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Holiday Shipping Deadlines – Ensuring Your Goods Reach the Buyer in Time

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

Holiday Shipping Deadlines – Ensuring Your Goods Reach the Buyer in Time

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The four weeks between Thanksgiving and Christmas represent the busiest retail days of the year. Online shopping experiences an even sharper increase in traffic during the holiday period and provides an important source of revenue for most eCommerce businesses. However, despite the enthusiasm for online retail, many customers are concerned about whether their goods will arrive in time to place under the Christmas tree.

Failure to deliver products on time and in perfect condition can harm brand trust, resulting in lost customers. To ensure a positive customer experience and maintain their customer base, online sellers need to prepare a solid shipping plan to put products in their customers’ hands by holiday deadlines.

For a smooth holiday season, you need to streamline order fulfillment, invest in protective shipping materials, including air pillow packaging, and develop positive relationships with your carriers. Here are a few tips for ensuring your goods reach your buyers in time for the holidays.

Develop a Shipping Plan

Developing a shipping plan is essential to a smooth holiday season. Customers have higher expectations about when and in what condition they receive their goods during the holidays. Supply chain scheduling with deadlines may seem challenging, but taking all factors into account can make your shipping process more efficient.

-Contact all the major carriers you use to determine their last-date shipping deadlines.

-Make sure you are familiar with your supplier chains’ shipping times and obtain estimated landed shipping costs for easier budgeting.

-Plan for delivery delays and communicate estimated shipping times to your customers to help you meet their expectations. This could include marketing emails or pop-ups on your site, indicating a countdown until the cut-off date. Effectively communicating the cut-off date can also create a sense of urgency for customers, prompting them to buy more products.

-Assess the 4 KPIs for packaging and label issues; this can help you evaluate your business strategies to keep your shipping operation running smoothly.

-Consider outsourcing to a third-party logistics (3PL) company to manage warehousing, picking and fulfillment and liaising with carriers. Outsourcing these logistical aspects to your business frees up resources to divert into customer service.

Planning helps you gain insight into projected shipping delays and estimated deadlines, enabling you to notify your customers about the final day to order goods so they can receive them by Christmas.

Offer Expedited Shipping Options

You also need to consider the shipping times you offer to your customers. Online retail giants like Amazon and eBay offer expedited and same-day shipping, changing the expectations of online shoppers worldwide. Major companies who ship billions of dollars of merchandise annually have much greater flexibility of funds when it comes to waiving consumers’ shipping, so consumers have become accustomed to free shipping.

Large companies that offer fast shipping options force small businesses to do the same to remain competitive and ensure their customers receive their goods promptly and in good condition. But, during the holiday rush, small businesses may feel like offering fast shipping is cost-prohibitive. Here are a few ways you can offer expedited shipping without breaking your budget.

Be Selective with Your Shipping Providers

The most effective shipping method for your goods depends on the types of products you sell. For small packages, parcels and gift cards, UPS, FedEx, and the United States Postal Service are the best choices, as they can provide the fastest shipping times at a more affordable rate. However, for large shipments, fragile items, artwork, furniture, appliances, and bulky or oddly shaped items, the right option is consolidated freight or white glove carriers.

Set a Minimum Purchase Threshold

One way to meet this demand is by having a set order amount that meets your free shipping threshold. This also works to your advantage—the consumer who wants to buy your product may purchase more items to meet your free shipping threshold.

Consider Free Shipping

A recent study by global tech company Pitney Bowes showed that up to 75 percent of online consumers preferred free shipping with a slightly longer delivery time.

To make this a viable option for your business, consider incorporating some freight cost into the product’s price and adjusting your estimated purchase cut-off deadlines to allow for additional delivery time.

Assess Your Inventory

Determine how many products you currently have, how long it typically takes for products to get to customers and your company’s past sales history, especially around the holidays. These factors will tell you what your inventory should look like for the current holiday season and, ultimately, determine the number of supplies you will need to ship your packages.

Stock Up on Essential Shipping Supplies

The shipping supplies you need will depend on the sizes, weights and fragility of your products. Be sure to get a good selection of boxes for the types of products being shipped. Determine the sizes and amount of boxes you’ll use, depending on your inventory and your sales forecast.

Consider the types of products you’re shipping to determine what kind of packaging material to use. If you are shipping fragile products, you’ll need a large supply of protective packaging, such as air pillows, to safeguard the products during shipping. Customers prefer environmentally conscious business practices, so finding air pillow packaging that is compostable or biodegradable is an appealing bonus to many consumers.

The tape to seal the packages is essential for sealing your packaging to prevent spillage, tampering, or theft. Brown shipping tape is activated with water, and it is company logo-printable and tamper-evident. It’s a little more expensive than the more commonly used heavy-duty plastic tape, but anything imprinted with your company’s name can make an impression on consumers and build your brand.

The Takeaway

Christmas is the busiest time of the year, and customers expect their products to be delivered in time to put under the tree. Small businesses can stand out from the competition by ensuring they meet holiday shipping deadlines, but in order to do so, they need a strong fulfillment and shipping plan to help streamline their operation through the festive season.

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Cory Levins is the Director of Business Development for Air Sea Containers. 

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Archives, Features, Global Logistics, Global Trade Daily, Top Ports

TOP CONTAINER PORTS: LA & NY … AND THEN EVERYONE ELSE

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The U.S. Army Corps of Engineers compiles annual lists of the top container ports by volume, with the figures for 2018 being the most recently released.

The list shows Los Angeles handled more than 1 million more containers than its neighbor Long Beach did, but Long Beach dealt with nearly a million more than third-place New York/New Jersey did.

