New Articles

Why Smart Roads are Just as Important as Autonomous Vehicles

vehicles

Why Smart Roads are Just as Important as Autonomous Vehicles

There’s no doubt that self-driving cars, or autonomous vehicles (AVs), are much safer than the average person-manned vehicle. In fact, more than 90of serious crashes are due to human error, which means autonomous vehicles have the potential to significantly reduce the number of collisions and save lives.1 However, there are still plenty of obstacles the technology of AVs has yet to address, including seeing objects behind occlusions like buses or trucks, detecting and anticipating the movements of pedestrians and drivers well ahead of time, and dealing with defective or dirty car sensors. Another complication AV technology has yet to fully evolve is the ability to react appropriately when new and unusual road circumstances arise.   

The focus on technology should not be isolated to the car itself, but also in upgrading the actual road infrastructure. State-of-the-art artificial intelligence (AI) to advance smart infrastructure will not only help driverless vehicles understand the roads better, but also improve overall road safety as AVs are not equipped to see around corners or other impediments. With smart infrastructure now being introduced by AI startup companies such as Derq, having those “eyes” outside of the vehicle also allows for greater visibility overall – making the ride not only safer, but more comfortable and with even better performance. This will also result in less-congested roads. For an average U.S. citizen, congestion costs 99 hours of their time and $1,377 each year.2 Smart infrastructure can prevent traffic backups by adjusting traffic signals when needed.  

The State of the Current Road Infrastructure 

The government designed roads, traffic lights and signs when it was inconceivable to think that there would be any self-driving vehicles on the road. While drivers are well-versed in traffic signals and signs alerting them to when they should or should not drive their vehicle, AVs need different alerts in the form of radio or cellular network signals. Now, various self-driving companies are exploring the idea of working with smart analytic companies to advance the technology of both the vehicles and the infrastructure. In fact, many industry leaders also believe smart roads are needed for the future of AVs 

What Smart Infrastructure Means for the Roadways 

In Miami-Dade County (Fla.), the autonomous vehicle research team at Ford is exploring how emerging technology from smart infrastructure can provide additional information to the AV before it even arrives at an intersection.3 While many cities have different types of traffic signals – horizontal, vertical, posted in the corner of the intersection as opposed to in the middle of the intersection – AI algorithms unite smart infrastructure with AVs, which enable the launch of these vehicles in new locations much faster. In Las Vegas, Motional’s driverless vehicles are partnering with Derq to test how driverless technology reacts when given an even broader perspective than it already has.4 The collaboration has created a “bird’s-eye view” for the AVs at some of the most highly-trafficked intersections in the city.4  

While some self-driving companies currently don’t rely on smart infrastructure, the AV industry is realizing that it’s an important piece of the puzzle when it comes to accelerating the ability to deploy more AV routes in different cities and countries. In addition, transportation systems can’t achieve safety without smart infrastructure. The need for innovative technology on the roads is growing. The U.S. Secretary of Transportation, Pete Buttigieg, has even stressed on the importance of building better infrastructure as well as the technology for self-driving cars.5  

The incorporation of AI and video analytics in smart roads will further the development of the technology of driverless vehiclesThese innovations will also revolutionize the safety, comfort and performance of not only the autonomous vehicles, but also the overall transportation ecosystem 

 _________________________________________________________________________

Dr. Georges Aoude is the co-founder of Derq, an MIT spinoff powering the future of connected and autonomous roads, making cities smarter and safer for all road users and enabling the deployment of autonomous vehicles at scale. Derq provides cities and fleets with an award-winning and patented smart infrastructure Platform powered by AI that helps them tackle the most challenging road safety and traffic management problems. 

Sources: 
1: https://www.nhtsa.gov/technology-innovation/automated-vehicles-safety  
2: inrix.com/press-releases/2019-traffic-scorecard-us/#:~:text=The%20report%20found%20that%20on,average%20of%20%241%2C377%20per%20year   
3: https://medium.com/self-driven/exploring-how-smart-infrastructure-can-help-ford-build-a-great-self-driving-service-for-miamians-d1f6fccd0c14  
4: https://motional.com/news/motional-derq-partner-to-give-driverless-vehicles-a-birds-eye-view  
5: https://www.youtube.com/watch?v=V0RIwEFxV7I  

digital

5 IT Best Practices for the Digital Transformation of Businesses in 2021

Many businesses across North America just experienced their worst year for sales as the pandemic, and its associated restrictions, prompted closures for much of 2020-2021. As a result, every aspect of business has been challenged – from supply chain issues and evolving delivery methods to addressing new expectations from both consumers and employees.

