Top Supply Chain Challenges

Research suggests supply chain issues will continue to affect supply chain operations through 2023. There was a shortage of over 80,000 truck drivers in the United States in 2021, and that number could reach 160,000 by 2030. This scarcity is having a strong effect on retailers.

Similarly, a lack of warehouse space prevents retailers from meeting consumers’ expectations. Warehouses are already overflowing; there is no more available space to fill. The only solution to rising consumer demand seems to be acquiring new warehouses, which is expensive. Real estate prices have skyrocketed due to competition from other industries for the land and building supplies needed.

Furthermore, since the pandemic began, online shopping has trended upward. Consumers expect more items from retailers, and they expect them promptly. However, this stretch on the supply chain will likely reduce retailers’ abilities to keep up with customer expectations. All of this presents you with problems in the coming year.

How to Stay on Top of Today’s Biggest Supply Chain Challenges

Short-Term:

• Leverage near-term trends and patterns.

Given the constant upheavals of recent years, accurate, effective demand planning has become a top priority for businesses worldwide. With proper supply chain planning, you can sense demand for the near term, taking into account real-time market fluctuations. This helps you accurately plan and forecast demand, keep your expectations realistic, and ensure the right amount of product is available in the right place and at the right time.

• Refresh your products.

Over- and under-ordering, producing, stocking, and spending have led to the unimaginable wastage of material, free cash flow, and sustainability in businesses across the world for decades. By identifying a roadmap of top-priority products based on sales and margins, you can quickly rectify and effectively accelerate your bottom line, thus driving a sustained market advantage. You can effectively save costs by leveraging optimized production, product mix, material movement, inventory management, and asset utilization.

Long-Term:

• Fine-tune your forecasting.

Of course, you can’t predict the future, but you can closely monitor your flagship products and track their prices, delivery times, and other factors. For example, if the price of a key product suddenly goes up, that could mean that a supplier is having trouble delivering. Determining when and why suppliers are struggling can be important for the early identification of disruptions in your supply chain. Don’t wait for critical products to stop showing up at your door or until prices soar sky-high.

• Look around you.

If a particular supplier is giving you trouble, can you switch suppliers? Maybe shift from an overseas manufacturer to one that’s closer to home? If you can’t source one manufacturing component, are there any alternatives you can look into? Taking variables like shipping time into account when considering your supply options may help you choose the best choice for your business. For example, transportation costs from Southeast Asian markets have been increasing over the last few years, but a supplier in Central America could be an affordable alternative.

5 Supply-Chain Strategies to Keep Your Business Relevant

1. Use accurate forecasting.

Correct forecasting can help you anticipate changes in customer demand so you can determine how much inventory you should have. Maintain close communication with your customers to understand their current needs and wants. Be willing to adjust your offerings as needed to keep up with changes in the marketplace. Meanwhile, keep a close eye on your competition and what they are doing to stay ahead of the curve.

2. Invest in artificial intelligence and other technology.

Implement artificial intelligence solutions and advanced analytics to make data-driven decisions. This can include tools that offer real-time insight into your inventory levels, orders, and supplier performance. Knowing this information can help you avoid the worst supply chain volatility.

3. Understand supply chain challenges and how they affect you.

Supply chain management is about more than just sourcing raw materials. It’s about understanding and optimizing all the processes in between. That’s why it’s important to utilize existing data, analytics, and modeling tools to analyze your supply chain operations and identify areas of risk and potential improvement opportunities. Look for ways to optimize processes, reduce waste, and improve efficiency across the board.

4. Reevaluate your inventory location.

Consider where your inventory is located. Does it make sense to move it closer to your customers? If not, think about other ways to optimize your supply chain and distribution processes to stay ahead of the curve.

5. Make contingency plans.

Always prepare for unexpected disruptions or crises by having plans to keep operations running even if something goes wrong. For example, how long can you hold out if you can’t move your product due to a disruption? Do you have a line of credit so you can secure a cash flow or get a short-term loan? How many customers can you afford to lose if you can’t sell a key product? Whether it’s dealing with natural disasters, labor strikes, regulatory issues, or any other problem that might arise, be prepared to take swift action to mitigate the impact on your bottom line and reputation.

Above all, stay focused on continuous improvement, whether that’s leveraging new technologies or finding creative solutions to today’s enormous challenges. The demanding supply chain landscape requires constant evolution and adaptation. Still, with careful planning and a willingness to take risks, you can ensure that your business remains competitive for years to come.

Author Bio

Anita Raj is a seasoned technology thought leader and product marketing expert for building impactful go-to-market strategies for targeted markets such as Europe, the U.K., and the U.S. She is the vice president of product marketing at ThroughPut Inc., responsible for the vision, strategy, and execution of go-to-market and product marketing initiatives, including value proposition, product launches, customer marketing, and product life cycle marketing.

The post How to Manage Your Supply Chain No Matter What Comes Next appeared first on Global Trade Magazine.

The emergence of the e-commerce industry and the expanding population with access to fast and reliable internet has unlocked significant market potential in e-commerce packaging. Additionally, due to growing environmental concerns surrounding the biodegradation of plastic materials, more companies are now prioritizing the development of 100% organic and reusable packaging solutions. The excitement and convenience of online shopping, where products can be delivered quickly and at competitive prices, further fuels the growth of the e-commerce packaging market. Furthermore, the growing demand for packaged food and beverages creates new opportunities within the sector. Other contributing factors include:

• The increased popularity of purchasing electronic goods online.
• The importance of sustainable packaging solutions.
• Evolving customer preferences.
• The ease of online shopping.
• The overall rise in internet and mobile device usage.

