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The UK Ramps Up Imports of Stuffed Pasta and Couscous

pasta imports
Archives, Global Trade Daily, News

The UK Ramps Up Imports of Stuffed Pasta and Couscous

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

UK imports of stuffed pasta and couscous grew by +15.8% y-o-y to $525M last year. Italy, China and France provide approximately 77% of the total volume imported into the UK. All these countries have significantly expanded their exports of stuffed pasta and couscous to the UK. Germany emerged as the fastest-growing supplier in terms of import value in 2020.

UK Imports of Stuffed Pasta and Couscous

In 2020, approx. 316K tonnes of stuffed pasta and couscous were imported into the UK, growing by +16% on the previous year. In value terms, pasta and couscous imports soared by +15.8% y-o-y to $525M (IndexBox estimates) in 2020.

In 2020, Italy (209K tonnes) constituted the largest supplier of pasta and couscous to the UK, with a 66% share of total imports. Moreover, pasta and couscous imports from Italy exceeded the figures recorded by the second-largest supplier, China (22K tonnes), tenfold. France (14K tonnes) ranked third in terms of total imports with a 4.3% share.

In value terms, Italy ($266M) constituted the largest supplier of pasta and couscous to the UK, comprising 51% of total imports. The second position in the ranking was occupied by China ($42M), with an 8% share of total imports, and it was followed by Germany, with a 7.7% share.

In 2020, the average annual growth rate of value from Italy totalled +18.6%. The remaining supplying countries recorded the following average annual rates of imports growth: China (+7.0% per year) and Germany (+23.0% per year). Germany emerged as the fastest-growing exporter of stuffed pasta and couscous to the UK.

In 2020, the average pasta and couscous import price amounted to $1,664 per tonne, therefore, remained relatively stable against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was South Korea ($3,819 per tonne), while the price for Italy ($1,271 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Germany, while the prices for the other significant suppliers experienced more modest paces of growth.

Source: IndexBox Platform

inventory
Archives, Global Logistics, Global Trade Daily, Warehousing

Top 3 Performance Indicators to have in an Effective VMI

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To ensure effective inventory management, a supplier must have quality Vendor Managed Inventory (VMI). But how do you evaluate such software before purchasing and implementing it? What metrics should you look for?

Inventory Management

In a buyer/supplier relationship, the retailer and vendor are often jointly involved in inventory management, an approach called collaborative supply management. In the context of VMI (Vendor Managed Inventory), the delivery of goods to warehouses and stores is the vendor’s responsibility – they are required to deliver goods based on customer needs.

To successfully manage supply operations and ensure good processing speed, suppliers must keep track of their inventory levels. By getting up-to-date data on stock levels in warehouses and stores, suppliers can cover demand for goods and prevent costs and shortages.

The objective/goal: To have the right amount of goods at the right time, thanks to an adequate assessment of needs.

Demand Forecasting

For the most accurate supply management, suppliers make their forecasts based on the preliminary trends that VMI generates. To improve efficiency, the management tool should quickly and easily forecast demand. Additionally, the tool should provide the ability to check the reliability of the forecast at the end of the cycle (day, week, month) to assess future supplier needs.

For example, the software has predicted that customers will have demand for 200 security lockboxes. At the end of the cycle, we should be able to verify that all of the predicted items have been sold.

The objective/goal: Make the necessary changes in the next delivery cycle so that we don’t have to rely on chance.

Service Rate

Typically, retailers use a collaborative inventory management model when they intend to achieve an optimal service rate.

The objective/goal: no shortages and always meet store demands.

By sharing inventory management responsibilities, retailers aim to meet store demands while reducing inventory. Therefore, to optimize service rates, suppliers must be prepared to ship items coming in from different delivery points every day.

In a vendor-controlled supply chain model, a quality VMI solution is a key element in ensuring effective collaboration between all parties in the relationship. Only with fine-tuned inventory management and reliable demand forecasting is it possible to achieve optimal service rates. Which is simply necessary to build a successful vendor-implemented inventory management model.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

This article originally appeared here. Republished with permission. 

e-Commerce: Last mile delivery india profit 8fig amazon logistics
Archives, Global Logistics, Global Trade Daily, Warehousing

7 Little Things to Improve an eCommerce Business

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An eCommerce business is more dependent upon the goodwill of its clientele than brick-and-mortar stores. It is very simple really. In an average real-world store, once a customer walks in they are more likely to purchase something. After all, they have made the effort of reaching the store and checking the products. Few people walk out of a physical store empty-handed. However, the same does not apply to an eCommerce outlet since they can simply close the link and go to another site.

Here is what you can do to make sure that this doesn’t happen frequently.

1. Downtime is off time

One of the best things about an eCommerce site is that it’s always available,  24/7. Now that more and more people are logging on to the net to buy products, you can take advantage of it by selling your wares even when you are fast asleep. However, that won’t happen if unfortunately, your site crashes repeatedly. If the site is offline, it is likely that your target audience won’t wait and simply move on to another site.

2. Slow sites don’t get many customers

The average attention span of an online buyer is around 3-4 seconds. If the site doesn’t open fast enough, it is likely your customers will simply move on in search of other options. And why not? After all, there are millions of other online eCommerce outlets out there. If you want your customer to stay with you, make sure your site is as fast as possible.

3. Make sure the CTA is always accessible

Why should your customers come to you instead of your competitors? It is because of your CTA. This is basically the ‘call to action’ that attracts people into the web marketing tunnel. If this call to action is not available or accessible, you will lose out on a lot of customers. Your shopping cart should also be easy to see so that the customer knows how to buy the product.

