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

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Archives, Global Logistics, Global Trade Daily

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

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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.

couscous
Archives, Global Trade Daily, Imports/Exports

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

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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.

Exports by Country

Italy represented the largest exporter of couscous in the European Union, with the volume of exports resulting at 44K tonnes, which was approx. 57% of total exports in 2018. It was distantly followed by France (23K tonnes), making up a 30% share of total exports. The following exporters – Belgium (2.8K tonnes), the UK (1.8K tonnes), the Netherlands (1.5K tonnes) and Germany (1.2K tonnes) – together made up 9.5% of total exports.

From 2007 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

In value terms, the largest couscous markets in the European Union were Italy ($47M), France ($39M) and Belgium ($6.1M), together accounting for 86% of total exports. These countries were followed by the UK, the Netherlands and Germany, which together accounted for a further 9.2%.

In terms of the main exporting countries, the Netherlands experienced the highest growth rate of exports, over the last eleven-year period, while the other leaders experienced more modest paces of growth.

Export Prices by Country

The couscous export price in the European Union stood at $1,381 per tonne in 2018, surging by 12% against the previous year. Over the period under review, the couscous export price, however, continues to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2008 an increase of 28% against the previous year. In that year, the export prices for couscous reached their peak level of $1,825 per tonne. From 2009 to 2018, the growth in terms of the export prices for couscous failed to regain its momentum.

Prices varied noticeably by the country of origin; the country with the highest price was Germany ($2,524 per tonne), while Italy ($1,058 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Imports in the EU

In 2018, couscous imports in the European Union amounted to 77K tonnes, reducing by -12.7% against the previous year. Overall, couscous imports, however, continue to indicate resilient growth. The most prominent rate of growth was recorded in 2013 with an increase of 19% against the previous year. Over the period under review, couscous imports attained their maximum at 89K tonnes in 2017, and then declined slightly in the following year.

In value terms, couscous imports stood at $106M in 2018. The total imports indicated a buoyant increase from 2007 to 2018: its value increased at an average annual rate of +5.9% over the last eleven years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2018 figures, couscous imports increased by +84.0% against 2010 indices. The pace of growth was the most pronounced in 2011 with an increase of 27% year-to-year. Over the period under review, couscous imports attained their peak figure at $108M in 2017, and then declined slightly in the following year.

Imports by Country

France was the key importer of couscous in the European Union, with the volume of imports reaching 26K tonnes, which was near 34% of total imports in 2018. It was distantly followed by the UK (11K tonnes), Belgium (8.7K tonnes), Germany (7.8K tonnes), Spain (5.1K tonnes) and the Netherlands (3.5K tonnes), together comprising a 47% share of total imports. The Czech Republic (2.8K tonnes) followed a long way behind the leaders.

From 2007 to 2018, average annual rates of growth with regard to couscous imports into France stood at +2.8%. At the same time, the Czech Republic (+17.9%), Germany (+14.8%), the UK (+8.9%), Spain (+6.6%), Belgium (+5.5%) and the Netherlands (+4.7%) displayed positive paces of growth. Moreover, the Czech Republic emerged as the fastest-growing importer in the European Union, with a CAGR of +17.9% from 2007-2018. While the share of the UK (+8.7 p.p.), France (+8.7 p.p.), Germany (+7.9 p.p.), Belgium (+5 p.p.), Spain (+3.3 p.p.), the Czech Republic (+3 p.p.) and the Netherlands (+1.8 p.p.) increased significantly, the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, France ($35M) constitutes the largest market for imported couscous in the European Union, comprising 33% of total couscous imports. The second position in the ranking was occupied by Belgium ($15M), with a 14% share of total imports. It was followed by the UK, with a 12% share.

In France, couscous imports increased at an average annual rate of +5.3% over the period from 2007-2018. The remaining importing countries recorded the following average annual rates of imports growth: Belgium (+6.0% per year) and the UK (+8.7% per year).

