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Reducing emissions requires efficient supply chain solutions

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Archives, Global Logistics, Global Trade Daily, Special Reports, Trucking

Reducing emissions requires efficient supply chain solutions

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In November 2021, the United States Department of State and the United States Executive Office of the President released a new long-term strategy for reducing CO2 emissions. The report laid out the ambitious goal of achieving net-zero emissions no later than 2050, which will require significant change, adaptation, and transformation across almost every sector, and in particular the manufacturing and transport industries.

These ambitious targets build on last year’s summit, where the US pledged to reduce net greenhouse gas emissions by 50-52% in 2030, in line with the European Council’s requirements. According to experts around the world, these new, increased goals are essential when it comes to meeting objectives set for the middle of the 21st century.


 

Around the world, the food and beverage sector is responsible for about one third of all greenhouse gas emissions, largely due to their complex supply chains. Without taking significant action to address supply chain emissions, meeting emissions targets will be a challenge. Mitigation efforts will require a significant shift in the way supply chain issues are considered within the sector, particularly when it comes to agriculture and land use.

The largest direct source of greenhouse gas emissions, is the US transportation sector, having overtaken the power sector back in 2015. It is responsible for 29% of all US greenhouse gas emissions, according to an EPA report released in 2021. As part of the drive towards Net Zero, President Joe Biden signed an Executive Order on Strengthening American Leadership in Clean Cars and Trucks in December 2021. This set a target of 50% of cars and light trucks to be zero-emissions by 2030 and directed NHTSA to finalize emissions targets for medium- and heavy-duty vehicles by December 2022.

These strategies, targets, and directives are a clear indication that the US approach to CO2 emissions is hardening, and that decisions are being made that will have significant impacts on those responsible for supply chains.

However, reducing emissions is not solely linked to vehicles, and clean technologies and lower-emission cars and trucks cannot be the only solution, even in the transportation sector. A huge part of achieving these ambitious goals will come from significant improvement in efficiency throughout the entire logistics process, including, of course, the decisive areas of warehouse and transport management. Warehouse management solutions (WMS) and transport management solutions (TMS) have become key elements that not only improve general efficiency, but are also essential to creating a more effective and seamless supply chain process, optimizing transportation and, in turn, reducing emissions.

Warehouse management solutions

The warehouse is the heart of the entire logistics system, and its management has a direct impact on the rest of the links in the supply chain including, unsurprisingly, on transportation. An effective WMS not only guarantees more efficient use of physical warehouse space but also optimizes the movement of goods and materials inside the warehouse, ensuring cost savings and reduction of emissions right from the outset. But a WMS is not just about managing what goes on in the warehouse itself. It improves the organization of transportation and creates significant improvements in this area by synchronizing warehouse operations with arrivals and departures of carriers, transferring the newfound efficiency of the warehouse to transport, and onwards to the entire supply chain.

Transportation Management Solutions

Increased focus on emissions and environmental improvements reinforces the strategic value of TMS tools as well. According to analysis by Gartner and Supply Chain Digest, among others, TMS tools can offer immediate savings of anywhere between 15% (for the annual transport costs) and 30% (for personnel and management). Greater efficiency also undoubtedly has an effect on the reduction of emissions throughout the entire logistics chain. The two-pronged benefits of using technology to improve your supply chain operations is a decisive element for companies in the immediate future.

Transportation and Climate Initiative

Many leading companies looking to take proactive and practical steps towards decarbonization participate in the Transportation and Climate Initiative (TCI), a scheme similar to the European Lean & Green platform. The TCI is a regional collaboration of 13 Northeast and Mid-Atlantic states and the District of Columbia that seeks to improve transportation, develop the clean energy economy, and reduce carbon emissions from the transportation sector.

As with the Lean & Green initiative in Europe, many companies who operate under the jurisdiction of the TCI take advantage of Generix’s WMS and TMS solutions to achieve greater efficiencies in warehouse and transportation management; solutions without which it would be extremely difficult to reduce and ameliorate the energy costs of transport.

In short, logistics is in the process of a significant transformation to meet the demands of an increasingly demanding market, as well as to address environmental targets and requirements. There are a number of technological tools already standard in the world of logistics that have completely changed the productivity of the sector, and which will be essential to be able to take the next steps towards productivity, efficiency, and decarbonization.

For the manufacturing and transport industries, the path to Net Zero does not have to be a painful one. The tools and processes that are vital for reducing emissions also come with significant benefits and improvements for productivity and efficiency.

Supply chains are central to the fight against climate change. Decarbonization and emission reduction efforts also help improve sustainability, as well as making supply chains more resilient for the future.

If you want to reduce your carbon footprint through our solutions, contact us!

Generix Group North America provides a series of solutions within our Supply Chain Hub product suite to create efficiencies across an entire supply chain. Our solutions are in use around the world and our experience is second-to-none. We invite you to contact us to learn more.

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Archives, Global Trade Daily, International Trade

Expert Insight: Supply Chain Disruptions Through the Eyes of TITAN Professional Tools

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“Supply chain troubles.” “From bad [2020] to worse [2021].” It was a “perfect storm for our supply chain crisis.” These are just a few of the headlines I’ve seen in recent weeks looking back on 2021. While I think we’re all eager to turn the page and start anew, I fear many of the challenges we experienced last year will continue into 2022 – and perhaps beyond. If there’s one thing we learned last year, it’s that our supply chain is more fragile than many of us imagined.

Case in point, a recent estimate from the American Trucking Associations (ATA) reported that the truck driver shortage has risen to 80,000 – an all-time high for the industry. According to the ATA study, the driver shortage could surpass 160,000 by the end of the decade, noting that the industry will need to recruit nearly one million new drivers to replace those retiring or leaving the business. Not only did the outbreak of COVID-19 in early 2020 exacerbate the issue, but it also revealed gaps in every link of the supply chain and then amplified the impact of those collective weaknesses.


