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AIT Worldwide Logistics Cincinnati Team Boosts Capacity for Big, Bulky E-commerce Shipments with Move to Larger Facility

Recent delivery passage in the U.S. Senate of comprehensive legislation aimed at boosting domestic manufacturing of semiconductors is helping to Stemming from the COVID-19 pandemic, the logistical bottleneck continues to reverberate around the world as carriers, shippers and third
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AIT Worldwide Logistics Cincinnati Team Boosts Capacity for Big, Bulky E-commerce Shipments with Move to Larger Facility

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Strategically located warehouse, office supports increased cross-docking capabilities.

As global supply chain solutions leader AIT Worldwide Logistics continues to expand, the organization recently relocated its team of transportation logistics professionals in the metropolitan Cincinnati area to a nearby larger location.

This new facility will enhance their ability to serve customers more efficiently. It greatly expands the warehouse footprint, which optimizes the flow and presentation of cargo, ultimately improving their customers’ speed to market.

With 12 dock doors, one drive-in, and 74,000 square feet of warehouse space, the new AIT-Cincinnati is well-suited for cross-docking operations, including stacking, palletizing, shrink wrapping, labeling, organizing and routing the floor-loaded freight arriving from consumer retail shippers.

An advantage of this relocation includes that the new building is less than two miles away from the team’s previous location, making the move seamless for existing customers.

Another advantage is the location’s proximity to southern Ohio distribution centers, providing streamlined transit to East Coast destinations with less congestion than other cross-docking options in traditional Midwestern metropolitan hubs.

This new Cincinnati location will support AIT’s mission to deliver world-class service. The team provides flexible domestic ground distribution, warehouse management, and white glove final-mile delivery services for a broad range of customers across the e-Commerce, retail and residential delivery industries.

According to the site’s operations manager, the Cincinnati team primarily supports non-conveyable freight—big, bulky products like swimming pools and high-end furniture that don’t fit in with the strict scope defined by the major parcel carriers. In a stark comparison to the brand-name carriers’ prohibitive oversize fees, AIT offers an economical large parcel delivery service that can save shippers nearly $2,000 per delivery for their largest, bulkiest items.

The group, which boasts same-day turnaround for dozens of truckloads each week, also features a dedicated track and trace unit, managing shipments on every step of the journey to final delivery.

With plans to double the teammate population in the next three years, AIT also designed the space to attract top talent, incorporating amenities, including plans to renovate the facility’s breakrooms.

AIT-Cincinnati is strategically located near Interstate Highway 275 for easy employee and truck driver access.

 

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5 STRATEGIES TO EXPAND YOUR BUSINESS GLOBALLY, EVEN IN TRYING TIMES

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It has been more than four decades since my first overseas assignments in Southeast Asia and the Middle East. Since then, I have encountered numerous political, economic, and natural crises around the world. None at the level of disruption that the current COVID-19 pandemic has had. Nor did any of these events cause as much global change to consumer trends, political upset, economic turmoil, company changes or supply chain disruption. 

To move forward with the expansion of your business into other countries in 2022, it is essential to consider the collective impact of all this disruption and its resulting changes to how global business can be done successfully. The good news is that consumer demand and spending have never been at a higher level around the world. The challenge is to focus your limited resources on the countries that have the highest potential return on your global business development investment.

What follows is a list of strategies to help with global business expansion, even in the extremely unprecedented times we are currently facing. 

Place immense care on where you plan to take your business. 

It has always been crucial to carefully choose which countries are optimal for new business ventures for your specific company and brand but coming out of the COVID-19 pandemic, it is even more critical to relook at all markets to understand what has changed in consumer trends and evaluate economic, political and regulatory changes for businesses in a specific country. 

Governments have enacted COVID-19 related policies and changed tax and foreign investment regulations. As in your home country, these changes have occurred at the national, regional and local levels and will not necessarily be the same as what has been implemented in the country you currently do business in.

Consumers worldwide have learned to buy online and have their purchases delivered. This impacts the entire sales process including retail brick-and-mortar locations. While online buying was present before the pandemic, it accelerated and became the norm in more countries over the past year and a half. Consumers can compare product prices and attributes online before making a buying decision. Marketing and product differentiation are much more critical to a business’ success today.

