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Like, Follow, Buy Now: Harnessing the Power of Local Payments in Social Commerce

social commerce
Archives, Global Trade Daily, Special Reports

Like, Follow, Buy Now: Harnessing the Power of Local Payments in Social Commerce

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A staggering 3.8 billion people use social media, around half the internet users worldwide. With these figures in mind, social media giants are eager to reach digitally connected consumers and monetize their userbases. Gone are the days where social media was simply a place to see what friends were doing and give them a ‘like.’ With the likes of TikTok, Facebook, and Instagram leading the charge, purchasing products online is now as easy as liking a friend’s post. In fact, with over one in three global shoppers having made a purchase on social media in the past year – social media is rapidly becoming the new online marketplace of choice.

However, whilst a good tool for attracting customers, social commerce must work hand in hand with digital payments to truly unlock success. Converting browsers to buyers on social media will rely heavily on a brand’s ability to offer a range of local payment methods at the checkout.

A growing opportunity for merchants

In the US, by the age of 12, most children have access to a social media account, but that’s not to say that this is the only audience social media is appealing to. Senior citizens in the US are the fastest-growing group of Facebook users, with numbers doubling between 2019 and 2021, indicating a lucrative opportunity for merchants appealing to a broad range of demographics.

In fact, Facebook is certainly leading the pack when it comes to social media – with over 2.7 billion monthly active users worldwide. For European regions such as Italy, the pandemic has also contributed to the explosion of social media usage. Time spent on Facebook’s suite of apps rose 70% in March 2020 – indicating the potential for social commerce uptake as people acclimatize to using these platforms to access shopping, entertainment, and communication.

For China, however, a country where the likes of Facebook, YouTube, and Twitter are blocked to consumers, sites such as Tencent, WeChat, and Weibo have been attracting millions of users, making China one of the biggest social media markets in the world. With multiple demographics across the globe now engaged with social media channels and more than comfortable with shopping online, the opportunity for merchants to trade on these platforms is greater than ever before.

Unlocking the power of social commerce

Because of the extensive reach and the power social media holds, brands embracing social commerce can scale rapidly. Everyone can do it, from international companies to individuals selling their goods on Instagram. But, it’s much more than just adding a ‘Buy Now’ button. Whilst social media platforms certainly have the power to unlock online and cross-border growth, the process will not be successful if merchants do not operate with consumer payment preferences in mind.

To enable a seamless transaction through social media channels, merchants and payment service providers (PSPs) need to take a highly customized and localized approach to digital payments. Consumers have become accustomed to choice when it comes to online payments – from buy now, pay later (BNPL) offerings such as Klarna to increasingly popular bank transfer payments such as Pay by Bank App or Trustly. Because of this, expectations around payment preferences have skyrocketed in recent years. So much so that 44% of UK consumers will abandon a purchase if their favourite payment method isn’t available. To ignore this when selling through social channels would be a huge mistake and a missed opportunity for retailers operating on these platforms.

A global strategy with local payments at its core

Whilst digital payments have the power to unlock the true power of social commerce, integrating a diverse portfolio of payment methods is no easy task. Although merchants are becoming increasingly aware of the need for a social strategy with local payments at its core, the cost and complexities associated with such integrations are acting as a major barrier for businesses. In fact, for smaller e-commerce players especially, local payment options may feel completely out of reach.

To overcome this, merchants and payment service providers are increasingly turning to infrastructure providers to meet the demands of global consumers. Partnerships of this kind mean that merchants and PSPs can take advantage of payments technology and on-the-ground local market knowledge.

Speed to market is everything in today’s digital-first retail era and merchants that are able to get up and running with a diverse acceptance of the right local payment methods quickly will be able to take strides ahead of the competition.

Those that neglect to consider the importance of local payments will see themselves fall short ahead of their competitors and lose access to thousands of potential customers.

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Archives, Global Logistics, Global Trade Daily, Ocean Carriers, Ocean Ports

The Future of Ship Systems to be Smarter with Ship Bridge Simulators

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The maritime industry is not new to the simulation technique and has, in reality, been using this technique in automation as well as numerous other applications. The rising implementation of advanced technologies & automation in the maritime sector has surged the need for ship bridge simulators. The Asia-pacific region has rising passenger traffic and massive import & export businesses; as a result, the region is likely to be in major need of marine systems equipped with ship bridge simulators.

The maritime sector is transiting toward autonomy by enabling assistance in navigation and decision support systems using simulations. At some point in time, if two autonomous vessels crafted by different producers come across each other, how will these vessels communicate? How intricate will the navigation be? Will the ships discuss intricate navigational maneuvers? Will the two autonomous systems be able to communicate in a proper way? Simulation or formulating mathematical models to impersonator trustworthy real-world effects can offer numerous solutions to these questions.

The marine industry is not new to the simulation technique and has, in reality, been using this technique in automation as well as numerous other applications. For example, simulation is used for coaching squads for new vessels before these vessels delivered for crane management and towing in seaports to check loopholes in ship systems and other purposes. For years, simulators are extensively used in training and certification mainly in the Maritime Education and Training (MET). They are used in numerous areas of the marine sector including cargo handling, crane operations, system control, offshore operation training on ships, bridge operations, and towing & anchor handling. Such a wide range of applications of simulators has propelled their demand in recent years. A report by Research Dive reveals that the global ship bridge simulator market growth is expected to skyrocket and the market is anticipated to garner significant revenue in the upcoming years.

