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5 Ways to Ease Canadian Supply Chain Pain

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Archives, Global Trade Daily, International Trade

5 Ways to Ease Canadian Supply Chain Pain

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Canadian businesses are facing a painful dilemma as they enter the second half of 2021.

A study released by the Bank of Canada in early July shows business confidence has soared across the country as vaccination programs have rolled out and reduced restrictions on public movement. Business leaders reported strong sales outlook, unprecedented levels of planned hiring and plans for greater investment. In fact, the monetary policy overseer’s quarterly survey showed confidence at its highest level since 2003.

There is good reason to be buoyed about the future. Canadian consumers have saved an estimated $220 billion during the pandemic that they are now looking to spend. Another Bank of Canada survey showed near unprecedent intentions amongst consumers to spend their savings once the economy opens. That is the good news.

The bad news is retailers, wholesalers and service-sector businesses reliant on the movement of goods are also facing unprecedented supply chain woes. Shipments of goods critical to the success of these businesses have been delayed by months due to backlogs at ports in Asia stemming for a global container shortage. In its survey, the Bank of Canada found 60% of businesses would have some difficult or significant difficulty meeting demand if there was a sudden increase. Commodity prices have soared to their highest levels since 2014 while factory-gate prices in China – where many manufactured goods are produced and exported to Canada – witnessed a year-over-year increase of 6.8% in April 2021. Shipping costs from China to the coast of British Columbia have tripled.

‘Just in Case’ Becoming the Norm

The delays and escalating costs of shipping are prompting businesses to stockpile inventory at rates not seen in recent years. The just-in-time supply chain model that has characterized the movement of goods throughout most of the 21st century is now being traded in for a just-in-case model. But the market has responded accordingly with warehouse lease rates up 25% and warehouse availability almost non-existent with little new capacity slated in the near term. In some cases, businesses have had to invest far more heavily in warehousing than they had planned when inventory arrived at port on time, along with delayed inventory and the oversupply that could not be contained within existing warehouse space. In addition, fiscal stimulus programs have tightened the labor market, driving down labor availability and driving up labor costs.

All the added expense is fuelling concerns about inflation as businesses pass down the additional costs to consumers. A spike in inflation could dampen consumer demand, which would then resolve the supply chain woes, but would also stagnate economic recovery. This leads to the greater challenge of whether to plan for a consumer boom or a more temperate market.

What is a Business Decision Maker to Do?

As the old saying goes, necessity is the mother of invention. Businesses have been finding creative solutions to supply chain problems as they have arisen – from alternative transport routes and methods to new suppliers and even alternative materials to build their products.

The reality, however, is there is no one-size-fits-all solution to the supply chain woes being faced by Canadian importers. Solutions will vary based on industry, pain points, sourcing markets, ports of entry and several other factors.

Gain Visibility: One of the key actions being taken by businesses is digging in to learn more about their suppliers’ suppliers. Doing so allows them to better identify potential disruptions where materials may be scarce, or transit routes are congested.

Call for Backup: Even businesses that have reliable suppliers should consider finding alternative sources of supply and ideally from a different country. In most cases, delayed supply is the result of congested ports or a regional dearth of cargo container availability. Finding backup suppliers in other markets means not only having an insurance policy for supply but also for transport.

Make Accurate Supply Projections: It is a tall order to know how consumers intend to spend in the wake of a global pandemic. But businesses that use analytics to gauge future demand will suffer fewer supply chain headaches as they will be able to plan better for anticipated inventory arriving from overseas.

Secure Freight: Cargo capacity is at historic lows as businesses around the world fight for space on ocean freighters. Even inland transport has become challenging. For businesses that have not secured space, finding available transport can be near impossible. Working with a freight forwarder can help not only to identify available capacity but also to secure space for future supply. This is particularly true for businesses that have a stronger gauge of upcoming demand.

Lower Landed Costs: Businesses searching for alternative suppliers can often find cost savings by leveraging free trade agreements to reduce duty outlay. Canadian businesses may find refuge in trade agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which gives importers free trade access to markets like Vietnam and Singapore. Other opportunities may be found with suppliers in Europe via the Comprehensive Economic and Trade Agreement (CETA). Of course, Mexico is a viable alternative to sourcing in Asia and is party to the recently enacted United States-Mexico-Canada Agreement (USCMA) that replaced NAFTA. Using Mexico could also remove the need to use ocean freight where congested ports are forcing weeks-long delays to bring goods to market.

When will it End?

Canadian importers are anticipating the day when business can get back to normal. After years of uncertainty over the fate of free trade in North America, conflicts with the U.S. over steel, aluminum, and lumber, and conflicts with China over agricultural goods, there is a desire to see things stabilize. The reality, however, is that Canadian importers will have to compete with their counterparts in the U.S. and other markets with recovering demand for cargo space. While more containers are being brought online, the shortage is anticipated to continue into the early part of 2022 or even later. That means rates will remain high for the foreseeable future, particularly for Asia-origin goods moving to North America’s west coast.

