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How Modern Networks are Supporting Humanitarian Aid and Disaster Recovery

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How Modern Networks are Supporting Humanitarian Aid and Disaster Recovery

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Ensuring how lifesaving medicines and supplies are distributed is challenging, especially when it involves moving supplies in a hurry. Whether overseeing how disaster relief services are distributed in a time of crisis or to secure the medical supply chain to help eliminate counterfeit drugs, locking lock down the global supply chain and achieving transparency has never been more critical.

Traditionally, many U.S. based nonprofits have been penalized by potential donors for having high administrative costs. Thanks, in part, to this increased spending scrutiny, investments in technologies that could be transformational in the fight against poverty and disease have been shelved to keep spending at bay and to avoid doling out the high price tag the technology could cost. Dan Pallotta’s Ted Talk called out the double standard that drives our broken relationship to charities when he urged companies to start rewarding charities for their big goals and big accomplishments even if that comes with big expense. Having worked with hundreds of nonprofit organizations, I have witnessed their Herculean efforts to get the right aid, to the right people, at the right time despite the fact they were saddled with antiquated technology.  Nonprofit organizations, especially those delivering lifesaving aid, need world-class tools as much, if not more, than for-profit organizations.

Coping with Supply Chain Management Challenges

The sheer number of constituents involved in the aid ecosystem – nonprofits, first responders, governments, funders, suppliers, logistics providers, warehouses, food banks, clinics, etc. – each rely on different systems, applications, and formats that make custom integrations necessary for them to collaborate.

For instance, many non-government organizations (NGOs) are working to end AIDS, tuberculosis, and malaria in Africa. However, they all face a number of logistical challenges as they deal with naturally occurring data silos that are scattered across various geographic locations. Also, the scale of these programs is massive. In Ethiopia alone there are more than 435,000 square miles with more than 30M people living in poverty.

In the humanitarian arena, challenges are also amplified by poor infrastructure. When it comes to internet speed, most of Africa ranks at the bottom of the list with Ethiopia coming in at 139 out of 196 countries worldwide. And as one could imagine, the internet access declines the further one  travels into more rural areas.

While distributing international aid is challenging, managing a supply chain moving pharmaceuticals is especially difficult. First, there’s a lot of product to deal with and pharmaceuticals require a hyper focus on expiration dates, medical oversight and, for some products including vaccines, a temperature-controlled supply chain.

Then, there is the growing epidemic of fraudulent and counterfeit products that are entering the supply chain. According to a World Health Organization (WHO) report, substandard and counterfeit drugs cause improper dosing, compromise the effectiveness of medicines and can even lead to overdose and death. The WHO says that one in ten medicines are counterfeit, and 100,000 people in Africa die every year due to counterfeit medicines.

As if the above challenges aren’t bad enough, a disaster can make them exponentially more difficult. Communication problems are magnified, internet access can be lost in affected communities, and new players are introduced. Consequently, needs are changing even more rapidly and time is of the essence.

Humanitarian Aid Reaches a Tipping Point

Nonprofits and the partners they rely on are realizing that the flawed architecture of single enterprise-centric solutions cannot support the highly dynamic and interconnected business environment that is required to deliver aid. Just as cloud-based social networks such as LinkedIn and Facebook have created new approaches to how we manage our personal and business relationships, new network platforms and the resulting communities are changing how business is conducted between the end consumer and all the companies on the network.

Similar to when you change your status or job, your entire network has access to this information in real time, and supply chain networks work the same way. With you and all of your partners on the same page at the same time brings unprecedented value to the humanitarian aid ecosystem.

In a network model, costs are reduced for all parties as the network grows, because they are shared by the members. In addition, these networks operate using a monthly subscription fee versus the traditional large up-front costs. This lowers the barrier to entry, provides a predictable ongoing run rate, and enables all parties to leverage the same platform and infrastructure.

In the network model, the technology is by the community for the community. The community defines best practices and as new features are added, they are shared across the network. The technology is evergreen versus stagnant; constituents stay on the leading edge, rather than having to invest in expensive upgrades.

How Networks are Supporting Universal Visibility and Transparency

Sophisticated permissions technology is also enabling new found visibility, as advanced networks can partition data and provide the right information to the right person. Now, logistic providers know the exact location of their trucks, program managers can see who received aid, and funders will see their impact quantified.

Networks also provide a single version of truth to all the constituents so the entire humanitarian ecosystem can be on the same page and focus on the recipients changing needs. This is especially important in a disaster, when every moment counts.