Alexander Ozersky, the Deputy Director-Intellectual Systems at Wärtsilä Voyage Solutions, believes that simulation is a technique that permits to do mistakes without triggering any severe outcomes in the real world. A vessel can need nearly ten years to develop or redesign its system. However, by making use of simulation techniques one is able to do it more quickly, more safely, and at a reasonable price. This is why a simulation-based method was used to attest to the functionality of COLREGS (Convention on the International Regulations for Preventing Collisions at Sea) in Wärtsilä Navi-Harbour vessel traffic management system with ClassNK, a global leader in ship classification.

Panorama of the Ship Bridge Simulator Market:

There is a tremendous need for skilled ship operators or watch captains on a vessel for directing navigation, map plotting, weather monitoring, fire management, observation, search, and operation rehearsals. Also, there has been significant development in war systems and technologies; for example, electronic as well as network-centric wars use ship bridge simulators for testing systems. In addition, the rising implementation of advanced technologies & automation in the marine sector has surged the need for ship bridge simulators. Moreover, strict rules issued by maritime lawmakers for proficient coaching of electronic war workforces have propelled the demand for ship bridge simulators in recent years. All these factors portray that the global ship bridge simulator market is accelerating at a rapid pace and is expected to reach significant heights in the coming years.

In the past few years, ship makers have observed that the virtual reality simulation is considerably more proficient than conventional marine simulator training. In virtual simulation devices, a helmet is used that shows a video and is assimilated with sound effects and simulation sensor systems. With these sensors, the virtual simulation helmet can detect activities of the user’s extremities. The incorporation of such advanced technologies is opening doors to lavishing opportunities for market growth.

The Asia-pacific region has rising passenger traffic and massive import & export businesses. As a result, the region is likely to be in major need of marine systems and hence, be a major revenue contributor for the market growth. On the other hand, the North American region is projected to stand at a second position in terms of growth in the ship bridge simulator market. This is majorly owing to the stringent regulations issued by the governments in the region for upholding standard security. The LAMEA region is foreseen to witness continuous growth due to the evolving marine trades in these regions.

The Lookout of the Market during the COVID-19 Pandemic

The COVID-19 pandemic has struck the maritime industry with various unprecedented challenges that hampered its supply chain and compelled quicker implementation of digital technologies in numerous areas of maritime operations, including the area of MET. As the virus was capable to multiply at a rapid pace with person-to-person interaction, several processes that need the physical presence of working personnel have been either postponed or limited for averting human mobility, as a protection measures against the COVID-19 virus. The termination of physical training programs, lockdown, and travel restrictions have triggered several difficulties for seafarers to obtain or uphold their certificates of proficiency. As the MET industry is also experiencing various challenges in ensuring the endurance of the MET activities, and in coping and adapting to the restrictions imposed during the COVID-19 pandemic, the ship bridge simulator market growth is expected to decline to a certain extent until the pandemic relaxes.

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Aishwarya Korgaonkar holds a bachelor’s degree in Information Technology from the esteemed Mumbai University. Being creative and artistic, she leaped into the field of digital marketing and content writing. Her love for words makes her write creative and spellbinding content that adds colors to the world.

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Archives, Commentary, Global Logistics, Global Trade Daily

Tips to Manage Successful Remote Teams in Supply Chain Management

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A recent CNBC/Change Research States of Play poll concluded that the Covid-19 pandemic managed to push 42% of Americans into virtual workplaces. Supply chain analysts have encountered many challenges in terms of analysis of the projected supply chain needs from flexible working spaces.

With the new changes, they will have to identify new suppliers, monitor existing supplier inventories, and use analytical data to predict the timelines for new inventory orders. To run the operations smoothly, supply chain managers should prioritize establishing appropriate protocols in due time to enable their employees to work efficiently from home. For that to happen, the right remote culture becomes essential for a promising employer branding which you can establish using the 7 tips mentioned below.

Tips to Manage Remote Teams:

1. Implement Technology: With teleworking becoming the new normal, most companies have started to leverage the latest technology available to enhance the communication channels with employees along with ensuring higher employee productivity. Some of the necessities for successfully implementing technologies to work include teleconferencing software like Skype, Zoom, etc., remote desktops, VPNs, collaboration tools, and stable internet connections along with reliable cellphones. Additionally, tools like relevant field service management software will help keep a track of your on-field workers and customers to analyze and maintain your inventories adequately. Essentially, rely on an intelligent blend of the technological assistance available at your disposal.

2. Promote Right Infrastructure: Corporate supply chain software, ERPs, and other systems are the most used tools by most supply chain workers. The right infrastructure typically means being able to access the data from these sources easily over the cloud via the internet. Once that is in place, your employees can access them to manage their remote work culture relatively easily. By promoting these infrastructure changes you will gather a small core of IT experts, maintenance staff, and supervisors to resolve any issues including scanning and emailing documents between employees.