To meet the demands of the new digital-first era we now find ourselves in, companies are adopting cloud-based tools and technologies at an accelerated rate. But true digital business transformation is more complicated and 70% of digital transformation strategies will fail (BCG analysis, October 2020). To ensure long-term, sustainable change, companies’ IT departments must focus on five key things:

1. Establishing a digital mindset, one of continuous innovation, across the entire organization

Culture change is one of the most difficult challenges of any business transformation. Executive leadership must initiate the change and demonstrate commitment to pivot by adopting an agile governance mindset. As the relationship between IT and business value deepens, the role of the IT department will become more critical to creating and accelerating profitable business growth. It is important for CIOs and the executive team to actively drive agile behaviors across the enterprise. This means establishing agile principles cross-functionally and adapting to change based on context and continuous learning.

2. Adopting modern, agile, and scalable digital technology architecture to fundamentally redefine the ways in which the organization operates

Many companies manage a wide variety of IT systems and mobile tech devices, but not all have mastered how to efficiently integrate new applications and cloud services with existing and/or third-party infrastructure. Solutions that enable full, omnichannel integration across all platforms will be important for businesses to ensure that key data is always available in real-time to make agile, more informed decisions. This helps businesses streamline operations to enhance efficiency, while reducing costs and building resiliency.

3. Capturing and activating data to better engage audiences and improve the customer experience

Customers’ expectations are radically changing – and so should the experiences your business delivers. Cloud-based tools and technologies allow brands to compete more effectively by ensuring that every interaction across every platform is delivering a consistent experience for the customer. This is achieved by seamlessly integrating commerce with other IT applications to give business decision makers a comprehensive picture of the customer journey, thereby allowing them to capture and activate key data to improve personalization, engagement, and brand loyalty.

4. Ensuring the best people are in the right places to drive the transformation

Undertaking a digital transformation is no easy task. Many organizations lack the right mix of skills and expertise required to execute a successful pivot to digital. Companies should carefully assess the roles and talent needed and look to external staffing and consulting firms that specialize in digital transformation solutions to fill gaps in their IT department.

5. Creating clear and effective tools to monitor progress and measure success

Businesses that develop effective monitoring tools and strategic metrics are more likely to be successful at digital transformation. This may include clearly defining operational or financial metrics, regularly tracking outcomes and roadblocks, and measuring productivity. Most importantly, it is advisable that companies maintain a single source of truth on data to ensure everyone involved – no matter their role or department – has access to the same analytics and information.

_____________________________________________________________________

Keith Hontz is the Chief Executive Officer and President of Savantis. In this role, he oversees all key aspects of operations across Savantis SAP Global Solutions consulting services and Savantis Global Staffing services. With nearly 25 years of industry experience, Keith is a digital business transformation expert, helping organizations create operational efficiencies, derive deeper insights from data, improve their customer experience, and transform into Intelligent Enterprises. Keith joins Savantis following his successful role as CEO of SocketLabs, an industry leader in high-volume email infrastructure, where he quickly built his leadership team, onboarded an enterprise sales organization, and helped establish double-digit YoY revenue growth in his first year with the Company. Prior to SocketLabs, Hontz spent more than two decades at SAP America where he held key positions including Global VP, Regional VP, and other leadership roles in consulting, presales, product management, sales, and executive management, and engaged with hundreds of SAP customers in the private and public sectors.

rare earth

Expanding the Supply Chain for Rare Earth Materials

From cars and construction equipment to cell phones and military weapons, rare earth materials are critical to manufacturing many important things businesses and consumers use on a daily basis. While people around the world rely on these minerals in their everyday lives, China produces 80% of the U.S. rare earths and has been doing so for quite some time.1 What’s made things even worse over the past 12 to 18 months is a global pandemic. Many consumers stuck at home decided that their current cell phone or computer needed to be replaced, which ultimately caused a shortage of these materials that is affecting various other sectors including the automotive and electronic industries 

Expanding the supply chain means the production of at least 17 minerals indispensable to manufacturing both consumer and government necessities would not be solely sourced from China.2 However, this won’t happen overnight. The process of having a fully diversified supply chain is several years away due to the planning, process and permitting it takes to both open a mine and build a factory. 

New Rare Earth Production Will Open the Global Supply Chain 

Fortunately, new entrants into the market have begun mining projects throughout the world that are mining for tungsten, one rare earth particularly in demand for important items. This is extremely important as China has limited the amount of tungsten exports that can be shipped to the U.S., which has caused a great deal of concern regarding the overall supply chain of this rare material.  