The network can also be used to fight the counterfeit problem as the technology can store a library of authentic products by dosage form all the way down to the molecule. At any point in the supply chain products can be validated to ensure they are legitimate using sophisticated scanners. If a counterfeit product is detected, networks provide the ability to track and trace through serialization which greatly helps in the event of recalls and the removal of counterfeit products.

As more organizations join the network, the value of being a participant increases. New companies will find that many of their business partners are already on the network, which reduces time for on-boarding. This enables the humanitarian response to be agile and expand as required, which is especially important in disaster response because you never know when or where the next disaster will strike. Even with no internet access, some sophisticated network providers offer the ability to work offline and then synch up when an internet connection becomes available. In a disaster response scenario or working in developing countries, this is a game changer. Today, nonprofits have the opportunity to leap frog some traditional challenges and investments. For example, they can skip ERP and go straight to a network platform.

Whether working domestically or internationally, networks give humanitarian organizations transformational abilities that can magnify bottom of pyramid impact. By allowing the supply chain to bypass ERP solutions, participants have the ability to create bi-directional supply chains versus the traditional push model. This enables them to better understand what is needed and ultimately help relieve the suffering for those inflicted.

About the Author:

Melis Jones, Global Marketing Director at One Network Enterprises., a provider of the blockchain-and AI-enabled network platform, The Real Time Value Network.  To learn more, visit https://www.onenetwork.com/ or follow them at@onenetwork

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DACHSER Offers Air Freight Charters for Peak Season Again

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This year, the logistics provider will be organizing charter flights for the Frankfurt—Shanghai—Frankfurt route again, offering customers in central Europe and China weekly round trips during air freight’s peak season.

“We are expecting this year’s peak season to be another strong one for air freight. Having our own charter means we can create premium capacity for our customers with fixed process and transit times,” says Timo Stroh, Head of Global Air Freight at DACHSER. “In doing so, we enable them to have extra freight volume even when capacity in the air freight market is tight.”

Special items, such as temperature-controlled goods and express goods, can also be sent anywhere in Europe and to northern China.

Charter project customers in Europe also benefit from the interlocking of the DACHSER Air & Sea Logistics and DACHSER European Logistics business lines. The company handles pick-up and delivery with the help of comprehensive overland transports, and in Asia, DACHSER Air & Sea Logistics organizes collection and distribution to very remote areas through partners.

 

About Dachser USA Air & Sea Logistics

Founded in 1974, Dachser USA Air & Sea Logistics Inc. is the U.S. subsidiary of German-headquartered Dachser SE. The company is a leading global logistics provider employing 29,100 professionals in 396 locations and handling 81.7 million shipments annually. Dachser USA Air & Sea Logistics is headquartered in Atlanta with locations in Atlanta, Baltimore, Boston, Charlotte, Chicago, Cincinnati, Dallas, Detroit, Houston, Los Angeles, Miami, Minneapolis, New York and Phoenix. Dachser USA Air & Sea Logistics offers optimal access to international markets and ensures seamless integration of all import and export activities via air or ocean to and from Europe, Asia and South America. For more information, visit www.Dachser.us.

Republished with permission from BSY Associates Inc.
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Our 2018 Picks for the Top 100 Cities for Global Trade

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Each year, Global Trade magazine takes the time to look at U.S. cities to guide our readers to the best places to do business.

We choose these cities based on many factors: what they’ve done, what’s planned, and how global trade has responded to them. As with any list like this, there is always room for interpretation, but we feel that each of these cities, from the country’s largest to some tiny cities, all deserve to a look from anyone interested in doing business in the United States.

THE NATIONAL ECONOMY AND TRENDS

The economy of the U.S. is stronger than it has been in decades. Record low unemployment, rising wages and high consumer and business confidence are all contributing to huge growth in the economy. The fundamentals of the economy are strong and don’t appear to be weakening soon.

Many businesses and industries that had abandoned the U.S. for cheaper shores are returning due to changes in tariffs and economic realities. Notable is the return of the steel industry, which was all but dead in the U.S. but now appears to be making a quiet resurgence.

On the horizon are areas for concern, depending on whom you ask.

The current administration succeeded with renegotiating some trade agreements, as evidenced by the creation of USMCA to replace NAFTA, but trade with China is still a huge question mark. China’s government doesn’t appear to respond to strong-arm tactics, and they have a large enough economy they may be willing to battle with the U.S. administration.

Some economists predict a mild recession in 2109, but most offer different reasons for this. Without a consensus, it’s hard to believe these predictions will come to fruition.

 

THE BEST CITIES FOR GLOBAL TRADE

Each category of this list allows business leaders to look at locations in which to open or relocate a business.