_____________________________________________________________

Michael Zobin is a Canada-based director of global trade consulting at Livingston International. His expertise includes supply-chain optimization; duty deferral and drawbacks; conducting compliance program reviews; developing compliance procedures; voluntary disclosure; and post-entry review.

pallet packaging
Archives, Global Logistics, Global Trade Daily, Warehousing

All About Packaging – Pallets

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Packaging is such a broad term that covers everything from a metal crate for a train battery to a gusseted pouch for pancake mix.  One variable that the majority of packaging has in common is nearly all packages are stored or ship on a pallet at some point in the supply chain. Coincidently, a pallet is also often the most misunderstood type of packaging! In this article, we will be completing a deep dive into pallets including a few secret tricks we use to drive out costs associated with pallets.

What is a pallet?

A pallet is a horizontal platform that is used as a base to unitize goods during transportation and storage. Pallets are typically handled in the supply chain by forklifts, fork trucks, and conveyor systems. Most commonly a pallet is made of wood but can also be constructed of other materials such as metal, plastic, corrugated, and hexacomb.

Why is a pallet used?

Pallets are used as the most common method of unitizing products to safely and effectively move and store goods through the supply chain. Pallets also allow for stacking goods in racking or multiple pallets stacked on top of each other.

Pallet Material

Once it is determined if a returnable or expendable solution is the route to explore, the next logical step is to determine the material type. If returnable, common materials include plastic, metal, and wood. If expendable, common materials include wood, hexacomb and corrugated. Wood is the most commonly used material given its performance, cost, and existing supplier base.

Pallet Type

There are a variety of pallet types commonly used such as a stringer, wing, and block-style pallet to name a few. The type of pallet needs to be selected that provides the features required for your specific product size, weight, and supply chain. Selecting the incorrect pallet type can result in wasted money, product/packaging damage.

Pallet Size

There are standard and custom pallet sizes. The standard sizes vary based on location. The standard size in the US is a 48”x40” platform.  With that being said, the 48”x40” platform is not always the correct size depending on variables such as supply chain and size of packaging. Having the incorrect pallet size not only potentially increases the pallet cost but also costs associated with freight and damage.

Interested in learning more if your pallets are optimized for your packaging and supply chain?  Click the below link to learn more about what BoldtSmith Packaging does.

Expendable or Returnable

The first variable to explore when selecting a pallet is whether it should be an expendable or returnable solution. A returnable pallet is most often used in a closed-loop supply chain. For example, an automobile company is receiving headlights from a local manufacturer on a dedicated truck. In this scenario, a returnable pallet is a solution that should be explored.

On the other hand, if a manufacturer is shipping their finished goods from China to the United States on an ocean container and LTL once it arrives domestically, a returnable solution likely will not be applicable.

Pallet Alternatives

To reference the earlier example for a product manufacturer shipping products from China to the US, fitting the most amount of product into the ocean container is critical. The average height of a pallet is 5” and when double-stacked into the ocean container, that is 10” of air being shipped. Popular alternatives to pallets include floor loading and slip-sheets. Both alternative methods require modified unloading techniques when received domestically.  Does it make financial sense to eliminate pallets for overseas shipments?  Potentially, a financial analysis needs to be completed to allow for the data to provide the evidence needed to determine the best method of unitizing the product.

Packaging Considerations

It’s so critical when selecting the pallet type, material, and size to consider the entire packaging system. The referenced packaging system includes the packaging going on the pallet, method of securing product to pallet, storage methods (racking vs stacking), etc. For example, what package is being put on the pallet? If an engine is going on the pallet, plastic banding would be a reasonable material to use to secure the product to the pallet.  If boxed goods are going on the pallet, the stretch film may be a better material used to tie the product to the pallet.

What Does BoldtSmith Packaging do?

BoldtSmith Packaging Consultants is a recognized leader in packaging design, testing, and optimization for retail and e-commerce packaging, shipping crates and displays. We do not manufacture or broker packaging, we sell a service filling in as a temporary packaging engineer for companies requiring specialized packaging expertise. Click the below link to learn more about BoldtSmith Packaging and the services that we offer.

What does BoldtSmith Packaging do?

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

SIX THINGS TO CONSIDER IN PICKING THE BEST THIRD PARTY LOGISTICS OUTFIT

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Logistics is the lifeblood of commerce and e-commerce. For companies that have built their foundations and business models in the process of producing, selling, shipping and delivering goods, it is arguably the most vital cog in the entire machine.

Get logistics right, and a business can thrive. Get it wrong, however, and the effects on any company’s brand reputation and bottom line can be catastrophic.

The challenge for many firms looking to deliver goods to customers is the simple fact that they will lack the resources or know-how and are unable to effectively handle large-scale logistics in-house. To maximize commercial opportunities, products must be deliverable across large geographies, yet this is almost impossible to achieve singlehandedly.

As a result, many will turn to third-party logistics (3PL) providers–supportive organizations specializing in the provision of cost-effective fulfillment and distribution services.

Indeed, logistics is big business. According to estimates, roughly 10% of the United States’ $21 trillion annual GDP can be attributed to the industry.

Given the size of the opportunity, the market continues to become increasingly competitive, resulting in rampant logistics-centric innovation among 3PL providers who today provide a range of highly effective, bespoke services.

For those seeking the help of a 3PL, this innovation is hugely beneficial. Yet not all 3PLs are created equal. Within such a crowded environment, the challenge for many companies is finding the right provider that is capable of unlocking as many otherwise unattainable benefits as possible.

Here are six things to consider when choosing a third-party logistics provider.

Track record

While many services a company utilizes can be somewhat transactional, a 3PL-client relationship must be built on trust. Such providers will become a vitally important part of your business’s success, so it is important that you know they have a proven ability to support your specific needs. 