Tungsten is used in the construction and content of both semiconductors and anodes. It’s also used in a wide array of products from the filament of light bulbs, electric furnaces, and X-rays for medical and industrial imaging, to lead-free fishing weights and golf clubs, and drill bits and saw blades.3 In fact, tungsten is also used for the production of glass syringes – a product that has become very high in demand during a global pandemic that relies on the worldwide distribution of vaccines.4  

This is why it’s imperative to diversify the supply chain for rare earth materials like tungsten. Efforts made by new mining projects throughout the world will increase both supply levels and exports back to or within the U.S., which will benefit the overall supply chain of tungsten for production and manufacturing.  

One mining project in South Korea is of particular importance. The Korea Tungsten project in the Sangdong Mine hosts one of the largest tungsten resources in the world. This mine was the leading global tungsten provider for more than 40 years and has the potential to produce 50% of the world’s tungsten supply. The project is steadily becoming the center of focus for resource experts, miners, investors, shareholders around the globe.  

What the Future Holds for the U.S. 

President Biden is working hard toward a significant infrastructure plan that is also meant to serve as 50% cut in emissions by 2030.5 The infrastructure proposal includes $174 billion in spending to create electric vehicle charging stations in addition to other roadway enhancements while also touting both tax incentives for electronic vehicle battery makers for building factories and the creation of new manufacturing jobs in the U.S. However, 70% of the world’s EV batteries are still currently built in China because that’s where most of the materials used to build them are located.5 Until the new rare earth production players are up-and-running in mining and manufacturing, there remains an immediate issue for those working in the coal mining and traditional auto manufacturing industries when it comes to making a pivot in their careers to clean energy sector that is to come in the U.S.  

Even so, the future of mining and manufacturing rare earths remains to be seen in the U.S. While China dominates a majority of rare earth mining and manufacturing, their domination didn’t happen overnight. For approximately 30 years, China has been building its supply chain in addition to re-evaluating it every one to five years. With export restrictions to the U.S. now hindering the demand of popular consumer goods and materials, it’s important for the U.S. and other countries around the world to evolve and diversify their own supply sources, but it will take time to make the change. 

Editor’s Note: Lewis Black is CEO of Almonty Industries, a leading global company involved in the mining, processing, and shipping of tungsten concentrate. For more information please visit www.almonty.com. 

 _______________________________________________________________________

Sources: 
1: https://www.wsj.com/video/tech-companies-depend-on-china-for-rare-earths-can-that-change/674228C1-D75A-4598-8597-D68108CDA45F.html  
2: https://www.eetimes.com/china-will-dominate-rare-earth-supply-for-decades/  
3: https://sciencing.com/info-8363311-things-made-out-tungsten.html  
4: http://ipimediaworld.com/wp-content/uploads/2017/10/Tungsten-in-the-production-1.pdf  
5: https://www.nytimes.com/2021/04/24/business/bidens-climate-change.html  

workers

Certificate Addresses Staggering Demand for Logistics Workers

Prologis Inc., a San Francisco-based global leader in logistics real estate, recently partnered with the Association for Supply Chain Management (ASCM) to create a new industry certificate that aims to help develop the next generation of talent for the logistics industry.

According to the U.S. Bureau of Labor Statistics, warehouse employment reached the highest level ever recorded with 1.25 million workers in 2020, and the transportation, warehousing and related fields are projected to have 600,000 new openings by 2029.

“The need for skilled logistics workers has never been greater, particularly as warehousing and logistics operators strive to meet demand driven by faster fulfillment and higher inventory levels,” explains Prologis Chief Legal Officer and ESG head Edward S. Nekritz.

Adds ASCM Foundation Vice President Dan Schoenfeld: “There was a skills gap in the supply chain way before COVID-19 was even part of the lexicon. Now the pandemic has further exacerbated the need for upskilling to an unprecedented level. This partnership with Prologis aligns perfectly with our foundation’s mission of creating a better world through the supply chain by attracting more people to the field and preparing them for rewarding career opportunities.”

 As part of the digital learning and development program, which is expected to launch in the third quarter of this year, students will acquire foundational skills, gain an understanding of the logistics sector and, after successfully passing an exam, receive completion certificates, digital badges and credentials for their resumes.

The online courses were developed in collaboration with several Prologis customers including NFI and Geodis. Through its global Community Workforce Initiative (CWI), Prologis has pledged to train 25,000 individuals for jobs in transportation, distribution and logistics by the end of 2025. 

UAE

Intellectual Protection Efforts from United Arab Emirates (UAE) cause United States to lift UAE from Watch List of Intellectual Protection (IP)

United Arab Emirates (UAE) reaches a new milestone in Intellectual Protection (IP) from the United States Trade Representative (UTSR) decision to remove UAE from the watch list for IP protection and enforcement. In the UTSR annual report, it was reported that the UAE applied adequate and effective measures to protect and enforce intellectual property rights as per IP related international standards and global best practices. The annual report highlights the compliance and increased efforts of UAE that lead to the removal of the watchlist after longstanding IP concerns.