 

A recent Wall Street Journal article perfectly summarized the challenge:

Trucks haul more than 70% of domestic cargo shipments. Yet many fleets say they can’t hire enough drivers to meeting booming consumer demand as the U.S. economy emerges from the pandemic. The freight backup has intensified longstanding strains in the industry over hours, pay, working conditions and retention. The surge of goods has created logjams at loading docks and port terminals, gobbling up scarce trucking capacity and making drivers’ jobs even harder. Factories and warehouses are also short of staff to load and receive goods. Meanwhile, the broader labor shortage has left openings for other blue-collar jobs that compete with trucking, including in local delivery operations, construction and manufacturing.

To better understand the operational and logistical issues retailers, importers, wholesalers and other distribution organizations are facing due to the state of today’s supply chain, I recently spoke Nick Tsitis, vice president at TITAN Professional Tools. His account is eye-opening, to say the least, and can hopefully help those facing similar challenges.

Q:  How did the Suez Canal accident create operational and logistical issues for businesses like TITAN Professional Tools?

A:  No one talks about this anymore. Before conversations of current supply chain issues, however, our forwarders often referenced the incident. I believe it significantly contributed to and accelerated our current supply chain problems, including shortages of equipment and limited space on vessels and at our ports. There’s been a huge stress on the ports, making it difficult to even get containers off the ships. And when you do get them off the ships, they sit in these piles disorderly piles they’re calling “pig piles” now. Whatever’s on top becomes available first.  And if you’re on the bottom of that pig pile, your merchandise is stuck.

So, not only is it taking time to get containers off ships, but it’s also taking time to get them from the ground onto chassis. Once containers finally do make it to our facility, and we get them unloaded, you would think with such a shortage of equipment there would be an urgency to return containers, but they cannot be returned to the port. We recently discovered 12 containers being stored in our business park from someone that is not a tenant here.  Apparently, they ran out space in their complex, and decided to park the equipment at ours.

Q: How have issues like this impacted your operating costs?

A: In so many ways.  It used to cost $1,500 to get a container from Asia to Seattle. Now we’re paying as high as $18,000. We are often charged demurrage for containers that are off vessels but not delivered to us within a week.  There are surcharges being implemented on both sides as well (Asia and USA). It’s a huge burden on us. It also affects our cash conversion cycle as goods invoiced to us are stuck in transit, and we can’t invoice until we receive and ship to our customers.

Q: How are you dealing with dock scheduling and similar issues caused by all this unpredictability?

A: Once we can get the container and get an appointment, it hasn’t been too big of a problem. On occasion, the truck drivers will have to wait sometimes six to eight hours to pick up a container. We used to pay under $100 to get a container from Seattle to Kent. Now it’s almost $700 to move it seven miles. Local drayage is up, and we’re often having to pay the drivers by the hour to wait in line to ensure we get our merchandise.

Q: Are you also facing labor shortages in the warehouse that compound these issues?

A: I know others have but we haven’t realized that because we’re a small business and have a lot of family here that have been with the company for a long time.  We are fortunate and may be y the exception when it comes to labor. But, yes, when you look down the road and see Amazon hiring at $23.50 an hour with a $3,000 signing bonus, it can be hard to compete with that.  it has in the past.

Q: How close do you think we are to seeing an end to these disruptions?

A: Well, everything’s related in one way or another – if not directly, then indirectly – to these supply chain problems. Our lead time with several factories is now as high as 18 months, where it used to take 45 to 90 days to manufacture product and 14 days transit is now taking as many as 60 or 90 days transit. There are some factories, that if we placed an order now, we won’t see it for almost two years. That’s an extreme. Most factories now are taking 6 to 8 months. As a result, we’re buying out a year, which is really scary. So, yes, it’s going to take a long time to recover. I don’t think it’s going to get back to normal for at least another year.

Q:  Based on your experiences, what advice would you share with other businesses facing similar challenges?

A:  We often use the word “partnership” between vendors and customers. We are making it thru these challenging times because of the true partnerships we have on both sides, with our vendors, and our customers. Everyone is understanding, being more flexible and forgiving, and more willing to accommodate than before. Pardon the pun, but everyone is “in the same boat” on this.  We need to work together to get through it.

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Archives, Global Logistics, Global Trade Daily, Special Reports

Hiring Supply Chain Talent: What to Look for In the Perfect Candidate

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If your business is growing, maybe it is the right time to hire new talent. It also means facing the challenge of the dearth of supply chain talent and overcoming it. It is pretty common to find business growth these days with job titles evolving and shifting because of quick changes in supply chain management and the latest technology-oriented needs. With several businesses trying to remain competitive there is more demand for talent. Management of the ways you will use to seek the supply chain talent can make or break your organization. Here are some attributes you need to watch out for.

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Soft skills: Most recruiters normally have a list of around thirty job skills that they are looking out for while reviewing the candidates. It is pretty common for the supply chain industry. Soft skills are the top priority for producing more successful recruitment. Some of them include email marketing skills, fundamental business ethics, communication skills, and problem-solving skills. All of these may be identified via past job experience of the candidates, references, and the responses they provide to some key questions at the time of the job interview. When you are looking to hire globally you can take help from PEO services.

Inventory, finance, and supplier management experience: Watch out for earlier experience in financial, supplier, and inventory management together with direct knowledge. These are the important components of the skill sets required for a hire. If the candidate has financial management training in fields such as investing it is a massive advantage. Maybe this talent did not go through massive numbers every day in his earlier position. But there will be sufficient indications of whether the candidate has the requisite understanding of data utilization for making solid business decisions.

