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Understanding Saudi Arabia’s New Import Certification Scheme

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Understanding Saudi Arabia’s New Import Certification Scheme

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Global businesses exporting to the Kingdom of Saudi Arabia will soon have some relief from the burdensome export documentation required by the country’s customs agency, and will soon be able to lean more on their import partners to acquire and complete mandatory certificates. 

Saudi Arabia is in the process of implementing changes to the decades-old process for certifying consumer goods imported into the country.

The Saudi Standards, Metrology and Quality Organization (SASO) oversees the system for the development of standards applicable within Saudi Arabia. All imported consumer goods must be accompanied by a Certificate of Conformity establishing compliance with SASO standards and specifications, or the consignment is subjected to laboratory testing to verify conformity with SASO standards before clearing customs at import.

This means that businesses intending to export goods to Saudi Arabia must obtain a Certificate of Conformity for each shipment bound for Saudi Arabia. The certificates are usually issued by bodies accredited by SASO or an accredited laboratory. Accreditation bodies certified by members of the International Accreditation Forum (IAF) are also eligible to issue conformity certificates.

Most exporters to Saudi Arabia as well as traders in Saudi Arabia have long lived with the pain of the time-consuming process of obtaining a certificate of conformity for each shipment bound for Saudi Arabia. Once goods were ready for export, and invoices raised, exporters had to engage the services of an approved body to obtain a certificate of conformity before the shipment could leave for Saudi Arabia. This requirement, when combined with the requirements of attestation and legalisation of invoices and certificates of origin, led to a situation where considerable levels of inventory were being held immobile within the supply chain even after goods were ready for shipping with resulting undesirable increases to business in working capital requirements. Businesses have not shied away from referring to these process bottle necks as non-tariff barriers to trade.

The system is now bound for changes, albeit of an incremental nature.

SALEEM, the new certification scheme is expected to replace the Saudi Conformity Assessment program. It will operate through SASO’s newly implemented electronic, online service called SABER which has been created to streamline certification for imports into Saudi Arabia.

The scheme provides two types of certification. The first type is a certificate of conformity called the Product Certificate of Conformity (Product CoC). This certificate will be issued by registered certification bodies upon successful completion of tests and verifications of a product and will be valid for three years. The certificate confirms that a product complies with the technical standards and specifications issued by SASO.

The second type of certificate of conformity is called the Shipment Certificate of Conformity (Shipment CoC). This will be issued for each shipment, is valid only for that shipment, and is very much like the current certification scheme. This certificate confirms that all products within a shipment hold a valid Product Certificate of Conformity. Both the Product CoC and the Shipment CoC are mandatory before a shipment can be cleared for import into Saudi Arabia.

The main difference between the certification systems is that the certification required prior to import can be obtained online by the importer based inside the country. Importers will be connected through the SABER system to conformity assessment bodies and will be able to request and obtain Product CoCs through the system. 

Once shipments are ready for export, importers can use the system to request and obtain Shipment CoCs online from certifying bodies. It is expected that Shipment CoCs will be issued within a very short time for products that hold a Product CoC. Online availability of Product and Shipment CoCs is therefore expected to shorten the time lines required for import clearance.

Although it was announced that conformity certification through the SABER system would be mandatory for the import of all consumer products after its introduction in January 2019, news reports suggest implementation has only been partially successful. Use of the system for obtaining conformity certificates is currently voluntary for most products, and conformity certificates under the old regime continue to be issued and used for import into Saudi Arabia. 

Only a few product groups such as gas appliances and accessories, toys, low-voltage electrical equipment, and lubricating oils currently require mandatory certification through SABER. 

Authorities are encouraging the use of the system by prioritizing the clearance of those imports holding conformity certificates issued through the SABER system. There have also been reports of linking the SABER system to FASAH, an Electronic Data Interchange (EDI) System that will be used to exchange data electronically between Saudi Customs, ports, airports and private and public operators. Such a linkage can further enhance the efficiency of processing of imports into Saudi Arabia.

Businesses are hopeful that although it has been a slow start for the SALEEM certification scheme and the SABER system, a full implementation will eventually reduce the timelines required to import goods into Saudi Arabia, and consequently, the working capital requirements for businesses trading with, and within Saudi Arabia.  

 

JC Pachakkil is a senior consultant in Global Trade Management at customs broker and trade services firm Livingston International.

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European Frozen Fruit Market Posted Sixth Consecutive Year of Growth and Reached $5.3B in 2018

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

The revenue of the frozen fruit market in the European Union amounted to $5.3B in 2018, increasing by 2.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price).

The market value increased at an average annual rate of +3.0% from 2007 to 2018; the trend pattern indicated some noticeable fluctuations being recorded over the period under review. The growth pace was the most rapid in 2010, with an increase of 10% y-o-y. Over the period under review, the frozen fruit market attained its maximum level in 2018, and is expected to retain its growth in the immediate term.

Production in the EU

In 2018, approx. 1.3M tonnes of frozen fruits were produced in the European Union; lowering by -2.8% against the previous year.

Exports in the EU

In 2018, frozen fruit exports in the European Union amounted to 783K tonnes, declining by -4.1% against the previous year. The total export volume increased at an average annual rate of +1.1% from 2007 to 2018; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. In value terms, frozen fruit exports stood at $1.6B (IndexBox estimates) in 2018.

