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KEEP AN EYE ON IoT: THE FUTURE IS NOW WHEN IT COMES TO TECH’S ROLE IN SUPPLY CHAIN MANAGEMENT

IoT
3pls, Archives, Global Logistics, Global Trade Daily, Software

KEEP AN EYE ON IoT: THE FUTURE IS NOW WHEN IT COMES TO TECH’S ROLE IN SUPPLY CHAIN MANAGEMENT

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The Internet of Things is a revolutionary technology of today. If implemented optimally, it can bring about immense benefits in different industries including transportation, retail, healthcare, finance and supply-chain management. For processes like forecasting, management and oversight applications, IoT can assist fleet managers in improving the operational efficiency of distribution along with adding transparency to the decision-making process. 

IoT can play a vital role in improving supply chain management, with its main applications in tracking and monitoring processes. Additionally, IoT can be applied to other processes.

TRACKING LOCATION IN REAL-TIME

The IoT can help provide real-time data of a product’s location and its transportation environment. It can be tracked at all times and you can get real-time alerts if anything goes wrong during transportation and can monitor the delivery of raw materials and ready goods.

With environmental sensors, shipments can now be tracked for internal conditions such as the inside temperature of the vehicle, humidity, pressure and other factors that can potentially adversely affect the product.

C.H. Robinson ties its recognition as a challenger in the 2021 Gartner Magic Quadrant for Real-Time Transportation Visibility Platforms to the Eden Prairie, Minnesota-based global logistics company’s solutions such as Navisphere Vision. Delivered by C.H. Robinson’s TMC division, Navisphere Vision’s IoT device integrations allow shippers to monitor and immediately mitigate issues when freight is impacted by shock, tilt, humidity, light, temperature or pressure.

Recognition is great, but to expand on C.H. Robinson’s newer capabilities, the company has announced it will invest $1 billion in technology over the next five years or double its previous investment. 

“Several major events over the past year have emphasized the vital importance of supply chains, but also highlighted their fragility in some cases,” explains Jordan Kass, TMC president. “The companies who will excel in the years to come will be those with real-time visibility into their supply chains. The ability to consume, combine and analyze data from the growing number of integrations and data points will be essential for building a resilient, competitive and profitable supply chain.”

24/7 20-20 VISION

IoT devices help managers in making decisions about product arrivals and increasing delivery forecast precision. Not only does it help predict final delivery date, but it also assists in mitigating risks before they can occur. 

With real-time location trackers, warehouse employees can track the exact aisle for specific parcels. When paired up with artificial intelligence, it also allows for automated vehicles to retrieve a particular package without any human supervision. And tools such as smart glasses assist the warehouse workers and ensure that they spend lesser time in completing their task. Furthermore, IoT gathers data which allows for continual improvement and increased efficiency as the process continues. 

“Faced with the acceleration of e-commerce and new consumer demands, the automatization of logistics warehouses is an essential response to handle growing flows in an ever-shorter timeframe,” says Philippe de Carné, executive vice president, Business Development, Innovation & Business Excellence at global supply chain operator GEODIS, which has about 50 automated sites worldwide.

“The arrival of increasingly autonomous intelligent robots and a constant search for competitiveness are paving the way for increased automatization,” notes Antoine Pretin, vice president of the GEODIS Engineering Group. “Such solutions provide great leverage to improve performance and assist in order preparation in e-commerce warehouses, reducing repetitive tasks, but also gaining quality and reactivity.”

MORE BENEFITS IN SUPPLY CHAIN MANAGEMENT

IoT devices help plan and change transportation routes by considering any accidents or delay-causing occurrences along the way. Thus, it allows for optimal path while developing contingency planning and getting to the cause of delays. 

In terms of increasing operational efficiency and reducing operating costs, IoT SCM platforms exponentially increase the speed of supply chain efficiency. The IoT helps reduce feedback cycle, allows quick decision-making, mitigates risks and improves goods-locating efficiency in the warehouse. 