3. Place Appropriate Policies: A lack of appropriately drafted work-from-home policies can ruin the investment you make in your technological updates for remote work. Beginning with addressing cybersecurity to keep official data confidential and secure, you should also mention the employer expectations, formal clothing for virtual meetings, physical workspace necessities, telework locations, ideal working hours, the required internet speeds, etc. You can even consider desktop sharing software for the IT department to access employee computers remotely should any problems arise.

4. Equip Your Team: Once the technological requirements are in place, supply chain managers need to provide their teams with essential hardware including laptops or desktops, scanners, printers, etc. along with necessary training. That becomes inevitable because not every employee will have a background in using remote operational software on their computer and some of them would not prefer company programs on personal devices. Did you know that both communication and project management, known as collaborative tasks, need specialized software to run effectively? Supply chain managers should look into employing tools such as Slack, Trello, and Quire to manage these responsibilities.

5. Communicate Effectively: During these uncertain times when your employees are working remotely, you must ensure that they are frequently reminded about their job role and company expectations competently. Clear, easy-to-use, reliable, and well-sought-out communication channels are essential components to maintain worker productivity. Now, supply chain managers will have to efficiently communicate with the team about what is required from them more often than was required during office jobs. Look for newer ways to remain in contact and reach your team apart from the occasional virtual meetings.

6. Administer Trust: I understand that trust may sound like just a touchy-feely word but believe me it has become a more salient factor for productive teamwork. The level of accountability and reliability between teams and managers determines job satisfaction, commitment to work and productivity levels, workload responses, turnover, work quality, and office dynamics that benefit the company. Do not remain short-sighted about it and pick up your phone to call or text the teams to collaborate with them on a real-time basis along with administering video calls for emotional reinforcement and trust-building.

7. Prioritize Security: Lastly, do not overlook the fact that cybersecurity is a fundamental need especially for flexible workspaces. Cybercriminals are constantly on the lookout for different gaps and vulnerabilities within businesses to extract critical corporate information. To avoid any data leaks, you must equip all the employee computers with the latest software and security patches along with reputable anti-virus software. Besides, unsecured Wi-Fi could pose a cybersecurity threat therefore your teams should use secure WiFi along with firewalls and access passwords.

Work-from-home is the new normal and as dependable team leaders, you can assure a seamless transition for your team by using these tips. With the right tools, policies, work practices, and reliable logistics partners you can effortlessly maintain your supply chain output and manage logistics during the pandemic.

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Author Bio: Kelly Barcelos is a progressive digital marketing manager for Jobsoid – Applicant Tracking System. She is responsible for leading the content and social media teams at work. Her expertise and experience in the field of HR enable her to create value-driven content for her readers – both on Jobsoid’s blog and other guest blogs where she publishes content regularly.

Yantian
Archives, Global Logistics, Global Trade Daily, Ocean Ports

Yantian Port Congestion: How Can Shippers Navigate Another Major Supply Chain Disruption?

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While the global logistics industry has not been a stranger to disruption this past year, the congestion at the Port of Yantian in China is starting to impact the market at an exceptionally high level. At the current pace, it’s going to be even more disruptive than the Suez Canal blockage this spring and the ongoing congestion at the Port of Long Beach/LA over the past year. This is due to the magnitude of the trade lanes and exports the port touches. Unlike the Suez Canal incident or other recent port issues, which have impacted a more limited number of regions and trade lanes, the Port of Yantian is a major export hub for multiple large markets like Europe, North America, Latin America and Oceania.

This disruption also came on top of an already brittle logistics system which is currently grappling with several unprecedented challenges, including equipment shortages and decreased schedule reliability, to name a few. Right now, the reliability that the vessel carrying your goods or expected to pick up your goods will show up on time is roughly 5%. At this time last year, it was around 80%+. And, as ocean carriers introduce more blank sailings or skip ports to start improving the reliability percentage, that means the freight that was skipped is now added to the backlog of containers that will flow into the next vessel.

It’s likely we won’t see a large shift in congestion until the demand levels out.  And while this market does not lend itself to a silver-bullet solution, there are things shippers can do to keep their supply chain afloat:

1. Be open to hyper flexibility

While flexibility is important any time global logistics are involved, the phrase ‘now more than ever’ holds true here. Currently, delays at the Port of Yantian are ranging from 10-15 days, which is a large jump from the 2-7 day delays we experienced just few weeks back.

Switching between ports, modes, and trade lanes has been an active strategy to avoid these delays, but shippers can’t rely on only adjusting once or twice since other shippers are also making these shifts as they compete for limited space. A good example of how this plays out is in the case of congestion at the Port of Oakland. Over the last few months, as the delays at the LA port were mounting, carriers started diverting sailings to Oakland. The result? Oakland is now also severely congested and suffering from the same unpredictability.

Fact remains, ocean carriers are deploying the most capacity on the U.S. west coast (USWC) routing, and as complexities in the interior of the U.S. continue to be exacerbated (i.e. lack of chassis and rail congestions), carriers continue to limit options for containers moving inland. Shippers need to continue to be flexible in enabling containers terminating on the USWC and leveraging transloading and trucking inland options.

