10 Experts Share Tips on How to Develop a Winning Logistics Strategy

September 3rd, 2019 Kurt Walker Leave a comment

Effective transition of resources cuts production costs, which in turn gives you more maneuvering space to improve other aspects of your business. However, choosing the optimal strategy is demanding, especially for startups. Less experienced business owners can easily fall into a trap and focus their attention on expensive solutions that never show results and live to see their business crumble.

Therefore, we’ve decided to share some of the most constructive pieces of advice from people who mastered logistics strategy development.

Shawn Casemore

Founder and the president of Casemore & Co, Inc. wrote a book on operational management, focusing mainly on sales but most of his ideas are universally applicable. Shawn states that the distribution network holds significant savings potential if properly handled. Leveraging predicted sales volume to negotiate a lower price is one of the key components in logistics.

Providing long-term cooperation to a courier service often leads to reduced freight costs, meaning more money stays in your pocket. It’s the same as it’s with professional writing services, the more work you need the better terms you get in return.

Danny Yunes

Coyote Logistics’ Manager of Supply Chain Strategy is a veteran in the industry, with an immense experience that provided him with an important takeaway. Danny Yunes claims that logistics should be calibrated according to the needs of your customers. If your core consumers expect quality service rather than speed because their priority is to receive undamaged goods and according to specifications, your target strategy is clear.

Samuel Levin

SaaS transport management and outsourcing are what MavenWire‘s Managing Director has to say to startups that can’t afford substantial investments in logistics during the first few years. He argues that these options are affordable and easy to keep up with, allowing less experienced managers to stay on top of the process.

Steve Murray

Experienced Chief Researcher at Chain Supply Visions claims that implementation of Sales and Operation planning is the most effective way to build up the performance of each company department to its full potential. This strategy includes cooperation among departments, synchronization of each operational process to reduce loses, avoid penalties, keep data updated, and keeping this harmony in place through constant process auditing and dealing with every issue as a team.

Imagine running an assignment service and your writers sit idle because the orders are not coming through. The whole team should work on finding the solution that will allow seamless workflow and keep the customers happy with the turnaround time.

Nick Martin

Founder of RiskLogic says that logistics strategy should be resilient. His thoughts are that Just-in-Time strategy seems perfect in the short run but it is fragile because minor setbacks can put your entire operation to a halt. A resilient strategy is one where you are prepared for every eventuality and there’s not much that can disrupt your flow.

Rick Blasgen

Council of Supply Chain Management President and CEO, Rick Blasgen, keeps it simple. His advice is to hire a logistics expert with a proven track record and let that person analyze your options and start working on your strategy. You could start your hunt on LinkedIn and carefully pick top candidates. You could also visit professional conferences for potential hires. Think of it like googling to decide would you hire AssignmentMasters, Assignment Geek, or Grademiners review service to develop marketing content for you.

Clay Gentry

Transportation Insight’s VP of Logistic Operations says that one should develop a strategy according to its impact on your business goals and customers’ operations. His advice is to focus on fulfilling service level goals while implementing the most cost-effective method of resource distribution. Moreover, Clay suggests that outsourcing is sometimes more effective than investing in the development of logistics infrastructure.

Mark Broussard

CEO of SAMI emphasizes the importance to keep investments in logistics rational, especially in the early days of conducting business. His idea is to be clear that each action you take makes perfect sense for your business at the time that action is taken. Mr. Broussard thinks that every investment and step forward in the development of your strategy needs to support your entire process.

Kenneth B. Ackerman

Mr. Ackerman devoted his entire professional life to logistics and warehousing management, eventually founding Warehousing Forum, a vault of industry wisdom. His advice is to follow the corporate strategy. Let’s say you decide to start a business and write custom papers for college students and your goal is to provide the fastest service on the internet to take over the market from bestessays.com.au and myassignmenthelp review because they are your main competitors. From the moment you pick up an order to the moment of delivery, the process efficiency depends on flawless logistics.

Tim Garcia

As it’s to be expected from one of the leaders in the chain management software development industry, Mr. Garcia suggests you should invest in digital solutions to enhance your logistics. His arguments include commonly understaffed supply-chain which makes people work faster and make more mistakes, ability to keep track of each item and financial leverage against a team of experts that would do the same job for much more money.

Conclusion

Enhancing your logistics doesn’t necessarily mean you should pour money into expensive infrastructure or state of the art management software. In most cases, it’s all about organizing that which you already have to serve your purpose the best. However, working with limited resources makes planning and organizing the chain that binds the production somewhat of a challenge. We hope these words of wisdom will help you in achieving your goals.

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This guest post is contributed by Kurt Walker who is a blogger and college paper writer. In the course of his studies, he developed an interest in innovative technology and likes to keep business owners informed about the latest technology to use to transform their operations. He writes for companies such as Edu Birdie, XpertWriters and uk.bestessays.com on various academic and business topics.