That those three occupied the first three U.S. slots on the Army Corps’ list is not surprising to anyone who has followed container traffic in recent years. What may raise eyebrows is how many more containers those ports handle compared to everyone else in the country.

Los Angeles took in 19.5 percent of the nation’s containers in 2018, compared to 17.9 percent the year before. Indeed, Long Beach and New York/New Jersey saw year-to-year growth under the same metrics. Long Beach containers accounted for 16.7 percent of the nation’s total for 2018, up from 14.4 percent the year before. New York/New Jersey grabbed 14.8 percent in ’18, compared to 12.8 percent in ’17.

Combined, Los Angeles and Long Beach, whose ports essentially border one another, accounted for 36.2 percent of the containers handled in America in 2018, up from 32.3 percent the year prior. If you combine the Californians with New York/New Jersey, the three-port complexes handled more than half of the containers in the U.S. in 2018, at 51.1 percent. That’s up from 45.1 percent in 2017.

While Savannah handled more than 2 million fewer containers than New York/New Jersey to land at No. 4, the Georgia Ports Authority port had an impressive growth of 305,760 units from 2017 to ’18, which was better than top dog Los Angeles.

Others who beat LA’s 115k in that metric were (in order of impressiveness): Houston (240k); Jacksonville (237k); Charleston (138k); Seattle/Tacoma, which together form the Northwest Seaport Alliance (132k); and Oakland (125k).

Below is the U.S. Army Corps of Engineers’ list of the top 15 container ports in order, with their totals for 2018, 2017 and how many more containers that represented—because no one on the list handled fewer containers than they did the year before.

Because no 2018 data is indicated for some ports, but their 2017 totals are included, these facilities are indented about where they would fall if they pulled in similar numbers of containers in ’18. However, those ports are not counted among the top 15 as presented by Global Trade.

-Los Angeles
2018: 9,458,749
2017: 9,343,192
+115,557

-Long Beach
2018: 8,091,029
2017: 7,544,507
+546,522

-New York/New Jersey
2018: 7,179,792
2017: 6,710,817
+468,975

-Savannah
2018: 4,351,976
2017: 4,046,216
+305,760

-Seattle/Tacoma Alliance
2018: 3,797,627
2017: 3,665,329
+132,298

-Hampton Roads
2018: 2,855,914
2017: 2,841,016
+14,898

-Houston
2018: 2,699,850
2017: 2,459,107
+240,743

-Oakland
2018: 2,546,357
2017: 2,420,836
+125,521

-Charleston
2018: 2,316,255
2017: 2,177,550
+138,705

-San Juan (Puerto Rico)
2017: 1,319,572

-Jacksonville
2018: 1,270,480
2017: 1,033,070
+237,410

-Honolulu
2017: 1,204,568

-Everglades
2018: 1,108,465
2017: 1,076,893
+31,572

-Miami
2018: 1,084,000
2017: 1,024,338
+59,662

-Baltimore
2018: 1,023,161
2017: 962,484
+60.677

-Philadelphia
2018: 600,000
2017: 545,408
+54,592

-New Orleans
2018: 591,532
2017: 532,597
+58,935

third-party logistics
3pls, Archives, Global Logistics, Global Trade Daily

The Impact of E-commerce on Third-Party Logistics Market Trends

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The e-commerce industry has been witnessing commendable growth over the years, primarily driven by the introduction of various technologies, which is likely to positively influence global third-party logistics (3PL) market size. Various leading e-commerce companies are adopting 3PL in their operation to simplify supply chain solutions.

3PL providers ensure timely delivery of products and monitor issues regarding tracking, shipping, warehousing, and inventory worldwide. Improving economic conditions primarily in developing countries like China, India, Japan, Singapore, and Thailand along with changing consumer preferences is supplementing the use of e-commerce sites to purchase products ranging from food to electronic items.

The third-party logistics industry has recently emerged as one of the most lucrative sectors worldwide, owing to the wide set of collaborative services extended by third-party logistics providers. Prominent third-party logistics companies constantly improving their offerings include CEVA Logistics, UPS Supply Chain Solutions, FedEx, DB Schenker, and DHL, among various others.

How is the third-party logistics industry shaping the development of supply chain management systems?

3PL providers, in essence, help retailers to improve their services and enhance their customer base. The adoption of these services majorly assists e-commerce companies to maximize their operational efficiency and improve the profitability of sellers.

3PL services assist in reducing the cost of shopping, lowers the time taken to deliver the product, enhances consumer satisfaction, and fulfills the need for advanced supply chain management. With the massive expansion of companies across the world and the simultaneous growth in their consumer pools, the 3PL market will observe a meteoric rise in the near future.

Why are advanced software technologies impacting the adoption of third-party logistics services?

Major third-party logistics providers are heavily investing in novel technologies, expanding their service portfolio, and widening their global reach. Software solutions widely being used by the companies for logistics applications include cloud ERP and SCMs. The software renders several benefits like real-time data, online documentation for international freight, warehouse management, and inventory tracking in order to gain the attention of current and potential manufacturers.

The deployment of superior technology unfailingly leads to efficient results and by extension high profits. Notable 3PL industry players are readily adopting various advanced technologies for transportation management, distribution center management, supply chain management, and data analytics.

Will Europe emerge as a promising revenue pocket for the third-party logistics 3PL market?

Regionally, Europe is poised to emerge as one of the profitable revenue terrains in the coming years primarily owing to the high internet penetration in the region. The enhanced purchasing power among the people and the constantly changing demand patterns are shifting the marketplace online due to a wide variety of product availability at a relatively lower price.

