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AI is Transforming the Manufacturing Industry: Pros and Cons

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Archives, Global Logistics, Global Trade Daily

AI is Transforming the Manufacturing Industry: Pros and Cons

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The expansion of the global economy continuously triggers the use of new technologies across sectors. There’s no doubt that the manufacturing industry headlines the application of artificial intelligence technology. From product design, production, supply chain, and logistics, manufacturers are using AI software.

The use of these AI analytics and data has helped improve product quality and efficiency. It has also improved the safety of employees and delivery processes.

However, the AI-powered industrial revolution is not without criticisms. Thus in this post, we’ll consider the pros and cons of AI in transforming the manufacturing industry.

Pros of AI transformation of the Manufacturing Industry 

Generally, AI’s beneficial to the various aspects of manufacturing and product distribution. Here are the positives of artificial intelligence:

Predictive Analytics for Increased Production Output

AI manufacturing systems make use of predictive analytics and machine learning algorithms. Since the manufacturing sectors have a large volume of data, the AI predictive analytics is powered from this data. Data are kept in the cloud for analysis and monitoring of any process or equipment disruption.

With this predictive setup, companies can now easily apply a predict-and-fix maintenance model. The guesswork regarding what is wrong with the equipment or process is eliminated. Rather than stop the whole production to detect-and-fix the problem, AI predictions pinpoint anomalies more quickly. It likewise suggests tools and solutions to correct the problem.

Furthermore, manufacturers can also sync production schedules to enhance production output. A report from Mickensey says that an AI predictive maintenance model can increase productivity by 20%. And it can decrease maintenance costs by as much as 10%

Better Generative-Design Process

Another AI advantage is that manufacturers can create better ways of designing their products. With generative-designs, the designer can input product details. Such details include the type of material, appropriate production methods, budget, and time. The designer is also able to input all possible constraints. Using an AI algorithm, the details can be processed to meet a list of possible product options.

The appropriate solution is then tested to suit manufacturing conditions. What makes the generative-design stand out is it eliminating human bias design options. And then it proposes more suitable performance demands.

Improved Process Quality 

Artificial intelligence technology enables a more innovative production process and better product quality. It ensures that products meet the required quality standards and regulations. Manufacturers can achieve this by using equipment that operates with AI technologies like ML and big data.

For instance, tracking sensors could be used in logistics and haulage. It will help to monitor location, take stock, freight charges, and more. According to reports, automation of inventory improves process services by 16%. At the same time, inventory turnovers are likewise increased by 25%.

Such inventory data is used to check for any impending faults that may affect the product delivery service. Thus the company can attain a higher level of specialization. It also eliminates process downtime and increases productivity.

Ever-changing Market Adaptability 

Besides production, there are other significant aspects of manufacturing where AI is pivotal. These include distribution and supply chains, monitoring, customer behavior, and change patterns. Therefore, AI in manufacturing ensures that companies can predict possible market changes. With this, they can go ahead to strategize towards better production and other cost management processes.

Additionally, manufacturers can use AI algorithms to estimate market demands. Such estimates are possible because AI uses the information gathered from different sources. Such as consumer behavior, inventory of raw materials, and other manufacturing processes.

Optimizing Supply Change

When AI technology is adopted in the supply chain process, there’s transparency and increased data. It’s used to enhance manufacturing processes and customer service further. Data from multiple devices are collected and analyzed in real-time to get a more in-depth insight like a possible challenge. Manufacturers are then able to make informed industry-related decisions. AI helps minimize cost and time that may be incurred on warehousing and shipping in the event of any mishap.

AI tools and solutions also help schedule factory activities, demand and supply gaps, and avoid over or under production. Mckinsey estimates that AI technology-based supply chain management enables businesses to cut down forecasting errors by 20-50%.

 

 

 

Furthermore, AI chatbots enable taking care of client inquiries using human-type interactions. In turn, it helps to free up human resources. Such technology allows manufacturers to address clients’ requests and enquires quickly. For instance, a custom writing review service like Online Writers Rating may need to go through thousands of papers daily. And, at the same time, they’ll have to address customer inquiries. But with chatbots, AI provides the necessary customer support, while employees focus on the papers.

Cons of AI in the Manufacturing Industry

As earlier stated, AI in manufacturing is not without criticisms. These are contained in the following artificial intelligence cons:

It’s on the Pricey Side

Artificial intelligence implementation and maintenance costs are on the high side. The budget is one that is often too pricey for small companies and start-ups. Although AI cuts manufacturing labor costs, it still requires installation and maintenance fees. You also don’t want any cyberattacks on your systems, so you’ll also need to consider the cost of cyber threat protection.

Scarcity of Experts and Skills Persons 

Because AI tech is a continually evolving field, thus AI experts with the requisite skills are usually few. Since these tools need regular sophisticated programming, it’s essential to consider expert availability. And also, because they are in high demand, the cost of employing such hands will be on the high side.

Open to Vulnerabilities

Another artificial intelligence con is its vulnerability to cyber-attacks. A recent World Economic Forum report shows that cyber-attacks are among the top five global stability risks. Such information can be pretty scary for any manufacturer using AI software. As AI becomes powerful and wide-spread, cybercriminals are working hard to device new hacking methods. One minor breach can disrupt or fully shutdown a manufacturing business.

Conclusion

AI goes a long way in sustaining your manufacturing business, even amid constant change. It provides predictive analysis that can help manufacturers make more informed decisions. From the product design down to customer management, there’re several positives of artificial intelligence. These include an improvement in process quality, optimized supply chain, adaptability, etc.

However, AI technology isn’t without its cons. Such as expensive budgets and vulnerability to cyber-attacks. Yet the pros of AI outweigh these cons. Therefore, the manufacturing industry can only improve by leveraging AI applications.

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Frank Hamilton has been working as an editor at essay review service Best Writers Online. He is a professional writing expert in such topics as blogging, digital marketing and self-education. He also loves traveling and speaks Spanish, French, German and English.

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Archives, Global Logistics, Global Trade Daily, Stories

Riding the Wave of Demand: All it took was a Global Pandemic to Sort Out the E-Commerce Winners from the Losers

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Undeniably, businesses all around the world today find themselves grappling with the profound changes we are experiencing as the world comes to terms with the impact of this pandemic.

All across the world, businesses—from the local deli to major conglomerates—are transforming their offline and online operations as they seek to protect their customer relations. With consumers confined to their homes, we are experiencing an enormous e-commerce surge, which is set to have an unforeseen impact on consumer behavior.