Connected platforms are easily accessible and faster than on-premise systems. With a cloud-based IoT system in place, supply chain managers can ensure that all concerned stakeholders can access important information. Furthermore, a connected IoT service can give insights for particular scenarios, thus helping the workers throughout the supply-chain process. 

IoT also gives a detailed insight to supply chain managers on goods turnover. This assists the managers and retailers estimate how many units of each product they need for shelving. It also increases accuracy by avoiding human error and helping in the identification of packages, while also avoiding financial overheads that are otherwise incurred in the form of time and money. 

Bethesda, Maryland-based aerospace and defense contractor Lockheed Martin recently signed an agreement with SyncFab, a Silicon Valley distributed manufacturing platform, to streamline supplier capabilities across Switzerland. How? SyncFab will provide Lockheed Martin with direct access to its parts procurement and secure supply chain platform that connects Original Equipment Manufacturers to members of Swissmem, which represents Switzerland’s mechanical and electrical engineering industries. 

“SyncFab is honored and privileged to work with Lockheed Martin in our mission to expand access and digitally transform Swiss Industrial Supply Chains in partnership with Swissmem,” said SyncFab founder and CEO Jeremy Goodwin, who bills his company’s platform as the first Supply Chain Blockchain solution for parts suppliers and buyers. 

The platform works as a “matchmaker” between OEMs and SMEs, enabling SMEs to compete for long-term supply chain opportunities with large international companies. This platform has already helped mechanical engineering and electronics firms in the U.S. provide products and services to large OEMs, including electronics, aerospace, automobile, medical technology, and renewable energy.

Other top defense suppliers such as Thales, RUAG and Mercury have joined the SyncFab platform consortium as has the Cleveland, Ohio-based National Tooling and Machining Association (NTMA) and its more than 1,400 SME supplier members.

IoT also allows for sorting data and determining patterns to indicate potential reasons for improving or hindering the profitability of the goods. It helps supply chain managers and retailers segment the goods according to the target audience. Thus, businesses can better understand which product is preferred by which particular segment of customers. 

Perhaps the one to put it best about IoT’s growing and important role in supply-chain management is Bill Berutti. He’s the CEO of Troy, Michigan-based Plex Systems, whose cloud-based Smart Manufacturing Platform assists with manufacturing execution, ERP, quality management, supply chain planning and management, tracking, Industrial IoT and analytics. 

“Smart manufacturing isn’t something that will happen years down the road,” Berutti says. “It’s real, it’s imperative and it’s happening now.”

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A Certified Information Systems Security Professional (CISSP) specializing in network and IoT security, David Smith has written for Cybersecurity.att.com, Staysafeonline.org and Eccouncil.org. Learn more at thesmartcardinstitute.com.

cyber
Archives, Global Trade Daily, Software

Security and EDI, the Trojan Horses of Cyber Attackers

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If no one is safe from a cyber-attack, then the multiplication of EDI flow increases the vulnerability of a company. Indeed, EDI flows with less protected subcontractors can be privileged entry points for attackers. The choice of a reliable and certified EDI provider is becoming more and more necessary. 

SMEs, the weakest link in cybersecurity

When it comes to cybersecurity, small businesses are the weakest link and the ones that attackers are targeting, so that they reach larger targets. Faced with this phenomenon, some companies use rating companies to estimate the security level of their suppliers and eventually select them according to their score. This approach is extremely costly and is nevertheless reserved for a few large international companies.

A study conducted by cybersecurity firm BlueVoyant shows that of the 1,500 companies surveyed, 77% of CISOs and CIOs report a complete lack of visibility into their vendors’ security. At the same time, 82% have experienced at least one data breach in the past 12 months. This lack of control over third-party security can be explained by the fact that a company’s cyber resources are obviously focused on securing their own information systems. Some companies send a security questionnaire to their partners to assess their practices, but the average company has about 1000 partners, which limits the company’s ability to control them. Cyber threats and protection systems are constantly evolving, and even systems that may appear to be the most mature, such as EDI (Electronic Data Interchange), are not always the most secure.