Regional Strategies for E-Commerce Packaging Success: Lessons from Leading Markets

The Asia-Pacific region emerged as a dominant force in the global e-commerce packaging market in 2020, accounting for over half (approximately 52%) of the market value. This share represents a significant increase from the previous five years, highlighting the remarkable strides made in e-commerce within major Asian markets like China, Japan, and South Korea. These countries, known for their robust economies and technological advancements, have established themselves as some of the world’s largest and most developed markets for e-commerce packaging. Online shopping has become deeply ingrained in the culture, contributing to the region’s dominance. 

Corrugated Boxes: Driving Profitability in the Global E-Commerce Packaging Industry

In the context of e-commerce, the efficiency and speed of the packing process are crucial for success. Online retailers often face the challenge of packing items of various sizes, requiring specialized packaging solutions that can be ordered in specific quantities and stored accordingly. Fanfold corrugated board offers an efficient and flexible solution by providing one type of packaging that can accommodate different products. Fanfold corrugated board is pre-scored, making it easy to manually fold and pack around items. It is also compatible with packaging machines and conveyor belts, allowing for streamlined and automated packing processes. The board is stored in a zigzag fold on a pallet, enabling packers to take only the required amount of board for each packaging case.

Popular Insights – 

• Ready-To-Eat Packaging Market Size Anticipated to Attain USD 700.23 Billion by 2032

• Food Packaging Market Size Anticipated to Attain USD 659.80 Billion by 2032

• Pharmaceutical Packaging Market Size Anticipated to Attain USD 322.50 Billion by 2032

This approach offers several advantages for e-commerce retailers:

• It eliminates the need to stock multiple types of packaging for various product sizes, simplifying inventory management.
• The versatility of fanfold corrugated board allows for quick adaptation to different product dimensions, reducing packing time and increasing operational efficiency.
• The compatibility with packaging machines and conveyor belts facilitates integration into existing packing systems, further enhancing productivity.

Comparative landscape

The competitive landscape analysis of the e-commerce packaging market comprehensively assesses each competitor’s strategic position. The analysis includes in-depth information on various aspects of the company, such as its background, financial performance, revenue generation, research and development investments, market potential, and global presence. Additionally, details about the company’s production sites and facilities, production capacities, and strengths and weaknesses are highlighted. The analysis also covers insights into the company’s product portfolio, including product width and breadth, application dominance, and recent product launches. It is important to emphasize that the provided information focuses explicitly on the companies’ activities and strategies within the e-commerce packaging market, enabling businesses to thoroughly understand their competitors’ positioning and capabilities.

Major Key Players in E-Commerce Packaging Market Are: 

Amcor plc; Berry Global, Inc.; CCL Industries; Coveris; Sealed Air; Sonoco Products Company; Winpak Ltd.; Alpha Packaging; Constantia Flexibles Group GmbH; Mondi plc; Gerresheimer AG; Silver Spur Corp. Grief; Transcontinental Inc.; ALPLA

Recent Development

• In 2022, Amcor, a leading sustainable packaging solutions provider, introduced the AmFiberTM platform, a range of paper-based packaging products. The AmFiber platform exemplifies Amcor’s dynamic innovation strategy, enabling us to deliver cutting-edge packaging technology tailored to our customer’s specific needs, utilizing the most suitable materials available in the market.
• In July 2022, Reckitt introduced a minimalist e-commerce packaging solution for its brand Vanish. Understanding the evolving needs of online shoppers, Reckitt leveraged its packaging and product design expertise to launch Vanish Multipower Tabs, a new addition to its e-commerce portfolio alongside Vanish Miracle. These Multipower Tabs have explicitly been developed as a compressed powder alternative to the brand’s leading product, allowing minimal packaging. The innovative Shipped in a Personal Container (SIOC) format eliminates the requirement for an outer pack during online order fulfilment, substantially reducing packaging materials. This initiative showcases Reckitt’s commitment to sustainable practices and meeting the demands of digital consumers.
• In May 2022, Mondi, a globally recognized leader in sustainable paper and packaging, joined forces with Beck Packautomaten, a reputable German machine supplier, to unveil a robust and highly adaptable paper-based packaging solution exclusively designed for the thriving e-commerce industry. Leveraging Mondi’s expertise, the solution incorporates 95% paper content and adheres to strict recycling standards across all European paper waste streams. Known as FunctionalBarrier Paper, this advanced packaging material is a viable substitute for unnecessary plastic packaging, guaranteeing secure and sustainable shipment deliveries in precisely tailored packaging dimensions. This collaborative endeavour exemplifies Mondi’s unwavering commitment to environmental stewardship and its relentless pursuit of delivering eco-conscious packaging solutions that cater to the unique needs of the e-commerce sector.

Report Source: https://www.towardspackaging.com/insights/e-commerce-packaging-market

The post E-Commerce Packaging Market Projected to Surge at 16.8% CAGR, Reaching USD 2,42,061 Million by 2032 appeared first on Global Trade Magazine.

One of the major factors contributing to the growth of the market is the integration with legacy systems. Many industries have existing legacy systems that need to be integrated with new 5G infrastructure. System integrators play a crucial role in ensuring compatibility and smooth coexistence between legacy and modern systems.

The integration of edge computing with 5G networks for localized data processing and reduced latency creates opportunities for system integrators to design and implement solutions that leverage the capabilities of edge intelligence.

Telecom service providers undergoing digital transformation to adapt to the 5G era require system integration services to integrate new technologies, automate processes, and enhance overall operational efficiency.