It is a phenomena experienced by existing e-commerce platforms like Ding.com and newcomers focused on in-store sales alike: Overnight, we’ve all been forced to pivot, regardless of our platform, size or clout. As lockdowns continue in many parts of the world, and people continue to practice caution in regions where they have been lifted, online sales have increased exponentially, especially in the food and grocery space.

While many e-commerce retailers adapted their existing digital strategies to maintain presence and reach, others lacked the infrastructure, confidence, and social media savvy to stay as close as possible to their customers during the pandemic.

Making the Connection

Has COVID-19 merely accelerated rapidly changing consumer trends toward e-commerce? Perhaps, although such is the force of human nature, there will always be room for offline exchanges. Critically, as we seek to enter recovery, how do we keep customers engaged long after the fear from the pandemic subsides?

Our own experience is instructive of the challenges many businesses are facing. At Ding.com, the first thing we did after the outbreak was declared, was to remove all fees for our customers globally for an initial period—a significant investment, both financially and operationally. It meant that we could help people stay connected to their loved ones during those early, fearful days.

Making those connections took a monumental effort, as we needed to action this decision across every one of our operators, countries, teams, languages, and technologies. It also served another vital purpose. The lockdowns compelled Ding.com to transition to working fully remotely–we closed all our offices at the same time–so we learned how to communicate and work together well remotely, making quick decisions together despite being physically apart.

The Art of Pivoting Under Pressure

The lockdowns implemented by various governments led to an instantaneous spike in demand for our products as specific countries went into lockdown we saw a direct correlation in terms of demand for mobile top-up–first Italy, then Spain, then France, then the UK, and across the Middle East. We had to make big investment decisions on going into markets that might not have been traditional markets for us–pivoting under pressure is quite an art.

The move into online retail can seem daunting, especially if it is forced by unforeseen factors such as this major public health emergency rather than as part of a carefully planned long-term strategy. Trust is key to earn and retain consumer loyalty, so too is visibility. Many retailers fear they lack the technical knowhow. But we know that the heart of any retail experience is knowing your customer and knowing what they want.

It pays to invest the time and energy now into making the transition to digital a long-term success. In my view there are three key principles to live by when you are considering adapting your business to an online model:

 1. Be Easy to Find

Be everywhere where your customer is–make it really easy for them to find you.

2. Be Easy to Buy

Speed and ease are key to building trust and winning business. Guide your customers on every part of the journey. From browsing to payments, be where they need you.

3. Be the Reason They Stay

Make it the most wonderful experience for them once they’re here. Listen to their needs, continue to evolve to serve those needs, reward their loyalty and commitment to you.

The principles can seem overwhelming, especially if you are an SME or a start-up or a business whose main model is offline. So it’s best to start small and scale-up.

When you’re getting your business set up online, the opportunity to sell to a global audience is an enthralling one. But slow down. A McKinsey A report on rapidly setting up an e-commerce function suggests success is possible in a relatively short timescale, pragmatism is wise in the beginning. This might mean limiting delivery to a certain region or offering a more limited range of products at the outset. This gives companies the chance to identify and address pain points and bottlenecks before scaling up to full capacity.

It’s vital, as you move online, to make the most of what analytics can tell you about your customer. Online shoppers give retailers a wealth of information about themselves when they make a purchase. Google or Facebook demographic information will tell you where they live, their ages, and gender, while the website and e-commerce tool itself will tell you how often a customer shops on your website, what category of products is most important to them, and how much they spend. In the marketing world, this is known as a customer persona.

This information is crucial, as it can be used to retarget them with similar products in the future. It will also allow merchandising managers to understand which products appeal most to your target demographic, and which are of little interest and should be discontinued. You can also boost sales by combining social media platforms with email marketing. It pays off handsomely: according to Oberlo, every $1 invested in email marketing results in $42 of sales.

Go Big, or Go Home

In many respects, we have no choice but to adapt, if recent actions by major players such as Amazon and Facebook to increase their market share are anything to go by. On May 19, Facebook announced that it will launch a full shopfront on both its Facebook and Instagram platforms.

With more than 3 billion monthly active users between them, the opportunity for consumers to make direct sales within those apps will be a gamechanger for the social network. It also represents an unmissable opportunity for new streams of revenue for retailers, whether they’re a mom-and-pop store or a major enterprise when their consumers can shop in real-time.

If you take your time and get it right, the rewards of online are unending and will help you achieve the best of both worlds. Despite, or perhaps because of this unprecedented business interruption, there has never been a better time to ride the wave of demand for online.

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Denise Dunne is chief growth officer at Ding.com, the No. 1 international mobile top-up platform. Having joined the Dublin, Ireland-based company in November 2019, she is now responsible for Ding.com’s consumer business. She arrived at the 14-year-old concern with 15 years of experience from a number of international companies, including MindSauce, Neom and Paddy Power. Developing and executing robust customer growth strategies and delivering transformational revenue growth is what Denise has spent her career doing.

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3pls, Archives, Global Logistics, Global Trade Daily

How to Prepare Your Online Store for the Holiday Season During COVID-19

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We’re already getting super hyped for the holiday season. From delicate snowfalls to generous gift-giving to spending time with family and loved ones, it really is the most wonderful time of the year.

But if you work in retail, the holiday season can mean something VERY different. Many boutique owners find themselves busier than ever during the holidays. Most years, the holiday season means long lines at malls, loads of crowds, and tons of in-person sales. But this year’s going to be totally different.

Online stores have steadily grown in popularity over the years – but COVID-19 made the shift to e-commerce accelerate at its fastest ever rate. This holiday season will be totally dominated & led by e-commerce stores. Many believe the 2020 holiday season will be the single biggest e-commerce event in HISTORY.

If you own an online boutique, that’s great news for you! It means you’ll have the chance to capture all kinds of new and existing customers looking to buy gifts for their loved ones (and take advantage of the great deals for themselves, too). But it also means you’ve got to brace yourself. Things are about to get WAY busier.

Whether you’ve already made it through many a holiday season as a boutique owner before or this will be your first one, read on to learn how to prepare your online store for the holiday season during COVID-19.

Make it easy for your customers to buy online

Make sure you’re totally prepared to accept online orders – and that your website makes the online buying experience as soon as possible. Go through your online store as though you were a customer and make sure the entire buying process is crystal clear. Take a moment to work out any kinks you find so you can provide a seamless buyer journey. If this is your first time selling online, make sure payment solutions are totally ready by running a few test purchases.

Once you’ve done that, update your website for the holiday season. Update your inventory so in-stock items are clearly marked. Promote seasonal offers and holiday deals throughout your website. Clearly display your boutique’s shipping and return policies, especially if you’ve modified them for the holidays. The easier it is for your customers to make a purchase (and take advantage of awesome holiday deals), the more likely they’ll be to do so!