Cultivate your local partners, distributors and licensees wisely. 

It is important to increase the amount of due diligence when selecting partners because COVID has changed the structure, viability and financial status of most companies. It is essential to find out if who you will be doing business with has the infrastructure and financial resources you require to succeed in a country. 

Do not depend on just what you are provided by the company that wants to do business with you; seek third-party confirmation. This has always been important but given the mass shutdowns of businesses across the globe during the pandemic, it is even more important in today’s international business climate. Spend the money to be sure about who you do business with.

Be prepared to adapt to local culture and changing environments. 

More than ever, clear differentiation by country is essential for your business and brand to succeed. Sensitivity to local business and consumer culture is also a key component. 

Invest up front to learn whether the products and services your business offers fit the current market and project what will be needed to fit in and make money going forward. Expect menu changes, pricing variations, labeling and packaging adjustments, alternate marketing approaches and different costs to do business than here at home.

Given the supply chain disruptions that we continue to see across the globe, it is absolutely critical to work with your logistics specialist to understand the cost to ship products and the timeline for the shipment to arrive in the target country. 

Have strong senior management commitment and a proactive business plan for entering other countries. 

Taking a business into new countries is not typically an instant topline revenue venture, and there are numerous associated costs such as legal, supply chain, training, support and marketing investments to consider. Going global is a company-changing strategy that takes time and strategic planning. 

Devote ample time for developing a plan that projects expected revenue and expenses over time in each country you plan to enter. Note that the cost of doing business varies widely across the world. Labor, cost of goods sold, rent and utilities will be different from country to country. 

Embrace, invest in and implement technology to manage your global activity. The use of technology allows companies to communicate, monitor and manage operations across many time zones in real time and keep in-country training and support costs down. 

Finally, monitor respected international information sources daily to know what is happening in your target country. 

The one thing you can depend on is change coming out of the pandemic. Today, we have to monitor the flow of goods, trade agreements, local regulatory decisions and cross-border trade diplomacy constantly to be able to predict what to do and where to go to make money when doing business on an international scale. As the authority for U.S. companies doing business globally, the daily update at Global Trade Magazine is an excellent source of what is happening around the world.

Bottom Line: I see more global business opportunity than ever before in my career of covering projects across 50 countries. Ninety-five percent of today’s consumers are outside the United States. Two thirds of the new middle-class consumers will be in Asia. Products and services from western countries are highly regarded in emerging markets. With the proper preparation and constant monitoring, businesses with high-quality products and services can successfully penetrate other countries, even in times like these. While it is not an easy process, it can be done with the right strategy and hard work.

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William (Bill) Edwards, CFE is CEO and global advisor at Irvine, California-based Edwards Global Services (EGS). He brings more than four decades of international operations, development, executive and entrepreneurial experience and has lived in seven countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Edwards advises a wide range of companies on early to long term global development of their brands. He can be contacted at +1 949 224 3896 or at bedwards@edwardsglobal.com.

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Archives, Global Site Selection, Global Trade Daily, International Trade

Making Inroads Overseas: Strategies for Winning International Business

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While the U.S. may have the largest third-party logistics market of any nation, there’s plenty of global opportunity to capitalize on. Companies that can break into international markets could reap considerable rewards.

The rise of e-commerce and other internet-based businesses has made the world more interconnected than ever. Consequently, there’s a rising demand for fleets that operate between borders. Smaller, up-and-coming economies with less saturated markets pose an enticing growth opportunity, too.

While expanding into overseas markets can be highly profitable, it’s also often challenging. These six strategies can help companies overcome these challenges to win international business.

1. Research Ideal Markets

One of the biggest mistakes a company can make is expanding into new territory without researching first. Different countries come with different legal restrictions, economic considerations, and market atmospheres. Companies must understand these before choosing where to start their international growth strategy.