The UTSR stated in the report on global IP compliance that the UAE made progress on longstanding IP enforcement lead by federal authorities and local governments pushing a series of IP enforcements on longstanding IP enforcement standards. The decision holder H.E. Sultan Ahmed Bin Sulayem, CEO and Chairman of DP World Group and Chairman of Ports, Customs and Free Zone Corporation (PCFC), welcomed the decision of the taking the UAE off the watchlist and underlined the UAE for the commitment in implementing IP regulations.

H.E. Sultan Ahmed Bin Sulayem stated, “We are pleased that Dubai Customs’ IP efforts have contributed to this achievement by the UAE. This underpins strategic plans to increase foreign trade growth, in fulfillment of the wise leadership’s directives and particularly the trade roadmap vision approved by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which sets out a five-year plan to boost Dubai’s foreign trade to Dh2 trillion,” as he boosted over UAE performance.

Efforts by Dubai UAE POV:

H.E. Sultan Ahmed Bin Sulayem explained that Dubai Customs has been actively engaged in tackling the illicit trade of counterfeits, while being in full corporation with the US and other foreign bodies. The Dubai Customs works in tandem with the IPR departs to enforces intellectual property and trademark laws by making sure that any IPR infringing goods are seized to prevent from entering local markets.

H.E. Ahmed Mahboob Musabih, Director General of Dubai Customs said, “Dubai Customs has long been steadfastly committed to intellectual property rights protection. In 2005, we established the IPR department, the first of its kind at the level of customs authorities in the Middle East, with the aim of optimizing coordination amongst different customs units and centers in the area of enforcement and protection of intellectual property rights,” when describing Dubai Customs efforts in protecting IPR laws.

In 2021, Dubai Customs organized twelve workshops to introduce training of distinguishing between counterfeit products targeted at 1,394 staff and students. This training led to Dubai Customs resolved 81 intellectual property disputes, with an estimated value of Dh 11.3 million and recycled 510,000 counterfeit items for 26 international brands.

The Director of the IPR department, Yousuf Ozair Mubarak, mentioned that Dubai Customs teams constantly communicate with US and foreign countries to understand their needs and requirements in respect of protection and enforcement of the IP rights to ensure business interests of their partnering organizations.

geodis

UNIMAGINABLE CHALLENGES MET: A Q&A WITH MIKE HONIOUS, PRESIDENT & CEO, GEODIS IN AMERICAS

Global Trade: Please quantify the successes Geodis racked up despite the pandemic.

Mike Honious: 2020 was no doubt marked by unimaginable tragedies, challenges, and lasting impact across the globe. From an industry perspective, the pandemic drastically disrupted traditional ways of conducting business as brands overwhelmingly migrated sales from in-person to e-commerce on an accelerated timeline to align with consumer purchasing trends.

We, therefore, saw incredible demand by our customers in 2020 to adapt their logistical operations, shifting the balance from brick and mortar to e-commerce sales. We met the demand by offering a unique suite of e-commerce services to increase visibility across channels, establish agile and flexible distribution networks, optimize IT and software capabilities, and overall help create a seamless customer service experience. This led to a substantial growth period for Geodis during the pandemic. In 2020, Geodis e-commerce orders in the U.S. increased significantly year-over-year. We’re also honored Gartner ranked Geodis in 2020 as one of the top companies with the agility and ability to adapt to customer needs. We believe this flexibility helped our clients succeed during this challenging time.

Global Trade: How did Geodis manage to pull this off when some of your competitors did not?

Mike Honious: Geodis was able to successfully support our customers’ e-commerce efforts during the COVID-19 pandemic because our expertise in this area was well established pre-pandemic. There was no need to scramble and develop services in real time. We had the e-commerce solutions and processes in place. During the pandemic, we simply accelerated and scaled aspects of our e-commerce capabilities so we could best respond to the changing landscape and demand.

Specifically, Geodis e-Commerce Logistics services drastically shorten the click-to-deliver timeline and reach more than 95 percent of U.S. customers within one to two days. This can reduce cost-to-serve by up to 15 percent compared to marketplace models. With the Geodis suite of services, customers can receive a real-time overview of inventory, manage orders across sales channels and determine the most appropriate supply source, delivery method and returns option.

We also offer Geodis MyParcel, which is a cross-border small parcel shipping service from the U.S. to 27 European countries, with guaranteed delivery in four to six days. With our e-commerce services in place pre-pandemic, our agile and scalable approach allowed us to provide reliable, transparent and cost-effective solutions during COVID-19 when brands needed to adapt rapidly.

Global Trade: What did you learn about your company and industry as a whole from the pandemic?