The advanced manufacturing industry which produces high-quality products is another integral factor supplementing the demand for products in the region. Reportedly, in the year 2019, the UK became the ninth biggest manufacturing hub in the world, showcasing an annual output revenue of close to USD 192 billion. European free trade agreements with several other countries across the globe are amplifying 3PL market prospects.

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A content developer by choice, Saipriya Iyer holds a rich experience portfolio of more than five years in the content creation domain. Equipped with substantial expertise across the business, technology, and finance domains, Saipriya currently pens down insightful articles that combine her knowledge of software technology and electronics.

technology
Archives, Global Logistics, Global Trade Daily

5 Ways Technology is Changing E-commerce

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Above everything else, the modern consumer is after convenience and a good experience when it comes to shopping for items. The busy schedules in an extremely fast-paced world don’t allow much time to spare for shopping. Thankfully, e-commerce has made it as easy as a few clicks. Even better, consumers can now choose anything they want from a worldwide pool of retailers regardless of where they are.

On the other hand, retailers who understand this have come out in big numbers to occupy this space through the opening of e-commerce stores. This is also an opportunity for them to cast their nets wider as well as offer their consumers a more personalized experience.

However, the birth of e-commerce would never have been realized if it weren’t for technology. Even today, technology remains the fuel behind the rising trend of e-commerce. And, as technology advances, so do the offerings to both the consumer and the retailer keep getting better.

Here are 5 ways technology is revolutionizing e-commerce.

1. Different payment options

Safe types of payment methods have always been a concern with online shoppers. Most are wary of sharing sensitive information such as credit card data on websites that they don’t trust. This coupled with the lack of a preferred method of payment has been the number one cause for cart abandonment.

Technology has come a long way to mitigate this by ensuring a secure and easy checkout process for consumers. Today, credit card payment isn’t the only way to pay for goods or services online. Other options such as eWallets, Google pay, Bitcoins among others have come to provide the safe and convenient online shoppers have been looking for.

2. Easier digital files sales

The good thing with e-commerce is that online retailers can sell practically anything, eliminating the need for brick and mortar stores. One of the biggest beneficiaries of e-commerce is people who sell digital files such as Ebooks, music, artwork, online courses, and the like. It’s also worth mentioning that through the use of technology, e-commerce enterprises are also making use of click funnel plugins which enables the selling and delivery of various products online.

Technology has made it possible to showcase their talents and knowledge to a global audience. There is a rise in apps that make it possible to create, package, and upload their work for sale. Even better, technologies such as Dropbox make it possible to upload large files. For those selling multiple files in one purchase, zip files allow them to compress these files into a single one. This is advantageous as it reduces the webspace used. Additionally, it saves consumers a lot of time since they only need to download a single file. However, consumers will need a ZIP decompression tool to unzip files once they have downloaded them. Thankfully, this is readily available across many devices.

3. Chatbots

Now more than ever, there is a need to keep the consumers happy so that they grow to be loyal and repeat customers. One way to do this is through customer support and answering customers’ questions as and when they arise. However, this poses a challenge for e-commerce retailers since their customers are spread throughout the globe. The different time zones are one hurdle these retailers have to deal with.

With the invention of chatbots, however, this is a problem of the past. This technology mimics human interactions, answering customers’ questions around the clock.

4. Social shopping

Besides keeping people entertained, social media is playing an integral part in making purchasing decisions for most people. Scrolling through the major platforms, you are highly likely to meet people asking for recommendations on the best products and stores.

Businesses that understand the power of social media are taking advantage of the big crowds to bring attention to their businesses. For instance, most online businesses are advertising their apps and online stores on social media. On the other hand, major platforms such as Instagram and Facebook have now added features that allow consumers to shop for items within the platforms. If you intend to properly market your products, you have to make sure that your social media posts are optimized to appeal to your target audience visually.

5. Push notifications and apps

One of the biggest headaches for businesses is to be in the consumers’ minds even when they are not shopping. A few years ago, email notifications gave retailers a way to keep close contact with the consumers. Unfortunately, most of these promotion emails ended up in the spam folder most of the time.

Today, the average person spends a lot of time on the smartphone making push notifications hard to go unnoticed. In addition, the presence of apps in these smartphones is a constant reminder that the brand exists.

While doing business virtually can be convenient for both the consumer and retailer, it can be overwhelming as well. However, technology is making e-commerce stores find more efficient solutions. In addition, consumers are getting the service they want thanks to evolving technology. The two parties still stand to gain as more advancement keeps hitting the e-commerce world.

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Archives, Global Trade Daily, News

The Global Paperboard Case Material Market Slipped Back to $116B

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

In 2019, the global paperboard case material market decreased by -8.4% to $116.1B for the first time since 2016, thus ending a two-year rising trend. The market value increased at an average annual rate of +1.6% from 2013 to 2019; the trend pattern remained consistent, with only minor fluctuations being recorded throughout the analyzed period. Global consumption peaked at $126.7B in 2018, and then fell in the following year.

Consumption by Country

The countries with the highest volumes of paperboard case material consumption in 2019 were China (45M tonnes), the U.S. (29M tonnes) and Japan (9.4M tonnes), with a combined 50% share of global consumption. These countries were followed by India, Germany, South Korea, Mexico, Brazil, Russia, Italy, France and Spain, which together accounted for a further 26%.

From 2013 to 2019, the most notable rate of growth in terms of paperboard case material consumption, amongst the main consuming countries, was attained by India, while paperboard case material consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($48.6B) led the market, alone. The second position in the ranking was occupied by the U.S. ($14.2B). It was followed by Japan.

