Retail News CRM

Tag: supply chain

  • SeaCube Cold Solutions Partners with The Wonderful Company to Establish Primary California Depot in Shafter

    SeaCube Cold Solutions Partners with The Wonderful Company to Establish Primary California Depot in Shafter

    SeaCube Cold Solutions (SCS), an affiliate of SeaCube Container Leasing and a leading provider of portable cold storage, announces a new partnership with The Wonderful Company. Under this agreement, The Wonderful Company’s Shafter facility will serve as the primary California depot for SCS, providing reefer storage and maintenance and repair services in the region.

    As part of SeaCube Container Leasing, SCS is backed by over 30 years of experience in refrigerated equipment, providing unmatched reliability and innovation in cold chain logistics. This new facility in Shafter represents a significant step forward in SeaCube’s investment in strategically located infrastructure to support its growing SCS customer base.

    “Partnering with The Wonderful Company at the Shafter depot marks a significant step in strengthening our presence in a key logistics corridor,” said James Armstrong, Senior Vice President of SeaCube Cold Solutions. “We’re excited to launch operations at the Shafter, California depot, where we are establishing a significant refrigerated container presence to support not only California’s Central Valley but also a 250-mile radius.

    This location strategically extends our reach across the West Coast, including Arizona and Nevada. With the addition of Shafter, SeaCube Cold Solutions now has full coverage over the entire Southwest Region.”

    The Shafter depot will serve as a hub for both storage and maintenance of SeaCube refrigerated containers. Its strategic location offers direct access to key customers in California’s Central Valley, while its position within a less congested logistics park provides efficient transportation routes to the Los Angeles basin, Arizona, and Nevada. SeaCube is the first—and currently the only—reefer operation at the facility.

    “SeaCube’s portable cold storage solution offers tremendous flexibility during seasonal market fluctuations. We are pleased to have their support and involvement in the Wonderful Logistics Center,” said Sepehr Matinifar, Vice President of Logistic Services at the Wonderful Company.

  • Why Singapore’s Retailers Need to Take Heed of Recent Supply Chain Cyber Incidents

    Why Singapore’s Retailers Need to Take Heed of Recent Supply Chain Cyber Incidents

    As cyber threats continue to rise, understanding the impact of these threats and how they infiltrate the retail supply chain is vital for operational continuity. Singapore’s recently refreshed Industry Digital Plan (IDP) for the retail sector highlighted enhanced cyber hygiene measures for protection at different stages of growth.

    The region’s booming digital economy makes businesses operating here a prime target for cyberattacks. The retail sector is ripe for third-party cyberattacks, with threat actors exploiting vulnerabilities in Point-of-Sale (POS) terminals, supply chain systems, logistics platforms, and other interconnected technologies.

    Recent Cyber Attacks Targeting Supply Chains

    The retail industry has been shaken by a number of high-profile reported cyber incidents recently, affecting major players like Marks and Spencer (M&S) and Harrods.

    Closer to home, popular bubble tea chain Chica San Chen disclosed a data breach of one of its vendors’ servers, compromising the personal information of members, such as their names, mobile numbers, e-mail addresses and login passwords. In 2024, Filipino fast-food giant Jolibeewas reportedly subjected to a major data breach affecting the data of 11 million customers.

    These incidents not only tarnish brand reputations, but also disrupt operations and expose sensitive customer data, causing widespread concern. The financial fallout from these compromises highlights the crucial need for retailers to focus more diligently on the security of their digital and physical supply chains.

    According to BlueVoyant research, more than 70% of Singaporean organisations reported an average of 3.97 breaches impacting operations. Almost half (47%) of Singapore organisations indicated the news of breaches over the past 12 months are likely to lead to an increase in budget for additional internal and external resources to help protect against supply chain cyber security issues.