System integrators can contribute to improving the overall user experience by ensuring the seamless integration of 5G networks with applications and services, optimizing performance, and minimizing disruptions.

System integration is increasingly important in vertical industries such as healthcare, manufacturing, and transportation, where 5G is utilized for industry-specific applications. Customized solutions that integrate seamlessly with existing processes are in demand.

The move towards virtualized network functions and software-defined networking architectures requires comprehensive system integration. The trend allows for greater flexibility and scalability in 5G network deployments.

Key Takeaways from the Market Study

• Global 5G System Integration market was valued at US$ 12.3 billion by 2023-end.
• From 2019 to 2023, the market demand expanded at a CAGR of 26.0%.
• The market in Australia is expected to expand at a CAGR of 32.3% through 2034.
• By vertical, the IT and Telecom segment to account for a share of 24.5% in 2024.
• From 2024 to 2034, the 5G system integration market is expected to flourish at a CAGR of 28.8%.
• By 2034, the market value of 5G system integration is expected to reach US$ 195.8 billion.

“Digital twins, virtual replicas of physical objects or systems, are being used for monitoring and simulation in various industries. System integrators can help integrate digital twins with 5G networks for real time monitoring and analysis,” – says Sudip Saha the managing director and co-founder at Future Market Insights

Competitive Landscape

Recent Developments

• In 2021, Ericsson unveiled its intelligent automation platform, a cutting-edge service management and orchestration product designed to enable intelligent automation for any mobile network. Expanding upon its existing portfolio, which includes the cloud native dual mode 5G Core and the Cloud RAN portfolio, the introduction of the Ericsson intelligent automation platform and a suite of rApps represents a strategic advancement toward building the networks of the future.
• In the same year, NEC Corporation and its wholly owned subsidiary, Netcracker, revealed the successful deployment of their 5G Core and comprehensive Digital BSS/OSS on Amazon Web Services. The deployment is designed to effectively orchestrate and automate the delivery of 5G digital services.

The post Exploring the Growth Potential of the 5G Systems Integration Market Report, 2024 to 2034 appeared first on Global Trade Magazine.

The technology in these machines has made tremendous strides in the past couple of decades. These advancements demonstrate how advanced forklifts are transforming the warehouse environment.

Implementing Automation

Automation has become a more significant part of warehouses and other workplaces worldwide. Experts predict the global industrial automation market will grow 10.5% annually from 2023 to 2030. Artificial intelligence (AI) and robotics are more crucial than ever, leading warehouse managers to implement automation through their forklifts.

Forklifts with these abilities include automated guided vehicles (AGVs) and autonomous mobile robots. AGVs can move independently throughout the warehouse and need minimal human control to get the job done. Autonomous forklifts can identify and pick up pallets on the warehouse floor, and transport them to the necessary destination.

Improving Navigation

An added benefit of automation is an advanced forklift’s ability to navigate the warehouse floor, selecting the most efficient paths to reach its destination. The machine uses algorithms and advanced analytics to study traffic over time, thus finding ways to reduce power consumption and transportation time.

Advanced forklifts take advantage of the latest technology to ensure smooth navigation. These machines use light detection and ranging, cameras and sensors for object detection, and navigation software for creating maps. AI is critical for advanced forklifts as they adjust to the warehouse environment. Additionally, their ability to adapt to situations makes them a stronger asset over time.

Collecting Data

Data collection is at the crux of modern forklifts. This ability lets the equipment learn more about its surroundings and improve its ability to work in a warehouse. Collecting data also makes work easier for managers because the machines can complete this task autonomously. Human employees can then focus on the bigger picture instead of worrying about time-consuming jobs.

While forklifts collect data for navigation, they also collect information on various warehouse elements. Warehouse managers can take advantage of advanced forklifts for these uses:

• • Predictive maintenance: Advanced forklifts tend to last longer because their sensors can tell when they’ll require maintenance. Operators know when their machines need service sooner with this information, ensuring uptime stays as high as possible.

• Tracking performance: Increasing efficiency at every corner is critical, so warehouse managers have started employing advanced forklifts to track performance. The collected data shows how efficiently the operator works and what they can do to improve.

• Inventory management: Inventory management is among the most critical data advanced forklifts collect. These AGVs roam the warehouse floor and provide real-time information on stock levels, helping warehouse managers avoid stockouts.

Changing the Workforce

Advanced forklifts have expanded their capabilities, making them as valuable as humans in the warehouse. These machines are practical because they don’t become fatigued like people, letting them work for more extended periods with fewer breaks in between. The only necessary stoppages are for refueling or recharging the battery.

Introducing advanced forklifts changes the workforce within the warehouse. Managers can worry less about labor shortages as more autonomous machines enter the facility. Keeping and finding reliable human workers can be complex, considering the high turnover rate in warehouse jobs. The American Journal of Transportation says transportation, utilities and warehousing experienced a 49% turnover rate in 2021 — an increase of 8 percentage points since 2017.

Lowering Environmental Impact

Increased warehouse demand leads to 24-hour operations and more energy used. Shareholders and consumers have become increasingly concerned about power consumption and its effects on the environment, which is why many warehouses have turned to renewables to lower their impact and build their reputation. Electric forklifts provide the opportunity to achieve these sustainability goals.

Electric forklifts emit very little pollution, minimizing their ecological impact. They also have fewer internal moving parts than gas-powered forklifts, making them easier to maintain and more reliable in the long run. Besides air pollution, electric forklifts also improve noise pollution inside the warehouse, fostering better communication and reducing the risk of hearing loss on the job.