Multi-Category Winners

These cities deserve mention in several categories. Most times, these are America’s largest cities and are obvious candidates for many categories….

 

New York City(Export/Financial Hub)

New York City is an obvious choice for several categories. As the heart of the global financial community, with Wall Street and most of the world’s largest banks, New York is arguably the global financial center. The Port of New York and New Jersey is still the second busiest in the world. The Big Apple is the launching point for millions of global businesses.

 

Seattle(Export/Skilled Workforce/Financial Hub)

Seattle has been a global trade leader for over a generation. With its well-protected port, and as the home of such businesses as Amazon and Microsoft, skilled workers and financial services have flocked to the city. Few cities in the world offer the global trade access that Seattle does without massive populations.

 

Chicago(Export/Intermodal)

The Windy City has been the entry point to and exit point from the heart of the United States. It is still the ideal location to import and export goods. Its intermodal strengths include a massive highway system, river barges and rail that allow the movement of goods within the country with ease. The St. Lawrence Seaway provides access for ships of every size to go into and out of the Great Lakes.

 

Detroit(Export/Financial Hub/NAFTA/USMCA/Business Incentives)

Despite a legendary crash of the auto industry and bleak images of a downtown in shambles, the Motor City is still an economic powerhouse. With easy access to the Great Lakes and Canada, Detroit is an excellent place to do business with America’s second largest trade partner, Canada. The economy in Detroit has led to business incentives that rival or best anything being provided by the Southern states.

 

Miami , Florida(Export/Skilled Workforce)

More than pristine beaches, Miami and its high-tech port are an excellent location for import/export. There is also an abundance of skilled workers who have arrived in the city, many of them immigrants bringing an intimate knowledge of other nation’s economies and markets.

 

Dallas(Export/Intermodal)

The Big D is a place with a Texas-sized economy and the assets to keep it that way. The intermodal assets in the city make it an ideal location to bring goods in via air or the nearby Gulf ports and ship it to the booming South and into the Mountain states.

 

San Francisco(Financial Hub/Cities to Watch)

San Francisco has been a financial hub since the Gold Rush, and it continues to show its prowess by attracting financial business from Silicon Valley and the large, but hidden, economy of Northern California. The Golden Gate City makes our list of cities to watch as it is going through a growth spurt and, if the city leaders adapt well, will solidify San Francisco’s place among such cities as Hong Kong, Singapore and Los Angeles as a Ring of Fire powerhouse.

 

Charlotte, North Carolina(Financial Hub/Start-Relocate a Business)

There are few cities like Charlotte. Maintaining much of its old Southern Charm, this city has modernized overnight and is attracting some of the best businesses and minds in the country. The quality of life, the vibrant economy and the entrepreneurial spirit of the city make it an ideal place to start or relocate a business. The financial sector makes Charlotte a quiet giant, home to billion-dollar deals and a large investment community.

 

Minneapolis/St. Paul(Financial Hub/Skilled Workforce/Business Incentives)

The Twin Cities have been and are home to many of the nation’s largest financial institutions. It maintains its place as one of the best educated cities in the country with great colleges and universities and a quality of life that keeps people there. The region’s economic developers are committed with loans and grants to help businesses grow and thrive in the area.

 

Durham, North Carolina(Financial Hub/Start-Relocate a Business)

At one point of the Research Triangle, Durham, North Carolina, is on our list of places to start or relocate a business. With abundant workers, from unskilled to highly skilled, arriving to the region every day, it’s an ideal place to put most types of business. The financial sector in Durham is growing as the surrounding states are welcoming large global businesses with staffs that need local financial services.

 

Memphis, Tennessee(Intermodal/Business Incentives)

The Mississippi River flows past this city, known for its music life. The river along with a well-established intermodal system make Memphis a perfect spot from which to import and export. Bringing business to the city is made easier by incentives that often lead the nation in their boldness. Memphis sits at the heart of the South, centrally located to move goods and people up and down the entire country.

 

El Paso, Texas(Export/NAFTA/USMCA)

There might not be a better city to trade with Mexico and South and Central America than El Paso. Right on the Mexican border, with one of the best intermodal systems in the region, El Paso makes it easy to do business with America’s southern neighbors.

 

Austin, Texas(Start-Relocate a Business/Skilled Workforce/Quality of Life)

In a state famous for its rugged individualism, Austin is a place built on community growth and shared wisdom. This has attracted tens of thousands of skilled workers and created a capitol city that is friendly to residents and new businesses. Altogether, this makes Austin one of the coolest cities from which to launch one’s global empire.