Education and area of interest: You need to look out for candidates that have certifications and university training. Some of the specific things you must look out for include participation in projects that involve a basic understanding of financial matters and problem-solving that is related to them. Sometimes even the way they handle personal finances could show something about their work skills. You need to look for talent that has enthusiasm, passion, and energy for the position he or she is applying for. For instance, they would have researched and displayed knowledge about an organization and how their skills could benefit this business.

Result-oriented track record: Ask the prospective candidates, not just about their earlier job responsibilities. Ask them to correctly quantify the results also. Try and find out people that will produce some examples of the projects they have accomplished with good results in their resumes. It should demonstrate that they had to work with supply chain departments, service providers, and suppliers. You also need to be flexible and open-minded while considering the top talent from other industries and fields. There are many candidates out there that are working in other professions. However, they have transferable skills that can make them the right candidate for your supply chain.

Hire female candidates: Women are under-represented in many industries and it’s imperative that we find ways to bring them into the fold. In order to remain competitive in the future of supply chain management, it is important that you consider hiring female talent for roles usually reserved for males. They can take on roles that men have traditionally held, but with some added perks- they’re better at relationship building and interpersonal skills which will be important for certain jobs. The best way to find a replacement for your position is by interviewing applicants who have the skills you need. This will allow you get more personal insight into their personality, knowledge of procedures, and ability-to-efficiently perform job duties than if they were applying without being interviewed first. You can also look at female workers’ resumes or career paths during mentorship programs that involved working closely with seasoned professionals in similar fields.

Conclusion

There are challenges involved in securing the supply chain talent at the moment, especially for filling out the necessary positions. it is a good idea to change your approach. You need to examine the staffing forecast, be aware of the specific needs and trends from historical data, and develop a talent management program. After doing all this, you need to take a closer look at the candidate pipeline that is capable of fulfilling the continuous hiring requirement. The organizations that perform well are the ones that consider the recruitment department as a value-added and strategic program.

Archives, Global Trade Daily, News

U.S. Canned Vegetable Imports to Surpass Previous Year’s Record of $1.5B

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

In Q1-Q3 2021, the U.S. imported 576K tonnes of canned vegetables worth $1.3B, which was 23% more in physical terms and 17% more in monetary terms than in 2020. Over the full 2021, U.S. imports are estimated to hit the previous year’s record of $1.5B. China, Canada and Peru remain the leading suppliers of canned vegetables to America.

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U.S. Canned Vegetable Imports by Country

Canned vegetable imports into the U.S. were estimated at 704K tonnes in 2020, increasing 14% against 2019 figures. In value terms, purchases amounted to $1.5B (IndexBox estimates).

China (165K tonnes) constituted the largest canned vegetable supplier to the U.S., accounting for 23% of total imports. Moreover, canned vegetable supplies from China exceeded the figures recorded by the second-largest supplier, Canada (82K tonnes), twofold. The third position in this ranking was occupied by Peru (73K tonnes), with a 10% share.

In value terms, Spain ($204M), China ($192M) and Canada ($183M) were the largest canned vegetable suppliers to the U.S., with a combined 37% share of total imports.

In 2020, the average canned vegetable import price amounted to $2,192 per tonne, declining by -4.9% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Greece ($4,441 per tonne), while the price for China ($1,162 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Thailand, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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China Has Doubled Exports of Sanitary Towel, Tampon and Diaper to $2.3B

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IndexBox has just published a new report: ‘China – Sanitary Towels, Tampons, Napkins And Napkin Liners For Babies – Market Analysis, Forecast, Size, Trends And Insights‘. Here is a summary of the report’s key findings.

China’s Exports of Sanitary Towels and Napkins

From 2013 to 2020, China doubled exports of sanitary towels, tampons, napkins and diapers to $2.3B. In physical terms, supplies from China rose from 325K tonnes to 726K tonnes during that period (IndexBox estimates).

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In 2020, the U.S. (148K tonnes), the Philippines (90K tonnes) and Australia (44K tonnes) were the main destinations of exports of sanitary towels, tampons, napkins and diapers for babies from China, with a combined 39% share of total supplies. These countries were followed by South Korea, Viet Nam, Russia, Japan, Hong Kong SAR, Venezuela, Chile, South Africa, Taiwan (Chinese) and Myanmar, which together accounted for a further 26%.

In value terms, the U.S. ($377M), the Philippines ($227M) and Australia ($123M) appeared to be the largest markets for sanitary towels, tampons, napkins and diapers exported from China worldwide, with a combined 32% share of total supplies. These countries were followed by Viet Nam, South Korea, Russia, Venezuela, Hong Kong SAR, Chile, Japan, Myanmar, South Africa and Taiwan (Chinese), which together accounted for a further 30%.

In 2020, Venezuela (+67.3% per year) saw the highest growth rate of the value of exports, while shipments for the other leaders experienced more modest paces of growth. In 2020, the average export price for sanitary towels, tampons, napkins and diapers for babies amounted to $3,122 per tonne, remaining relatively unchanged against the previous year. There were significant differences in the average prices for the major overseas markets. In 2020, the country with the highest price was Venezuela ($5,012 per tonne), while the average price for exports to the Philippines ($2,529 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to Venezuela, while the prices for the other major destinations experienced a decline.

Source: IndexBox Platform

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Archives, Global Logistics, Ocean Ports

DRY BULK PROFITS SURGE TO MULTI-YEAR HIGHS DESPITE PANDEMIC-RELATED DEMAND AND DISRUPTIONS

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Heading into the 2021 holiday shopping season (a.k.a. the strongest part of the year), dry bulk owners could already celebrate a very profitable year with the temporary factors helping the market stay strong expected to continue providing support in 2022.