Electric forklifts have evolved to emulate electric vehicle technology. For example, these machines typically employ regenerative braking to recapture energy lost during braking. The reclaimed power helps equipment last longer and increases productivity, even while considering battery-electric forklifts can have limited ranges.

What Are the Advantages of Advanced Forklifts?

While best warehouse practices change annually, advanced forklift technology paves the way for logistics professionals. Here are a few benefits these machines give warehouse managers.

1. Productivity

Experts predict a 10% compound annual growth rate in e-commerce between 2023 and 2028, so productivity is a priority for warehouse managers. Advanced forklifts enhance productivity, and deliver results by working around the clock and requiring fewer breaks. AGVs don’t feel physical or mental fatigue, so their capacity to work effectively is higher than most humans.

2. Safety

Protecting employees is a chief concern for warehouse managers. Thankfully, it’s become a priority, considering workplace injuries increased by 7.5% from 2021 to 2022. Advanced forklifts reduce the risk of injury by taking over the most demanding tasks. Additionally, their sensors can detect unsafe conditions inside the facility and assist the operator while running.

3. Operating Costs

While advanced forklifts can be pricey, they bring lower operating costs over time. Optimizing routes and reducing fuel consumption are two ways warehouse managers can lower operating costs while maintaining efficiency. Switching to an advanced electric forklift can eliminate fossil-fuel consumption, further increasing profitability.

What Are the Challenges of Advanced Forklifts?

Advanced forklifts will become more commonplace for logistics professionals, but they have drawbacks. Here are a few challenges warehouse managers face with this new technology.

1. Upfront Costs

Innovative technology comes at a high price — AGVs can exceed $100,000, depending on the manufacturer and the machine’s size. Smaller operations may be unable to afford this and will have to wait for costs to come down. Organizations able to take on that expense must account for maintenance and integration costs on top of the initial price tag.

2. Learning Curve

Integrating an advanced forklift into warehouse operations requires time and resources. A machine with autonomous capabilities needs time to learn the warehouse floor and optimize itself. Additionally, employees will need time to adjust to this new technology.

3.Cybersecurity

Incorporating advanced technology accelerates productivity and efficiency. However, it also comes with risks, such as cybersecurity concerns. Collecting and storing large amounts of data leaves companies vulnerable to losing valuable and sensitive information. Research shows about 43% of cyberattacks target small businesses, so this problem extends to warehouses of all sizes.

Moving Warehouse Environments Forward With Advanced Forklifts

The past few years have presented numerous challenges for warehouses, prompting managers worldwide to reevaluate their practices. Considering the rising e-commerce demand and shifting business landscape, the next decade of operations will be critical. 

Advanced forklifts and similar technologies are moving warehouse environments forward by increasing productivity while lowering process costs.

The post How Are Advanced Forklifts Transforming the Warehouse Environment? appeared first on Global Trade Magazine.

Warehouse robots can make life easier for human workers and help them be as efficient as possible. Here’s how warehouse robotics has evolved and what the future holds.

How Has Warehouse Robotics Changed Over Time?

Warehouse robotics has dramatically evolved since its mid-20th-century beginnings. The changing technology has made warehouses safer and more efficient. Here are three ways warehouse robotics has changed to benefit companies worldwide.

Starting the Evolution

Understanding modern warehouse robotics starts with the first innovations. Using robotics in manufacturing and logistics on a wide scale began in 1961 in Ewing Township, New Jersey. General Motors (GM) began using a robotic arm from George Devol, the man who built the first programmable industrial robot. GM paid about $18,000 for the robot and changed the automotive industry. 

Devol’s industrial robot may seem primitive in the 21st century, but the machine was crucial in the history of warehouse robotics. The robot, Unimate, transferred die castings onto the car’s body. Unimate improved the safety of GM plants because assembly line workers could harm themselves with toxic fumes from the die-casting transferral. Devol’s Unimate sparked a robotic evolution across auto manufacturing and other industries.

Adding Sensor Technology

Sensors play a significant role in warehouse robotics, letting machines understand their surroundings and act accordingly. Employing sensors gives robots human-like abilities while still keeping their machine identity. Sensor technology is still evolving, as seen in the automotive industry. Sensors help fleet managers make their company safer, considering humans cause most car accidents in the United States. With sensors, autonomous vehicles are a closer reality.

In warehouse robotics, sensor technology has become crucial for similar reasons. Robotics use sensors to navigate the warehouse floor autonomously and perform tasks. Among the most critical advances in this sector has been light detection and ranging (LiDAR). LiDAR technology is essential for robots to create a 3D map and avoid bumping into obstacles. Additionally, they can optimize their routes within the warehouse to remain efficient.

Improved Durability

Increased reliance on robots means these systems must have maximum reliability and durability. Downtime significantly impacts efficiency despite implementing robots to improve it. Research shows downtime costs manufacturers about $260,000 per hour and the auto industry about $50,000 per minute. Fortifying warehouse robots to strengthen them has been crucial for their staying power in the 21st century. 

Developers have strengthened warehouse robotics by improving their bodies and frames. Metal has proved effective due to its safety, durability and efficiency. Manufacturers have found metal castings to be formidable solutions, with about 90% of all manufactured goods containing them. 

How Will Warehouse Robotics Grow in the Future?

The future of warehouse robotics is bright, with a growing market this decade. Facts and Factors research shows the robot as a service (RaaS) global market will grow by 16.5% annually, leading to a $44 billion market by 2028. These four innovations will drive the industry’s growth in the coming years. 

Interconnecting the Warehouse

In its infancy, warehouse robotics may work with small sections of the facility. While effective, this limitation can inhibit warehouse employees and their ability to connect with other departments in the building. However, the future of warehouse robotics is bright with evolving technology in connecting machines across large spaces. 