    Retail Under Growing Threat

    Threat actors like DragonForce have reportedly boldly claimed responsibility for a series of attacks targeting UK retailers, often partnering with groups like Scattered Spider to amplify their reach. Understanding the motivations and methods of these groups provides invaluable insight — such as exploiting supply chain vulnerabilities — to predict and prevent future attacks. Their evolving strategies represent a constant threat that requires ongoing vigilance and continuous improvements to third-party risk management practices in retailers.

    Retail businesses are often vulnerable to a catalogue of common cyber threats, including phishing schemes, ransomware, and supply chain compromises. Threat actors leverage malware and sophisticated social engineering to infiltrate retailers’ defences. By embedding malicious software within trusted channels, they can access secure areas usually safeguarded but overlooked in anticipation of direct attacks.

    In fact, more than a third (35%) of Singapore respondents to BlueVoyant research said they have no way of autonomously seeing the cyber risk posture of third parties and rely on self-reporting. This knowledge underscores the necessity for robust cyber security practices targeting every link in the retail supply chain.

    Harden defences and manage supply chain risk

    Singapore’s Cyber Security Agency (CSA)’s toolkit for enterprises highlight key areas for organisations to address increasing cyber risks, including the need for a third-party risk management programme to assess and manage the risks posed by third parties, including vendors, products, and services.

    Implementing effective third-party risk management practices, characterised by strong cross-business collaboration in vendor management, continuous cyber threat monitoring across the supply chain, and robust due diligence procedures, is essential for ensuring comprehensive visibility of risks associated with key suppliers.

    Additionally, both retailers and their suppliers must prioritise robust employee training in cyber security best practices, empowering them to recognise and respond to suspicious activity. Implementing multi-factor authentication adds an extra layer of security, making it significantly more difficult for unauthorised users to compromise the integrity systems. Securing helpdesk authentication can also help prevent deceptive access attempts, ensuring that customer service channels remain protected.

    Proactive incident response planning is crucial for effectively managing breaches, should they occur, with an eye towards the potential for a cross-business compromise. Retailers work with many suppliers and partners and so must maintain even greater vigilance within their extended ecosystem. Establishing network segmentation, sharing only strictly necessary data, and implementing access controls can help make sure that a potentially compromised vendor does not cause a cascade of issues.

    Regular drills and collaboration with cyber security partners can help ensure incident management is more seamless, minimising potential damage through quick containment and eradication. By embracing these defensive strategies, retailers can significantly bolster their security posture.

    As cyber threats become increasingly sophisticated, it is imperative for retailers in the region to maintain constant vigilance and adaptability in their cyber security posture. Ensuring robust protection of these essential services is vital due to their immediate impact on society’s well-being. Retailers must heed the call to integrate recommended cyber security measures, protecting themselves against potential compromises.

    By William Oh, Head of Asia Pacific, BlueVoyant

  • DHL supply chain sharpens growth focus on Singapore, Malaysia and the Philippines

    DHL supply chain sharpens growth focus on Singapore, Malaysia and the Philippines

    DHL Supply Chain, the global market leader for contract logistics solutions, has named Jerome Gillet as CEO of the new Singapore cluster which includes Singapore, Malaysia , and the Philippines . In this role, Jerome will continue to report to Terry Ryan, CEO, DHL Supply Chain Asia Pacific, while remaining as a member of the regional board.

    The appointment will bring synergy for the three markets and drive new growth for the region. The DHL Supply Chain businesses locally continue to be led by the respective country heads – Jason Goh, managing director, DHL Supply Chain Singapore; Mike Davies, managing director, DHL Supply Chain Malaysia; and Suzie Mitchell, managing director, DHL Supply Chain Philippines — who now report to Jerome.

    “We see tremendous opportunity in Singapore, Malaysia and the Philippines to grow our business with even more focus on greater service quality in the markets. Jerome has repeatedly demonstrated his commitment to customer needs, and, in a changing economic climate, he is well placed to help customers deliver greater value from their supply chains,” said Terry Ryan , CEO, DHL Supply Chain Asia Pacific. “An innovator and strategic leader, Jerome is well suited to lead the next stage of growth transformation in our Singapore cluster. With his track record of delivering accelerated growth and building strong customer relationships, I am confident he will drive this new cluster in achieving high and sustainable growth.”

