantry cranes,” Elliott concluded.

The Jacksonville Port Authority (JAXPORT) saw container volumes rebound up by 5 percent year-to-date in FY21 (Fiscal Year) which began in October. Nearly 353,400 TEUs moved through JAXPORT during the first quarter of FY21, making it one of the port’s busiest first quarters on record for container volumes.

“Location and efficiency are both central to JAXPORT’s success throughout our various trade lanes and business lines,” says Robert Peek, JAXPORT’s general manager of Business Development. “JAXPORT is located in the heart of the southeast U.S. and offers fast access to 70 million consumers within a day’s drive.”

Historically, Puerto Rico has been JAXPORT’s largest trading partner, accounting for about half of all JAXPORT’s containerized volumes, but Jacksonville has been actively pursuing new business.

“Today, container shipping lines service additional Caribbean islands through JAXPORT, as well as Central and South America,” Peek added. “JAXPORT also offers robust container vessel service with China and countries throughout Asia.” 

With the benefits of congestion-free terminals and infrastructure enhancements, anchored by a harbor deepening project, JAXPORT will “continue to work to grow our offerings in the trans-Atlantic and African trade lanes as well,” Peek said.

With Jacksonville also in the “deeper, wider, bigger” mode, its infrastructure projects will support its growth plans.

“The federal project to deepen the Jacksonville shipping channel to 47 feet from its current depth of 40 feet will be completed through our Blount Island Marine Terminal in 2022,” Peek said. “Harbor deepening is JAXPORT’s single biggest growth initiative and positions us as a port of choice for the increasingly larger container ships calling the U.S. East Coast.”

More than $200 million in terminal enhancements are also underway at the SSA Jacksonville Container Terminal at Blount Island. “These enhancements include phased yard improvements to allow the facility to accommodate more containers, berth enhancements to enable the terminal to simultaneously accommodate two post-Panamax vessels and the addition of three additional state-of-the-art, eco-friendly container cranes, bringing the facility’s total to six,” Peek added.

California’s Port of Long Beach is a leading gateway on America’s most important trade route, the trans-Pacific, and it offers the fastest and shortest route between Asia and the United States.

“We offer more connections to interstate highways and national rail lines, along with access to 2 billion square feet of warehouse space in the region,” says port Executive Director Mario Cordero.

In 2020, Long Beach handled more than 8.1 million TEUs, the best year in its history “and to start off 2021, we’ve had our best January and February on record,” Cordero adds.

The port sees growth opportunities in markets such as Southeast Asia as well as Latin America, and eventually Long Beach would also like to see a resurgence in U.S. exports, Cordero says.

Capital improvement projects are crucial to maintaining successful and growing operations. Cordero says the port is completing “the world’s most advanced container terminal at Middle Harbor,” known as Long Beach Container Terminal.

Slated for completion later this year, this automated terminal will have 14 ship-to-shore, dual-lift cranes. Six of the cranes will be big enough to handle a 22,000 TEU ship. There will be 70 stacking cranes and 72 automated guided vehicles (AGV) at full build-out, adding an annual capacity of 3.3 million TEUs.

“In 2021, planned capital expenditures of $379 million account for 58 percent of our spending,” Cordero says. “Over the next 10 years, the port will invest $1.7 billion in infrastructure and $1 billion of that is for the development of the port’s on-dock rail capacity.”

Not surprisingly, the growth of the container business has spurred innovation in other aspects of the industry. 

California-based Blume Global, for example, has co-developed with Fenix Marine Services (FMS), a marine terminal operator at the Port of Los Angeles, a technology platform to add efficiencies to container movement. 

“This service doesn’t simply help the terminal operate more efficiently, the entire port ecosystem (ocean carrier, rail carriers, motor carriers, labor interests, logistics service providers, beneficial cargo owners) gains an advantage,” says Lincoln Pei, account manager, Blume Global. “When containers flow quickly through port complexes and marine terminals, vessel berth and rail car capacity are optimized, gate transactions are timelier, and dray carrier wait times are reduced, among other improvements,” he says.

