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

January 31, 2015

Three Challenges of the Freight Forwarding Sector in 2015, According to Pangea

Filed under: Logistics,News,Newsletter — admin @ 11:36 am

(null)The decline of air transportation, the sulphur rate for ships and the railway plans in China will mark the new year. Pangea Logistics Network (Pangea) has released its forecast for 2015. The international freight network of independent freight forwarders said that the freight forwarding sector is facing 2015 with optimism due to the good perspectives of international trade, the fall in oil prices, and the recovery of the European and North-American markets. However, the freight forwarding companies that wish to take advantage of the opportunities must be capable of responding to the three challenges that the global freight forwarding network Pangea has identified from the analyses of consulting firms, publications and experts.

Air transportation will continue to decline
The sulphur rate will increase sea transportation prices
Cheap oil and the new “Silk routes” will revitalise ground transportation

[Read more… Curated from Logistics Insight Asia]


Fast and Free Shipping: Can Retailers Afford It?

Filed under: News,Newsletter,Supply Chain Management — admin @ 11:35 am

PodcastRetailers are scrambling to offer free shipping for online orders. Is it a money-losing proposition?

E-tailing has become so competitive that many online sellers today consider it essential to provide free shipping on many, if not all, of their shipments. At the same time, they are speeding up delivery to the point where customers have come to expect a one- to two-day turnaround on orders. How can both of those perks be sustained, in a business where margins are so thin? Is it simply a game of chicken, with rivals racing one another to the edge of the cliff?

[Read more… Curated from Supply Chain Brain]


January 30, 2015

Mobile Technology Impacts Lives – and Supply Chains – Around the World

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

Mobile technologyGlobally, mobile technology has emerged as a primary engine of economic growth, stimulating enormous private-sector spending in both R&D and infrastructure, and profoundly changing daily lives—everywhere.

Dramatic performance improvements in mobile communications standards have propelled mobile to become the fastest adopted technology of all time.

Mobile is connecting and empowering consumers—everywhere.

Small and medium-sized enterprises (SMEs) that adopt advanced mobile technologies are the fastest growing.

Mobile technologies are fueling economic growth, driving recovery from the global recession – The mobile value chain generated almost $3.3 trillion in revenue globally in 2014 and is directly responsible for 11 million jobs.

The mobile industry has made massive investment in new infrastructure and R&D. To ensure that the mobile revolution continues and expands, policymakers must support an environment that fosters innovation and investment. Future growth of mobile depends on continuing the policies that enabled the industry to get where it is today.

[Read more… Curated from BCG Perspectives via via Supply Chain Brain]


January 27, 2015

Manufacturing Capacity Is Leaving China. But Where’s It Going?

Filed under: News,Newsletter,Supply Chain Management — admin @ 11:41 am

Chinese FlagWe’ve heard it before: manufacturing is leaving China and coming back to the West. But the reality isn’t that simple.

A new study from the University of Tennessee on outsourcing and global supply chains finds that manufacturing capacity is indeed shifting away from China and other parts of Asia. The rush to those countries was motivated by a desire to slash production costs through the use of cheap labor.

Original equipment manufacturers, however, soon found out that China wasn’t the panacea that they had expected. They hadn’t taken into account costs associated with the extra distance, and the difficulty of sustaining the flow of product to markets in the West. In many cases, they were forced to keep expensive safety stock on hand, as protection against inevitable disruptions in their lengthy supply chains.

The results validate the authors’ contention that regionalization is on the rise, driven in part by the rising cost of manufacturing offshore. In China alone, the price of labor has experienced double-digit increases over the past 10 years.

[Read more… Curated from Supply Chain Brain]


January 23, 2015

Artificial Intelligence Meets Inventory Optimisation

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

Artificial IntelligenceInventory optimisation vendors are starting to leverage artificial intelligence as a means to optimize complex supply chains for large stock holdings and multiple stocking locations, according to the Technology Value Matrix for Inventory Optimization released by Nucleus Research.

“IO meets AI to deliver better value and the best ROI,” said Ian Campbell, CEO of Nucleus Research, a provider of investigative, case-based technology research and advisory services. “Our latest value matrix shows early leaders in this category embracing artificial intelligence as a powerful way to differentiate their offerings and deliver better solutions. Vendors that ignore this trend risk losing market share to savvier AI-enabled applications.”

[Read more… Curated from Supply Chain Brain]


January 21, 2015

Ocean Piracy Down Overall Around the World, But Continues to Rise in Southeast Asia

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

PiracyAttacks against small tankers off South East Asia’s coasts caused a rise in global ship hijackings, up to 21 in 2014 from 12 in 2013, despite piracy at sea falling to its lowest level in eight years, the International Chamber of Commerce International Maritime Bureau (IMB) has revealed. Pirates took 442 crew members hostage, compared with 304 in 2013.