4. Get rid of slow-selling products

In every store, there are products that sell fast and those that don’t. Concentrate on the former and eliminate the latter entirely from your store. They will stop your cash flows and over the course of time, bring down your business. Of course, you don’t have to throw them away. You can offer them at a real sale (as opposed to one where retailers inflate prices and then cut them down to give an impression that they are on sale). Once the customers see that you are offering a brief opportunity to add real value to their lives, they will buy your slow-moving products and help you clean your shelves. This way, you will also be able to get your cash flows moving.

5. Make sure your site is mobile-friendly

The number of people shopping with their smartphones has increased dramatically in recent months, and there is no sign that the trend will be slowing down anytime soon. In fact, 79% of smartphone users have made an online purchase using this mode within the last six months! This means a site that is not mobile-friendly will lose all of that vast potential market. It is absolutely imperative that your site should be mobile-friendly so it can be easy to see even on a small screen. Apart from that, you should also work on your SEO (search engine optimization) techniques so your site will show up on organic searches on the search engines.

6. Add a live chat option

Live chats will help to gently nudge your customers towards the purchase decision by answering all of their questions. It is a great way to boost your conversion rates and keep your target market happy. Even if they don’t buy the product, the speed and excellence of your response will make them come again. At the very least, they will bookmark your site.

7. Consider using residential proxies

Using residential proxies for market research will give you great insight into the buying habits of your target audience. At the same time, they will allow you to remain incognito.

If you are really interested in increasing your sales and improving your eCommerce business, you must make sure there is no downtime or latency on your site. You should also use residential proxies to help you with your market research with regard to your target audience.

rug imports
Archives, Global Trade Daily, News

Turkey, India and Vietnam Benefit from Rising American Carpet and Rug Imports

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IndexBox has just published a new report: ‘U.S. Carpet And Rug Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

Last year, the U.S. ramped up imports of carpets and rugs by +11% to 796K tonnes. In value terms, imports reached $2.9B. Turkish, Indian and Chinese supplies comprise approximately 79% of American carpet and rug imports. In 2020, most of the import increment was provided by boosting purchases from Turkey, India, Egypt and Vietnam. Vietnam became the fastest-growing exporter of carpets and rugs to the U.S.

American Carpet and Rug Imports by Country

In 2020, carpet and rug imports into the U.S. expanded rapidly to 796K tonnes, surging by +11% compared with 2019 figures. In value terms, carpet and rug imports rose by +1.9% y-o-y to $2.9B (IndexBox estimates) in 2020.

Turkey (275K tonnes), India (224K tonnes) and China (127K tonnes) were the main suppliers of carpets and rugs to the U.S., together accounting for 79% of total imports. Egypt, Vietnam, Canada and Mexico lagged somewhat behind, together comprising a further 14%.

In 2020, supplies from Turkey (+71K tonnes), India (+15K tonnes), Egypt (+10K tonnes) and Vietnam (+20K tonnes) increased significantly. Vietnam recorded the highest growth rate of the volume of imports, expanding supplies to the U.S. from 12K tonnes to 32K tonnes last year.

In value terms, India ($904M), Turkey ($899M) and China ($377M) were the largest carpet and rug suppliers to the U.S., with a combined 75% share of total imports. These countries were followed by Egypt, Vietnam, Mexico and Canada, which together accounted for a further 12%.

Source: IndexBox Platform

telematics
Archives, Global Trade Daily, Software

What Contractors Need to Consider When Purchasing Equipment Telematics

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Telematics can be an invaluable tool for contractors who want to track and monitor key assets more effectively, like heavy equipment and vehicles. The rise of smart technology and other Industry 4.0 tech has made these systems more accessible and powerful, encouraging contractors to invest.

However, implementing telematics can be costly and time-consuming, and not every system will provide the specific benefits a fleet owner or logistics professional needs. Knowledge of these factors will help any contractor make more informed decisions when purchasing telematics for heavy equipment.

Feature Considerations

System features are one of the most important factors for contractors wanting to purchase telematics equipment. Not all providers offer the same options, and pricing for equipment and devices can vary significantly depending on what a particular contractor needs.

More complex telematics systems can also be more expensive to purchase and maintain. If a contractor just needs the ability to track assets in real-time, functionality beyond GPS- or RFID-based tracking may make the system more expensive while not providing much additional value.

These are some of the most common telematics systems and the ones a contractor is most likely to need:

1. Real-time location tracking: Most systems offer GPS-based tracking that allows fleet managers to monitor the location of assets in real-time.

2. Alerts: Automatic notices trigger when customizable conditions are met — like assets moving after work hours or faster than local speed limits or scheduled maintenance alerts.

3. Asset and driver data reports: In addition to real-time reporting, most systems will also offer reports or dashboards that sum up recent events and patterns of usage. Contractors can use this information to track driver behavior, asset performance or machine health.

4. Asset diagnostics: Telematics systems can integrate directly with important vehicle or asset systems like engine control units (ECUs), providing them with access to data from sensors and monitoring devices. This allows the system to provide important information on vehicle health and performance to system owners — alerting them automatically when faults are detected or maintenance is needed.

5. Customer service: Dedicated customer support lines provide assistance with telematics system operation, troubleshooting and maintenance scheduling.

The specific data points that asset telematics will track can vary from system to system. Providers may offer monitoring for a wide range of data, including information on seatbelt usage, emissions, dashcam footage, fuel consumption, fuel efficiency, idling and performance.