Archives, Global Trade Daily, Imports/Exports

Whey Market in Asia-Pacific – China to Remain the Largest Import Market, Despite a Softer Economy

September 1st, 2019 IndexBox Leave a comment

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

The revenue of the whey market in Asia-Pacific amounted to $1.5B in 2018, waning by -4.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The total market indicated buoyant growth from 2007 to 2018: its value increased at an average annual rate of +6.4% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, whey consumption increased by +9.0% against 2016 indices. The most prominent rate of growth was recorded in 2011 with an increase of 27% y-o-y. Over the period under review, the whey market reached its maximum level at $1.7B in 2013; however, from 2014 to 2018, consumption failed to regain its momentum.

Consumption By Country in Asia-Pacific

China (526K tonnes) constituted the country with the largest volume of whey consumption, accounting for a 42% share. Moreover, whey consumption in China exceeded the figures recorded by the region’s second-largest consumer, Indonesia (128K tonnes), fourfold. Australia (91K tonnes) ranked third in terms of total consumption with a 7.3% share.

From 2007 to 2018, the average annual growth rate of volume in China amounted to +9.3%. The remaining consuming countries recorded the following average annual rates of consumption growth: Indonesia (+8.1% per year) and Australia (+6.3% per year).

In value terms, China ($555M) led the market, alone. The second position in the ranking was occupied by New Zealand ($159M). It was followed by Indonesia.

In 2018, the highest levels of whey per capita consumption was registered in New Zealand (15 kg per person), followed by Australia (3,674 kg per 1000 persons), Malaysia (2,644 kg per 1000 persons) and Thailand (853 kg per 1000 persons), while the world average per capita consumption of whey was estimated at 299 kg per 1000 persons.

From 2007 to 2018, the average annual growth rate of the whey per capita consumption in New Zealand totaled +23.5%. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Australia (+4.7% per year) and Malaysia (+3.7% per year).

Market Forecast 2019-2025 in Asia-Pacific

Driven by increasing demand for whey in Asia-Pacific, the market is expected to continue an upward consumption trend over the next seven-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +3.7% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 1.6M tonnes by the end of 2025.

Production in Asia-Pacific

The whey production amounted to 151K tonnes in 2018, approximately mirroring the previous year. In general, whey production, however, continues to indicate a relatively flat trend pattern. The most prominent rate of growth was recorded in 2010 when production volume increased by 1.9% year-to-year. Over the period under review, whey production attained its peak figure volume at 155K tonnes in 2008; however, from 2009 to 2018, production stood at a somewhat lower figure.

In value terms, whey production totaled $160M in 2018 estimated in export prices. In general, whey production, however, continues to indicate a drastic curtailment. The growth pace was the most rapid in 2010 with an increase of 70% year-to-year. The level of whey production peaked at $433M in 2012; however, from 2013 to 2018, production failed to regain its momentum.

Production By Country in Asia-Pacific

Australia (99K tonnes) remains the largest whey producing country in Asia-Pacific, comprising approx. 65% of total production. Moreover, whey production in Australia exceeded the figures recorded by the region’s second-largest producer, New Zealand (26K tonnes), fourfold. The third position in this ranking was occupied by China (20K tonnes), with a 13% share.

In Australia, whey production remained relatively stable over the period from 2007-2018. In the other countries, the average annual rates were as follows: New Zealand (+1.5% per year) and China (-1.1% per year).

Exports in Asia-Pacific

In 2018, the amount of whey exported in Asia-Pacific stood at 78K tonnes, jumping by 28% against the previous year. In general, whey exports, however, continue to indicate a measured decrease. The most prominent rate of growth was recorded in 2016 when Exports increased by 45% year-to-year. Over the period under review, whey exports attained their maximum at 99K tonnes in 2009; however, from 2010 to 2018, exports remained at a lower figure.

In value terms, whey exports amounted to $95M in 2018. Over the period under review, whey exports, however, continue to indicate a drastic setback. The most prominent rate of growth was recorded in 2011 with an increase of 30% y-o-y. Over the period under review, whey exports attained their maximum at $209M in 2012; however, from 2013 to 2018, exports stood at a somewhat lower figure.

Exports by Country

Australia was the major exporting country with an export of around 52K tonnes, which recorded 67% of total exports. New Zealand (15K tonnes) took a 20% share (based on tonnes) of total exports, which put it in second place, followed by Thailand (6.4%). The following exporters – Singapore (1.3K tonnes) and South Korea (1.3K tonnes) – each reached a 3.4% share of total exports.

Australia experienced a relatively flat trend pattern of wheyexports. At the same time, South Korea (+36.0%) displayed positive paces of growth. Moreover, South Korea emerged as the fastest growing exporter in Asia-Pacific, with a CAGR of +36.0% from 2007-2018. By contrast, New Zealand (-2.9%), Thailand (-6.4%) and Singapore (-9.6%) illustrated a downward trend over the same period. From 2007 to 2018, the share of South Korea increased by +1.6% percentage points, while Australia (-1.8 p.p.), Singapore (-3.4 p.p.), Thailand (-6.9 p.p.) and New Zealand (-7.7 p.p.) saw their share reduced.