Mike Honious: 2020 was full of challenges, however, it ultimately made our company and industry as a whole more agile, flexible and resilient. E-commerce sales blew past previous projections and did in months what was projected to happen across several years. Because of this, the pandemic forced our industry to challenge previously held beliefs and practices on how to best operate business today.

For Geodis, we accelerated, expanded and adapted services in real time—particularly to support the explosive e-commerce demand. This will radically change how we conduct and approach business into the future as brands increasingly adopt an omnichannel mindset. Above all, I think the underlying learning for Geodis is that we are agile and ready to adjust our operations as needed to help our customers succeed no matter the current environment.

Global Trade: What challenges lie ahead, and how does Geodis plan to overcome them?

Mike Honious: For brands, one of the biggest challenges that lie ahead is predicting how and when customers will return to purchasing in stores and the impact this will have on today’s e-commerce patterns. While many shippers have historically divided their buying decisions, supply chain and fulfillment strategies based on sales channels (which generally provides a lower cost basis when done well), others have embraced omnichannel fulfillment strategies that have proven advantageous during the pandemic. We can’t predict the future, of course, but we can expect the trend toward the omnichannel approach to continue as consumers are likely to adopt a hybrid purchasing pattern of both in-store and online post-pandemic. We will continue to make strategic moves, for example, with advancements to innovative warehouse management systems, providing our customers with the visibility they need to make intelligent decisions and enabling them to deliver products to consumers wherever they are, in store or online.

Additionally, we expect to see pre-pandemic industry challenges persist, such as the labor shortage. Labor availability and rising wage pressure due to the current economic, political and public health challenges need to be addressed appropriately. Geodis in the U.S. is continuing to make investments in automation to manage safety, efficiency and cost-competitiveness in tight labor markets. As the pandemic also showed us, robotics and automation can help provide a defensive strategy to supply chain disruptions caused by the lack of labor availability.

________________________________________________________________________

Mike Honious is president and CEO of Geodis in Americas, the U.S. arm of the global 3PL based in France. Geodis in Americas, which is based in Brentwood, Tennessee, and has offices throughout the U.S., Canada, Mexico, Central America and South America, provides end-to-end supply chain solutions through three key business lines: Contract Logistics, Supply Chain Optimization and Freight Forwarding.

covid-19

HOW COVID-19 TOOK THE SUPPLY CHAIN TO A NEW PLACE

The COVID-19 pandemic is not a one-off supply and demand disruptive event that will disappear into obscurity. It has left indelible marks on supply chain practices and practitioners. The not-so-strange thing is that many of these marks are positives. In the spirit of “never waste a good crisis,” supply chain practitioners and technologists face a post-pandemic recovery armed with a set of new systems and practices. 

Two of the most important of these new systems and practices involve supply chain agility and supply chain risk management. 

Supply Chain Agility: Supply chain agility is how well a supply chain responds to uncertainties by quickly adjusting operations (and sometimes tactics) while still meeting crucial success metrics. Agility wasn’t born in the pandemic. It came from the digital transformation of the supply chain. The combination of large volumes of real-time data from the IoT and advanced analytical techniques to mine new insights led the way for supply chain practitioners to pursue supply chain agility. However, the pandemic exponentially accelerated the adoption of supply chain agility and transformed it from a practice to a strategy. 

The chief supply chain officer of a multi-billion-dollar consumer goods company wrote during the peak of the lockdowns that for every dollar spent on supply chain agility, the return is 10x against traditional supply chain planning methods. Supply chain agility contradicts what many practitioners have been taught over the past decades. Experts have traditionally focused on efficiency and consequently pursued the lowest unit cost dream. By utilizing optimization techniques, we have sought to minimize procurement costs while absorbing larger order quantities and longer lead-times. We plan for longer manufacturing runs to drive a higher return on assets and full-container load land and marine freight to reduce transportation costs. Agile supply chains exist almost as the antithesis of efficient supply chains.

Supply Chain Risk Management: As companies emerge from the pandemic with an eye on recovery, there is a new appreciation for the role risk management plays in supply chain operations. Supply chain is essentially a decision-making game. Experts decide how much to make, move, buy, and sell. Supply chains have traditionally been driven by the financial cost of such decisions: procurement and production costs, the cost of expedited freight, and the cost of unmet orders. However, the COVID-19 crisis has taught us what should have been obvious to many, that risk trumps cost. Risk, if not properly managed, poses an existential threat to a manufacturer. So why has it been ignored, or relegated to a strategic supply chain design role?

Risk must be identified, evaluated and, when appropriate, mitigated. When making a supply chain decision regarding material sourcing or production, the risk spectrum will take its place alongside profitability in the process.