When considering flexibility across modes, keep in mind air may be the solution for a few shipments, but it’s not a feasible option to shift all your ocean freight to air. Instead, exploring a mix of modes, like LCL + air, may offer a more realistic opportunity for your company in a more cost-competitive way. Having the right partner with a global suite of service and technology offerings coupled with scale and a strong inland network, is going to make the difference for supply chains in the market.

2. Prepare for ultra-prioritization

Prepare to make tough decisions on what freight is most important to move. This can be especially difficult for companies importing seasonal items, like patio furniture or pools since their selling window is limited.

With today’s demand, most shippers would classify all their freight as a top priority but shipping it all at once may not be realistic. It’s important to sit down and have those conversations now so when the opportunity presents itself for portions of your freight to move, like in an LCL shipment, you’re ready to make the call.

3. Don’t dismiss historical data

I’ve been in the business 20 years and never seen anything like this in a global magnitude, impacting almost all core trades. However, a unique situation does not mean historical data no longer lends itself to helping us find solutions.

The market will improve, and things will get better. However, these issues tend to be cyclical as we look at the data. We need to build resiliency around supply chain and continue to have options to navigate. While some of these events are hard to predict and plan, there are things that you can do, such as diversifying distribution center locations, sourcing, etc.

Final Thoughts

Until the high demand subsides, the above points will be crucial moving forward. C.H. Robinson has always been focused on working alongside our customers to help them succeed – and that’s no less true during times of incomparable volatility. It’s important to keep an open line of communication and to be open to creative solutions. As we work through this together, I encourage you to keep tabs on our data-driven market insights page and reach out to your representative.

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Archives, Global Trade Daily, News

Cotton Prices to Rise Due to the Textile Industry’s Demand Booming Over the Supply

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

After stagnating during the pandemic, the textile industry has begun to strongly recover and the demand for cotton has risen. It is expected that consumption in 2021 will grow faster than the supply. This will lead to a reduction in global cotton stocks and higher prices. The issues of sustainability and ethical background become increasingly important in the transformation of cotton supply chains.

Key Trends and Insights

With increased demand from the textile industry, global cotton stocks fell to a three-year low. Although cotton production is projected to increase by 5% in 2021, the demand will outpace supply which will raise prices further. In the medium term, the main driver of growth in the cotton market will be the demand for textiles from the growing global population.

According to a recent report by the World Bank, the average price for raw cotton in the first quarter of 2021 was $1.64 per kg, which is 3% higher than the average price in 2020. In the fourth quarter of 2021, prices are projected to rise to $1.72 per kg.

Despite the positive dynamics, cotton production in 2021 will not return to the record levels of 2019. High cotton yields are projected in the U.S. (+523K tonnes), Brazil (+436K tonnes) and Australia (+239K tonnes), Pakistan (+174K tonnes) due to favorable weather conditions and the increasing harvested area. China, on the other hand, will lower cotton production and give way to India as the main producer with a 24% share of the world total.

The highest growth rates for the industry and demand for cotton are expected in Pakistan, India, Bangladesh, Vietnam, Turkey and China. The first four countries mentioned are becoming center points for the global textile industry due to cheap labor. In China and Turkey, the populations’ rising incomes will make production less competitive. It is assumed that domestic production will not be able to fully meet the demand of the industry in China, and the country will have to increase its imports.

Strong competition from other natural and functionally similar materials such as hemp or flax as well as synthetic textile materials will hold back market growth. Hemp is more convenient to grow than cotton as it consumes 5 times less water, while cotton production is considered “environmentally harmful” because it uses large amounts of insecticides. In some countries, forced labor is supposed to be used on cotton plantations. The environmental issues and labor rights violations lead to increased consumer attention to the ethical side of the cotton market. This forces major apparel companies to shift supply chains toward cotton suppliers with a proven and traceable environmental and ethical background.

The issue of creating a cost-effective recycling technology for cotton to be sustainable is now becoming increasingly important. The production of cotton fibers involves a huge amount of water consumption, and cotton recycling will significantly reduce these volumes and maintain the stability of natural water resources.

Cotton Exports by Country

In 2020, shipments abroad of cotton lint decreased by -9.2% to 8.1M tonnes for the first time since 2016, thus ending a three-year rising trend. In value terms, cotton lint exports shrank sharply to $13.1B (IndexBox estimates) in 2020.

In 2020, the U.S. (3.8M tonnes) was the key exporter of cotton lint, comprising 47% of total exports. It was distantly followed by India (965K tonnes) and Brazil (865K tonnes), together achieving a 23% share of total exports. The following exporters – Benin (292K tonnes), Greece (289K tonnes), Cote d’Ivoire (230K tonnes), Burkina Faso (217K tonnes), Nigeria (212K tonnes), Australia (170K tonnes) and Uzbekistan (137K tonnes) – together made up 19% of total exports.

In value terms, the U.S. ($6B) remains the largest cotton lint supplier worldwide, comprising 46% of global exports. The second position in the ranking was occupied by India ($1.4B), with a 11% share of global exports. It was followed by Brazil, with a 11% share.

In 2020, the average cotton lint export price amounted to $1,616 per tonne, shrinking by -6.9% against the previous year. Average prices varied somewhat amongst the major exporting countries. In 2020, major exporting countries recorded the following prices: in Nigeria ($2,222 per tonne) and Uzbekistan ($1,823 per tonne), while India ($1,501 per tonne) and Greece ($1,558 per tonne) were amongst the lowest.