Selecting a telematics system that offers the features a contractor needs will help them avoid overspending or selecting one that isn’t a good fit.

Contractors should also consider synergy and integration with existing technology. A business that takes advantage of IoT monitoring may want to investigate how the two systems could share data or be configured to supply information to the same dashboard.

Businesses that take advantage of digital twins may want to investigate how additional data provided by telematics may allow them to more accurately model construction sites, buildings or business operations.

Purchasing vs. Renting Telematics for Fleet Management

Often, telematics providers offer the option to either purchase or rent the equipment. While buying a system comes with some advantages — permanent ownership of the hardware and more control over telematics maintenance — renting may be a better option for some contractors.

As with construction equipment, renting can be an effective way to close asset gaps that emerge when systems fail, require maintenance or need replacement.

Suppose a rented telematics device stops working or needs maintenance. In that case, a contractor may be able to more easily procure a replacement or even request one from their provider while the rented equipment is being repaired.

Professional vs. Self-Installation

If a contractor isn’t purchasing new equipment with telematics systems that come pre-installed, they, their team or a third party will have to connect it to each asset they want to track.

This installation process can be involved and time-consuming. Any mistakes the contractor makes can negatively impact the telematics system’s performance or damage components.

Also, the asset in which the telematics system is being installed will be unavailable during this time. Troubleshooting can cause it to be unavailable for longer.

Professional installation is generally less risky but will be more expensive. The cost will typically depend on the system’s complexity, the number of vehicles or assets, and the contractor’s location — installation service rates can fluctuate significantly from region to region.

As with self-installation, the contractor will also need to prepare for significant downtime and loss of productivity while the system is installed.

A professional installer can likely work faster than someone without telematics experience, but all installations will take time.

Equipment Telematics System Security

The growing threat of cybercrime means contractors should also consider how telematics may make their businesses less safe. These systems generate so much data and are typically connected with other essential components, making the overall network more challenging to secure.

Contractors should consider how they’ll keep their telematics secure and how their provider addresses safety issues.

When shopping for a new telematics system, contractors should ask about the importance of security in the provider’s design process. They should also ask about how data is kept safe at the device firmware level, while it’s in transit and when it’s stored in the cloud.

Contractors should also ask about the steps they can take to keep their telematics systems and business networks secure. Providers may be able to help end-users configure them in a way that protects these systems from an attack.

Keep These Considerations in Mind When Buying Telematics

The potential benefits of a telematics system make the technology a good investment for contractors. However, not every one is the same. Varying features and payment options mean companies should carefully consider available offerings.

Contractors wanting the simplest and cheapest system should consider a rented telematics solution that primarily offers GPS tracking. Businesses in need of analytics, behavior tracking and other complex solutions may need more expensive systems. Researching needs and options before investing in telematics will ensure the system is the right choice.

AntwerpXL
Archives, Executive Education, Global Trade Daily, News

AntwerpXL 2021 Conference Program Unveiled!

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 The conference program for AntwerpXL, the award-winning breakbulk, roro, and project cargo event, has been unveiled.

The conference, which will take place on the last two days of the show (8 and 9 December), will give delegates a unique depth of insight from the industry’s best and brightest exploring the global trends, challenges and opportunities that will shape the industry’s future.

Day one will open with a networking breakfast hosted by Flows, offering delegates an opportunity to connect and chat with some of the biggest names in the industry.

Following that, a session on digitalization will cover the digital platforms of the present and near-future, acquiring and integrating new digital tech, and the impact of digital on the industry. This will feature Karel Van den Berghe, CEO of GLOBIS Software, Steven Schutter, Marketing Manager of NxtPort and Valentin Carlan of the University of Antwerp, and will be moderated by Peter Bouwhuis, President and CEO of XELLZ Group.

The afternoon sessions will kick off with a talk from David Kershaw, Editor of Heavy Lift & Project Forwarding International, on recruitment and developing a recruiter brand in a time when the battle for talent is very real. Following this will be an in-depth innovation exploration from Arjun Haring, Researcher at the Jheronimus Academy of Data Science, and a talk from Robin van Emden, AI Researcher at SPEED, on AI and its applications in the breakbulk industry.

Closing day one will be a session on connections, rail and barge, led by Katarina Stancova, Senior Mobility Advisor at the Port of Antwerp and featuring experts including Peter Larose, Head of Projects at Conti7.

Day two will begin with a forecasting session on managing the needs of breakbulk and project cargo shippers in a multipurpose shipping market, delivered by Kyriacos Panayides, Managing Director of AAL Shipping, and featuring experts including Dominik Stehle, COO of United Heavy Lift.

Next up is a session on sustainability and future fuels moderated by Matthew Moss, Head of Maritime at KTN, with Wim Dillen, International Development Manager at Port of Antwerp, Maja Felicia Bendtsen, Chief Business Officer Bulk at Port of Roenne, and Margaret Dunn, Editor of Tank Storage Magazine.

Lunch will be hosted by Christa Sys from the University of Antwerp and Philippe Fierens, Managing Director of ExSeCo Belgium who will be joined by the AntwerpXL 40 Under 40 – the breakbulk industry’s most promising professionals under the age of 40 – to discuss how we can attract the next generation of breakbulk professionals to the industry.

The conference will close with a forward-looking panel on challenges and opportunities moderated by Andrew Dawes, CEO of Arise Ports and Logistics. This will include Bert Biermans, Manager Projects at Sotramar & De Keyser, Albert-Jan Ars, Commercial Manager of Katoen Natie Port Operations, and Catrien Scheers, Ambassador of Fast Lines.