The countries with the highest levels of paperboard case material per capita consumption in 2019 were South Korea (99 kg per person), the U.S. (89 kg per person) and Germany (83 kg per person).

Production

In 2019, approx. 168M tonnes of paperboard case materials were produced worldwide; growing by 2.9% compared with 2018 figures. The total output volume increased at an average annual rate of +2.4% from 2013 to 2019; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded throughout the analyzed period.

Production By Country

The countries with the highest volumes of paperboard case material production in 2019 were China (44M tonnes), the U.S. (35M tonnes) and Japan (9.8M tonnes), with a combined 53% share of global production. Germany, India, South Korea, Brazil, Russia, France, Mexico, Indonesia and Thailand lagged somewhat behind, together comprising a further 27%.

From 2013 to 2019, the biggest increases were in India, while paperboard case material production for the other global leaders experienced more modest paces of growth.

Imports

In 2019, supplies from abroad of paperboard case materials decreased by -1% to 29M tonnes for the first time since 2012, thus ending a six-year rising trend. The total import volume increased at an average annual rate of +2.9% from 2013 to 2019; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed in certain years. The growth pace was the most rapid in 2018 with an increase of 5.1% y-o-y. As a result, imports attained a peak of 29M tonnes, and then declined in the following year. In value terms, paperboard case material imports contracted to $16.9B (IndexBox estimates) in 2019.

Imports by Country

In 2019, Germany (2.4M tonnes), Italy (2M tonnes), Poland (1.8M tonnes), Mexico (1.3M tonnes), the U.S. (1.3M tonnes), France (1.2M tonnes), China (1.2M tonnes), the UK (1.1M tonnes), Belgium (1M tonnes), Spain (1M tonnes), the Netherlands (0.8M tonnes) and Canada (0.7M tonnes) was the main importer of paperboard case materials in the world, constituting 55% of total import.

From 2013 to 2019, the biggest increases were in China, while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the largest paperboard case material importing markets worldwide were Germany ($1.3B), Italy ($1.1B) and the U.S. ($993M), together accounting for 20% of global imports. These countries were followed by Poland, Mexico, China, France, the UK, Spain, Canada, Belgium and the Netherlands, which together accounted for a further 35%.

Import Prices by Country

In 2019, the average paperboard case material import price amounted to $579 per tonne, which is down by -11.3% against the previous year. Over the period under review, the import price saw a slight contraction. The growth pace was the most rapid in 2018 an increase of 14% year-to-year. As a result, import price attained the peak level of $653 per tonne, and then reduced in the following year.

There were significant differences in the average prices amongst the major importing countries. In 2019, the country with the highest price was the U.S. ($749 per tonne), while Belgium ($491 per tonne) was amongst the lowest.

From 2013 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.

Source: IndexBox AI Platform

shipping containers
Archives, Global Trade Daily, Special Reports

How Shipping Containers Can Be a Quick Storage and Office Space for Your Construction Site

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Since all construction sites are temporary, the biggest need for any office or storage space is portability. But that is not all. Storage space on construction sites needs to be secure and durable. To have a professional workspace for your company, the office space on construction sites have to be comfortable with adequate heating and cooling facility and hygienic washrooms. You need a resting space for workers to recharge their batteries, and an area to have meetings with visitors.

Shipping containers or Conex containers are a growing trend in ‘cargotecture’ that has inspired designers and engineers to create attractive and useful buildings. Their use is widespread not only in the construction industry but also in education, healthcare, hotels and restaurants, student housing, manufacturing, agriculture, and more.

Types of Containers for the Construction Industry

Shipping containers can be used in versatile ways in the construction industry. However, some of the most common and popular uses are:

Storage containers/ sheds – Construction sites often have expensive machines and computers which cannot be left in the open or in unsecured enclosures because they can be easily stolen. Wooden sheds are not enough. Steel containers with a secure locking system can help keep the equipment safe. Containers with high-security lockboxes are useful where the equipment is very expensive and additional security is required. Shipping containers can also be used to store oil and fuel safely to prevent any leakages or accidents.

Office containers – Shipping containers are the right solution for on-site temporary offices with a built-in HVAC system. They can be customized to be used as private offices, conference spaces, and waiting rooms for visitors.

Temporary housing – At times the worker staff needs to remain on-site 24/7 for special needs. It is not recommended to sleep in the open or in any other unsafe space. Shipping containers can be a great solution for providing temporary yet comfortable housing space to this staff. They can also be equipped with hygienic toilets.

Office and storage combo containers – These convertible shipping containers are ideal for those construction sites where there isn’t enough space. Combo shipping containers can be used both as storage spaces and offices with HVACs and R-11 insulated walls and ceilings.

Recreation containers – Construction site workers need breaks. It is unsafe to sit among rubble of machines and tools or in any other unsafe place. Shipping containers can be converted into recreational rooms and sleeper cabins for site workers to take breaks.

Using Containers for On-site Offices

Steel containers are extremely sturdy with high structural integrity, making them durable in harsh construction sites. On average, shipping containers retain their durability for up to 25 years. They can withstand up to 60,000 pounds of pressure thus keeping any equipment or personnel safe from accidents caused by falling items.

20 ft. and 40 ft. shipping containers are ideal for on-site offices for project managers, logistics managers, architects, contractors, procurement and store manager, and other on-site personnel. They can be easily stacked or arranged side-by-side and connected to form large office spaces with an industrial lift or a staircase. Shipping containers can be a hygienic alternative to chemical toilets which can get very messy with time. It can be fitted with plumbing for shower blocks, sinks and taps, water storage tanks, and waste disposal units.

