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What B2B Marketing Trends Can We Expect to See in 2022?

B2B
Archives, Global Trade Daily, Special Reports

What B2B Marketing Trends Can We Expect to See in 2022?

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Major shifts in the global market are impacting how B2B companies approach marketing. After 18 chaotic months, innovation is accelerating at a rapid pace. The digital transformation of the economy and the rise of e-commerce are likely to spark significant change in 2022.

Current data suggests these trends are likely to define B2B marketing in the coming year, so businesses would be wise to embrace them.

1. Spending Shifts to Mobile-First Strategy

In 2022, mobile and digital advertising will continue to become central to B2B marketing efforts. At the same time, marketers are also adjusting to a work-from-home reality. Around 70% of B2B buyers and decision-makers prefer remote or digital interactions with vendors.

Gartner predicts this number will tick up by an additional 10 percentage points by 2025. These buyers will likely respond better to more digital marketing strategies, as well.

Many marketers will likely shift to a digital-first marketing approach that prioritizes mobile advertising and content over offline and more traditional strategies. This will probably come with growing ad spend — though growth is on track to be slower next year than it has been in the past, partly due to the lingering effects of COVID-19.

As the amount of millennials in decision-making roles has grown, so has the number of buyers who want a seller-free experience. Less personal and direct approaches to marketing may become more popular among B2B marketers as a result.

2. Changing Lead Generation Channels

Generating quality leads remains a top goal of B2B marketers. How they are developed is likely to change significantly in 2022 and through the rest of the decade.

COVID-19 impacted how events are hosted. While some businesses pivoted to online events and others chose to delay or cancel, all marketers had to adapt quickly to the reality that in-person events were no longer always available to generate leads.

Jurgen Desmedt, head of marketing at Europe-based CDP vendor NGDATA, told CMSWire that social media is emerging as a major lead-generation channel.

B2B marketers are more often taking to social advertisements to generate leads that previously came from events. Uncertainty in B2B marketing may also be driving the pivot to social media. Marketers unwilling to commit fully to in-person interactions may instead look toward other methods requiring less commitment.

The most popular style of social media marketing is also changing. Many marketers are now more interested in highly targeted and personalized strategies. Many platforms offer targeting tools with extremely fine levels of detail so they can deliver niche content to specific audiences.

Scheduling apps may help smaller businesses and solo entrepreneurs manage an increasingly complex strategy that delivers niche content to various audiences.

3. Growing Focus on Customer Psychology

The “neuromarketing” strategy allows B2B marketers to spend more time than ever focused on the individual psychology of key buyers and decision-makers. In practice, this may look like a shift from topic-driven to persona-driven marketing in B2B. Marketers will focus on honing in on their target audience’s particular needs, desires, and interests to generate more effective ads, content, and events.

Client personas will become a more important marketing consideration as a result. There’s also likely to be a greater focus on matching searcher intent and developing deeper content calendars.

4. Innovation to Engage B2B Customers

Cutting-edge technology will help marketers create campaigns that more effectively engage potential buyers in 2022. Optimizing for new types of search — like image and audio — may be essential to capture traffic. AI and marketing chatbots could help marketers reach more customers and reduce the amount of time potential buyers spend waiting.

In some cases, new technology and the focus on psychology may also mean the growing use of high-tech advertisements that generate interest and secure potential buyers’ attention.

Interactivity in emails can increase conversions and improve ROI — helping businesses get more out of their email campaigns. AMP emails, which enable marketers to provide app-like functionality inside a message, are one common method for delivering this interactivity.

Similar uses of personalization and interactivity in other forms of marketing may also provide results like these.

5. Original Research and Top-Quality Content

Online resource centers, blogs, content hubs and more have become a valuable tool for B2B marketers. In 2022, original research is likely to become even more important for marketing efforts.

According to data from the 2020 Demand Gen Report, B2B buyers increasingly look to a business’s original content when making purchasing decisions. This has become a significant trust marker, signaling to buyers that the company puts stock in its organizational knowledge and experience. Research also provides some early value to a potential buyer,

Because content has become a trust marker, simply writing posts to generate traffic and leads will no longer be enough. Information needs to be top-quality to encourage buyers to investigate the brand further or get in touch with the business’s sales team.

Various content strategies will likely be necessary to deliver high-quality information relevant to B2B buyers’ interests.

Customer psychology will likely be important to content teams. Effective use and reuse of posts will allow marketers to take full advantage of what they develop. Breaking things up to enable the tracking of micro-conversions could provide marketers with additional insights into reader behavior and interests.

Certain content types will also probably be more valuable than others. A business’s niche, original research, white papers and other forms of highly valuable and in-depth content may provide the most value to readers — building trust and generating interest.

Video content remains one of the top content types, overtaking blog posts and infographics in popularity. However, the high cost of producing video content may be a barrier to its use by some businesses.

How B2B Marketing Is Likely to Change in 2022

Uncertainty and digital transformation will likely have a significant impact on B2B marketing next year. Marketers are beginning to leverage mobile-first approaches, invest more in social media and adopt cutting-edge technology, like chatbots and interactive emails. This will be vital to effectively reach people and boost sales moving forward.

