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LSCMS Blog

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

June 20, 2015

Conflict Minerals Disclosure: A Progress Report

PodcastIt’s been about a year since the Securities and Exchange Commission began imposing its rule on the disclosure of conflict materials from the Democratic Republic of Congo in manufactured products. Are companies up to speed?

Mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the rule applies to tin, tantalum, tungsten and gold sourced from mines in the DRC that are controlled by armed gangs. Companies are now required to reveal the presence of those commodities in their products, despite the difficulties of making that assessment in complex, multi-tier supply chains.

[Read more… Curated from Supply Chain Brain]

Conflict Minerals

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June 3, 2015

Maersk Goal to Cut CO2 Emissions 60 Percent Per Container Within Five Years

environmentMaersk Line, the world’s largest container ship operator, has set a “bold target” to reduce CO2 emissions 60 percent per container moved by 2020.

The company has stated that the five year-emission reduction plan will save the climate around 200 million tons of CO2, roughly the amount of emissions of all passenger cars in France over the period of a year.

The announcement comes after Chief Commercial Officer Stephen Schueler recently launched the company’s 2014 Sustainability Update at a session dedicated to sustainable supply chains.

[Read more… Curated from Supply Chain Brain]

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May 23, 2015

How Companies Can Create Ethical Supply Chains

PodcastCreating an ethical supply chain is clearly the right thing to do. But it can also help companies to cut costs and boost profits.

“Beyond Supply Chains” is the name of a new report from the World Economic Forum, produced in collaboration with Accenture. It was intended to address the growing pressure on companies to ensure that their supply chains are having a positive social impact on the environment and local communities. The timing couldn’t be better, given the litany of incidents we’ve read about in recent years: child labor, terrible working conditions in factories, the reliance on conflict minerals, environmental degradation and disasters such as the collapse of the Rana Plaza factory complex in Bangladesh. So it’s essential that companies take steps to correct these deficiencies. As the report points out, however, they can also realize substantial commercial benefits from the effort.

[Read more… Curated from Supply Chain Brain]

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May 3, 2015

Does Global Business Care About Human Rights?

PodcastAll global companies will tell you that they’re committed to guaranteeing human rights throughout their supply chains. But how do we tell they’re sincere?

When it comes to corporate social responsibility, human rights is on a par with environmental protection. Both have something in common: Companies agree that they’re important, but it can be tough to assess whether their position stems from a real commitment to the issue, or a mere desire to polish their brand. A new report, published by The Economist Intelligence Unit and sponsored in part by the accounting, tax and advisory services firm of WeiserMazars LLP, tackles that very question.

[Read more… Curated from Supply Chain Brain]

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April 10, 2015

Hilton Plans to Ban Cages, Crates in Its Food Supply Chain

Hilton WorldwideHilton Worldwide has announced it will begin to eliminate the use of cages for egg-laying chickens and gestation crates for breeding pigs in its global food supply chain. The announcement was made in conjunction with the Humane Society of the United States (HSUS), the nation’s largest animal protection organization.

Initially all hotels in the Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton and DoubleTree by Hilton brands will be required to switch all egg usage to cage-free by Dec. 31, 2017, ensuring that chickens are not confined in cages. All pork products must be purchased from suppliers that house breeding pigs in groups rather than gestation crates by Dec. 31, 2018. These changes will initially apply in 19 countries where products are currently available and will be adopted in additional markets as supply comes online. These actions are part of the company’s global responsible sourcing strategy, which includes a focus on animal welfare. Last year, Hilton announced a global ban of the sale of shark fin in all owned and managed properties.

[Read more… Curated from Supply Chain Brain]

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April 8, 2015

As Politicians Craft Social-Issue Legislation, Corporate Pressure Can Pose Hurdle

CSR Corporate Social Responsibility LifecycleCorporate America usually hasn’t viewed hot-button social issues as any of its business. Then came Indiana. The controversy over the state’s religious rights measure signed into law recently has been striking for the parade of well-known businesses that not only joined in the opposition to the law but took the lead in voicing their disapproval.