EDI, a secure technology, but not safe from attackers

By design, EDI flows are secure: the protocol ensures the integrity and traceability of exchanges. The data itself is encrypted, which guarantees its confidentiality and integrity, but EDI flows can potentially be exploited by hackers to infiltrate the information system of a company or its EDI provider, or to divert data indirectly.

Since the 2010s, EDI network flows initially carried by the specialized X25 network have given way to IP and Internet connections. In the same way, the use of EDI has expanded, especially among SMEs, thanks to the development of Web-EDI type solutions, accessible to all. Any company can communicate EDI data via a simple Web browser and this democratization increases the risk of computer hacking.

The ecosystem, a concept too often underestimated by companies

For example, a supplier who links his computer to a client, so he can obtain a list of addresses, will open a connection between the two platforms. By attacking the supplier, the cyber attacker opens a breach towards the client’s company.

While it is appropriate for the supplier to protect its customers, it is also up to the client to qualify the trust it places in the supplier. Intrusion attempts are polymorphous: if identity theft is the most frequent case, companies must generally limit the flow of sensitive data communicated within their ecosystem.

The support of all EDI formats and protocols on the market is the first criterion for choosing an EDI solution. The platform must support EANCOM, EDIFACT, XML, UBL, HL7, JSON, PDF or X12, but also offer interfaces with ERP and business software packages such as SAP, Microsoft, Oracle or Sage. Finally, the EDI provider must obviously have interoperability capabilities with all the countries with which the company will have to exchange. But nowadays, you must also choose your EDI provider according to its maturity and its investments in cybersecurity.

The role of the EDI provider has evolved; it has become a key player in protecting companies from these attacks and the company itself must ensure the seriousness of the protections put in place by its EDI provider before connecting to its service.

Certifications and standards are a way to ensure the seriousness of its processes. An ISO 27001 certification appears as an essential criterion in the selection of an EDI provider. It is up to the provider to ensure that the data flow is not subject to a “Man in the Middle” attack. It is also the provider who stores the data exchanged between EDI partners. This storage must therefore be encrypted to ensure that, even if an attacker manages to penetrate the defenses in place, he cannot exploit the data exposed to his attack. Asymmetric encryption is the most secure solution to protect data, but some players are now turning to Blockchain technology to further increase the security level of their EDI.

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

potato
Archives, Global Trade Daily, Imports/Exports

World Potato Trade Slips Under $5B

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

Global potato exports dropped from $5.1B in 2019 to $4.3B in 2020. France, the Netherlands and Germany constitute major potato exporters worldwide. In 2020, the average potato export price amounted to $327 per tonne, decreasing by -6.3% y-o-y. Belgium, a country with one of the highest per capita potato consumption figures, remains the world’s largest importer. Over the last year, most importing countries have reduced their potato purchases. By contrast, Belgium, Spain, the U.S., Uzbekistan, Ukraine, the Czech Republic and the UK boosted their imports. 

Global Potato Exports by Country

Global potato exports shrank to 13M tonnes in 2020, dropping by -11.3% compared with the year before. In value terms, potato exports plummeted from $5.1B in 2019 to $4.3B (IndexBox estimates) in 2020.

The biggest shipments were from France (2.3M tonnes), the Netherlands (2M tonnes) and Germany (1.9M tonnes), together recording 48% of total export. It was distantly followed by Belgium (1M tonnes), comprising a 7.7% share of total exports. Egypt (561K tonnes), Canada (530K tonnes), the U.S. (506K tonnes), China (442K tonnes), Kazakhstan (318K tonnes), India (298K tonnes), Spain (285K tonnes), the UK (279K tonnes) and Pakistan (276K tonnes) occupied a relatively small share of total exports.

