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The emergence of logistics platform

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Archives, Global Logistics, Global Trade Daily

The emergence of logistics platform

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Since the start of the pandemic in early 2020, the logistics supply chain industry began to experience difficulties. Due to the air traveler restrictions in most countries, air transport was the first to reduce their normal scheduled flights which disrupt air transport shipments. Then, ocean transport experienced its own set of problems; vessels had to berth longer out of the ocean since ports were operating at half capacity because of the alternating work schedule of its workers. Problems worsened with an increased demand of containers capacity by Asian manufacturers due to an explosive demand by e-commerce. As a result, ocean liners were not quick enough to return empty containers back to Asia, which created a supply chain backlog and a price increase to the industry.

The International Trans-Pacific Ocean freight charges significantly increased over the last two years. For example, the cost of moving shipment from South East Asia regions cost $3,000 USD/container to the US. It gradually increased every other month and reached $11,000 USD/container by December of 2020, an increase of more than 300% in over a year. The cost reached $16,000 to (US-West Cost) and $19,000 to (US-East Coast) in main ports by December 2021. An inland transport to the final destination, for example, Atlanta, costs $26,000/container. Imagine, a container that has 1,000 items from Asia to the US with a transport cost of $3.00 had become $26.00/ item. It is why inflation has been unusually high.


 

The logistics company (transporter) has been operating an offline business method for decades. Operating business in an offline environment makes operation and administration slow, expensive and non-transparent. Quotations given by transporters listed too many itemized charges, making it difficult for shippers to analyze. Charges at origin and destination varies among transporters. Shippers who want to get five quotations must make inquiries to five different local transporters, requiring about 2-3 days for one quotation to be delivered. Companies using an offline business method lack efficiency and are far behind those who have adapted to technology. We are now living in an online world where platform news, social communication and shopping is done in an instant, and businesses should use a technology platform to its advantage.

Shippers who participate in Logistics Platform would be able to analyze available transporters at Origin and at Destination. Logistics service information is properly displayed and all questions can be answered directly by transporters with the chat feature in the platform. With just a few clicks, shippers will be able to confirm shipments to transporters with transparent detailed services: pricing, schedules, document requirements at origin and at destination. Once the shipment is accepted by transporters, work-order and reminder note are issued by the platform to alert everyone involved. A shipper that paid $26,000 from Jakarta to Atlanta in an offline environment, would only pay $22,500/container in platform business model.

Internet technology is an important factor in our daily lives. The relationship between transporters and their shippers is now more interactive with direct communication. A platform with its embedded algorithm into digitalization would speed up and minimize transporter manual operation and paper administration. The status of delivery in Bangkok can be instantly viewed by the Shipper in Amsterdam. The identity of the truck and driver is available for shippers in Tokyo to track before shipment is released. Digital Proof of delivery in Los Angles is transmitted to the transporter in San Francisco to speed up invoicing and confirmation of acceptance by Shipper. Warehouse space becomes easily searchable with the selection of available warehouse operators where the platform operates. Decision-making is faster with less human involvement and operation becomes simpler.

We are now able to do almost everything using our smartphone, and it has become our identity and trusted 24/7 companion. Any individual with a smartphone can create products and sell online from every corner in the world. There are now more individuals who have joined Global Digital Market as either Buyer or Seller, driving the demand of logistics services. A platform that fits into the Business-Consumer trend will open up new channels and bridge the transition from traditional systems would attract many followers. The integration of the Logistics Industry with Internet Technology will be beneficial for all parties involved. With no barriers, shippers in Jakarta able to make a seamless transaction to select transporter at Jakarta and at Atlanta via smartphone or computer in just a few clicks. Companies that fail to catch up with Digitalization and Automation will lose out their Development Growth to connect the Online World, which demands direct interaction, competitive pricing and consolidated services.

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Archives, Global Logistics, Global Trade Daily, Special Reports

Helping the World is Good for Business

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There aren’t many times in any industry when going the extra mile to do the right thing is actually really good for business too. But it does happen.

Skeptical? You’re not alone. After two years of juggling, pivoting, problem solving, reimagining and then doing it again – all of which have drained energies and operational budgets – any transportation logistics executive in charge of budgeting, could be forgiven for taking a hard line on non-essential expenditures.

Proactively protecting the environment? That’s a must-do for every industry, but it’s low on a priority list that has been exclusively focused on finding and retaining carrier capacity and keeping the flow of goods moving across the country and around the world.


 

As we all continually re-examine ways to cut costs and realize even greater operational efficiencies, improving environmental protocols – and reducing C02 emissions specifically – presents a rare win-win dynamic in which operations leaders can preemptively align around incoming regulations, optimize network efficiencies and reduce C02, an increasingly problematic contributor to greenhouse gasses (GHG’s) and overall environmental impact. If all of that sounds a little like having your cake and eating it, you’re not wrong. Let’s dig in, get some broader perspective and take a closer look at the issues and strategic steps to lowering emissions and raising profits.

The Global Perspective: efforts to reduce emissions

Protecting the environment seemed more an extreme activist position a few decades ago but it’s rightly now a global perspective – and with good reason. The Paris Accord – an agreement by countries around the world to reach net zero carbon emissions by 2050 – mandates a target of no more than a 1.5 degree Celsius change in global temperature beyond pre-industrial levels. According to Stanford University, as of March 2021, 64 countries signed the agreement but the race is on. While pandemic lockdowns and other confinement measures cut global emissions by 2.6 billion tons of CO2, about seven percent below pre 2019 levels, experts say that level of control cannot be maintained and the world is on track to increase global temperature by 3-5 degrees Celsius by the end of the century: a world-changing problem.