These new strategies and tools may help companies adapt to a market where buyers are more interested in digital channels and personalized content. Marketers must be prepared to embrace the upcoming changes to effectively reach their target audiences in 2022.

Supply Chain Industry
3pls, Archives, Global Logistics, Global Trade Daily

Factors that are Reshaping the Supply Chain Industry

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In the modern supply chain, the technology and software you use are as important as your strategies. Plenty of decisions and actions you need to take now happen in the digital world. So, you must pick the right technology if you want to see better efficiency in your chain. In essence, choosing the solution you want to use can make or break your position on the global stage. Hence, technology is and will stay one of the main things that define the game. But, what are the exact factors that are reshaping the supply chain industry? Well, that’s what we’re here to find out.

Last year, COVID-19 took the supply chain to a new place, but not all in a bad way. The changes that took place opened new opportunities and created new practices for companies. We found ways to improve agility and eliminate risks, and things are only getting better.

To figure out how to make them better for your system, take a look at the key things that are transforming the industry at the moment.

Artificial intelligence

Algorithm-based decision-making software and data analyzers are being adopted in every niche, so it’s clear that the era of useful AI has arrived.

When it comes to the supply chains, among other things, AI can help you eliminate human error and reduce costs. It’ll allow you to restructure workflows, so all your workers can be more focused and productive. The technology will support them and make their jobs easier. We’ll explain how this happens a bit later.

The pace of technological change

Technology is developing faster than we can learn to use it. Let’s take eCommerce as an example. It provided people with a whole new way of shopping and took the world by storm. All of a sudden, you’re able to find anything you need and have it delivered to your door without ever having to leave the comfort of your home. Thanks to it, customer demands and expectations have changed. Now, they expect quick and even same-day deliveries. So, the logistics industry has to respond to that to stay in favor of people.

As a company, the only way to stay relevant is to build a reliable infrastructure and learn how to use new technology developments. Experts believe that online and mobile shopping will be the preferred way of buying for the majority of people in the future. Even today, people are getting everything from groceries to appliances online, so why would that change in the years to come?

To update your system, try to make your processes more streamlined. That will give you a better chance of keeping up with modern timeframes.

The Internet of things

We can’t talk about the factors that are reshaping the supply chain industry and not mention the Internet of things. Although most people will associate the term with smart home appliances, this technology is actually invented to deal with sensors and tracking equipment.

So, the IoT is what you’ll use if you want to reduce commercial warehousing costs. However, it can help you do much more than just that. With it, you can connect all the products, people, and processes within your organization and share information among them in real-time. Just like that, everything becomes streamlined, and your productivity goes up.

Automation and robotics

Of course, people have been using task-specific robots for decades in industries such as automotive. However, the latest generation of robots can learn how to do multiple tasks, so they have much more potential.

In supply chains, you can find a use case for these almost anywhere. Add AI into the mix, and you quickly realize that robots can bring many new things to manufacturing processes and reduce staff costs. With time, more and more repetitive or dangerous tasks will be performed by these.

Big Data

Big Data is used to track data and measure the performance of factories in real-time. In past times, to survey workers, you had to put an entire factory under surveillance. But today, modern sensors and networks give us insights that we couldn’t get before. You can even collect data on each and every employee if you want to. This way, you’ll spot problems much more easily and fix them sooner.

When you remove the bottlenecks in the delivery process, you’ll also improve the lives of your workers. You’ll streamline their roles, and they won’t waste time on unnecessary or frustrating tasks. If you rely on Big Data-driven decision-making, you’ll create a leaner business model and reduce wastage.

3D printing

If we’re talking about prototyping new products and designs, there isn’t a tool as useful as 3D printing. Companies that invested in it say that they managed to halve their prototype production times, and that’s a huge thing. If you have to wait for weeks until you get parts to start working, that creates problems right down the supply chain. It lengthens the process and increases the costs. On the other hand, 3D printing alleviates supply chain weaknesses that already exist.

Use it, and you can apply design iterations to the molds within hours. So, you’ll be speeding up the process and encouraging the closer engagement of product designers and the manufacturing team. And for that, 3D printing is one of the factors that are reshaping the supply chain industry.

Factors that are reshaping the supply chain industry – delivered

Incredible advancements in technology are at the root of all factors that are reshaping the supply chain industry. If you fail to incorporate them, you will fall behind. Therefore, follow the latest trends and introduce the changes that will streamline your processes, make your business functioning more efficiently and productive.

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Deon Williams is a freelance writer with a degree in systems engineering. Although it’s not his main job, he loves to write articles and share his expertise. In the past, Deon helped companies like zippyshelldmv.com to streamline their processes and increase their earnings. When he’s not working, he loves to read in his comfy chair and play basketball with his two sons. 

soft drinks
Archives, Global Trade Daily, News

American Soft Drink Imports Skyrocket to $2.8B

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

After a decade of continuous growth, American sugary soft drink imports reached $2.8B in 2020. In physical terms, imports rose by +8% y-o-y to 1.6M tonnes. Austria, Mexico and Switzerland were the largest suppliers of sugary soft drinks to the U.S., accounting for 60% of total American imports. The UK, Mexico and Italy featured the most intensive growth of shipments to the U.S. in 2020. In America, the average sugary soft drink import price amounted to $1,800 per tonne last year.