In value terms, the largest whey markets in Asia-Pacific were Australia ($50M), New Zealand ($27M) and Thailand ($6.3M), together accounting for 88% of total exports. South Korea and Singapore lagged somewhat behind, together accounting for a further 5.8%.

Among the main exporting countries, South Korea (+59.4% per year) experienced the highest growth rate of exports, over the last eleven-year period, while the other leaders experienced a decline in the exports figures.

Export Prices by Country

The whey export price in Asia-Pacific stood at $1,217 per tonne in 2018, going down by -28.9% against the previous year. Overall, the whey export price continues to indicate a pronounced descent. The most prominent rate of growth was recorded in 2011 an increase of 49% year-to-year. Over the period under review, the export prices for whey attained their peak figure at $2,774 per tonne in 2012; however, from 2013 to 2018, export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2018, the country with the highest price was South Korea ($2,989 per tonne), while Australia ($957 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by South Korea, while the other leaders experienced mixed trends in the export price figures.

Imports in Asia-Pacific

In 2018, the amount of whey imported in Asia-Pacific totaled 1.2M tonnes, jumping by 10% against the previous year. The total imports indicated prominent growth from 2007 to 2018: its volume increased at an average annual rate of +6.7% over the last eleven-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, whey imports increased by +35.0% against 2014 indices. The growth pace was the most rapid in 2009 with an increase of 22% y-o-y. The volume of imports peaked in 2018 and are likely to see steady growth in the immediate term.

In value terms, whey imports amounted to $1.2B in 2018. In general, whey imports continue to indicate a moderate increase. The most prominent rate of growth was recorded in 2011 when Imports increased by 48% against the previous year. The level of imports peaked at $1.8B in 2013; however, from 2014 to 2018, imports failed to regain their momentum.

Imports by Country

China was the key importing country with an import of about 506K tonnes, which amounted to 43% of total imports. Indonesia (128K tonnes) ranks second in terms of the total imports with a 11% share, followed by Malaysia (7.3%), the Philippines (5.6%), Thailand (5%), New Zealand (5%) and Japan (4.8%). Viet Nam (45K tonnes) followed a long way behind the leaders.

Imports into China increased at an average annual rate of +10.1% from 2007 to 2018. At the same time, New Zealand (+24.1%), Indonesia (+8.0%), Malaysia (+5.3%), Viet Nam (+5.1%), the Philippines (+4.0%) and Thailand (+3.6%) displayed positive paces of growth. Moreover, New Zealand emerged as the fastest growing importer in Asia-Pacific, with a CAGR of +24.1% from 2007-2018. By contrast, Japan (-1.6%) illustrated a downward trend over the same period. China (+28 p.p.), Indonesia (+6.2 p.p.), New Zealand (+4.5 p.p.), Malaysia (+3.2 p.p.), the Philippines (+2 p.p.), Thailand (+1.6 p.p.) and Viet Nam (+1.6 p.p.) significantly strengthened its position in terms of the total imports, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($510M) constitutes the largest market for imported whey in Asia-Pacific, comprising 41% of total whey imports. The second position in the ranking was occupied by Indonesia ($129M), with a 10% share of total imports. It was followed by Malaysia, with a 7% share.

From 2007 to 2018, the average annual rate of growth in terms of value in China stood at +4.8%. In the other countries, the average annual rates were as follows: Indonesia (+3.1% per year) and Malaysia (+1.6% per year).

Import Prices by Country

The whey import price in Asia-Pacific stood at $1,047 per tonne in 2018, going down by -14% against the previous year. In general, the whey import price continues to indicate a perceptible reduction. The pace of growth was the most pronounced in 2010 when the import price increased by 29% against the previous year. Over the period under review, the import prices for whey reached their maximum at $1,852 per tonne in 2013; however, from 2014 to 2018, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major importing countries. In 2018, the country with the highest price was Japan ($1,315 per tonne), while Viet Nam ($787 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by Viet Nam, while the other leaders experienced a decline in the import price figures.

Source: IndexBox AI Platform

Archives, Global Trade Daily, News

BluJay and Damco Take Partnership to the Cloud

August 31st, 2019 GT Staff Leave a comment

Global freight forwarding provider, Damco announced the extension of its partnership with supply chain software and services provider, BluJay Solution this week through a multi-year agreement. The agreement enables the ongoing usage of the Transportation Management for Forwarders platform, now on the cloud through an anticipated upgrade.

“We’ve seen the capabilities added in the past few years – the game has really been upped, and it’s critical in our industry to keep moving forward with technology to stay ahead,” said Martin Ring, Global Chief Operations Officer at Damco. “Damco will take advantage of the continually enhanced functionality available from BluJay to run our business as efficiently as possible.”