The good news is that change is being affected at the global, national, corporate and individual levels. Or at least initiatives are in place to fast track new behaviors. At the international level, 27 countries have implemented a carbon tax, imposing fees on industries for carbon emissions in an effort to incentivize a switch to improved practices and both green technologies and power sources. Pro-tax countries include Argentina, Canada, Chile, China, Colombia, Denmark, the European Union (27 countries), Japan, Kazakhstan, Korea, Mexico, New Zealand, Norway, Singapore, South Africa, Sweden, the United Kingdom, and Ukraine. Others considering joining include Brazil, Brunei, Indonesia, Pakistan, Russia, Serbia, Thailand, Turkey, and Vietnam. In addition, 64 carbon pricing initiatives are currently in force across the globe on various regional, national, and subnational levels, with three more scheduled for implementation, according to The World Bank. Together, these initiatives have been estimated to cover 21.5% of the global greenhouse gas emissions in 2021.

A gradual shift to renewable energy worldwide is also underway with solar-generated power leading the way. While coal and gas still account for around 60% of the world’s energy, renewable forms of energy production are growing fast. According to Earth.org, worldwide solar power production has grown 25% year-on-year with overall renewable energy now accounting for 29% of the global power supply and the first countries, like Iceland, being close to 100% renewable-energy-powered. This pace of change will pick up, but it’s also going to require the major industries that generate large amounts of C02  – for example manufacturing and livestock-based meat production – as well as other private sector companies and every team within them – to affect change from the top down and bottom up. While the earth’s agriculture goliaths tackle damaging methane gas emissions (9.6% of all U.S. greenhouse gas emissions), a society-wide movement is beginning, with the adoption of consumer and coming commercial electric vehicles, single use plastics, ride sharing and plant-based food production.

The C-Suite Perspective: targeting the supply chain and improving visibility

While all of that is tremendously encouraging and needed, corporate America and its global counterparts are being asked to do more. Forbes reports leaders now recognize the need for their companies and organizations to drive more proactive environmental change through C02-limiting practices across the organization but particularly in relation to the supply chain. According to the Environmental Protection Agency (EPA), company supply chains now account for a staggering 90% of an organization’s greenhouse gas (GHG) emissions.

While changes to other emissions-reducing strategies, including business travel practices, electric vehicles and renewable energy use, all help corporations lower their carbon footprint, tackling supply chain emissions from manufacturing to the transportation, handling and management of goods is the single greatest impact generator for many businesses. Kevin Sneader, global managing partner, McKinsey & Company hits the nail squarely on the head about exactly what’s needed to affect this level of network-wide change:

“While there wasn’t much debate about the science [of necessary reduction of C02 emissions], executives and investors were concerned about the lack of reliable data on the efforts companies and society are making, not to mention their impact. Greater clarity is required in order to speed development of new standards to help markets act more efficiently and reward progress.”

The answer lies, as with many operational efficiencies initiatives, in clear access to data across your supply chain operation. How much C02 is being emitted at any given time? What are the major causes, modes or geographies and other contributing variables? Only by tracking this data, by embedding an enterprise-wide approach to ongoing C02 monitoring, can we build effective strategies to manage and reduce emissions and realize greater efficiencies at the same time. This is especially critical post global pandemic as many industries re-set and examine better practices to mitigate risk and manage challenges.

Creating Sustainability Practices in Transportation Logistics

When it comes to creating sustainable practices in logistics transportation, the great news is that the train has already left the station. Meaning shippers are already organically looking for better ways to improve execution and lower costs. And typically those changes – optimizing network and mode, carrier/LSP selection via advanced routing as well as packaging strategies to reduce dimensional weight and trim cost – will all contribute to emissions reduction. The challenge, of course, comes in how to measure any impact from these actions as part of an overall carbon reduction program.

How do we begin thinking about C02 monitoring and measurement? How do we acquire quantitative proof of progress or KPI’s that can demonstrate we’re delivering against our footprint- reduction goals? Measurement needs to include everything from the role warehouse management, packaging, product sourcing all play in emissions as well as, of course, the movement of inbound materials or inventory delivery and outbound transportation of goods across mode, region and geography.

Tracking CO2: Supporting a Broader Sustainability Initiative

As we set about to review sustainable practices within an operation, it’s a good idea to adopt a broader view of sustainability. Yes, transportation will be a major driver of C02 emissions and require monitoring, but let’s review other contributing factors too. Do your carriers across your network practice emissions-reduction strategies? Things like load consolidation, which will typically lower cost per unit weight, reduce your number of shipments, reduce fuel needs and lead to an overall reduction of C02. If they’re not using basic emissions-reduction practices or considering doing so, it may be time to find new carriers.

Unfortunately, there is no global standard to measure CO2 in relation to transportation logistics which makes comparison across the industry extremely difficult at present. In the United States, the EPA’s Smartway program is attempting to standardize CO2 coefficients but not all companies have adopted a single source of CO2, nor a common definition as it relates to transportation logistics. Until this happens, the best course of action is internal measurement: consistently monitoring and measuring across your operation and benchmarking emissions- reduction against your own goals and initiatives to affect them. Only by doing this and having the data-driven proof points can we set new goals as well as broader sustainability targets that can all be reported to customers, partners, investors and other stakeholders.

It’s All About Data: FAP’s Role in CO2 Measurement

Visibility is the key to delivering on your targets for sustainability and emission reduction, and that can only come from data collection, curation and analysis. Two fundamental components for measuring CO2 emissions in transportation logistics are weight and distance. How large and heavy are my goods? How far and by which means do they need to travel, what’s the fuel required and how efficient is consumption? A good quality Freight Audit and Payment (FAP) system tracks weight and lane, which can help calculate distance, plus additional variables, making it a foundational step and required tool for any CO2 measurement and reduction effort.

While there is no single source or method to deriving CO2 yet, distance, weight, and mode of transportation are all key fundamental elements that support the calculation of CO2 related to transportation logistics. The bottom line is that by combining these input values with CO2 coefficients, it’s possible to calculate the CO2 associated with any shipment, regardless of mode of transport and geographic region.

A natural place to begin is where carbon emissions reduction has a material impact (transportation logistics) and where transportation spend management data is available (historical record of shipping activity with specific distance, weight, mode of transport available).   Dashboards and trends along with KPIs for both cost to serve metrics (cost per unit, cost per shipment, cost per unit weight) and carbon emissions (CO2 by lane, by LSP) create awareness and can be used to establish baselines and alignment for both carbon reduction and transportation spend optimization. This same dashboard can be used by logistics, procurement, operations management, and executives to align on, and report, progress at all levels of the organization at any given time.