 

Cheyenne, Wyoming(Start-Relocate a Business/Small Market)

With just 64,000 residents, Cheyenne is a small city that has a lot going for it. Wyoming is leading the nation in business climate, according to the Tax Foundation. This, combined with a commitment to small and medium-sized businesses, makes Cheyenne a great place to start or relocate a business. Still small enough to have that small-town feel, Cheyenne has a full-sized business climate.

 

Bismarck, North Dakota(Start-Relocate a Business/NAFTA/USMCA/Small Market)

Along the Canadian border there is a business boom that is quietly eclipsing the country. North Dakota’s oil rich economy is creating a perfect environment for starting or relocating a business, particularly if you’re looking to do business with Canada. North Dakota’s capitol city is small (72,500 souls) but is moving up the ranks of business-friendly cities.

 

Sioux Falls, South Dakota(Start-Relocate a Business/Business Incentives)

Sioux Falls, like Bismarck, is enjoying a statewide boom in energy. One of this small city’s biggest assets is the incentive efforts that are made to welcome and grow businesses. The leadership is very creative with assistance to bring jobs to town. Starting or relocating a business in the city is a powerful way to take advantage a great small city in a state that offers outstanding tax rates.

 

Texarkana, Texas(Business Incentives/City to Watch)

By far the smallest city on our multi-category list, Texarkana has a unique history that makes it a city to watch. In the Panhandle, it is on the Arkansas border and very near the Louisiana and Oklahoma borders. Once home to the U.S. military’s largest weapons depot, this city has rail lines to spare and buildings that were literally built to withstand a bomb (or decades of business). The leadership offers amazing incentives and works with businesses to get them what they need. A tiny Texas giant, this is a city poised to lead the nation in growth.

 

Des Moines, Iowa(Quality of Life/City to Watch)

There are many nice cities, but Des Moines stands out. The moderate climate and Midwestern charm make it a great city to live in. The business climate continues to improve, making this gateway to the Plains a perfect place for any concern looking to bridge the distance between Chicago and the East and the energy of the Upper Plains states.

 

San Diego, California(NAFTA/USMCA/Skilled Workforce)

The largest city on the Mexico border, San Diego is the perfect place to do business with its southern neighbor and the nations farther south. Its climate and abundant activities attract more and more skilled workers every year. Easy access to the whole state of California, with 13 percent of the total U.S. population, makes San Diego a great place for business.

 

Bellevue, Washington(Quality of Life/Cities to Watch)

Green and lush like it’s big sister, Seattle, Bellevue is an ideal place to live. Sitting between two lakes, Lake Washington and Lake Sammamish, it’s a wonderful place for outdoor activities, still in the warm zone created by the Puget Sound. Microsoft, Amazon, Starbucks and all the other amazing businesses of Washington state are just a stone’s throw away. This is a city that is making room for the next wave of Washington innovation.

 

Buffalo, New York(NAFTA/USMCA/Skilled Workforce)

Buffalo sits on the very western edge of New York and at the leading edge of New England’s boom. Right on the Great Lakes and the heart of an East Coast Silicon Valley, Buffalo has more skilled workers per capita than most of the rest of the country. Many of these workers hail from New York state colleges and universities. The state’s incentive commitments are forging powerful partnerships with business.

 

LISTS BY CATEGORY

Rather than clog up the lists below with the repeat winners, we’ve pulled those cities out so we can highlight the great cities that win in their respective categories.

While each category has up to 10 winners, they are presented in no particular order as each offers its own assets, such as location, that make it unique for a business’ needs.

 

Top Export Cities

These are cities that make it easy to bring goods in and send goods out. Many have deep-water ports, or like El Paso have import/export assets that are outstanding.

-Houston, TX
-Los Angeles, CA
-New Orleans, LA

 

Top Financial Hubs

Banks, investment firms and stock brokers flock together to allow them to share information and often, because the city’s data capabilities are high enough to prevent a slowdown of information from around the world. Another significant reason to choose a city is its proximity to a growing industry that needs financial services.

-Richmond, Virginia
-Lincoln, Nebraska

 

Most Advanced Ports

The level of automation and quality of the dockside equipment in a port can hugely influence how quickly products are offloaded or put onto a ship. The ports on this list lead the nation in innovation, reliability and speed.

-Port of Long Beach, Port of Los Angeles
-Port of Savannah, Georgia
-Port of Virginia (Norfolk), VA
-Port Houston
-Port of Oakland Oakland, California
-Port of Charleston (South Carolina)

 

Intermodal Access

The ability to move from ship to train to truck to plane or any combination can mean the difference between shipments in days or weeks. The cities on this list provide the fastest and most intermodal access for shipments into or out of the United States. Some are located inland and allow for transport to the central part of the country. Others are coastal and act as the jump-off points to waters surrounding the country.