DEMAND DRIVERS AND FREIGHT RATES

The dry bulk shipping industry continued in late 2021 to enjoy a bumper year, with average earnings continuing to outshine any profits made in the past couple of years. As is often the case, Capesizes (the largest dry bulk ships) are taking the spotlight, with recent earnings peaking above $50,000 per day. A much more consistent and stable increase is recorded for Handysize and Supramax ships. These saw average earnings rise to $33,087 and $36,832 per day on Sept. 3, 2021. On the same day, a Panamax ship could expect to earn $32,445 per day.


 

Time charter rates underline the current strength of the market, with charterers currently paying double, if not 2.5 times as much, at the end of August compared with the start of 2021. A one-year time charter on a Capesize ship at the start of the year would have brought owners $16,500 per day. By Aug. 27, the figure was $32,750. Supramax ships have recorded the largest increase, with one-year time charter rates rising by 179.3% since the start of the year to $29,500 per day.

The high freight rates can be partially attributed to the restrictions and problems at ports due to the pandemic, which are tying up ships for longer than usual. On Sept. 1, 2021, 674 dry bulk ships had been waiting in China for two days or more. On the same day in pre-pandemic 2019, only 287 dry bulk ships had been waiting this long (source: Oceanbolt).

As an example of what this means for an individual trade, Oceanbolt data for ships sailing from Port Hedland, Western Australia, to Qingdao, China, shows that the average time for the journey (including waiting time at the load and discharge ports) has risen by 22.7%. In July 2021, it took an average of 33.5 days, while in July 2019 it could be completed in 27.3 days.

As well as congested ports, the recent pick-up in Brazilian iron ore cargoes to China has helped lift the Capesize market. In August, 21 iron ore cargoes were offered on the spot market, compared to 11 in July and the highest weekly number of cargoes since April (source: Commodore). During the first seven months of the year, Brazil exported 198.8m tons of iron ore, a 10.8% increase from 2020 and up 1.0% from 2019. However, it remains 15.0m tons lower than the record-high exports of 213.7m tons that were recorded in the first seven months of 2018.

China has received 65% of Brazilian iron ore exports during the year to date (through September 2021), with volumes on this trade growing by 6.2% over this period. Here, volumes of iron ore have grown compared to 2018, as China has taken a larger share of the total. This is clearly good news for dry bulk demand; the larger the share heading to China, the higher the ton mile due to the long distance.

There has also been strong growth in grain exports from the world’s largest exporters. Grain exports from the biggest exporters grew by 6.3% to a record 162.0m tons in the first six months of 2021. The driver of this growth was the U.S., which has seen its grain exports rise by 39.3%, jumping from 51.3m tons in the first half of 2020 to 71.5m tons. In contrast, exports from Brazil and Argentina have declined. Brazilian exports are down by 0.3% to 61.5m tons, while those from Argentina have fallen by 26.3% to 29.0m tons.

American coarse grains exports have seen the highest growth, up 19.2m tons (+67.1%) in the first seven months of 2021 compared to the same period in 2020. These additional volumes are the equivalent of an extra 257 Panamax loads (75,000 tons). Just behind in terms of volume growth are U.S. soy bean exports, which had a strong off-season, with exports in the first six months of 2021 amounting to 17.8m tons, a 7.8% increase from last year.

The new U.S. marketing year began in September, and exports of soy beans will have once more increased. Compared to the start of the 2020/2021 marketing year, outstanding sales are much lower, currently standing at 17.8m tons, compared with 29.4m tons on Sept. 1, 2020. While more sales will soon be added to the current level of outstanding sales, it is unlikely that volumes in the 2021/2022 season that is now under way will reach the 60.3m tons of soy beans that were exported in the 2020/2021 season.

FLEET NEWS

Around three-quarters of the dry bulk deliveries expected for 2021 arrived, adding 26.7m DWT of capacity and bringing the total fleet to 934m DWT. BIMCO expected the fleet to grow to 940m DWT over the subsequent months, result in fleet growth of 3% for the calendar year.

Of the 26.7m DWT delivered so far this year, half came from the 61 new Capesize ships, of which 51 have a capacity of 180,000 DWT or more, with 10 of these exceeding 300,000 DWT.

At the other end of the lifecycle, only 4.8m DWT of capacity has been demolished. BIMCO expected demolition by the end of 2021 to reach around 7m DWT, less than half of what was removed from the market in 2020, as the earnings potential for ships has incentivized owners to keep their ships sailing. This once again proves that the strength of the freight markets has a much greater influence on demolition than steel prices.

The summer months saw the dry bulk orderbook grow by 67 ships, as 5.7m DWT was ordered in June through August. All but one will be delivered in 2023 and 2024. The orders include 2.3m and 2.5m DWT of Capesize and Panamax ships, respectively.

Including all orders, the orderbook currently stands at 53.9m DWT, a significant decrease from 71.6m DWT in August 2020 and 97.8m DWT in August 2019, as ships have been delivered faster than new ones are being ordered.

OUTLOOK


In what was seasonally the strongest part of the year for dry bulk—fall/winter—the market looked promising, and operators had already been recording solid profits for the year.

While countries enforce quarantine and testing requirements, and ports face sudden disruptions due to local and regional outbreaks, the congestion that is draining the market of capacity will continue to support earnings in the dry bulk market. The market is expected to stay strong into 2022 until the factors that are currently beneficial to the market such as congestion and pandemic related delays, spill-over from the red-hot container market, stimulus driven demand and strong growth in the manufacturing sector become less so.