Exports by Country

Poland represented the major exporting country with an export of around 272K tonnes, which resulted at 35% of total exports. The Netherlands (117K tonnes) occupied the second position in the ranking, followed by Belgium (73K tonnes), Spain (65K tonnes) and Germany (48K tonnes). All these countries together occupied near 39% share of total exports. Italy (32K tonnes), Greece (29K tonnes), France (20K tonnes), Sweden (17K tonnes), Bulgaria (15K tonnes) and the UK (12K tonnes) took a relatively small share of total exports.

Poland experienced a relatively flat trend pattern of frozen fruits exports. At the same time, the Netherlands (+4.3%), Bulgaria (+4.2%), Spain (+4.1%), the UK (+3.6%), Germany (+3.6%), Italy (+2.9%), Sweden (+2.6%) and France (+1.8%) displayed positive paces of growth. Moreover, the Netherlands emerged as the fastest growing exporter in the European Union, with a CAGR of +4.3% from 2007-2018. Belgium and Greece experienced a relatively flat trend pattern. From 2007 to 2018, the share of Germany, Spain and the Netherlands decreased by -1.9%, -3% and -5.5% percentage points, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Poland ($489M) remains the largest frozen fruit supplier in the European Union, comprising 31% of total frozen fruit exports. The second position in the ranking was occupied by the Netherlands ($226M), with a 14% share of total exports. It was followed by Belgium, with a 9.8% share.

Export Prices by Country

In 2018, the frozen fruit export price in the European Union amounted to $2,009 per tonne, growing by 6.7% against the previous year. Over the period under review, the frozen fruit export price continues to indicate a relatively flat trend pattern.

There were significant differences in the average export prices amongst the major exporting countries. In 2018, the country with the highest export price was Sweden ($2,908 per tonne), while Greece ($1,588 per tonne) was amongst the lowest. From 2007 to 2018, the most notable rate of growth in terms of export prices was attained by Spain, while the other leaders experienced more modest paces of growth.

Imports in the EU

In 2018, approx. 1.2M tonnes of frozen fruits were imported in the European Union; remaining relatively unchanged against the previous year. The total import volume increased at an average annual rate of +1.3% from 2007 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being recorded over the period under review. In value terms, frozen fruit imports amounted to $2.4B (IndexBox estimates) in 2018.

Imports by Country

In 2018, Germany (323K tonnes), distantly followed by France (183K tonnes), the Netherlands (122K tonnes), Belgium (119K tonnes), Poland (98K tonnes) and the UK (79K tonnes) were the key importers of frozen fruits, together constituting 77% of total imports. The following importers – Italy (47K tonnes), Austria (46K tonnes), Sweden (37K tonnes), the Czech Republic (23K tonnes), Denmark (20K tonnes) and Lithuania (18K tonnes) – together made up 16% of total imports. From 2007 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by the Czech Republic, while the other leaders experienced more modest paces of growth.

In value terms, the largest frozen fruit importing markets in the European Union were Germany ($566M), France ($382M) and Belgium ($233M), with a combined 49% share of total imports. The Netherlands, Poland, the UK, Austria, Italy, Sweden, Denmark, the Czech Republic and Lithuania lagged somewhat behind, together accounting for a further 42%.

Import Prices by Country

In 2018, the frozen fruit import price in the European Union amounted to $1,984 per tonne, jumping by 6.2% against the previous year. Over the period under review, the frozen fruit import price continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2011, an increase of 23% y-o-y. Over the period under review, the import prices for frozen fruits reached their maximum at $2,218 per tonne in 2008; however, from 2009 to 2018, import prices failed to regain their momentum.

Import prices varied noticeably by the country of destination; the country with the highest import price was Sweden ($2,638 per tonne), while Germany ($1,752 per tonne) was amongst the lowest. From 2007 to 2018, the most notable rate of growth in terms of import prices was attained by the Netherlands, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

Archives, Global Trade Daily, News

How Drones Could Transform Biopharmaceutical Supply Chain Innovation

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Drones have made the news once again. This time, to aid in swift and reliable delivery of life-saving temperature-controlled medications required in emergency situations. A collaboration between Direct Relief, Merck (MSD outside the U.S. and Canada), Softbox, AT&T and Volans-i is pushing the boundaries and capabilities of UAVs- also known as drones, and confirmed a successful fourth pilot proof-of-concept mission was conducted in the Bahamas last week.

“This successful pilot demonstrates the potential of innovative UAV technology to aid in delivery of temperature-dependent medicines and vaccines to people who critically need them,” said Craig Kennedy, senior vice president, Supply Chain, at Merck. “The potential of UAV technology is just one of the many areas in which we are innovating across our business and our supply chain to maximize our ability to save and improve lives around the world.”

As the partners focus on biopharmaceutical supply chain innovation and strengthening humanitarian efforts,  concerns on how to  overcome challenges in global regulations are considered in order to solidify official application in various global markets. Previous test flights were conducted in Switzerland and Puerto Rico.

“Experience and research consistently show that those most at risk of health crisis in disasters live in communities which are likely to be cut off from essential health care due to disruption of transportation and communications,” said Andrew Schroeder, who, among other responsibilities, leads analytics programs, data visualization, and geospatial analytics for Direct Relief.

“Drone delivery is one of the most promising answers to this problem. More remains to be done to operationalize medical cargo drones in emergencies. But successful tests like this one demonstrate that remarkable new humanitarian capabilities are emerging quickly.”

Real-time data analysis and collection in conjunction with fully autonomous controlling enabled test flight success. Additionally, the cold-chain technology ensured temperatures as low as -70 degrees Celsius were maintained, all while providing accurate temperature tracking and reporting.