Since office containers come with pre-fitted lighting, electricity hookups, telephone, and internet accessibility, charging units, and windows it is very convenient to just assemble them onsite.

Construction site offices can also be extended to have an emergency medical aid facility for injuries caused on-site. Shipping containers can easily be converted into first aid centers with basic medical facilities, HVAC systems, hot and cold-water supply, examination beds, and other medical supplies.

Using Containers for On-site Storage

There is a range of items that need to be securely stored on construction sites for which shipping containers are an ideal solution. It includes expensive tools, machines, computer hardware and sensitive documents. These items cannot be left unsecured as they can either be stolen or destroyed leading to big financial losses. Containers used for storage can also be doubled up as on-site workshops with a separator door. They can be used for small tasks to maximize the usage of the space.

Shipping containers can be modified with lighting, high-security doors, and shelving to store tools and machines. They can also be temperature controlled with HVAC systems and equipped with ramps and rollup doors to store weather-sensitive items such as wooden doors, windows, steel bars, glass, paint, and cement.

Steel shipping containers are designed to weather the harsh conditions at sea. They can certainly save the equipment from fire, vandalism, theft accidental damage, and helps easy sorting, loading and unloading. They come in 10 ft., 20 ft., 24 ft., and 40 ft. sizes with simple and high-security lockbox options for your specific needs.

Containers can also store flammable fuel and oil safely on construction sites. They can be converted into a COSHH store with taps, venting systems, removable floors, and drip trays to safety store the fuel.

Benefits of Shipping Containers at Construction Sites

Customization – Unlike steel and concrete and modular buildings, shipping containers provide you the flexibility to customize every inch. You can add single or double doors, windows, ramps, roll-up shutters, interior accessories, shelves, electrical and plumbing units, and much more. The sturdy steel frame of shipping containers also allows them to be stacked on top of each other to assemble and disassemble multi-story buildings. The buildings can also be equipped with industrial lifts, ramps, scaffolding, and staircases for easy access. Such a level of customization at an affordable price can seldom be achieved via permanent construction of modular buildings.

Durability – Shipping containers are designed with highly durable, corrosion-resistant, and reinforced steel with a shelf life of 25 years on an average. They can easily bear the harsh environment of a construction site while providing a safe enclosure to your tools, machines, and personnel from any falling objects.

Cost-effective – Having a permanent or temporary office of steel and concrete can be more expensive than a steel container. Moreover, it takes more time to get a permanent structure up and running. With steel containers you can quickly assemble the structure you need at an effective monthly fee. When the construction is over, the building can be quickly taken down and containers returned to the service provider.

Portability – Since shipping containers come pre-fabricated they can be easily moved around the construction site and relocated if required. This is impossible with a fixed steel and concrete construction.

Conclusion

Keeping in mind the durability, versatility, cost-effectiveness and mobility of shipping containers, they are an ideal solution for every construction site. You can quickly set up the building you need that follows the required state and federal safety laws and OSHA guidelines. If used innovatively, there are infinite ways in which shipping containers can be configured for use at a construction site.

trends
Archives, Global Trade Daily, Special Reports, Warehousing

8 Trends Driving E-commerce Innovation

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The world of e-commerce has undergone quite a year. And with everything going on in the world, chances are that growth, innovation, and change are what we can expect in the year to come as well.

Global growth or no global growth, you do have to stay on top of the latest trends if you want to stay on top in the world of e-commerce – otherwise, you will find yourself at the bottom of the heap. Let’s take a look at eight trends that are set to continue driving innovation in 2021 and beyond.

Mobile Continues to Be on the Rise

Even though mobile search overtook desktop a long time ago, mobile is still on the rise in every sense of the word. Focusing on the experience your users have when accessing your store via their mobile phones is certainly a trend that will not disappear soon.

Elements to focus on include:

-Speed

-Ease of access

-Ease of navigation

-Safety

-Personalization

A good example of the kind of mobile-first website design we are referring to is the LMNT website. It is super-fast, it is responsive, and it has retained that mobile-friendly design on the desktop version as well, providing more cohesion.

image source: drinklmnt.com

Voice Search Is Also Important

By 2025, it is predicted that 75% of US homes will have a set of smart speakers. And while voice search is currently still a bit of a dark horse for some users, Alexa, Siri, and Amazon Echo are slowly becoming a daily part of many lives.

What you as an e-commerce store owner can do is optimize for voice search, and enable your visitors to execute voice-based search commands and navigation on the website (or at least on its mobile version).

This will be a significant investment, and you may be able to hold off on it for a while. However, if your target market is among the population that is already heavily relying on voice commands, the time is now.

Personalization as the New King of Marketing

Shoppers have always responded better to offers that were tailor-made for them. Think of personalized letters in the snail mail, or calls from sales assistants who have reviewed your loyalty card with a brand and know what kinds of products you like to purchase.

Today, with the rise of AI, e-commerce is heavily relying on data-driven personalization. You can now know more about your visitors and their behavior online than they themselves know about themselves. This leads to a bit of a safety and trust issue, but also provides an incredible shopping experience.

The more you can tailor your ads, offers, and other marketing assets to a specific visitor, the better you will fare. Especially since other e-commerce brands are already doing it, and doing it well.

Social Commerce Making an Impact

As modern shoppers are spending more and more time on social media, it was only a matter of time before social media and e-commerce merged into one big happy experience.

Social media platforms are mini search engines themselves, and 55% of shoppers are making purchases from a brand’s own social media posts. As plenty of these platforms now allow shopping straight from the post, impulse purchases are on the rise – as are conversion rates.