Rikki Bhachu, Head of Marketing at AntwerpXL, says “This conference program brings together all of the best minds within the breakbulk industry for two days of in-depth discussions about its future. This is an opportunity for delegates and exhibitors to gain some insight, and share their thoughts, knowledge and ideas with the best in the business. You really don’t want to miss this!”

The full details of the conference program can be found online on the AntwerpXL website: www.antwerpxl.com.

__________________________________________________________________

About AntwerpXL

AntwerpXL is a three-day exhibition and conference for the breakbulk and heavy lift industry. Industry leaders will meet to stay ahead of the competition, network and gain new business at the Antwerp Expo in Antwerp, Belgium on 7 – 9 December 2021. Find out more at www.antwerpxl.com.

About Easyfairs

Easyfairs organises and hosts live events, bringing communities together to visit the future.

The company currently organises 200 events in 14 countries (Algeria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom) and manages 10 event venues in Belgium, the Netherlands and Sweden (Antwerp, Ghent, Mechelen-Brussels North, Namur, Gorinchem, Hardenberg, Venray, Gothenburg, Malmö and Stockholm).

Easyfairs employs more than 750 people and generated revenues exceeding €166 million for its financial year 2018-2019.

Easyfairs strives to be the most adaptable, agile and effective player in the events industry by employing committed individuals, deploying the best marketing and technology tools and developing strong brands.

In 2018 Easyfairs was named Belgium’s “Entrepreneur of the Year®” and earned recognition as a Deloitte “Best Managed Company” and a “Great Place to Work”.  For the second year running, Deloitte has conferred “Best Managed Company” status on Easyfairs in 2020 and also saw AntwerpXL win “Best Event Launch” at the AEO awards.

The company is ranked 17th in the list of the world’s leading exhibition companies.

Visit the future with Easyfairs and find out more on www.easyfairsgroup.com.

For further information, please contact:

Rikki Bhachu, Head of Marketing, Easyfairs

Rikki.bhachu@easyfairs.com

+44 (0)20 3196 4282

 

Catherine Chin, Marketing Manager, Easyfairs

Catherine.chin@easyfairs.com

+44 (0)20 3196 4396

financial
Archives, Banking, Global Trade Daily, International Trade

How Executives Can Increase Their Company’s Financial Efficiency

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As the world becomes increasingly interconnected, opportunities for logistic companies expand. While this is good news, it also means competition within the industry is rising. If supply chain businesses want to stand out from competitors, they must increase their financial efficiency.

Many investors and potential business partners use financial efficiency metrics to determine a company’s economic health. Consequently, financially inefficient businesses may miss out on valuable strategic opportunities. Partnerships and investment aside, an efficient company is a more successful one.

Here are seven ways executives can increase their company’s financial efficiency to attain these benefits.

Automate Back-Office Tasks

Most businesses have repetitive, manual tasks that take time away from more valuable work. According to one study, more than 40% of workers spend at least 25% of their time on these tasks. Since these inefficiencies are so common and so impactful, automation can bring considerable rewards.

Many of these inefficiencies are in back-office operations like data entry, scheduling, and approvals. These tasks are also easily automatable through robotic process automation (RPA) solutions. By implementing these tools, companies can free their employees to focus on other, more important work, accomplishing these goals sooner.

RPA is also often faster than humans at these repetitive tasks. As a result, companies will improve the efficiency of these back-office processes as well as the more valuable manual operations.

Increase Fleet Visibility

Another common source of financial inefficiency in logistics companies is a lack of visibility. Fleet operations are prone to disruption, and when businesses can’t predict or see them as they unfold, these disruptions can have far-reaching consequences. In contrast, increasing visibility can help respond to developing situations faster, minimizing delays and costs.

Many companies now track fleets with GPS systems, but businesses can go further, too. Internet of Things (IoT) sensors can monitor and communicate data like location, driving patterns, maintenance info, and product quality in real-time. With this timely information, fleet managers can see issues as they arise, leading to quicker, more effective responses.

Faster reactions lead to better customer service, less disruption, and sometimes avoiding serious delays entirely. Businesses’ financial efficiency will rise as a result.

Address Accounts Receivable

Accounts receivable turnover is one of the most popular metrics for financial efficiency, so businesses should strive to collect debts as quickly as possible. In the delay-heavy and prone-to-disruption world of logistics, that can be complicated. However, a few options can help.

One way to improve this ratio is to provide multiple payment methods for clients. This allows customers to use whatever best suits their needs, leading to quicker reactions from them. Similarly, payments will be faster when customers can use a process they’re already familiar with.

Another way to improve accounts receivable turnover ratios is to employ automation. Automated billing, reminders, and processing services are abundant today and can streamline the process for both companies and their clients. Employing these solutions while providing multiple payment methods will ensure businesses collect outstanding payments as quickly as possible.

Refinance or Consolidate Outstanding Debts

Outstanding debts are another common obstacle to financial efficiency. Having debts is normal for a business, but that doesn’t mean companies shouldn’t continuously reevaluate their loans. Periodically addressing these to see if there’s a way to refinance or consolidate them can help cultivate financial agility.

Many logistics companies may have outstanding vehicle loans, for example. These ongoing payments can easily fade into the background, but refinancing them can save $150 per vehicle per month in some cases. That seemingly small change frees up extra monthly revenue that companies can then put towards something else.

Alternatively, some companies may want to consolidate some of their debts. Doing so can make it easier to manage them and lower interest rates. Businesses may then be able to pay them off sooner.

