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Is it time for shipping industry’s digital transformation?
With less than 40% of commercial shipping fleet using even basic software service, you might think it is too premature to discuss digital transformation. However, change usually happens when no one is expecting it. Sea freight forwarding has stayed the same for too long as compared to the land and air logistics and this is an opportune time for shipping to undergo a transformation to match the customer expectations.
Even though more than 80% of all commercial cargo is transported via sea freight forwarding services, the digitization and visibility as compared to other modes of transportation are very low. All this is set to change as technology enhancement makes it possible to have better connectivity and tap opportunities that were missing earlier.
Multi location sourcing to be the new reality in manufacturing sector?
The short answer to this is Yes.
The pandemic has made businesses rethink their strategies and supply chains world over. While this is true for every industry, the shift is already visible in the manufacturing sector as they are seriously thinking and working towards multi-location sourcing.
Why we think multi-location sourcing will be a new reality in manufacturing? For years, China has been the global factory for goods, however the pandemic highlighted the world dependence of one source and country, which impacted the business operations world-over. This made businesses rethink their strategies and plans. The pandemic disrupted the status quo.
Cold Chain Logistics Complexities and Possible solutions
Do you remember the news article where governments around the world were struggling to find ways and means to store and transport COVID vaccines at nearly -70 C?
Problems like these brought the focus back on effective and efficient cold chain logistics. While the pharma companies developed short-term solutions like creating special transport boxes to ensure the perfect temperatures, these aren’t sustainable for international shipments.
Over the past couple of years, the logistics industry has focused on developing the cold chain segment. According to Allied Market Research, the global cold chain logistics market was valued at $202.17 billion in 2020, and is projected to reach $782.27 billion by 2030, registering a CAGR of 14.6% from 2021 to 2030.
7 ways to identify a credible freight & supply chain solution provider
Finding a credible freight forwarder is important for any business, as timely delivery will affect the business's reputation and revenues. In a globalized business environment wherein, the manufacturing of a product depends on sourcing multiple parts from various regions and countries, on-time raw material delivery and shipping of finished goods under specific conditions has become crucial to manufacturing organizations.
A logistics and supply chain user at the decision-making table is no more a facilitator in planning and organizing controlled flow of goods but plays the role of a match winner in driving the businesses’ overall manufacturing and distribution pipeline.
New Year, New Hope: What should freight forwarders prepare for in 2022
The New Year might feel like a repeat of what we saw in 2021. The new variant Omicron is surging across nations crippling healthcare, keeping employees away from work and forcing new restrictions and lockdowns. While the problems might be similar, but this time around freight forwarders seem to be better prepared.
The decision makers in the supply chain industry have been concerned about various issues but this time around they seem to have a solid strategy to reduce the impact on global supply-chain industry.
Reflections 2021 – A year that was for the supply chain industry
Yet another year of great disruptions comes to an end. At the start of 2021, the supply chain industry faced with unprecedented crises that revolved around excessive demand, poor supply and unavailability of shipping containers. It impacted trade world over and now even as we near the end of 2021, it is obvious that the crises is far from over.
Looking back, there are a few lessons to be learnt and new insights that can help the supply chain industry equip themselves better for the coming years. Our current post attempts to understand these learnings by looking back and reflecting at important things that shaped the year 2021 for logistics industry.
Will shipping lines kill the sea freight forwarding business?
The Shipping lines v/s sea freight forwarders, a scenario that headlines major sea freight forwarders discussion is not devoid of merit. Economic growth across the world fueled the meteoric rise of supply chain in general and sea freight in particular. While shipping lines and sea freight forwarders are the part of the same ecosystem, current trends seem to suggest that shipping lines want a bigger share in the profits.
Is the fear of shipping lines pushing sea freight forwarders out of business real?
There are enough indications for sea freight forwarders to be cautious. Let us look at some of the factors that are worrying sea freight forwarders so much.
What is the future of air freight forwarding operations?
The V shaped economic recovery, soaring sea freight rates and the quick delivery solutions that air freight forwarding option can provide has made it a lucrative option for businesses world-over. But is this a temporary correction or will this change the air freight industry forever?
Looking at the surging costs, it is easy to assume that this question is tad too late; however the current air cargo rush and the resulting higher costs are a result of multiple factors and that is the focus of our current blogpost.
Top 7 Trends Shaping the Future of Supply Chain Management
It is said that ‘Every crisis is an opportunity.’ Covid-19 pandemic is no different. It disrupted the supply chain management industry and hastened the business transformation process. Currently, the supply-chain industry is looking at greater technology integration, effective cross-regional collaboration, optimized pre-fulfilment speed and stronger supply-chain talent to transcend the current crises, galvanize industry 4.0 implementation initiatives and pave way for industry 5.0
7 Trends Shaping the Future of Supply Chain Management
1. Greater emphasis on regional hubs
Global uncertainties like the situation unfolding in Afghanistan, recent US-China tariff wars, natural calamities in various parts of the world etc.
Freight: Fight or Flight?
By Sumit Varma
Citigroup, United States of America, 1999.
The merger between Citicorp and Travelers Insurance, a large corporation that owned and controlled the investment bank Smith Barney, would in many ways alter the course of history in modern day economic growth of nations and its consequences. At the core, the merger which created the vast conglomerate involved with banking, insurance and securities would directly stand against the fabled Glass-Steagall Act of 1933. Simplified, the act came into force after the Wall Street collapse of 1929 wherein, overenthusiastic commercial banks got into investments in stock market, buying stocks in private corporations for resale to public. The pursuits of these institutions in the hunt for abnormal profits more often than not clouded their judgments, eventually leading to the collapse. The Glass- Steagall act made sure that commercial banks and investment banks are kept forever apart.
Cut to the present, the largest financial conglomerate in the world now...
The World of freight forwarding in the past decade (2010-2020) & Covid -19 fall out
By Sumit Varma
The global trade facilitators in the past decade- Freight ForwardersThe global trade facilitators in the past decade- Freight Forwarders
For the first time, a decade later since the global financial crisis of 2008, the estimated $130bn air and sea freight forwarding industry faced the most challenging year culminating one of the most critical yet transformative decades in the years to come.
It’s the airfreight decline for most global forwarders followed up with a marginal increase in sea freight volumes that has clearly led 2019 performances. The continuing consolidation acts through M&A’s has helped some of the traditional European forwarders into a bigger commune. Leading industry analysts projected a real term contraction of business for the first time in little over a decade since the crisis of 2008. The USA- China trade war that has costed lost opportunities in the trans-pacific sector of shipping, followed up with lacklustre performances from export driven economies like Germany & Singapore, lighter movement in high tech, automotive and smart phone segments....