Evolving guidance systems will let robots work in every section of the warehouse and increase efficiency. While a fully robot-operated warehouse may be unlikely, robot adoption will increase with e-commerce demand. The European Business Review says the world should see about 50,000 robotic warehouses by 2025, emphasizing how widespread this advanced technology has become. 

Expanding Autonomous Mobile Robots

Autonomous mobile robots (AMR) are growing a stronger foothold in warehouses because they build upon automated guided vehicles (AGV). The key difference is that AMRs are even more intelligent with their programming. Warehouses can employ AMRs and let them navigate the floor by themselves. Employees don’t have to train them in navigation, saving time and improving efficiency in the warehouse. 

AMR’s evolution has let their responsibility grow in the warehouse. Modern AMRs excel in picking and packing, reducing the burden on human laborers and heightening accuracy in order fulfillment. Even careful human workers might not match the accuracy of AMRs in this task. Many warehouses also employ AMRs in receiving and storage optimization, assisting the company in making the most of its current space. 

More warehouses will adopt AMRs this decade to work alongside their human workers. Evolving technology and increased competition will make it more affordable for smaller businesses and startups. The advantages of AMRs are hard to pass up, considering how they boost safety and productivity.

Wielding Robots for Last-Mile Delivery

Last-mile delivery is the last step, albeit a crucial one, to ensure client satisfaction with their purchase. Humans have executed last-mile deliveries since the beginning of package deliveries, but robotics will soon play a more significant role in this step. Some companies have already tested last-mile delivery robots for bringing food and small items to the end user’s doorstep. 

For example, Kiwibot has machines delivering food on the University of California, Berkeley campus. 

While last-mile delivery robots have existed for a few years, logistics professionals should expect this service to expand worldwide in large cities. The next step for last-mile technology is to make these robots more efficient. TeleRetail, a Swiss company, has developed the Pulse 1 robot to reduce emissions and energy consumption. The Range+, a newer, solar-powered robot, embodies the shift to renewable energy in robotics. 

Cutting emissions is a focal point for warehouses and e-commerce as a whole. Packaging, transportation and building energy consumption combine for a detrimental environmental impact, so increasing robotic efficiency is necessary.

Employing More Drones

Expanding robotics in and out of the warehouse will rely on drones. Crewless aircraft has evolved sharply in the last few decades and will only improve with its technology. Warehouses can employ drones for multiple purposes, such as inventory management, inspection and monitoring. Modern drones have cameras and sensors powerful enough to give warehouse managers a real-time look at their stock. 

Drones will open the door to expanding warehousing and shipping this decade. With drone technology, shipping companies can easily reach rural areas without using boats or crewed aircraft. Additionally, drones will reduce shipping times and increase customer satisfaction when they can receive their orders in a few hours rather than a few days. Companies like Amazon are heavily investing in this technology.

Taking Modern Warehousing to a New Level

Efficient warehouses are a must, considering today’s e-commerce demand. Shareholders demand well-oiled machines no matter what the company ships worldwide. 

With robots, warehouses have increased productivity and reduced downtime thanks to speedier processes. The future of warehouse robotics is bright, with evolving technology pushing warehouses forward. 

The post Reimagining Warehouse Robotics: From Silicon Valley to Assembly Lines appeared first on Global Trade Magazine.

Exactly one year prior, in November 2022, Container xChange reported the persistently deepening problem of an excess of containers burdening depots across Europe. Fast forward to today, and the situation has continued to escalate.

“We have a poisonous mix of severely imbalanced container trade with high level of excess inventory in Europe, and at the same time unreliable shipping services, suddenly lacking the vessel capacity to reposition empties out which in turn makes the situation even more difficult” commented Christian Roeloffs, cofounder and CEO, Container xChange an online container logistics platform based in Hamburg, Germany. 

COVID aftermath in 2019, and later Russia’s war in Ukraine in 2022, left a permanent impact on EU’s trade with its major trading partners like China, the US, and UK. Subsequently, the imports and exports, both declined. 

Retail trade volumes and economic sentiment, both further declined for the Euro Area in 2023. While the final household consumption further declined, the household savings grew from 14.5% in Q1 to 14.9% in Q2 2023. 

With consumers retracting their expenditures persistently, and trade declining, this of course leaves its due impact on the shipping business in Europe. 

Ports in Europe experience consistent month on month low import and export volume TEUs. 

In the first nine months of 2023, there was 6% less throughput in the port of Rotterdam: 329.9 million tonnes compared to 351.0 million tonnes in the same period in 2022. The decline was mainly related to the throughput of containers and coal. The container segment saw a decline of 8.1% in weight and 7.2% in the number of containers (TEU, twenty feet equivalent unit) in the first nine months.

The import and export comparison are similar at the port of Antwerp and that of Hamburg. The biggest struggle for container owners in Europe is the persistent problem of excess containers leading to overflowing depots. The container owners are looking for solutions to repatriate containers back to China and to Russia. 

The excess of inbound containers this October is also evident in the Container availability Index (CAx) which measures the inbound and outbound containers at any given port. For Rotterdam, the values are at an all-time high at 0.70 this October as compared to 0.59 in October 2022. This indicates that the burden of containers is significantly higher in Rotterdam.                                                                                                                                                                                                                                   According to Drewry, In August 2023, the European Container Port Throughput Index saw a 0.4% MoM decline, reaching 100.2 points, down 2.8% dover the August 2022 level.