Improve Cross-Department Communication

One aspect of the business that may fly under the company’s radar is communication between departments. When things get lost in translation moving between teams, it can lead to mistakes or take more time to achieve the desired goal. These mistakes and delays hinder financial efficiency, so improving communication can increase it.

Communication barriers cost $62.4 million annually in lost productivity on average. Consequently, companies should strive to remove barriers to effective collaboration, especially between different departments. Using collaborative software, holding frequent meetings, using instant messaging apps, and similar steps can do that.

When teams can communicate efficiently, confusion-related errors will decrease. Similarly, cross-department projects will have shorter completion times thanks to easier collaboration.

Reorganize Inventory

Inventory turnover is another aspect of financial efficiency to address. The longer items sit in warehouses or distribution centers, the less agile a company is. While logistics businesses may not be directly involved in the sales side of this issue, they can take steps to improve inventory inefficiencies.

Like fleets themselves, most inefficiencies in this area come from a lack of visibility. When organizations don’t know exactly where every item is at all times, it can take time to retrieve the correct one. Similarly, this lack of transparency can lead to confusion and errors that require correction down the road, leading to delays.

According to one survey, 34% of businesses have shipped items late because they sold out-of-stock items. Warehouse management systems, IoT tracking, and RFID tags can all help keep better track of inventory levels, avoiding mistakes like this. Logistics businesses can then pass these benefits along to their partners, creating positive ripple effects.

Train Employees More Thoroughly

One risk factor that can affect financial efficiency in any department in any business is human error. Even small mistakes can lead to considerable disruptions over time as more employees make them. Many may suggest automation as an answer, but that isn’t applicable in every circumstance and isn’t always necessary.

The solution to this problem is to put more emphasis on employee training. Organizations should look for common mistakes and, as trends emerge, emphasize these points in training. Periodic refresher courses over high-value or complicated processes can help too.

When workers better understand how to perform their jobs correctly, they’ll also work faster. More thorough training will boost confidence, leading to less second-guessing and higher efficiency.

Financial Efficiency Is Critical for Any Logistics Business

As the logistics market grows increasingly crowded, businesses must improve their financial efficiency to stay competitive. Higher efficiency will lower operating costs, attract investors, and open new strategic opportunities. These seven steps can help any business increase its financial efficiency. Companies can then become as agile and profitable as possible.

supply chain
3pls, Archives, Global Logistics, Global Trade Daily

7 Ways to Update Your Supply Chain Strategy for 2022

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The onset of the COVID-19 pandemic has changed the logistical landscape forever. There have been significant channel shifts due to renewed consumer behavior, the speed of orders, and delivery standard expectations. Amidst all this pandemonium, supply chains had to evolve years in a span of months just to keep up with this significant paradigm shift. 

Companies have moved away from low-cost supply chains and towards a much more resilient and agile framework. 87 percent of supply chain leaders are looking to invest in resilience in the coming years. As a result, the adaptation of next-gen transportation and logistics strategy solutions has made supply chains faster, smarter, and user-centric. Moreover, the logistics industry is evolving at an alarming rate and is said to reach a valuation of $12,256 billion by 2022. 

Since adroit logistics are reshaping the whole supply chain, what should you look forward to in 2022 and beyond? Read on to know more about seven different ways you can make your supply chain strategy even better!

Importance & benefits of a good supply chain strategy

In light of this new normal brought by the pandemic, it is of the essence that all companies, no matter the size, adapt a supply chain component. But why? Well, let’s delve into that for a bit.

Keeps costs and service quality in balance 

Customer satisfaction is key to the success of any business. But that might mean having goods in stock at all times. This might lead to overproduction and wastage of resources. With a good supply chain management (SCM) strategy in place, this can be avoided. The company shall save money and keep customers happy at the same time. 

Higher efficiency rate  

Data-driven SCM provides real-time data on the availability of raw materials and manufacturing delays. Hence, companies implement a ‘plan B’ instead of meeting these hurdles with empty hands. Out-of-stock inventory and late shipments won’t be an issue anymore. 

Encourages business development  

With an effective data-driven SCM strategy in place, you can analyze your past dealings with vendors. You can compare prices, quality of services, raw materials, etc., and realize improvement areas. Work on them and achieve your business goals efficiently. 

7 ways to better your supply chain strategy for 2022

Higher visibility 

Increased visibility into your supply chain’s transportation spend is a must. By doing so, you can improve on your weaknesses, control costs, and make effective, impactful data-driven decisions. In fact, 50 percent of global product-centric companies will have implemented real-time transportation visibility platforms. But why so?

Well, the answer lies in two parts. Firstly, they allow customers to track their orders in real-time. This meets the renewed customer expectations and makes the work of the customer support team a little easier. Secondly, the customer support team can deliver invaluable insights into your transportation costs and overall performance. 

Total visibility into your transportation spend is a gateway to optimize carrier selection, carrier rates, contract management, etc. Not only that, but you now have a stream of high-quality data that can help improve your business intelligence and make smarter data-driven decisions to cut costs further. 

Increased resiliency 

A resilient supply chain can be the only thing standing between a company’s success or failure. A bold claim? For sure. But is it wrong? Absolutely not. An effective, agile, and resilient supply chain management strategy can be a massive sales enabler and a significant driver to the company’s profit margin and growth opportunities. 

You need to optimize your transportation spending to understand where you are directing your money and root out all the unnecessary expenses. By controlling the costs within the supply chain, you can cut many costs and direct that money towards optimizing the areas that require improvement. Provided your supply chain management strategy is spot-on, you can make data-driven and impactful decisions and secure your place at the top of your industry. 

