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LSCMS Blog

Blog for updates and happenings in logistics in the Asia-Pacific region

December 30, 2014

UPS Expects to Handle 4 Million e-commerce Gift Returns

Filed under: Logistics,News,Newsletter,Reverse Logistics — admin @ 11:13 am

16915sWith the uptick in online shopping, UPS expects consumers to return more than 800,000 packages to retailers and merchants during the weekend of National Return Day. By the end of January, UPS predicts that it will have carried 4 million return packages in the U.S.

as internet shopping has grown, no-hassle returns have become essential to the online shopper. Free shipping labels have made it easy to return unwanted gifts.

He said 66 percent of consumers review a retailer’s return policy before making a purchase, and 68 percent said they would complete an online purchase if the retailer offered a free return shipping label.

[Read more… Curated from Air Cargo World]

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Can You Hear Me Now? Faulty Logistics Services Hamper Growth of Ecommerce in India

Filed under: India,News,Newsletter,Supply Chain Management — admin @ 11:13 am

eccommerce-concept-1-1415244-mYou think you’ve had bad customer service buying products online – how about the guy in India who ordered his wife a Samsung smartphone, and the package arrived with only a brick and a bar of soap in it!

Online sales in India are booming, but unhappy customers like Krishnamurthy are more the rule than the exception. Inadequate warehouses, lack of skilled and reliable workers, and too few planes mean online shopping in India is inferior to the shopping experience in the U.S. and China. Krishnamurthy’s rant was shared more than 21,000 times as consumers chimed in with complaints of theft and damaged, lost, or delayed goods from Snapdeal, Bengaluru-based Flipkart.com, and Amazon.com (AMZN), India’s biggest Web stores.

When delivering in the lead up to Diwali, one of the biggest hurdles was a shortage of cargo space on airlines, says Neeraj Aggarwal, Flipkart’s senior director for supply chain. Crates of shipments piled up at airports across India, and delivery companies couldn’t meet schedules. “If you depend completely on air cargo as your only mode of transport, you are going to be asking for trouble,” Aggarwal says.

[Read more… Curated from Business Week]

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December 28, 2014

After-Sales Service, Parts Management to Become More Important to Manufacturers’ Profitability, Report Says

logistics serviceAs manufacturers continue to competitively differentiate themselves within various industry settings, after-sales service will increasingly become more important in their overall business and profitability strategy, according to Business Strategy: Spare Parts Planning for Service Excellence, a report from IDC Manufacturing Insights. In fact, many discrete manufacturers can expect to capture upward of 30 percent of revenue from service and service-based product strategies.

“In the coming years, manufacturers will continue to provide both competitive differentiation and higher margins by bundling or providing added services with products, including product-as-a-service business models where customers pay for product operational uptime and performance, over time,” said Heather Ashton, research manager, Service Innovation and Connected Products, IDC Manufacturing Insights. “[We predict] that by 2020, onboard service revenue will outpace product-related revenue by a factor of two. Customers benefit from such service programs through optimized usage of equipment and products, higher productivity and decreased support costs.”

[Read more… Curated from Supply Chain Brain]

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December 24, 2014

Mexico, Brazil and Argentina Bright Spots in Overall Dim Manufacturing Picture in Latin America This Year

Filed under: Economics,News,Newsletter,Supply Chain Management — admin @ 11:11 am

COGS.JPGA manufacturing production index for Latin America as a whole is expected to show this year experienced no growth – instead, it is forecast to decline a slight 0.1 percent. This challenging regional picture masks sizable differences across countries, however. The poor performance of the index published by the Manufacturers’ Alliance for Productivity and Innovation Foundation is explained by recessions in Brazil and Argentina that have offset the good performance of Mexican factories.

The MAPI Foundation’s Latin America manufacturing index is expected to rise a modest 1.8 percent in 2015 (a downward revision from the previous forecast of 2.1 percent). There is confidence that Mexico will remain the manufacturing growth leader in the region. Demand from U.S. factories will fuel manufacturing growth in Mexico, although homegrown political factors will put a ceiling on Mexico’s expansion.

[Read more… Curated from Supply Chain Brain]

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December 23, 2014

Holiday Retail Madness: Who Will Pay for ‘Free’ Shipping?

Filed under: Logistics,News,Newsletter,Supply Chain Management — admin @ 11:08 am

free_shipping_iconThere was a time, not too long ago, when retail industry analysts were predicting that online merchandisers would soon stop offering free shipping on orders. How wrong they were.