In the longer term, however, the underlying volumes may be less supportive. After strong growth in the first half of 2021, the Chinese government seems keen to clamp down on the steel and other heavy industries to limit emissions. One big question is how strictly these measures will be enforced and whether they will start to constrain economic growth. The two largest dry bulk goods imported by China in terms of volume, iron ore and coal, both fell year-on-year during the first seven months of 2021. Iron ore imports fell by 10.5m tons (-1.5%) and coal imports were down by 30.4m tons (-15.0%). Imports of both of these goods stood at a record high in 2020, and as government restrictions come into play, it seems increasingly unlikely that these levels of imports will be repeated.

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Peter Sand had been the chief shipping analyst for more than 10 years when Copenhagen, Denmark-based BIMCO, which is one of the largest international shipping associations for shipowners, published this report in September. That same month, Xeneta announced that Mr. Sand had joined the Oslo, Norway-based market analysis company.

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Archives, Global Logistics, Global Trade Daily

The emergence of logistics platform

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Since the start of the pandemic in early 2020, the logistics supply chain industry began to experience difficulties. Due to the air traveler restrictions in most countries, air transport was the first to reduce their normal scheduled flights which disrupt air transport shipments. Then, ocean transport experienced its own set of problems; vessels had to berth longer out of the ocean since ports were operating at half capacity because of the alternating work schedule of its workers. Problems worsened with an increased demand of containers capacity by Asian manufacturers due to an explosive demand by e-commerce. As a result, ocean liners were not quick enough to return empty containers back to Asia, which created a supply chain backlog and a price increase to the industry.

The International Trans-Pacific Ocean freight charges significantly increased over the last two years. For example, the cost of moving shipment from South East Asia regions cost $3,000 USD/container to the US. It gradually increased every other month and reached $11,000 USD/container by December of 2020, an increase of more than 300% in over a year. The cost reached $16,000 to (US-West Cost) and $19,000 to (US-East Coast) in main ports by December 2021. An inland transport to the final destination, for example, Atlanta, costs $26,000/container. Imagine, a container that has 1,000 items from Asia to the US with a transport cost of $3.00 had become $26.00/ item. It is why inflation has been unusually high.


 

The logistics company (transporter) has been operating an offline business method for decades. Operating business in an offline environment makes operation and administration slow, expensive and non-transparent. Quotations given by transporters listed too many itemized charges, making it difficult for shippers to analyze. Charges at origin and destination varies among transporters. Shippers who want to get five quotations must make inquiries to five different local transporters, requiring about 2-3 days for one quotation to be delivered. Companies using an offline business method lack efficiency and are far behind those who have adapted to technology. We are now living in an online world where platform news, social communication and shopping is done in an instant, and businesses should use a technology platform to its advantage.

Shippers who participate in Logistics Platform would be able to analyze available transporters at Origin and at Destination. Logistics service information is properly displayed and all questions can be answered directly by transporters with the chat feature in the platform. With just a few clicks, shippers will be able to confirm shipments to transporters with transparent detailed services: pricing, schedules, document requirements at origin and at destination. Once the shipment is accepted by transporters, work-order and reminder note are issued by the platform to alert everyone involved. A shipper that paid $26,000 from Jakarta to Atlanta in an offline environment, would only pay $22,500/container in platform business model.

Internet technology is an important factor in our daily lives. The relationship between transporters and their shippers is now more interactive with direct communication. A platform with its embedded algorithm into digitalization would speed up and minimize transporter manual operation and paper administration. The status of delivery in Bangkok can be instantly viewed by the Shipper in Amsterdam. The identity of the truck and driver is available for shippers in Tokyo to track before shipment is released. Digital Proof of delivery in Los Angles is transmitted to the transporter in San Francisco to speed up invoicing and confirmation of acceptance by Shipper. Warehouse space becomes easily searchable with the selection of available warehouse operators where the platform operates. Decision-making is faster with less human involvement and operation becomes simpler.

We are now able to do almost everything using our smartphone, and it has become our identity and trusted 24/7 companion. Any individual with a smartphone can create products and sell online from every corner in the world. There are now more individuals who have joined Global Digital Market as either Buyer or Seller, driving the demand of logistics services. A platform that fits into the Business-Consumer trend will open up new channels and bridge the transition from traditional systems would attract many followers. The integration of the Logistics Industry with Internet Technology will be beneficial for all parties involved. With no barriers, shippers in Jakarta able to make a seamless transaction to select transporter at Jakarta and at Atlanta via smartphone or computer in just a few clicks. Companies that fail to catch up with Digitalization and Automation will lose out their Development Growth to connect the Online World, which demands direct interaction, competitive pricing and consolidated services.

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Archives, Global Logistics, Global Trade Daily, Special Reports

Helping the World is Good for Business

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There aren’t many times in any industry when going the extra mile to do the right thing is actually really good for business too. But it does happen.

Skeptical? You’re not alone. After two years of juggling, pivoting, problem solving, reimagining and then doing it again – all of which have drained energies and operational budgets – any transportation logistics executive in charge of budgeting, could be forgiven for taking a hard line on non-essential expenditures.

Proactively protecting the environment? That’s a must-do for every industry, but it’s low on a priority list that has been exclusively focused on finding and retaining carrier capacity and keeping the flow of goods moving across the country and around the world.


 

As we all continually re-examine ways to cut costs and realize even greater operational efficiencies, improving environmental protocols – and reducing C02 emissions specifically – presents a rare win-win dynamic in which operations leaders can preemptively align around incoming regulations, optimize network efficiencies and reduce C02, an increasingly problematic contributor to greenhouse gasses (GHG’s) and overall environmental impact. If all of that sounds a little like having your cake and eating it, you’re not wrong. Let’s dig in, get some broader perspective and take a closer look at the issues and strategic steps to lowering emissions and raising profits.