Plan & stock your inventory in advance

And by “in advance,” we mean ASAP! It’s always a good idea to start stocking up on holiday inventory early, but this year it’s more important than ever. Many shipments have been delayed due to the pandemic, so the sooner you can order your inventory, the better.

Make sure you choose to work with a reliable supplier. While the increase in high demand affects retailers like you, it also affects manufacturers, distributors, and wholesalers in a big way. Order early and choose a supplier with great customer service. Supplied is a great option for online boutique owners looking for a wide variety of wholesale boutique items, flexible payment terms, and free shipping (yes, even during the holidays!)

Schedule out promotions

Many customers pretty much expect great holiday promotions from the brands and boutiques they love. Start planning out what sorts of promotions you’ll run and when you’ll run them. Stagger promos and marketing efforts carefully so you have a flow of ongoing sales instead of a few huge peaks. It’ll make it easier for you to fulfill orders and provide great service.

With COVID-19, it’ll be difficult to predict exactly how long shipping times will take. To make it easier for you to ship items out well in time for the holidays, incentivize early buying with sales. Experts predict that Amazon’s October Prime Week will cause many buyers to purchase holiday gifts earlier than ever before. Consider offering a sale during it in an effort to pick up some of that traffic.

You’ll also want to make sure you take advantage of Black Friday. Many of the largest retailers have already announced that their stores will be closed for Thanksgiving weekend, meaning there will be far fewer in-person Black Friday doorbuster deals. Try and capture some of that excitement online by offering a great deal for Thanksgiving weekend.
Expect delays

During the 2020 holiday season, getting packages to arrive on your customers’ doorsteps on time will be tricky. Encourage people to buy early. Be transparent about shipping delays you’re aware of and do your best to manage your customers’ expectations. As tempting as it may be, don’t promise a delivery date you can’t guarantee.

Once the guaranteed holiday shipping deadline passes, offer virtual gift cards that can be instantly delivered and used towards any item in your shop. This provides a way for last-minute shoppers to still support your shop.

Prepare for fulfillment & delivery

A lot of online boutique owners are out there running a one-woman show – but during the holiday season, you might want some help. If you usually do shipping and fulfillment operations all by yourself, consider enlisting a friend or an employee to help with the busy season.

If you have a brick-and-mortar location or a lot of local customers, offer in-person pickup to allow customers to save on shipping costs – and to allow you to package and mail fewer orders!

To sum up – to prepare your online store for the holiday season during COVID-19, you’d best get started now. Start ordering wholesale boutique items now so you have plenty of time to prepare for any delays, update your inventory, schedule out promotions, and allow your customers to order their gifts as early as possible.

Supplied members enjoy up to 75% off of wholesale prices on over 100,000 wholesale boutique items. And with free shipping, flexible payment terms, and no minimum orders, it’s perfect for stocking up quickly in preparation for the holiday season. Become a member (it’s free!) and place your first order today.

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Joseph Heller is a small business expert and CEO of SuppliedShop.com. Supplied makes it easier for small boutique owners around the world to access high-quality, affordable wholesale boutique items, whether to stock their physical store or IG shop.

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Archives, Global Logistics, Global Trade Daily, Ocean Carriers

DON’T LOOK SOLELY AT THE LARGEST SHIPS IN GLOBAL SUPPLY CHAINS

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When it comes to ocean transportation, some might automatically think of massive container vessels carrying loads upon loads of cargo with ease. Vessels such as the OOCL Hong Kong, COSCO Shipping Taurus or Madrid Maersk are on the list of the largest shipping vessels across the globe. Although these and other large-scale shipping vessels significantly contribute to the movement of goods in the supply chain, there are quite a few smaller vessels and ships that are just as important and continue contributing to the transportation of goods and fulfilling other purposes for those on the water.

Our goal is to give these smaller vessels credit where it is rightfully due, all while examining their position in the ocean transportation industry and where they are headed.

REEFER SHIPS (AND CONTAINERS)

Known for being smaller in size and scale, the reefer ship serves a special purpose in transporting goods, specifically perishable goods including food and other items requiring specific cooling capabilities. The major differentiator among these ships is their unique design exclusively for transporting cold items. These ships are typically equipped with specific access points and pallets capable of holding reefer containers (usually twenty-foot TEUs). Port Technology has appropriately referred to these reefer containers as “large fridges carried by containerships.”

Among the types of cargo commonly found on one of these reefer ships, bananas are considered the most important over fruits, meats, and even blood and other expensive types of cargoes, according to Port Technology. Other items include pharmaceuticals, flowers and other perishable food varieties. Without the capabilities of these reefer ships to ensure proper temperatures are maintained during transport, many parts of the supply chain would suffer.

The reefer ship does have its competition, however. The previously mentioned “large fridges” are becoming savvier and offering more in terms of temperature variations during transport. Port Technology reports that in 2018, only eight total reefer transport specialist companies existed out of the original 20+ back in 2000. These upgraded reefer containers are cited as the main culprit of this.

BARGE VESSELS

Known for its unique “raft” appearance and functions, the barge vessel stands out by offering much more than what meets the eye. This special type of transport method requires some powering from another source, meaning it does not have its own engine to keep it moving. Although there are some self-powered barges in the modern market, the classic barge in known for relying on a tugboat to move from point A to point B successfully. The barge maintains its position for inland transportation through its environmentally friendly benefits such as reduced fuel usage while transporting more in fewer miles compared to trucks.

According to a report from the American Maritime Partnership, more than 750 million tons of cargo are moved by the famous tug-and-barge combination every year, in addition the $30 billion economic impact in America. The barge industry is not exempt from disruptions, however. Last year proved to be a difficult time for the industry due to extreme flooding and trade tensions, directly impacting the agricultural sector. The Waterways Journal reported that 19.8 million acres went without planting in 2019 due to flooding.

“While some freight rates have appreciated, we still face downward pressure in agricultural and coal markets that need significant improvements in demand before the barge industry can realize a true recovery from what we have seen in the last three to four years,” commented Mark Knoy, president and CEO of American Commercial Barge Line (ACBL) in the report.

TUGS

Think of tugs (or tugboats) as a “part two” of the barge vessel. The tug holds its own in the maritime world, however, and is not solely confined to pulling the barge in its lifetime on the water. Whether it is an ocean, sea, rescue or harbor tug, these much smaller helpers on the water work alongside non-powered vessels or other watercraft, including some sizeable ships that needs assistance when in trouble.