In value terms, the Netherlands ($826M), France ($684M) and Germany ($374M) were the countries with the highest levels of exports in 2020, with a combined 44% share of global exports. Canada, China, the U.S., Egypt, Belgium, the UK, Spain, India, Pakistan and Kazakhstan lagged somewhat behind, together accounting for a further 39%.

In 2020, the average potato export price amounted to $327 per tonne, falling by -6.3% against the previous year. There were significant differences in the average prices amongst the major exporting countries. In 2020, the country with the highest price was China, while Kazakhstan was amongst the lowest.

World’s Largest Potato Importers

In 2020, Belgium (3M tonnes), distantly followed by the Netherlands (1.6M tonnes), Spain (0.9M tonnes) and Germany (0.7M tonnes) were the main importers of potatoes, together achieving 43% of total imports. Italy (618K tonnes), the U.S. (501K tonnes), Uzbekistan (409K tonnes), Portugal (378K tonnes), France (331K tonnes), Ukraine (285K tonnes), Russia (241K tonnes), Malaysia (236K tonnes) and Canada (233K tonnes) followed a long way behind the leaders.

In value terms, Belgium ($595M), the Netherlands ($345M) and Spain ($314M) were the countries with the highest levels of imports in 2020, together accounting for 28% of global imports. The U.S., Germany, Italy, France, Russia, Portugal, Canada, Malaysia, Ukraine and Uzbekistan lagged somewhat behind, together accounting for a further 30%.

Most importing countries have reduced their purchases over the last year. Belgium, Spain, the U.S., Uzbekistan, Ukraine, the Czech Republic and the UK were among the few countries that increased their imports in 2020.

The countries with the highest levels of potato per capita consumption in 2020 were Belarus (608 kg per person), Belgium (522 kg per person) and Ukraine (474 kg per person).

Source: IndexBox Platform

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Heat-Resistant Nickel Alloy to Witness Soaring Demand from Onshore Power Plants over 2021-2027

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Nickel alloy has always been an important material for various industries, including some high-revenue sectors such as automotive, aerospace & defense, owing to its high solubility with iron, chromium, and other vital metals. The high versatility of the material, along with its exceptional heat and corrosion resistance properties enables its application in aircraft gas turbines, steam turbines in power plants, and other high-performance applications.

In onshore wind power plants, nickel-based alloys are primarily used in the gearing and generator components. On the other hand, in hydroelectric installations, nickel alloys are used in turbines owing to their exceptional erosion and corrosion resistance features.


A growing world government emphasis on scaling up power plant infrastructures, coupled with the soaring number of onshore power projects sanctioned to cater to the rapidly rising electricity demand, would foster the demand for nickel alloy to a large extent.

According to Global Market Insights, Inc., report, the global nickel alloy market size is expected to witness remunerative growth by 2027.

Nickel-based alloys and metals have wide-ranging applications in the automotive sector. Apart from its utilization in many automotive parts, nickel is extensively used in the batteries of electric vehicles. Nickel-manganese-cobalt (NMC) lithium-ion battery is witnessing significant adoption in EVs due to its extended power backup.

The rise in electric vehicle production globally is likely to drive the demand for nickel alloy in the coming years. As per the International Environment Agency, approximately 2.1 million electric vehicles were sold in 2019. Moreover, nickel and chromium plating are also used on numerous automotive components to enhance vehicles aesthetics.

The heat-resistant nickel alloy segment is forecast to hold considerable market share by the end of 2027, particularly owing to increasing demand in high-temperature applications. These applications include oil & gas production, and power plants, among others. There have been rising government initiatives to develop a large number of onshore and offshore power plants and oil & gas refineries mostly in developed nations.

From a regional frame of reference, the European nickel alloy industry share is anticipated to expand exponentially owing to the rising number of passenger jet fleets. As per the CAPA Fleet Database, the passenger jet fleet in Europe rose by 1.8% month-on-month in February 2021, to 3,400. The applications of nickel in aircraft engine turbines bring toughness, high-temperature strength, and durability.

