Resilience is key to success in an increasingly competitive industry. Supply chains must anticipate and prepare for shifting seasonal obstacles to become as resilient as possible. With that in mind, here are seven common seasonal scenarios supply chains should plan for.

1.  Demand Shifts

One of the most consistent seasonal challenges supply chains face is shifting demand. For many logistics companies, like UPS, peak season lies between November and January, while others are busier in the summer. Regardless of when it occurs, supply chains face uneven demand throughout the year, which can be disruptive.

Failure to adapt to these shifts quickly or accurately can result in shortages, delays or surpluses. The solution to this challenge is to promote more transparency throughout the supply chain and its partners. Logistics companies must communicate quickly and thoroughly with their clients and vice versa to reveal demand shifts as they occur.

Data analytics can help predict future seasonal demand shifts based on historical trends. Supply chains can utilize Internet of Things (IoT) sensors to gather this data and predictive analytics algorithms to analyze it and stay on top of these changes.

2.  Extreme Temperatures

Another seasonal challenge supply chains must account for is extreme temperatures in the winter and summer. Heat and cold add urgency to operations by endangering sensitive shipments and raising maintenance concerns.

Since most trailers aren’t temperature-controlled, extreme cold and heat could damage products if they take too long to ship. Logistics companies can mitigate this risk by prioritizing time-sensitive shipments like these and employing climate-controlled trailers. IoT trackers can help monitor product health to inform any needed route changes, which is especially helpful in food supply chains.

Supply chain organizations must also ensure all vehicles meet high maintenance standards as temperatures shift. Extreme heat and cold take a toll on trucks, so businesses may have to schedule upkeep more often to prevent breakdowns.

3. High Rainfall and Flooding

Supply chains may have to deal with high rainfall in some areas during spring and summer. This can make road transportation risky, limiting drivers’ visibility and reducing trucks’ grip on the road. It can also lead to flooding in extreme cases, further delaying shipments and damaging goods.

Logistics companies must ensure they train drivers on how to be safe in the rain. Telematics systems can help monitor speed and behavior to enforce driving policies. Supply chain managers can also incorporate weather analytics into their route planning to help drivers avoid heavy rain if possible.

Supply chains with locations near coasts, lakes or rivers should assess their flooding risk. Facilities in high-risk areas should install early warning systems and flood barriers.

4. Winter Storms

Winter storms bring snow and ice, and these conditions can also threaten supply chains. Ice will expand inside cracks in the road, creating potholes and making roads slippery, and snow may limit air travel.

Like with many weather conditions, winter storm preparedness starts with monitoring. Supply chains that see a storm approaching should develop a contingency plan if one route becomes inaccessible. Companies may need to ship items from a different warehouse as roads and airports shut down.

Communication is also essential. Every point along the logistics network should communicate with others about developing road conditions and incoming storms. That allows supply chains to respond faster to inclement weather.

5. Increased Traffic

Some seasonal challenges have more to do with behavior trends than weather threats. Increasing traffic in the warmer months can be an obstacle since 71.6% of all freight in the U.S. travels by truck. Ground shipments will likely take longer to reach their destination, and vehicles may face more hazards from other drivers.

Most traffic peaks occur in warmer months, with August consistently featuring the most miles traveled and July falling close behind. Supply chain organizations should prepare for increased transit in these months and give themselves more time for road shipments than usual. Adjusting shipment methods to prefer shorter routes can also help.

A significant portion of addressing traffic delays is managing clients’ expectations. Logistics providers may not be able to deliver on quick shipment times, so they shouldn’t promise them during peak months.

6. Fluctuating Workforces

The supply chain industry faces a fluctuating workforce throughout the year. Some months may be more challenging to find workers than others, making expansion or adjusting to meet seasonal demands more difficult.

The number of young people looking for work increases dramatically between April and July as schools and colleges let out. These may be the best times of year for supply chains to hire new workers, but they may struggle to acquire them in the fall by comparison. Understanding the context behind these shifts can inform more effective hiring decisions.

Seasonal availability may increase in the summer, but if supply chains want permanent workers, they should favor new college graduates. Hiring in the summer will give companies a broader pool of applicants to choose from, making it easier to expand.

7. Shifting Maintenance Needs

Equipment maintenance needs will also shift between seasons. Proactive maintenance is essential any time of year, but different components will wear at varying speeds depending on the weather. Understanding these uneven repair needs can help companies plan more effective maintenance schedules.

For example, dirt, insects and other contaminants may accumulate in truck engines faster during the summer. Consequently, logistics companies may have to schedule oil and filter changes more frequently in the warmer months. Similarly, since vehicle batteries consume twice as much power to start in the cold, battery checks may have to be more frequent in the winter.