These small-but-mighty supporters have a decent range of displacement anywhere from 300 to 1,000 tons, depending on which type (ocean, rescue, harbor). Large tugs are of great importance to global navies. One of the largest of these types of tugs is the Russian Navy’s Vsevolod Bobrov, which boasts a 9,700-ton displacement and the ability to break ice when needed.

CHEMICAL TANKERS

Think of these tankers as the hazmat vessels of the maritime shipping world. Ranging from S1, S2 and S3 rankings of ships, the chemical tankers on the ocean vary in degrees of safety measures based on the types of chemicals onboard and their requirements outlined by the International Bulk Chemical Code (IBC). These tankers vary in size but are typically anywhere from 5,000 dwt all the way up to 50,000 dwt, although the larger tankers are not as frequently seen. These ships come equipped with individual deep well pumps, pipelines and other systems to ensure minimum risk of exposure and potential contamination.

Chemical tankers are a different breed of ships as they come with an increased set of risks from the liquids they transport. Among common risks, cargo compatibility, cargo spillage, toxicity and flammability all pose potential problems for those onboard and the environment. Compliance simply cannot be subpar in efforts when it comes to transporting chemicals and leading chemical carriers such as Odfjell Tankers, Fairfield Chemical Carriers, and B+H Shipping continue to make waves in the transport of chemicals and other related liquids across the globe.

These are just a few of the various types of watercraft supporting the global supply chain. Without these ships guiding the way, many of the things needed to keep domestic and global economies afloat would not be as easily accessible, transportable, or available. As containerships and other mega-vessels continue to challenge the ocean shipping landscape, it is important to consider the ways these smaller ocean vessels and ships can transform to better meet market demands while supporting sustainable operations. At this point in time, these smaller players in ocean shipping are here to stay.

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

Shipping Strategies for High-Value Cargo

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Shipping cargo of any kind requires taking certain precautions to ensure the shipment arrives at its destination safely. Things get more complicated when high-value cargo is involved. Shipping cargo that includes unique pieces of art, fine jewelry, electronics, luxury apparel, pharmaceuticals, alcohol, and high-end food is riddled with even more risk. Any company can use a variety of shipping strategies for high-value cargo. The main aim, however, is always to completely eliminate the risk of damaging, losing, or anyone stealing the items. The strategies have to account for an optimal delivery route and provide security at each stage of shipping – transshipment, transport, and storage.

How does cargo theft happen?

Most logistics companies worth their salt are able to ensure their shipments of high-value cargo do not get lost or damaged by taking all of the necessary precautions. However, one risk that is getting increasingly harder to eliminate is that of theft. If the company’s capacity is tight, this might force them to work with carriers they don’t have longstanding relationships with. This can open up the door for sophisticated theft. People who do this know a lot about the luxury goods supply chain. They are able to obtain the right credentials, or at least look like they did.

If they don’t opt for fraud, they will opt for hijacking. Different territories around the world report different criminal patterns. Shipping companies have to toe the line of providing the best and most effective security strategies for the shipping of high-value cargo without their surcharges skyrocketing. Through careful planning, identifying problem areas, and mitigating risks, a company can develop successful shipping strategies for high-value cargo.

Speed

One of the simplest ways of eliminating the risk of theft when it comes to high-value cargo is to expedite the entire shipping process. The more quickly it happens, the fewer opportunities there are for something to go wrong. Picking the right timing can both help with the speediness of the delivery as well as further lowering the risks. For example, it is advisable to avoid the shipping of luxury items during weekends and holidays. The company should also plan the route meticulously. In turn, it should require the drivers to check in with the dispatcher at regular intervals as well as report any detours.

Expedited shipping requires a lot of careful planning and ensuring the security of the entire supply chain. Properly preparing the shipments for transit, monitoring the security measures, and ensuring visibility of the shipment throughout the process are all important strategies to ensure the safety of high-value cargo.

Building trust

Unfortunate incidents are more likely to happen when dealing with new partners companies don’t have sufficient experience with. Creating lasting business relationships means staying informed and involved in every part of the shipping process. It is one way to ensure your high-value cargo arrives at its destination safely at the allotted time. Building the trust between a company and its partners requires a lot of work on the ground. This includes regular visits to the facilities, educating the personnel about security threats and how to spot them, and learning about the language, infrastructure, and common practices of new countries they do business in.

Security measures

Shipping strategies for high-value cargo usually involve several different security measures. Some of the common combinations are using box trailers or anti-slash curtains, dedicated trucks, carefully selecting and training carriers, and having fixed parking instructions. It is also important to ensure that the shipment is monitored at all points of transport. Visibility means following a shipment from the pick up to its final destination. Some of the tools used for this include barcoding, RFID tags, and GPS trackers.

Another one of the great strategies for preventing theft is hiding the fact that the shipment is anything worth stealing. Checking the regulations and working within their confines can help you make the documentation as generic as possible. As much as they can, shippers try to use generic terms or code instead of listing specific information about the shipper and consignee. This is particularly important to apply to the description of the high-value cargo.

Furthermore, it might even be a good idea to limit access to sensitive information within the shipping company itself. It is also important to require a sign-off of count and condition whenever the shipment changes hands.

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Neal Samson is a freelance writer with extensive working experience in the logistics industry. He mostly writes articles for companies like Tik Tok Moving and Storage and covers a variety of different topics related to logistics, shipping, and moving.

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3pls, Archives, Global Logistics, Global Trade Daily

UPS, FEDEX, AMAZON, TARGET, WALMART AND BEST BUY ARE KILLING IT IN E-COMMERCE. HERE’S HOW.

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COVID-19 has sped up e-commerce adoption across all industries as many businesses emerge from the global pandemic battered and bruised. At the end of 2019, e-commerce represented 11.3 percent of total U.S. retail sales. This percentage inched up to 11.8 percent at the end of the first quarter of this year. For the second-quarter, some estimates suggest this percentage could double, at minimum, as businesses closed, and consumers stayed home because of COVID-19.

Indeed, while increased online sales is not a new phenomenon, the speed with which new generations of customers have gone online is and has led to a change in demand that is unlikely to reverse quickly according to McKinsey & Company’s latest COVID-19 Briefing Materials: Global Health and Crisis Response (June 1, 2020). McKinsey estimates that 20-60 percent more U.S. consumers are digital as a result of COVID-19. Stickiness of digital, localization, and selectiveness in spending are major trends that businesses will need to address as the pandemic alters the way business is conducted.

McKinsey also found that consumers are shopping online more and are more willing to switch across brands. This can be seen in one the biggest “winners:” groceries. According to Adobe’s Digital Economy Index, online groceries grew 110 percent in daily sales between March and April. However, there were delays in last-mile deliveries as companies including Amazon, Walmart and Instacart had to hire more workers to assist with the increased consumer demand.