There are a variety of ways in which you can determine this track record:

-Are they an established player in the market?

-Do they hold accreditations from recognized industry bodies?

-Do they have case studies with example success stories working with companies similar to your own, in your regions of interest?

-What sort of results are they delivering for those clients, and how do these compare with your expectations?

-Take the time to understand a potential providers’ areas of strengths and weaknesses to ensure they are able to deliver upon their promises. 

Expertise

Despite broadly catering to the same demands, the individual offerings of 3PLs will often vary. While one provider might offer a limited number of services but specialize in your specific industry and/or geographies of interest, another might offer an expansive range of services that could help to make your supply chain more scalable, yet only do so on a generalized basis without the ability to meet a stringent set of bespoke needs. Rarely will one company’s model mirror that of another. 

Consider your specific business needs and goals, understand how logistics will best support these, and then you can work to understand what kind of 3PL provider and services you will need. In following these steps, you are more likely to benefit from 3PL services that are relevant to your organization.

Location

The footprint of a 3PL is just as important, if not more so than its services. The best providers will have a well-established network that is able to uphold a seamless logistics operation across multiple locations, either regionally or perhaps globally. 

Indeed, this is a further question: Are you looking to sell your goods locally, regionally, nationally or internationally? One 3PL may have an unrivaled footprint in one state, but not be able to compete with others who specialize in country-wide services. 

Again, consider your own needs and find a 3PL that can meet those requirements.

Compatibility

While cost will often be the primary factor worth considering for any company, it should not be the be-all and end-all. Cheaper doesn’t always mean better value. With 3PLs, it is equally worth considering the company’s cultures and values to understand how they work with your business and cater to your customers. 

-Are they willing to communicate with your company on a regular basis?

-Are they a good cultural fit?

-Do they demonstrate a willing commitment to data sharing that can demonstrate your ROI?

-Do they have a track record of going the extra mile for their customers?

It is worth remembering that your 3PL provider will be an extension of your business, and the quality of their offering will reflect on your own brand. Ensuring you create a truly embedded partnership with a close working relationship is, therefore, vital.

Scalability

With the support of a good 3PL, it is likely that your business will be able to grow more quickly. But does that same 3PL have the flexible and agile characteristics necessary to support that growth?

Scalability is a fourth important element to consider when selecting such a provider. If the answer to the above question is no, then you may find that you will be forced to change 3PL provider in the near future, causing unnecessary administration, stress, costs and disruptions.

Equally, it is not just about whether a 3PL can scale with your business, but what impact this might have.

-What would this mean for your costs?

-Will the services and value for money improve, reduce or stay the same? 

Place your roadmap front and center and ask yourself whether a 3PL would be able to support this. 

Innovation

As has already been mentioned, competition in the logistics space continues to spur an ever-increasing amount of innovation among 3PL providers who are deploying state-of-the-art technologies and cutting-edge services to both cut above the noise and benefit their customers on a daily basis. Some 3PLs will be more committed to innovation and technologies than others, however. 

To identify those that will value innovation and bring plethora of benefits to your business not only now but in the future, consider their current offering.

-Will their software and systems integrate with your own?

-How do they track metrics, data and deliver analytics? Can they provide this information to you easily?

-How usable and up to date are their website, dashboards and alike?

Those that can deliver positive answers to these questions will likely be companies that are committed to continually enhancing the service they bring to their customers and will likely maximize industry innovation to the benefit of your business.

Ultimately, it is important to do your research. Don’t just settle on the cheapest provider. For something as important and integrated as a 3PL, which will become an extension and representation of your own brand and business, it is important to focus on quality in all aspects. 

By considering these six simple factors, you will be well placed to find a more suitable, more relevant 3PL capable of meeting your organization’s needs. 

EU
Archives, EU Trade, Global Trade Daily

Will the EU Supply Chain Issues Encourage Growth in the UK Economy?

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Brexit and the pandemic have been disruptive for supply chains. Between new regulations, tariffs, and isolation and testing policies, importing and exporting products has been difficult. However, where disruption occurs, so too does the opportunity to seize new shares of growing and changing markets.

By discussing how Brexit has affected trade between the EU and the UK, we can explore how the UK economy may experience local economic growth and how businesses should reinforce their operations to succeed in this new era of regulated trade.

Why is Europe so important for British supply chains?

Trading with the EU has played a significant role in British business as the number one partner for trading goods, accounting for 52 percent of imports and 43 percent of exports in 2019.

In 2019, £374 billion worth of goods were imported to the UK from the EU, while £294 billion worth of goods were exported.

These trading ties are significant for sectors including food and drink, chemical, and automotive industries, supplying commodities and equipment for supply chains in the UK.

Measuring trade

However, the Brexit trade agreement has been disruptive, with imports and exports experiencing a sharp slump after the UK officially left the EU. While it has recovered, there are still some teething issues as the UK attempts to restore European trade to its pre-Brexit high. More checks, paperwork, and higher costs are just some of the problems that businesses are facing.

In May 2021, the value of imports from the EU matched levels of January 2016, lower than its peak in 2019. However, the value of exports remains relatively high, exceeding most figures as far back as 2007. The trade deficit is also at its lowest difference since 2012. The impact of Brexit has been sharp, but data shows that while the recovery is turbulent, it is a recovery nonetheless.