Supply chain organizations should review these repair needs to create maintenance schedules that vary between seasons. Using IoT devices to enable predictive maintenance, which alerts workers to repair concerns in real-time, may be even more effective. That way, companies can address issues as they become a concern but before they become a bigger problem.

Create a Supply Chain for all Seasons

Changing weather and shifting human behavior can challenge supply chains if they don’t prepare for it. However, if logistics companies understand how their obstacles change throughout the year, they can become as resilient as possible.

These seven scenarios are not the only seasonal challenges supply chains may face, but they are common threats. Businesses that prepare to mitigate these obstacles ahead of time can maintain peak efficiency regardless of the season.

The post Fortifying the Supply Chain Against Seasonal Challenges: 7 Scenarios appeared first on Global Trade Magazine.

It not only made up all those lost points but has tacked on about 4,000 more, currently hovering close to the 35,000 mark. The S&P 500 did almost the same thing, falling rapidly from mid-February to mid-March of last year, only to recoup all the loss and rise even higher, now sitting near the 4,300 mark. Here’s what the rest of 2021 could have in store for anyone interested in taking part in the global securities markets.

What’s the Purpose of the Stock Market?

Before examining what the rest of the year has in store for corporations and investors, it’s important to recall the two reasons the securities markets came into existence. Even after more than a century of daily buying, selling, and deal-making, those two purposes still underpin the existence of all the major global exchanges. The first purpose is to allow organizations, also known as listed firms, the chance to acquire capital so they can go about their daily operations, grow, and prosper. Second to that, but no less vital, is that the exchanges give ordinary investors the ability to benefit by owning a piece of any entity that is listed on the trading board.

Businesses Raise Money as Needed

For example, a new business might not have enough luck raising the funds it needs via private sources, loans, and angel investors. When that happens, it has the chance to apply to appear on the exchange’s board and accept direct capital inflow from the public, through a network of brokers.

Private Citizens Can Earn a Living

For individuals who want to own a portion of any listed entity, shares are available for sale. There’s no limit on investing timelines or amounts, as long as the purchase is legally made through a licensed agent. Many stock market enthusiasts who want to earn regular income learn how to day trade and take part in daily sessions. By definition, day traders close out all their positions each day, never holding equity shares overnight.

Corporate Earnings Estimates

After the COVID pandemic restrictions eased up and the global economy began getting back to normal in early 2021, many corporations unexpectedly exceeded earnings expectations. As is the case with share prices, earnings can sometimes travel for a while on built-up momentum. But even though most of the prognosticators and Sunday morning TV shows were expecting to see 2020’s momentum die down heading into the new year, it was not as significant as expected. Then, dozens of major companies began reporting record earnings early in the second quarter of 2021, which means there’s likely a new wave of enthusiasm and optimism coming out of the pandemic.

Overall Direction and New Leaders

Since March of 2020, the overall direction of the equity markets has been generally upward. Even in the doldrums of the later part of last year, the general trajectory of share prices was up, a megatrend that has continued to this day. What new leaders are emerging? Some of the biggest winners of the past six months have included companies in sectors like pharmaceuticals, healthcare, retail, and home improvement. Now that the economy is focused more on home delivery, online commerce, and working from home, merchants who have plugged into those major trends are enjoying broad-based success.

Low Risk, Not No Risk

Even the most diversified portfolio of blue-chip stocks still comes with risk. It’s essential for newcomers to the marketplace to understand that low risk is not the same thing as no risk. Anyone who puts their money on the line for the purposes of earning a profit from stocks, bonds, forex, options, commodities, or anything else, faces the ups and downs of the international economy. However, for prudent traders, there are multiple ways to minimize risk, keep an eye on account balances, and take part in one of the most exciting financial enterprises on earth: the international securities exchanges.

The post What’s In Store For the 2021 Stock Market? appeared first on Global Trade Magazine.

Sales & Operations Planning (S&OP) is a mid-term tool to ensure alignment among corporate strategic objectives, whereas Sales & Operations Execution (S&OE) is a tool to ensure balance among supply and demand. The flexibility of S&OP allows for an organization to look for imbalances at intermediate levels in a product hierarchy without getting “lost in the weeds” at detailed SKUs but not at too high of a level to be less meaningful.

In order to review this supply and demand balance, one must create supply planning groups and a structure based upon the critical success factors for delivering high levels of service. These planning groups could be internal manufacturing groups, make/buy items, a specific external supplier, or country of origin groupings. Given the extended lead times for international supply chains, S&OP is an ideal process for looking several months out into the future to perform risk analysis.

Strategic Considerations for International Sourcing

Companies initially evaluate their strategic objectives when pursuing an international sourcing initiative, but this should be revisited on a regular basis to ensure that the chosen supply chain continues to meet the companies’ needs. The lowest total cost of ownership is the primary objective, yet as manufacturing has declined in Western economies, the only source for production is often in the younger global economies such as China, India, Malaysia or countries of Eastern Europe.