“Container owners are grappling with the issue of repositioning empty containers to Asia, and this task has become financially burdensome as repositioning costs now surpass the asset costs. However, the caveats here is that this could be an issue for operators looking for short term results, for instance, the traders. On the other hand, container lessors are more focused on long term strategies so that the cost of repositioning may result extremely diluted over the asset lifetime.” Commented Andrea Monti, Italian container depot owner Sogese chief executive Andrea Monti. 

While the carriers are looking to reduce capacity in this region, on the other hand we see the persistent blank sailings trend. In the next five weeks, 9% of 660 scheduled sailings on major East-West routes are cancelled. Most of these cancellations (52%) are on the Asia-North Europe and Mediterranean routes, with 35% on Transpacific Eastbound, and 13% on Transatlantic Westbound routes. 

“We do hear from our customers that depots are burdened, and the box owners are looking to move their containers to other regions. There is also a rush to reposition containers out of Russia and the prices there are quite low. With recessionary fears on the horizon in Europe, and specifically in Germany, the outlook for 2024 is shaky. But one thing is certain – 2024 will be better than 2023 for the container shipping industry.” Shared Christian Reoloffs, cofounder and CEO of Container xChange. 

The biggest uncertainty is the geopolitical risks that have been destructive for the supply chain industry. 

“The Israel – Palestine conflict have remained a regionally destructive humanitarian crisis and have not yet impacted the European Union’s trade and economy. Nevertheless, it is essential to recognize that the container market is highly sensitive to broader economic and geopolitical shifts, as these can substantially influence global trade. The ongoing conflict in Israel holds the potential to affect consumer confidence, manufacturing operations in the region, and ultimately trade volumes emanating from that area.” Roeloffs added. 

Amidst this, there are positive signs for container trade witnessed on the Container xChange platform. Russia is a very popular container trading and leasing market. 

“Hot stretches include 40 ft high cubes from Ex Russia to China and Intra Russia. The container prices are more stable now in Euro area and in China which brings cheer for box trading players as more stable prices gives way to plan the moves better.” Jakob Hafner, Business Unit Leasing & Trading, Germany, Container xChange. 

An overview of the container prices across key ports in Europe

Average prices for 40 ft high cube cargo worthy containers down by 44% this year in October 2023 from October 2022 across key ports in Europe, lowest in four years since 2020. 

Source: Container xChange marketplace platform

Similar trend is observed for 20 ft DC, cargo worthy containers. However the decline is steeper for 40 ft HC containers, as compared to 20 ft DCs across ports in Europe. 

Source: Container xChange marketplace platform

Container xChange periodically deep dives into the container trading and leasing market trends to help equip its customers and industry drive better container business decision making. This analysis evaluates company and market information to contextualize solid understanding of the macro economic factors and draws correlation into how these are impacting the container market in the region. 

The post Pressure on Box Owners in Europe to Reposition Containers to other Regions as Depots Flood with Empties appeared first on Global Trade Magazine.

The Global Business Landscape

Globalization has opened up a vast world of opportunities for companies. Expanding into international markets allows businesses to tap into new customer bases, diversify their revenue streams, and gain a competitive edge. However, succeeding in the global arena requires careful planning and a deep understanding of the markets being entered.

Key Strategies for Companies Doing Business Globally

1. Market Research and Adaptation

Before entering a foreign market, conducting thorough market research is essential. Understanding the local culture, consumer behavior, regulations, and competition is crucial. Companies need to adapt their products, services, and marketing strategies to meet the specific needs and preferences of the target market.

2. Compliance with International Regulations

Compliance with international trade regulations and local laws is non-negotiable. Companies must be aware of import/export regulations, tariffs, tax laws, and customs requirements. Maintaining a strong legal and regulatory team is essential to navigating this complex landscape.

3. Establishing Local Partnerships

Collaborating with local partners can provide invaluable insights and connections. It can also help companies overcome language barriers, navigate cultural nuances, and establish a solid presence in a new market. Joint ventures, partnerships, and strategic alliances are common strategies in this regard.

4. Effective Supply Chain Management

Managing a global supply chain requires precision. Companies must ensure the smooth flow of goods and services across international borders. This includes considerations such as logistics, customs clearance, and transportation.

The Role of Documentation

In the realm of global business, effective document translations are a critical component of successful international operations. Accurate and culturally sensitive translation of legal agreements, contracts, marketing materials, and other essential documents is imperative for clear communication and compliance with local regulations. Document translation services, often provided by professional translation agencies or in-house experts, bridge language gaps and ensure that vital information is conveyed accurately to partners, clients, and authorities in the target market. These services are an integral part of the global business toolkit, facilitating seamless cross-border transactions and fostering understanding in the diverse tapestry of international commerce.

Accurate and comprehensive documentation is a cornerstone of global business. It serves several critical purposes:

1. Legal Compliance

Proper documentation ensures that a company complies with international and local laws. This includes documentation related to import/export licenses, permits, and customs declarations.

2. Risk Mitigation

Thorough documentation can help mitigate the risks associated with international transactions. It provides a clear record of agreements, payments, and obligations, reducing the potential for disputes and legal complications.

3. Financial Accountability

Accurate financial documentation is crucial for tracking expenses, revenues, and tax liabilities across international borders. This is essential for financial transparency and regulatory compliance.

4. Effective Communication

Documentation is a tool for effective communication within a global business. It helps convey expectations, requirements, and agreements clearly to all parties involved, regardless of language or location.

Final Words

In conclusion, companies venturing into global markets must approach the endeavor with a well-thought-out strategy that encompasses market research, legal compliance, local partnerships, and efficient supply chain management. Documentation plays a central role in ensuring that these strategies are executed effectively. In the global business landscape, success hinges on a combination of market insight, legal diligence, and a commitment to proper documentation. With these elements in place, companies can thrive in a world of endless possibilities and challenges.