    “I am looking forward to accelerating growth in the newly formed cluster with a strong focus on Quality, Innovation and Customer centricity,” said Jerome Gillet , CEO, Singapore cluster, DHL Supply Chain.

    Jerome’s career in logistics spans over 20 years (the last 17 years in Asia Pacific ) and includes roles in general management, operations and business development. His last appointment as chief customer officer (CCO) of DHL Supply Chain Asia Pacific saw him turn Asia Pacific into the fastest-growing region worldwide within DHL Supply Chain. The tremendous growth was driven by his business development efforts in key sectors such as consumer & retail, technology and life sciences. Prior to his role as the CCO, Jerome was the vice president of consumer sector for Asia Pacific , and increased annual new business gains by over 200 percent between 2008 and 2014.

    Lees ook:

    Lees ook:

  • Supply Chain Resilience in an Era of Change and Uncertainty

    Supply Chain Resilience in an Era of Change and Uncertainty

    Automation solutions provider Dematic has been running a series of Virtual Showcases all around the world. From 20th August till 10th September, Dematic will bring the series to Asia, with four online sessions focusing on grocery, food & beverage, e-commerce, and industry & spare parts in Asia.

    The theme of the Virtual Showcase Series is Supply Chain Resilience in an Era of Change and Uncertainty.  Supply chain resilience and agility are being elevated to the top of the agenda in these increasingly uncertain times where rapid change is the norm rather than the exception. Companies across Asia are recognizing that optimized supply chains deliver companies the edge in terms of superior customer service levels, reduced costs, increased margins and profitability, and are critical for business continuity  ̶  especially in times of crisis.

    The Dematic Virtual Showcase is the digital way to keep track of the key challenges and opportunities facing supply chains and see how leading companies are implementing innovative automation to capitalise on these in an increasingly hyper-competitive world.

    To find out more and to register your place, visit: https://www.dematic.com/en-au/news-and-events/events/virtualshowcase/.

     

    Lees ook:

    Lees ook:

  • NY/NJ Foreign Freight Forwarders & Brokers Association Announces 2025 “Captain of Industry” Award Recipient

    NY/NJ Foreign Freight Forwarders & Brokers Association Announces 2025 “Captain of Industry” Award Recipient

    The NY/NJ Foreign Freight Forwarders & Brokers Association,  announces that Charlene Riley has been selected as the recipient of the 2025 Captain of Industry Award. This prestigious honor is awarded to individuals who have demonstrated exceptional leadership, commitment, and long-standing service to the association and the international trade and logistics community. Ms. Riley will be honored on Wednesday, June 25, 2025, during the association’s annual Dinner Cruise, an event co-hosted with the Traffic Club of New York (TCNY).

    An industry veteran and licensed Customs Broker since 1989, Ms. Riley currently serves as East Coast Import Operations Manager at J.W. Allen. With a distinguished career spanning several decades in freight forwarding and customs brokerage, Ms. Riley has served in a variety of managerial roles. Ms. Riley began her career with Barthco, where she managed numerous offices across the country. She then spent over two decades with John A. Steer Co., rising to the position of Vice President of their NY/NJ office.

    “Charlene Riley exemplifies the integrity, expertise, and dedication that define our industry,” said Jeanette Gioia, President of NYNJFFF&BA. “Her leadership has guided not only our Association but the entire trade community through complex challenges and periods of great change. It is a privilege to recognize her with the 2025 Captain of Industry Award.”