The pandemic has lifted the importance of supply chains within the boardroom. No longer just a cost center or necessary evil, supply chain is now viewed as a source of transformational and competitive differentiation. Thanks to COVID-19, thanks to toilet paper shortages, and long lines at Costco, my children now understand what a supply chain is. No longer do I need to explain what I do in my job.

__________________________________________________________________

Shaun Phillips is director of Product Management at QAD DynaSys, a division of QAD Inc., which began solving planning issues for food and beverage companies from an old bakery in Strasbourg, France, three decades ago. QAD DynaSys is now a leading provider of digital supply chain planning solutions in the areas of forecasting, planning and supply chain optimization. 

biofuel

The Solid Biofuel Market Grows Steadily Despite the Pandemic

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

The solid biofuel market continues to grow steadily. The pandemic generated financial and logistics problems for producers, but this failed to disrupt output, as a result of the consistent demand for long-term supply contracts. The production of wood pellets remains the fastest-developing segment on the solid biofuel market.

Key Trends and Insights

The solid biofuel sector remained stable during the pandemic, buoyed by existing long-term supply contracts. Despite facing disruptions in supply chains, constrained cash flows, and stagnating investment into new projects, solid fuel producers managed to sustain production levels and keep staff working.

The global pellet market grows rapidly with a CAGR of +11.9% a year over the past 8 years, emerging as the fastest-developing segment on the global solid biofuel market. Europe (44.8%) and North America (29.8%) remain major global pellet manufacturers (IndexBox estimates). China indicated the highest rate of production growth (with a CAGR of +31.1%) over the period from 2012 to 2020. Due to asynchronous quarantine measures in countries , the procurement of raw materials (sawdust) was disrupted, which emerged as a crucial issue for pellet manufacturers during the start of the pandemic in early 2020. Along with the ease of lockdowns in the second half of 2020, the supply chains were gradually readjusted.

The global charcoal market continued to expand at an average annual rate of +1.0% over the past 8 years and estimated at 56M tonnes (IndexBox estimates). The highest rate of consumption growth was observed in Africa (CAGR, +2.1%), the leading producer of wood charcoal worldwide (62%): in many low-income African countries, charcoal remains the main fuel available for cooking and daily living requirements.

According to IndexBox, the global solid biofuel market is forecast to reach 129.6M tonnes in the period to 2030 (this includes wood pellets and wood charcoal). The increasing demand for renewable fuels and the shifts towards a circular economy are set to remain the key market drivers. The use of plant residue (rice husks, straw, sugarcane, rapeseed, oil palm, and sugar beet etc.) as a raw material for the production of solid biofuel, is set to become increasingly prominent as a result of the robust crop yield.

Solid Biofuel Consumption by Country

The countries with the highest volumes of solid biofuel consumption in 2020 were the UK (9.4M tonnes), Brazil (6.6M tonnes) and China (5.2M tonnes), together comprising 21% of global consumption. Ethiopia, Nigeria, the U.S., the Netherlands, India, the Democratic Republic of the Congo, Germany, Italy, France and Viet Nam lagged somewhat behind, together accounting for a further 32%.

In value terms, the largest solid biofuel markets worldwide were China ($5.4B), Ethiopia ($2.9B) and Brazil ($2.7B), together accounting for 28% of the global market. The UK, India, Nigeria, the U.S., the Democratic Republic of the Congo, France, Germany, the Netherlands, Italy and Viet Nam lagged somewhat behind, together comprising a further 26%.

The countries with the highest levels of solid biofuel per capita consumption in 2020 were the Netherlands (170 kg per person), the UK (139 kg per person) and Ethiopia (42 kg per person).

Solid Biofuel Exports by Country

The U.S. was the key exporter of solid biofuels in the world, with the volume of exports amounting to 7.3M tonnes, which was near 27% of total exports in 2020. Canada (2.9M tonnes) occupied an 11% share (based on tonnes) of total exports, which put it in second place, followed by Latvia (7.8%), Russia (6.2%), Denmark (5.4%) and Viet Nam (4.6%). The following exporters – Estonia (1,070K tonnes), Germany (784K tonnes), Poland (681K tonnes), Austria (652K tonnes), Lithuania (616K tonnes), Portugal (616K tonnes) and Indonesia (570K tonnes) – together made up 19% of total exports.

Exports from the U.S. increased at an average annual rate of +18.9% from 2012 to 2020. At the same time, Denmark (+50.4%), Poland (+16.0%), Indonesia (+12.0%), Estonia (+11.7%), Latvia (+11.0%), Russia (+10.6%), Canada (+9.8%), Lithuania (+9.0%), Viet Nam (+8.0%) and Austria (+3.9%) displayed positive paces of growth. Moreover, Denmark emerged as the fastest-growing exporter exported in the world, with a CAGR of +50.4% from 2012-2020. Portugal experienced a relatively flat trend pattern. By contrast, Germany (-1.4%) illustrated a downward trend over the same period.