Opportunities for UK businesses

The UK is in a trade deficit with the EU, meaning that more goods are imported into the UK than are exported. This is not inherently bad or good. In fact, in some situations, a trade deficit can allow economies to specialize in specific sectors and achieve significant growth.

However, as imports from the EU remain below their 2019 peak, it could present an opportunity for short-term economic growth in the UK. Businesses may have to temporarily rely on domestic supply chains to sustain their current models while wider international trade deals are crafted. As businesses look to their own backyards, could it boost local communities through employment and other investment?

UK businesses that supply transport equipment, chemicals, and non-electrical machinery could find domestic investment from investors struggling to attain imports from our European neighbors, where these commodity groups equate to 17, 15, and 14 percent of import from the EU respectively.

One UK business, FPE Seals, is a manufacturer and distributor of pneumatic seals and hydraulic cylinder parts. Steve Eillis, Managing Director at FPE Seals says that while Brexit has been disruptive, a clear supply channel strategy along with the specialist focus of their products has allowed them to remain competitive across the UK and European markets. NAME said: “It’s key for businesses to focus on their strengths and what makes their products or services unique. Despite the disruption of Brexit, we’ve been able to embrace a growing UK market while maintaining relationships abroad that limit the impact on our supply chains. Ultimately, by recognizing the strengths of our partners and clients, we’ve been able to tailor our processes to a market and supply chain that is constantly changing.”

Preparedness is key. While European opportunities may be reduced, businesses should seek out local opportunities.

Finding strengths to grow your business and the economy

The environment of uncertainty is unsustainable, as the UK and the EU move beyond the pandemic, businesses will be back to analyzing their Brexit strategy. For UK businesses to grow and to benefit the economy, there are several factors that should be considered and operations that can be more efficiently organized. Businesses that are progressing beyond Brexit and the pandemic must:

Create a new sourcing strategy

Investing in local supply chains or encouraging the establishment of international suppliers on your doorstep can help alleviate the uncertainty of European trade. Existing contracts should also be modified to account for risk in both the near and distant future.

Consider demand changes

As trade changes, so will the demand for your products. Those exporting to the EU may recognize that they cannot compete with internal-bloc businesses, but those with popular imported products may find more domestic success. Flexibility is also vital, where volatility may be a common feature of UK and European markets than previously known.

Reinforce their capabilities

Brexit means that UK businesses will have to stress their capabilities and advantages to new competition within the UK, and to their existing EU customers that may be discouraged by new tariffs, regulations, and checks. Whilst in the trade deficit, businesses should concentrate their efforts to reinforce their specialist skills and products that can also be procured through their business and trade. Only then can supply chains encourage economic growth.

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Sources

https://commonslibrary.parliament.uk/research-briefings/cbp-7851/

https://www.statista.com/statistics/284750/united-kingdom-uk-total-eu-trade-in-goods-by-trade-value/

https://ec.europa.eu/eurostat/statistics-explained/index.php?title=United_Kingdom-EU_-_international_trade_in_goods_statistics#EU_and_the_United_Kingdom_in_world_trade_in_goods

chain
3pls, Archives, Global Logistics, Global Trade Daily, Warehousing

Top 5 Ways to Crisis-Proof Your Supply Chain in 2021

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Here’s how manufacturers, distributors, and retailers can shore up their supply chains with an eye on making them more resilient and crisis-proof in 2021 (and beyond). 

If there’s one thing the world’s manufacturers, distributors, and retailers learned in 2020, it’s that there’s no such thing as being too prepared to tackle a supply chain crisis. With companies across many sectors still grappling with COVID-related material shortages and the world’s transportation networks struggling to keep up with the demand, there’s no time like the present to make your own supply chain more resilient, agile, and crisis-proof.

“The COVID pandemic caused significant disruption to 80% of supply chains around the world, with the result that nearly half (47%) of supply chain operations will be overhauled,” Kearney reports. “But as dramatic as these figures are, they still understate the size and scope of supply chain challenges.”

Offsetting Severe Disruptions

It didn’t take long for the global pandemic to throw companies around the world into crisis mode. In March of 2020, more than 80% of companies already believed that their organizations would experience some impact due to COVID-19 disruptions; by late-March, that number had grown to 95%, according to Institute for Supply Management (ISM).

“Severe supply chain disruptions were experienced in multiple regions to varying degrees,” ISM reported a few months later, noting that in early-March, 6% of firms reported “severe disruptions” across their supply chains. By the end of March, severe disruptions were being reported in North America (9% for U.S. supply chains, 6% for supply chains elsewhere in North America), Japan and Korea (by 17% of respondents for each), Europe (by 24% of respondents), and particularly China (by 38% of respondents).

5 Steps to Take now

By June 2020, Accenture was reporting that 94% of Fortune 1000 companies were experiencing supply chain disruptions due to the pandemic. “Disruptions to supply chain caused by COVID-19 were unpredictable and devastating, drawing attention to how critical supply chains are to sustaining business success and daily operations,” Supply & Demand Chain Executive (SDC) reports. “Unfortunately, the pandemic has also underscored how vulnerable supply chains are to sudden adversity.”

To help your supply chain better withstand the shocks of a future crisis, consider implementing some or all of these strategies for bolstering resilience:

1. Fully leverage connectivity and digitization. “Advancing connectivity with supply chain partners and digitizing information to generate a single version of the truth guarantees that enterprises can inform and cooperate with their entire supply chains to respond in unison,” SDC explains. “Organizations that connect their supply chain partners into a multi-enterprise business network can have access to real-time information, rapid access to capital, and enhanced shipment visibility.”