American Sugary Soft Drink Imports

In 2020, the amount of sugary soft drinks imported into the U.S. rose markedly to 1.6M tonnes, increasing by +8% against the previous year’s figure. In value terms, sugary soft drink imports rose from $2.7B to $2.8B (IndexBox estimates) in 2020.

Austria (363K tonnes), Mexico (349K tonnes) and Switzerland (221K tonnes) were the main suppliers of sugary soft drinks to the U.S., together accounting for 60% of total imports. These countries were followed by Canada, Italy, France and the UK, which together accounted for a further 28%.

In 2020, the most notable growth rates regarding shipments to the U.S. in physical terms were attained by the UK (+43% y-o-y), Mexico (+18% y-o-y) and Italy (+14% y-o-y). By contrast, the supplies from Switzerland (-11% y-o-y) and France (-5% y-o-y) were reduced.

In value terms, the largest sugary soft drink suppliers to the U.S. were Austria ($1.1B), Switzerland ($670M) and Mexico ($324M), with a combined 74% share of total imports. Canada, Italy, the UK and France lagged somewhat behind, together comprising a further 17%.

In 2020, the average sugary soft drink import price amounted to $1,800 per tonne, with a decrease of -4.6% against the previous year. There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was Switzerland ($3,026 per tonne), while the price for Canada ($886 per tonne) was amongst the lowest. In 2020, the UK attained the most notable rate of growth in terms of prices, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

on-demand warehousing
Archives, Global Logistics, Global Trade Daily, Warehousing

Short-Term On-Demand Warehousing and How it Can Support Supply Chains

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The Impact of COVID-19 on Supply Chains

Pre-pandemic, the just-in-time (JIT) supply chain model, which minimizes inventory to reduce costs, was the norm. However, this model exposed companies’ vulnerabilities when COVID-19 accelerated change across every supply chain industry vertical – especially warehousing.

The shift to remote work and the exponential rise of e-commerce exposed supply chains to crushing demands and major disruption. Companies didn’t know if their warehouses were going to be empty week to week, or if they were going to be overstocked. Extra industrial space that goes unused is a huge financial strain for a business, but on the other hand, purchasing patterns were so unstable during the pandemic that overflow also became a financial concern.

With changes in consumer preferences, supply chain setbacks, project delays and more as a result of the pandemic, there has never been a greater need for regional space that can be leased on flexible terms. Because of the nature and uncertainty of the economy, many businesses don’t want to commit to a long-term sublease for space, but at the end of the day, they still need a solution. Tenants and landlords also want the opportunity to generate earnings if they have unused space simply racking up their expenses. Short-term, on-demand warehousing has allowed companies of all sizes and industries to make smart decisions about warehouse space and plan more effectively for the future during COVID-19.

The Rise in Popularity of Short-Term Warehousing

The supply chain industry understandably doesn’t want to fix what’s not broken. However, when the COVID crisis hit, many traditional processes and workflows began to fail. This accelerated the need for more innovative solutions and new, tech-based services like Chunker became a mainstream necessity.

Warehouse leasing has long been predicated on long-term commitments and needs. For example, a business would have to commit to a 10-year lease, which meant predicting and planning space needs over the course of a decade. This left a ton of room for error, especially as consumer behavior evolved so quickly.

Short-term, on-demand warehousing supports supply chains in the new era by adding agility and flexibility. Companies no longer need to sign a five-year lease when they only have a five-month problem to solve. By enabling short-term deals, flexible warehousing allows a business to respond faster.

Additionally, companies are able to take advantage of new opportunities and move into new markets faster. Typically, it takes six months to a year to source and secures long-term warehousing space. Through short-term, on-demand warehousing options, a company can now find industrial space in 24 hours and enter a new market, while planning for the long-term. This allows for better market testing, while removing some of the risks that comes with entering a new market.

Looking Ahead: What’s in Store for Warehouse Space and Supply Chains

Where we will see short-term, on-demand warehousing proliferate is in areas such as construction, 5G rollouts, hotel remodels and overflow storage for retail and e-commerce. For instance, construction projects require truckloads of goods to be brought on-site, necessitating a short-term space for materials storage. Flexible warehousing is going to become more and more vital to supply chain resilience in the future, and is less expensive than a traditional brick and mortar.

Short-term, on-demand warehouses are the natural next step in the evolution of commercial real estate and the industrial space in particular. Over the last few years, we have seen the space evolve and adapt to new entrants in the market like on-demand office space, short-term rentals, co-living, pop-up retail and more. As the industry continues to shift and adapt to more on-demand solutions, it will continue to be a go-to resource for people seeking convenience, simplicity and efficiency for finding and leasing warehouse space in the post-pandemic era.

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Brad Wright is the CEO of Chunker

gypsum
Archives, Global Trade Daily, News

Global Gypsum and Anhydrite Imports Shrink with Declined Purchases from the U.S. and India

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

Global gypsum and anhydrite imports fell from $991M in 2019 to $901M in 2020. The U.S., India, Japan, Indonesia and the UK constitute the largest importers of gypsum and anhydride worldwide. In 2020, these five countries saw significant drops in import volume. China, the Netherlands and Sweden were among the few countries that managed to increase their imports. In 2020, the average gypsum and anhydrite import price grew by +6% against the previous year.