Increased efficiencies, productivity, and streamlined customer communications are a few of the named benefits to come through the extended partnership, adding to the eight years between the two companies. File management remains the top priority for Damco and will continue focusing on the accurate and timely solutions benefiting its customer base such as integrated customer solutions.

“BluJay is delighted to continue our partnership with Damco. This relationship evolution is truly indicative of the value customers realize with greater solution adoption over time, supported by people who are committed to their success,” said Chris Timmer, Chief Revenue Officer for BluJay.

“We value the history of our partnership with BluJay,” added Ring. “Damco has appreciated working with BluJay’s experts for so many years, and they will take us from today to tomorrow to support our business objectives.”

Archives, Global Logistics, Global Trade Daily

How Blockchain Can Fight Counterfeiting and Fraud

August 28th, 2019 Mohan Venkataraman Leave a comment

A recent report by the Organization for Economic Cooperation and Development and the European Union’s Intellectual Property Office shows that imported counterfeit goods raked in $509 billion in 2016 — nearly 3.3% of all global imports for that year. To fight back against the rising tide of knockoffs threatening their brands, companies are turning to blockchain technology to create more transparent supply chains.

Blockchain is a distributed, decentralized ledger technology controlled by smart contracts and regulated by a consensus protocol. The ledger automatically records every transaction, and every record it creates is unalterable. Depending on exactly how one uses the ledger, it can be classified as permissioned, public, or fit for purpose.

Within a brand’s supply chain, a blockchain ledger can manage a variety of activity from automating contract compliance between entities via smart contracts to tracking products from manufacturing to distribution. The ledger eliminates supply chain ambiguities and creates transparency that ensures companies and customers get the quality for which they pay.

Blockchain’s Value in Existing Supply Chains

The value of modernizing supply chains with blockchain isn’t just theory. Major brands have already begun partnering with tech firms and other entities in response to rising demands for improved brand protection. LVMH (Louis Vuitton SE), for instance, working closely with Microsoft and ConsenSys, has created Aura Ledger to provide proof of authenticity of luxury items and trace their origins from raw materials to point of sale and beyond to the used-goods markets.

Throughout the retail industry, companies like eBay are starting to offer product authentication as a value-added service. Currently, the company authenticates only handbags due to rising concerns from customers about their authenticity. However, eBay plans to expand authentication to additional luxury items that might be subject to counterfeit.

In agriculture, the blockchain-based Grain Discovery streamlines transactions between farmers and buyers, making it easier for them to form new partnerships. In the pharmaceutical industry, distributors have formed the MediLedger consortium to track the provenance of pharmaceuticals and stem the counterfeit drug market worth more than $75 billion annually.

In virtually every industry, suppliers and distributors are turning to blockchain technology to lower their risk of fraud. A decentralized, immutable record of every product’s journey can help verify authenticity — or lack thereof.

Blockchain as a Force Against Fraud

Companies that worry about counterfeit versions of their products have options to address the issue. When implemented together, the following steps can help mitigate risk and inspire confidence among companies and consumers alike:

Establish a secure supply chain network.

For blockchain to successfully transform a company’s supply chain, every business entity along the chain must agree to participate. That makes establishing a network of trusted partners the most important step toward securing products.

For example, the jewelry consortium TrustChain, which operates on IBM’s blockchain platform, only works because the group includes the mines that produce jewels, manufacturers that refine them, and retailers that sell them.

Given the rise of counterfeit purchases, most companies with strong brands are looking to work with their suppliers to prevent fraud. The momentum of such efforts increases when every stakeholder in the supply chain sees the value and signs up to actively participate in the efforts.

Choose the tags most suited for the brand and product.

Only with the right tagging technology can blockchain technology track every product along its journey. Through various IoT devices, tags can detect diversions, liquid leaks, vibrations, package openings, tilt, excessive force, and more.

Companies have several options, such as smart tags and high-resolution signatures that digitally relate products to the blockchain. Purpose-fit tags that have been developed to track shipments at the container, pallet, and package levels further help. Companies can also employ decentralized identifiers (DIDs) that are universally resolvable and globally visible to stakeholders throughout the supply chain.

This topic holds great interest across many industries. The RFID Lab at Auburn University recently announced the Chain Integration Project (or CHIP) launch, a project focused on finding ways for retail and apparel companies to communicate with their suppliers about tracking product inventory at the item level using radio frequency identification tags and blockchain. The project has attracted global companies across many industries due to the applicability across supply chains outside of retail and apparel.

Some products don’t need to be tracked with such intricate detail, while others should be tagged to track every moment of their journeys. Determine what tagging technology makes the most sense, adds business value, and is easiest to manage along the entire supply chain.

Encourage customers to be part of the solution.