Getting the Most from Your KPI’s

According to Forrester, 59% of all companies worldwide now follow data-driven strategies and that number is growing as even small-to-medium sized organizations realize the benefits of data analysis. As you build your sustainability protocols and measurement practices to get the most from your KPI’s, two things are important.

Continuous Process Improvement

Set goals and use appropriate KPI’s and influencers (cost per unit of distance, CO2 per unit of distance) which will deliver ongoing process improvements: proper supplier and LSP management across your operation as well as more informed decision making for everything from mode of transportation and packaging choice all the way to corporation level decisions around emissions control strategies.

Optimized Strategies

Build carbon emission reduction strategies into your overall optimization strategies. They’re one and the same. Putting in place operational changes to improve efficiencies will reduce emissions. Setting emissions reduction goals will necessitate changes that improve efficiency. And consistent, standardized and high quality data is essential for both.

Do both of these things: continually drive improvement across every process and embrace data- driven decision making to optimize strategies, and you’ll put in place the steps and tools to not just lower C02 emissions, but related operational costs too.

___________________________________________________________________

Steve Beda is executive vice president of customer solutions for Trax Technologies, the global leader in Transportation Spend Management solutions. Trax elevates traditional Freight Audit and Payment with a combination of industry leading cloud-based technology solutions and expert services to help enterprises with the world’s more complex supply chains better manage and control their global transportation costs and drive enterprise-wide efficiency and value. For more information, visit www.traxtech.com.  

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Archives, Global Trade Daily, Imports/Exports

China Strengthens Leading Position in Global Imports of Zirconium Ores and Concentrates

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

The global zirconium ore and concentrate market soared by +16% y-o-y to $2.4B in 2020. China, Australia and the U.S. lead global zirconium ore and concentrate consumption, with a combined 78%-share of the total volume. China prevails in global zirconium concentrate imports, steadily increasing the volume of purchases over the last decade. In 2020, the world average import price for zirconium ores and concentrates amounted to $987 per tonne, rising at an average annual rate of +1.1% over the past ten years.


 

Global Consumption of Zirconium Ores and Concentrates

The global zirconium ores and concentrate market soared to $2.4B in 2020, increasing by +16% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, indirect taxes and intermediaries’ margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.2% from 2010 to 2020.

The countries with the highest volumes of zirconium ores and concentrates consumption in 2020 were China (1.2M tonnes), Australia (711K tonnes) and the U.S. (98K tonnes), together comprising 78% of global consumption. These countries were followed by Spain, India, Senegal and South Africa, which together accounted for a further 10%.

In value terms, China ($976M), Australia ($529M) and the U.S. ($155M) constituted the countries with the highest levels of market value in 2020, together accounting for 70% of the global market. These countries were followed by Spain, India, Senegal and South Africa, which together accounted for a further 14%.

In 2020, the highest levels of zirconium ores and concentrates per capita consumption was registered in Australia (28 kg per person), followed by Senegal (3 kg per person), Spain (2 kg per person) and South Africa (1 kg per person), while the world average was estimated at 0.33 kg per person.

Global Imports of Zirconium Ores and Concentrates

In 2020, supplies from abroad of zirconium ores and concentrates decreased by -8% to 1.5M tonnes, falling for the second year in a row after two years of growth. In value terms, zirconium ore and concentrate imports shrank markedly to $1.5B (IndexBox estimates) in 2020. Overall, total imports indicated a mild expansion from 2010 to 2020: the value increased at an average annual rate of +0.5% over the last decade.

China prevails in zirconium concentrate import structure, resulting in 1.1M tonnes, which was approx. 72% of total imports in 2020. It was distantly followed by Spain (101K tonnes), generating a 6.7% share of total imports. India (56K tonnes), Malaysia (35K tonnes), Italy (35K tonnes) and the U.S. (24K tonnes) held a minor share of total imports.

From 2010 to 2020, the average annual growth rates of zirconium ore and concentrate imports into China stood at +4.0%. Over this period, China increased its imports from 732K tonnes to 1.1M tonnes. From 2010 to 2020, China (+21 p.p.) significantly strengthened its position in zirconium ore and concentrate imports.

Malaysia (+6.3%) and India (+1.8%) also displayed positive paces of growth. Moreover, Malaysia emerged as the fastest-growing importer globally, with a CAGR of +6.3% from 2010-2020. Meanwhile, the U.S. experienced a relatively flat trend pattern. By contrast, Spain (-3.6%) and Italy (-9.9%) illustrated a downward trend over the same period.

In value terms, China ($869M) constitutes the largest market for imported zirconium ores and concentrates worldwide, comprising 59% of global imports. The second position in the ranking was occupied by Spain ($142M), with a 9.6% share of global imports, and it was followed by India, with a 5.3% share.

In 2020, the global average import price for zirconium ores and concentrates amounted to $987 per tonne, declining by -9.5% against the previous year. Over the period under review, import price indicated a modest increase from 2010 to 2020: its price increased at an average annual rate of +1.1% over the last decade.

There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was the U.S. ($2,000 per tonne), while China ($1,000 per tonne) was amongst the lowest. In 2020, the U.S. attained the most notable price growth rate, while the other global leaders experienced more modest paces of growth.

Source: IndexBox Platform

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Archives, Global Logistics, Global Trade Daily, Trucking

Creating an Employee Care Package for Trucking Employees

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Trucking professionals are indispensable global workforce members. Goods wouldn’t reach their destinations without them, leaving consumers everywhere seeing nothing but empty shelves at their favorite stores.

However, sometimes, these hard-working people who spend much of their time on the road can forget how much they’re needed and appreciated. That reality opens an excellent opportunity for their employers to make care packages for their team members. Here are some great gifts to consider for anyone in the trucking industry.