Meanwhile, stringent environmental norms encouraging the adoption of electric vehicles and the establishment of renewable-energy power plants would positively influence nickel alloy business in Europe.

Leading companies involved in global nickel alloy business include Ametek Inc., Sandvik AB, Rolled Alloys, Inc., Aperam S.A., Voestalpine AG, Allegheny Technologies Incorporated, Haynes International, Precision Castparts Corporation (Berkshire Hathaway), and ThyssenKrupp AG, among others. These industry players are focusing on strategic alliances and novel product development to strengthen their position in the global market.

Nickel alloy plays a vital role in the transportation sector, right from its utilization in EVs, aircraft, and traditional automotive. Nickel-based stainless steel is used in passenger trains and subways to offer strongness and durability to the outer body. Superior mechanical properties, along with the ability to dilute with other materials expected to foster applications of nickel and nickel-based materials in the forthcoming years.

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Archives, Global Trade Daily, Imports/Exports

American Canned Meat Imports Rise Steadily

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

Over the past decade, American imports of canned meat increased twofold, from $447M in 2010 to $1B in 2020. In physical terms, the U.S. canned meat imports rose by +4.5% y-o-y to 152K tonnes last year. Canada, Brazil and Poland constitute the largest suppliers of canned meat to the U.S., providing 72% of the American import volume. In 2020, Denmark emerged as the fastest-growing exporter of canned meat to the U.S. Last year, the average canned meat import price amounted to $6,669 per tonne, decreasing by -2.8% compared to the figures of 2019. 

American Canned Meat Imports

Over the period from 2010 to 2020, American imports increased twofold, from $447M to $1B. In 2020, imports of canned meat into the U.S. expanded slightly to 152K tonnes, with an increase of +4.5% compared with the year before. In value terms, canned meat imports grew by +1.6% y-o-y to $1B (IndexBox estimates) in 2020.

Canada (61K tonnes), Brazil (40K tonnes) and Poland (9.5K tonnes) were the main suppliers of canned meat imports to the U.S., together comprising 72% of total imports. These countries were followed by Chile, Mexico, Denmark and Uruguay, which together accounted for a further 21%.

In value terms, Canada ($392M), Brazil ($323M) and Poland ($46M) constituted the largest canned meat suppliers to the U.S., with a combined 75% share of total imports. Uruguay, Mexico, Denmark and Chile lagged somewhat behind, together comprising a further 15%.

Among the main suppliers, Denmark (+59.0% per year) recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

In 2020, the average canned meat import price amounted to $6,669 per tonne, dropping by -2.8% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Brazil ($8,085 per tonne), while the price for Chile ($3,375 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Denmark, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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Archives, Global Trade Daily, News

Growing Demand for Lightweight Wind Blades to Augment Carbon Fiber Prepreg Market through 2027

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The global carbon fiber prepreg industry is slated to record rapid growth from rising demand for greater durability, fuel efficiency, and low-weight components from the aerospace and automotive sectors. Carbon fiber prepreg is a reinforced fabric made from pre-impregnated and cured polymer matrix.

The material offers a high stiffness to weight ratio and superior resistance against chemicals and fatigue. Owing to these advantages, prepreg carbon fibers find a broad range of applications across a plethora of industrial avenues.

The incorporation of carbon fiber prepreg in automobiles drastically reduces the overall vehicle weight without compromising on strength. This leads to higher fuel efficiency and performance improvement in vehicles. Stringent carbon emission norms and growing demand for fuel-efficient vehicles are encouraging motor vehicle manufacturers to incorporate more of these carbon materials in their product portfolios.

 


Moreover, with growing automotive production, the demand for carbon fiber prepreg is likely to go up to a large extent. As per the International Organization for Motor Vehicle Manufacturers, nearly 77.62 million commercial vehicles and cars were produced in 2020.

According to the latest industry report by Global Market Insights, Inc., the global carbon fiber prepreg market size is anticipated to grow considerably by 2027.