The Global Perspective: efforts to reduce emissions

Protecting the environment seemed more an extreme activist position a few decades ago but it’s rightly now a global perspective – and with good reason. The Paris Accord – an agreement by countries around the world to reach net zero carbon emissions by 2050 – mandates a target of no more than a 1.5 degree Celsius change in global temperature beyond pre-industrial levels. According to Stanford University, as of March 2021, 64 countries signed the agreement but the race is on. While pandemic lockdowns and other confinement measures cut global emissions by 2.6 billion tons of CO2, about seven percent below pre 2019 levels, experts say that level of control cannot be maintained and the world is on track to increase global temperature by 3-5 degrees Celsius by the end of the century: a world-changing problem.

The good news is that change is being affected at the global, national, corporate and individual levels. Or at least initiatives are in place to fast track new behaviors. At the international level, 27 countries have implemented a carbon tax, imposing fees on industries for carbon emissions in an effort to incentivize a switch to improved practices and both green technologies and power sources. Pro-tax countries include Argentina, Canada, Chile, China, Colombia, Denmark, the European Union (27 countries), Japan, Kazakhstan, Korea, Mexico, New Zealand, Norway, Singapore, South Africa, Sweden, the United Kingdom, and Ukraine. Others considering joining include Brazil, Brunei, Indonesia, Pakistan, Russia, Serbia, Thailand, Turkey, and Vietnam. In addition, 64 carbon pricing initiatives are currently in force across the globe on various regional, national, and subnational levels, with three more scheduled for implementation, according to The World Bank. Together, these initiatives have been estimated to cover 21.5% of the global greenhouse gas emissions in 2021.

A gradual shift to renewable energy worldwide is also underway with solar-generated power leading the way. While coal and gas still account for around 60% of the world’s energy, renewable forms of energy production are growing fast. According to Earth.org, worldwide solar power production has grown 25% year-on-year with overall renewable energy now accounting for 29% of the global power supply and the first countries, like Iceland, being close to 100% renewable-energy-powered. This pace of change will pick up, but it’s also going to require the major industries that generate large amounts of C02  – for example manufacturing and livestock-based meat production – as well as other private sector companies and every team within them – to affect change from the top down and bottom up. While the earth’s agriculture goliaths tackle damaging methane gas emissions (9.6% of all U.S. greenhouse gas emissions), a society-wide movement is beginning, with the adoption of consumer and coming commercial electric vehicles, single use plastics, ride sharing and plant-based food production.

The C-Suite Perspective: targeting the supply chain and improving visibility

While all of that is tremendously encouraging and needed, corporate America and its global counterparts are being asked to do more. Forbes reports leaders now recognize the need for their companies and organizations to drive more proactive environmental change through C02-limiting practices across the organization but particularly in relation to the supply chain. According to the Environmental Protection Agency (EPA), company supply chains now account for a staggering 90% of an organization’s greenhouse gas (GHG) emissions.

While changes to other emissions-reducing strategies, including business travel practices, electric vehicles and renewable energy use, all help corporations lower their carbon footprint, tackling supply chain emissions from manufacturing to the transportation, handling and management of goods is the single greatest impact generator for many businesses. Kevin Sneader, global managing partner, McKinsey & Company hits the nail squarely on the head about exactly what’s needed to affect this level of network-wide change:

“While there wasn’t much debate about the science [of necessary reduction of C02 emissions], executives and investors were concerned about the lack of reliable data on the efforts companies and society are making, not to mention their impact. Greater clarity is required in order to speed development of new standards to help markets act more efficiently and reward progress.”

The answer lies, as with many operational efficiencies initiatives, in clear access to data across your supply chain operation. How much C02 is being emitted at any given time? What are the major causes, modes or geographies and other contributing variables? Only by tracking this data, by embedding an enterprise-wide approach to ongoing C02 monitoring, can we build effective strategies to manage and reduce emissions and realize greater efficiencies at the same time. This is especially critical post global pandemic as many industries re-set and examine better practices to mitigate risk and manage challenges.

Creating Sustainability Practices in Transportation Logistics

When it comes to creating sustainable practices in logistics transportation, the great news is that the train has already left the station. Meaning shippers are already organically looking for better ways to improve execution and lower costs. And typically those changes – optimizing network and mode, carrier/LSP selection via advanced routing as well as packaging strategies to reduce dimensional weight and trim cost – will all contribute to emissions reduction. The challenge, of course, comes in how to measure any impact from these actions as part of an overall carbon reduction program.

How do we begin thinking about C02 monitoring and measurement? How do we acquire quantitative proof of progress or KPI’s that can demonstrate we’re delivering against our footprint- reduction goals? Measurement needs to include everything from the role warehouse management, packaging, product sourcing all play in emissions as well as, of course, the movement of inbound materials or inventory delivery and outbound transportation of goods across mode, region and geography.

Tracking CO2: Supporting a Broader Sustainability Initiative

As we set about to review sustainable practices within an operation, it’s a good idea to adopt a broader view of sustainability. Yes, transportation will be a major driver of C02 emissions and require monitoring, but let’s review other contributing factors too. Do your carriers across your network practice emissions-reduction strategies? Things like load consolidation, which will typically lower cost per unit weight, reduce your number of shipments, reduce fuel needs and lead to an overall reduction of C02. If they’re not using basic emissions-reduction practices or considering doing so, it may be time to find new carriers.

Unfortunately, there is no global standard to measure CO2 in relation to transportation logistics which makes comparison across the industry extremely difficult at present. In the United States, the EPA’s Smartway program is attempting to standardize CO2 coefficients but not all companies have adopted a single source of CO2, nor a common definition as it relates to transportation logistics. Until this happens, the best course of action is internal measurement: consistently monitoring and measuring across your operation and benchmarking emissions- reduction against your own goals and initiatives to affect them. Only by doing this and having the data-driven proof points can we set new goals as well as broader sustainability targets that can all be reported to customers, partners, investors and other stakeholders.