Seat Cushions

Being a professional truck driver means spending a lot of time seated. More specifically, federal trucking limits in the United States stipulate that a person can drive for a maximum of 14 consecutive hours before going into a mandated 10-hour off-duty period.

Being in the same position for so many hours at a time can cause a person to develop pressure points. However, specialized seat cushions can help drivers stay comfortable while they’re behind the wheel. Some seat cushions for truckers provide extra lumbar support. That makes them ideal for people who already deal with back discomfort or want to avoid developing it as a consequence of the job. However, others don’t have built-in backrests.

Many options also exist concerning what provides the necessary support to the user. Some are inflatable, but there are also memory foam and gel-filled possibilities. Choosing the outer material for the cushion is also important. Buyers should keep comfort and user-friendliness in mind by considering things like whether the fabric is extra soft, has moisture-wicking capabilities or a washable cover.

Anti-Sleep Alert Products

Even drivers who do everything they can to stay well-rested will inevitably have some instances where they start to feel sleepy. Unfortunately, if a person experiencing that doesn’t act in time, the sleepiness could result in disastrous consequences.

Data from the U.S.National Highway Traffic Safety Administration indicated there were 697 fatalities caused by crashes associated with drowsy driving in 2019. Avoiding such accidents starts with encouraging drivers to take rest breaks when they start to feel tired. However, people don’t always know how tired they are until they begin nodding off.

That’s why people should consider adding an anti-sleep alarm to a care package for trucking team members. These small and lightweight accessories attach to various parts of the body, including the hands, behind the ear and the neck. They detect signs that people are getting tired, then emit audible warnings.

After hearing them, drivers would realize it’s time to pull over and take steps that’ll help them become more alert. However, feeling permitted to stop when necessary has a lot to do with the company culture. If a driver feels they will receive negative repercussions for resting when they truly need a break, some may try to push themselves too far.

Branded Coffee Mugs

When truck drivers need perking up during a long shift, coffee is usually one of the most accessible ways to get it. That’s why a coffee mug is a thoughtful item for a trucking care package. Statistics show that 62% of adults in the United States drink coffee daily.

However, the people giving these products to team members should go beyond picking a standard type sold in many online and physical stores. It’s ideal if the mug’s design features the employer’s name, logo, contact details and other specifics. Having an accessory like that helps a person take pride in where they work while appreciating the practicality of the present.

A branded coffee mug could also be an excellent recruitment tool. Truck drivers typically make from $50,000-$100,000 annually depending on experience and the nature of their duties. Those that your team member encounters at truck stops, hotels or otherwise along a route may be interested in working for a new company for various reasons.

A branded coffee mug is a smart way to promote a trucking company to others. It could all happen naturally while the recipient drinks their cup of joe while on a break. It’s also a good gift for people who aren’t coffee drinkers. After all, a person could use it for tea or even water. Staying hydrated is an essential part of remaining healthy while on the road.

Organizational Gifts

A truck is the driver’s home while they’re on the road. A clean desk can help office workers stay productive, and the same is true for a person who spends their time behind the wheel for work. Many professional truckers get creative with their methods. For example, Velcro strips are handy for attaching hard products, like boxes, to flat surfaces. However, there are also plenty of purposeful gifts that can help a trucker achieve an organizational level that helps them feel more comfortable and less stressed.

Many of them help people make the most of available space, such as by featuring designs that let storage containers hang over the back of a seat. A hanging toiletry bag is also a useful gift to include in a trucking care package, especially since so many professionals spend days on the road at a time. People choosing these gifts should also think about whether the budget might allow for getting an organizer monogrammed or adding another type of personalization.

It’s not always easy to know which challenges people encounter most while trying to get their trucks organized. Similarly, it may not be feasible to buy different products for each care package recipient depending on their needs. An alternative is to take a survey and find out what kinds of products would help recipients best stay organized. Then, purchase the items of most benefit to the largest number of truckers at the company.

12-Volt Coolers

Trying to have fast-food for every meal as a trucker likely isn’t sustainable from a financial point of view, and it’s not an ideal option for long-term health. That’s why many truckers prepare meals before going out on the road. After that, they need somewhere to keep them until it’s time to eat.

That’s why a 12-volt cooler is another fantastic addition to a care package for trucking professionals. Then, people can keep food cold without ice by plugging these gadgets into the truck’s cigarette lighter.

Some coolers even have settings that allow people to keep food hot, too. Others have extra-long cords that give people more flexibility in where they place the cooler inside the truck.

As people browse for coolers to give truckers, they’ll get the best results by trying to envision themselves in the position of the recipients. Some of the administrative members at a trucking company may never spend the hours driving per day that the professional drivers do. However, imagining the features or design choices that users would find most valuable will increase the chances that recipients genuinely love their coolers and use them during all their trips.

Delight Trucking Professionals With These Ideas

The suggestions here will get people off to a good start as they shop for items to put into a trucking employee care package. When these professionals get reminders of how they’re valued members of the workforce, they’re more likely to have higher morale, which could cause associated benefits, such as better productivity and safer driving.

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3pls, Archives, Global Logistics, Global Trade Daily

Third-Party Logistics Providers Need Data Analytics to Save Money

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Logistics data analytics can provide an invaluable competitive edge to third-party logistics (3PL) providers. 3PLs face a rapidly changing market. Supply chain disruptions and the rapid growth of e-commerce mean they must be ready to adapt if they want to continue providing high-quality services for their customers.

Data analytics allow 3PLs to uncover new insights to improve decision-making and provide cost savings.

How 3PLs Can Leverage Logistics Data Analytics

Today, businesses of all kinds have access to more information than ever — and a range of analytics tools that can extract deep insights from large data sets.

Almost any business can benefit from data analytics, but 3PLs are in a particularly good position to use these tools. These companies can secure a few significant advantages by using them.

1. Improved Risk Management

Modern 3PLs face various risks. The right data makes it easier to take a proactive risk management approach, making better decisions regarding carrier selection, freight tenders and the business partnerships the 3PL will establish.