A brand that has embraced social commerce is Zoma Sleep. This company has enabled their Instagram shop, allowing you to purchase one of their mattresses directly from the image posted on their feed. Never has it been this easy to get something delivered straight to your door.

image source: zomasleep.com

More Payment Options are Becoming Available

Not too long ago, there was the option of paying for an online purchase via credit card, when PayPal and Stripe were still distrusted as a scam. Today, we have hundreds of ways to pay online, from cryptocurrency to wire transfer.

Customers are expecting different payment options more and more – especially since all the biggest e-commerce names have allowed for them (think Amazon).

If you are insisting on one (or two) ways to pay, you are likely missing out on some serious traffic, and you’ll need to consider adding more options as soon as possible. However, remember that you should first focus on the security of your store, and only then allow new payment options – they will not matter one bit if your data storage is hacked.

Dynamic Pricing Is Here to Help

It can be very difficult to keep track of all the fluctuating prices in your niche and industry. After all, in order to remain competitive, you need to be able to adjust your prices when and if needed – and to be able to do that, you need to keep track of the prices of your competition.

Tools like Aura are here to help you out – if you are using Amazon as a marketplace. On the other hand, if you are using Shopify, you can also benefit from a dynamic repricing tool that will automatically keep track of the prices you set and alert you when a change needs to be made (or make the change for you).

The Importance of Order, Purchase, and Inventory Management Automation

In the world of e-commerce, automating as much as you can is sometimes what sets you apart from your competition. And while they are busying themselves with the tasks you have automated, you have the time and resources to devote your energies elsewhere.

One of the key processes you should be automating is the management of your orders, purchases, and inventory. This can easily be done with a tool like InFlow that will keep an eye on your orders and inventory, alerting you to every important change – while you grow your business.

B2B Is Also on the Rise – Again

The B2B e-commerce market is expected to reach $1.1 trillion in 2021. As more of these businesses are moving online, you need to take into account how B2B buyers like to be charmed. Working in a B2B environment is different from working in B2C – at least in the world of e-commerce.

What you need to take into account is that millennials are becoming the new B2B buyers – so marketing for them is key. You also need to remember that Gen Z is also starting to make their mark on the workplace, and they do need to be treated differently.

Think in terms of simpler solutions, better user experience, more self-serve options, and providing all the information they need to make a purchase without them having to contact your sales team.

Final Thoughts

Trying to stay on top of all of these e-commerce trends might prove to be a challenge. However, if you manage to focus on the ones that pertain to your target audience the most, you’ll be able to greet the coming year well-prepared.

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Karl Kangur is the CEO of Result Compass

IMMEX
Archives, Global Trade Daily, Imports/Exports, International Trade

How Manufacturers Save Money Through Mexico’s IMMEX Program

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The IMMEX maquiladora program combined with the available VAT certification offers one of the top cost-savings benefits for companies that implement nearshore manufacturing in Mexico. It offers a 16 percent VAT tax exemption for all temporary imported materials, equipment, and tools. Manufacturers that have previously expanded operations internationally may compare this benefit to what’s normally referred to as a “free trade zone.” Although tax-wise the IMMEX program is similar, the extra advantage is that it’s not centric to any one geographical location.

When added to access to a competitive, cost-effective workforce, close proximity to the U.S., and favorable trade relations through the USMCA, an operational transition from China to Mexico is a viable option for a growing number of manufacturers. Numerous global brands across multiple sectors have already experienced success over the years through Mexico manufacturing, and the benefits continue to entice new companies to explore their options closer to home.

Working with Mexico Shelter Companies to Ensure VAT Tax Exemption

To receive tax benefits through the IMMEX maquiladora program, manufacturers can either apply and become IMMEX program approved and then get their VAT certification on their own or operate under a shelter umbrella that already has both permits in place.

The timeline of being accepted into the IMMEX maquiladora program often takes several months due to the complexity of what’s necessary to meet the criteria. Plus, if there are any discrepancies in the application and a company is denied, they must start the process again. This impacts Mexico manufacturing costs since companies can’t import any components, materials, or equipment without having their IMMEX program.

Once they have it or work with a shelter to use the shelter’s program, manufacturers are able to initiate their equipment and materials imports and start the setup process on their current Mexico facility. As you can imagine, not doing this right and as fast as possible will present delays on your project. Mexico shelter companies allow manufacturers to receive VAT tax benefits automatically when working under the shelter’s IMMEX licenses since a VAT certification is already in place.

This is in addition to other advantages, such as lower customs broker fees and the use of special compliance software that tracks the timeframe of all temporary imported materials that exempt VAT payment at customs. Companies that wish to apply for the program on their own must hire a U.S. and a Mexico customs broker, since these are the representatives that process and transmit to customs all the documentation required to move materials and finish goods
through the US / Mexico border. Also if you select this operating option, you must absorb all compliance software fees.

Additionally, once approved, a manufacturer can lose VAT certification at any time if criteria is not met at the time of renewal or during an inspection from the Ministry of the Economy. Manufacturers who partner with a shelter company often benefit from decades of expertise, experience minimizing red lights at customs, and a history of optimizing operations.

Explore Cost-Saving Solutions When Manufacturing in Mexico

The fiscal benefit of Mexico’s IMMEX maquiladora program is significant but comes with strict guidelines and great responsibility. Although starting from scratch is an option when nearshore manufacturing in Mexico, it increases costs and extends operational set up times that can lead to bigger challenges down the road.

In addition to working under a shelter’s IMMEX license, a shelter provider can create a customized cost analysis that explores additional ways to save money and get operations up and running efficiently and on schedule.

Overall, the IMMEX maquiladora program provides a good avenue for manufacturers looking to get operations up and running quickly and smoothly.