IMB’s annual piracy report shows 245 incidents were recorded worldwide in 2014 – a 44% drop since Somali piracy peaked in 2011. Somali pirates were responsible for 11 attacks, all of which were thwarted. However, IMB warns shipmasters to follow the industry’s Best Management Practices, as the threat of Somali piracy has not been eliminated.

Worldwide, 21 vessels were hijacked last year, 183 were boarded, and 13 fired upon. Pirates killed four crewmembers, injured 13 and kidnapped nine from their vessels.

[Read more… Curated from Maritime Executive]


January 17, 2015

Southeast Asia Punches Above its Weight in Global Connectedness, DHL Study Reveals

Filed under: Logistics,News,Newsletter,Singapore — admin @ 11:17 am

Southeast_AsiaDHL, the global logistics leader, has released the third edition of its Global Connectedness Index (GCI) revealing a recovery in global connectedness to pre-financial crisis levels and ranking five Southeast Asian economies – Malaysia, Vietnam, Cambodia, Hong Kong SAR, and Singapore – as top global connectedness outperformers relative to their size and levels of economic development.

Singapore ranks third most connected economy in the world – only non-European country in the top 10.

Five Southeast Asian economies – Malaysia, Vietnam, Cambodia, Hong Kong SAR, and Singapore – stand out for their high depth scores relative to the structural characteristics of their size and level of economic development. The GCI notes that countries in this region have particularly high trade pillar scores reflecting their integration into cross-country supply chains as well as national policies that have boosted their depth scores. The performance of Cambodia and Vietnam are particularly striking as both are lower middle-income countries.

[Read more… Curated from Yahoo Finance]


January 14, 2015

Building an Effective Supply Chain Team

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

management-2-1188235-mA successful supply chain team needs just the right mix of talent, skills, and personalities, not to mention a clear mission, the freedom to pursue it, and the structure to succeed.

Whether it’s assembled to lead a single division or the entire organization, or whether it’s brought together for a short-term assignment or a long-term project, an effective supply chain team needs the right mix of talent, skills, and personalities. It also needs a clear mission, the freedom to pursue it, and the structure to succeed.

That’s the ideal anyway. But all too often, it’s hard to achieve. Just ask Gregg Richard Macaluso, an instructor specializing in supply chain strategy and innovation at the Leeds School of Business at the University of Colorado in Boulder. When he surveys the state of team performance within the supply chain sector, he sees plenty of room for improvement.

“We’re challenged for a number of reasons,” he says. “And we can do better.”

As a longtime logistics consultant, Macaluso lays that “do-better” challenge right at the feet of company leadership. Too often, he says, senior officers put together teams, task them with a vague challenge, and retreat to the executive suite. Then, if the team reports back with unorganized findings, or solutions to the wrong problems, the executives wonder what went wrong.

A glance in the mirror might offer a succinct answer. “The amount of effective coaching that takes place among the ranks is—not for lack of interest, but for lack of knowing how to communicate—still nascent,” Macaluso says.

In other words, the company’s leadership fails to make its expectations clear, and to provide useful context, forcing team members to consult tea leaves for insight. Without the full picture, one team member might see the task at hand as an engineering assignment, while another views it as a mathematical problem. And both of them might be missing the point. It’s up to senior leadership to make sure everyone is on the same page.

[Read more… Curated from Inbound Logistics]

Leadership is a key session in the KNOW Track at LogiSYM 2015. Check out the agenda here.


Taxman Looks to Take Bite Out of Chinese and Their Businesses No Matter Where in the World They Make Their Money

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

Chinese FlagAs Chinese individuals and companies head overseas in greater numbers, the country’s tax authorities are starting to follow.

China’s tax officials are now demanding that citizens start reporting exactly how much money they earn overseas.

In asking for this information, national and municipal tax agencies in China are quietly beginning to enforce a little-known and widely ignored regulation: Citizens and companies must pay domestic taxes on their entire worldwide incomes, not just on what they earn in China.

The State Administration of Taxation in Beijing has begun a separate campaign to curb tax evasion by Chinese companies as they start to make big overseas investments.

[Read more… Curated from The New York Times]


January 13, 2015

The ‘Single Window’ for Trade Filing Is Finally on the Way

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

infinite-screen-2-7990-mIt’s a government program. It involves technology. And it’s a good thing.

Taken together, those three sentences are bound to trigger intense skepticism, to say the least, within the business community. But when it comes to the single window – a means for traders to submit all regulatory documents electronically, through one portal – they appear to be true.

An executive order, signed by President Obama in February of last year, directs U.S. federal agencies involved in trade to develop an electronic single window by December 2016. The main vehicle for delivering that dream is the Automated Commercial Environment (ACE) of U.S. Customs and Border Protection.

The single window encompasses much more than the requirements of Customs and Border Protection. When fully implemented, it will serve as the conduit for filing with 12 Cabinet departments and 48 regulatory agencies. Traders will only need to submit their data once, and interactions between partner government agencies (PGAs) will take place in near-real time. Data will flow more quickly, and regulators will have an easier time tagging suspect shipments.

[Read more… Curated from Supply Chain Brain]