Optimized logistical networks 

The supply chain industry has recently seen a shift to omnichannel. The logistical disruptions caused due to the ongoing pandemic have accelerated this process by a considerable extent. According to a report by Gartner, 76 percent of supply chain professionals claim to have experienced an increase in disruption events in the past three years. 

72 percent of them also stated that the impact of these events has also increased. Hence, optimizing your logistical network for agility and resilience has become vital to maintain and multiply your customer base. Due to the ongoing pandemic, most customers have adapted to online shopping or buying online and picking up at stores (BOPUS). 

Although in-store shopping hasn’t completely disappeared, this new normal demands you to constantly keep up with customer orders and restock retailer inventory. Companies seem to be juggling between global, regional, and local networks to enable quicker delivery times. Hence, 90 percent of US retailers and consumer goods companies plan to change and optimize their supply chain network to increase efficiency. 

Better risk mitigation 

Risk mitigation is essential to maintain your customer base and the integrity of your supply chain. This point can’t be stressed enough post the onset of the pandemic. Over 28 percent of companies experienced a stock shortage in the first few months of the pandemic. This can damage your brand identity and have a detrimental effect on your customer base and market share. On top of this, damages, delayed shipments, inadequate storage environments, etc., can worsen the situation. 

You need to evaluate and identify the current risks to your company, prioritize them by probability and impact, and approach them accordingly. For example, optimizing and automating freight audits can act as a potent risk mitigator, as it eliminates errors, averts delays based on discrepancies, and streamlines operations. 

Digital supply chain adoption 

Supply chains have been very sluggish in adopting digital transformation. But the pandemic has been a wake-up call. With the digitization of almost everything in sight, supply chains need to undergo complete change management to stay afloat and keep up with the changing times. 

But what is change management? Change management is a collective term for all structured processes and approaches used to prepare, support, and help organizations make a complete organizational change. Managers today need to understand its tenets and create a seamless digital transformation. This is extremely necessary as only 1 percent of world supply chain leaders have an extensive digital supply chain system in place. 

With proper change management and digital supply chain tech adoption, this number is expected to shoot up to 23 percent by 2025. But people generally misinterpret the meaning of a digital supply chain. It is not just pushing spreadsheets onto a platform. 

It refers to the development and implementation of advanced technologies cloud-based computing, IoT, blockchain, ML, AI, etc.) to drive improvements in traditional supply chains. Implementation of such technology will reduce errors, improve resource efficiency, and provide valuable insights. 

Reliance on real-time data

Organizational silos can be detrimental to the smooth functioning of your company. Employees might become more insular and distrustful of other departments, making it challenging to work with other groups. Real-time data is the only way to break down these organizational silos as they offer complete transparency within your supply chain’s transportation spend. 

According to a study conducted by Forbes, 84 percent of supply chain leaders claim that real-time data has helped them break down silos across the entire value chain. Real-time data can allow you to control cost centers, measure performance, address procedural gaps, improve decision making, and boost overall team and company performance. 

With the pandemic still at large, the remote work culture makes maintaining transparency and leveraging accurate real-time data even more critical. This is to ensure that your transportations spend management keeps running smoothly and fruitfully. 

Increased disruptions 

The first nine months of 2020 experienced a massive 4200 disruptions to global supply chains, 14 percent higher than 2019. With disruptions set to keep increasing, supply chains must adapt and evolve to survive. Investing in supply chain resilience is an absolute must for 2022. 

Also, climate change is making it more and more necessary to adopt digital solutions within supply chain management. According to a WHO, UNDP, and IPCC report, climate change has increased heat in the workplace and has reduced labor productivity by 20%. Hence, our reliance on software solutions has to proliferate to unburden human resources and prevent productivity loss.

Implementing an agile approach to supply chain transformation

An agile supply chain is a supply chain of the future. Supply chains must encompass the ability to achieve more in a shorter time, adopting new digital technologies. All end-to-end processes, such as planning, manufacturing, logistics, etc., must be backed by the latest technologies. 

A more traditional supply chain will be rendered obsolete and must undergo complete change management to keep up with the rapid digitization of the industry. Process re-engineering (radical redesign of business processes) and adaptation of software solutions to cater to the company’s specific needs will pave the way for an impeccable supply chain management strategy. 

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Hazel Raoult is a freelance marketing writer and works with PRmention. She has 6+ years of experience in writing about business, entrepreneurship, marketing, and all things SaaS. Hazel loves to split her time between writing, editing, and hanging out with her family.

Trade credit
Archives, Banking, Global Trade Daily, Trade Credit Insurance

ITFA Takes A Harmonized Step Towards Trade Credit Insurance

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The ITFA (International Trade and Forfaiting Association) recently released a new initiative in the form of a Basel III-compliant trade credit insurance policy form. Designed to assist insurers and financial institutions to negotiate new deals and help establish a standardized Basel III policy, the IFTA’s initiative also represents an effort to help trade credit insurers in an era where insurance companies are seriously re-evaluating how they operate.

Trade credit insurers, and the insurance industry as a whole, have been greatly challenged by the economic fallout created by the pandemic and the lockdowns. The frequency of insolvencies from commercial customers due to financial difficulty has risen greatly. Normally, credit insurers would cancel (or at least limit) coverage for buyers who display signs of being unable to pay. 