2. Strive for end-to-end visibility. The goal should be to gain insights into every aspect impacting inventory in the supply chain. This includes enterprise-level demand forecasts and purchase orders, cooperation with suppliers to ensure that availability and capacity needs are met and connected or “single-instance” applications of enterprise resource planning systems (ERPs), SDC advises. “This visibility also covers warehouse management across your distribution network, transportation tracking and visibility, in-house and outsourced production and final delivery and settlement.”

3. Improve partner collaboration. The lack of communication between trading partners led to a lot of late orders, missed shipments, and understock situations in 2020. It also forced more companies to examine the role that basic exercises like data sharing across supply chain networks can play in the overall health of those networks. “Effective collaboration with partners is critical to supply chain resiliency,” SDC says, noting that early sharing of forecasts and orders is a best practice, whether volatility exists or not.

4. Diversify your supply sources. Don’t let your single-source approach become a point of failure in a crisis. Instead, consider alternate supply sources and begin weaving them into your overall procurement plan before disaster strikes. One way to do this is by near-shoring the manufacture of certain components, or you might want to adopt a China plus one policy, whereby most of your production takes place in China while some of it happens in another country. These and other diversification strategies help lessen risk and ensure that you don’t have all of your “eggs in one basket” when the next disruption emerges.

5. Build more trust into supply chain processes. There was a time when keeping things “close to the vest” and blocking organizations from obtaining internal data, forecasts, and other information was just a part of doing business. Fast-forward to 2021 and the business landscape basically demands higher levels of trust and transparency across trading partners. This, in turn, helps those partners shield their respective supply chains—and, the ecosystem as a whole—from shocks and disruptions. “Supply chain transparency is one way to enable communication among suppliers,” Symbia Logistics points out. “With open discussions, all parties can tackle issues that impact pricing, quality, and competitiveness. If a supplier is unwilling to share data, a company has to wonder why. What is the supplier trying to hide?”

By implementing some or all of the above points, companies can shore up their domestic and global supply chains and prepare them for the impacts of the next disruption—no matter how big or small that event may be. After all, it doesn’t take a global pandemic to bring a supply chain to its knees and the next interruption could be waiting right around the next corner.

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.

This post originally appeared here. Republished with permission.

market
Archives, Global Trade Daily, Ocean Ports

HONG KONG DRIVES TO CAPTURE THE COLD-CHAIN MARKET

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In Hong Kong, where many U.S. businesses send shipments to and receive goods from, a new drive to maximize cold chain opportunities is being realized and embraced.

By leveraging Hong Kong’s unique location to support fruit businesses tapping into the growing mainland Chinese market, fresh produce worth more than US$3 billion is arriving at Hong Kong Seaport Alliance (HKSPA) terminals annually.

Through the deployment of more than 7,800 reefer points, twice the capacity of other terminals in southern China, HKSPA expedites every container of fruit through its facilities to enable the freshest delivery to market. 

American companies shipping fresh fruit produce to the region should bear Hong Kong’s port facilities in mind, especially given Chinese demand for fruit imports is predicted to grow by 55 percent come 2025.

Further adding to Hong Kong’s appeal, HKSPA claims consignees can collect shipments immediately after discharge and be on their way within 15 minutes. Simple, convenient, and fast customs procedures mean Shenzhen is an hour away, while one of the world’s largest fruit-consuming epicenters, Guangzhou’s Jiangnan Wholesale Fruit and Vegetable Market, is just four hours by road.

kerry logistics
Archives, Global Trade Daily, News

KERRY LOGISTICS OPENS UP MONGOLIA TO U.S. BUSINESSES

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Kerry Logistics is a global logistics services provider with an extensive presence in the USA. In 2019, the firm was ranked the third-largest NVOCC (Non-Vessel-Operating Common Carrier) in terms of Trans-Pacific trade, handling more than 425,000 TEUs.

In December 2020, it announced a new series of multimodal transport solutions to Mongolia, designed to offer an alternate route to a market with untapped potential. 

Specifically, the latest offerings cover road-rail and sea-rail freight for dry and temperature-controlled cargoes between North America, Europe, and landlocked Mongolia via the Freeport of Riga, Latvia. 

William Ma, group managing director of Kerry Logistics Network, commented: “The new services greatly enhance the freight cost-efficiency and variety of solutions to Mongolia for our customers. To access the landlocked Mongolia, our strong rail freight capability in Central and East Asia gives us an invaluable advantage.” 

Kerry Logistics has a firm foothold in the U.S. from which it can help exporters to reach the Mongolian market. For example, it operates more than half a million square feet of warehouses in Southern California, Northern California, and Florida, facilities that employ more than 290 staff members. 

As well as opening opportunities in previously difficult to reach Mongolia, Kerry Logistics provides global coverage with offices in Canada, Mexico, India, the Middle East, South America, Australia, New Zealand, Europe and Asia.

omnichannel
Archives, Global Logistics, Global Trade Daily

The Importance of an Omnichannel Approach for Great Customer Experience

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The omnichannel approach to customer experience has become an essential investment among companies focused on maintaining a strong brand reputation. It means providing a unified experience through all channels and platforms that consumers use to interact with the brands they use. In other words, it’s become more important than ever to communicate the same messages across all channels in which customers choose to engage. Done successfully, an effective omnichannel platform will deliver a resolution-centered, personalized experience to every customer – no matter how they connect with an organization.  