The post Navigating Global Markets: Strategies for Companies Doing Business Globally and The Role of Documentation appeared first on Global Trade Magazine.

The surge in the sales of organic milk can be attributed to the burgeoning global demand for a diverse range of organic food products. This market is expected to thrive due to the escalating incidence of health issues such as diabetes, obesity, heart-related conditions, hypertension, and other health concerns.

Consumers perceive dairy products sourced from cows fed on organic or natural diets as superior in quality. This perception has led to a notable surge in the demand for milk that aligns with an organic and wholesome lifestyle. Such organic milk varieties are rich in essential nutrients that play a pivotal role in promoting and sustaining a healthy way of life.

Key Driving Forces Accelerating the Market Growth

·         Consumers are becoming more health-conscious and seeking natural, organic, and healthier alternatives to conventional products. Organic milk is perceived as a healthier option due to the absence of synthetic pesticides, antibiotics, and hormones.

·         Growing concerns about the environmental impact of conventional dairy farming practices, such as the use of chemical fertilizers and pesticides, have led consumers to opt for organic milk, which is produced using sustainable and environmentally friendly methods.

o    United States market growth rate is expected to witness a 7% CAGR during the forecast period and reach US $ 90.06 Mn by 2033-end.

·         There is a rising awareness of animal welfare issues, and consumers are choosing organic milk because organic dairy farms generally adhere to higher animal welfare standards.

·         Government regulations and certifications for organic products provide assurance to consumers about the authenticity and quality of organic milk, fostering its growth. Moreover, the increasing availability of organic milk in various retail channels, including supermarkets, specialty stores, and online platforms, has made it more accessible to consumers.

Vital indicators shaping the future of the industry

·         Changes in consumer preferences and behavior, such as increased demand for natural, organic, and sustainable products, will continue to drive the growth of the organic milk market in North America.

·         Any changes in government regulations and organic certifications can impact the production, distribution, and marketing of organic milk, affecting consumer trust and market growth.

·         The level of market penetration and the awareness of organic milk among consumers will significantly influence its future growth. Increased awareness through marketing and education campaigns can drive market expansion.

·         The availability of organic milk in various retail channels, including supermarkets, specialty stores, and online platforms, will determine its accessibility and potential for growth.

·         The level of competition in the organic milk market, including the presence of major dairy companies and smaller organic dairy farms, will affect pricing, product innovation, and market share dynamics.

Key Companies Profiled in This Report

·         Danone

·         Fonterra Co-Operative Group Limited

·         Groupe Lactalis S.A.

·         Dairy Farmers of America Inc.

·         Arla Foods AmbA

·         Agropour Dairy Co-Operative

·         The Kroger Company

·         Organic Valley Co-Operative

·         Clover Stornetta Farms Inc.

·         Stratus Family Creamery Inc.

Challenges hindering the market growth

·         Organic dairy farming involves more expensive production practices, such as organic feed, higher labor costs, and reduced herd sizes, leading to higher production costs. This often translates into higher retail prices for organic milk compared to conventional milk.

·         The transition of conventional dairy farms to organic practices takes time, and there may not be enough supply to meet the growing demand for organic milk. Limited supply can lead to supply shortages and price fluctuations.

·         Consumers may perceive the price premium of organic milk as too high, leading them to choose conventional milk, especially during economic downturns.

·         The organic milk market faces competition from conventional milk and plant-based milk alternatives, such as almond, soy, and oat milk, which can limit the market share of organic milk.

How competition influences the market

Organic milk producers have been focusing on product differentiation to stand out in a crowded market. This can lead to the introduction of various product offerings, such as flavored organic milk, organic milk-based beverages, and specialty formulations, catering to different consumer preferences and needs.

·         In 2021, Lactalis Group acquired Leerdammer and Shostka, which is expected to help Lactalis Group develop quality and reputable local products.

Segmentation of Organic Milk Industry Research Report

·         By Product Type:

o    Skimmed

o    Whole

o    Partly Skimmed

·         By Source:

o    Cow

o    Buffalo

·         By Packaging Type:

o    Pouches

o    Cans

o    Bottles

o    Tetra Packs

o    Bulk Packs

·         By Flavor:

o    Non-flavored

o    Flavored

·         By Distribution Channel:

o    HoReCa (Hotels, Restaurants, & Catering)

o    Specialty Stores

o    Modern Trade

o    Convenience Stores

o    e-Retailers

·         By Pasteurization Type:

o    High-Temperature, Short-Time (HTST) Method

o    Ultra-pasteurization (UP)

o    Vat Pasteurization

·         By Region:

o    North America

o    Europe

o    Asia Pacific

o    Latin America

o    Middle East & Africa

The post Global Organic Milk Industry is expected to reach US$ 319.36 Million By 2033 appeared first on Global Trade Magazine.

This infusion of fresh capital substantially bolsters Transfix’s financial stability, providing a clear path towards profitability. It serves as a testament to the unwavering faith of investors in the company’s distinct approach, where cutting-edge technology and data-driven expertise deliver exceptional services and solutions to highly sophisticated shippers and mid-sized carriers.

Furthermore, this funding underscores the ongoing support of prominent institutional investors for Transfix, a notable achievement considering the challenging climate of the freight industry.