When customers clearly and directly benefit from a company’s use of a blockchain-enabled supply chain, getting more partners to join the consortium becomes easier. However, brands can’t expect all end users to automatically jump on board.

When eBay released its authentication program for handbags, it did so in response to a need its customers had expressed. To entice sellers to participate, it offers several incentives if they sign up to authenticate their products.

Before long, the streamlined processes and unprecedented transparency that blockchain provides will be more than enough to encourage participation. Until then, make it more attractive through bonuses and other rewards in order to incentivize users and increase customer stickiness.

Unleash IoT, AI, and ML to actively fight fraud.

Protecting against counterfeiting and fraud isn’t always a passive exercise. With blockchain, companies can unleash the potential of IoT, artificial intelligence, and machine learning to actively prevent fraudulent transactions.

For instance, customers can scan product tags to verify their authenticity or compare images of the product against its stored signatures. Proof of purchase and other transaction details can be cryptographically linked to the buyer and product and then subsequently uploaded to the blockchain.

Any product that bears a brand’s name but can’t be tracked to its manufacturer would be considered counterfeit. A company can ensure, in real time, that it receives compensation for every product sold with its name on it.

The reported value of fraudulent goods that hit the global market is expected to continue rising, but companies are no longer helpless in the face of counterfeiters. As more industries and their supply chains embrace blockchain technology, counterfeit goods will no longer have a place in any market.

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Mohan Venkataraman is the chief technology officer of Chainyard, a blockchain consulting company focused on delivering production solutions that address supply chain, financial services, transportation, government, and manufacturer pain points. With more than 20 years of proven experience, Mohan has extensive skills in software engineering, governance best practices, and industry models. With exposure to more than 70 clients, he has a clear focus on understanding client needs and aligning technology and business priorities to deliver value. His current interests include blockchain, cloud solutions, big data, service-oriented architecture, governance and integration competency center establishment, and enterprise architecture, with a focus in telecom media, technology, insurance, retail, healthcare, and life sciences industries.

Archives, Global Trade Daily, Trade Cycle

How to Successfully Conduct Global Business During a Time of Geopolitical Instability

August 26th, 2019 Scott Ferguson, CEO of the World Trade Centers Association Leave a comment

The way organizations approach global commerce is undergoing a radical change. Geopolitical instability is slowing growth in a volatile global economy as organizations are forced to adapt their tactics, making complex decisions that increase operational costs and, if mishandled, make them less competitive in an unforgiving business landscape. So, what can organizations do to navigate this ‘new normal’? As an association whose members deal with small- to medium-sized enterprises (SMEs) at the local level on a regular basis, we at the World Trade Centers Association (WTCA) released our second annual WTCA Trade and Investment Report: Navigating Uncertainty, in partnership with FP Analytics. The report focuses on how cities around the world are optimizing trade and investment opportunities despite challenges, both economic and political, and how SMEs benefit from these strategies.

The report shows that the majority (83%) of business leaders interviewed believe that global economic uncertainty will stay at its current elevated levels (30%) or get worse (53%) in the coming year. However, 69% of business leaders polled are cautiously optimistic about the coming year, as the report shows that resilient cities—defined as those that outperform their countries during economic downturns—have Foreign Direct Investment (FDI) as a percentage of GDP twice as high as non-resilient cities.

Despite their differences in location and culture, resilient cities have a set of commonalities that allow trade and investment to thrive. These characteristics include diversified economies and strong service sectors. In fact, resilient cities on average saw the share of services in GDP grow by 3.3% over the last five years; more than double the pace of non-resilient cities. Their populations are largely educated, with many inhabitants having college or other advanced degrees, as well as diverse, with higher rates of foreign citizens. On average, foreign citizens represent 11.6% of resilient cities’ populations, which is one-quarter higher than that of non-resilient cities. These cities also tend to have strong transportation infrastructures, including both airports and public transit options.

Building Resilience

The report also identified specific tactics used by resilient cities that organizations, including business and civic leaders looking to improve their own city’s resilience, can mirror.

In resilient cities, key stakeholders are prioritizing direct diplomacy, meeting face-to-face to navigate obstacles created by regional or national governments. By cutting through political red tape, organizations have been able to create new meaningful relationships with each other and strengthen existing ties. The ability to engage in a direct dialogue creates efficient business interactions that are beneficial to all parties. For example, World Trade Center (WTC) Arkansas has organized multiple diplomatic trade missions with Mexico. As a result, its exports to Mexico are growing 3.6 times faster than to any other country.

Cities are also proactively building programs to attract and retain skilled foreign citizens. For example, Twente, located in the eastern Netherlands, is evolving from a region focused on machine-building and textiles to one with an economy driven by high-tech systems. To retain young, skilled workers from across the globe, WTC Twente created an Expat Center that offers a range of services, including Dutch language courses, visas and work permits, housing, and support for families, as well as social events with the goal of enticing technically-skilled foreign workers and their families to integrate into the community for the long term.