Over time, labor rates and raw material costs in these countries have fluctuated due to global supply and demand. Combined with changing prices for the underlying commodities in those local markets, companies are facing more frequent price instability. Additionally, tariff uncertainty or increases force a regular review of the global supply chain to ensure strategic objectives have not changed and are still being fulfilled.

Supply Chain Complexity vs. Diversification

It is easier for a supply chain team to manage a single production site within a single manufacturer or at least from within a single country of origin. The obvious downside to that approach is that if that country is subject to a sudden tariff spike, an organization can quickly find itself with no choice but to accept the increase in costs and a likely impact to margins. As a potential alternative, a company can pursue a dual country sourcing strategy where it can cost-average its pricing to mitigate the short-term impact. Over a longer-term, a purchaser has the opportunity to switch volumes between suppliers/countries to mitigate those impacts.

How can S&OP help?

By its very design, the S&OP process is an ideal vehicle to prompt a company to ask the necessary strategic questions on a regular basis. In addition, a robust S&OP process takes into consideration changing costs and gross margin impacts to the bottom line to ensure gross margin or revenue targets are met. Stepping out of the day-to-day S&OE during the S&OP process allows for that broader perspective to evaluate “what-if” situations that could impact costs, demand, supply and margins before they reach fruition. In this manner, S&OP is a useful scenario-management tool to look at these cost changes, price increases and estimated adjustments to volumes at an aggregate level to quickly identify the potential impacts to the bottom-line without having to perform a time-consuming SKU-by-SKU analysis.

Contemporary S&OP tools often have scenario-modeling capabilities and increase the speed and accuracy of these strategic evaluation exercises. However, depending upon the scale and scope of a company’s supply chain, an expensive tool is not always necessary. Well-designed spreadsheet models populated by databases may be a sufficient starting point for a business. No matter what tool is utilized, the S&OP process is designed to identify potential issues and act as a launching point for projects elsewhere in the organization to identify methods for addressing those issues in the most cost-effective manner.

Companies with well-designed and utilized Sales & Operations Planning processes have well-demonstrated benefits of:

-Reduced stock-outs, driving higher service level

-Lower variable labor costs

-More efficient raw material, work-in-process and finished goods inventory utilization

-Lower transportation and material acquisition costs due to more stability

-Higher gross margins

-Increased top-line sales

Strategically including tariff management and other global supply chain variables in the S&OP process to evaluate possible impacts to the supply and demand balance, as well as cost structure, is critical to ensuring the continuity of supply necessary to provide high levels of service and cost management.

________________________________________________________________

Paul Baris is a supply chain expert with over 30 years of experience in the industry as a Vice President of Supply Chain for several companies as well as a consultant implementing Sales & Operations Planning, Inventory Strategy and Demand Planning practices.

Paul’s strengths include: Operational Performance, Root Cause Analysis, Lean & Six Sigma Methodology, Client & Vendor Liaison, Leadership, ERP, Strategic Procurement, Project Management, Warehouse Redesign/Implementation, Supply Chain Engineering, Statistical Process Control, 3PL Management, WMS, Demand Planning, Inventory Planning, Change Management, S&OP, and Operational Layouts. Paul is a certified supply chain professional from APICS and has a Certification in Supply Chain Management from the University of Tennessee. Paul’s professional certifications include: Change Management – Prosci ADKAR, Professional Negotiation – Karrass, Juran on Quality I & II – Kepner-Tregoe, Strategic Procurement – Stanford University, Statistical Process Control, Purchasing Strategy, Oliver Wight S&OP, and S&OP Implementation.

The post Sales & Operations Planning: A Long-Term Solution to Global Supply Chain Volatility appeared first on Global Trade Magazine.

Modern technology has meant that plastics are more than just the straws you put in your milkshake or the wrapper on your lunchtime snack. Today’s plastics come in all shapes and sizes, including reusable, durable products used across the food supply chain market.

These products make food supply chain management more cost and time-efficient, allowing consumers to enjoy fresh, delicious produce and products quickly, and at a price they can afford.

Growing And Harvesting

In the early stages of food production, agricultural reusable plastic containers are used to grow fruits and vegetables in a safe and sanitary environment. Plastic trays are used to grow seedlings, and these are often watered using reusable plastic irrigation systems. Greenhouse covers, also made from reusable plastic, make growing plants that need climate-controlled housing, such as tomatoes or citrus fruits, safe and hygienic.

When it comes to harvesting product, plastic containers make it easier for farmers to store and transport their crops safely. Cardboard or wooden pallets can be hard to sanitize and are prone to absorbing moisture, while plastic is non-porous and can easily be cleaned after each use.