Global Gypsum and Anhydrite Imports

In 2020, global gypsum and anhydrite imports fell to 30M tonnes, dropping by -14.2% on 2019. In value terms, gypsum and anhydrite imports dropped to $901M (IndexBox estimates) in 2020.

In 2020, the U.S. (6M tonnes), distantly followed by India (5.0M tonnes), Japan (2.4M tonnes), Indonesia (2.0M tonnes) and the UK (1.6M tonnes) were the key importers of gypsum and anhydrite, together generating 52% of total imports. The United Arab Emirates (1,326K tonnes), Bangladesh (1,108K tonnes), Canada (933K tonnes), Belgium (758K tonnes), South Korea (673K tonnes), Viet Nam (653K tonnes), Israel (571K tonnes) and China (556K tonnes) followed a long way behind the leaders.

The world’s largest importers, U.S. (-2% y-o-y), India (-6.3% y-o-y), Japan, Indonesia and the UK, saw significant drops in the import volume. By contrast, China, the Netherlands and Sweden managed to boost their purchases from abroad.

In value terms, the largest gypsum and anhydrite importing markets worldwide were the U.S. ($141M), India ($89M) and Japan ($86M), together comprising 35% of global imports. These countries were followed by Indonesia, the UK, Canada, Viet Nam, China, Belgium, South Korea, Bangladesh, the United Arab Emirates and Israel, which together accounted for a further 32%.

In 2020, the average gypsum and anhydrite import price amounted to $30 per tonne, increasing by +6% against the previous year. Prices varied noticeably by the country of destination; the country with the highest price was China ($50 per tonne), while the United Arab Emirates ($11 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Canada, while the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform

innovations
Archives, Global Logistics, Global Trade Daily, Stories

5 Innovations in Manufacturing Processes and Their Effect on the Bottom Line

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Manufacturing is a rapidly evolving industry. With a broad spectrum of sectors depending on manufacturing, modern facilities are often quick to adopt new technology that improves on their existing processes.

The rise of automation, artificial intelligence (AI) and data have created a wave of digital transformation. As manufacturing grows and becomes increasingly competitive, capitalizing on Industry 4.0 innovations can determine whether or not a company will succeed.

Here’s a look at five of these innovations and how they affect the bottom line.

1. Cobots

Robots aren’t new in the manufacturing industry. But as automation has grown, new approaches and technologies have emerged that can take its benefits further. Collaborative robots, or cobots, are one of the most significant of these upgrades to factory automation.

In a 2021 study, 44.9% of surveyed businesses said that robots are an integral part of their operations. Of those companies, 34.9% had adopted cobots. Cobots have slowly become more popular as manufacturers have realized the limits of traditional automation. Other robotic solutions are expensive and inflexible, making it difficult to scale, but not cobots.

Since cobots work alongside humans instead of replacing them, they typically automate fewer processes at once. Consequently, they’re often more affordable than traditional automation and easier to implement. Manufacturers can then automate one process at a time, slowly scaling up to meet demand or new challenges.

This incremental approach to automation removes the high upfront costs and disruptions of traditional automation. As a result, cobots enable manufacturers, especially smaller businesses, to scale up and down with ease. These companies can then enjoy quicker, higher ROIs.

2. IoT Sensors

Another growing innovation in manufacturing is the implementation of internet of things (IoT) sensors. While these technologies aren’t a manufacturing-specific phenomenon, they hold considerable potential in this sector. Perhaps their most popular and impressive use case is predictive maintenance.

Predictive maintenance improves on traditional maintenance schedules by avoiding both breakdowns and unnecessary repairs. According to a Deloitte report, it reduces maintenance costs by 25% on average. That’s an impressive figure on its own, but it also reduces breakdowns by an average of 70%.

Considering that an hour of downtime costs more than $100,000 in 98% of organizations, that adds up to considerable savings. Predictive maintenance isn’t the only application of IoT sensors in manufacturing, either.

Manufacturers can also use these sensors to gather data points throughout their operations. This data can then reveal areas of potential improvement, enabling ongoing optimization. The longer manufacturers use these technologies, the more they can save through them.

3. Additive Manufacturing

One recent innovation that is specific to manufacturing is 3D printing, also known as additive manufacturing. While this technology is most well known as a tool for hobbyists, it originated as an industrial production technique. Recent advances have made it a more viable solution, leading to a comeback in industrial manufacturing.

Additive manufacturing lets manufacturers produce parts and products as a single piece instead of assembling multiple smaller components. Like mil-spec buffer tubes, which are made of a single piece of aluminum, this improves products’ strength and resiliency. As a result, they produce fewer defects, improving the company’s bottom line.

Since additive manufacturing adds material instead of cutting it away, it also reduces waste. Manufacturers can get more parts or products from the same amount of materials. 3D printers also typically work faster than traditional production techniques, leading to a quicker time to market.

Additive manufacturing is also more energy-efficient. Some products, like car batteries, require a lot of energy to handle the sensitive materials they need, leading to higher costs. By reducing energy consumption through additive manufacturing, facilities can increase their profit margins. Alternatively, they could reduce end prices, selling more with consistent profit margins.