Photo credit: Direct Relief

“Our goal is to revolutionize the way goods and people move in the world,” said Hannan Parvizian, CEO and Co-Founder of Volans-i, in San Francisco. “Successfully demonstrating our ability to make temperature-controlled drone deliveries in various climate and terrain conditions across these pilots is a first step towards realizing our vision for a world in which no one should be deprived of access to life-saving medical supplies and vaccination due to lack of infrastructure and responsiveness of the transportation ecosystem.”

“This most recent proof-of-concept test has once again demonstrated the capabilities of the Softbox SKYPOD for the transportation of life saving medicines, this time at ultra-low temperatures,” added Richard Wood, Director, Digital Connected Technologies at Softbox. “To ensure full track and trace throughout the test flight Softbox utilized Internet of Things (IoT) technologies and data dashboard services provided by AT&T. The data collected during the successful flights has shown everybody involved the power of IoT to provide full visibility of the Cold Chain, even in the most extreme environments while using innovative transportation modes.”

“Through close collaboration with Direct Relief, Merck, Volans-I and AT&T, we have successfully proven the capabilities of this unique and ground-breaking combination of cutting-edge technologies and now will focus our efforts on completing subsequent pilot projects,” Wood concluded.

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IN-HOUSE VS. 3PL: WHAT TO CONSIDER

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Otherwise known as a third-party logistics provider, a 3PL is utilized by a range of businesses to support logistics and supply-chain management specifically as it applies to distribution and fulfillment services. Pre-1970s transportation contracts were comprised of the shipper (the giant retailers, wholesalers and manufacturers) and the shipping carrier. This all changed however with the introduction of an increased number of “sellers” to the market. These sellers didn’t count on logistics as part of their core competencies, and that produced what economists refer to as a “gap” (in the market). The 3PL jumped in to occupy said gap and the rest is history.

Major legislation passed in 2008 legally held 3PLs as responsible for the inventory they receive/hold/transport as the actual owner said inventory. Roughly 86 percent of Fortune 500 companies and nearly all (96 percent to be exact) of Fortune 100 companies use 3PLs today. 

Despite the high uptake of 3PLs, like most industries there are detractors when it comes to outsourcing order fulfillment. Some of the pros listed for keeping things in-house are:

-You understand your business at a level no third party could.

-Issues are easier to resolve.

-Change and/or minute-by-minute adjustments are more flexible and manageable.

Along the same lines, there are experiences with 3PLs that have left sour tastes because:

-Once a relationship is established and a contract signed with a 3PL, it can be difficult to exit.

-Relinquished control can be complex when it comes to deliveries and client relations.

-It can be difficult to communicate with external drivers/shippers or similar transport personnel in the field.

Of the above, the last point, communication with field personnel, is the principal sticking point. If order fulfillment is linked closely with 3PL transportation personnel, which in most cases it is, having a clear understanding of supervisory roles and what to do in the event of delays or poor communication is vital. Notwithstanding for the most part, the pros to working with a 3PL in a smart and effective manner far outweigh the cons.

For example, concentrating order fulfillment and similar tasks in-house takes up a tremendous amount of resources, which equates to more work and a larger staff. Many relationships, with the carriers most notably, are characterized by a disproportionate number of problems due to the complexity of the job, and it is also equally difficult to know if the rates one is paying in-house are truly competitive with what a 3PL can provide.

A 3PL can compare and select the most competitive rates due to a very wide supply of carriers. They, of course, have lower overhead costs and less staff overall is needed. Then there is perhaps the most compelling argument in 2019 for a 3PL relationship: the latest technology is always up-to-date.

With regards to order fulfillment, a 3PL provides an array of functions, but two areas stand out:

Warehousing

Many 3PLs maintain extensive warehousing facilities and especially when confronting the decision to invest and open a warehouse in a foreign company, a 3PL might make better sense. Granted, one does lose a bit of control not being able to oversee warehouse management processes, but it is likely that a 3PL with warehouse management experience in said foreign country would encounter fewer costly surprises than a new company in a given territory.

At a warehouse level most 3PLs run a warehouse management system (WMS). There is no “one size fits all” solution here as a WMS can be highly complex or as simplistic per firm needs. The value added with a WMS is shippers can access reports, track inventory and easily monitor progress. This is done remotely, of course, and most 3PLs that have an advanced WMS can seamlessly integrate it with enterprise accounting software or enterprise resource planning solutions.

Picking, Packing & Shipping

Once an order is placed or something needs to be retrieved or moved, picking, packing and shipping take place. This is where coordination meets timing meets client expectations. A wrong move will cost money and potentially a client’s contract. One of the more common mistakes that occur when trying to run a warehouse (in-house as opposed to using a 3PL) is if packing and shipping procedures are not clearly understood and/or if the company has little experience in this area, generating the appropriate labeling and being able to negotiate favorable rates with carriers such as UPS, USPS and DHL cannot be leveraged. An experienced 3PL in this instance is an invaluable resource to count on.   

Prior to transitioning into “things to consider” before choosing a 3PL, perhaps the best argument for their existence is technology related. A tech-enabled 3PL leverages the latest fulfillment software to streamline the flow of information, which saves time and automates nearly everything along the supply chain. Second, being able to split inventory across fulfillment centers via software integration and advanced analytics drives effective chains and reduces errors over the long term. No one firm can be an expert in everything and successful 3PLs invest in technology knowing that their clients simply do not have the time nor resources to do the same. They are rightly betting the 3PL will do that for them.