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Soaring Construction Activities to Underscore the Global Fireclay Tiles Market Share

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Exponential demand for the production of tiles, ceramics, and firebricks from the construction sector will bolster the global fireclay tiles market volume. Fireclay tiles are highly sought-after owing to their ability to resist high temperatures and thermal and chemical stresses. These tiles are prevalently used for a slew of high-temperature applications, including commercial, residential, and other industrial manufacturing settings.

An upsurge in construction activities will bode well for industry players that are vying to expand their property development portfolios. Apart from the robust construction industry growth, expansion of the food industry will also boost the market share. Additionally, the ongoing trend for sourcing environmentally friendly materials will also contribute to the business outlook.

According to Global Market Insights, Inc., the fireclay tiles market will witness appreciable gains by 2027.

The global outlook faced hardships during the COVID-19 pandemic following severe supply chain disruptions. The outbreak created a plethora of short- and long-term business challenges that led to temporary shutdown or closure of construction projects. Meanwhile, a plunge in automotive production and modest growth in the food & beverage sector also dented the outlook.

However, given the fast-growing momentum of COVID-19 vaccination campaigns, construction activities have started picking up pace. Manufacturing and construction industries are expanding at a notable pace, underscoring the demand for fireclays tiles.

The demand for fireclays will be overtly noticeable in the residential settings, fueled by a surge in home renovation activities. Besides, the construction of outdoor spaces has witnessed a notable jump as patio professionals and landscape contractors are witnessing an increased demand from consumers. It is worth noting that homeowners have upped their focus on reconfiguring or updating both their indoor and outdoor spaces.

in the line of the rising number of infrastructural projects, the construction sector is poised to be a major recipient of fireclay tiles in coming years. Most notably, the construction of stadiums and other infrastructure projects would pan well for the business forecast. For instance, the launch of the Central 70 project in Colorado and the construction of Gordie Howe International Bridge in Detroit. Infrastructure development activities like these would add fuel to the fireclay tiles industry outlook.

The Middle East and Africa market will emerge as a promising region following the rollout of new economy-boosting construction projects. Prominently, the scheduled FIFA World Cup to be hosted by Qatar in 2022 has paved the way for the development of new infrastructure, which included the stadium, airport expansions, new metro lines, and hotels. Major dynamics driving the growth of fireclay tiles are increased availability of raw materials and technological innovations to develop better composites.

Stakeholders are also expected to inject funds into the Asia Pacific fireclays tiles market to capitalize on the demand from the expanding food & beverage sector in China and India. The trend of using environmentally friendly low thermal conductivity materials will bolster the demand for fireclay tiles in the food processing sector. Furthermore, emerging economies in the region are also likely to witness increasing demand for fireclay tiles in the construction of residential and commercial buildings.

The global fireclay tiles market is competitive with players such as Fireclay Tile Inc., Gruppo Ceramiche Ricchetti, Porcelanosa Grupo, Crossville Inc. (Curran Group, Inc.), Atlas Concorde, Mulia Industrindo, Mohawk Industries, and RAK Ceramics, among several others.

These companies will potentially focus on organic and inorganic strategies such as mergers & acquisitions, product launches, R&D, innovations, and partnerships. For instance, in September of 2020, RAK Ceramics announced the up-gradation of its manufacturing line in anticipation of a shifting trend towards bigger-sized ceramic floor tiles. The company is planning to upgrade and enhance its production lines and emphasize sustainability as well.

Notable rise in construction activities and the food & beverage industry will continue to underpin the fireclay tiles industry outlook in the next few years.

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Is Your Company Designed for a Post-Pandemic Future?

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Executives are under a tremendous amount of pressure in today’s post-pandemic knowledge-driven economy. They began to listen and respond to the plethora of information in the form of articles, books, and models attempting to provide effective leadership to help impact not only the productivity and profitability of the organization but also competitive advantage. This article is set in place to inspire leaders to effectively lead their companies to meet and exceed the global challenges today. It is about getting the information needed to be successful in the right hands of executives worldwide in a post-COVID world.