In value terms, the U.S. ($1B) remains the largest solid biofuel supplier worldwide, comprising 19% of global exports. The second position in the ranking was occupied by Canada ($408M), with a 7.6% share of global exports. It was followed by Latvia, with a 7.2% share.

Source: IndexBox AI Platform

food

Top Three Lessons from the Food Transformation Industry

The food industry has learned more from the pandemic than it bargained for. The pandemic taught us some important lessons about improving quality, paying attention to employee and partner safety, and working regularly and consistently with suppliers. The past 12 months have been focused on response and short-term solutions. Many companies found that their operations and supply chains were not prepared to handle unpredictable peaks, and supplier pools lacked flexibility and diversity. Manual logistics processes similarly did not show the flexibility and speed of results needed, and it was difficult to make the quick decisions needed to keep businesses, customers and employees safe. With uncertainties in the safety of food imports and the functioning of restaurants in 2020, food and beverage companies were suddenly faced with new challenges.

Prevention is better than the cure

As the Covid-19 crisis set, a crisis in the supply chain followed, triggered by people’s responses to the spread of the virus, such as panic buying, which submitted the supply chain to an unusual stress, and eventual disruption. As the situation evolved, it became clear that digital transformation and technology upgrades were actions that could not be delayed if you wanted to make decisions based on actual live data.

In preparing for the future, we shift from “responding to challenges” to proactive action. First and foremost, you need a selection of technology solutions that support scalable and transparent processes. There’s a lot of talk about predictive analytics and supply chain modeling solutions these days, but the first step in this process is always the implementation of operational management systems and data exchange systems.

By standardizing your processes and transforming your technology, you can create a system that lays the groundwork for staying ahead of the competition, improving efficiency and preparing for long-term growth. Here are a few ways to get started:

First: Think about continuous quality control.

Food-related industries need to rely on a dynamic system that shows how your business is performing every day. It’s time to set goals for maintaining continuous quality control with your suppliers, within your own walls and in every part of the supply chain.

The first step is to look at all the software or technology you’re using now to see if you can consolidate or eliminate point solutions or irrelevant applications. Once you have a clear picture, you can ask if your systems can “talk” to each other and connect all decision data into a single source of truth. This helps eliminate siloed data and improves communication.

To give examples based on our company’s portfolio of solutions, the WMS system features automatic tracking of expiration dates, including residual expiration dates based on customer requirements. And personal customer accounts based on Generix Supply Chain Visibility provide data on availability products at various points in the supply chain, both in warehouses and in transit.

Second: Move away from manual processes.

How many times has a document or other data been “lost” in email or file-sharing folders? How many times have you worked extra hours to put together a report manually from multiple spreadsheets?

It’s time to let technology take over most of your administrative and routine work. It’s time for the food industry to stop relying on paper, spreadsheets and other manual tools. Chapman’s Ice Cream was enabled to effectively track their ingredients throughout the supply chain thanks to automation, and thus had the data required to react quickly to changes in consumer preferences and protect food safety. During the early days of the pandemic, John Fleming reports in a recent webinar that Chapman’s used the real-time data provided by their WMS to anticipate the supply of their ingredients and manage their customers’ expectations accordingly.

It’s important to remember that modernization doesn’t exclude people from processes. It is the use of human-centered technology that reduces human error, reduces administrative work and improves results. Certainly, you will have to invest in innovation, but technology creates efficiency and transparency that will ultimately save you time and money. Chapman’s for example, were able to reduce losses by gaining real-time visibility over their inventory.

Generix offers its customers an end-to-end process implementation based on the Generix Supply Chain Hub solution. All modules of the solution are interconnected by an integration bus to which you can connect your accounting system (ERP) and other applications in use.

Third: Upgrade your supplier management practices.

Integrating new suppliers and working with existing ones comes with many challenges. Emails go unanswered, contract renewal dates are often missed. Updating certificates, documents and audit results is a chore, to say the least. In addition, supply disruptions during the pandemic may have prompted you to diversify your supply chain. To summarize, working with suppliers is a lot of communication, paperwork and dates to keep track of. In addition, you are responsible for making sure your suppliers meet government and industry standards.

Using vendor relationship management software makes it easier for all parties, allowing everyone to work faster and more collaboratively. Supplier contacts, certification submittals and audit results are all centralized in one place, allowing you to work quickly and accurately to develop and renew contracts. Automated renewal reminders eliminate routine monitoring or worrying about updating a common Excel file on time.

Our company’s portfolio includes different level solutions to standardize work with suppliers: SCV based supplier accounts for goods and services, EDI based supplier portal solution, Generix Collaborative Replenishment for VMI based work. Our company methodology allows us to develop onboarding packages for fast integration of new vendors.