Things to Consider

Prior to embarking on a relationship with a 3PL in the order fulfillment arena, there are several issues that should be addressed:

-Can the 3PL commit to ongoing and irregular investments that will always be needed to keep up with augmenting capacity?

-Is it beneficial to commit to these investments on an ongoing basis?

-With seasonal drops or sales spikes, unplanned expenses generally come together: A good 3PL provider can manage these market fluctuations and protect businesses accordingly.

-Regarding handling, the amount of time spent handling special packing materials can be onerous: a 3PL provider can maintain consistency and decrease costs.

Specific Questions for the 3PL Provider

-How do you administer your accounts?

-Will I have access to your reporting data?

-Does the firm count on personnel with regulatory experience?

These issue areas and questions will help in the initial vetting process. Regardless of whether the firm chooses to stay in-house or contract a 3PL for order fulfillment duties, knowing what the other scenario that has not been selected will cost and look like is vital to any intelligent decision.

Archives, Global Trade Daily, Special Reports

How Innovation is Changing the Pace for Industry Players

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Westerville, Ohio-based DHL Supply Chain, a leader in contract logistics in the Americas and a part of the Bonn, Germany-based Deutsche Post DHL Group, issued a report that found 65 percent of responding companies believe technology is having a significant impact on their supply chain.
That begs the question: Who are the other 35 percent? Because keeping up with technology is critical for just about any business these days, but most especially for those that rely on supply chains, which are tasked with moving everything from retail products and industrial equipment to perishable foods and critical medicines.

Essentially, we are at a point in the 3PL industry where companies must decide whether they are going to continue being the equivalent of hotels, taxis and encyclopedias or Airbnb, Uber and Google. The future is not now, we are already blazing in the fast lane.

DHL was already leveraging emerging technologies at 85 of its 430 North American facilities in November, when the 3PL announced it was making another $300 million technology investment to create the next generation supply chain. The goal now is to have emerging technologies deployed in 350 of DHL’s North American facilities and transportation control towers.
These technologies are going to vary by customer needs, based on the outcomes of research and pilot programs completed by DHL’s internal innovation teams and collaboration with dozens of external innovators. But it is already being played out in the acceleration of robotics, augmented reality, robotics process automation, IoT and DHL’s proprietary end-to-end visibility solution MySupplyChain.

“This investment is about a holistic view of emerging technologies that enables our customers to achieve their growth and profitability goals,” said DHL Supply Chain North America CEO Scott Sureddin in the announcement. “Our customers’ needs are not homogenous as each business and segment has unique challenges and levels of maturity. Therefore, it is important that our customers can benefit from our experiences and expertise with a variety of emerging technologies.”

This summer, DHL’s 24,000-square-foot Americas Innovation Center is scheduled to open just outside Chicago, where technologies and innovations the business is already implementing across the region will be exhibited. And the 3PL began 2019 by implementing innovative processes to improve the hiring and retention of warehouse workers across its network. That rapidly paid off in the form of 445 daily applications and nearly 32,000 fewer hours spent on administrative hiring tasks.

“Our customers rely on us to provide talent that consistently meets their needs; and to accomplish that, we apply the same level of operational excellence to talent acquisition and retention as we do in developing supply chain solutions for our customers,” says Tim Sprosty, senior vice president of Human Resources at DHL Supply Chain. “Using a combination of innovative thinking and disciplined execution to attract and retain the people our business depends on is resulting in significant benefits.”
Profound (and rapid) change is indeed a result of innovation. What follows are just some of the developments you should be paying attention to lest you get left behind with the supply chain equivalents of stale mints under your pillows, sticky cab seats and out-of-date World Books.

DB Schenker and IAM Robotics’ Warehouse of the Future

Last fall brought the announcement that DB Schenker Americas, which is headquartered in Miami, Florida, and serves this side of the globe for Essen, Germany-based logistics solutions and supply-chain management giant DB Schenker, and IAM Robotics of Sewickley, Pennsylvania, are pooling together their respective expertise to develop the “warehouse of the future.”

DB Schenker Americas is utilizing IAM’s mobile, piece-picking robotic technology because, as the companies’ reps will tell you, the modern-day supply chain does a lot more than move products from one place to the next. Automation is key to meeting customer demands for flexibility, visibility, and transparency.

MHI, the nation’s largest material handling, logistics and supply chain association, as well as the presenter of the ProMat and MODEX expos, reports that 34 percent of companies are looking to robotics and automation to improve overall supply chain efficiencies by handling previously manual tasks such as picking, sorting, inspecting, storing, handling and classifying products. Within five years, MHI expects robotics and automation adoption to rise to 53 percent.

“This expected rise in adoption suggests that firms recognize robotics and automation as integral tools to maintain and increase competitive advantage through NextGen supply chains,” the MHI report states. “As automation becomes smarter, safer, and more accurate, it is also becoming less expensive and easier to implement—helping to drive adoption.”
Which brings us to the DB Schenker-IAM Robotics smart warehouse. “This is a true collaboration in the sense that DB Schenker knows the logistics industry inside and out, and IAM Robotics has an incredible depth of technological knowledge and innovation,” says John Stikes, DB Schenker America’s director of Innovation and e-commerce. “By bringing these two powerful forces together, we can challenge one another and come up with solutions that literally take warehousing to the next level.”