Cotton Imports by Country

In 2020, after three years of growth, there was significant decline in supplies from abroad of cotton lint, when their volume decreased by -16.8% to 7.1M tonnes. In value terms, cotton lint imports contracted sharply to $12.2B in 2020.

In 2020, China (1.9M tonnes), distantly followed by Viet Nam (945K tonnes), Pakistan (819K tonnes), Bangladesh (726K tonnes), Turkey (655K tonnes) and Indonesia (627K tonnes) represented the largest importers of cotton lint, together generating 79% of total imports. The following importers – Malaysia (247K tonnes), India (174K tonnes) and South Korea (115K tonnes) – together made up 7.5% of total imports.

In value terms, China ($3.6B) constitutes the largest market for imported cotton lint worldwide, comprising 29% of global imports. The second position in the ranking was occupied by Viet Nam ($1.4B), with a 12% share of global imports. It was followed by Pakistan, with a 11% share.

The average cotton lint import price stood at $1,706 per tonne in 2020, shrinking by -5.3% against the previous year. Average prices varied somewhat amongst the major importing countries. In 2020, major importing countries recorded the following prices: in India ($1,979 per tonne) and China ($1,929 per tonne), while Viet Nam ($1,486 per tonne) and Turkey ($1,519 per tonne) were amongst the lowest.

Source: IndexBox AI Platform

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Archives, Global Trade Daily, Special Reports

“It’s What We Have Always Done”

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One of the advantages of BoldtSmith Packaging coming into your facility is having a fresh set of eyes take a look at the current packaging process and designs. Specifically, eyes that have been in thousands of manufacturing facilities for products ranging from pancake mix to motorcycles.

No matter what the product is or what the packaging is, there are six words we commonly hear. “It’s what we have always done”. When we hear this, the majority of the time we are able to uncover substantial cost savings! A few of these potential packaging optimization opportunities are outlined below:

1. Packaging material, freight or labor savings

2. Product damage reduction

3. Packaging consolidation

4. Process changes

Packaging has a way of being “grandfathered” in at a lot of companies. For example, a company develops a packaging solution for a product where the forecasted annual quantities were 50,000 units per year and shipping palletized into Whole Foods. Since that product was introduced 5 years ago, it has now been picked up by Walmart, Amazon and Target. Annual quantities are now over 8 million!

The company has exhausted all potential opportunities to increase margins through optimizing its processes, materials, and waste related to manufacturing the product. However, the packaging that was used at Whole Foods when the annual quantities were 50,000 is in fact the same packaging being used today at 8 million units per year. How could that be? Because, “It’s what we have always done”.

When you read through that, what packaging came to your mind? Corrugated boxes? Clamshells? Bottles? Pallets? That’s great! Packaging means something different to every company. For one company, it might mean gusted pouches going into a master carton that is palletized and stretch wrapped with corner boards and slipsheets between each layer of cartons.

How many different packaging materials and processes were just listed in that example? Were those materials and processes selected based on data and testing with a goal of maximizing profit, reducing damage and increasing customer satisfaction?

Or are they being used because “It’s what we have always done”?

Reach out to BoldtSmith Packaging and we will come into your facilities to identify what opportunities exist. From there, we will design, test and implement optimized packaging concepts!

Check out this case study on how we saved a customer over $6,000,000 in packaging costs!

This post originally appeared here. Republished with permission.

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Archives, Global Logistics, Global Trade Daily

Delayed and Damaged Goods Are On the Rise – Here’s How You Can Prevent Them

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The coronavirus pandemic and multiple national lockdowns have seen online shopping skyrocket. Online sales as a percentage of retail sales rose by over 50% from February 2020 to April 2020, taking them to 30.2% of all UK retail sales. This percentage has increased further in the 2021 lockdown, reaching a new peak of 36.5% of sales.

With this huge rise in online shopping comes increased pressure on both B2B and B2C haulage and logistics providers. Direct-to-consumer shippers had more deliveries to complete than ever before, while business suppliers needed to keep up with higher stock demands.

This has been a mixed bag for the sector. Many businesses in sub-sectors including refrigerated food were able to grow as a result of higher consumer demands. But shocking RHA data from May 2020 showed the disparity between businesses. 73% of hauliers said their cash flow has significantly reduced, while 83% said their volume of work was lower as a result of lockdown. Across the sector, 46% of trucks were inactive and a quarter of drivers were furloughed.

Delivery issues affect customers and hauliers

Delivery problems also reached an all-time high, with 81% of consumers experiencing an issue with parcel deliveries between March and November 2020. Complaints to Citizens Advice about delivery issues trebled, with the charity’s data showing almost a third of consumers experienced a delay with their delivery. Citizens Advice also reported that 18% of people had lost money as a result of damaged or missing goods since the first lockdown, 40% of whom lost over £20.