From Apple Inc. in Silicon Valley to Eli Lilly & Co. in Indianapolis, the corporate revolt crossed sectors and regions and is widely seen as crucial in forcing the hasty retreat of many conservative lawmakers both in Indiana and in Arkansas, where a similar bill passed and faces possible change.

Arkansas Gov. Asa Hutchinson, a Republican, and allied state lawmakers found themselves in the crosshairs of the state’s largest employer, Wal-Mart Stores Inc., even before the legislation passed.

[Read more… Curated from Supply Chain Brain]

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April 5, 2015

Carriers, Shippers Sign Up for Asia’s New Green Scheme

Make Recycling part of your CSR initiativesThe industry-led GFA network this week opened its “GFA Label” applications to all transport providers and shippers across Asia, and already boasts big name members, such as Heineken Asia Pacific, Hewlett Packard, IKEA, Infineon, Lenovo, and Procter & Gamble. Integrators DHL and UPS have also signed up.

It is focused on encouraging sustainable road freight across the region to address the trucking industry’s CO2 emissions. Currently, trucks in Asia account for 9 percent of all vehicles on the road, but contribute 54 percent of road CO2 emissions.

Almost one in every two commercial vehicles sold worldwide is purchased in Asia, and most of the vehicles are trucks. Freight transportation makes up 35-60 percent of logistics costs in Asia, and is the main contributor to high GDP costs. As a percentage of GDP, logistics costs range between 15-25 percent in the region, significantly higher than in Europe or the U.S. where they are less than 10 percent.

[Read more… Curated from JoC]

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March 28, 2015

The Future of Fuels for Commercial Transport

PodcastWith the current boom in U.S. oil and natural gas production, it might be tempting to put aside the notion of shifting to more sustainable fuels for commercial transport. Why venture into this unknown area when traditional supplies are so plentiful?

The answer: the current state of affairs can’t last. Now is the time to begin exploring which kinds of alternative fuels have the greatest potential to power heavy trucks and other modes of transport in the years ahead. On this episode, we speak with Ryan Schuchard, associate director for climate change with BSR, a non-profit network of multinational companies dedicated to reducing carbon emissions and forging greener supply chains. He shares the results of a recent study by BSR’s Future of Fuels initiative, laying out the various options and answering some key questions: Which alternative fuels are best? What will they cost? How effective will they be? And how will we cope with a 40-percent increase in energy consumption between 2012 and 2030? Hosted by Bob Bowman, Managing Editor of SupplyChainBrain.

[Read more… Curated from Supply Chain Brain]

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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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December 12, 2014

Wind Turbine Market Expands Globally, But Manufacturing Overcapacity Persists

wind-turbine-1424480-mDuring the past 2 years, more flexible sourcing strategies across the wind power supply chain have resulted in cost reductions, enabling greater geographic market access while reducing risk and ensuring profitability for wind turbine vendors and their partners in the component value chain. Overcapacity, however, persists in most, though not all areas of the supply chain, providing purchasers with more choice, flexibility, and cost control.

While demand in 2014 is projected to be less than 47,000 megawatts (MW), annual turbine manufacturing capacity, according to vendor estimates, is likely to exceed 71,000 megawatts MW, according to a report from Navigant Research, whose energy research arm focuses on global clean-technology markets.

“Oversupply is allowing wind turbine manufacturers to more easily adjust what components they produce in-house, what is outsourced and when a blend of both is advantageous for cost, technological or geographic reasons,” says Jesse Broehl, senior research analyst with Navigant Research. “Although many manufacturing facilities are running at less than full capacity, product innovation, lean manufacturing and outsourcing are resulting in a highly competitive wind industry ready for the challenges of today’s and tomorrow’s wind markets.”

[Read more… Curated from Supply Chain Brain]

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