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Sergio Tagliapietra has spent his entire career pioneering administrative service solutions in Mexico. He works with government in all parts of Mexico and he is one of the country’s most respected business leaders in the field. He is president and founder of IVEMSA, a full shelter services provider and partner to manufacturing companies expanding to Mexico.

intermodal
Archives, Global Trade Daily, Ocean Carriers, Stories, Trucking

SHIPPERS ON INTERMODAL: CHANGES NEEDED FOR GROWTH OPPORTUNITIES

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The intermodal transportation sector is experiencing an interesting shift as of lately. The combination of disruptions from the pandemic while others are caught playing catch up to adequately refill warehouses and distribution centers has posed new questions for a variety of sector leaders. For the intermodal sector, however, a new question is present in the minds of leaders and players in this arena: What is needed to leverage opportunities for growth post-pandemic and moving forward with the “new normal” we keep hearing about?

The answer to this question is not found within one single solution or technology offering. In fact, there is no single answer at all. The perfect mix of artificial intelligence, increasing capacity and creating more visibility and agility within operations will ultimately be the key to reviving and maintenance.

The COVID-19 pandemic has challenged all parts of the supply chain, from operations and compliance to technology integration, and although many players have successfully restarted operations, it is important to consider the ways transportation has been forever impacted to better prepare for future disruptions. But in what ways has the pandemic impacted the intermodal industry? Doug Punzel, president of Celtic Intermodal, explains exactly how the pandemic has impacted the sector and how methods are shifting to accommodate continued movement.

“As COVID-19 continues to impact the supply chain and logistics across industries, some areas have limited access to trucks,” explains Punzel. “The truck shortage has increased demand for intermodal transportation. In fact, beginning the third week in April, we have begun to see surges in volume–especially in California, Texas and Mexico. We are seeing shortages of box and train capacity in some areas, as shippers with expanding needs are caught up and filling warehouses. At the same time, many markets in the United States have plenty of box, drayage and train capacity.”

Utilizing a robust technology toolbox further supports the industry, although some sectors are slower to adapt than their partners. The key to remember here is not how much tech is being used, but what challenges are solved through their implementation and how they are customizable for specific customer needs.

“AI, machine learning and other software advancements allow real-time visibility of end-to-end supply chain operations to keep a pulse on the business,” Punzel says. “The ultimate goal is to reduce risks, capture more competitive freight pricing, and identify optimal routes for the greatest cost savings.

“With today’s volatile current events that threaten to disrupt the supply chain on a regular basis, flexibility is vital for business success. For many shippers, intermodal transportation has incredible potential to be a reliable and affordable component of logistics strategy. Technology innovations are supporting real-time visibility, mitigating risks, and optimizing transportation costs.”

Celtic Intermodal, a Transplace company, offers a unique solutions portfolio for customers seeking the perfect solutions, offering flexibility and visibility while keeping an eye on the unexpected. Celtic focuses on what the customer needs are throughout the process while identifying areas of improvement both operationally and financially. The company offers customers Strategic Capacity Solutions, Door-to-Door Intermodal, 53-foot Containers, 40-foot Containers, Cross-border Intermodal and International Drayage in addition to managing more than 20,000 40-foot container shipments each year. Celtic’s robust network of steamship lines and dray provider partners further support consistent capacity to meet the needs of their global customer network.

“We implement dynamic solutions to our customers’ transportation needs by providing exceptional customer services, capacity, reliability and expertise,” Punzel says. “With access to over 70,000 containers every day and strong relationships with major rail providers, including Union Pacific, Norfolk Southern, CSX, BNSF, CN, CP, and KCS/KCSM, our dedicated account team focuses on our customers–providing the best combination of rates and routes.

“Our cross-border intermodal services bypass border-crossing issues and congestion,” he continues. “We enhance the security of customers’ shipments while reducing overall transportation spend with our door-to-door intermodal services across Canada, Mexico and the U.S.”

The unique relationship Celtic has with its Class 1 Railways network offers customers competitive options in transportation that others cannot. Punzel points out two specific pros to working with Celtic that keep shipments moving and customers satisfied.

“We are strategically located near our customers and where rail ramps are located,” he says. “We can be more effective with short-haul moves within five to 800 miles because we are closer to rail ramps. And in case of derailment or tunnel outage or another type of outage, we leverage our relationships to remain in close communications with Class 1 Railways and be more collaborative to support our customers’ needs. We conduct network analysis to help customers identify modal conversions and scale up or down with volume. With well-integrated intermodal transportation, overall shipping costs are greatly reduced.”

Punzel goes on to explain that the simplicity of scheduling is a significant factor to promoting growth for the intermodal sector. It goes directly back to predictability and the constant need for progression within the industry. The relationships developed and utilized by Celtic provides added security for customers in case of the unpredictable. This is especially important in today’s “new normal,” where measures in safety and regulation seem to change without much notice. The supply chain does not have time to stop and companies such as Celtic present solutions for issues before they happen.

“Customers with over-the-road freight are open to conversion to intermodal only if the schedule is predictable,” Punzel explains. “Over the past three years, all railroads have improved service by maintaining reliable, scheduled, on-time performance, which is key to growth.”

So, what exactly needs to occur for progression and growth within the intermodal sector? In simple terms, the perfect mix consisting of the right technology that provides accurate and timely visibility, advanced predictions analytics, integrated communications, and removing inefficiencies that create unplanned costs. This perfect mix is not as hard to attain when customers are paired with the right partners for the job. As we learned with Celtic, strategic locations and competitive offerings make a significant difference in offering the best options and supporting the bottom line.