It’s All About Data: FAP’s Role in CO2 Measurement

Visibility is the key to delivering on your targets for sustainability and emission reduction, and that can only come from data collection, curation and analysis. Two fundamental components for measuring CO2 emissions in transportation logistics are weight and distance. How large and heavy are my goods? How far and by which means do they need to travel, what’s the fuel required and how efficient is consumption? A good quality Freight Audit and Payment (FAP) system tracks weight and lane, which can help calculate distance, plus additional variables, making it a foundational step and required tool for any CO2 measurement and reduction effort.

While there is no single source or method to deriving CO2 yet, distance, weight, and mode of transportation are all key fundamental elements that support the calculation of CO2 related to transportation logistics. The bottom line is that by combining these input values with CO2 coefficients, it’s possible to calculate the CO2 associated with any shipment, regardless of mode of transport and geographic region.

A natural place to begin is where carbon emissions reduction has a material impact (transportation logistics) and where transportation spend management data is available (historical record of shipping activity with specific distance, weight, mode of transport available).   Dashboards and trends along with KPIs for both cost to serve metrics (cost per unit, cost per shipment, cost per unit weight) and carbon emissions (CO2 by lane, by LSP) create awareness and can be used to establish baselines and alignment for both carbon reduction and transportation spend optimization. This same dashboard can be used by logistics, procurement, operations management, and executives to align on, and report, progress at all levels of the organization at any given time.

Getting the Most from Your KPI’s

According to Forrester, 59% of all companies worldwide now follow data-driven strategies and that number is growing as even small-to-medium sized organizations realize the benefits of data analysis. As you build your sustainability protocols and measurement practices to get the most from your KPI’s, two things are important.

Continuous Process Improvement

Set goals and use appropriate KPI’s and influencers (cost per unit of distance, CO2 per unit of distance) which will deliver ongoing process improvements: proper supplier and LSP management across your operation as well as more informed decision making for everything from mode of transportation and packaging choice all the way to corporation level decisions around emissions control strategies.

Optimized Strategies

Build carbon emission reduction strategies into your overall optimization strategies. They’re one and the same. Putting in place operational changes to improve efficiencies will reduce emissions. Setting emissions reduction goals will necessitate changes that improve efficiency. And consistent, standardized and high quality data is essential for both.

Do both of these things: continually drive improvement across every process and embrace data- driven decision making to optimize strategies, and you’ll put in place the steps and tools to not just lower C02 emissions, but related operational costs too.

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Steve Beda is executive vice president of customer solutions for Trax Technologies, the global leader in Transportation Spend Management solutions. Trax elevates traditional Freight Audit and Payment with a combination of industry leading cloud-based technology solutions and expert services to help enterprises with the world’s more complex supply chains better manage and control their global transportation costs and drive enterprise-wide efficiency and value. For more information, visit www.traxtech.com.  

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3pls, Archives, Global Logistics, Global Trade Daily

Third-Party Logistics Providers Need Data Analytics to Save Money

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Logistics data analytics can provide an invaluable competitive edge to third-party logistics (3PL) providers. 3PLs face a rapidly changing market. Supply chain disruptions and the rapid growth of e-commerce mean they must be ready to adapt if they want to continue providing high-quality services for their customers.

Data analytics allow 3PLs to uncover new insights to improve decision-making and provide cost savings.

How 3PLs Can Leverage Logistics Data Analytics

Today, businesses of all kinds have access to more information than ever — and a range of analytics tools that can extract deep insights from large data sets.

Almost any business can benefit from data analytics, but 3PLs are in a particularly good position to use these tools. These companies can secure a few significant advantages by using them.

1. Improved Risk Management

Modern 3PLs face various risks. The right data makes it easier to take a proactive risk management approach, making better decisions regarding carrier selection, freight tenders and the business partnerships the 3PL will establish.

Better data can also make it easier to identify potential risks and their potential impact. Identifying these threats can make a proactive risk management approach easier to implement and more effective — potentially providing significant cost savings.

Some 3PL tools even utilize advanced technology like AI to improve supply chain resilience and risk management. 3PLs can use them to uncover insights that less advanced analytics technology wouldn’t be able to find — securing a valuable competitive advantage.

2. Lower Transportation Costs

Data collected from the supply chain can make it easier to visualize and manage daily operations. 3PLs can use data dashboards and similar tools to centralize the information they gather and provide it in an easy-to-understand format for managers, supply chain specialists and key decision-makers.

3PL team members can then more easily track key KPIs — like cost per unit, order accuracy and processing time. Analytics tools will also help the 3PL identify relationships between business practices and these KPIs, making it easier to spot operational bottlenecks and inefficiencies.

3. Stronger 3PL-Client Relationships

Data from the supply chain and logistics operations can make it much easier to analyze and respond to changes in the global supply chain market. This information can also make 3PLs a better business partner to their clients. The right shipping and logistics analysis allows a 3PL’s associates to secure a valuable competitive advantage.

One recent study of the 3PL market found that interest in robotics and data analytics is rising fast among shippers. More 3PLs are adopting data analytics technology, and these tools may become critical for strong client relationships. Clients may look elsewhere if a business can’t offer a tool its competition can.

Data Analytics Can Provide Major Cost Savings

Many of the advantages data analytics provide can help 3PLs save time and money. Managing risk reduces the chance that an unforeseen hazard will cost a 3PL significant resources.

Lower transportation costs can reduce one of the biggest expenses for a 3PL — and allow the company to pass cost savings on transportation to its clients.

Better relationships with clients can provide steadier business for a 3PL, potentially decreasing costs associated with marketing and client relationship management.

3PL Data Analytics in Practice

Various 3PL data analytics approaches exist. These data analytics strategies offer benefits throughout an organization by providing workers with better information that can streamline operations or be passed onto business partners and clients.