4. 5G Connectivity

Like the IoT, 5G isn’t strictly a manufacturing technology, but it has impressive potential for the sector. 5G networks aren’t widespread enough yet to bring substantial improvements to the consumer sector, but they’re ideal for manufacturing facilities. Their higher bandwidth, increased speeds and lower latency let smart manufacturing reach its full height.

5G networks can theoretically support up to one million devices per square kilometer, ten times 4G’s limits. That will allow manufacturers to expand their IoT infrastructure to virtually every machine in the facility. Lower latencies will allow these interconnected systems to communicate more efficiently and reliably, unlocking Industry 4.0’s potential.

With all of these machines connected to one another, manufacturers could create cohesive autonomous environments. If a disruption occurs in one process, machines down the line could know and adapt to it, minimizing its impact. As a result, manufacturers could maintain higher productivity levels, minimizing their losses from lost time.

5G lets manufacturers use technologies like the IoT and automation to their full extent. This leads to higher ROIs for these significant investments.

5. Machine Vision Error Detection

AI has many use cases in manufacturing, but one of its most enticing is machine vision. Machine vision systems let manufacturers automate quality control processes at both the front and back end of production lines. This automation, in turn, improves the efficiency and accuracy of their error detection.

When Heineken installed a machine vision quality control system in its Marseille, France bottling plant, it highlighted this technology’s benefits. The facility’s bottling machine operates at 22 bottles per second, far too fast for human workers to spot any bottle defects without stopping it. The machine vision system, on the other hand, can analyze bottles at speed with a 0% error rate.

Machine vision error detection lets manufacturers increase production while maintaining the same level of quality. Since these systems deliver a level of consistency impossible for a human, they’re also more accurate. As a result, facilities will also produce fewer defects.

Fewer defects translate into less waste, and faster checking enables increased output. These factors combined result in an improved bottom line.

New Technologies Make Manufacturing More Profitable

These five technologies aren’t the only ones pushing manufacturing forward, but they are among the most notable. As more facilities embrace these innovations, manufacturing is becoming a more profitable industry.

Technologies like these improve efficiency, minimize errors, optimize operations and more. Manufacturers that can capitalize on them early will ensure their future success, and those that don’t may quickly fall behind.

logistics
Archives, Global Logistics, Global Trade Daily, Warehousing

What Does 2022 have in Store for the Shipping & Logistics Industry?

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The word logistics derived from the French term ‘logistique’ originated around 1830 in the military and is referred to as the movement of supplies and equipment in the war field. 

In layman’s terms, logistics is the overall process of managing how resources such as equipment, inventory, food, liquids, materials and people are acquired, stored and transported to their final destination. 

The logistics industry which was valued at $7,641.2 billion in 2017 plummeted to $5,200 billion in 2020. The COVID-19 pandemic was mainly responsible for this massive slowing of logistics activities across the world. 

While some industries struggled badly during the pandemic, many industries such as the daily essential goods industry, e-commerce, healthcare and pharmaceuticals affected the logistics industry positively. With the COVID situation easing gradually and the world getting back on track, the logistics industry is projected to reach $12,975.64 billion by 2027. 

In the year 2022, the logistics industry is predicted a bright outlook and several new trends are expected to dominate the industry. Let us discuss some of the top trends that will determine what is in store for the logistics industry in 2022.


Micro Warehouses and Last Mile Logistics

More micro warehouses are likely to be the trend in 2022. Micro warehouses are dedicated small warehouse spaces focused on moving inventory closer to the customer, especially in densely populated urban areas. It results in faster and efficient last-mile logistics to cater to the increasing demand for same-day and next-day deliveries.

Micro warehouses may not be well suited for products that need to be kept in a climate-controlled environment such as food, beverage and pharmaceutical products. But for common consumer goods and apparel that require minimum special handling, micro warehouses are a great fit.

Increased demand for 3PL and 4PL services

Due to the phenomenal rise of e-commerce, increased demand for 3PL (Third-Party-Logistics) and 4PL (Fourth-Party-Logistics) services are expected.

According to a report by Allied Market Research, the global 3PL market is expected to reach $1.1 trillion over the next six years. 3PL companies that provide warehouses in multiple locations will be more in demand as that would result in efficient last-mile logistics. 

3PL and 4PL offer numerous advantages such as being a cost-effective, faster and responsive model. It does have a few disadvantages too, such as lack of direct control and increased dependency of the manufacturer on the logistics provider. In case of any discrepancy, the blame will be on the company and not the logistics provider. 

But the advantages outweigh the disadvantages and 3PL and 4PL services are expected to be increasingly in demand.

Big Data and IoT

In these times when excessive data can mind-boggle us, Big Data by its sophisticated and predictive analytic methods uses this complex set of information and forecasts the likelihood of possible events. 

Some of the immense benefits of Big Data to the logistics industry are:

-Reducing inefficiencies and helping to make informed decisions

-Predicting things such as, which mode of transportation and carrier to use to maximize profits and meet delivery schedules

-Forecasting demand with more accuracy by understanding customer buying cycles

IoT (Internet of Things) is interconnecting devices and physical objects with embedded sensors, to allow a continuous exchange of data over the internet.