Turning Obstacles into Opportunity

Economic turmoil affects everyone, but not always in the same way. For some, the current geopolitical reality presents opportunity. City leaders are adapting to these geopolitical changes and establishing themselves as cost-efficient and low-risk trade and investment partners to capitalize on the situation. FDI is being redirected towards these agile cities who have recognized the advantages created by this global uncertainty, and supply chains are shifting and realigning based on new benefits. Competition for FDI is escalating (global FDI slowed 27% over the last year, according to the OECD) and the private and public sectors need to work hand-in-hand to create attractive fiscal and tax environments, and institute policies that will attract business.

Cities are also increasingly investing in both high-tech industries, and SMEs to ensure they are able to attract FDI at a time when this investment comes at a premium. These high-tech industries will lead to future growth and play a central role in the next industrial revolution. Additionally, partnerships with major research institutions are being used to create new technology and modernize existing tech. For instance, in Delaware, private agriculture technology or “ag-tech” companies have partnered with universities to pioneer better technology in seeding, pest management, antibiotic reduction, and biopharmaceuticals.

SMEs are well suited to adapt quickly in the face of change and evolving economic realities, which enables them to capitalize on changing conditions. However, their size can prevent them from competing on a global scale. To combat this, programs that help SMEs move forward given limited resources can be critical in encouraging and nurturing growth opportunities. As an example, WTC Toronto created the Trade Accelerator Program (TAP), a six-week program that connects SMEs with export and business experts to train them on developing export plans fit for the global market. This program has now been adopted by several other WTC members in Canada, including Vancouver and Winnipeg.

At the moment the global economy is relatively unpredictable, and increasing risks for businesses have made sound strategic business planning more difficult at a time when it is absolutely vital. Knowledge, preparedness, and agility are key traits cities and businesses need to acquire in order to achieve success and growth. Despite the prevailing conditions, with a strategic approach and tactics proven to increase resilience, organizations can optimize current trade and investment opportunities and set themselves up for success now and in the future.

To review the full 2019 WTCA Trade and Investment Report: Navigating Uncertainty, including commentary from WTCA Members, visit www.WTCAReports.org

Archives, Commentary, Global Logistics

The Utilization of IoT Technology in Smart Logistics

August 26th, 2019 Gregg Abbate Leave a comment

With the new IoT-powered supply chain, the industry can now track goods from anywhere, at any time, on a global scale, transforming the modern supply chain as we know it.

We live in a complex, global world, and few industries better illustrate this complexity than logistics. In this multifaceted landscape, missteps along the supply chain are unavoidable. Most consumer goods travel thousands of miles, changing hands multiple times, before reaching their final destinations. Yet, no matter how solid the logistics network for a moving asset is, at some point a truck will get stuck in traffic, a crate will be delayed at a warehouse or an asset will go missing altogether.

Most parcels languish for much of their time in transit dead-zones; goods are first logged at factories, warehouses and delivery depots, but little real-time data exists during the journey between these points. Although radio-frequency identification (RFID) tags help track goods as they reach their destination, when it comes to following mobile assets, traditional RFID technology falls short. They give no information on what happens ‘in between’, leaving logistics managers largely in the dark about the state of the goods they’re charged with moving safely, and quickly, through a complex supply chain.

With traditional supply chain management solutions, logistics managers often only learn about delayed or misrouted assets after they arrive hours late—or not at all—at their destinations. These hours in limbo translate into lost productivity, delayed production and broken client relationships.

IoT technology unlocks the value in supply chains

Using the real-time data collected by IoT sensors, companies are now able to identify where to trim the fat and make quicker, bolder and more informed business decisions that sharpen their competitive edge. It also gives unmatched insights on customer behaviors, enabling them to innovate based on sound evidence. And by accessing data in real-time, businesses can anticipate their customers’ needs and desires before they do, enabling them to deploy resources more strategically and be more adaptable.

Real-time asset tracking streamlines field operations

As a tracking tool, IoT technology sharpens efficiencies between warehouses and distributors, giving customers clearer visibility of their deliveries. But more than this, real-time tracking provides data with fine-grain accuracy, hyper-speed connectivity, low-latency (less downtime), and deep coverage.

In contrast to RFID-based scan points, the IoT smart tracking device securely transmits real-time information about the exact location of those goods at any point along the supply chain, enabling businesses to minimize costly errors or avoid disruptive bottlenecks quickly.

Unlike most first-generation smart devices, assets connected to the IoT network don’t rely on WiFi or 4G, so connectivity issues are lessened, regardless of where the asset travels. IoT devices also benefit from deeper coverage in traditionally low-connectivity areas such as garages and basements.

Cameras installed on multiple parts of delivery vehicles give a 360° view of the travelling environment, while LTE signals in vehicles make for better GPS tracking. The quality and quantity of granular data that these intelligent devices can collect and organize is unprecedented. Thanks to this new level of information, global companies are beginning to see their supply chains become leaner and more efficient.