A warehouse of the future or “smart factory” concept folds nicely into Industry 4.0, which is the current trend of using automation and data exchange (i.e., the Internet of Things, cloud computing, cognitive computing, etc.) in manufacturing technologies.

“In the warehouse, fully-automated applications will be the key to sustainability and competitiveness in the new marketplace,” Stikes says. “Through automation, companies can achieve compelling economic advantages while alleviating their labor issues, and then redeploy that labor to more thought-involved processes and gain enhanced flexibility in their operations.”

Schneider and Trucker Tools’ Load Track and Smart Capacity Software

Schneider generated $4.4 billion in revenues in 2017 and is routinely named among the best third-party logistics companies in the United States. But success can bring headaches, and the Green Bay, Wisconsin-based company’s brain trust was chomping aspirins over the need to support its growing network of carriers and freight brokerage operations, which just happen to be among the nation’s largest.

What’s a mighty 3PL to do? Look to another third party, which is what Schneider’s Transportation Management division did when it latched onto Trucker Tools. Specifically, Schneider adopted the Reston, Virginia-based company’s load tracking, carrier engagement, capacity visibility and predictive freight-matching software.

“We are growing our capabilities with Trucker Tools to deliver a better experience for carriers and easier access to the high-quality loads they expect from Schneider,” beams Erin Van Zeeland, Schneider’s senior vice president and general manager of Logistics Services.

As Schneider moves loads and interacts with thousands of carriers daily that include small trucking fleets and owner-operators in North America, the 3PL is incorporating Load Track and Smart Capacity, two of Trucker Tools’ principal, cloud-based software applications. “With Load Track, our carriers have an easy-to-use platform for delivering quality information on the progress and status of loads in transit as well as visibility to available loads,” says Van Zeeland. “This allows us to more efficiently connect the right loads with the right carriers while enhancing the visibility shippers want.”

Meanwhile, the Smart Capacity platform provides brokers with predictive freight-matching tools and real-time, trusted visibility into when and where trucks are available. Schneider is also leveraging Trucker Tools’ mobile driver app, which can be accessed by the expanding network of small carriers and micro-operators. Indeed, Van Zeeland concedes the app was “a big selling point” because of its popularity with small and micro-carriers, who appreciate having at their fingertips “a variety of useful driver-centric tools, information and resources.”

The mobile app, which has been downloaded by more than 500,000 truck drivers, allows the Load Track feature to use a smartphone’s GPS software to continually update and deliver precise location data, which is sent from the driver’s device to the broker over Trucker Tools’ confidential, secure network.

BNSF Logistics and Blume Global’s Digital Supply Chain Platform

BNSF Logistics, a multi-modal, 3PL services provider specializing in the movement of freight around the globe, obviously figures even bigger is even better. So to fuel a major worldwide expansion, the 3PL recently adopted Blume Global’s digital supply chain platform.

Pleasanton, California-based Blume Global, which was formerly known as REZ-1, is a high-growth company with a 24-year history of delivering innovation in the global supply chain ecosystem. Its digital supply chain solutions now help BNSF Logistics—a subsidiary of Burlington Northern Santa Fe, LLC, a Berkshire Hathaway company—optimize the intermodal transport services it offers to customers across the globe.

Specifically, Blume Global has tightly integrated BNSF Logistics’ distributed supply chain—collecting and analyzing data to optimize every touchpoint between the 3PL, its logistics providers and its customers. This data-driven approach includes powerful end-to-end global visibility for cargo and containers around the world, across every mode and provider, down to the last mile.

BNSF Logistics is also tapping into Blume’s vast global network of more than 4,200 motor carriers for its customers and using Blume Finance to streamline the entire freight audit and pay process across its network of suppliers.

“Blume Global is a critical digital supply chain platform that will allow us to deliver an exceptional logistics experience to our customers while driving aggressive global expansion goals,” says Dan Curtis, the BNSF Logistics president. “For our customers, Blume’s capabilities enhance our ability to manage our customers’ complex supply chains. This addition will help take us to the next level, arming us with critical real-time information and powerful, data-driven capabilities to measure and optimize our entire process while maximizing efficiency, as well as leveraging Blume’s comprehensive network of motor carriers.”

“BNSF Logistics has moved cargo across the country and around the world for years,” notes Blume Global’s CEO Pervinder Johar. “As they continue to extend their capabilities into new markets, geographies and modes, Blume Global is dedicated to helping BNSF Logistics deliver excellent, consistent logistics experiences for its customers. Blume’s capabilities will power BNSF Logistics’ data-driven approach to integrate, measure and ultimately optimize every interaction within its customers’ supply chains.”

Blume Global’s track record obviously stood out for BNSF Logistics (which does, after all, know a thing or three about tracks). Among Blume’s other happy clients are Union Pacific and Norfolk Southern Corp. Blume, which unveiled its name change from REZ-1 during last September’s IANA Intermodal Expo in Long Beach, announced in January that it is now being listed as a Representative Vendor in Gartner’s “Market Guide for Real-Time Visibility Providers.”

USPS and Tive Inc.’s Return-By-Mail Tracker

Tive Inc., a leading provider of in-transit supply chain tracking solutions, has partnered with the U.S. Postal Service on a return-by-mail tracker that enables seamless return logistics for shipments within the 50 states. The new capability significantly simplifies return logistics for manufacturers and shippers that rely on Tive’s tracker and software solution to maintain end-to-end visibility into their in-transit goods, boasts the Cambridge, Massachusetts-based company.