Import Prices by Country

In 2018, the couscous import price in the European Union amounted to $1,369 per tonne, rising by 13% against the previous year. Over the last eleven years, it increased at an average annual rate of +1.2%. The pace of growth was the most pronounced in 2008 when the import price increased by 30% y-o-y. In that year, the import prices for couscous reached their peak level of $1,572 per tonne. From 2009 to 2018, the growth in terms of the import prices for couscous remained 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 the Netherlands ($1,837 per tonne), while the Czech Republic ($1,109 per tonne) was amongst the lowest.

From 2007 to 2018, the most notable rate of growth in terms of prices was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Archives, Global Trade Daily, News

Crane Worldwide Logistics Welcomes Second CEO in Company History

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Crane Worldwide Logistics CEO Keith Winters enters his first month with the company, effective immediately following former CEO John Magee’s stepping down after 11 years with the global supply chain solutions provider. Mr. Magee served as the only CEO to-date for Crane Logistics prior to Mr. Winters’ appointment.

“I want to thank Jim Crane for the opportunity to build and lead Crane Worldwide. It has been an honor to work with so many exceptional people the past 11 years.”  says predecessor John Magee.

“Keith is also one of our founders, who has played an integral role in launching the company. With him moving into the CEO position, I am confident our clients will experience no impact to their day to day service needs.”

Mr. Winters is the second CEO in the company’s history and boasts over 20 years of experience in strategic leadership as a Crane family member. Winters served eight years as the Chief Operating Officer for Crane Worldwide in addition to serving two years as the CEO for Crane Capital Group affiliate, Davaco.

“Crane Worldwide has built our success as a result of our talented people and our unwavering commitment to client service. I am excited that our CEO successor has come internally as Keith exemplifies all of the great values we have built this company on,” stated Chairman Jim Crane.

“I am grateful for everything John Magee has accomplished in the role and personally thank him for his commitment as one of our company founders. I am confident the transition will be smooth  – our leadership team is solid, and we are looking forward to the future.”

“Crane Worldwide is a best in class global supply chain and logistics organization. I am honored to lead our team of over 1,800 employees into the next chapter of our growth and I look forward to working alongside our clients to continue to drive innovation within this industry.”
cold chain
Archives, Global Logistics, Global Trade Daily

Cold Chain Logistics Survey Reveals Biopharma Trends

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Global temperature-controlled packaging provider Peli BioThermal shared three key insights revealed in the latest survey conducted on opinion leaders within the biopharmaceutical industry. The company’s 2019 Biopharma Cold Chain Logistics Survey took a granular look at current trends, technologies, and operations among cold chain industry players and exactly how much these trends are impacting the supply chain.

Among the most surprising trends uncovered in the survey confirmed cold-chain excursions are more common than one might assume. A total of 41 percent of survey respondents reported having multiple temperature-controlled excursions exceeding four degrees. More than half of respondents confirmed shipping internationally, adding pressure to the increasing demand for transportation optionality and flexibility within climactic zones.

Additionally, increasing quality demands made the list. As cold chain logistics increase among shippers, risk increases as well. With close to half (44.6 percent) of companies revealing multiple excursions per year, temperature and location tracking is high on the list of concerns to ensure high volumes are handled accurately.

Source: Peli BioThermal

“As strong growth continues across the global pharmaceutical industry, the sub-category of temperature-controlled products is surging ahead — growing at twice the rate of the industry overall,” said David Williams, President of Peli BioThermal. “Our survey reveals what matters most to key biopharma leaders — and what it means for the future — as the industry deals with the rapid growth and complexity of temperature-controlled logistics.” 

Source: Peli BioThermal

Among the most common modes of transportation include air and ground with the option for sea and rail due to experience an increase among shippers, according to the survey.

Reusable containers garnered 79 percent respondent approval, adding that although pricier they are worth the investment and worth it over single-use containers. A total of 37.6 percent confirmed the implementation of reusable containers, with 25 percent currently vetting options.