-Kansas City, Missouri
-Indianapolis, Indiana
-Columbus, Ohio
-Atlanta, GA
-Portsmouth, Virginia
-Elizabeth, New Jersey
-Little Rock, Arkansas

 

Start or Relocate a Business

This is the list of cities that are the best in the country for starting or relocating a business. Low start-up costs, an excellent business environment and plenty of qualified staff make these cities the ideal places to create a new global trade empire.

-Oklahoma City
-Missoula, Montana
-Billings, Montana
-Raleigh, North Carolina
-Grand Rapids, Michigan

 

NAFTA/USMCA Access

The latest update to NAFTA, the USMCA appears to be a modernization of the now 25-year-old agreement. The cities on this list provide a home base for any business seeking to work with the most important U.S. trading partners, Canada and Mexico. Most are near the borders, providing the ease of access to the U.S., while being ideally placed for shipments into and out of the northern and southern neighbors.

-Albuquerque, New Mexico
-Corpus Christi, Texas
-Fort Lauderdale, Florida
-Laredo, Texas
-Peoria, Illinois

 

Quality of Life

Business is important, but everyone needs to live some place that they love. This list represents the nicest places to live in the country. Where living is good, business is also excellent. Although not a strictly business category, the list compiles cities to consider if you need a great staff. Being someplace that people want to live makes it easier to attract great workers.

-Colorado Springs, Colorado
-Madison, Wisconsin
-Denver
-Huntsville, Alabama
-Portland, Oregon
-Las Cruces, New Mexico

 

Best Business Incentives

Incentives for businesses are thought of as being cash or tax credits, but many cities here offer many more diverse choices. Among them: free land or buildings, free education for staff, and many other attractive incentives.

-Omaha, Nebraska
-Salt Lake City
-Boca Raton, Florida
-Cleveland, IN

 

Skilled Workforce

Every business needs a great staff. In this era of near full employment, finding the right qualified staff can be a challenge. The cities on this list have a disproportionate number of educated laborers. For companies seeking a place to be that will give them the world’s greatest employees, these are places to be.

-Boston
-Washington, D.C.
-Milwaukee

 

Leading Southern Ports

The South is in the midst of a decade or more long boom. The area from Florida to Louisiana has some of the world’s greatest ports, providing a gateway to a powerful economic engine. These ports vary in size and volume, but all of them represent some of the best places in the world to move products into and out of the United States.

-Port Miami
-Port Everglades (Florida)
-Port Tampa (Florida)
-Port New Orleans
-Port Canaveral (Florida)
-Port South Louisiana
-Jacksonville Port Authority (Florida)

 

Small Markets (<100,000 population)

These small cities make a big imprint. Large cities are expensive and crowded, while these are small enough to be inexpensive, easy to move around in, and easy to be “a big fish in a small pond.” Look to these cities to be offered the respect you deserve.

-St. George, Utah
-Wilson, North Dakota
-Denton, Texas
-Bozeman, Montana
-Burlington, Vermont
-Ft. Myers, Florida
-Enid, Oklahoma
-Holland, Michigan

 

Cities to Watch

These are cities that deserve attention for their economic climate and the efforts that the leadership and the great citizens are putting in to make their cities great places in which to live and do business.

-Kenosha, Wisconsin
-Dumas, Texas
-Madison, Wisconsin
-Baltimore, Maryland
-Jersey City, New Jersey
-Fremont, California
-Odessa, Texas
-Birmingham, Alabama
-Reno, Nevada
-Irvine, California
-Marietta, Georgia
-Decatur, Illinois
-Little Rock, Arkansas
-Tulsa, Oklahoma
-Peoria, Arizona

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Intelligence Report

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Supply chain management (SCM) in 2018 is a term so widely used that it’s hard to imagine it’s only been in existence for roughly 35 years. The strategic coordination of processes and functions across a given company’s supply chain, the end goal of good SCM is exceptional value for the customer, all the while removing inefficiencies and bottlenecks along the way. Urban lore has it that the term first surfaced in the early 1980s when a consultant at Booz Allen Hamilton referenced the “management of supply chains, or supply chain management” in an interview with the Financial Times. SCM caught fire and the rest is history.