Seventy-three percent of consumers point to customer service as an important factor in their purchasing decisions, making the customer experience the number one driver of brand loyalty.1 While brand loyalty is an important factor in the success of a company, it is shockingly fragile. In fact, one in three consumers say they will walk away from a brand they love after just one bad experience. Most of the 32% of customers willing to abandon a brand after a bad experience are the Gen Z and Millennial generations, who assign lofty significance to how a brand treats and values them.1  

More companies should expand to the omnichannel customer service model. It has shifted from being appreciated to being largely expected by these market-driving generations of consumers. It promotes consistent brand messaging and enables brands to protect their customer relationships across multiple platforms. Right-place, right-time engagement can be the difference between whether a customer chooses your brand or a competitor – and whether they stick with your brand for their next purchase decision.

The Risks of Neglecting Social Media Customer Experience  

The average social media user has roughly 865 followers across all platforms.2 No matter how strong a company’s other means of communication – phone support, chat operations, self-service – a lack of social media engagement exposes your brand to the possibilities of neglecting customer questions and feedback, resulting in a bad reputation when it comes to customer service. All it takes is one consumer posting a bad complaint on their social media platforms for their 865 followers to see. Furthermore, 60% of customers who complain on social media expect an initial brand response within 15 minutes. Brands lacking a social media customer response strategy, or brands with understaffed digital engagement teams, have no way of redeeming social media brand perception to consumers in a time when there is a mass customer pivot to social channel utilization for customer care. 

Neglecting social media can also lead to inconsistent brand experiences that break customer loyalty, lose moment-of-purchase sales opportunities, and alienate buyers in the research and observation stages. By using omnichannel communication, a brand can avoid these mistakes and keep the company’s reputation in the good graces of loyal consumers.  

Social Experience Management Solution Sets 

Having consistent customer service across all channels can be greatly beneficial to a growing company, so it’s important to know how to do it right. Social experience management can be broken down into three solution categories: social care, reputation management and content/community moderation. Utilizing these three categories and correctly implementing omnichannel approaches is the best way a company can provide the customer service and experiences that consumers expect to receive from their favorite brands.  

Social care is the monitoring of all social media channels. The key is knowing when to listen and when to respond. It’s also essential to align all social media channels in messaging and brand voice. To do this well requires response teams ready to reply to all customer questions, complaints, and praise. Having sales conversion and cart value strategies for consumers are shopping through various media outlets is also important, as is detailed engagement and KPI reporting on engagement and brand performance 

A second specialized area of social experience management is reputation management, where companies complete all online reputation assessments and social media campaign activation. Screening for inappropriate or malicious content aimed at your brand can help companies get ahead of an issue before it escalates into a problem. It’s important to brainstorm brand, product, e-commerce, and retail-based strategies that focus on review response, as well as addressing questions at the point of digital sale. These efforts can determine whether a customer decides to buy your product or return to your location.  

Another key component to reputation management relates to incorporating the right social media customer engagement campaigns. A great campaign will align with the efforts of the marketing teams and agencies to maximize campaign reach and amplify the goals of current social promotions and objectives. Social media customer engagement campaigns can be fundamental to showing what values your brand has above and beyond basic digital customer care, which is another reason why it’s so important to incorporate into your brand’s strategy.  

Finally, content and community moderation is another integral part of ensuring the company’s presence is being represented accurately across all platforms and that community forums are being cultivated in a way that promotes brand loyalists and new advocates alike. Moderating uploaded user/brand content (video, text and images), flagged content review as well as promoting community guideline enforcement are of high importance to grow digital communities while still following brand standards. Brands that pull all of these digital skills together to monitor all social channels, brand sites, and third-party sites can see the benefits when measuring customer experience through social engagements can set themselves apart from competitive brands. 

As the omnichannel approach continues to rule customer experience strategies, having the best tools to measure interactions and implement company KPIs is of the utmost importance to ensuring a successful brand experience while boosting consumer loyalty.  

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Roger Huff is Vice President, Digital Engagement Solutions at ResultsCX. His experience in the business process outsourcing industry spans 13 years, with 10 years of experience concentrated on social media customer experience management. Roger leads solution development and sales of social media and digital CX solutions that span social CX, digital reputation management, and content & community moderation services. He has worked extensively with digital, e-commerce, insurance, healthcare, and retail companies to deliver specialized solutions that elevate brand reputations.  

Sources:
1: https://www.pwc.com/us/en/advisory-services/publications/consumer-intelligence-series/pwc-consumer-intelligence-series-customer-experience.pd
2 : https://www.customercaremc.com/insights/national-customer-rage-study/2020-national-customer-rage-study/  

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Archives, Global Logistics, Global Shippers 101, Global Trade Daily

7 Ways to Reduce Supply Chain Lead Times

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No one enjoys waiting forever for their items to arrive. However, this is not simply an issue of annoyance for companies and stores which rely on their inventory to turn a profit. So, how can you beat this problem, reduce the time it takes for your inventory to arrive, and be free to engage your customers without worries? To answer this question, we have compiled a guide. We offer you 7 ways to reduce supply chain lead times for your perusal.