Reducing delay-related costs with improved speed and accuracy

As goods make their way through the supply chain, IoT sensors return information about journey times, traffic surge spots, warehouse delays, network gaps or a change in ambient temperature. These up-to-the-minute alerts allow companies to mobilize quickly across a complex, global transportation network. Delayed assets can cause major disruptions further down the supply chain, but smart logistics turns potentially costly disruptions into a minor hiccup.

Building a lean supply chain

As our global economy becomes even more interconnected, investing in IoT-powered smart logistics solutions has no longer become a ‘nice to have’ option, but a critical necessity, giving the industry all the tools it needs to remain at the forefront of agile innovation in an everchanging world.

Gregg Abbate is the iLogistics key account manager of Advantech.

Archives, Global Logistics, Global Trade Daily

Shipping Solutions Keep Pace with E-Commerce’s Global Reach

August 14th, 2019 Paul Tessy, Senior Vice President, International, Purolator Leave a comment

I recently came across a study in which 80 percent of executives from leading U.S. e-commerce companies said they considered expansion to international markets “critical” to future growth. The survey also revealed that Canada, Western Europe and Asia account for most international sales from U.S. websites, followed by China and Japan.

These findings are indicative of the “no-turning-back” mentality taking place among retailers, as the reality of the growing global e-commerce marketplace takes hold. U.S. retailers now look beyond their borders and see a world in which 80 percent of B2C e-commerce sales are taking place outside of North America, and in which consumers are increasingly open to shopping across borders.

International e-commerce sales have become so pervasive in fact, almost 60 percent of shoppers say they made an international purchase in the past six months. That number jumps to almost 63 percent for European consumers, and 58 percent for Asia-Pacific shoppers.

This is especially true within the lucrative U.S./Canada trade relationship, with as much as one-third of Canadian e-commerce purchases going to U.S. sites, and more than 60 percent of Canadians having made an international purchase in the last six months.

Today consumers across the globe, including in emerging and developing countries, have unprecedented access to brands and product selections online. Consider, for example, that 75 percent of online shoppers in India and 61 percent of shoppers in Nigeria have made international purchases. It’s no wonder then the value of retail e-commerce is surging and projected to be valued at almost $5 trillion by 2021, just two years from now.

For smart retailers, the customers are there. The challenge is to connect with consumers in a way that aligns with their local customs and expectations to localize transactions and fine-tune the customer experience. And, since ensuring seamless deliveries is an important part of any customer experience, it’s essential to understand that international logistics resources are possible today that were unthinkable just a few years ago.

Meeting customer expectations – in every country

In thinking about satisfying expectations, a retailer will come to understand that the world’s consumers essentially want the same things when shopping online:

Consistent inventory across all channels
Detailed product information
Site navigation in their native languages
Prices listed in local currencies
Online payment/currency-conversion capability
Access to rebates and other savings incentives
Fast delivery – what they want, delivered when they want it.

A retailer must dedicate time to market research as a way to understand consumer preferences and dislikes. You need to make sure there’s demand for your product, determine who your competitors are, and then find your competitive advantage. A good logistics strategy will be an integral part of that competitive advantage because seamless, on-time deliveries – and hassle-free returns – are among the most important deliverables for consumers all over the world.

PriceWaterhouse Cooper’s 2019 Global Consumer Insights Survey asked consumers in 27 countries about their shipment expectations. Among the more interesting findings, is the impact mega-retailers including Amazon, Alibaba and Net-a-Porter have had in defining global consumer expectations. Global consumer expectations include free shipping (72 percent), free return shipping (65 percent), package tracking (54 percent) and same-day delivery (50 percent).

To accommodate these globally-shared expectations, international retailers are building logistics strategies that create the “look and feel” of a domestic delivery – despite being an ocean or a continent away. Italian customers don’t really care if customs delays affected a shipment leaving the United States, or that bad weather over the Atlantic forced a shipment to be re-routed. They just want their packages delivered on time, as promised. Every time.

Behind the scenes, logistics providers are working to expand their international footprints, to ensure capabilities are in place to help businesses meet their delivery promises. For example, my company recently announced a $1B investment in the future, including a new national hub set to open in Toronto in 2021. You’ll find similar developments happening around the world.

Technology and innovation are also allowing logistics companies to provide levels of service that were unthinkable as recently as a few years ago. Some of those solutions include:

-Customized solutions. Shipping companies can support a retailer by providing a wide range of options to build the best solution for a particular customer’s needs. Shippers have traditionally been bound by rigid carrier schedules; today, a solution can meet a specific need. For example, a shipment traveling from southern California to Ontario would benefit from direct linehaul service to the border, followed by induction into a Canadian distribution center. The direct linehaul could conceivably shave two to three days from a “traditional” Canada-bound schedule.