IoT will be increasingly used by the logistics industry to offer innovative solutions to their numerous challenges. Some of the benefits are:

-Increased operational efficiency 

-Enhanced visibility into assets such as the location of vehicles and condition of cargo

-Increased security and real-time notification of missing or stolen assets

-Ability to predict the exact time of delivery leading to enhanced customer satisfaction

While the advantages are plenty, the application of Big Data and IoT in logistics can be intimidating for traditional players, prove costly in its initial deployment and may need additional training of personnel. 

But as the technology will mature, it will gain more traction and such technologies will become commodified. Business owners of all sizes can then easily adopt and reap its benefits.

Automation and Technology

Automation according to the management consulting firm McKinsey, will be among the top agenda for the logistics industry, owing to three factors: increasing demand from online retailers, a growing shortage of labor mainly in the US, and intriguing technological advances. 

Fully automated high-rack warehouses with autonomous vehicles patrolling the aisles would be more commonplace. Managers equipped with AR (Augmented Reality) glasses would ensure full visibility of the entire operations and coordination between robots and humans. 

By 2030 it is estimated that most logistics operations could be automated with AI taking over the repetitive and simple tasks performed by humans earlier.

Specialized Staff

The skillset required by people to work in the logistics industry will change dramatically. 2022, will demand staff well aware of the latest technologies. 

Some of the most sought-after profiles will be of experts in areas such as process automation, big data and AI. Those who could develop intelligent environments with the use of IoT would be highly valued. 

The globalization of the workforce is another trend since the majority of manufacturers will have multi-country operations. Due to the lack of labor in many countries such as the US, outsourcing logistics jobs could be very well a trend.

Green Logistics

Environmentally responsible practices are the need of the hour for all industries including logistics. Green logistics is one such trend that will be increasingly adopted by the industry.

The ways by which logistic companies can adopt green logistics are:

-Eco-friendly warehouses that use timers to gauge and monitor the usage of resources such as electricity, heat, water and gas in their facilities

-Electric and solar-powered vehicles

-Biodegradable packaging

-Using software to calculate the carbon footprint

Blockchain

Blockchain is the much-talked-about method of storing and transferring information in which the record of the transaction is maintained across several computers that are interlinked. 

The logistics industry, by using blockchain can integrate all the components into a single platform. This would enhance visibility as logistics providers, carriers, shipping lines and others in the value chain can use the same platform. Payments and invoicing can also be made from the same system. 

The benefits include: updating customers and companies of the product journey, identifying problems before they occur and unparalleled data protection.

Robotics

Robotics continue to be used increasingly in the logistics industry and is expected to remain among the top trends in the future as well. 

Many companies are increasingly using drones to make deliveries of smaller products. Driverless vehicles are also likely to become more and more common. 

Robotics can improve the productivity of the logistics industry drastically by speeding up monotonous and labor-intensive tasks. It does not intend to replace humans but by delegating repetitive tasks to machines, humans can focus on other higher-value tasks.

Conclusion

The future of the logistics industry looks buoyant, given the phenomenal rise of eCommerce and the increasing trend of online shopping. The aftermath of COVID-19 has also been instrumental to fuel the growth of logistics and international shipping.

The logistics market by end-use is projected to be lucrative for most segments and Healthcare is expected to top the charts.

To remain competitive and efficient, the industry players need to continuously upgrade in terms of processes and technology. The adoption of trends that are expected to dominate the industry in the future, such as the ones we discussed will become necessary for the industry players to sustain and flourish. 

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Tim Robinson is Digital Marketing Manager at PACK & SEND, a 25+ years old and respected brand in ecommerce, logistics, and freight delivery solutions. Tim has 20 years of combined experience in sales and marketing. Logistics, D2C, franchising, business planning, and operations management are his core expertise. Connect with Tim on LinkedIn.

biden
Archives, Global Trade Daily, International Trade, News

President Biden’s Targeted Exclusion Process

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The United States Trade Representative (USTR) is considering reinstating previously granted and extended exclusions on a case-by-case basis. Similar to the previous exclusion process, USTR has three considerations:

1. Whether the particular product remains available only from China

2. Whether reinstating the exclusion, or not reinstating the exclusion, will impact or result in severe economic harm to the commenter or other U.S. interests, including the impact on small businesses, employment, manufacturing output, and critical supply chains in the United States

3. The overall impact of the exclusions on the goal of obtaining the elimination of China’s acts, policies and practices covered in the Section 301 investigation.

In accordance with a USTR statement made on October 5, 2021, companies may submit comments either in support or opposition of the restatement of a particular exclusion. A list of the over 500 exclusions covered by the notice is posted separately on the USTR website here. The reinstated exclusions will be retroactive to October 12, 2021. The commenting period opens on October 12, 2021 and closes December 1, 2021.


Biden Administration’s New Approach to the U.S.-China Trade Relationship

The reopening of the Section 301 tariff exclusion process is the first action in the Biden Administration’s New Approach to the U.S.-China Trade Relationship. Ambassador Katherine Tai, the USTR, outlined the Biden Administration’s New Approach in remarks at the Center for Strategic and International Studies (CSIS) on October 4, 2021. Ambassador Tai identified four items as the starting point of this new approach:

-Enforcement of the Phase One Agreement;

-A new targeted Section 301 tariff exclusion process;

-Addressing concerns with China’s state-centered and non-market trade practices; and

-Working with allies to shape the rules for fair trade in the 21st century.