1. Use local suppliers

One of the principal causes of long supply chain lead times is the sheer distance your merchandise needs to travel. So, to combat this issue, one of the simplest ways is to find local suppliers who can provide you with what you need. Now, it is only natural that companies look for the best balance between quality and cost. But you must take into account the cost of transporting your merchandise over long distances. Even cheap maritime shipping has drawbacks, so don’t be afraid to buy slightly more expensive local products.

2. Have backup suppliers available

It is all well and good to trust and rely on suppliers you have worked with for years. However, it is helpful to know who could replace missing shipments if your regular suppliers are facing some issues. Take the chance when you do not need to find a replacement in a hurry to plan ahead and maybe even draft contracts ensuring that you can count on them when you need to. This way, your business will always have something to fall back on. You do not want to face a situation where you cannot follow through with already placed orders and leave your customers waiting for weeks.

3. Always have extra inventory

It might seem like a risk to have more merchandise than you think you will need. Your product might not sell and end up just sitting in some warehouse. However, we must consider the alternative: If you are facing any issue with your chain of supply, you could be looking at considerably increased chain lead times. In such a case, you would actually be losing money. Of course, we are not saying you should stock up on absolutely everything. Taking on an extra amount of unpopular articles is just asking for trouble. Analyze the current trends and check which of your merchandise is currently popular.

4. Communicate with your suppliers

This one is simple. If there are any problems with your suppliers, you want to know immediately. Some suppliers might not take the initiative to inform you if there is an issue on their end. This could lead to sudden increases in supply chain lead times for no apparent reason. To combat this, always make sure to stay in touch with your suppliers. Prompt them to inform you of accidents. Check in advance if they can handle an increase in demand, and always let them know if you anticipate a decrease in the demand for their product. This way, you can encourage friendly cooperation and ensure you are kept informed of any sudden developments.

5. Hire a good logistics manager

No one can do everything by themselves, and good employees are always valuable. That is why you should try your best to find and hire a logistics manager who excels at their job. They can help you smooth out wrinkles such as delivery routes, the best places for your warehouses, and streamline contact with suppliers. They might even be able to help you cut down on unnecessary expenses. These things will directly be reflected in the efficiency of your company’s work as a whole, thereby reducing chain lead times and allowing you to turn a better profit.

6. Anticipate customer demand

You might not feel confident enough to make predictions about future customer demand. This is quite normal. So, you will need to hire a professional to analyze the consumer data you have access to. This way, you can preemptively place certain orders so that, even if you do face unavoidable delays, you can stay ahead and be ready to offer your merchandise on the market. You might hesitate when faced with the additional expenses of hiring a good analyst, but if things work out, you stand to increase your profits considerably. Staying ahead of the market and leading trends is always profitable.

7. Change your shipping methods

If you notice consistent problems with your supply chain lead times, yet can’t find any issues with your suppliers, then you should consider looking into the shipping methods you are currently using. Favoring slower but cheaper methods when starting out is okay. However, once your business expands and there is more interest in your product, you might find such a system flagging. So, consider switching to a more modern solution. This can also help increase the safety of your shipments. Alternatively, you can try to place your orders more frequently in smaller batches instead of delaying them to order in bulk.

Conclusion

This marks the end of our guide on 7 ways to reduce supply chain lead times. We hope you have found it helpful and informative. Just remember: always have alternatives for your suppliers, communicate with them properly, look to the future to anticipate customer demands, and do not hesitate to modernize your shipping methods.

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John Davis has worked for Heart Moving, NYC for the last five years, and has extensive knowledge of moving and transporting goods. He also works as a freelance blogger, and loves sharing his knowledge on the subjects he is familiar with. He always feels inspired by the thought that his advice can help someone else.

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Archives, Commentary, Global Shippers 101, Global Trade Daily

Parcel Packaging Tips: All You Need to Know

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With the COVID-19 outbreak, people are pushed to shop online. It’s great for business owners that their business is still growing. While shipping companies also benefit from this, there are also downfalls.

According to Route’s data, there is a 19.1% increase of items that were damaged during delivery in 2020. No one wants to receive damaged items. When they do, customers either blame the seller or the courier company for it. And sometimes, they blame both.

Parcels can be damaged due to plenty of reasons. While this is true, you should still take an extra step to ensure the safety of the item before it is delivered. That’s why we have here some parcel packaging tips to prevent damaging the items during delivery.

Why is Packaging Important? 

Some customers use a parcel delivery box to protect their packages, especially when no one is at home to receive them. You can easily detect these parcel boxes. Usually, they are installed near the owners’ porches, gateposts, or driveways. 

Additionally, these drop boxes are made from steels that are weatherproof. This feature guarantees that the parcels are safe inside. Items can be placed at the top part of the box. Closing the hatch will trigger the parcel to slide down to the cabinet. For extra safety, the cabinet has a safety lock that can only be accessed through a key.

With these delivery boxes, buyers can receive their parcels safely.

But that is to say that every customer doesn’t have a parcel drop box at their homes. When you’re delivering an item, it’s hard to assume you can safely leave the parcel at their doors. Additionally, items for delivery have a long way to go before they get to the customers. You should make sure that there are no damages to the items when they reach the customer.

That’s why good packaging is important. Customers don’t want to receive damaged or incomplete items. When they do, sometimes the courier company takes the blame for it. Bad reviews mean you lose potential clients to avail of your shipping services. Customer satisfaction is a top priority, especially for shipping companies.