Delayed, damaged, and missing goods have an impact on everyone involved. A Voxware study has shown 30% of consumers are less likely to shop with a vendor who hasn’t delivered on time. This has doubled from 15% in 2016, evidencing the increasingly high demands of consumers. If you lose a customer’s parcel, this can cost £5,300 per delivery. This dramatically impacts retailers who rely on haulage firms to deliver their goods, but it also spells bad news for hauliers.

B2B logistics providers may find that businesses that can’t maintain adequate stock levels will stop trading with them. Equally, B2C haulage providers are at risk of complaints from consumers, which may result in the business you provide services on behalf of ending their working relationship with you.

Preventing damaged, delayed, and lost goods from ruining your reputation

The consequences of delivering a poor customer delivery service are dire. In some cases, the loss of one key contract can see a haulage business go bust. Here are some top tips for keeping your end customers happy.

Implement tracking software

This is one of the best ways you can increase your customer satisfaction. 87% of consumers say tracking is important or very important to them when ordering an online delivery. This feature has become more widely accessible than ever before, meaning it’s not restricted to enterprise delivery businesses anymore.

Tracking software also gives you full visibility of your fleet, allowing you to identify existing or potential delays. If you can see one of your drivers is heading towards standstill traffic, you can easily divert their route to prevent a delayed delivery. These solutions provide you and your end customer with an estimated time of arrival (ETA) which will automatically update based on your driver’s journey. So, even in the event of a slightly delayed delivery, your customer will be kept in the loop, resulting in fewer calls and complaints to your back office.

Consider haulier-specific insurance

Many of the issues that cause delayed, damaged, or even lost goods are out of your control. In serious situations, your vehicles could break down or your goods could be stolen. Even under these circumstances, consumers are entitled to refunds. It seems unfair that you should pay these costs on top of things like fixing or replacing your vehicle. That’s where haulier-specific insurance can come in. By protecting your business with insurance, you can mitigate the cost of compensating customers.

Combining insurance with electronic proof of delivery software is another way you can protect your business. The sad truth is that hauliers can face false claims of damaged or lost goods. Without a robust proof of delivery solution in place, these claims can be difficult to fight against. Electronic PODs combined with insurance will allow you to refute any false claims and give your business financial protection.

Assess your fleet for any potential issues

There are a number of ways the goods you deliver can get damaged. Sudden movements when your vehicle is in transit can cause damages. Sometimes this is preventable – and telematics tracking can help instill better practices amongst your drivers. But other times, it’s unavoidable. The climate can also impact your deliveries by exposing your goods to damaging heat, moisture, or debris.

Examine your fleet to ensure they’re adequately equipped for the types of goods they’ll be transporting. If you transport refrigerated or frozen items, your truck needs to be in tip-top shape to make sure no sunlight creeps in and spoils the food. Equally, businesses transporting fragile goods should use packaging and pallets that adequately protect the items. Performing tests can also help you foresee any issues with your fleet that you might not identify with an inspection alone, helping keep your HGV load safe.

Online shopping and deliveries have hit an all-time high in the past year. Many surveys have also shown that consumers plan to continue shopping online after the pandemic. This increased demand means it’s more important than ever to deliver an outstanding customer experience, whether you’re delivering B2B or to consumers. Complaints about delivery services have also hit a new peak, and data shows customers won’t return to suppliers whose delivery service is poor. By taking these three easy steps, you can mitigate these risks and reap the rewards of the shift to online shopping.

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References

https://www.citizensadvice.org.uk/cymraeg/amdanom-ni/about-us1/media/press-releases/half-of-british-consumers-have-had-a-parcel-delivery-issue-since-first-march-lockdown/

https://logistics.org.uk/compliance-and-advice/water/long-guides/delays-in-delivery

http://websitemagazine.com/blog/the-impact-of-late-and-inaccurate-deliveries-on-customer-loyalty

https://www.hollingsworthllc.com/how-late-deliveries-impact-customer-retention/#:~:text=So%20how%20do%20late%20deliveries,customers%20in%20the%20first%20place).

https://www.voxware.com/press-releases/voxware-2020-shopping-shipping-survey/

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Air Cargo, Archives, Global Logistics, Global Trade Daily

How the Air Cargo Industry is Taking on COVID-19

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The fallout of the COVID-19 pandemic shook the aviation sector to its core. The economic crisis and travel bans and restrictions have severely hampered international transportation and the global air freight industry. Data from the International Air Transport Association (IATA) shows that global volumes and international cargo are significantly lower than in 2019.

Despite the apparent decline in numbers, the jet cargo industry is showing signs of steady recovery. It is safe to say that, from an economic point of view, airlines with cargo-diversified revenue streams are surviving and have managed to avoid the worst of the pandemic.

Adapt to Survive

The aviation industry is doing its best to adapt and ensure business survival in a changing world. Although world trade and passenger transport hit an all-time low during the main period of the pandemic, both commercial aviation and air charter sectors were able to modify their systems and services to meet the demands of the times and, of course, their clients.

We have seen passenger and private jet companies use their experience and expertise to cater to changing business requirements and emergency scenarios. From personnel repatriation to emergency evacuations — and sometimes even stepping into disrupted freight supply lines to ensure the delivery of essential goods.

Demand Response

Airline companies have shifted their focus throughout the pandemic and dedicated their efforts towards the successful transport of COVID-19 supplies and accommodating the exponential demand for essential COVID-19 commodities.