“With our new return-by mail tracker, we have significantly accelerated tracker reuse and reduced the complexity of return logistics for our customers,” says Tive CEO and founder Krenar Komoni. “As Tive works with more and more companies to bring a new level of visibility to their supply chains, we are committed to making it as easy as possible for our customers to use our solution and integrate our trackers and software into their existing operations.”

Tive provides a sensor and software solution that allows supply chain managers to track and analyze the location and condition of their shipments in real time. The company’s proprietary low-power multi-sensor tracker uses cellular connectivity to provide real-time monitoring and analysis of the location, climate and integrity of shipments. Supply chain managers access this data and analysis through the Tive software platform, where they can set up custom alerts like ETA warnings, temperature deviations or geofences. They can also use the Tive API to pull data into external SCM, TMS or ERP systems and gather insights into their supply chain.

Tive’s newly developed return-by-mail tracker can be placed directly in any postal box in the U.S. without the need for any special labeling or packaging. This means that trackers can be placed with shipments going anywhere in the country, and the recipient can just collect the trackers and put them in any standard mailbox to get them back to Tive or the origin address. The tracker comes with a sturdy mailing sleeve that has been approved for use by the Postal Service.

Meanwhile, Tive is pursuing a similar service with international postal services that would enable companies to take advantage of global return logistics at limited additional cost.

Archives, Global Trade Daily, Special Reports

Streamlining Global Trade: How AI-Enabled Business Networks Can Make Your Business Smarter

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We hardly need reminding of the global challenges facing companies today, from increased competition from low cost foreign competitors, to tariffs and changing regulations. As if that weren’t challenging enough, there is the need to keep abreast of technology innovations such as digital business networks, artificial intelligence and blockchain, that are giving startups the opportunity to leapfrog more traditional and mature companies. Within this landscape, companies need to transact with more and more companies, using different systems and often in different time and regulatory zones, which increases the complexity of doing business exponentially.
So, how do you address these issues while modernizing and continuing your business?

Digital Transformation or Consumer-Driven Transformation?

Fundamentally, conducting business is about supplying to the demand of the end consumer. Businesses that win are the ones that create demand with innovative products; or, better serve existing demand. Regardless of the approach, successful companies also understand that they need to be sensitive and responsive to customers’ needs and the market.

Technology serves a vital role as the means by which businesses register demand, plan, forecast, make, move and sell products and services. Technology can make or break a company’s ability to react to changing consumer demand, market shifts, and supply constraints. It can also limit a company’s ability to fully exploit the innovative technologies that are constantly emerging.

For example, most companies are split into functional silos. This is partly corporate culture and partly technological, thanks to the typically inward-focused nature of enterprise systems. Whatever the causes, silos inhibit visibility, speed and agility. Steven Bowen, in his book Total Value Optimization, calls silos “one of the most pervasive and profound barriers to real competitive advantage in every company.” This problem is multiplied across the global business footprint and across the worldwide supply chain, with regions, countries and trading partners having their own systems and silos.

For optimal functioning, all departments need to align around the corporate strategy, and all trading partners around the same objectives, with the primary concern of serving the end customer as effectively as possible. After-all, it takes just one weak link to drag down the performance of the whole supply chain.

Networks Break Out of the Box

We can learn a lot from disruptive leaders in today’s world, as companies like Uber and AirBnB have each disrupted their respective industries because of their ability to sense and respond to consumer demand and match it to supply in real time.

For instance, Uber leverages a multiparty network where all drivers and riders connect to a single platform and drivers are routed to riders, automatically. What’s more, you use the same platform to summon your ride (or your stay in the case of AirBnB), make the contract and transact payment, and rate the other party. Both are “end-to-end” platforms that handle all aspects of the search, booking, payment and review processes. They make the whole process seamless and provide value for both buyer and seller.

The multiparty networks at the heart of these types of businesses, are creating huge efficiencies by eliminating delays and costs and connecting all parties in real-time with a single, authoritative version of the truth. No silos, no delays, no confusion; just a frictionless network for transacting with anyone, anywhere, anytime.

Intelligent Business Networks

The opportunities for business-to-business companies are even greater, because the buyer-seller-mover relationships are complex and multi-layered. There are many more silos, blindspots and delays in a global supply chain compared to a simple one-to-one relationship of rider to driver as in Uber, or guest to homeowner as in AirBnB.Thus, a multiparty network that connects all seamlessly in real-time, has a much bigger impact. Instead of a business partner waiting days or weeks for information to flow upstream, they get it instantly and can react immediately. If a customer’s promotion is selling more than expected, a supplier with visibility to sales can proactively plan for increased orders and ramp up its own supplies and production.

And it gets better. Advanced multiparty networks not only share data, provide real-time visibility, and enable business partners to collaborate as events happen, they also leverage technologies like artificial intelligence and machine learning to optimize and automate processes. “Intelligent agents” monitor conditions across the supply chain, things like sales data, inventory levels, orders, shipments and how they relate to critical milestones. They can predict sales and identify trends and anomalies.

Because all business partners are on the same network, intelligent agents are able to not only flag potential issues, but actually intervene to solve them. They are able to continuously reconcile sales data with projected inventory levels, shipments from ocean and domestic carriers, along with actual lead times, to predict supply and demand issues in advance and then execute proactive solutions to avoid them.