Carbon fiber prepreg materials are seeing a very promising application scope in the aerospace industry. Various aircraft manufacturers are increasingly refurbishing aircraft with these reinforced carbon fibers in a view to minimize aircrafts’ weight, enhance gasoline mileage, and provide affordable & safe air transportation services to the customers.

Carbon fiber prepreg also boasts of many other applications, including sporting goods, racing vehicles, pressure vessels, and commercial products. There has been an increasing demand for light-weight high-strength materials, particularly in racing vehicles, including bikes and cars, to make them lighter and hence, amplify their velocity and stability on the racetracks. Meanwhile, various sporting goods manufacturers are emphasizing on utilizing soft carbon fabrics to provide comfort to their customers, opening up additional avenues of business growth.

Carbon fiber prepreg industry share from wind power plants is expected to witness substantial momentum in the forthcoming years. This is owing to the growing utilization of pre-impregnated carbon fibers in wind blades. These materials offer high tensile and compressive strength due to which they are broadly adopted for the latest generations of wind turbines.

In addition, the material’s use provides a number of cost and performance benefits to the wind industry. According to Sandia National Laboratories, wind blades made from carbon fibers weigh 25% less than the ones made from fiberglass materials. This means that the carbon fiber wind turbine blades can be much longer than the ones made out of fiberglass. As a result, the wind turbines can effectively harness more energy across locations that were previously deemed as low wind areas.

Electricity generation through renewable sources is surging rapidly in developed countries. As per the U.S. Department of Energy, wind power is the second-largest source of electricity generation in the country, which accounted for a total installed capacity of 105.6 GW in 2019. With carbon fiber wind turbine blades pegged to become industry standard, the adoption of carbon fiber prepreg materials is expected to witness a  significant jump.

The North American carbon fiber prepreg industry is slated to hold a considerable share of the global market, particularly owing to growing demand from the automotive and aerospace industries. Leading OEMs in the country are focusing on employing lightweight materials in automobiles to enhance fuel efficiency and comply with stringent vehicles emission norms set by the government. Growing penetration of electric vehicles and rising preference for air travel are some of the more notable factors that would foster business growth in the country.

Park Aerospace Corp (previously Park Electrochemical Corporation), Hexcel Corporation, Toray Industries, Mitsubishi Rayon Co. Ltd., Gurit Holdings AG, Axiom Materials, SGL Group, and Solvay SA are some prominent companies operating in global carbon fiber prepreg industry. These pre-impregnated carbon fiber manufacturers are eyeing focusing on leveraging novel technologies to produce highly efficient materials and cater to the larger consumer base.

Soaring adoption of lightweight, high-strength materials in numerous industries, to cater to the rising demand for efficiency, would outline the industry outlook. Additionally increasing environmental regulations to curb emission is also forecast to complement global carbon fiber prepreg industry trends.

PVC
Archives, Global Trade Daily, Imports/Exports

Chinese Exports of PVC Coverings Jump to $5.7B with Booming Demand from the U.S.

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IndexBox has just published a new report: ‘China – Floor, Wall Or Ceiling Coverings Of Plastics – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Chinese exports of PVC floor, wall and ceiling coverings spiked by +14.0% y-o-y to $5.7B, reaching the highest level over the past decade. From 2010 to 2020, exports of PVC coverings from China rose from 720M square meters to 5B square meters. China leads in global PVC coverings exports with a 75%-share of the total volume. The U.S. remains the key foreign market for  PVC covering exports from China, accounting for 59% of the exports. Canada and Germany follow the U.S. in this ranking. In 2020, the average export price for Chinese PVC coverings amounted to $1.1 per square meter, falling by -6.4% y-o-y. 

Chinese PVC Coverings Exports

In 2020, exports of PVC floor, wall and ceiling coverings from China soared to 5B square meters, picking up by +22% compared with 2019 figures. In value terms, exports of PVC floor, wall and ceiling coverings expanded by +14.0% y-o-y to $5.7B (IndexBox estimates) in 2020.