Today‘s post-pandemic knowledge-driven economy is placing more pressure on companies to achieve a high level of knowledge-driven performance and organizational competitiveness. There are many academic studies that focus on the organizational and managerial factors that drive knowledge-driven performance and organizational competitiveness. Knowledge is one such area that plays a critical role and is a strategic prerequisite for business success in the post-pandemic knowledge-driven economy.  Executives that manage knowledge and use it as an important driving force for business success find their organization to be more competitive and on the cutting edge in the new economic normal. For now, executives can develop conducive organizational climates that foster an atmosphere of trust and openness in which knowledge, as a driver of improved knowledge-driven performance.

This article blends scholarly concepts with real-world application and places a great deal of emphasis on the literature on organizational resources as significant indicators for knowledge-driven performance and organizational competitiveness. This also has several implications for practitioners. First, it adds to a relatively small body of business literature and develops our understanding of today’s post-pandemic knowledge-driven economy. Second, it develops a new and dynamic conception of organizational resources. Particularly, I advance the current literature on the post-pandemic knowledge-driven economy by offering novel insights into how organizational resources affect knowledge-driven performance and organizational competitiveness. Further, I show that a firm’s ability to enhance knowledge-driven performance, create competitive advantage and also recognize the global changes occurring in the post-COVID business environments and effectively respond to them can be significantly affected by organizational resources.

The Pillars of Post-Pandemic Knowledge-Driven Economy

In a post-pandemic world, the business environment is constantly changing. Knowledge is a crucial part of hypercompetitive environments. Organizations can design, copy, or update products and services easier with more adaptability than ever today. Organizations compete globally but must think locally if they expect to exceed. And new markets place demands on the roles of change leaders in organizations operating in this modern environment.

Today‘s knowledge-driven economy is placing more pressure on organizations to employ effective leaders who are capable of developing knowledge-based organizations and creating competitive advantage. Culture, structure, strategy, networks, and stakeholders are internal resources that can increasingly facilitate knowledge-driven performance and improve the search for knowledge.

Executives are now introduced to The Proposed Model

Based on an integrated framework of the above ideas and scholarly research, I depict an applicable and reliable model for executives as Figure 1. This framework of the model highlights a relationship between organizational resources and knowledge-driven performance and organizational competitiveness. In Figure 1, organizational resources have sizable impacts on knowledge-driven performance which also leads to better competitive advantage. In fact, better strategy, better culture, better structure, better networks, and better stakeholder orientation can lead to higher knowledge-driven performance and organizational competitiveness.

Figure 1: The New Proposed Framework

There are some executives that like to look at academic journals but unfortunately,  crossover literature has not reached them enough. I attempt to blend scholarly concepts with real-world application. Insufficient consideration of the impacts of organizational resources on knowledge-driven performance and organizational competitiveness has been exposed. Thus, for executives, this article can portray a more detailed picture of the effects of these organizational factors on knowledge-driven performance and organizational competitiveness that have been mentioned but not placed in a model in the past.

In Conclusion

This article raises vital questions as to how executives can successfully contribute to knowledge-driven performance and subsequently improve competitiveness at all levels of the organization and overcome threats to one’s survival as a company. It also offers practical contributions for managers at all levels of the organization. I stress that knowledge is a strategic resource for organizational portfolios in a post-pandemic world. Many organizations still implement knowledge development initiatives without sufficient consideration of their organizational resources. When executives ensure the effectiveness of organizational resources they increase knowledge-driven performance and organizational competitiveness and also lessen operational risk.

This piece suggests that five organizational factors of culture, structure, strategy, networks stakeholder orientation constitute the foundation of a supportive workplace to improve knowledge-driven performance and organizational competitiveness. The nature of the interactions between these organizational resources and knowledge-driven performance and organizational competitiveness can suggest several complementary insights for the existing business literature.

This focus is based upon the critical role of these organizational resources which allows a rich basis to understanding the mechanisms by which knowledge-driven performance and organizational competitiveness are influenced. It articulates a different approach. I simply extended the business literature by showing how executives can also contribute to knowledge-driven performance and organizational competitiveness by fostering a trust-based culture, a flexible structure, an agile strategy, and more effective networks stakeholder orientation.

These five factors coupled with knowledge-driven performance and organizational competitiveness are presented as a new approach for executive implementation.