With the vast amounts of data flowing across the network, these systems are ideally suited to machine and deep learning, enabling them to identify patterns and correlations. This data can then be used to predict sales and cascade the order forecast back through the supply chain through distribution centers, manufacturers and suppliers. They continuously monitor the sales and inventory in near real time, and can foresee issues like pending stock out swell in advance. Intelligent agents can then resolve them by autonomously reallocating supply from DCs to stores, adjusting forecasts, creating new orders and helping manage logistics processes.

Better yet, the system monitors the outcomes of these autonomous actions and recommendations, and continuously “learns” and adapts to recommend and execute the most effective resolutions to similar problems in the future.

Data-Driven Agile Ecosystems

This is merely a glimpse into the nature of these emerging intelligent business networks, as they are evolving rapidly. Unlike traditional systems, they are able to harvest new and unstructured types of data, such as weather, traffic, social media chatter and more.
The volume of data in today’s supply chains is set to explode with the increasing use of sensors and live streaming data from containers, vehicles, handheld devices and industrial machinery.

While the sheer volume of data is overwhelming for human managers and for traditional systems, it is ideal for multiparty networks with machine learning algorithms and intelligent agents. They can learn from it and extract new insights that can drive better operations, higher service levels to customers and lower costs for all automatically, and often without the need for human intervention.
Multiparty networks are smarter, enable easy onboarding of trading partners (with a single connection) and provide pre-built solutions with PaaS tools that enable rapid tailoring and extension of functionality to suit changing business needs. Further, the multiparty network model makes it easy to consume both legacy data and leading-edge data from technologies like IoT, product authentication, 3D printing, and blockchain.

It is often said that intelligence is really the ability to adapt to change. Multiparty networks are built to be adaptable through and through. For instance, connections between trading partners are virtual and thus easily reconfigured should trading relationships change. The permissions controlling each trading partner’s rights over visibility and execution on each specific data object is configurable and can easily be turned on and off through a simple user interface. Old and new technologies can co-exist, with multiparty workflows coordinated across different systems and parties. Software developer kits make it easy to adapt existing network solutions or build entirely new ones on the platform.
The result is an extremely adaptable network platform, supporting an agile ecosystem of all trading partners centered on serving the customer at the highest service level at the lowest cost.

About the Author
Nigel Duckworth is a marketing strategist at One Network Enterprises, provider of a blockchain and AI-enabled network platform that enables all trading partners to transact in real time. To learn more, visit https://go.onenetwork.com/article-one or follow them at https://twitter.com/onenetwork

 

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CN Celebrates “Nation Builder Award” & 100th Anniversary

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Canada’s largest nonprofit supply chain association, SCMA, honored CN this week with the “Nation’s Builder Award” at the SCMA National Conference and Fellow Awards Gala at Le Sheraton Hotel in Montreal. The recognition serves as the first for the leading company, responsible for transporting more than C$250 billion worth of goods each year across its 20,000 route-miles throughout Canada and parts of America.

“The 100th anniversary of SCMA served as the catalyst for this award, but the selection of CN was guided by the company’s unrivaled legacy of economic and innovative contributions to building Canada’s supply chain infrastructure,” said Christian Buhagiar, President and CEO, SCMA. “As beautiful as our country is, the variety of terrains and population density pose unique challenges for the safe, secure movement and tracking of goods and raw materials. Without leading edge infrastructure, the integrity of Canada’s supply chains is compromised and Canada’s positioning in global trade is at risk. CN has and continues to provide the investments and leadership needed to ensure that Canada is recognized for having one of the safest supply chains in the world.”

“On behalf of all CN railroaders, I am honoured to have CN recognized with the SCMA’s Nation Builder Award,” said JJ Ruest, President and CEO, CN. “As with SCMA, this year marks our centennial, and while we are proud of the company’s heritage, our focus is on the future of the supply chain and how we can play an active role in moving Canada’s natural resources and our customers’ goods to market safely and efficiently. We are focusing on investing in infrastructure, technology and solutions to increase our role in Canadian supply chain and across our international markets.”

Source: CN

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The USMCA – Beyond Labor & Autos

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There’s been a tremendous amount of ink spilt as of late about the ongoing battle on Capitol Hill over the labor-enforcement provisions of the United States-Mexico-Canada Agreement (USMCA) and, more recently, about the degree to which the new Rules of Origin for autos will positively impact sector employment.

There is still no light at the end of the tunnel with respect to labor-enforcement impasse. While Mexico recently passed labor-reform legislation that will allow workers to vote on unions and their labor contracts through secret ballots, Democrats maintain the enforcement provisions within the USMCA are insufficient and are unlikely to create the conditions necessary to prevent the continued flight of American jobs south of the border. Republicans maintain the labor provisions are a cut above NAFTA and are America’s best chance of holding Mexican officials accountable (politically and financially).

Similarly, the White House maintains the automotive Rules of Origin, featuring significantly higher North American content requirements, will generate far more jobs the 28,000 highlighted by the U.S. International Trade Commission’s report released last month.

The result of the impasse is ongoing ambiguity over the fate of the beleaguered trade deal and, in turn, the fate of free trade in North America.

While there’s no question these are important considerations and that reconciling the impasse would serve to secure the longevity of the USMCA, there is significant danger in making these issues deal breakers.

There’s more to free trade than labor enforcement and auto-sector employment

The USMCA is about far more than updating or improving labor standards, or even refining Rules of Origin for North American automobiles. It’s is a wholesale modernization of a trade deal that has solidified North America’s position as the largest trading bloc in the world.

While impassioned pleas have been made by Republicans and Democrats, policymakers often fail to acknowledge the impact of the agreement and free trade in general across the broader U.S. economy.