In March, Amazon had to restrict non-essential shipments from third-party sellers and other retail vendors and focus on receipt, restocking and delivery of essential products that were most in demand. Meanwhile, Walmart touted not only its online store capabilities but also curbside pickup. The result was a strong first-quarter earnings for the period ending April 30 with comparable-store sales up 10 percent and e-commerce sales up 74 percent. Strongest sales were in food, consumables, health, and wellness.

Retailer Target also noted strong first-quarter sales. While comparable-store sales increased only 0.9 percent in its first-quarter ending April 30, e-commerce sales jumped 141 percent with 80 percent of e-commerce orders fulfilled in Target’s stores. Food and beverages rose over 20 percent, essential and beauty 10 percent, and home rose in the single digits.

As more workers work from home, electronics and furniture sales also increased. Best Buy noted in the eight days ending March 20, sales jumped 25 percent as customers purchased work-from-home-related items. As stores closed, online sales increased more than 250 percent, with half of those orders using curbside service available at most Best Buy stores.

For small parcel carriers including FedEx and UPS, the e-commerce volumes proved to be a boon. Both carriers have been preparing for rising e-commerce volumes by introducing such service offerings as seven-day deliveries, faster delivery times, later pick-up times, returns solutions, fulfillment solutions designed for e-retailers, alternative delivery pick-up and drop off locations and more. By all accounts, FedEx and UPS appeared prepared to handle the sudden e-commerce volume increases.

Just as the COVID-19 impact was being felt in the U.S., UPS noted in its first-quarter earnings that March volumes were 70 percent business-to-consumer (B2C) with April trending similar. FedEx also noted a similar trend with higher than usual B2C volumes.

The result was a sharp increase in residential volumes for both carriers and delays occurred. It should be noted that residential deliveries are typically more costly for FedEx and UPS versus business-to-business moves in which batches of parcels can be picked up and delivered at once.

A number of consumers took to social media to voice their frustrations and share photos of overflowing packages at carriers’ facilities. However, not only were carriers faced with higher than normal volumes, but they were also dealing with the coronavirus itself, affecting an unknown number of FedEx and UPS employees who would otherwise be sorting packages, loading and unloading delivery vehicles and delivering packages. Networks slowed as a result.

Having temporarily suspended all service guarantees and implemented international peak surcharges in March to handle a surge in international volumes, FedEx and UPS introduced new temporary peak surcharges to address the U.S. domestic situation.

UPS’s latest surcharges took effect on May 31 and addressed Residential, SurePost, and Large Parcels. Meanwhile, FedEx’s domestic temporary peak surcharges took effect on June 8 and addressed Residential for FedEx Ground and FedEx Express parcels, SmartPost, and Oversize Parcels for FedEx Ground and FedEx Express parcels. Keep in mind, these temporary peak surcharges are in addition to already existing surcharges and individual shipper’s contracted rates.

Besides surcharges, FedEx also capped some shippers’ volumes. This is a similar approach to what the carrier does during the holiday season if a shipper exceeds agreed-upon volume commitments. However, this is not the traditional holiday season and many shippers were caught off guard by this tactic. UPS also took a page out of their holiday season playbook and dispersed managers and supervisors across the U.S. to pitch in and help at sorting facilities and deliver parcels.

The rapid increase in e-commerce parcels seemed to catch FedEx and UPS off-guard and significantly impact their lower margin service, Residential. Moving beyond the COVID-19 crisis, e-commerce will play a bigger role in B2C as well as B2B. Businesses will utilize a number of creative ways to handle the last mile – curbside pickup, buy online, pickup in-store, residential, third party locations for pickup and delivery, and more. FedEx and UPS will need to work closely with customers to share capacity availability and concerns.

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John Haber is the founder and CEO of Spend Management Experts. With more than 25 years of supply-chain experience, John has helped some of the world’s leading brands drive greater efficiencies through their supply-chain operations while reducing transportation, distribution and fulfillment costs. He began his career at UPS, where he held various executive level positions in corporate finance and corporate strategy and was instrumental in developing profitability and costing models. He also managed the carrier’s National Accounts Profitability Group where he audited the pricing and profitability of UPS’ top customers. John’s finance background combined with decades of experience working with high-volume shippers enables him to offer unique insights on strategic supply chain planning, including distribution model optimization, transportation cost analysis and carrier contract optimization and compliance.

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Archives, Global Logistics, Global Trade Daily

New Supply Chain Optimization and Transition to DSN

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Supply chains are typically linear, with a straight progression of:

1. Plan

2.  Design

3. Source

4. Deliver

In traditional supply chains, each step depends on the one preceding it, and inefficiencies in one phase can cause a domino effect of similar inefficiencies in the next stages.

Stakeholders also have zero visibility of other processes, which restricts their capacity to react or manipulate their activities.

But today that’s changing. As supply chains are transitioning from a straight sequence into interconnected, dynamic systems capable of evolving into an optimal state with time and can easily incorporate ecosystem partners.

This transition from sequential, linear supply chain operations to a dynamic, interconnected open system will lay the foundation for how businesses will compete in the future.

We term this open interconnected system, a digital supply network (DNS). And brands who cannot optimize their supply chain for the transition to a DNS may lose out in efficiency to those that do.

How does a Digital Supply Network (DNS) Function?

DSNs integrate data from various locations and sources to push the physical task of production and distribution.

Many companies already on the way to creating DSNs are changing their focus from optimizing and managing discrete functions, like manufacturing and procurement.

Rather, they often use digital supply networks to focus more on how the entire supply chain can easily achieve brand objectives while informing portfolio strategies, corporate and business units.

So DSNs allow supply chains to steadily become an integral part of decision making and strategic planning.

Organizations can now create and leverage many DSNs to complement various aspects of their strategy and efficiently target particular needs.

Transitioning from a Traditional Supply Chain to DSN – the Impacts

The purpose of any successful supply chain majors in the movement of finished goods, capitals, materials, and other assets from location to location.

At its core, though, a supply chain comprises numerous transactions: the exchange of money, time, information, or physical goods for any other unit of value.

However, dramatic digital and technological developments such as enhanced computing power and decreased overall costs have affected the traditional supply chain in various ways, such as an increase in production innovation and a decrease in transaction costs.

Reduction in Transaction Costs

The boost in power and technology efficiency has revealed itself in the drastic reduction of transaction costs for company operations both externally and internally.

It doesn’t have to be prohibitively time-intensive or expensive to acquire insight into each segment of operations anymore, or to understand supplier or customer demand patterns in-depth.