Cargo jets with climate-controlled facilities have seized business opportunities in freights that require highly regulated and temperature-controlled specifications, including the distribution of billions of COVID vaccines worldwide. In addition, airline companies are retrofitting their passenger planes for cargo to capture more specialized segments, especially those that require time urgency and delicate handlings, such as pharmaceuticals, PPEs, medical equipment, and perishables.

More and more companies are also turning to air charters for reliable transport of complex and time-critical deliveries. Compared to other methods of transport, air charters stand out as the most efficient end-to-end solution as they have access to more airfields and can be deployed in a matter of hours.

Emerging Opportunities

The pandemic has been broadly destructive for the aviation industry. Still, it has contributed to accelerating the global transition to e-commerce, which is set to benefit the cargo transportation industry for the foreseeable future.

While e-commerce was already on an uptrend even before the pandemic, it has risen faster than anticipated due to recent changes in consumer purchasing behaviors. According to data from IBM’s U.S. Retail Index, COVID-19 hastened the shift away from physical stores to digital shopping by, more or less, five years.

With people becoming more inclined to shop online, e-commerce volumes continue to rise amid the pandemic. Shipment-focused aviation services are currently taking advantage of this market shift.

Going Forward

The air cargo sector is demonstrating impressive flexibility and adaptability in handling the challenges and repercussions of COVID-19 in the industry. Still, from a vantage point, the future of global air freight service seems bright, and all set for growth.

The pandemic has opened new doors and opportunities for cargo. As the demand for specialized freight services and e-commerce rises, global trade will eventually regain its foothold. And the cargo industry will fly high again.

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About the Author

Melissa Hull is the Content Marketing Strategist for Aviation Charters, a West Trenton, New Jersey-based private aviation company that provides on-demand aircraft charter, aircraft management, and aircraft acquisition services. Aside from her passion for writing, she loves to travel and read espionage books.

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How Outsourcing Strategies Are Changing Over Time

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Outsourcing is not just about collecting cheap remote talent. Even if it’s truly cost-effective, most successful companies realize that outsourcing brings innovation and is well-suited not only for operational tasks but also for developing core products. To date, 64% of companies outsource software development in a traditional way and many of them are going to embrace disruptive technologies and hone their strategies towards outsourcing.

Brief History of Outsourcing: From the Beginning Till Today

When did outsourcing begin?

The history of outsourcing dates back to 1989. The first company to outsource was Eastman Kodak with their revolutionary decision (for those times) to outsource the IT systems. The company’s leadership were the pioneers to realize they don’t necessarily need to own all the processes and data. Kodak was soon followed by other companies which resulted in business process outsourcing flourish till today.

Two main reasons urging companies to outsource were: cutting costs and freeing up resources to focus on the core functions. The companies tended to engage third-party vendors for certain activities and in such a way focus on core services. Another great reason for outsourcing was just the fact that companies couldn’t afford to hire full-time employees inhouse. No matter what the reason was, over time business leaders realized that outsourcing — if organized well — can be really efficient and may directly improve customer satisfaction.

How outsourcing evolved over time?

Outsourcing in today’s understanding started as a pure business process outsourcing with booming BPO service companies providing accounting and finance, human resources, call center and other functions. The concept of BPO soon broadened and took a variety of forms: end-to-end solutions, staff augmentation and others.

Today, in 2021, outsourcing is the strategic decision to establish long-lasting partnerships with outsourcing suppliers to enhance the service or product and win the competition. And the main reason for outsourcing in 2021 is not cutting costs, but increasing innovation and winning the market.

Fats facts about outsourcing:

64% of all companies outsource their entire development process

66% of medium/large businesses outsource software development

37% of businesses with up to 50 employees outsource software development

43% of U.S. companies are outsourcing jobs from the IT industry

78% of businesses feel positive about their outsourcing relationships

Outsourcing Strategies – Which One is Popular in 2021

Outsourcing as a business strategy has been embraced by the majority of businesses globally. In the USA only, over 300,000 of jobs are outsourced annually.

The latest offshore data reveals that IT is the most widely outsourced sector, with application and software maintenance (54%) and data centers (40%) being the leading outsourced functions.

For 46% outsourcing provides access to a skilled workforce that is not available on the local market. The US and European companies choose IT outsourcing in Ukraine due to the country’s vast tech talent pool of highly skilled tech professionals.

Severe skill-shortage affected 54% of companies. 82% of workers expect digital transformation to transform their work in the next three years, but only 3% of executives plan to invest more in skills development programs. That said, building offshore strategic partnerships remains the most effective outsourcing strategy for businesses in 2021.

Disruptive outsourcing is the future

Technology adoption is expected to accelerate in the coming years. In addition to big data, cloud computing and e-commerce, new technologies are emerging, such as robotics, encryption and artificial intelligence. Therefore, the outlook for the future of outsourcing is also changing. Company leaders show interest not only in employee productivity, but in the automation of at least some parts of their operations as well. And this is where disruptive outsourcing will take the lead.

Disruptive outsourcing, bringing technological advancements to the industry, is a step forward in the outsourcing world competing with its traditional forms. Robotic process automation and cloud computing will gradually replace the human workforce and those outsourcing destinations that will grasp this trend first, will win in the long run.