But due to the serious economic situation created by the pandemic, there is now the dramatically increased risk of trade credit being withdrawn across the board. In this article, we’ll cover why insurance plans including TCIs have become more relevant since the start of the pandemic, how the IFTA’s new policy should help trade insurers, and then what we can expect the near future to look like for the insurance industry overall.

What is trade credit insurance?

Trade credit insurance, or TCI, protects businesses against the inability of commercial customers to pay for services or products. The inability of customers to pay may result from financial woes, bankruptcy, societal upheaval, or other factors. The purpose of a TCI plan is therefore to help businesses ensure they still receive proper cash flow as a result of doing business with a customer who won’t or can’t pay. Banks, in particular, utilize trade credit insurance for capital relief and to reduce financial risk when conducting transactions. 

In many industries, it’s common for customers to take out a line of credit in order to make a large purchase. Of course, any business that lends money to customers is taking a risk that the total amount lent (in addition to any interest) will not be repaid. It’s even a greater risk when the debt is unsecured and there is no collateral to reinforce the loan. 

A comprehensive TCI plan will compensate a business for any unpaid debt, depending on what the coverage limits and other details of the plan are. Since most lines of credit that businesses give for large purchases are unsecured, having a TCI plan in place will mitigate much of the risk. In other words, businesses with a TCI plan at the very least should be more comfortable with extending lines of credit to customers, and they will have a backup plan in the event that the entire debt is not paid. 

Why the pandemic has demonstrated a need for insurance 

Due to greater financial uncertainty since the pandemic began, there has been a drastic increase in the number of businesses and individuals alike applying for insurance coverage. It’s not just TCI plans either. The number of business owners applying for life insurance coverage, for instance, has increased dramatically as a means to protect their financial assets in the event that the worse happens.

It’s not hard to see why. Covid has proven to be deadly for patients who are older and/or have existing health issues. That’s most likely why the number of adults who have purchased a life insurance plan has increased to 50% of adults in Canada and 52% of adults in the United States. 

If anything, the pandemic has demonstrated that there is a very real need for businesses and organizations to have an insurance plan (or plans) in place to help ensure financial stability in an increasingly volatile era. It’s also demonstrated a greatly increased demand for insurance coverage across a number of different policies and plans. Other insurance plans that are in greatly increased demand from business owners include general liability insurance, worker’s compensation insurance, and commercial property insurance. 

And now that insurance companies (in general) are experiencing much higher demand since the start of the pandemic, there is much more uncertainty in regards to the timing and extent of claims, as well as the fact that most insurance agencies are being forced to increase premiums and raise additional capital to help reverse the decrease in return on equity. Like the businesses they are insuring, insurance companies themselves are likewise at increased risk.

Even though the policy by the ITFA is in regards to trade credit specifically, it may provide us with a blueprint on how risks and costs may be reduced for insurance companies overall as well as the financial institutions they work with. 

What does the ITFA’s new policy form do?

Basel III is an international regulatory framework that was made as a response to the 2008 financial crisis. The new ‘harmonized’ Basel III-compliant policy form that was released is designed to help insurance companies and banks negotiate new deals as well as standardize a trade credit policy. 

The new form covers receivables policies and is intended to generate more insurable opportunities while keeping costs and time spent to a minimum. As noted previously, banks and financial institutions often rely on TCIs for capital relief and to keep risk to a minimum. The issue, however, is that banks and TCI agencies often each possess their own Basel III policy forms. 

When a bank and TCI agency attempt to work together, many hours or even days are spent on negotiating forms. This is difficult because all forms being negotiated are kept confidential and much work goes into settling on similar wording. Needless to say, negotiations can be extended and expensive. 

The goal of the ITFA’s form is to ‘harmonize’ wording during negotiations between banks and insurance companies so that two primary goals are accomplished: one, that insurance carriers can more clearly based on their services provided and the details of their policies versus policy wordings, and so that banks can focus more on their pricing. To put it into simpler terms, it aims to standardize how insurance policies are worded. 

As Sean Edwards, the CEO and Chairman of ITFA stated at the 2021 ITFA conference, “Consistency, predictability and a reliable form is paramount to regulatory bodies further recognizing trade credit insurance as a viable risk transfer mechanism for capital substitution. We need all banks, insurance companies, law firms, and brokers moving in the same direction if we are to grow the overall industry.”

Streamlining policy negotiations between banks and insurance companies with standardized wording is certainly one way to provide relief to insurance companies, and one that could be applied to other insurance companies outside of TCI carriers as well. 

Other actions include governments offering their support to insurance markets by guaranteeing transactions made by insurance companies through reinsurance agreements and, in the case of the European Union, having export credit agencies ensure short-term trading risks instead of private insurance companies. 

Conclusion

As the world starts to emerge out of the economic crisis generated by the pandemic, private businesses, banks, and insurance companies are all at greater risk than they were before. Insurance companies including TCIs are in a position where their services are in much greater demand than before, and they need to minimize financial losses. The move by the ITFA to standardize language and streamline negotiations between banks and insurers is one-way costs can be reduced. 

enterprise marketplaces
Archives, Global Logistics, Global Trade Daily

10 Reasons to Embrace Enterprise Marketplaces

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Sellers must think strategically to unlock the power of these powerful new ecommerce technologies.

The pandemic sparked a surge in online selling — and not just by DTC brands serving customers while they were hunkered down at home. The B2B digital commerce space has also seen massive growth over the past two years, a trend that has only been accelerated by the rise of enterprise marketplaces.