Learning how to package the items properly helps in improving the shipping process of the company. It not only makes your customers happy, but it also allows them to continue availing themselves of your services.

What are the Types of Packaging Materials?

Before we discuss parcel packaging tips, it’s important that you know what types of packaging materials are used. Don’t worry, there are only two of them.

External Packaging

Corrugated packaging material is often used for heavy items such as appliances. On the other hand, lightweight items can be put in flyer bags. These bags can only carry products with 4kg of weight and below.

Internal Packaging

Internal packaging is materials that are used to cushion the items inside the box. They provide additional protection for shock absorption. These materials can include bubble wrap, cardboard, airbags, crumpled paper, styrofoam, and foam pellets.

Parcel Packaging: Tips for Couriers

A courier’s job is not only limited to distributing parcels to their respective buyers. Couriers are also expected to deliver the items undamaged and without delays. Because of this, the packaging of items is an essential part of making deliveries.

In order to prevent damages to the products you will deliver, you should consider these packaging tips. These tips also help you provide high-quality service to your customers.

Consider the Hazards of Delivering the Parcels 

Before you wrap the items, you need to consider first the possible scenarios when the parcel is in transit. These hazards are unavoidable. This means that there’s nothing you can do to stop them from happening. What you can do, though, is to prepare for when they happen to prevent damage to the items.

There are numerous factors that can affect the parcels when they are out for delivery. First and foremost, you have to understand that the road is not always smooth. There will be bumps along the way. Because of this, packages tend to collide. And when this happens, punctures, abrasions, and shocks occur. 

For this matter, you should make sure that the internal packaging of the parcels is enough to cushion the items.

Another risk is exposure to different temperatures. When the weather is too hot, remember to use shrink packaging material to combat the heat. This kind of packaging material can withstand 30 – 77 degrees Fahrenheit. 

What it does is that when heat is applied to items with shrink packaging, the shrink wrap tightens around the item. This also protects the items from dust and moisture, and some even have UV protection features.

Be Aware of the Items You’re Shipping 

It’s important that you are aware of the kind of item you are going to deliver. Some items such as fragile items require extra care to avoid mishandling them. When you’re packing an item for delivery, be sure to keep in mind the size, weight, and value of the product. 

Weight

The weight of the product determines what type of packaging material will be used. You should use a stronger packaging material when you’re wrapping up heavy products. The strength of the box is usually found on the manufacturer’s stamp.

A double or triple-layered corrugated cardboard box can accommodate heavier items. A polyurethane bag, however, can be used to pack lighter products.

Size

77% of customers said in a 2020 survey that the size of boxes relative to the size of the product is important. This is because they wanted to reduce the impact of packaging on the environment. That’s why you should measure the exact size of the item before you put it in their respective box.

Value

You should know if the items you’re shipping are of high value. Usually, these products are identified as fragile. You can check in the special instructions if the client indicated the fragility of the items. Shipping high-value products can be tricky and require extra precaution.

When you’re packing fragile items, you can use two boxes for extra protection. One box would fit the item and another larger box that can fit the first box. Also, don’t forget about the internal packaging to cushion the item. This will prevent the items from shifting inside the box, reducing the risk of damaging the items.

Don’t Forget to Fill Empty Spaces Inside the Parcel

Fillers or internal packaging is an important aspect of parcel packaging. When you don’t have enough filler material in your packaging, your items will shift inside the box. This can cause damage to the items. While this is true, overfilling a box can cause it to burst in the middle of delivery.

Manage the right amount of fillers that you put inside the box. When choosing the size of the box to use for the items, don’t forget about the space for the fillers. You should allocate at least 2 inches (5 – 6 cm) of space for the fillers. The type of fillers you can use include:

-Bubble wrap

-Foams

-Cardboard

-Paper

-Airbags

-Packing peanuts, and

-Styrofoam

Separate the Items

Items should be packaged separately. When you put multiple items inside a single package, chances are they will bump into each other, damaging both items. That’s why separating them into multiple packages is the best way to prevent this.

Make Sure to Seal the Parcel Properly

Different types of items need different kinds of seals. For example, boxes can be sealed with 2-inch (5cm) tape. Whereas polyurethane bags have their own adhesive tape to seal light items such as T-shirts. 

When you’re using a polyurethane bag, make sure that you have sealed it properly. Sometimes, the tape opens up in the middle of delivery. When this happens, any form of liquid can enter the package and damage the items inside.

On another note, you should avoid using straps and strings. These types of seals can cause compressions, which can damage the product inside the box. 

One of the most common sealing methods is the three-strip sealing method or the H taping method. This type of sealing method keeps the flap on the boxes closed during delivery, which prevents goods from accidentally opening. 

It is a fairly easy step that only requires applying enough strips of tape to the center and edge seams of the box. Don’t forget that heavier items require extra tape to keep their seams tight. 

And, that’s it! The box is secure and ready for transit.

Conclusion

The pandemic may have increased online shoppers, but it also opened up new challenges for shipping companies. One of the challenges is to deliver the packages safely and unharmed. Appropriate packaging is an important part of a courier’s job and should not be taken for granted.

Shipping companies should take the extra mile to overcome these problems. Their main goal, still, is to continue being competitive in the shipping industry despite the recent pandemic.