Processing and Distributing

Processing fresh produce, including fruits, vegetables and other crops, involves sorting them ready to be shipped off for use in various products such as ready meals, sauces and canned goods. Some will be sold whole, but the majority will meet customers in various different forms, so they are sorted and stored in a selection of reusable plastic food handling containers, such as IBCs, prior to being distributed to factories and stores.

Distribution is the part of the supply chain where single-use plastics get involved. The products can be transported on plastic pallets and crates, which are reusable, but they are delivered to customers in single-use packaging. As DeMaso of Lipman Family Farms explains:

“Single-use plastic is hard to get rid of when sending to consumers in the produce industry. We need to make sure food safety and sanitation are on-point, so we’re not trading contaminants. Disposable plastic is a problem, [so] it’s a matter of making sure we are using as little as possible.”

Making the Food Supply Chain More Sustainable

As this article highlights, the main issue the food supply chain faces when it comes to sustainability is its reliance at the end of the process on single-use plastic packaging. Justin Bean, the Business Development and Sales Manager at Reusable Transport Packaging, believes that reusable food packaging is the future, and that food producers should embrace it throughout their supply chain. This approach will help to reduce the food supply chain’s reliance on single-use plastics.

“Farmers still spend a lot of money on single-use corrugated and or single-use plastics for distribution to retailers. Our pay per use or milkman model allows users to cut out single-use packaging waste, save money, and use a better RTP (Reusable Transport Package).”

A move towards reusable plastic packaging throughout the food supply chain will allow the market to reduce its impact on the environment and still keep food fresh and affordable. It’s safe to say that these revolutionary products are the future of the food supply chain.

___________________________________________________________________

Reusable Transport Packaging is a re-seller, master distributor, and custom manufacturer of the broadest range of returnable and reusable plastic packaging available today. We carry thousands of products and boast an inventory that is readily available, with national and international coverage.

The post Reusable Plastics: The Unsung Heroes Of The Food Supply Chain appeared first on Global Trade Magazine.

The revenue of the MDF market in the European Union amounted to $5.3B in 2018. 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 +5.5% over the period from 2013 to 2018; the trend pattern remained consistent, with only minor fluctuations in certain years. The pace of growth appeared the most rapid in 2018 when the market value increased by 12% y-o-y. In that year, the market attained its peak level and is likely to continue its growth in the immediate term.

Consumption by Country

Poland (3.3M cubic meters) constituted the country with the largest volume of MDF consumption, accounting for 28% of total volume. Moreover, MDF consumption in Poland exceeded the figures recorded by the second-largest consumer, Italy (1.3M cubic meters), threefold. The third position in this ranking was occupied by the UK (1.3M cubic meters), with a 11% share.

In Poland, MDF consumption expanded at an average annual rate of +6.6% over the period from 2013-2018. In the other countries, the average annual rates were as follows: Italy (+7.5% per year) and the UK (+2.7% per year).

In value terms, the largest MDF markets in the European Union were Poland ($1.3B), Italy ($713M) and the UK ($657M), together accounting for 50% of the total market. France, Spain, Germany, the Netherlands, Romania, Portugal, Austria, Sweden and Hungary lagged somewhat behind, together accounting for a further 39%.

In 2018, the highest levels of MDF per capita consumption was registered in Poland (87 cubic meters per 1000 persons), followed by Portugal (38 cubic meters per 1000 persons), Romania (29 cubic meters per 1000 persons) and Austria (28 cubic meters per 1000 persons), while the world average per capita consumption of MDF was estimated at 23 cubic meters per 1000 persons.

Market Forecast to 2030

Driven by increasing demand for MDF in the European Union, the market is expected to continue an upward consumption trend over the next decade. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +2.4% for the period from 2018 to 2030, which is projected to bring the market volume to 16M cubic meters by the end of 2030.

Production in the EU

The volume of MDF production totaled 13M cubic meters in 2018, remaining constant against the previous year. The total output increased at an average annual rate of +2.7% from 2013 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2015 with an increase of 8.4% y-o-y. The volume of MDF production peaked at 13M cubic meters in 2017, leveling off in the following year.

Production by Country

Poland (3.6M cubic meters) remains the largest MDF producing country in the European Union, accounting for 28% of total volume. Moreover, MDF production in Poland exceeded the figures recorded by the second-largest producer, Spain (1.5M cubic meters), twofold. The third position in this ranking was occupied by Germany (1.5M cubic meters), with a 11% share.

In Poland, MDF production expanded at an average annual rate of +4.8% over the period from 2013-2018. In Spain, the average annual rates stood at +6.3% per year, while in Germany, the volume of production practically mirrored its outset level of 2013.