What is an enterprise marketplace? Well, we’re all familiar with online marketplaces such as Amazon, Etsy, or eBay that focus solely on connecting buyers and sellers. An enterprise marketplace does much the same, but it’s typically run by an organization that wants to sell its own products and services to customers, and creates a marketplace to offer complimentary products, strengthen its partner networks, or create a better experience for its customers.

The world of enterprise marketplaces is remarkably diverse, including multi-vendor marketplaces, procurement-focused marketplaces, and branded marketplaces. In all cases, though, the enterprise marketplace approach is a powerful paradigm that’s changing the way that organizations sell online. Let’s take a closer look at some of the key benefits that well-run enterprise marketplaces deliver for their operators, vendors, and customers:

1. New revenue streams. Subscriptions, transaction fees, and value-add services or support charges enable marketplace operators to collect revenues without managing their own inventory or building out warehouses. Frankfurt Airport, for instance, invested in an online marketplace, and now collects membership fees from airport retailers who list products and offer promotions to passengers.

2. Customer experiences. Marketplaces are a great way to expand from B2B into B2B2C, or D2C models while still delivering engaging experiences. Andikem, the chemical fulfillment marketplace, achieves this by providing supply-chain transparency and fulfillment efficiency, keeping prices low for buyers.

3. Elimination of pain points. Marketplaces can offer solutions to customer headaches in areas such as supply chain and fulfillment. DOZR set up its WebStores marketplace to address an unmet need by helping construction contractors to rent equipment more easily, and now connects 15,000 suppliers with hundreds of thousands of customers.

4. Smarter procurement. Marketplaces are a perfect solution for complex procurement scenarios, helping buyers such as large companies or government agencies to coordinate across multiple divisions, subsidiaries, or business units while maintaining strict ordering processes. SupplyCore, the logistics solutions company, achieves this with a digital platform that manages complex orders without manual input, enabling customers to track order status from quote to delivery.

5. Streamlined purchasing. Marketplaces can support complex B2B purchasing arrangements, improving efficiency and lowering costs for everyone. Tundra Restaurant Supply, for instance, has built a flexible marketplace that allows it to offer customized experiences, discounts, and free shipping even for big buyers such as Chipotle.

6. Better franchise relationships. Franchise businesses can use an enterprise marketplace model to create a collaborative environment, maintain visibility into franchisor-franchisee relationships, and improve outcomes for customers. French retail franchise V and B does this well: their cloud-first marketplace centralizes inventory and streamlines operations for HQ, franchises, and suppliers.

7. Expanded product offerings. With competition growing, mass-market retailers are increasingly creating marketplaces to grow their product offerings. Walmart Marketplace, Amazon’s biggest US challenger, now uses its 5,000 brick-and-mortar stores as a value-add: vendors get a chance to sell in-store, and shoppers get access to a far wider array of products.

8. Better use of existing assets. Organizations with a large distribution footprint can maximize their assets with a marketplace. Target, for instance, leverages its distribution and store network to power its invite-only Target Plus marketplace, and promotes hand-picked brands across its Target.com and mobile ecosystem.

9. Better product information. Enterprise marketplaces can elevate product presentation — a valuable proposition for B2Bs with large SKUs and complex offerings. PartsBase, the world’s largest aircraft parts marketplace, delivers value by maintaining detailed product information for 15 billion parts spanning 100,000,000 inventory lines.

10.  A stronger ecosystem. Businesses with large partner networks can use marketplaces to centralize and enable collaboration. Toyota Material Handling achieved this by gathering over 200 certified dealers on its platform, delivering a more engaging partner experience and ensuring a better product selection for end-users.

Think strategically

Unlocking these benefits doesn’t happen all by itself. Organizations need to think strategically about their enterprise marketplaces in order to get the most bang for their buck.

That starts with building out the operational infrastructure you need to succeed, including clear purchasing processes, fulfillment workflows, and payment systems. You’ll also need to communicate clearly with all stakeholders, including your outside partners and your own employees, in order to make sure that everyone understands the strategic goal of the marketplace and is committed to pulling in the same direction.

Operators also need to go into the process of building a marketplace with clear eyes, and an understanding that creating a successful marketplace requires committing serious resources. From building out digital infrastructure to retraining employees and engaging with partners, you’ll need to invest if you’re going to build a successful marketplace — and the amounts needed can be a dealbreaker for brands that aren’t sufficiently mature or ambitious.

Finally, you’ll need to develop the right toolkit. Fortunately, that doesn’t mean building everything yourself: these days, there are a wide range of marketplace management platforms to choose from. Many marketplace tools are designed to support conventional marketplace operators, though, and don’t include the features needed for enterprise operations. Be sure you do your due diligence, and select a marketplace solution that’s designed to support the specific needs of B2B and enterprise operators.

Plan for success

The bottom line is that enterprise marketplaces are changing the way that businesses of all kinds buy and sell online. That’s potentially a lucrative opportunity for operators — including manufacturers, distributors, retailers, franchisors, and even government actors.

The more crowded the enterprise marketplace grows, though, the more competitive the space will become. That means new and existing operators will need a careful and measured strategic approach in order to gain a foothold and build a successful marketplace.

When you’re thinking about the potential benefits of running an enterprise marketplace, then, it’s important to plan ahead. Focus in on exactly what you’re hoping to achieve — and develop the strategy, partnerships, and toolkit you need to achieve your own specific goals.

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Yoav Kutner is the CEO and co-founder of Oro, Inc, which has created OroCommerce, the No.1 open-source eCommerce platform built for distributors, wholesalers, brands, and manufacturers. Yoav previously co-founded and served as the CTO of Magento.