The final piece of the results came from nearly 70 percent of respondents focusing on total cost of ownership (TCO) optimization as important. This consideration would primarily offset market pressures such as competition  and margin, but proactive measures in defining TCO have not gathered momentum just yet. Only 10 percent of respondents confirmed exploring basic packaging costs and rates. 

To read the full 2019 Biopharma Cold Chain Logistics Survey report, visit www.pelicanbiothermal.com/survey.

Archives, Global Trade Daily, News

Asendia to Utilize Tigers Logistics for Oceania Launch

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As expansion takes shape for Asendia, Tigers will maintain local logistics for the soon-to-be launched Asendia Oceania subsidiary throughout Australia. The international shipping and distribution company released information this week confirming Tigers is the provider of choice and will utilize its robust warehousing network to support efforts in B2C and omnichannel fulfillment.

“E-commerce fulfillment and international cross-border products continue to be a major focus for Tigers across the Asia-Pacific region, and builds on our cooperation across the USA into Europe, Russia, and Asia,” said Andrew Jillings, Chief Executive Officer, Tigers.

“Partnering with Asendia as it launches Asendia Oceania across Australia and New Zealand is an exciting moment that reflects Tigers’ ongoing global growth, and our support for the logistics and supply chain industry as it evolves through digitization and e-commerce.”

The companies announced the collaborative efforts will ultimately support increasing demand within the B2C cross-border e-commerce market, while focusing on strategies in supply chain optimizations in the near future. The Oceania launch is representative of Asendia’s global expansion plan and how the company will meet demand while offering fresh digital, logistics, and delivery services.

“The launch of Asendia Oceania is an exciting new milestone for Asendia in the Asia-Pacific region,” said Lionel Berthe, Head of Asia-Pacific, Asendia.

“It’s another sign of our commitment to growth in the region, and partnering with a global logistics player with strong capacities and experience in Australia such as Tigers is a key differentiator for cross border end-to-end services.“

Archives, Global Trade Daily, Top 3PLs

Global Trade Magazine Opens Nominations for the 7th Annual “Americas 50 Leading 3PLs”

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Global Trade Magazine has officially kicked-off its seventh annual “America’s Top 50 Leading 3PLs” nominations process, with the 2019 list scheduled to go live in the September/October issue. This year will feature the most competitive movers and shakers transforming domestic and international logistics by raising the bar higher while exceeding client expectations and maintaining an exemplary company profile and reputation.

Companies leading initiatives in specific industries will have the opportunity to showcase their expertise among a variety of categories including E-commerce/Omni-Channel, Temperature-Controlled, Innovation, Hazmat, Retail, and much more. Following last year’s focus on “needs-based” categories, the 2019 feature will spotlight specialty industries with the highest demand.

“It’s a measure of the quickly growing/changing/evolving global marketplace that arguably the most critical industry serving it, Third Party Logistic Providers (3PLs), continues to grow, change and evolve at a dizzying pace,” explained former senior editor Steve Lowery in the issue’s introduction.

“That evolution has been chronicled over the years in this, our annual Top 3PL issue, as we have written about such things as an increasing emphasis and reliance on technology, the constant march toward transparency and, most recently, the increasing pace of acquisitions and consolidations.”

Global Trade Magazine will determine the final 50 nominations based on industry reputation, outstanding operational excellence, game-changing initiatives, disruptive technology, and unmatched levels of innovation. This list not only showcases leading players, but also serves as a comprehensive list for manufacturers seeking new partnerships and opportunities.

“It is easy to say that one must move faster, deliver services quicker, be more innovative and have an organizational agility to flex with the world, but it takes something quite different to lead the cultural transformation that is required to make these goals a reality,” said Rich Bolte, CEO of BDP.

“Leadership will have to change as well. Leaders will be measured by their ability to innovate and create potential disruptions. The old paradigm of measuring only performance and execution has changed.”