-Different modes of transportation. Hybrid solutions might integrate ground service with a rail or air component, depending on a particular situation. In fact, 2018 was a particularly strong year for intermodal volume on U.S. railroad, according to the Journal of Commerce.

-Expedited service. For shipments to Europe, Asia, Latin America, or even across North America, a retailer can take advantage of unprecedented expedited air solutions. We used to think of “expedited” as a solution reserved for extreme emergencies, but today, retailers increasingly rely on expedited air solutions because of its guaranteed, anywhere/anytime capabilities.

-Cross-border expertise. Efficiencies in customs management now make it possible for shipments to move swiftly across international borders. Experienced providers will ensure maximum efficiency in the clearance process, including assignment of the proper tariff classification code. Getting the tariff classification correct is important because an incorrect classification will delay a shipment, and shippers might pay a higher rate of duty. A report by the Auditor General of Canada found 20 percent of shipments arrive at the border with an improper code assigned! And since tariff classification is used to determine eligibility for free trade agreement benefits, an incorrect classification could cause the shipper to miss out on those savings as well.

E-commerce truly is the engine of future retail growth. And thanks to innovations in transportation efficiency, your access to the world’s customers has never been easier.

Archives, Global Trade Daily, Imports/Exports

EU Couscous Market 2019 – France is the Undisputed Leader in Consumption, Production, and Imports

August 3rd, 2019 IndexBox Leave a comment

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

The revenue of the couscous market in the European Union amounted to $538M in 2018, approximately equating the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.2% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The pace of growth was the most pronounced in 2011 with an increase of 13% y-o-y. The level of couscous consumption peaked in 2018 and is likely to see steady growth in the near future.

Consumption By Country in the EU

France (143K tonnes) remains the largest couscous consuming country in the European Union, comprising approx. 43% of total consumption. Moreover, couscous consumption in France exceeded the figures recorded by the region’s second-largest consumer, Germany (53K tonnes), threefold. The third position in this ranking was occupied by Italy (25K tonnes), with a 7.5% share.

In France, couscous consumption remained relatively stable over the period from 2007-2018. In the other countries, the average annual rates were as follows: Germany (+7.7% per year) and Italy (+4.1% per year).

In value terms, France ($238M) led the market, alone. The second position in the ranking was occupied by the UK ($79M). It was followed by Germany.

In 2018, the highest levels of couscous per capita consumption was registered in France (2,198 kg per 1000 persons), followed by the Netherlands (690 kg per 1000 persons), Belgium (669 kg per 1000 persons) and Germany (640 kg per 1000 persons), while the world average per capita consumption of couscous was estimated at 654 kg per 1000 persons.

In France, couscous per capita consumption remained relatively stable over the period from 2007-2018. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: the Netherlands (+5.7% per year) and Belgium (+5.3% per year).

Market Forecast 2019-2025 in the EU

Driven by increasing demand for couscous in the European Union, the market is expected to continue an upward consumption trend over the next seven years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.1% for the seven-year period from 2018 to 2025, which is projected to bring the market volume to 361K tonnes by the end of 2025.

Production in the EU

In 2018, the amount of couscous produced in the European Union stood at 333K tonnes, growing by 3.6% against the previous year. The total output volume increased at an average annual rate of +2.8% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The pace of growth was the most pronounced in 2016 with an increase of 8.3% against the previous year. Over the period under review, couscous production attained its peak figure volume in 2018 and is expected to retain its growth in the near future.

In value terms, couscous production stood at $509M in 2018 estimated in export prices. The total output value increased at an average annual rate of +1.5% from 2007 to 2018; however, the trend pattern remained consistent, with only minor fluctuations in certain years. The pace of growth appeared the most rapid in 2011 with an increase of 9% against the previous year. The level of couscous production peaked in 2018 and is likely to continue its growth in the near future.

Production By Country in the EU

France (140K tonnes) remains the largest couscous producing country in the European Union, accounting for 42% of total production. Moreover, couscous production in France exceeded the figures recorded by the region’s second-largest producer, Italy (67K tonnes), twofold. The third position in this ranking was occupied by Germany (46K tonnes), with a 14% share.

In France, couscous production remained relatively stable over the period from 2007-2018. The remaining producing countries recorded the following average annual rates of production growth: Italy (+6.4% per year) and Germany (+6.8% per year).

Exports in the EU

The exports stood at 77K tonnes in 2018, lowering by -8.1% against the previous year. The total exports indicated a remarkable expansion from 2007 to 2018: its volume increased at an average annual rate of +4.0% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2010 with an increase of 18% against the previous year. The volume of exports peaked at 84K tonnes in 2017, and then declined slightly in the following year.

In value terms, couscous exports totaled $107M in 2018. The total export value increased at an average annual rate of +3.7% over the period from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2008 with an increase of 29% y-o-y. The level of exports peaked in 2018 and are expected to retain its growth in the near future.