Following up on the second item, USTR issued its request for comments on the reinstatement of certain Section 3011 exclusions on October 5, 2021. Baker Donelson’s trade professionals expect additional actions as a result of the Biden Administration’s new approach to China and will continue to keep clients informed.

Background on the Section 301 Tariffs

In August 2017, the Trump Administration initiated a Section 301 investigation into China’s unfair policies and practices related to technology transfer, intellectual property, and innovation.2 In March 2018, USTR issued its Section 301 Report3 and determined that China’s actions related to intellectual property were unreasonable or discriminatory and burdened or restricted U.S. commerce. After unproductive engagement with China, USTR imposed tariffs on China’s imports as a response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property. USTR, however, established a process where companies could seek an exclusion from these tariffs and granted numerous exclusions for one year. USTR allowed companies to extend certain exclusions by written request. On December 31, 2020, all exclusions expired, except COVID pandemic-related exclusions.

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Lee Smith is an attorney and leader of Baker Donelson’s International Trade and National Security practice. He advises clients on matters involving export controls, customs compliance, trade remedy investigations, trade policy, market access, and free trade agreement interpretation. Smith can be reached at leesmith@bakerdonelson.com.

Robert J. Gardner is a public policy advisor in Baker Donelson’s Washington, D.C. office. He provides legislative and government relations guidance to clients on a variety of subjects, including tax, trade, appropriations, budget, infrastructure, and sanctions issues. Gardner may be reach at rgardner@bakerdonelson.com.

1 19 U.S.C. §§ 2411-2417; “Section 301” refers generally to Chapter 1 of Title III of the Trade Act of 1974.

2 Initiation of Section 301 Investigation; Hearing; and Request for Public Comments: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 82 Fed. Reg. 40, 213 (Aug. 24, 2017).

3 USTR, Findings Of The Investigation Into China’s Acts, Policies, And Practices Related To Technology Transfer, Intellectual Property, And Innovation Under Section 301 Of The Trade Act Of 1974 (Mar. 22, 2018) (Section 301 IP Report).

AI
Archives, Global Logistics, Global Trade Daily, Software

AI Beyond the Hype: This is Our Moment to Embrace Digitization

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AI for business is one of the most talked-about innovations and for good reason. As in other areas of our lives, it holds the potential to fundamentally alter the processes and structures humanity has been accustomed to for decades and, in some cases, even centuries.

Yet, like many other groundbreaking technologies before it, when it comes to real-world business processes, it’s understandable to feel that the recent attention around AI’s value has outpaced the current reality. Yes, today AI can more precisely tailor content recommendations in social media apps like Instagram, Twitter and YouTube and help refine the photos we take on our phones.

But where is the AI-driven revolution in the way we work—helping us do our jobs better, more efficiently, and unlocking value in unexpected places? We believe it’s here, today.

How do we know? Because at BT Sourced, our new standalone procurement company within the BT Group, we’ve already started to see the benefits. We’ve come to believe that, properly implemented, AI can be a game-changer—and that while there’s a lot of excitement about the future of AI, we’re proof that the future is now. Here’s why.


Why AI—and Why Now?

Out of sheer necessity, the COVID-19 pandemic accelerated what had been a gradual shift toward the rapid digitization of procurement. In the face of disruption, from remote work to shortages of goods and services across the value chain, having the adaptability to quickly source the best suppliers became critical. Agile procurement teams armed with cutting-edge technology were and will continue to be, best positioned to streamline sourcing, driving long-term growth and value for the BT customer and operating model.

Deloitte’s 2021 Global Chief Procurement Officer Survey found that driving operational efficiencies was the new No. 1 priority for CPOs, replacing reducing costs for the first time in the report’s 10-year history. In this next normal, procurement must modernize and simplify its processes to become faster and more agile for the near and long term.

The biggest barrier to transforming procurement is changing the way people work. Critically, the new AI-powered platform BT Sourced is using enables us to collaborate from any location by improving visibility, workflows, and communication across all functions. Increasing agility and efficiency is also key to achieving another important goal: enabling a greater focus on strategic initiatives and collaboration.

Adopting AI, along with tools that feature analytical intelligence and enable self-procurement, means our teams can now study recurring behaviors, empower end-users and discover new areas to contribute value. These new platforms are giving us the insights to make fast, data-driven decisions that benefit everyone throughout our value chain. They can be shared across the business, enabling us to work more closely than ever with our stakeholders while AI manages manual and repetitive tasks in the background.

AI for Good 

The financial benefits of AI and automation in procurement are clear. But what about other important goals such as inclusion and corporate social responsibility? How can AI in procurement support workforce development and contribute to the greater good?

At BT Sourced, we’re committed to expanding economic opportunity and reducing our environmental impact. In many ways, AI supports our commitment to more sustainable sourcing—from driving new efficiencies to enabling deeper analysis and awareness of environmental, social and financial risks throughout our supply chain. Now more than ever, we’re able to more precisely track compliance with our global responsibility model, sustainability criteria and principles of responsible behavior for suppliers regarding ethics, conduct, social issues and the environment.