    Ms. Riley has held several leadership positions with the NYNJFFF&BA, including Board of Governors, Treasurer, Vice President of Imports, and President, and most recently as Senior Advisor and former Chair. Her strategic guidance and deep operational knowledge have been instrumental in advancing the mission of the association. She is also a key contributor on the national stage through her active involvement with the National Customs Brokers and Forwarders Association of America (NCBFAA) especially the Future Role of the Broker Committee. She had represented the Port of New York/New Jersey on the Customs Committee, chaired the Legislative Committee, and headed the FIATA Committee, having represented the U.S. at two FIATA World Congress events.

    The celebration will take place aboard the Cornucopia Destiny, departing from Liberty Harbor Marina, 11 Marin Blvd, Jersey City, NJ, with boarding beginning promptly at 6:00 PM and disembarking between 9:30-10:00 PM. For details see Dinner Cruise 2025 – NYNJ.  Guests will enjoy an evening of networking and celebration featuring an open bar, appetizers, full dinner and dessert, DJ music, and dancing. Contact (732) 741-1936 for more information.

  • DHL acquires reverse logistics leader, Inmar Supply Chain Solutions

    DHL acquires reverse logistics leader, Inmar Supply Chain Solutions

    DHL Supply Chain, the world’s leading contract logistics provider, announced the acquisition of Inmar Supply Chain Solutions, a division of Inmar Intelligence and a leading returns solutions provider for the retail e-commerce industry. The strategic acquisition will make DHL Supply Chain the largest provider of reverse logistics solutions in North America.

    The acquisition will result in 14 return centers and around 800 associates joining the DHL Supply Chain business expanding the company’s North American footprint which currently stands at over 520 warehouses supported by 52,000 associates. Additionally, DHL Supply Chain will now strengthen its returns capabilities to include product remarketing, recall management, and supply chain performance analytics. Inmar Intelligence will retain its pharmaceutical reverse distribution business.

    In the light of a rapidly growing e-commerce market and changing consumer behavior, returns are an increasingly important touchpoint for retail customers, both in store and online. These solutions will expand the value-added services available to DHL customers and create a more strategic delivery of holistic solutions for their most complex supply chain needs.

    “DHL Supply Chain’s market-leading logistics expertise and the addition of Inmar’s suite of returns services and its talented workforce will enable us to provide best-in-class logistics services to our industry customers. Together, we will create a returns business in North America that is unmatched in its depth, breadth, capabilities, and talent to fuel long-term growth,” said Oscar de Bok, Global CEO of DHL Supply Chain.

    “As companies strive to simplify their supply chain strategies and enhance their operational agility, DHL Supply Chain continues to innovate to provide comprehensive and integrated solutions. This acquisition strengthens our existing capabilities, allowing us to offer our customers a single-source solution for their entire supply chain, including the critical and complex area of returns management. This enhances the value we deliver to our customers by streamlining their operations, reducing complexity, and improving their overall supply chain efficiency,” said Patrick Kelleher, CEO of DHL Supply Chain, North America.

    He further added that, “The strategic growth opportunities that the returns market brings will enhance the success of DHL Supply Chain. It also puts us on the right path to support DHL Group’s plan to achieve 50% revenue growth by 2030 compared to 2023 as outlined in our recently announced Strategy 2030.”

    “Inmar Intelligence and DHL share a deep commitment to customer-focused innovation. Because of that, we are confident that DHL will build even greater things on top of the Inmar Supply Chain Solutions foundation that we developed over time. As well, we are thrilled that Inmar associates will have an even broader set of supply chain experiences available from which they can continue to learn and develop over time at DHL. For Inmar Intelligence, this deal sets the stage for us to apply an even deeper level of focus and investment into our core businesses that are expanding rapidly,” said Spencer Baird, CEO of Inmar Intelligence.

    Consumers expect retailers to provide a seamless returns process while retailers are faced with new challenges such as returns abuse and rising operational costs. Thus, the acquisition marks a logical step to foster DHL’s customer centric approach that involves collaboration, expertise, and integration to solve the greatest supply chain challenges.