To Summarize

Modernization of systems makes sense both competitively and financially. However, in my opinion, the most compelling reason to upgrade is the well-being of your employees. In these volatile times, they are doing more with the same or even fewer resources, taking on more workload, which can lead to faster and harder burnout. If you can do more to support your employees and their effectiveness, you will achieve better results in the long run.

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. From Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) to Manufacturing Execution Systems (MES) and more, software platforms can deliver a wide range of benefits that ultimately flow to the warehouse operator’s bottom line. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

This article originally appeared on GenerixGroup.com. Republished with permission.

biodiesel

The Global Biodiesel Market Retains Robust Growth Despite the Pandemic and Low Oil Prices

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

Neither the pandemic nor the low oil prices succeeded in slowing the growth of the global biodiesel market. As economies worldwide start to recover from the Covid crisis, and environmental concerns increase, the demand is set to remain robust in 2021. 

Key Trends and Insights

In 2020, the demand for biodiesel declined to 39.5M tonnes after five years of solid growth, largely a result of reduced transport activity during the pandemic. In 2021, global biodiesel consumption started to recover robustly. Despite the low prices for conventional types of fuel, the global energy market is striving to adhere to the Paris Agreement by reducing greenhouse gas emissions and making a shift towards using sustainable forms of energy, which is to promote the use of biofuels.

The European market became especially attractive for Asian exporters in the first half of 2021: local biofuel producers were forced to cut output against high prices in the EU for vegetable oils. The biofuel shortage in Europe could be offset by supplies of palm oil from Indonesia and Malaysia, but in 2019, the European Union intended to secure the gradual phasing out of palm oil as a viable fuel. This is spurred by the concern regarding tropical rainforests destroyed while expanding palm plantations, which depreciates any positive effect for the environment that could be achieved from the use of biofuel.

In 2021, American biofuel producers initiated a rapid rise in production but faced the risk of a shortage of raw materials. Assuming the demand for biodiesel to increase, the USA plans to see a fivefold increase in biofuel production capacity by 2024.

The global demand for fuels is set to increase along with the recovery of the global economy from the pandemic. Rising environmental concerns worldwide become a new powerful trend transforming the global energy market. Since biodiesel meets the green agenda, it should enjoy accelerated market growth in the medium term. It is forecast that the biodiesel market is set to develop at an average annual rate of +4.9% through to 2030, to approx. 63М tonnes.

Biodiesel Consumption by Country

The countries with the highest volumes of biodiesel consumption in 2020 were Indonesia (6.2M tonnes), the U.S. (5.6M tonnes) and Brazil (5.4M tonnes), together comprising 44% of global consumption.

In value terms, Brazil ($5.8B), Indonesia ($5B) and the U.S. ($4.7B) constituted the countries with the highest levels of market value in 2020, together accounting for 42% of the global market.

The countries with the highest levels of biodiesel per capita consumption in 2020 were the Netherlands (55 kg per person), France (40 kg per person) and Spain (34 kg per person).

Biodiesel Exports and Imports by Country

In 2020, overseas shipments of biodiesel decreased by -11.8% to 16M tonnes for the first time since 2015, thus ending a four-year rising trend. In value terms, biodiesel exports fell to $15.9B (IndexBox estimates) in 2020.

In 2020, the Netherlands (4.7M tonnes), distantly followed by Germany (2.3M tonnes), Belgium (1.6M tonnes), Spain (1.5M tonnes) and Argentina (0.8M tonnes) were the key exporters of biodiesel, together comprising 66% of total exports. The following exporters – China (665K tonnes), Malaysia (564K tonnes), Bulgaria (494K tonnes), the U.S. (476K tonnes), Canada (397K tonnes), France (397K tonnes), Poland (365K tonnes) and Italy (265K tonnes) – together made up 22% of total exports.

Among the main exporting countries, China (+51.3% per year) saw the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

In 2020, after five years of growth, there was a significant decline in supplies from abroad of biodiesel, when their volume decreased by -7.4% to 16M tonnes. In value terms, biodiesel imports contracted modestly to $15.9B in 2020.

In 2020, the Netherlands (3.9M tonnes), distantly followed by Belgium (1.8M tonnes), Germany (1.5M tonnes), Spain (1.2M tonnes), the UK (1.1M tonnes), France (1.1M tonnes), Italy (1.1M tonnes) and China (0.8M tonnes) were the key importers of biodiesel, together making up 77% of total imports. The U.S. (674K tonnes), Canada (518K tonnes), Poland (319K tonnes) and Bulgaria (276K tonnes) took a little share of total imports.

Source: IndexBox AI Platform