We’re also leveraging AI to support supplier diversity and inclusion, expanding our network to include qualified alternatives from a base of top-performing, diverse small and midsize companies, increasing access to innovative service providers that may have otherwise been overlooked.

The Present and Future of AI

As the last year has proven, AI is no longer procurement’s future—it is our present and, without question, our future. Agile, value-added procurement requires the insights and efficiency that only AI and automation can deliver at scale. The pressing need to develop more responsible, inclusive supply chains and practices only makes the case for digital transformation stronger.

We have an unprecedented opportunity for change. Companies have a unique opportunity to move quickly to modernize their procurement technology and achieve benefits for both their stakeholders and their broader communities. We’ve arrived at the right moment to disrupt traditional models and processes, making the vision of a more efficient, sustainable and inclusive AI-powered future, a reality today.

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Cyril Pourrat is the Chief Procurement Officer at BT Group

food and drink
Archives, Global Logistics, Global Trade Daily

The Millennials Championing Change in the Food and Drink Industry

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Millennials have a great potential to change our culture. For the food and drink industry, change is nothing new. New tastes and influences constantly turn over menus and products that reflect consumer demand. However, young people today are forcing the hand of manufacturers and restaurateurs. Demand for unique, varied, and stimulating food and drink is higher than ever.

Here, Electrix, a provider of electrical junction boxes for food and drink manufacturers, explores the trends that millennials enjoy and how it can help restaurants, bars, and stores get a competitive edge.

Boundary pushing

Millennials thrive on uniqueness, and seeking out new experiences is at the core of food and drink culture for this generation. 72 percent of millennials said that they would prefer to spend money on experiences over material things. Food and drink brands recognizing this shift in behavior are beginning to question whether they are selling a product or selling an experience.

To enjoy unique experiences, millennials will seek out opportunities to try new foods and drinks, exploring flavors that have been traditionally hidden in mainstream culture. In the US, international cuisine has seen accelerated growth. In fact, international cuisine is expected to outpace traditional food categories within the next three to five years, according to the Food Institute.

This is happening because the cuisine offers new experiences. Boundaries must be pushed if opportunities are to be found. This journey begins by finding a unique selling point of food and drink and understanding how to create an experience around it.

No option is not an option

Millennials demand choice, and brands that can offer variety are succeeding with millennial demographics. It shouldn’t be surprising. Young people today are familiar with choice: picking from thousands of movies on Netflix, browsing an expansive selection of nut milk in a local café, or debating how and where to eat their food. The latter has certainly been popularized during the pandemic.

Restaurants have not only seen the opportunity in food delivery, but lockdowns have forced restaurant-quality food to come to the customer, rather than the customer heading to the restaurant.

The trend of home delivery options is expected to grow. While in 2017, restaurant to consumer delivery in the US was valued at $11.5 billion, by 2020 it achieved $15.6 in sales. Projections suggest it will further grow to $18.5 billion by 2024. As home delivery options increase, proactive food and drink businesses that seize the opportunity will similarly experience growth. The choice to eat in, take out, or use delivery services is essential for millennials.

Choice isn’t just about convenience. Food and drink brands should curate offerings that reflect lifestyle choices. Does a food brand offer vegan alternatives or meet any other dietary requirements? Can a bar offer a selection of non-alcoholic drinks? Creating choice is creating inclusivity, and when looking for new food and drink options, this offering will give businesses a competitive edge.

Stimulating all the senses

Food and drink aren’t just for the pleasure of tongues. Today, millennials expect an aesthetics experience that they can share with friends and family on social media. In fact, ‘#Food’ has been tagged over 456 billion times on Instagram. ‘#Drink’ and ‘#Cocktails’ have been tagged over 47 million and 30 million times respectively. Millennials make up the main bulk of Instagram users, with those aged between 18 to 34 making up 62 percent of global users.

One survey found that 69 percent of US millennials in this age range took a photo of their food before eating. So, should those in the food industry be working to make their food look great as well as taste great? Absolutely!

Food and drink that appeals to all the senses are gaining ground, whether in restaurants or on grocery store shelves. Consider social media sensations such as Salt Bae, sprinkling seasoning over steak. The recent trend of baklava, tossing pistachio pastry into the air. Or Martinelli apple juice, which replicates the sound of an apple when the bottle is bitten. Each is exciting, unique, and goes down a storm on social media, building millions of views on platforms such as Instagram and TikTok.

Millennials are forcing the food and drink industry to be more than just connoisseurs of flavor. Value in other aspects must be recognized and actioned to encourage millennials through the door.

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Sources

https://www.cnbc.com/2016/05/05/millennials-are-prioritizing-experiences-over-stuff.html

https://foodinstitute.com/event/the-rise-of-international-cuisine-and-flavors-in-the-us/

https://www.statista.com/forecasts/891082/online-food-delivery-revenue-by-segment-in-united-states

https://www.statista.com/statistics/325587/instagram-global-age-group/

https://www.huffingtonpost.co.uk/entry/study-says-69-of-millennials-take-photos-of-their-food-before-eating_n_58b73078e4b0284854b39105

https://www.tiktok.com/tag/martinelli?lang=en