As with any fundamental, and fast developing business niche, firms need people specialized in that area to gain a competitive advantage. This is where the Master of Business Administration (MBA) in SCM comes into play. A typical MBA program will, of course, touch on SCM concepts, but SCM will be one of perhaps 10 or even 15 concepts within the overall degree. For generalists, an MBA is excellent. But if SCM is the focal point, an MBA in SCM is the intelligent route.

Putting together the pieces and making sure everything functions smoothly are SCM at its core. The MBA in SCM is for you if you enjoy organizing moving parts, managing people (often simultaneously locally and around the globe) and staying on top of global trends. The MBA in SCM provides core business foundations but with a singular focus on operations.

A common question is: What types of jobs are available for folks with an MBA in SCM? To start, such positions as inventory control manager, purchasing manager or vendor managed inventory coordinator are commonplace. These are mid to even upper level positions at some firms which often lead to top-level management positions down the line.

In the eCommerce world, SCM is taking new forms, an omnichannel approach that considers customer preferences digitally across a range of interaction points to meet their requests as efficiently as possible, no matter their location.

The MBA in Operations and SCM from Michigan State University is one of the premier choices for those seeking a higher degree in SCM. While it is hard to pin down which institution first began to offer SCM courses, Michigan State was the first to offer the SCM degree and continues to count on a world-class faculty base and pedagogy that is second to none. Manufacturing Design and Analysis, Integrated Logistics Systems, Total Quality Management and Service Supply Chains are just a handful of the classes incoming students have access to.

Another fantastic option is the MBA in SCM at Pennsylvania State University. To the chagrin of Michigan State, Gartner Inc. rated the MBA in SCM at Pennsylvania State No. 1 a couple years back, propelling this two-year program to the forefront. An interesting wrinkle with the Penn State program is during the last spring term students have the chance to travel abroad as part of the Global Immersion program to witness SCM and other business facets in play at leading firms everywhere from Turkey to China to Peru or India.

The hype around SCM is real and growing. A quick search of leading programs is a great first start, options are plentiful, and the future indeed bright.

Archives, Commentary, Global Trade Daily

Leveraging Visibility to Gain Control of Your Supply Chain

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As an increasing number of business and consumer products are now being sourced globally, supply-chain visibility management has become an undeniably vital tool for any business to have at their disposal. Knowing where your product is at any stop along the supply chain not only keeps you aware of potential roadblocks that could arise, but it also allows you to adapt and make changes to your supply chain in real-time to avoid those roadblocks.

With so much global competition vying for your customer’s dollar, the last thing your business wants to do is drop the ball over poor visibility – but how do you give customers an inside view when so many parties are involved in the supply chain? The answer – according to Steve Williamson, Director, Solution Consulting at BluJay Solutions – is leveraging that visibility with the use of mobile technology. BluJay is a provider of supply chain software and services including MobileSTAR, an app that works with both Android and iOS mobile devices to provide real-time tracking, proof of delivery and last-mile routing solutions.

“When you look at a global supply chain or placing orders, you want to know the ‘immediates,’” says Williamson. “You want to know all the things going on with your order, but when you’re manufacturing globally there’s no way to get that kind of visibility on your own. There are a lot of different systems and parties involved, and no one company is in control of it all. Providers like us are in the marketplace to bring all of those pieces together.”

But getting those pieces to fit together neatly is no small task. While BluJay offers a single technology platform with a constant flow of new features and solutions, many companies still manage supply chain execution with point solutions or manual processes.

“The challenge is, does one tool do it all? The quick answer is no. There’s no perfect recipe. Vendors are looking to pull all these technologies together and try to get the visibility from say, an RFID provider or get the visibility of an ocean container, and it’s that ‘try to get’ that is always challenging,” says Williamson.

And that challenge can be just as frustrating for end-consumers and business-to-business (B2B) customers, too.

“As a solution provider, we’re always looking at that – what would our customer’s customers experience be? Depending on what you’re moving within your supply chain, the importance of that could be tenfold – it could be that someone’s waiting on that part to do something else, so subsequently that little piece could be a domino that knocks down all the other dominoes in a bad way or in a good way.”

And that’s where apps like MobileSTAR really prove their worth. To be able to view where a shipment is at any stage in the supply chain – right from your mobile device – can really save the day for that ‘customer’s customer.’  Delayed shipments can be re-routed, or re-sourced, damaged shipments can be re-ordered, and if lost shipments cannot be found, your customer can easily notify their customer about potential delays – all from the information provided by one easy-to-use app. It’s not a perfect solution – but it’s pretty close.

“When you look at visibility, the question really comes down to ‘what kind of business are you?’ Are you a proactive business or a reactive business? Are you waiting for something to happen in your supply chain… or are you monitoring your supply chain and see a disruption and reacting to it?”