Whilst the linear flow of design, creation, and movement of physical goods stays unchanged, all underlying data now moves around and through supply chain nodes, dynamically and in real-time.

These new interconnections between processes and subprocesses transform supply chains into predictive and efficient networks.

When transaction costs fall, the capacity to transact with other partners rises. This allows transitioning to networked supply chains as businesses can connect with different partners when necessary to deliver increased value.

Production Innovation

Production in the physical world is changing because of dramatic improvements in the way matter is manipulated and the computing power that facilitates such processes with the goal of production.

Enhanced capital equipment will lead to less of it being needed to begin production. And with less capital, the minimum efficient scale drops, and production is allowed to locate nearer to demand.

How to Shift from a Traditional Supply Chain to a Digital Supply Chain

Once you’ve decided to transition your supply chain from linear to DSN, you must consider how to configure your supply networks to execute your plan.

To configure and achieve a DSN driven approach you can execute many supply chain transformations.

Here’s a pictorial explanation of 9 strategic transformations brands can make via leveraging DSN and a list of tactics to achieve each transformation.

Take EasyJet, for example, that offers virtual walkthroughs via smart glasses to enable two-way communication between its central engineering team and remote technicians.

With this, technicians can perform complex maintenance jobs and eliminate downtimes. The real-time walk-throughs enable the supply networks to move without hindrance and ensures a smooth transition from linear to digital networks.

Implementing a DSN – the Optimization

For business executives accustomed to traditional linear communications and data, the transition to real-time access to intelligence and data changes the way they do business.

Once your organization chooses to adopt a DSN, consider how to create, connect, and utilize the various industry-driven innovations that power it.

Before you create a DSN, it’ll be helpful to take the pathway of information creation, analysis, and implementation as a loop.

Integrating digital information from various sources and locations drives the physical actions of manufacturing and distribution in a continuous cycle.

Real-time access to intelligence and data is largely driven by the cyclical and continuous flow of data and actions between the real and digital world.

The flow happens via 3 iterative steps called the physical-to-digital-to-physical loop:

Physical-to-digital: This step involves capturing information from the physical world to develop a digital record from the data.

Digital-to-digital: The digital to digital phase involves sharing information to uncover meaningful insights via advanced analytics, artificial intelligence, and scenario analysis.

Digital-to-Physical: This deals with the application of algorithms to translate digital-world strategies to valuable data able to initiate action and change physically.

Conclusion

Traditional supply networks are phasing out due to their limitations and the hitches they cause in the supply chain.

And because of this, many businesses are opting for a new supply chain optimization by transitioning to digital supply networks.

However, the transition is tough and may ruin a supply chain if not done properly.

But by following the tips and ideas in this piece, transitioning and optimizing these new supply networks should be a lot easier.  

If you have any additional ideas or questions regarding the optimization of the new supply chain, please leave a comment below.

_________________________________________________________________

Will Schneider is the founder of InsightQuote, a match-making service for B2B services, and writes informative posts about fulfillment services at Warehousing And Fulfillment. He is passionate about helping businesses find the right solutions to improve their operations. When not working, Will enjoys coaching youth basketball.

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Archives, Global Logistics, Global Trade Daily

Six Key Technologies for High-Performing Logistics

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The fields of logistics, manufacturing, transportation, and supply chains are experiencing a rapid and unprecedented transformation today. The future development of these industries lies in innovation and technology improvement. Recently, 3D printing, the Internet of Things, drone delivery, and other modernizations that have become almost a reality, previously, have been the subject of science fiction. So, let us consider the most prominent implementations to high-performing logistics.

3D printing

“The concept of 3D printing itself has existed since the 1980s. However, only now this technology has become available on a relatively large-scale market. This revolutionary advancement allows almost any company to create devices or their parts from metals, plastics, mixed materials, and even from human fabrics without special expenses” – according to Noah Miller, CEO of PhotoRetouchingServices.NET who plan to provide a new 3D printing service in 2021.

How can this affect logistics and supply chain management?

1. 3D printing significantly expands the production process

2. Increases independence from specialized industries and enterprises

3. Reduces delivery times, eliminating the need to store a large number of finished products in warehouses

The use of 3D printing will lead to drastic changes in the logistics field. Companies will supply raw materials instead of many finished products. Therefore, they will be able to provide 3D printing services at delivery points, which will be an additional source of income.

Smart systems and the Internet of Things

By the end of 2020, the number of connected devices is expected to surpass 50 billion. A world of coupled things is a treasure trove of opportunities for all sectors of the economy, including the trucking industry. Smart devices, connected in one information space, can store important data. For example, technical requirements, customer names, and shipping addresses.

Smart pallets and long-distance containers will make it much easier to track or locate goods in transit. Such systems will not only make it easier for warehouse employees to find, distribute, and dispatch orders, but also help manufacturers to perform maintenance and processing of goods at the end of the expiry date with higher efficiency. Over time, most logistics processes can become semi-automatic.

Tracking shipments in transit with network-connected devices will remove shipping worries. Moreover, in this way, it will be possible to check if the vehicles are in need of repair and receive information about the mishandling of some goods.

At the moment, tracking goods and services on the road is one of the major problems of logistic services. The use of the Internet of Things, along with the use of cloud GPS-systems, will allow you to track individual consignments easily. 50% of logistics service providers are already using cloud services, while 20% are planning to do so.

As data moves to the cloud, logistics services become available through pay-on-demand. This means that small businesses no longer have to spend money on complex IT solutions. They only pay for what they need.

In its turn, the Internet of Things is based on the use of radio frequency identification (RFID) chips, which communicate with each other. Chips attached to the individual elements of the consignment transmit data such as:

-product identification

-location

-temperature

-pressure and humidity

Once there is a notification of any negative action, it will be a trigger to promptly prevent any possible damage or theft. The chip can signal the onset of adverse weather conditions, such as high temperature or humidity. It can also transmit road condition data and info related to  specific parameters, such as average speed and traffic patterns, or return information.

Supply and transportation chain management is a relevant issue for logistics managers and directors. Therefore, logistics companies will benefit greatly from using this technology. Also, they will be able to get an increased number of satisfied customers.

Drone delivery

A drone is an unmanned aerial vehicle. It can be either controlled remotely or fly autonomously, using programmed flight routes arranged in its system. Drones are small, light, and quite cheap to operate. They manage to fly where other means of transport fail to perform.