Better data can also make it easier to identify potential risks and their potential impact. Identifying these threats can make a proactive risk management approach easier to implement and more effective — potentially providing significant cost savings.

Some 3PL tools even utilize advanced technology like AI to improve supply chain resilience and risk management. 3PLs can use them to uncover insights that less advanced analytics technology wouldn’t be able to find — securing a valuable competitive advantage.

2. Lower Transportation Costs

Data collected from the supply chain can make it easier to visualize and manage daily operations. 3PLs can use data dashboards and similar tools to centralize the information they gather and provide it in an easy-to-understand format for managers, supply chain specialists and key decision-makers.

3PL team members can then more easily track key KPIs — like cost per unit, order accuracy and processing time. Analytics tools will also help the 3PL identify relationships between business practices and these KPIs, making it easier to spot operational bottlenecks and inefficiencies.

3. Stronger 3PL-Client Relationships

Data from the supply chain and logistics operations can make it much easier to analyze and respond to changes in the global supply chain market. This information can also make 3PLs a better business partner to their clients. The right shipping and logistics analysis allows a 3PL’s associates to secure a valuable competitive advantage.

One recent study of the 3PL market found that interest in robotics and data analytics is rising fast among shippers. More 3PLs are adopting data analytics technology, and these tools may become critical for strong client relationships. Clients may look elsewhere if a business can’t offer a tool its competition can.

Data Analytics Can Provide Major Cost Savings

Many of the advantages data analytics provide can help 3PLs save time and money. Managing risk reduces the chance that an unforeseen hazard will cost a 3PL significant resources.

Lower transportation costs can reduce one of the biggest expenses for a 3PL — and allow the company to pass cost savings on transportation to its clients.

Better relationships with clients can provide steadier business for a 3PL, potentially decreasing costs associated with marketing and client relationship management.

3PL Data Analytics in Practice

Various 3PL data analytics approaches exist. These data analytics strategies offer benefits throughout an organization by providing workers with better information that can streamline operations or be passed onto business partners and clients.

Supply Chain Visibility and Transparency

Low supply chain visibility can make accurate predictions about availability, shipping times and processing speed much more difficult.

New data-collection and organization tools allow 3PLs to develop a much deeper understanding of how products are moving through the supply chain and how effectively current shipping partners are managing their operations.

Supply chain management tools may also lay the foundation for IoT-powered tracking and transparency. The right Internet of Things (IoT) tracking devices will let 3PLs monitor goods continuously as they move through the supply chain. These devices can provide information about a shipment’s current location, speed and shipping conditions.

This information can make it easier to track goods and predict shipping speed or delivery timing.

IoT supply chain monitoring may be especially valuable for 3PLs that offer cold chain management services. The same IoT device can track a shipment’s current location and temperature. It can immediately alert drivers and managers of an excursion, allowing them to respond quickly to prevent product spoilage.

Data-Driven Resource Planning

Enterprise resource planning (ERP) is an essential investment for any 3PL. It makes it much easier for managers to effectively understand and react to the business’s current resource planning needs.

Resource planning tools — along with software like warehouse management systems (WMS) and contact management systems (CMS) — can make managing essential business resources much easier.

These systems can also automate many administrative processes, like the generation of customer reports, helping to streamline client communication and business management.

KPI Dashboards and Data Visualizations

New data analytics tools allow 3PLs to centralize and organize information by using data dashboards. For example, KPI dashboards can provide managers and executives with a snapshot of current operations, performance and overall business health.

Strategic inventory dashboards can offer a real-time view of how inventory moves through the supply chain, making it easier to identify possible process issues.

Most logistics data analytics tools marketed to 3PLs offer a great deal of customization, so these tools can be adapted to fit the organization’s needs. They can provide information on different KPIs, prioritizing certain types of data and generating customized reports for clients, business partners or regulators as needed.

Using Logistics Data Analytics to Save Money in a Changing Market

The right analytics tools allow 3PLs to streamline their operations, save money and build stronger client relationships. Data dashboards, supply chain visibility tools, and systems like ERPs or WMSs can make it much easier to manage essential processes, automate work and make more informed decisions.

Early adopters of data analytics will secure a competitive advantage over other 3PLs, making them a more valuable investment for their clients.

Archives, Global Trade Daily, News

Rising regulatory approvals to drive bioglass fiber market expansion in Europe

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Over the recent years, an extensive array of bioglass benefits including good osteostimulativity, osteoconductivity, mechanical strength, and degradability have been instrumental in unlocking critical growth opportunities for bioglass fiber market players across the orthopedics application. Upon implantation into the body, these products effectively reinforce the bonding between hard and soft tissues, promote the formation of dense HA (hydroxyapatite) layer on the surface, and rapidly combine with bone tissue for inducing and accelerating the process of bone growth.

These properties of bioactive glass have propelled an increase in studies pertaining to BG application in numerous orthopedic areas comprising BG bone cement, BG nanoparticles, BG coating, BG nanofibers, drug and biological factor-load BG, BG scaffolds, injectable BG-based hydrogels/pastes, metal ion-loaded BG, and others. Similar initiatives are expected to augment bioglass fiber market size, which is anticipated to surpass USD 15.3 million by 2027, according to Global Market Insights Inc.

Here are a few key trends that are slated to stimulate the business landscape in the near future:

Rising demand for borate-based glass and glass ceramic products

While the market revenue from borate-based glass is estimated to exhibit a CAGR of 9% through the estimated period, the glass ceramic segment is expected to account for an appreciable valuation through 2027.

This growth can be attributed to the mounting adoption of glass ceramics in dental care products including corrosion inhibitors and filler materials. Optimum bone-grafting ability and good biocompatibility are additional factors expected to push product demand over the coming years.

Growing research activities pertaining to dental application

Numerous organizations are taking a keen interest in conducting research initiatives centered on the applicability of bioglass fiber in the field of dental care. One such study, published in May 2021, aimed at investigating the bioactivity and cytotoxicity of a novel nanocomposite containing nBGs (nanoparticles of bioactive glass) on human dental pulp stem cells (hDPSCs).