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Doug Punzel is the president of Celtic International, to which he brought more than three decades of transportation experience. He joined Celtic in 2014 and has been instrumental in the company’s growth. Throughout his tenure in the industry, he has served in a number of roles, including sales, customer service, operations and leadership. Prior to Celtic, he was a leader within the intermodal sales division at Schneider National.

e-commerce
3pls, Archives, Global Logistics, Global Trade Daily

7 Steps to Create Good E-Commerce

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In the midst of the recent release of the Best Online Shops 2021, Newsweek, DK Hardware CFO Art Goldman shares his thoughts on what it takes to build a solid and sustainable online sales strategy.

We call e-commerce a type of business that sells through an electronic store, either through an app or a website. When creating an electronic business, it is advisable that you follow these 7 steps to create good e-commerce.

Before starting, I have to warn you that -although it seems a simple and intuitive task- to be successful you must control many aspects and technical elements, as well as considering whether it is worth looking for an agency or business to help you or to do everything yourself. A good start is essential for the project to survive and continue in the following months and years. DK Hardware for instance was one of the first online retail stores in the United States and Canada back in 2008 and has continuously evolved to adapt to consumer needs and expectations.

The truth is that in order to be successful you must delegate many tasks to third parties; rarely can a person execute all the tasks alone. Hence, apart from these digital marketing tips, you should also take into account other legal advice and the different formulas that you can implement to associate yourself with the different professional elements that you require.

1) Analyze both internal and external elements that can harm your project

Logically, before starting any project, a good business plan must be made so that it has the success that we can expect from it. For this reason, the first step is to analyze both the internal and external elements that can harm your business. We already have a key piece that is choosing a good platform to manage the e-commerce or online retail perspective. In fact, if we do this analysis well, we can not only prevent some of those negative elements before they appear but also carry out future strategies so that if they arise, the team knows how to act against them before they escalate.

A) What is an internal analysis?

By internal analysis, we understand the observation of how the company is going to function and its financial resources. Here comes into play the work that legal consultants carry out in tax, labor, and financial law to advise entrepreneurs on how to optimize all these elements legally. However, you can also do it yourself, taking care of these aspects:

-Economic and financial situation of the company.
-Human resources and labor expenses.
-How to obtain financing.
-Structuring the distribution network to streamline expenses.
-How to formalize contracts with the different agents or subjects involved (employed, self-employed, subcontractors).

B) Analysis of external agents

This all about observing and analyzing the competition. It is especially important to have good tools that allow us to evaluate our main competitors in different aspects such as social networks and organic positioning in search engines.

On the other hand, from a legal point of view it is about analyzing the current legislation, being essential to observe the following normative aspects, which may vary in each state, country, and continent:

-Contractual law.
-Consumer protection laws.
-Data Protection law.
-Statute of the workers, the commercial and civil code to establish contractual labor relations.

2) Create a SWOT

From this list of steps to create good e-commerce, the next one I recommend is once we have analyzed our internal and external landscape, do a SWOT to synthesize the competitive advantages that we have; as well as the disadvantages, opportunities, and weaknesses.

Once we have the SWOT completed, it will be easier to identify our competitive advantage.

3) Identify the competitive advantage

The third step in creating e-commerce is to identify our competitive advantage. This must be maintained, expanded if possible, while always monitoring that the competition does not remove this differentiating element in the future. Hence, many entrepreneurs maintain that creativity must not only be maintained during the first stage of the business; but during throughout the endeavor.

Furthermore, if we identify the competitive advantage, it will be much easier to set prices.

4) Define the target audience

Once we have identified our competitive advantage, we must define our target audience. It is a difficult task on many occasions since it is not only about imagining it, but to try to find out who really buys those products and who is willing to buy them.

It is good to accompany it with interviews, prospecting techniques, surveys and focus groups.

5) Select a good e-commerce platform

Creating an electronic store is a difficult task which not only has to result in a functional platform with flawless user experience, but also be optimized for search engines and have all the appropriate psychological elements so that people who browse the website finally buy and acquire those products.

Therefore, there are many aspects and factors to take into account, like:

A) Choose a good domain.
B) Select the quantity of products that will be sold.
C) Hire a good hosting.
D) Select a technological platform.
E) Create an attractive and user-friendly design.
F) Use logistics and stock control software.

6) Communication strategy

Once the skeleton of the website has been configured and a coherent structure has been planned, you must create and design a solid online aligned communication message, led by professionals in the field. You can think of social media and public relations to convey your message initially and, if the budget allows, escalate that into aligned marketing campaigns with a traceable ROI. Google Ads and social media might surprise you with its efficiency and usual low costs for tailored advertisement.

7) Set product prices

Now that we have everything designed and that you have probably already executed each of the elements to create a good e-commerce environment, we will have to establish the prices for our products. It is good not only to have the advice of marketers on these prices; but also, from the tax consultant or financial advisor to help your company run properly and not have losses that endanger its validity.

To set prices on your online store, it is essential that you take into account the analysis of the situation that you did at the beginning of the project, both external and internal elements. Setting prices may sound quite easy, but in practice, a profoundly serious study is required to help you optimize each of the elements that make up the production and distribution chain of the company.

With this analysis we must enhance our strengths and create opportunities in our weaknesses, only when you know the profitable price of each product, you can later make discounts, promotions, offers, and bonuses on designated dates (Christmas, Valentine’s Day, Easter, Black Friday, etc.).

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Featured in America’s Best Online Shops 2021 – Newsweek, DK Hardware is one of the largest online home improvement retailers for a variety of hardware manufacturers all over the United States and Canada.