In physical terms, Chinese exports of PVC coverings rose from 720M square meters to 5B square meters over the past decade. China is the largest exporter of PVC coverings with a 75%-share of global exports.

The U.S. (2.9B square meters) was the main destination for exports of PVC floor, wall and ceiling coverings from China, accounting for a 59% share of total exports. Moreover, exports of PVC floor, wall and ceiling coverings to the U.S. exceeded the volume sent to the second major destination, Canada (328M square meters), eightfold. The third position in this ranking was occupied by Germany (178M square meters), with a 3.6% share.

In value terms, the U.S. ($3.2B) remains the key foreign market for PVC floor, wall and ceiling coverings exports from China, comprising 56% of total exports. The second position in the ranking was occupied by Canada ($339M), with a 6% share of total exports. It was followed by Germany, with a 3.4% share.

In 2020, the average annual rate of growth in terms of value to the U.S. amounted to +17.9%. Exports to the other major destinations recorded the following average annual rates of exports growth: Canada (+24.5% per year) and Germany (-3.0% per year).

In 2020, the average export price for PVC floor, wall and ceiling coverings amounted to $1.1 per square meter, with a decrease of -6.4% against the previous year. Average prices varied noticeably for the major foreign markets. In 2020, the countries with the highest prices were the UK ($1.2 per square meter) and Belgium ($1.2 per square meter), while the average price for exports to Canada ($1 per square meter) and the U.S. ($1.1 per square meter) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to Germany, while the prices for the other major destinations experienced a decline.

Source: IndexBox Platform

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

Factors that are Reshaping the Supply Chain Industry

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

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

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

Artificial intelligence

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

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

The pace of technological change

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

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

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

The Internet of things

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

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

Automation and robotics

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

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

Big Data

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

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

3D printing

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

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

Factors that are reshaping the supply chain industry – delivered

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

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

quality control
Archives, Global Logistics, Global Trade Daily, Special Reports

Understanding the Importance of Quality Control in Manufacturing

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For manufacturers, there is a direct link between number of units sold and quality control. It may not be super clear and obvious that there is a link but nevertheless, the link exists, and it is solid: Consistent, well-made products boost revenues and customer retainment, while product defects drive existing customers and prospects into the eager arms of the competition.

The word “quality control” is often used loosely and can have different definitions for different people. The infographic below goes to the trouble of defining QC and disorientating itself from quality assurance, another necessary discipline in the world of manufacturing. The main point of quality control is its focus on preventing defective products from getting out in the world and reaching the consumer. Once you understand this simple (but sometimes elusive) definition of quality control, its connection to sales and the number of units sold becomes crystal clear.

The true cost of product defects is high on a number of fronts. If the end-user receives a defective product, a lot of bad and costly things can happen. If the product causes injury or death, just the cost of litigation can be enough to put even a large manufacturing organization out of business. And that’s ignoring the emotional toll of having one of your products hurt a person. If the manufacturer is lucky, the defects will be identified on the receiving dock, in which case the costs may be “limited” to a rejection, return and replacement.

On the flip side, high-quality standards help build a company’s reputation for quality. These high-quality standards can help attract prospects, generate referrals, earn reorders and allow the company to set higher prices. That is why QC is so important and should be emphasized early and often. For more on this, continue reaching below on how to improve your QC today.

 

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John Vogel brings over 38 years of experience in the Aerospace and Defense sector and leads the Quality function at Marotta Controls, Inc. As the VP of Quality, John is responsible for Quality Control, Quality Engineering, Quality Systems, Supplier Quality, Continuous Improvement and Calibration & Metrology.

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

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

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

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

1. Cobots

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

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

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

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

2. IoT Sensors

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

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

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

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

3. Additive Manufacturing

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

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

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

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

4. 5G Connectivity

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

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

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

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

5. Machine Vision Error Detection

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

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

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

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

New Technologies Make Manufacturing More Profitable

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

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