In the near future, operators will use drones to promptly deliver small packages in both cities and remote areas. Due to their high speed and accuracy, it is possible to reduce the supply chain and significantly decrease transportation expenses. As a result, courier companies may incur financial losses. There are certain obstacles that hinder the widespread use of this technology: the issue of government regulation, air traffic safety, the permitted size and weight of the drone.

e-AWB

The Electronic Air Waybill, e-AWB, is the first step towards digitalizing the industry. It is a standardized electronic version of the existing paper air waybill that accompanies cargo from shipper to delivery. E-AWB improves the efficiency of tracking and processing cargo data, as well as the transparency and safety of the route.

In addition, it reduces expenses and delays. The International Air Transport Association, IATA, announced the transition to e-AWB in early 2019. Major airlines such as Lufthansa and Emirates, have already implemented the electronic air waybill. Delta Airlines and United Airlines are likely to follow suit soon. Thus, by the end of 2020, 80% of air waybills will be electronic.

Blockchain

Since its advent in 2008, blockchain has never fallen off the radar in any industry. Unfortunately, the complex concept is difficult for many logisticians to understand. Despite its great potential, it has hardly evolved.

In addition, many logisticians are tired of the very frequent use of this term. As you know, blockchain is an open ledger of transactions distributed among computers on the network. Since everyone in the common blockchain has access to the same ledger of transactions, there is complete transparency that makes it impossible for users to hack the system. Thus, it eliminates the need for third parties.

In the logistics industry, blockchain can make it easier to exchange sensitive data for different carriers or shippers. Also, companies are able to create trade finance and supply chain finance solutions.

Digital twins

Digital twins, electronic copies of a physical object or process, are one of the most exciting trends in logistics technology to follow in 2020. Many logisticians know that products will never be the same as their computer models. However, the technology of digital twins changes it. Now, the physical and digital worlds can be combined into one, which allows us to interact with an e-model of an object or its part in the same way as with their physical counterparts.

The potential for using digital twins in logistics is enormous. In the transportation sector, this novelty can be used to collect products and packaging data. In this way, it uses the information to identify potential blind spots and recurring trends to improve future operations.

Web technologies, programs and transport management systems do not stop evolving. Currently, the logistics industry is experiencing yet another revolution. The latest technologies are mostly related to speed, accuracy, security, and continuous delivery.

________________________________________________________________

Marie Barnes is Marketing Communication Manager at Adsy guest post service and a writer for gearyoda. She is an enthusiastic blogger interested in writing about technology, social media, work, travel, lifestyle, and current affairs.

E-commerce
Archives, Global Logistics, Global Trade Daily, Special Reports

E-commerce Will Continue to Grow in Importance Post-COVID

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As we enter the second half of 2020, the global COVID pandemic seems to be slowing down in some places and taking wing in others. Through all the waves, however, one thing is becoming certain: we still have quite a while to go until things go back to “normal.”

For businesses, this brings a host of challenges. Although there’s a necessity to flatten the curve, economies cannot halt for the next year or so until scientists (or nature) come up with a solution. Ultimately, this means that some form of adaptation is necessary.

E-commerce growth in 2020

One of the most significant changes that we saw in consumer shopping habits in 2020 was the rapid growth in popularity of e-commerce. Just a few months back, online shopping was considered unreliable by most individuals over 65. Almost overnight, however, it has become an essential practice. And some numbers testify to the growth of e-commerce.

For example, for Q1 2020, Amazon reported a 29% increase in North American and an 18% increase in worldwide sales. What is even more interesting is that grocery sales have grown a full 8%, compared to the slower growth of 1% during previous years.

On the whole, this is a clear indicator that e-commerce is gaining importance in today’s society. And not just in categories such as tech, apparel, or entertainment. It’s also becoming more relevant when it comes to purchasing health or other essential products. 

With this increased exposure, it’s also likely to expand further during the coming months and years. After all, it’s widely available, convenient, and no longer a foreign concept to most.

For business owners, this prospect of accelerated growth sends a clear message. If they haven’t already, now is the time to make e-commerce an integral part of their business operations.

Changing work models

Adapting to changes can be difficult. And many have already made leaps to keep their operations going during the pandemic. From working remotely to introducing online shopping, these changes have made it possible for small businesses to carry on during these trying times.

But the truth is, small businesses need to put much more effort into their e-commerce webshops to allow them to work with the same efficiency as physical businesses.

For Americans, spending habits have changed drastically since the beginning of the year. The retail industry has taken a big hit, as have companies working in travel, hospitality, entertainment, and even health.

Moreover, there is a tendency towards turning to local shops for a variety of products. Of course, this is a lifeline to small companies who have taken the biggest hit since March. But, it can also be bad news for those whose business models were developed to serve a more global market.

This is why businesses need to start acting now.

Following trends

Over the next period, e-commerce businesses will need to be much more vigilant about how they approach the future. 

First and foremost, they will need to employ risk-mitigating strategies, which will allow them to continue reaching customers. These include diversifying supply chains, implementing DTC models, relying on automation, as well as re-thinking the entire business process.

Furthermore, they’ll need to pay special attention to meeting customers’ needs. Basic conversion-boosting practices such as search engine optimization, decreasing page load times, improving copy and visuals, will all influence user experience, and thus sales and rankings.

One way to future-proof e-commerce businesses is to take a hands-on approach to mobile optimization. Right now, mobile shopping is witnessing growth, and this trend is only likely to continue. If they want to keep up, businesses should adjust early on by adopting mobile optimization tools that are popular among their users.

Moreover, with fewer opportunities to make sales face to face, web design should receive a higher amount of attention. Do you deal with products for which tactile or sensory information is crucial when it comes to sales? Consider whether the visual content on your pages could bridge the gap between online and in-person shopping experiences.

You can look for inspiration from companies that are managing to do this with success. For example, Zoma is an online mattress retailer. Their product collection pages were designed to clearly illustrate the differences between various types of mattresses. This allows users to find the product that will meet their needs with much less hassle.

source: zomasleep.com

Putting customers first

Providing more in-depth information about your products and keeping your website visitors’ needs in mind is a big step in the right direction. However, it’s not going to be enough.

In e-commerce, sales rely on impeccable user experience, so you need to come up with ways to provide it to your customers. Things like free shipping, 24/7 customer service, or high-quality instructional content all play a part in driving conversions.

For this reason, it’s not a bad idea to call attention to the changes you’re making to your service. Are your locations open? Are you taking orders? Are you taking any extra precautions to protect your buyers? It may be wise to use a popup or banner on your website’s homepage to communicate to customers about how COVID might be affecting your business. A good example of this is the banner shown at the top of supplement machine manufacturer LFA Capsule Fillers website.

source: lfpacapsulefillers.com

As the current situation unfolds, you may even want to create a separate section on your website, addressing your response to COVID. That’s what retailer Massimo Dutti did. On their dedicated COVID-19 page, they call attention to an extended returns period to 30 days, as well as free standard home delivery.

source: massimodutti.com

For business owners, these changes are quite small. Though they require an investment in terms of time, they do provide a high level of value to customers. Ultimately what they’re doing is establishing a greater sense of trust, which is critical for any business, but especially for those just now expanding into e-commerce. In the end, trust translates into customer loyalty (and higher conversion rates). 