For example, Germany has the world’s highest-performing logistics market, which would make it seem like the ideal place for expansion. But since it’s also home to DHL, which holds 39% of the global market share, it may be hard to succeed there. Preliminary market research would’ve revealed that, informing more effective expansion.

Businesses should research the local markets in different countries to find the most profitable area to expand into. That includes looking at tax considerations, competition, and customer needs. Without considering all of these factors, globalization initiatives will likely cost more than they bring in.

2. Understand the Local Culture

Similarly, after deciding on the ideal market, businesses should understand any cultural differences they’ll encounter. Tapping into the local culture can make marketing initiatives more effective and help impress potential clients. Alternatively, if businesses don’t understand these differences, they may accidentally offend or disinterest customers and partners.

Understanding cultural divides can make or break a company’s success, especially when meeting potential international partners. For example, while it’s a rule of thumb in the U.S. to show up five to 10 minutes before a meeting, it may be longer or shorter in other countries. Not understanding that could hinder a meeting’s productivity.

Other countries may have differently structured workweeks and holidays that could affect business, too. The United Arab Emirates, for example, observes the weekend on Friday and Saturday, not Saturday and Sunday. Knowing this before going in can determine whether a business thrives internationally or struggles to get its footing.

3. Partner With Regional Businesses

Another crucial strategy for expanding internationally is partnering with overseas businesses. Companies based in the area will already have the cultural and legal knowledge needed to navigate the local market environment. They will also already have consumer and business connections, giving U.S. companies a foot in the door.

An important step in this strategy is to meet these potential partners in-person as much as possible. Taking the time and money to fly out to meet them shows a willingness to invest in their company. This can give businesses a leg up on any other competitors for the partnership.

Without a local partner, it can be challenging to succeed in a foreign market. Companies will have to establish their brand name, build a customer base, and navigate potentially complicated legal considerations. Foreign partners can cover all of these factors early, letting businesses get off the ground sooner.

4. Adapt Your Marketing Strategies

Since every country has its own culture and values, effective marketing materials are rarely universal. As such, logistics companies trying to expand into overseas markets must adapt their marketing strategies. Research and international partners can reveal local customers’ habits and preferences, informing more effective ads and promotions.

Large restaurant chains serve as excellent examples for adapting international marketing strategies. In France, McDonald’s offers a free illustrated book with every Happy Meal purchased on the first Wednesday of the month. This doesn’t make much sense in the U.S., but children in France don’t go to school on Wednesdays, making this an effective strategy.

Promotions that work in the states may not be as appealing overseas. Similarly, other countries may have holidays, customs, or trends that present unique marketing opportunities that wouldn’t succeed in America. If companies want to be as successful as possible overseas, they must adapt.

5. Localize Your Website

It’s hard to overstate the importance of having an appealing website in today’s market. In many countries, the number of internet users has doubled in the last three years, and websites often serve as customers’ first impressions of a business. While this may be true across borders, what constitutes an ideal website may not be as consistent.

Businesses must localize their sites to fit global audiences. The most obvious step in this process is translating all of the text, but that’s not all localization entails. There are also various cultural connotations and preferences about design and business practices to consider.

Some colors may be appealing in the U.S. but carry a negative connotation in other cultures. While English reads from left to right, not all languages do, so websites in some countries may need to be mirrored to account for this. Turning to contacts in these countries or localization firms can help account for these differences.

6. Capitalize on Local Resources

Many globalization strategies involve taking steps to navigate unique challenges in overseas markets. While these are crucial, the most effective international expansion efforts also look for other areas’ unique benefits. Every country has unique resources to offer, so businesses should take advantage of these opportunities.

One example of a company implementing this strategy is the grocery store chain H-E-B. When H-E-B went international, it bought blueberries from Chile and Peru, giving it access to fresh blueberries year-round. Capitalizing on these warmer climates helped the company expand its offerings, pushing revenue higher.

Businesses should look for what resources different areas have, such as relaxed tax codes or cheap transportation markets. Taking advantage of these instead of keeping business models the same across all countries will maximize international success.

Make the Most of International Expansion

As the world becomes more interconnected, global expansion becomes an increasingly enticing strategy. Companies that can capitalize on it early will see the most success in the future. These six strategies provide a roadmap for doing so.