The importance of free trade to America’s economy and industries presents an irrefutable argument for ratifying the USMCA and augmenting free trade in North America.

Canada and Mexico are among the top three export markets for 49 U.S. states, and either Canada or Mexico is the top trading partner for 39 U.S. states. Approximately two million American jobs are supported by manufacturing exports to Canada and Mexico alone.

Since NAFTA was enacted in 1993, U.S. services exports to Canada and Mexico have tripled from $27 billion to $91 billion. American farmers rely heavily on access to the Canadian and Mexican markets with one-third of U.S. agricultural exports going to their southern and northern neighbors.

Much of the prosperity generated by free trade in North America has directly benefitted small businesses in the U.S. which count Canada and Mexico as their top two export destinations.

Looking beyond labor provisions and automotive rules of origin

The aforementioned data should be reason enough to make the ratification of the USMCA a sure bet. And yet, the new deal has the potential to further expand trade across North America and provide real benefits to American businesses and workers.

The intellectual property protections will shield producers against counterfeit goods and spur activity in IP-intensive industries, which currently support 45.5 million jobs that generate 6.6 trillion in U.S. GDP, according the U.S. Chamber of Commerce.

The agreement also reduces red tape and puts forward fair and transparent regulatory procedures, further enabling America’s small businesses to engage in the import and export of goods.

And while the growth of e-commerce and digital products creates new challenges for international customs agencies and the World Customs Organization regarding the appropriate application of duties, the USMCA introduces new provisions for a digital economy that will help to secure cross-border data flows, prohibit customs duties on transmission of electronic products such as e-books, and see continental cybersecurity collaboration.

The USMCA streamlines customs procedures, harmonizes regulatory policies, promotes e-commerce, offers greater access to Canada’s dairy market and retains critical dispute-resolution provisions for country-to-country disputes.

Broadening Public Discourse of USMCA

Rarely are the benefits listed above mentioned in public discourse over the USMCA, which has become almost obsessively hinged to labor-enforcement provisions. This is not to suggest those provision aren’t important. Indeed, the very impetus behind renegotiating NAFTA was to level the playing field with respect to labor, particularly in the manufacturing sector.

Similarly, changes to the Rules of Origin for autos are important to consider. No other industry has seized on the benefits of NAFTA to create integrated, continental supply chains the way the automotive industry has. Changes to how these supply chains function will impact production and distribution models, as well as employment and consumption trends.

It’s critical to discuss these issues. But it’s equally important the many other wide-ranging reforms outlined in the USMCA aren’t lost or overshadowed by that discussion. Neglecting to consider these benefits would be a disservice not only to the many stakeholders and negotiators who fought hard to ensure their inclusion into the agreement, but to the millions of Americans who would stand to benefit from these inclusions. Given that these same Americans are the constituents of the men and women in Congress, failing to ratify the USMCA over any single provision would be a classic case of members of Congress cutting off their noses to spite their faces.

Candace Sider is vice president of Government and Regulatory Affairs North America at trade-services firm Livingston International. She is a frequent speaker and lecturer at industry and academic events and is an active member of numerous industry groups and associations.

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2019 Manhattan Momentum: 25 Years and Counting

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It’s the 25th anniversary of the annual supply chain-centered conference, Manhattan Momentum which boasts an agenda packed with insightful sessions led by some of the most important supply chain movers and shakers across a variety of sectors.

From May 20-23, Manhattan Momentum will draw in more than a thousand global senior supply chain, retail, omnichannel, logistics, press, industry analysts, and innovative partners to network and learn about the latest and greatest trends, innovations, and technologies changing the pace for the supply chain environment. This year’s event will take place at the JW Marriott, Phoenix Desert Ridge Resort and Spa in Phoenix, Arizona.

With a full agenda scheduled, a special Modern Robotics Enabling Flexible Automation session with IDC’s John Santagate will be held on May 22. Other keynote speakers include former NFL player Jon Dorenbos, ULTA Beauty Senior IT Manager Nancy Mclain, IBM’s Senior Offering Manager Jason Tavoularis, and many more leaders speaking on topics such as enterprise management, supply chain intelligence, and 2019 retail opportunities, to name a few.

To review the full agenda and registration information, please visit: manh-momentum.com

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Forbes Recognizes Hub Group in 2019 List of America’s Best Mid-Size Employers

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Leading supply chain solutions provider Hub Group has made the Forbes List of America’s Best Mid-Size Employers for the second time in a row, placing at number 18 out of 500 companies in the Transportation and Logistics category.

This list highlights companies that support a culture that makes employees feel secure, understood, needed and inspired. Hub Group placed number 22 overall in 2018.

An anonymous employment recommendation and satisfaction survey conducted on over 30,000 employees determines which companies make the final list. The consecutive recognition reiterates the company’s focus on employee wellness and growth through mentorship and career advancement training, and rewarding its top talent.

The company currently has 4,377 employees and is the only transportation and logistics company listed within the first 50 in the overall list. Landstar System and USA Truck are the only other companies that made it within the first 50 placements with the same category.

“We believe the employees of Hub Group are our most valuable asset. We are continuously evaluating and improving our strategy for employee engagement through training, professional development programs and internal growth. Our goal is to encourage a corporate culture that is collaborative, empowering and inclusive,” said David Yeager, Hub Group Chairman and Chief Executive Officer. “We are honored to be recognized by Forbes two years in a row.”