Exports in the EU

In 2018, the amount of MDF exported in the European Union amounted to 6.5M cubic meters, remaining relatively unchanged against the previous year. Overall, MDF exports, however, continue to indicate a relatively flat trend pattern. The pace of growth appeared the most rapid in 2016 when exports increased by 3.3% y-o-y. In that year, MDF exports attained their peak of 6.7M cubic meters. From 2017 to 2018, the growth of mdf exports failed to regain its momentum. In value terms, MDF exports amounted to $3.3B (IndexBox estimates) in 2018.

Exports by Country

In 2018, Germany (1.5M cubic meters), distantly followed by Belgium (1,012K cubic meters), Poland (682K cubic meters), Spain (643K cubic meters), France (436K cubic meters), Austria (404K cubic meters) and Ireland (322K cubic meters) were the major exporters of MDF , together comprising 77% of total exports. Romania (261K cubic meters), Portugal (259K cubic meters), Italy (218K cubic meters), Hungary (185K cubic meters) and Slovenia (136K cubic meters) followed a long way behind the leaders.

From 2013 to 2018, the most notable rate of growth in terms of exports, amongst the main exporting countries, was attained by France, while exports for the other leaders experienced more modest paces of growth.

In value terms, the largest MDF supplying countries in the European Union were Germany ($854M), Belgium ($565M) and Austria ($317M), with a combined 53% share of total exports. These countries were followed by Spain, Poland, France, Ireland, Italy, Portugal, Romania, Hungary and Slovenia, which together accounted for a further 39%.

Export Prices by Country

The MDF export price in the European Union stood at $503 per cubic meter in 2018, picking up by 7% against the previous year. Over the period under review, the export prices for MDF reached their maximum in 2014; however, from 2015 to 2018, export prices remained at a lower figure.

Prices varied noticeably by the country of origin; the country with the highest price was Austria ($784 per cubic meter), while Romania ($292 per cubic meter) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was attained by Italy, while the other leaders experienced more modest paces of growth.

Imports in the EU

In 2018, approx. 5.3M cubic meters of MDF were imported in the European Union; going up by 5.3% against the previous year. The total import volume increased at an average annual rate of +5.2% from 2013 to 2018; the trend pattern remained relatively stable, with only minor fluctuations being observed throughout the analyzed period. The growth pace was the most rapid in 2017 with an increase of 8.6% against the previous year. The volume of imports peaked in 2018 and are expected to retain its growth in the immediate term. In value terms, MDF imports stood at $2.6B (IndexBox estimates) in 2018.

Imports by Country

The countries with the highest levels of MDF imports in 2018 were Italy (599K cubic meters), the UK (570K cubic meters), the Netherlands (469K cubic meters), Germany (463K cubic meters), France (433K cubic meters), Poland (411K cubic meters), Belgium (335K cubic meters), Portugal (269K cubic meters), Spain (249K cubic meters), Sweden (212K cubic meters) and Romania (201K cubic meters), together acoounting for 80% of total import.

From 2013 to 2018, the most notable rate of growth in terms of imports, amongst the main importing countries, was attained by Poland, while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest MDF importing markets in the European Union were the UK ($338M), Germany ($269M) and Italy ($255M), with a combined 33% share of total imports. France, the Netherlands, Spain, Poland, Belgium, Sweden, Portugal, Romania and Austria lagged somewhat behind, together accounting for a further 49%.

Import Prices by Country

The MDF import price in the European Union stood at $492 per cubic meter in 2018, rising by 4.9% against the previous year. Over the period under review, the mdf import price, however, continues to indicate a slight curtailment.

Prices varied noticeably by the country of destination; the country with the highest price was the UK ($593 per cubic meter), while Poland ($320 per cubic meter) was amongst the lowest.

From 2013 to 2018, the most notable rate of growth in terms of prices was attained by Spain, while the other leaders experienced more modest paces of growth.

Source: IndexBox AI Platform

The post The EU MDF Market to Post Moderate But Steady Growth appeared first on Global Trade Magazine.

Every shipment delay can turn out to be harmful to you, whether you are a trader or just an individual trying to send goods overseas. And customs brokers are there to help your shipment avoid latency and to clear the goods you want to have shipped from all ports and officials.

So, what kind of traits should you look for when searching for a reliable freight forwarder? Let’s take a look at some of the things you should pay attention to.

Experienced customs clearing agents should be able to handle every organizational challenge

One of the most significant traits of reliable customs clearance agents is the organizational skills they possess. Your customs brokers need to be organized and able to handle each and every piece of shipping documentation. All of the services they offer should be tackled efficiently and in an organized manner. You, as a client, will be the one who pays the ultimate price if anything during the shipping and clearance process goes wrong and not according to initial plans. Overseas freight forwarding is a serious endeavor and any disorganization may cause great problems. Your goods might even end up being shipped to the wrong country!