Nominations are currently open and will be accepted through August 15 at 5 p.m. CST.

To see a complete list of recipients, please visit www.globaltrademag.com and view the current issue.         

Air Cargo, Archives, Global Trade Daily

Uncertainty in Today’s Air Market: What it Means for You

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Reoccurring annual events, like the holiday season, typically bring predictability to air shipping. But lately, out of the ordinary events have disrupted the seasonality we typically expect. The best way to deal with the ever-changing peaks and valleys in air capacity throughout the year is to know both the historical patterns and potential air market disruptors.

The cyclical nature of air freight

Air freight service predictably follows the law of supply and demand. When shipping volumes spike, space on airlines becomes harder to secure and prices go up. And the opposite is true, too. If shipping volumes diminish, space on airlines becomes readily available and the prices go down.

As you might expect, the holiday peak season is one of the busiest shipping periods of the year around the world—including for air. But there are other seasonal surges to be aware of as well. The graphic below visually represents the seasonality of the air market in years’ past.

New disruptors to the air freight market

We’re just over halfway through 2019, and already it’s quite a different market than we’ve seen in the past. Several disruptors are causing a great deal of uncertainty.

Tariffs on Chinese goods

The ongoing trade war is one of the biggest disruptors to air shipping this year. Earlier tariff changes did not make a huge impact on air shipping. But demand for air freight shifted significantly when enough shippers preemptively repositioned inventory prior to the June 1, 2019, deadline. On May 31, 2019, the United States Trade Representative (USTR) announced the deadline would be extended to June 15, 2019.

Ecommerce and high-tech goods

With the growth of ecommerce and high-tech products flooding our markets, air freight is quickly becoming the go-to mode of transportation for many shippers—any time of year. Combined with the promise of two-day shipping, it’s often the only way to meet customer demands.

Adjust your air freight strategy based on the market

With air freight volumes lower than we’ve seen since the 2008 recession, now may be the ideal time to update your air freight shipping strategy.

Choosing air freight can be a strategic way to lower inventory levels in the United States. Finding a balance between inventory costs without sacrificing customer delivery expectations often requires expertise. The air experts at C.H. Robinson are available in offices around the globe to help manage your air freight and ensure any problems are resolved in real-time.

You may even consider that if air freight rates dip low enough, you could make up the difference (at least in part) of the added tariffs on Chinese goods.

The air freight market is a complex ecosystem that will likely remain uncertain for some time. While this uncertainty lasts, you may want to switch to a quarterly planning strategy to avoid a long-term commitment when you don’t know what’s coming.

What’s going to happen?

While inventories in the United States remain high, it’s likely that air shipping volumes will remain low. The best way to insulate your company and your relationships from today’s air market is to stay flexible. Adapt quickly to ensure you can take advantage of soft markets while still buying appropriately during peak seasons.

Archives, Executive Education, Global Trade Daily

Beyond the Books: 5 Business Schools Preparing Students for Career Success

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It’s no secret logistics and supply chain management-focused education is gaining traction each year among students. In fact, Data USA reports that in 2016, nearly 7,669 degrees were awarded in Logistics, Materials and Supply Chain Management. The report, which projects that number will be growing by 15.2 percent, also confirmed that a whopping 10.9 million people make up the current workforce and will continue growing by 3.53 percent.


Earning a robust education is essential, but a bigger question remains on the minds of leaders in the industry: How are students being prepared to enter the workforce and more importantly, which business schools are integrating talent acquisition and recruiting strategies within these focused programs?

Among the most debated and challenging topics discussed among today’s supply chain leaders is talent acquisition and retention It goes without saying this challenge is not industry biased. Global Trade compared and took a deeper look at the nation’s competing business schools that not only prepare students for the big world of logistics, but how to navigate it for career success. While some programs tackle the issue at a larger scale, others take a niche-like approach, focusing on a specific demographic for a bigger impact on a global level.