The research found that the use of nBG/BD not only enabled hDPSC proliferation and attachment but also escalated the expression of ALP in mineral-producing cells. The findings are slated to create opportunities for the deployment of nBG/BD in vital pulp therapies.

Europe bioglass fiber market: Increasing number of product approvals to drive business landscape in the region

The European region has recorded an upsurge in the approval of newly developed products by regulatory bodies across various countries. For instance, in May 2021, Prosidyan, Inc., secured two CE Marks for its FIBERGRAFT BG Morsels, FIBERGRAFT BG Putty GPS, and FIBERGRAFT BG Putty. Made from proprietary micro- and nano-sized bioactive glass fibers, the FIBERGRAFT substitute provides numerous advantages such as optimized rates of resorption, high surface area, and direct connectivity.

Steps taken by leading industry players: A brief overview

Major companies in the bioglass fiber industry comprise Mo-Sci Corporation (The Heraeus Group), Vetra Biomaterials, Corbion Biotech, Inc., Prosidyan, Inc., ETS Wound Care LLC., and others. These participants are depicting a greater inclination towards the implementation of strategic initiatives including collaborative agreements, mergers, and acquisitions for consolidating their position in the market.

For instance, in September 2021, The Heraeus Group acquired ETS Technology Holdings LLC and Mo-Sci Corporation. The move strengthened the group’s healthcare and medical technology portfolio, which comprises market leadership in the supply of medical devices and components.

In a nutshell, the increasing product adoption across healthcare systems in developed countries, owing to multiple benefits such as voluntary funding, government schemes, and attractive medical insurances, is expected to bolster bioglass fiber market share through the forthcoming years.

Archives, Global Trade Daily, Imports/Exports

China’s Propene Imports Fall to $2B

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

China’s propene imports shrank from $2.9B in 2019 to $2B in 2020. In physical terms, purchases fell by -20% y-o-y to 2.5M tonnes. South Korea, Japan and Taiwan constitute the largest supplies, accounting for nearly 80% of China’s propene imports. Last year, all these countries decreased propene exports to China, while Taiwan recorded the most prominent drop in supplies.

China’s Propene Imports

Propene imports into China dropped remarkably to 2.5M tonnes in 2020, which is down by -19.8% on the year before. In value terms, propene imports reduced from $2.9B in 2019 to $2B (IndexBox estimates) in 2020.

In 2020, South Korea (1.3M tonnes) constituted the largest supplier of propene to China, with a 52% share of total imports. Moreover, propene imports from South Korea exceeded the figures recorded by the second-largest supplier, Japan (599K tonnes), twofold. Taiwan (Chinese) (294K tonnes) ranked third in total imports with a 12% share.

In 2020, the volume of purchases from South Korea dropped by -11.7% y-o-y. Imports from Japan and Taiwan reduced by -15.0% y-o-y and -56.7% y-o-y, respectively.

In value terms, South Korea ($1.1B) constituted the largest supplier of propene to China, comprising 52% of total imports. The second position in the ranking was occupied by Japan ($482M), with a 24% share of total imports. It was followed by Taiwan (Chinese), with an 11% share.

The average propene import price stood at $1,000 per tonne in 2020, approximately mirroring the previous year. Average prices varied noticeably amongst the major supplying countries. In 2020, the highest prices were recorded for prices from Japan ($1,000 per tonne) and Taiwan (Chinese) ($1,000 per tonne), while the price for South Korea ($1,000 per tonne) and the United Arab Emirates ($1,000 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Japan, while the prices for the other significant suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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

How to Identify and Address Productivity Gaps Among Supply Chain Employees

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Productivity has always been a leading concern for supply chain companies. As the industry grows increasingly competitive and faces mounting disruptions, it’s become an even more pressing concern.

A recent survey found that nine in ten supply chain leaders say they need to increase hiring to meet peak demand. Ongoing labor shortages can make that difficult, so organizations must also make the most of their current workforce. They need to maximize their productivity.

Boosting productivity begins with finding areas where it needs improvement. Here’s how supply chains can identify and address productivity gaps.


 

Identifying Productivity Gaps

It can be difficult to know where to begin with productivity optimization. Supply chain leaders may feel they’re already at their peak efficiency. Alternatively, they may notice room to improve but not understand what specifically to address.

Supply chain organizations can identify productivity gaps through a few different means. Going through these three processes and comparing the results can help uncover where the most critical areas to address are.

Benchmark Against Competitors

The first step in finding productivity gaps is comparing key performance indicators (KPIs) to competitors. Recent SEC guidance requires KPIs to come with disclosures like clear metric definitions and how a company calculates them. Companies can take that information to understand their competitors’ success and how they measure it.

Once supply chain organizations have these benchmarks, they can compare them to their own KPIs. It’s important to account for any discrepancies between the companies’ metrics and measuring techniques to provide the most accurate comparison.

Comparing KPIs can reveal where some productivity gaps may lie. Even if a company outperforms competitors overall, it may fall behind its benchmarks in one or two specific areas. Those areas could be home to productivity pain points. While these differences can arise from many places, any shortcoming warrants further investigation.

Compare Goals to Results

Next, supply chain leaders can look internally. A company may perform well compared to others in the industry, but that doesn’t mean there’s no room for improvement. Reviewing goals and how recent results compare to those targets can reveal more shortcomings.

The easiest way to perform this analysis is to compare current KPIs to past goals. Has the company met the targets they’ve set in the past? Are they on track to meet future goals? The categories that show the largest discrepancies between expectations and results are likely where the largest productivity gaps lie.

It’s important to break KPIs into specific categories to isolate problem areas. At the same time, businesses must also map the relationships between KPIs to see how they affect each other. One category’s performance may hinge on another’s, so it’s important to understand these relationships.

Survey Employees

Employees are an excellent but often overlooked resource for identifying productivity gaps. While workers may not have a complete picture of management processes, they understand their specific workflows intimately. This familiarity can give them insight into areas for improvement that management lacks.