Experienced and reliable companies offer insurance for issues such as this one. However, there’s no need to waste any time or money on this tiresome actions. All you need to do is make sure your customs clearance agents don’t lack organizational skills and experience.

Before you hire a customs clearance agent:

Make sure they have a proper license

The customs broker you hire needs to be licensed and approved by the respective country’s government. Naturally, the set of policies, regulations, and rules that are necessary for someone to be a licensed customs clearance agent can vary from one country to another. If we take a look at the US Customs and Border Protection Agency, we can see that it has a set of strict rules and policies. So in order to make your freight forwarding process seamless, choosing an agent that has the necessary licenses.

Your customs clearance agent should go through the right training process

Just like in every industry, customs clearance requires trained professionals. In order to possess all the necessary knowledge and skills to perform their duties, customs brokers need to undergo proper training process. Being a reliable customs clearance agent means being familiar with all the rules and regulations. Also, they should be familiar with trade-related information and understand all the mandatory rules.

Your reliable agent should be updated with the most recent changes in freight forwarding policies

Whether you’ve been aware of this or not, freight forwarding and shipping policies can be really complicated. They are known to be able to cause many headaches to customs clearance agents. So, in order to ensure your shipment has a seamless clearance process, you need to hire agents who keep track of these rules and stay updated with the latest changes in freight forwarding policies and rules. A well-connected and experienced customs broker should have no issues with this requirement.

Whatever goods you need to have forwarded, your agent should have the necessary knowledge about it

No matter what line of industry you are a part of, your agent needs to have knowledge about it. In order to provide you with a professional piece of advice about your shipments and merchandise, your chosen customs clearance agent ought to be well-informed about the type of goods you are having forwarded. Since they have so many responsibilities when it comes to your merchandise, they need to know essential information about it.

There are certainly many benefits of hiring responsible, experienced and reliable customs clearance agents. But you need to be careful and choose the right one – your goods and the entire process of your shipment may become jeopardized if you make the wrong choice. So, try not to rush things. Take your time and make sure your agent has all the traits that mark a reliable customs broker. You won’t regret doing so.

___________________________________________________________

Jamie Lynch is a blogger and freelance content writer. His years of experience working with international companies such as Kokusai Express Japan have enabled him to share his knowledge about freight forwarding and international shipping.

The post Traits of Reliable Customs Clearance Agents appeared first on Global Trade Magazine.

Using data from the World Economic Forum’s ‘Readiness for the Future of Production’ report, RS Components have taken a look at the countries that are leading the way when it comes to driving production forward. The six main drivers are ‘Technology & Innovation’, ‘Human Capital’, ‘Global Trade & Investment’, ‘Institutional Framework’, ‘Sustainable Resources’, and ‘Demand Environment’. See how each country compares when it comes to being ready to produce more products, technologies, and goods here.

The 21st century is a truly digital age, with technology now intertwined and cemented into both our personal and professional lives. Over the last two decades, in particular, technology has become increasingly advanced and has seen the emergence of the Fourth Industrial Revolution. Complicated and impressive technologies such as artificial intelligence (AI), robotics, the Internet of Things (IoT), 3D printing, genetic engineering, and quantum computing have all emerged and are being used across the globe in a variety of industries, businesses and processes.

As a result of the new technological age, the speed, efficiency, and accuracy of production levels have improved astronomically, with less room for human error as machinery takes over, making production levels much faster and hassle-free.  

With the rise of these advancements, it is important for countries and businesses across all industries to be tapping into these changes to keep up with the future of production. But which countries are leading the way?

RS Components have produced a graphic analyzing data from the World Economic Forum’s Readiness for the Future of Production report, to reveal the countries leading the way when it comes to driving production forward. With each country analyzed by a series of metrics including global trade and investment, institutional framework, sustainable resources, demand environment, and emerging technologies, the top 10 countries leading production levels forward have been scored out of 10.

The top 10 countries driving the future of production include:

The US takes the crown as the leading country in the world driving the future of production forward. Scoring at the top of the leaderboard across all metrics excluding Sustainable Resources and Institutional Framework, the US holds an overall score of 8.16 out of 10. The US is renowned for its innovation and holds an advanced, connected and secure technological platform that allows production to drive forward in the most efficient way possible.

Singapore ranks as the second country driving the future of production and the UK sits at fourth place with a score of 7.84. Singapore sits as one of the world’s leading chemical manufacturing sites, with over 100 global petroleum, petrochemical and specialty chemical companies situated on 12 square miles of land. Singapore today sits as the world’s fifth-largest refinery export hub and amongst the top 10 global chemical hubs by export volume. Involved in these systems includes advancements in manufacturing from robots, to predictive analytics and artificial intelligence. Singapore, like the US, is a key driver in testing, experimenting and trialing the latest technologies. In addition, manufacturing continues to contribute around 20% to Singapore’s GDP.