University of Tennessee-Knoxville’s Haslam College of Business NeXxus Program

Talent acquisition is more recently experiencing a new trend in the talent pool: female representation. Women continue to make their marks in the supply chain and logistics industries, with more assuming leadership positions than ever before. Such companies as DSC Logistics, Lynn Co. Supply Chain Solutions and Dachser Logistics are among major industry players with females leading initiatives and representing diversity in the workforce. Dachser, for example, recently reported that females make up 56 percent of their total workforce.

The NeXxus Program at the Haslam College of Business places the female student population at the top of its list with a focused networking pool that fosters diversity and opportunity both in the school and workforce. NeXxus focuses on five key areas specifically for developing its female students: Networking, Mentoring, Confidence Building,  Community Development and Talent Attraction. The program combines the elements of workshops, guest speakers, social events and meetings to support development. Additionally, the annual NeXxus Summit aims to educate female high school students on company opportunities through networking with leading industry professionals.

Rutgers Business School’s Supply Chain Education Partnership Program

The Supply Chain Education Partnership Program at Rutgers reiterates the importance of educating young, prospective talent at an early age. The program, which was specifically designed with high school students in mind, ties in real-world experiences to spotlight how the industry impacts almost every aspect of the business world. Fostering the idea of “nurturing talent in our own backyard,” the week-long program challenges students to develop innovative solutions and strategic planning.

Students—who are addressed by professors and industry leaders speaking on global  procurement, logistics, transportation, planning and fulfillment and more—are encouraged to demonstrate strategic thinking via team exercises that require them to apply fresh knowledge of the industry to solve. The program also includes an entire day dedicated to exploring a company on site. Career management specialists are also prepared to educate prospective Rutgers students on what it takes in the real world to stand out.

Syracuse University Martin J. Whitman School of Management’s Goodman IMPRESS program

Established in 1919, the Martin J. Whitman School of Management offers a competitive and unique program that separates itself through polishing students for career excellence and developing essential soft skills. The Goodman IMPRESS program aims to align student’s skills with what leading companies consider to be the most competitive, including agility, resilience and confidence. Through this approach, students are prepared to engage in the competitive market while understanding the generational impact on a variety of industries.


Students are challenged to participate in activities throughout the program to earn points that will eventually be visible to prospective employers. This points system consists of leadership workshops, roundtables with visiting speakers, bonding exercises, competitions, community engagement and certifications. A cumulative IMPRESS score is placed next to the student GPA on student resumes, adding more value to the student when competing for jobs.

University of North Texas G. Brint Ryan College of Business Logistics Student Onboarding Program

Known for its world-class faculty, UNT paves the way for student success beyond the books through its Logistics Student Onboarding Program at the request of Logistics Center Board of Directors members. The program is going on its sixth year addressing topics ranging from dressing for success and communication skills to generation gaps and analyses presentations. Companies like GIX Logistics bring their top leaders in to engage students through in-depth sessions focusing on company culture, interview tips, negotiating job offers and more.

Students are incentivized with a Logistics Onboarding certificate upon completing attendance to four sessions, adding more value and knowledge to their resumes. Mentoring is also provided for both formal and informal career-focused decisions to ensure students have a clear understanding of how to determine the most successful career path.

Ohio State University Fisher College of Business Pathways for Women’s Excellence in Supply Chain Program

Female representation takes the spotlight once again through the Pathways for Women’s Excellence in Supply Chain Program. Aiming to prepare and introduce female undergraduates to leading roles within the supply-chain sector, the program is part scholarship, part experiential engagement exercise as students receive top-notch mentoring from leading executives while bridging the gap of gender diversity at the C-suite level.