Supply Chain Visibility and Transparency

Low supply chain visibility can make accurate predictions about availability, shipping times and processing speed much more difficult.

New data-collection and organization tools allow 3PLs to develop a much deeper understanding of how products are moving through the supply chain and how effectively current shipping partners are managing their operations.

Supply chain management tools may also lay the foundation for IoT-powered tracking and transparency. The right Internet of Things (IoT) tracking devices will let 3PLs monitor goods continuously as they move through the supply chain. These devices can provide information about a shipment’s current location, speed and shipping conditions.

This information can make it easier to track goods and predict shipping speed or delivery timing.

IoT supply chain monitoring may be especially valuable for 3PLs that offer cold chain management services. The same IoT device can track a shipment’s current location and temperature. It can immediately alert drivers and managers of an excursion, allowing them to respond quickly to prevent product spoilage.

Data-Driven Resource Planning

Enterprise resource planning (ERP) is an essential investment for any 3PL. It makes it much easier for managers to effectively understand and react to the business’s current resource planning needs.

Resource planning tools — along with software like warehouse management systems (WMS) and contact management systems (CMS) — can make managing essential business resources much easier.

These systems can also automate many administrative processes, like the generation of customer reports, helping to streamline client communication and business management.

KPI Dashboards and Data Visualizations

New data analytics tools allow 3PLs to centralize and organize information by using data dashboards. For example, KPI dashboards can provide managers and executives with a snapshot of current operations, performance and overall business health.

Strategic inventory dashboards can offer a real-time view of how inventory moves through the supply chain, making it easier to identify possible process issues.

Most logistics data analytics tools marketed to 3PLs offer a great deal of customization, so these tools can be adapted to fit the organization’s needs. They can provide information on different KPIs, prioritizing certain types of data and generating customized reports for clients, business partners or regulators as needed.

Using Logistics Data Analytics to Save Money in a Changing Market

The right analytics tools allow 3PLs to streamline their operations, save money and build stronger client relationships. Data dashboards, supply chain visibility tools, and systems like ERPs or WMSs can make it much easier to manage essential processes, automate work and make more informed decisions.

Early adopters of data analytics will secure a competitive advantage over other 3PLs, making them a more valuable investment for their clients.

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Rising regulatory approvals to drive bioglass fiber market expansion in Europe

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Over the recent years, an extensive array of bioglass benefits including good osteostimulativity, osteoconductivity, mechanical strength, and degradability have been instrumental in unlocking critical growth opportunities for bioglass fiber market players across the orthopedics application. Upon implantation into the body, these products effectively reinforce the bonding between hard and soft tissues, promote the formation of dense HA (hydroxyapatite) layer on the surface, and rapidly combine with bone tissue for inducing and accelerating the process of bone growth.

These properties of bioactive glass have propelled an increase in studies pertaining to BG application in numerous orthopedic areas comprising BG bone cement, BG nanoparticles, BG coating, BG nanofibers, drug and biological factor-load BG, BG scaffolds, injectable BG-based hydrogels/pastes, metal ion-loaded BG, and others. Similar initiatives are expected to augment bioglass fiber market size, which is anticipated to surpass USD 15.3 million by 2027, according to Global Market Insights Inc.

Here are a few key trends that are slated to stimulate the business landscape in the near future:

Rising demand for borate-based glass and glass ceramic products

While the market revenue from borate-based glass is estimated to exhibit a CAGR of 9% through the estimated period, the glass ceramic segment is expected to account for an appreciable valuation through 2027.

This growth can be attributed to the mounting adoption of glass ceramics in dental care products including corrosion inhibitors and filler materials. Optimum bone-grafting ability and good biocompatibility are additional factors expected to push product demand over the coming years.

Growing research activities pertaining to dental application

Numerous organizations are taking a keen interest in conducting research initiatives centered on the applicability of bioglass fiber in the field of dental care. One such study, published in May 2021, aimed at investigating the bioactivity and cytotoxicity of a novel nanocomposite containing nBGs (nanoparticles of bioactive glass) on human dental pulp stem cells (hDPSCs).

The research found that the use of nBG/BD not only enabled hDPSC proliferation and attachment but also escalated the expression of ALP in mineral-producing cells. The findings are slated to create opportunities for the deployment of nBG/BD in vital pulp therapies.

Europe bioglass fiber market: Increasing number of product approvals to drive business landscape in the region

The European region has recorded an upsurge in the approval of newly developed products by regulatory bodies across various countries. For instance, in May 2021, Prosidyan, Inc., secured two CE Marks for its FIBERGRAFT BG Morsels, FIBERGRAFT BG Putty GPS, and FIBERGRAFT BG Putty. Made from proprietary micro- and nano-sized bioactive glass fibers, the FIBERGRAFT substitute provides numerous advantages such as optimized rates of resorption, high surface area, and direct connectivity.

Steps taken by leading industry players: A brief overview

Major companies in the bioglass fiber industry comprise Mo-Sci Corporation (The Heraeus Group), Vetra Biomaterials, Corbion Biotech, Inc., Prosidyan, Inc., ETS Wound Care LLC., and others. These participants are depicting a greater inclination towards the implementation of strategic initiatives including collaborative agreements, mergers, and acquisitions for consolidating their position in the market.

For instance, in September 2021, The Heraeus Group acquired ETS Technology Holdings LLC and Mo-Sci Corporation. The move strengthened the group’s healthcare and medical technology portfolio, which comprises market leadership in the supply of medical devices and components.

In a nutshell, the increasing product adoption across healthcare systems in developed countries, owing to multiple benefits such as voluntary funding, government schemes, and attractive medical insurances, is expected to bolster bioglass fiber market share through the forthcoming years.