According to Williamson, the reactive provider – while still most-likely reacting appropriately to the problem – is inefficient. A proactive provider could have potentially stopped the problem earlier along in the supply chain and avoided a lot of subsequent problems along the way. Thankfully, mobile apps like BluJay’s MobileSTAR are designed to do the proactivity legwork for you. So even if you fall into the reactive category, you can be proactive with minimal effort, before the problem has a chance to get worse.

The solution, according to Williamson is called Control Tower. Control Tower monitoring allows your business to be able to “drive and react” to problems along the way by providing visibility and connectivity to supply chain partners, from origin to delivery. Information you once had to hunt down from multiple sources, and at a great cost to your time, is now streamlined and available from one platform that connects many participants.

“Solution providers like ourselves are really partners. And I think that’s the way that the supply chain will ultimately be solved. There will be strong partnerships with all the potential parties involved in a supply chain movement to be able to give the companies themselves – and then their end users – visibility.”

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New Logistics Study Highlights Decline of Outsourcing

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Los Angeles, CA – The relocation of manufacturing and product sourcing to emerging economies is no longer the gold standard for global businesses, according to a new study released by the Global Supply Chain Institute at the University of Tennessee – Knoxville (UT).

The rush to Asia in the past decade promised major cost reduction, but financial gains for many corporations have been short-lived.

The study delves into the downsides of outsourcing by putting the complexity and risk of the global environment into context.

Evidence from the research, compiled in Global Supply Chains, the fourth installment in the Game-Changing Trends in Supply Chain series of reports from the UT supply chain faculty, suggests that a more localized supply chain for many products may soon be making a comeback.

“Countless factors can harm performance when supply chains are stretched across the globe,” said Ted Stank, UT Bruce Chair of Excellence and one of the co-authors of the study. “The most successful companies evaluate the local variables before jumping into a global supply chain and design a dynamic network less vulnerable to the pitfalls of modern globalization.”

The report uses a framework of key national characteristics that appeared in Global Supply Chains: Evaluating Regions on an EPIC Framework, a book Stank co-authored with three other faculty from UT and the ESSEC Business School in Paris.

Ten companies, with industries ranging from materials refining to health care, were interviewed for the study. Real-world examples of their experiences are presented to demonstrate best practices in global supply chain network development.

Visibility “is the most pivotal and elusive element of a successful global supply chain network,” said Keith Sherry, general manager of supply chain for BT Global Services. “Our clients need reliable communication and an understanding of big data to make their businesses work.”

This practice, the report says, “promotes visibility between different areas of a corporation’s business, helping them more thoroughly evaluate indicators of risk within their supply chains.”

Streamlined global supply chains are still efficient for companies with complex technology and low logistical costs.

However, supply chain network design must change and adapt as the world changes. The report highlights communication and visibility across the entire supply chain as a consistent element in successful businesses.

The research suggests that supply chains throughout the world will eventually break into a series of “pods,” where regional procurement and manufacturing will supply the demand centers of the area with a significant percentage of its production needs.

12/05/2014

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

Port of Long Beach Clogged with Box Cargo

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Long Beach, CA – Cargo movement through the Port of Long Beach is being delayed from three to five days because of a surge in cargo volume and a “stressed and in some cases, flawed ”supply chain infrastructure, according to port Chief Executive Jon Slangerup.

Speaking at a recent town hall meeting at the Center for International Trade & Transportation at California State University – Long Beach, Slangerup said the flaws result from a failure of the supply chain “to work as an integrated system.”

Slangerup’s comments follow his recent formation of a Congestion Relief Team (CRT) “to meet daily, seek solutions, and solicit feedback from our staff in the field.”

The port, he said, “will do everything we can bring our partners who operate and work at the terminals together to identify bottlenecks and implement solutions.”

The first target of the CRT is the shortage of chassis at the port, a situation that Slangerup has called a “mismanaged mess.” Chassis are the frame trailers used to haul cargo containers.

“There is a chassis imbalance,” said Dr. Noel Hacegaba, the Port’s chief operating officer. “This is a big part of the congestion issue and I have been facilitating discussions with the key players to find relief as soon as possible.”

Cargo numbers rose sharply for the Port of Long Beach in September as the port recorded its heaviest traffic for that month since 2007, the port’s peak cargo volume year.

Nearly 630,000 containers moved through the port last month, a 7 percent increase over the same month last year.

Imports to Long Beach rose 10 percent as retailers brought in products for the holiday shopping season. More than 339,000 containers came into the port, making it the third-highest month for imports in the port’s history. Exports, however, fell 12 percent.