Jonathan Salama, Co-Founder and Chief Executive Officer of Transfix, emphasized the company’s steadfast commitment to enhancing and future-proofing their core business. Their tech-enabled brokerage and software solutions for shippers and carriers have been the bedrock of their success, even in the face of one of the most demanding periods in freight history. Salama expressed his immense pride in being part of this transformative and inspiring team.

Carmen Chang, Partner and Head of Asia at NEA, expressed their belief in Transfix’s innovative solutions, describing them as instrumental in helping companies optimize operations in today’s ever-evolving freight market. NEA’s investment is a vote of confidence in Transfix’s strategic vision and leadership, highlighting the anticipation of a fruitful partnership.

Larry Aschebrook, Founder & Managing Partner at G Squared, commended Transfix for their resilience, determination, and innovative mindset. He noted that Transfix’s unwavering focus on addressing deeply-researched customer needs, rather than succumbing to “shiny object syndrome,” has set them apart. Their dedication to building and refining solutions to meet future demands has been particularly impressive.

This funding round represents a significant milestone for Transfix as they continue to push the boundaries of innovation and make a lasting impact in the freight and logistics sector.

The post Transfix Secures $40 Million in Series F Funding, Led by NEA and G Squared appeared first on Global Trade Magazine.

While leading through change is difficult, it’s unavoidable for leaders in today’s modern business world. The business landscape is constantly evolving, with new consumer expectations and new business opportunities. To succeed, leaders must help their organizations to adapt and grow.

The need for change is especially evident in supply chain management. The COVID-19 pandemic derailed the global supply chain, revealing its weaknesses and forcing the industry to consider a new approach to management.

As leaders in the supply chain space seek to navigate the new landscape, they should consider the following leadership insights.

Steer clear of the leadership crisis

There is a leadership crisis in the US, as leaders in every industry are facing a raft of new challenges. Economic uncertainty has made costs increase and revenue decrease, and a labor shortage has left leaders without the human resources they need to pursue growth.

As a result, many leaders have become fixated on revenue no matter the cost, which has led to work environments that feel depersonalized. Employees complain leaders are unappreciative, constantly pushing for more production, and generally can’t be trusted to be true to their word.

To steer clear of the crisis, leaders must recommit to provide the support their teams need. Difficult decisions will need to be made, but the best leaders will make them with empathy, ethics, and integrity.

Become a forward-thinking leader

The supply chain space needs forward-thinking leaders now more than ever. Covid brought unprecedented changes to supply chain management, but leaders need to accept the new reality and embrace the tools and processes that will serve the industry’s new needs.

Forward-thinking leaders lock on to emerging trends and assess the impact they could have on their industry. They create systems that encourage innovations and take intelligent risks.

Forward-thinking leaders drive change proactively, rather than reacting to change. They not only invest in talent to ensure they will have the workplace skills they need to meet future needs, but also effectively and consistently communicate the vision they have for the future.

In the supply chain space, forward-thinking leaders are data-driven. They incorporate IoT technology to incorporate data into their management processes, and leverage AI to produce advanced metrics and predictive modeling. Empowered by data and the insight it provides, they can remove redundancies and cut wasteful costs. Consequently, their organizations are better positioned to compete.

Prepare for difficult conversations

Mass layoffs have become a reality forcing many leaders to navigate uncharted waters, and supply chain companies have not been exempt from the trend. The recessionary environment is partially to blame, as companies predicting lower revenues trigger a reduction in force to tighten their belts.

Technology is also driving layoffs. The workplace automation AI and other tech innovations are fueling is doing away with positions in all industries. In the supply chain industry, AI tools are being deployed to manage inventory, automate procurement, streamline customer service, inspect quality, and more.

For leaders, layoffs mean difficult conversations. The news about layoffs — even when they are happening in other industries — makes most workers anxious. As they contemplate who may be impacted, and when, they look to leaders for clear guidance.

When communicating about layoffs, it’s critical to provide transparency and empathy. Giving employees context, including the state of the business and what options have been considered, can set the stage for healthy dialogue. Leaders should also communicate with compassion, recognizing the fear and frustration workers will most likely be feeling.

Emotional intelligence (EQ) is an important skill for leaders to practice when talking about layoffs. Leaders should be ready for feedback, including questions and input on the process. Engaging with EQ helps to hear other perspectives and respond with gratitude. Leaders who engage with EQ are also more likely to learn through the process.

EQ will also help leaders to remain resilient through difficult seasons. Layoffs can trigger a lot of criticism — some valid and some not. Leaders with EQ can receive criticism without taking it personally, admit the areas where they are accountable, and move forward with confidence.

Supply chain management is a vital industry where margins are razor-thin. Today’s leaders face the challenge of meeting an ever-growing demand from consumers, while fuel and other key resources continue to become more costly. 

To stay effective, leaders must not lose sight of meaningful metrics. By supporting their teams, leveraging technology, and keeping a close eye on emerging trends, they will equip their organizations to effectively navigate the supply chain maze.

Author Bio

Sean Shahkarami is a visionary leader, entrepreneur, author, executive and corporate coach, adjunct college professor, and public speaker. For his work in education, coaching, speaking in University classrooms, and his first book, “Resonate – Principles of Peak Performance,” he has been awarded the Outstanding Leadership Award and is the keynote speaker at the Education 2.0 Conference in Las Vegas this coming March 2024. His work as an exceptional entrepreneur and leader led to Sean being featured on the cover of the “Top 100 Innovators and Entrepreneurs Magazine.” He was awarded the Outstanding Leadership Award at the Health 2.0 Conference in acknowledgment of the innovative performance of his start-up healthcare AI software business. 

The post Navigating the Supply Chain Maze: Leadership Insights for Key Industries appeared first on Global Trade Magazine.