Navigating uncertain terrain

With the global situation being unpredictable at the moment, consumer behavior is more volatile than ever. What this means for businesses is that they need to be ready to make quick adjustments. And the only way to do this is to pay closer attention to everything that is or isn’t working.

One thing’s certain: e-commerce will continue to grow at a rapid rate, especially in the coming months. For this reason, do your best to follow current trends. Future-proof your business, mitigate risks, and find ways to improve your service. This way, you’ll be decreasing the chance of being run over by the times, and allowing your business to reach new heights.

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Archives, Global Trade Daily, News

Global Direct Dye Market Decreased by -3.6% to $1.9B in 2019

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

After two years of growth, the global direct dye market decreased by -3.6% to $1.9B in 2019. Overall, consumption, however, continues to indicate a relatively flat trend pattern in the past decade. The pace of growth appeared the most rapid in 2014 when the market value increased by 13% year-to-year. As a result, consumption reached a peak level of $2.2B. From 2015 to 2019, the growth of the global market failed to regain momentum.

Consumption by Country

China ($460M), the U.S. ($333M) and India ($144M) were the countries with the largest market size in 2019, with a combined 48% share of the global market. Japan, Brazil, Indonesia, Pakistan, Mexico, France, Canada, Germany, and the UK lagged somewhat behind, together accounting for a further 27%.

The countries with the highest levels of direct dye per capita consumption in 2019 were the U.S. (265 kg per 1000 persons), Canada (253 kg per 1000 persons), and the UK (235 kg per 1000 persons).

From 2009 to 2019, the most notable rate of growth in terms of direct dye per capita consumption, amongst the key consuming countries, was attained by China, while direct dye per capita consumption for the other global leaders experienced more modest paces of growth.

Global Trade of Direct Dyes 2009-2019

In 2019, global trade of direct dyes and preparations based thereon increased by 1% to 110K tonnes, rising for the fourth year in a row after two years of decline. The total export volume increased at an average annual rate of +4.5% from 2009 to 2019. The growth pace was the most rapid in 2010 with an increase of 32% against the previous year. Over the period under review, global exports attained the peak figure in 2019 and are likely to see gradual growth in the immediate term.

In value terms, direct dye exports fell modestly to $398M (IndexBox estimates) in 2019.

Exports by Country

In 2019, India (38K tonnes) represented the largest exporter of direct dyes and preparations based thereon, achieving 34% of total exports. Spain (18K tonnes) ranks second in terms of the total exports with a 16% share, followed by China (9.7%) and Germany (6.9%). Taiwan, Chinese (4.8K tonnes), the U.S. (4.7K tonnes), the UK (4.2K tonnes), France (4.1K tonnes), Mexico (3.1K tonnes), Turkey (2.7K tonnes), Poland (2.5K tonnes) and Italy (1.9K tonnes) took a little share of total exports.

From 2009 to 2019, the average annual rates of growth with regard to direct dye exports from India stood at +14.5%. At the same time, Turkey (+27.1%), Poland (+12.8%), Spain (+9.4%), France (+8.8%), the U.S. (+4.6%), the UK (+4.5%), Mexico (+3.6%) and Italy (+2.8%) displayed positive paces of growth. Moreover, Turkey emerged as the fastest-growing exporter exported in the world, with a CAGR of +27.1% from 2009-2019. China and Taiwan experienced a relatively flat trend pattern. By contrast, Germany (-4.2%) illustrated a downward trend over the same period. India (+25 p.p.), Spain (+9.5 p.p.), Turkey (+2.2 p.p.), France (+2.1 p.p.), Poland (+1.6 p.p.) and the U.S. (+1.5 p.p.) significantly strengthened its position in terms of the global exports, while Germany saw its share reduced by -3.6% from 2009 to 2019, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, India ($110M) remains the largest direct dye supplier worldwide, comprising 28% of global exports. The second position in the ranking was occupied by China ($44M), with an 11% share of global exports. It was followed by Spain, with a 10% share.

In India, direct dye exports expanded at an average annual rate of +13.2% over the period from 2009-2019. In other countries, the average annual rates were as follows: China (+3.2% per year) and Spain (+7.3% per year).

Export Prices by Country

In 2019, the average direct dye export price amounted to $3,610 per tonne, dropping by -4.5% against the previous year. Over the period under review, the export price recorded a slight contraction. The pace of growth was the most pronounced in 2014 when the average export price increased by 13% y-o-y. As a result, the export price reached a peak level of $4,684 per tonne. From 2015 to 2019, the growth in terms of the average export prices remained at a somewhat lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2019, the country with the highest price was the UK ($6,110 per tonne), while France ($1,724 per tonne) was amongst the lowest.

From 2009 to 2019, the most notable rate of growth in terms of prices was attained by China, while the other global leaders experienced more modest paces of growth.

Imports by Country

In 2019, Germany (12K tonnes), followed by Italy (7.2K tonnes), Japan (6.2K tonnes), France (6.1K tonnes), China (4.8K tonnes), the UK (4.7K tonnes) and Indonesia (4.5K tonnes) were the largest importers of direct dyes and preparations based thereon, together generating 45% of total imports. The following importers – the U.S. (4.1K tonnes), Taiwan, Chinese (3.4K tonnes), the Netherlands (3.4K tonnes), Poland (3.2K tonnes) and Spain (3.1K tonnes) – together made up 17% of total imports.

From 2009 to 2019, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by Poland, while imports for the other global leaders experienced more modest paces of growth.

In value terms, the largest direct dye importing markets worldwide were Germany ($36M), Japan ($35M) and Italy ($31M), together accounting for 26% of global imports. China, Indonesia, the U.S., France, Spain, the Netherlands, the UK, Taiwan, Chinese and Poland lagged somewhat behind, together comprising a further 35%.

Import Prices by Country

In 2019, the average direct dye import price amounted to $3,933 per tonne, surging by 2.8% against the previous year.

Prices varied noticeably by the country of destination; the country with the highest price was Japan ($5,749 per tonne), while Poland ($2,290 per tonne) was amongst the lowest.

From 2009 to 2019, the most notable rate of growth in terms of prices was attained by Indonesia, while the other global leaders experienced more modest paces of growth.

Source: IndexBox AI Platform