Studies show that happy workers are 13% more productive, so the source of lackluster performance may lie in employee satisfaction. Regular surveys and interviews can help reveal which factors impact this satisfaction, both positively and negatively. Common themes between workers’ responses are likely key productivity blockers.

Similarly, employee surveys can ask about workflow improvements that workers think could help. It’s highly likely that at least one worker has noticed how part of a process slows their work down. If multiple employees talk about the same process hindering their productivity, it’s worth looking into.

Addressing Productivity Gaps

After identifying productivity gaps, supply chain organizations must work to fix them. The most effective strategy will depend on the specific gap in question, but these generally fall into a few distinct categories. Adjustments in training, work environments and technology can maximize productivity in virtually every area.

Emphasize Training

Productivity gaps often result from skills gaps. That could mean that employees lack technical knowledge and abilities to streamline their work, or it could apply to soft skills. In either case, more comprehensive training can help remove these productivity barriers.

Seemingly small adjustments can make a considerable difference here. For example, teaching warehouse employees proper lifting techniques and the importance of using them can prevent burnout from repetitive stress. Employees will then be able to work longer before getting tired, maximizing their productivity.

Similar methods can work with office staff, too. Employees should look at something 20 feet away for 20 seconds after every 20 minutes of looking at a computer screen. This will reduce eye strain, preventing the loss of productivity and focus that comes with it. Teaching office employees tips like this can help them consistently perform their best.

Address the Work Environment and Culture

A distracting work environment is another common cause of productivity loss in supply chains. Softer but more consistent lighting and comfortable working temperatures can minimize environmental distractions that hinder productivity. Similarly, white-noise machines can drown out distracting noise in office settings.

Workplace culture plays a substantial role in this area, too. One of the most important things to address in this regard is communication. Employees and managers must consistently communicate so everyone knows what others expect of them and people learn of changes or issues faster. Holding regular meetings and using instant messaging platforms can help.

Making sure the workplace is engaging and empowering is another crucial step. Listen to employees to learn what they need or would appreciate to feel more respected and engaged. When workers feel satisfied in their work environment, they’ll be more productive.

Capitalize on Technology

If workplaces face more concrete productivity challenges, technology may be the answer. Automation is one of the best tools for improving productivity, as it minimizes repetitive, non-value-adding tasks, letting employees accomplish more and remain engaged.

Some of the most valuable automation applications in warehouses are picking and material moving. Walking accounts for more than 50% of picking time, so these workflows are ripe for automation. Robots can easily handle many of these processes, and human workers can then focus on other, less inefficient tasks.

Automation can benefit office workers, too. Robotic process automation (RPA) can handle repetitive tasks like scheduling, data entry and file organization to give employees more time to perform more value-adding work. Programs that consolidate multiple processes to reduce clicking between windows are also helpful.

Optimizing Productivity Starts With Finding Gaps

Supply chains today must be agile, but to achieve that, they must address shortcomings within their operations. Recognizing where they can improve is the first step to becoming more productive.

When supply chain leaders understand and follow these steps, they can make the most of their workforce. They can then accomplish more work in less time, outperforming their competitors and ensuring future success.

economy
Archives, Global Logistics, Global Trade Daily, Trucking

The role of the moving and storage industry in the US economy

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We often fail to see the big picture when considering the moving and storage industry. Sure, we all know that tens of thousands of Americans move every year. But, what is the role of the moving and storage industry in the US economy, and can one function without the other. This article will tackle this rather complex question and hopefully provide a deeper understanding of the moving and storage industry.


 

US economy and the moving and storage industry

As you’ll soon see, the connection between the US economy and the moving and storage industry is a rather complex one. There are various ways in which one impacts the other, and often those ways interact. So, while we will try to give you a decent overview, we can’t cover the entirety of this subject. If this interests you, we strongly recommend that you keep reading our blog and find out more about the connection between the US economy and moving and storage.

The tight correlation between the US economy and the moving and storage industry

It doesn’t take much research to learn that the US economy and the moving and storage industry are closely related. Almost every economy study available will show that as the economy increases or decreases, so does the moving and storage. This is best seen in times of recession, where a sharp drop in the economy perfectly correlates with a decline in moving and storage. The only notable difference is that moving and storage usually lag behind the economy. While the economy can recover relatively quickly, it takes moving and storage a bit more time to get things underway.

Understanding the moving and storage industry

When it comes to pure shipping, there are three major companies in the US – FedEx, Amazon, and the United Parcel Service. But, we have a different picture when it comes to moving and storage. The moving industry is mainly comprised of small to medium companies. These companies are spread out through the US, where each service has its area. As a moving company is dependent on the local market, it can be pretty difficult for companies to branch out. Some do, but usually at the expense of service quality.

This is important to keep in mind as there is no go-to moving and storage company, even for commercial purposes. If companies need to relocate their offices, they need to rely on local moving companies to see them through. Seeing that many companies need to relocate their offices, it doesn’t take much to realize that the moving and storage industry is integral to the US economy.

Furthermore, you have people moving for work all the time in the US. Getting the exact numbers can be difficult. But, it is safe to assume that at least a third of relocations in the US is due to work. Add to this the mass exodus from larger cities brought by remote work, and you’ll soon see how vital moving and storage are.

Do other countries depend on US moving and shipping?

As previously stated, tackling moving and storage is usually local work. Therefore, if people from other countries want to relocate to the US or transfer items, they cannot help but rely on the local moving industry. Some companies focus mainly on international moving with having websites in different languages. You will likely get help with customs and international moving insurance for your items through these companies. Some even provide educational services for future ex-pats. As you can imagine, this plays an important role in the US economy. It not only allows foreign professionals to come to the US with relative ease. But, it also helps US professionals relocate abroad. It is especially important in STEM fields as relocating to a different country is usually necessary for further education.