Over the first nine months of the year, container traffic at the Port of Long Beach is up 1.7 percent.

Cargo numbers climbed in September largely due to the importation of products for the upcoming holiday shopping season and the increased container capacity of the newer generation of containerships calling at the port.

10/23/2014

3pls, Archives, Global Logistics, Global Site Selection, Global Trade Daily, News, Site Selection, Warehousing

Prologis Acquires Warehouse Properties in Poland, Hungary

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San Francisco, CA – Industrial real estate leasor Prologis Inc. has acquired two major logistics facilities in Poland and Hungary. The properties total more than one million square feet of warehouse space and are 100 percent leased.

The first is a 610,000 square foot warehouse in Gliwice, Poland. The facility is occupied by Tesco, a multinational grocery retailer and repeat customer. The property has immediate access to two trans-European road networks, enabling efficient transportation of goods.

The second is a 404,000 square foot building in Budapest, Hungary, occupied by global retailer, Auchan and is located near the city’s international airport, approximately 20 miles from the city center.

“These properties are excellent additions to our portfolios in Poland and Hungary,” said Ben Bannatyne, managing director, Prologis Central & Eastern Europe. “Both are in key locations along major commercial routes that are growing in importance due to an increase in intra-regional trade in Central and Eastern Europe.”

As of March 31, the company owns and manages approximately 152 million square feet of logistics and distribution space in Europe.

ProLogis leases modern distribution facilities to more than 4,700 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises in 21 countries in the Americas, Europe and Asia.

07/21/2014

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

Deadline Looms for US West Coast Port Contract

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Los Angeles, CA – As the possibility of a crippling work stoppage at 30 US West Coast ports looms on the horizon, a study just released by the National Association of Manufacturers (NAM) and the National Retail Federation (NRF) outlines what impact such an event would have on the US economy.

Closed-door negotiations have been underway for more than a month between the Pacific Maritime Association, which represents terminal operators, and the International Longshoremen & Warehouse Union to craft a contract that would frame the work of more than 14,000 dock workers at container load centers from Puget Sound to San Diego.

The current contract expires at 5:00 pm, July 1. If no contract has been agreed to by the deadline, both the PMA, which represents the terminal operators, and the ILWU could agree to extend the existing agreement into August, but there is no guarantee as past contract negotiations between the two groups have historically been contentious.

According to the joint NAM-NRF study, “a prolonged strike between the negotiating parties could lead to reduced or shuttered terminal operations for an extended period. If such disruptions occur, the economic impact would be significant and widespread” and the repercussions “would grow with time.”

A 5-day stoppage, the study said, would reduce the country’s GDP $1.9 billion a day, disrupt 73,000 jobs, and cost the average household $81 in purchasing power, while a 10-day stoppage would cut GDP by $2.1 billion a day, impact 169,000 jobs; and cost the average household $170 in purchasing power.

A port closure of 20 days would slash GDP by $2.5 billion a day; affect 450,000 jobs; and cut the average household’s purchasing power by $366, the study said.

“Understanding the Consequences”

“It is important for the parties at the table as well as others to fully understand the economic consequences of a port disruption,” said NRF President and CEO Matthew Shay. “Any supply chain disruption, whether it’s a port slowdown or outright stoppage, would cripple international trade, stymie supply chains and hurt domestic employment and consumer spending.”

For retailers and their customers, a port closure, “would mean a delay in back-to-school and holiday shipments that could significantly drive up consumer prices,” Shay said.

Manufacturers, said NAM President and CEO Jay Timmons said, “depend on the ability of West Coast ports to efficiently move cargo valued at 12.5 percent of US GDP. A shutdown would erode that figure and inflict long-term damage to our competitiveness as manufacturers and as a nation. The parties must come to an agreement before the current contract expires.”

In 2002, negotiations between the PMA and the ILWU failed with the resulting 11-day port shutdown imposing such havoc on the national economy that then-President George W. Bush had to invoke the Taft-Hartley Act to order both parties back to work.

A research report published at the time by the University of California at Berkeley estimated that total cost of shutting down the West Coast ports was about $2 billion a day in lost business and tax revenue from sales and wages. The strike also created a backlog of cargo that took weeks to alleviate.

Traditionally ILWU-PMA contracts cover three years. But after the 2002 lockout, a six-year contract was instituted as a way of ensuring labor stability for a longer time.

The six-year duration was renewed again in 2008 as the economy was struggling and stability was again a priority. In the current negotiations, the three-year term is again back on the table.

06/26/2014