The importance of having the right technological foundations 

In order for production levels to thrive, it is crucial that technological foundations are cemented in supply chains across the globe. For example, in a warehouse, the speed and availability of the internet is crucial when the Internet of Things is being adopted on the factory floor. In addition, it is also greatly important for businesses and industries to have strong, connected cybersecurity systems to ensure digital security is maintained to a high standard. Having the technological foundations of this, like the US, allows the nation to drive forward technologies to increase production levels.

In addition, in order to ensure these new innovations are implemented effectively, it is crucial that employees have a good understanding of the technology they are interacting with on a daily basis, as the skills required of workers will evolve with the new advancements.

Combined, industries and countries will be able to adapt rapidly emerging technologies into their production lives, which will have a global impact on both businesses and consumers across the world.

The post The Countries Leading the Way in the Future of Production appeared first on Global Trade Magazine.

The report shows that the majority (83%) of business leaders interviewed believe that global economic uncertainty will stay at its current elevated levels (30%) or get worse (53%) in the coming year. However, 69% of business leaders polled are cautiously optimistic about the coming year, as the report shows that resilient cities—defined as those that outperform their countries during economic downturns—have Foreign Direct Investment (FDI) as a percentage of GDP twice as high as non-resilient cities.

Despite their differences in location and culture, resilient cities have a set of commonalities that allow trade and investment to thrive. These characteristics include diversified economies and strong service sectors. In fact, resilient cities on average saw the share of services in GDP grow by 3.3% over the last five years; more than double the pace of non-resilient cities. Their populations are largely educated, with many inhabitants having college or other advanced degrees, as well as diverse, with higher rates of foreign citizens. On average, foreign citizens represent 11.6% of resilient cities’ populations, which is one-quarter higher than that of non-resilient cities. These cities also tend to have strong transportation infrastructures, including both airports and public transit options. 

Building Resilience 

The report also identified specific tactics used by resilient cities that organizations, including business and civic leaders looking to improve their own city’s resilience, can mirror. 

In resilient cities, key stakeholders are prioritizing direct diplomacy, meeting face-to-face to navigate obstacles created by regional or national governments. By cutting through political red tape, organizations have been able to create new meaningful relationships with each other and strengthen existing ties. The ability to engage in a direct dialogue creates efficient business interactions that are beneficial to all parties. For example, World Trade Center (WTC) Arkansas has organized multiple diplomatic trade missions with Mexico. As a result, its exports to Mexico are growing 3.6 times faster than to any other country. 

Cities are also proactively building programs to attract and retain skilled foreign citizens. For example, Twente, located in the eastern Netherlands, is evolving from a region focused on machine-building and textiles to one with an economy driven by high-tech systems. To retain young, skilled workers from across the globe, WTC Twente created an Expat Center that offers a range of services, including Dutch language courses, visas and work permits, housing, and support for families, as well as social events with the goal of enticing technically-skilled foreign workers and their families to integrate into the community for the long term.

Turning Obstacles into Opportunity

Economic turmoil affects everyone, but not always in the same way. For some, the current geopolitical reality presents opportunity. City leaders are adapting to these geopolitical changes and establishing themselves as cost-efficient and low-risk trade and investment partners to capitalize on the situation. FDI is being redirected towards these agile cities who have recognized the advantages created by this global uncertainty, and supply chains are shifting and realigning based on new benefits. Competition for FDI is escalating (global FDI slowed 27% over the last year, according to the OECD) and the private and public sectors need to work hand-in-hand to create attractive fiscal and tax environments, and institute policies that will attract business. 

Cities are also increasingly investing in both high-tech industries, and SMEs to ensure they are able to attract FDI at a time when this investment comes at a premium. These high-tech industries will lead to future growth and play a central role in the next industrial revolution. Additionally, partnerships with major research institutions are being used to create new technology and modernize existing tech. For instance, in Delaware, private agriculture technology or “ag-tech” companies have partnered with universities to pioneer better technology in seeding, pest management, antibiotic reduction, and biopharmaceuticals. 

SMEs are well suited to adapt quickly in the face of change and evolving economic realities, which enables them to capitalize on changing conditions. However, their size can prevent them from competing on a global scale. To combat this, programs that help SMEs move forward given limited resources can be critical in encouraging and nurturing growth opportunities. As an example, WTC Toronto created the Trade Accelerator Program (TAP), a six-week program that connects SMEs with export and business experts to train them on developing export plans fit for the global market. This program has now been adopted by several other WTC members in Canada, including Vancouver and Winnipeg. 