By addressing the gender differences at the executive level, the Pathways Program contributes to the overall talent gap. This unique strategy takes the issue of talent recruitment on a larger scale through equipping the female student population to take their career to the next level without limitations.

global logistics
Archives, Global Logistics, Global Trade Daily

Smart Logistics: Catalysts Changing the Logistics Sector

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The logistics industry is watching closely as United States and China negotiate to resolve their trade war amidst the threat of higher tariffs starting March 1. At stake is $635 billion in annual trade – China exports $505 billion and imports $130 billion with the US[i]. These negotiations have repercussions for the global economy well beyond the US and China. Many industries engage vast trade networks that span myriad countries leaving few markets or nations exempt from these talks. For the US alone, which imports $2.3 trillion and exports $1.5 trillion annually[ii], its entire trade regime is now in play.

Countries are not alone in broiling trade disputes. This month XPO issued a profit warning citing the expected loss of $600M[iii], or 3.5%, of revenue from an unnamed customer. Amazon, widely believed to be XPO’s unidentified customer, is expanding its own logistics capacity. The expansion of e-commerce has been a boon for the logistics industry and bane for traditional retailers. Now as Amazon develops its own distribution capability, logistics providers and retailers alike are threatened. 

Global Logistics – an Industry in Transition

Ecommerce has been a key growth driver for the global logistics industry, which is expected to grow 7.5% annually from $8.1 trillion in 2015 to $15.5 trillion in 2023[iv]. The logistics of delivering directly to consumers is far more intensive than distributing in bulk to big box retailers. Long haul full truckload remains the largest market segment in logistics with a 70% share, yet less than truckload, parcel and intermodal – which together comprise 15% share of the logistics market – are fastest growing. 

The politics of logistics extends beyond trade disputes. US freight employs over three million truck drivers. As the graph below indicates, trucking is the largest employer in 29 of 50 states across the US. The American Trucking Association estimates a need for an additional 900,000 truckers[v] over the next ten years to keep up with demand. The industry already faces a shortage of over 50,000 drivers[vi]amidst the need to replace an aging workforce: 57% of US truckers are over 45 years old and 37% are over 55[vii]. Given the backlash over Amazon’s recent pullback of a second headquarters in New York City for 25,000 jobs[viii], one might imagine the political stakes involved with four million truck drivers across the US in the coming decade. 

Logistics – a Magnet for Venture Capital Investment

Venture capital has poured into the logistics sector in recent years. In 2018, global venture investment in logistics reached nearly $14 billion, more than the three previous years combined. Funding for supply chain, logistics and shipping businesses continues to grow in 2019. In February alone, investors have committed over $5 billion to the logistics sector. Major financings include a $1 billion investment in Flexport for intermodal logistics, $940 million in Nuro for its self-driving delivery vans, $700 million in Rivian for electric delivery vehicles, $400 million in DoorDash for local food delivery, and $300 million in Hong Kong-based Lalamove for last mile delivery. 

Five catalysts are driving innovation and investment in the logistics sector:

Ecommerce: Online retail continues to cannibalize physical retail. Ecommerce in the US reached 9.8% of total US retail in 2018, nearly triple the share of retail ten years earlier[ix]. Ecommerce is growing even faster in Asia, Europe and the Middle East. Traditional retailers are embracing omnichannel marketing as ecommerce extends to more retailing categories. The physical landscape will change dramatically in the decade as ecommerce players build more warehousing capacity replacing stores due to overcapacity in the traditional retail sector.

Crowdsourcing: Much as Uber, Lyft and Didi among others have disrupted the taxi industry through crowdsourced drivers, the gig economy is infiltrating the logistics sector enabling new services. Consumers are the biggest beneficiary through the rise of the concierge economy. Crowdsourcing has lowered delivery costs making home deliveries available for a broader range of items. Food delivery has received most funding with the rise of Uber Eats globally, Doordash and Postmates in the US, Just Eat and Deliveroo in Europe, Swiggy in India, and Meituan in China.  