The trend has clearly gone in the opposite direction. Today, free shipping appears to be the price of admission for many e-tailers. Granted, Amazon.com has begun to monetize its expedited delivery option with a $99 annual fee for its Amazon Prime service, which qualifies members for “free” two-day shipping on many orders. The online giant also offers outright free shipping on orders of more than $35. Other online sellers, especially those with brick-and-mortar stores, are matching Amazon under certain conditions, usually tied to the value of the order. They include Nordstrom, Inc., Best Buy Co. Inc., Barnes & Noble, Dick’s Sporting Goods and Old Navy.

Fair enough. But the offer of free shipping has implications that resonate throughout the supply chain. Retailers need to become more efficient in their distribution methods than ever before. (Buyers aren’t likely to be satisfied with free delivery if it takes a week or more to receive their purchases.) The model for fulfilling online orders is far more complex and demanding than the one that keeps stores shelves stocked. It’s a matter of picking and expediting individual orders, instead of loading up pallets for shipment to the store.

[Read more… Curated from Supply Chain Brain]

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December 21, 2014

Businesses Aren’t Ready for Radical Change in the Global Workforce

Filed under: News,Newsletter,Supply Chain Management — admin @ 11:14 am

PodcastFive years from now, the global work environment will look a lot different than it does today. But many companies aren’t prepared to deal with the change.

Jettison those full-time employees who have spent their entire working lives with the same company. Bring in the independent contractors and contingent employees who are making up an increasing share of the workforce. That’s the picture painted by Workforce 2020, a new study by Oxford Economics with support from SAP SE. The survey covers more than 5,400 employees and executives in 27 countries. What it finds is a radical shift in the way that businesses are calling on managers and employees to perform key tasks.

[Listen to the podcast at Supply Chain Brain]

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December 18, 2014

Adapting Your Supply Chain for the Future & Now

Filed under: News,Newsletter,Supply Chain Management — admin @ 11:10 am

Time to AdaptThe best way shippers and consignees can accommodate speed and reliability is to practice demand-driven logistics.

Supply chain practitioners are adept at identifying and adapting to changes in the real world, both in the long and short term. Two examples: One company is preparing its supply chain process for an anticipated explosion of products that don’t exist yet, and many logistics and supply chain practitioners are dealing with satisfying consumer demand for instant delivery gratification because of the new “shipment impatience” phenomenon.

[Read more… Curated from Inbound Logistics]

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Demand Sensing Needed to Break Through ‘Demand Planning Performance Ceiling,’ Study Suggests

Filed under: News,Newsletter,Supply Chain Management — admin @ 11:10 am

forecastingSo-called “growth through innovation” strategies continue to drive supply chain complexity at a rapid pace, making it harder for businesses to forecast, according to the 2014 Terra Technology Forecasting Benchmark Study. Data shows that demand planning has reached a performance ceiling with forecast value-added declining for a second year.

Robert F. Byrne, CEO of Terra Technology, says, “The steady stream of new product introductions combined with economic volatility and changing consumer preferences renders traditional forecasting methods obsolete. Our study confirms demand sensing as an enabling technology to break through the demand planning performance ceiling.”

[Read more… Curated from Supply Chain Brain]

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December 15, 2014

Mobility, collaboration and transportation: key supply chain trends for 2015

Filed under: Logistics,News,Newsletter — admin @ 1:40 pm

trends-imageMobility and real-time connected businesses, collaboration and transportation will be the key focus for supply chain projects in 2015 states a report by supply chain mobility specialists Rocket Consulting.

Mobility and real-time connected businesses: Rocket Consulting is seeing growing demand for mobility related projects in the B2B and B2C space that connect businesses following the launch of its mobile logistics management application LogiScope in April 2014. LogiScope provides end-to-end delivery and returns management information in real and right time to inform decision-making, improve customer service and drive down costs.

In addition, the data derived from mobile devices and connected businesses provides a feed for predictive analytics. For example, equipment and vehicle breakdowns can be anticipated, or a series of events that needs further investigation flagged. This enables organisations to convert unplanned, expensive maintenance into planned downtime, thereby improving efficiency and cost-effectiveness.

[Read more… Supply Chain Digital]

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December 14, 2014

Deutsche Post DHL Acquires StreetScooter

StreetScooterDeutsche Post DHL signed an agreement to acquire StreetScooter GmbH, a former start-up that is committed to the mission of developing affordable electric vehicles.

As a result of the agreement, which is still subject to antitrust approval, the company will also acquire the development and production rights to vehicles as well as the employees of StreetScooter GmbH. StreetScooter GmbH is a spin-off of RWTH Aachen and a consortium of approximately 80 industrial companies in the automotive industry and related sectors. It was established in 2010 and employs a staff of 70 at its base in Aachen. Since 2013, approx. 200 StreetScooters have been produced annually at the former Talbot/Bombardier plant in Aachen.

[Read more… From DHL]

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