93% of companies surveyed by Deloitte report that they have already started or are considering the usage of cloud computing. The companies also expect their outsourcing providers to embrace the same attitude towards disruptive technologies and implement them in the near future. Disruptive outsourcing solutions are expected in all functional areas: IT, HR, Accounting, etc. as they allow much more flexibility and scalability in comparison to conventional outsourcing strategies.

IT Outsourcing Success Stories

Google, WhatsApp, Alibaba, Skype, BaseCamp, AppSumo are the companies that have outsourced successfully to name a few.

All of them are a harmonious blend of in-house and remote workers. Depending on the company’s size, needs, budget and priorities, they find their own balance between outsourced and in-house work.

For example, WhatsApp is a world’s known successful outsourcing case study that couldn’t afford growing their inhouse team of 35 people. They decided to outsource software development to Russia. Remote Russian developers helped the company to scale and save the costs and in a while, as WhatsApp entered the global market, Russian developers were relocated to the USA.

Slack, an online collaboration tool, is another successful IT outsourcing case study. Founded by four smart guys, the company trusted their product’s beta testing to an outsourced team. As a result, after getting profound feedback on copy and design, Slack managed to win over competitors and become a $2.8 billion worth company.

Skype also chose outsourcing. While being at a rise, Skype had their apps’ back-end fully developed by outsourced Estonian developers. Who could imagine that the future worldwide tool for businesses would rely on these Estonian guys?

The key takeaway from these outsourcing success stories is that outsourcing gives access to world-wide highly skilled experts who can help businesses scale fast, keep costs down and develop high-end products and services.

Wrap-up

Outsourcing has become an integral part of the US and European businesses and a valuable asset in a value chain, no matter if this is a whole development center or a few bright experts in the augmented team.

And while traditional outsourcing has a proven track record of success globally, the advantages of disruptive outsourcing will be gradually adopted within the next five years, provided that outsourcing vendors will meet the security requirements of working with cloud computing, robotics and other disruptive technologies.

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Igor Tkach is a General Manager at Daxx, a software development and technology consulting service company, part of Grid Dynamics Group. Igor’s areas of expertise span leading tech businesses, building remote teams, scaling business processes, client success, management consulting, business analysis, Agile project management and product management.

Daxx is the Netherlands-based company with 20 years on the market. We help businesses solve the problem of local talent shortage. Build a cross-functional team with custom hired software engineers and benefit from our value-added services.

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Nium Announces Launch of Global Digitized Payment Solution for Maritime Companies

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Nium recently announced the launch of its maritime payment solution, focusing on digitized payment options for shipping companies, management, seafarers, and their families. According to information released by the leading global payments platform, the payment solution – known as the Nium Pay app, utilizes the company’s global license network to successfully integrate the technology stack for real-time payroll disbursements, vendor payments, eWallet services, and remittances.

Bernhard Schulte Shipmanagement (BSM), integrated maritime service leader, is the first to use Nium’s maritime payment solution for their Spend Management Process. The solution includes the launch of BSM branded multi-currency Visa debit cards and eWallet services for their seafarer population. This also includes a supplementary Visa card available for the seafarer’s families.

“Technology development in the shipping industry is accelerating as shipping companies and their seafarers seek modern ways of moving money,” said Gitesh Athavale, Head of Sales, South East Asia and Hong Kong. “Our maritime payments solution provides an efficient and cost-saving way for shipping company management to digitalize payments, including disbursing payroll and making vendor payments. Their seafarers benefit from a convenient and modern way to send and receive money simply or spend it on board – all through the convenience of one simple app.”

The Nium Pay app allows shipping companies to disburse salary payouts directly to seafarers’ virtual visa card accounts. Crew members can directly access their wages from anywhere in the world while at sea or inland, send money overseas, process card to card transfers, shop online, and use their Nium Virtual Cards with mobile wallets onboard through the Nium Payment Application.

“It is important to us that our crew and their families are well taken care of, especially during these uncertain times when our crews are not allowed to go ashore and cannot physically remit funds back home,” shared BSM Finance Manager, Dennis Moehlmann. “Now with this new digital payment solution from Nium, no matter which part of the world our crews are at in that moment, funds can be transferred in an instant and their families will receive the transferred money immediately on their supplementary card or their home account. This is the peace of mind we want to give to our crew.”

Through this application, Nium approaches traditional payment issues for maritime companies by combining its “Pay In” and “Pay Out” capabilities. This enables shipping companies to:

-Reduce or even eliminate the use of cash on ships through QR payments

-Launch branded e-wallets with Card Payments, Remittance, Multi Currency functionality and Travel Insurance services

-Apply exclusive rates for inter and intra company cross-border payments (fund transfers can be done regardless of Internet connectivity)

-Comply with payroll and delivery and international banking regulations, including Philippines’ Overseas Employment Administration (POEA) ruling regarding seafarer payments

-Easily track remittance payments

-Send payments in real-time

Additionally, Pay-Outs are currently being offered to more than 100 countries, of which, 65+ in real-time, available to bank accounts, Visa/UnionPay cards, and AliPay wallets.