At the moment the global economy is relatively unpredictable, and increasing risks for businesses have made sound strategic business planning more difficult at a time when it is absolutely vital. Knowledge, preparedness, and agility are key traits cities and businesses need to acquire in order to achieve success and growth. Despite the prevailing conditions, with a strategic approach and tactics proven to increase resilience, organizations can optimize current trade and investment opportunities and set themselves up for success now and in the future.

To review the full 2019 WTCA Trade and Investment Report: Navigating Uncertainty, including commentary from WTCA Members, visit www.WTCAReports.org

The post How to Successfully Conduct Global Business During a Time of Geopolitical Instability appeared first on Global Trade Magazine.

2) The growth of the animal logistics industry is about moving everything from dogs and cats to fish–you’d be surprised how many–races horses, performing horses and animal models because, yes, we live in a world where there are now animal models (“Patches drinks mineral water, not flat!”) And perhaps nowhere can one see this growth more clearly than the Frankfurt (Germany) Airport’s Animal Lounge.

3) The Lounge is a 43,000-square-foot animal holding area, the world’s busiest animal airport hub. Celebrating its 10th year of existence and run by Lufthansa, it is equipped with non-slip floors and climate-controlled chambers to help make an animal’s stay as comfortable as possible. There are 60 trained vets and qualified animal handlers on hand around the clock. It handles around 100 million animals annually, ranging from domestic pets to livestock to animals destined for zoos, wild animal parks and the Olympics. They still tell the story about the time the lounge hosted a polar bear on his way back from a photo shoot in the Alps.

4) The success of the Frankfurt Lounge has inspired similar properties at airports around the world, including many in the United States. An outfit called Pet Paradise actually has multiple locations at airports across the nation–Orlando, Houston, Charlotte–with facilities featuring play areas, cat condos, swimming pools and webcams for customers to keep watch over their furry friend(s).

5) As with all things shipped, there was a time in the not too distant past that animals were moved by, well, ships. Ocean travel is especially hard on animals because transit times can take weeks and conditions on board can be trying.

6) Australia is one of the largest exporters of live animals in the world and reported that during the 1980s and ’90s, of the 1.28 million cattle it exported by ship, there was a 3 percent mortality rate. Now that rate for 1.3 million cattle is just 0.12 percent, having a lot to do with improved ship conditions and increasing numbers of animals being moved by air where trips are much shorter and conditions more manageable to monitor.

7) That doesn’t mean air travel doesn’t have its own dangerous issues, sometimes for the humans transporting the animals. A few years ago, a cargo flight from Chicago O’Hare Airport to Brussels National Airport was carrying 390 cows on the main deck. While cruising over the Irish Sea the crew received a warning that there was a fire on the main deck. When crew members went onto the main deck, they saw no sign of smoke or fire. Still, the crew made an emergency landing at London Heathrow Airport where, again, there was no evidence of smoke or fire. After an investigation, it was determined that the presence of the cattle led to higher than normal levels of humidity and methane–burp–that caused the warning.

8) The most common animal shipped may surprise you: It’s fish. Ornamental fish is estimated to be a $3 billion industry worldwide, more than half of that from Asia, where the sector plays a major part in many country’s economy. Of the 110 million animals that go through Frankfurt, about 80 million are fish.

9) As with any industry, popularity breeds issues and the animal industry has its fair share, most especially the illegal animal trade. National Geographic has estimated that wildlife trafficking could be the world’s most profitable form of illegal trade. That has moved numerous members of the transportation and logistics industry to take action to do their part to end the practice.

10) In 2015, representatives from logistics and transportation companies operating in China made a public declaration pledging zero tolerance toward the illegal wildlife trade. Companies included DHL, FedEx and SF Express, accounting for the majority of the Chinese courier market.

11) That same year, the Declaration of the United for Wildlife International Taskforce on the Transportation of Illegal Wildlife Products was signed by some 40 corporations and organizations, including Maersk, IATA and the World Customs Organization. Following the high profile killing of Cecil the lion in July of 2015, Delta Airlines banned all lion, leopard, elephant, rhinoceros and buffalo trophies in the cargo holds. United and American Airlines later followed suit.

12) Frankfurt’s Lounge handles its share of exotic wild animals but before animals are released, officials ensure that both buyer and seller have all veterinary, customs and exotic-animal permits in order. Also, to minimize stress on animals like tigers, the beasts are able to relax in a quiet species-appropriate space in the lounge and board at the last minute via a special, air-conditioned, soundproofed vehicle to protect them. Sound familiar? Yeah, didn’t think so … um, so, you gonna eat those peanuts or what?

The post ANIMAL PLANET appeared first on Global Trade Magazine.

The post TIME FOR WINE appeared first on Global Trade Magazine.