Intelligent Automation: The securities brokerage industry has gone digital in the past two decades. The logistics brokerage industry still runs on phone calls and fax machines with limited price transparency and inefficiencies borne by limited supply chain visibility. Digital brokerage is now coming to the logistics sector through the confluence of sensors, cloud and intelligent automation. ELD and camera technology now monitor drivers reducing wait times, reducing accident risk, and helping to adjudicate cases when accidents occur. Venture backed companies that have raised $100 million or more in the US alone include Convoy, Flexport, Nauto, Next Trucking and Transfix, amongst others.

Electric Vehicles: The prospect of replacing diesel trucks is as welcome as replacing gas vehicles in the consumer sector. Tesla is now tackling the challenges of transporting large trucking payloads. Others are as well including the recently funded Rivian Automotive and Thor Trucks.

Autonomous Technology: End-to-end autonomous trucking may still be decades away yet the use of autonomous technology in logistics is already live in the warehouse with pilots underway for first and last mile as well as interstate long-haul deliveries. Autonomous delivery startups announced over $1.5 billion in February alone, including Endeavor Robotics, Ike and Nuro in the US and AutoAI, Mogu Zhixing and TuSimple in China. 

Logistics is a vast sector ripe for innovation across the supply chain.  Entrepreneurs and investors have flocked to logistics seeking to disrupt an industry representing over 5% of the US economy. While investment in logistics has increased substantially, funding has focused on major sectors. We believe many opportunities remain for further innovation across the supply chain as new technologies such as robotics, autonomous vehicles and machine learning develop for the logistics sector.    

[i] Stifel analyst report

[ii] Stifel analyst report

[iii] https://www.thestreet.com/investing/xpo-plummets-on-earnings-miss-and-warning-about-2019-14868169

[iv] https://www.prnewswire.com/news-releases/global-logistics-market-to-reach-us155-trillion-by-2023-research-report-published-by-transparency-market-research-597595561.html. 

[v] May 2018 Techcrunch article

[vi] May 2018 Techcrunch article

[vii] Stifel analyst report

[viii] https://www.nytimes.com/2019/02/14/opinion/amazon-new-york.html

[ix] https://ycharts.com/indicators/ecommerce_sales_as_percent_retail_sales


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Locus Announces $22 million in Series B Funding Secured

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AI-backed supply chain and logistics solutions company, Locus announced
Falcon Edge Capital, Tiger Global Management, Exfinity Venture Partners and Blume Ventures contributed to $22 million in funding towards enhancements of AI-focused solutions and expansion of teams in North America and Southeast Asia.

“Locus provides autonomous supply chain optimization, thus minimizing the dependency on human intelligence, built by an incredible team of PhDs and Engineers,” said Locus CEO Nishith Rastogi said. “Product applications include clubbing of forward and reverse logistics in a single route plan, schedule and on-demand dispatch planning, and automatic escalation management.

“Locus is on an unprecedented path to automate every possible decision in the supply chain. The funding will act as a boost to our global expansion efforts as we amplify our team size specifically in North America and continue to build our IP.”

Locus has established itself as a premier provider of AI-backed logistics and supply chain solutions in India following successful customer roll-outs. Additionally, one of the region’s largest e-grocers employs Locus to meet
99.5% SLA adherence for more than 10 million customers. Among its solutions portfolio, customers can find route optimization, real-time order tracking, insights and analytics, dynamic sales journey plans, and automated shipment sorting. 

“We believe the trillion-dollar global logistics market is ripe for disruption via technological change, particularly AI and machine learning-driven solutions,” said Navroz D. Udwadia, Co-Founder, Falcon Edge Capital. “We are excited to lead a Series B round in Locus, a company that deploys AI/ML/deep tech to drive route optimization outcomes in global logistics markets.”

“With Hindustan Unilever, Blue Dart and other prolific anchor customers, the team has demonstrated the ability to build and deliver cutting-edge technology and algorithmic-driven outcomes that provide attributable ROI to the enterprise at scale. We are excited to help Locus expand its breadth and depth of product and sales reach, moving from route optimization to a full-stack SaaS offering to the enterprise around its logistics needs.”

Source: Locus