Military moving

The US has the most prominent military industry in the world. As such, it has a tremendous workforce backing it up, both in research and in defensive military duties. All those working in the military usually need to relocate as their duty requires. Not surprisingly, this would be a much bigger problem for both the military personnel and their families if the moving industry didn’t step in. A large number of moving companies offer military moving services. These help military personnel organize and handle relocations with relative ease. Again, we see an aspect of the US economy where the moving and storage industry plays an essential role.

Final thoughts on the role of the moving and storage industry in the US economy

As you can see, there are many aspects of the US economy where moving and storage play an integral role. From helping people relocate to find work to assisting companies in changing their commercial space. Moving industry as a whole is the literal driving force without which the US economy would be inconceivable. You can use the potency of the local moving industry to determine how strong the local economy is. Solid and stable economies usually bring in a new workforce. And the more people choose to move to a particular area, the more likely it is that a new moving company will spring up.

Autonomous vehicles

The one notable change we might see in the role of the moving and storage industry in the US economy comes with the advancement of autonomous vehicles. Namely, as self-driving vehicles become more and more advanced, we will likely see a change in how moving companies operate. As it is now, a single team takes care of a single relocation, start to finish. But, if you can automate transport, you would only need people to load and unload. While this may not sound like much, it can have serious implications for the moving and storage industry.

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Jamie Walker worked as a mover and relocation organizer for over 20 years. He now writes helpful articles for Miami Movers for Less and other websites that focus on shipping, relocations, and logistics.

ecommerce
Archives, Commentary, Global Trade Daily

Three Ways Subscriptions Will Help You Thrive in the Ecommerce Era, and How to Get Started

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The past two years have marked a tipping point in modern commerce. Suddenly, retail businesses have found themselves struggling to keep up with a dramatic spike in demand as ecommerce sales skyrocketed.

Subscription Ecommerce: Not a Passing Fad

But is the rush to buy online just a temporary side effect of the pandemic? UBS financial services firm predicts that this “subscription economy” will grow to $1.5 trillion by 2025, more than doubling its current $650 billion estimate.

To capitalize on and sustain this growth trend, many ecommerce businesses are adding subscriptions to their offerings. To be successful though, they need to keep several factors in mind.


 

Issues to Consider

There are many issues to consider when developing a subscription model. For example:

-Acquisition: How do you convince customers to sign up for an ongoing subscription?

-CX: How do you build a delightful end-to-end customer experience that retains customers?

-Payment Options: How do you decide on the best payment gateways?

-Growth: How will you expand into new markets and geographies?

-Pricing: How do you optimize your subscription pricing and packaging?

-Inventory: How will you deal with demand volatility and ensure sufficient supply?

-Compliance: How do you ensure inter-state and international sales are tax compliant?

Three Ways Subscriptions Can Future-Proof Your Business

Despite these questions, building a successful subscription ecommerce business is worth the effort. Continued growth in this area is on the horizon —in part because subscriptions provide merchants more ways to diversify revenue, enhance customer relationships, and extend customer lifetime value (LTV).

There are three primary reasons why subscriptions should be part of your consumer offering, and why you should consider them as a way to future-proof your business.

1. Manage Volatile Supply and Demand

Ecommerce businesses need to be able to estimate consumer demand and respond to ups and downs. Demand forecasting and readiness will continue to be crucial in the foreseeable future.

Subscriptions can add a level of predictability. For replenishable goods that consumers buy repeatedly, Amazon incorporates subscriptions into its ecommerce offerings with the ‘Subscribe and Save’ option. In addition to infusing its businesses with a steady stream of recurring revenue, this model also helps them predict future demand.

2. Quickly Test and Optimize

As the old saying goes, practice makes perfect. And as the new saying goes: you can always improve on perfection. To continually thrive in the face of dynamic consumer behavior, ecommerce businesses need the ability to adapt quickly and continuously to make proactive changes to their value proposition, pricing, and packaging.

A subscription model allows companies to offer consumers various pricing and packaging options including monthly and annual memberships, curated and set boxes, Subscribe & Save, and more. Ecommerce companies can choose to run A/B tests to learn what works best for each customer segment.

3. Foster Long-Term Relationships

Nurturing long-lasting relationships with customers is more rewarding for brands than one-off interactions. Subscriptions can cultivate customer loyalty and improve retention.

The subscription offering itself can also scale with customers. Once they have subscribed, a self-serve subscription model can provide consumers with a wide variety of choices over their consumption decisions, providing them the ability to alter their preferences, pause or skip shipments, seamlessly switch between subscription and ȧ la carte offerings—all can encourage long-term customer loyalty.

For subscription boxes, customization enables businesses to satisfy consumer needs on their own terms and also adds an element of surprise within each box—keeping customers hooked.

How Technology Powers Subscription Strategy and Consumer Experience 

Exceptional customer relationships have always been the best currency in business. That’s even more true in the subscription economy. To provide the best end-to-end consumer experience, automating workflows at scale is now more important than ever because it enables you to save time by eliminating workflows and processes with manual touchpoints.

Pricing and packaging testing also involves time-sensitive decisions. Ecommerce companies need the flexibility to experiment, and the insights to learn fast and iterate. Homegrown systems struggle with rapid testing and sophisticated data analysis. These complexities only increase with scale. That’s where automated subscription management and billing can help

To keep their business focus and maintain growth without having to expend resources, ecommerce businesses should consider vendors that make automating complex subscription billing processes their sole mission. They also need a reliable, frictionless payment partner.

For front-end operations to run smoothly, your billing system has to be robust and scalable. That’s rarely the case with homegrown subscription management and recurring billing systems. They are seldom built to scale, and they are expensive and time-consuming to maintain. Every time you need to add more product categories or expand into new geographies, you need to tack on extra code to stay sales tax compliant and change your operations. As you expand globally, it can be an obstacle to rapid growth and flexibility.

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Krish Subramanian is the co-founder and CEO of Chargebee, a subscription billing and revenue management solution for scaling businesses. He is based in Amsterdam and leads a global team of professionals to serve customers in 53 countries to drive Chargebee’s growth year over year. Krish is an engineer by profession and a problem solver at heart with over 20 years of experience in the software field. @cbkrish https://www.chargebee.com/