Winning international business can be a challenge, but it also presents several opportunities. If businesses can act on these steps, they can expand into foreign markets more effectively. They can then enjoy all international business has to offer.

Archives, Global Trade Daily, News

Report: Global Expansion Addressing Talent Recruitment for U.S. Tech Companies

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A report released by Velocity Global revealed an interesting approach U.S. technology companies are planning to tap into a broader talent pool. The State of Global Expansion 2019 report, which surveyed 500 U.S. and 500 UK tech companies, confirmed 85 percent of firms plan to implement global expansion efforts in markets known for having the highest potential for the best global talent, such as Europe (23%) and Asia (23%).

“The survey provides a fascinating snapshot of the way U.S. tech firms are feeling about their global ambitions,” CEO of Velocity Global Ben Wright said. “It reveals an outward-looking sector that has the confidence to pursue growth internationally and recognizes these companies understand the benefits that global expansion can bring to businesses.”

“Crucially, the businesses we polled recognize that when it comes to tech, people are everything,” Wright continued. “Many of them are expanding overseas not just because U.S. tech carries with it a reputation for innovation and excellence, but also because they want to ensure they have a presence in markets with the brightest talent.”

The survey also revealed talent recruitment continues to be a primary challenge above employee immigration management, long-distance client communication, finding expert consultancy, and managing new payroll processes. International expansion is the common solution among U.S. tech companies, as more results from the research confirmed companies seeking to add talent are looking beyond U.S. borders, and into foreign markets. Out of the 54 percent surveyed companies operating strictly in the U.S., the report revealed that this number will drop to only 22 percent by the end of 2019.

“It’s understandable that some businesses continue to have reservations about taking those first steps into unfamiliar overseas markets. Yet more often than not, the myriad opportunities outweigh the risks. And with the right advice and an expert partner on hand to simplify processes, it can be hugely rewarding and the route to future growth.”

To read more about the report’s findings, visit: VelocityGlobal.com

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Braselton, Georgia Scores Two Major Economic Development Projects

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Braselton, GA – Two Japanese companies – Hitachi Power Tools (HPT) and sports equipment maker Mizuno USA – have announced plans to relocate some or all of their North American operations to the northeast Georgia community of Braselton.

HPT said it will relocate its headquarters there later this year “to consolidate warehouses on the east coast, improve workplace efficiency as well as prepare for expected future growth.”

The company will operate out of a new 540,000-square foot facility featuring a state-of-the-art cross dock facility with access to both the north and southbound I-85 Highway and the newly rerouted State Route 124.

HPT, a subsidiary of Tokyo-based Hitachi Ltd., manufactures professional grade power tools and accessories for woodworking, metalworking, drilling and fastening, concrete drilling and cutting, outdoor power equipment products, as well as a complete line of pneumatic nailers, staplers, compressors and collated fasteners.

“This new location is ideal to maximize warehousing efficiency and provide the over 100 current Hitachi employees with a professional work environment in an exciting area of Georgia that is experiencing its own growth and development,” the company said.

By the end of this year, Mizuno USA will relocate all of its distribution and manufacturing operations to a new 520,000 square-foot facility “that will significantly increase the current supply chain footprint to meet emerging and future supply chain needs.”

“Mizuno USA has seen strong growth, tripling sales since 2000,” said Bob Puccini, President of Mizuno USA, Inc. and Director of Mizuno Corporation. “Our growth expectations are even higher for the next five years with award-winning innovations and increased spending in brand marketing initiatives. This investment is a critical next step for our business to be able to service the omni-channel supply needs of our customers and consumers.”

The new facility will merge the company’s two distribution facilities to service all Mizuno USA divisions, including running, golf, and team sports, and relocate its golf manufacturing center from Norcross, Georgia, increasing its custom golf club production capabilities two-fold.

Current Mizuno employees will transition to the new facility later this year following renovations to the new facility.

The distribution center will have 150 full time positions and bring seasonal work opportunities starting in 2015, while the company’s US corporate offices will remain in Norcross.

06/26/2014