    The acquisition of Inmar Supply Chain Solutions will also contribute to DHL’s strategic goal of decarbonizing its business by 2050. In the company’s recently announced Strategy 2030, sustainability is a strategic priority, recognizing its growing role as a key differentiator in the logistics sector. Assisting global customers to become carbon neutral is crucial, and DHL Group aims to achieve this by remaining the frontrunner in low-carbon logistics operations.

    At the core of returns management is the need to drive sustainability, and Inmar’s technology-driven reverse logistics solutions are recognized across the industry for reducing cost and eliminating the waste generated from returned consumer goods. Emphasis is placed on recommerce, which has diverted 99% of consumer returns from reaching a landfill; an approach that aligns with DHL’s commitment to make customers’ supply chains more sustainable.

    Lees ook:

  • Direct-To-Consumer Growth Fuels Supply Chain Innovation

    Direct-To-Consumer Growth Fuels Supply Chain Innovation

    While the pandemic and subsequent ecommerce explosion drove strong demand for true omnichannel supply chain commerce solutions, it also fuelled a less immediately obvious longer-term move towards direct-to-consumer (D2C) fulfilment too.

    Where suppliers of wholesale goods (including everything from FMCG goods to electrical appliances), often ship large, bulky consignments of cargo through industrial supply chains to distribution centres and then on to stores, companies selling to consumers must manage the flow of individual shipments, such as a single box of running shoes, or a polo shirt, direct to a customer’s home or preferred collection point.

    Footwear, apparel and electronics manufacturers were amongst the earliest adopters to have stepped up their D2C offerings through the Covid-19 pandemic as stores and retailers closed their doors and brands struggled to find new avenues to reach their customers.

    As the lines between what a retailer or manufacturer used to be and what they are today become more opaque, almost every company is in some way, shape or form, making attempts to get closer to their consumers. Take Adidas as an example. D2C sales helped to boost revenue at Adidas in the last year, and its own ecommerce website now accounts for more than 20 percent of its business. It recently reported that online sales grew by double-digits through large parts of 2022 too.

    Another example of a modern, successful D2C strategy is that which America’s own sporting leviathan, Nike has implemented. Since 2017, the company has actively reduced its number of retail partners (last year it withdrew from Urban Outfitters) to concentrate on growing its own online and bricks & mortar presence – its Oxford Circus flagship store in the UK and the intuitive members app are fine examples of this strategic move, providing ‘loyal’ members with a greater range of bespoke, limited edition offerings not available beyond Nike’s own online and physical retail ecosystem.

    The shift to this model has given Nike full control over its customer relationships and crucially, its customer’s associated data, making customer journeys and user experiences richer and more native in equal measure.

    Similar to Adidas’ announcement however, the D2C model has also increased the fulfilment costs per item: from managing logistics and supply chains, to hiring the right talent capable of creating those exceptional customer experiences, these extra costs can consume profits if unaccompanied by an agile and pragmatic supply chain strategy.

    If brands truly wants to harness the benefits of D2C, and serve millions of customers in a cost effective, sustainably-minded way rather than a network of third-party retail stores, they need to be nimble in every department – especially when it comes to supply chains.

    The movement towards D2C fulfilment is well illustrated by the efforts made by Nike and Adidas over the last year, and, by operating effective D2C channels, they are enjoying the freedom to optimise their logistics and deliveries, while meeting the exacting expectations of their customers.

    D2C is the latest iteration in a long line of retail supply chain evolutions and while finding the right balance may prove challenging in the short-term, the size of opportunity is huge for retailers and particularly wholesale brands as this route offers a wholly new touchpoint to interact with customers, not previously available.

    At Manhattan Associates our unified supply chain commerce platform is informed and inspired by more than thirty years of supply chain and commerce experience across retail, apparel, food, and wholesale distribution, working with some of the world’s most well-known brands including, Adidas, Lacoste, L’Oreal and Brooks Brothers.

    We also know that the key to success is to start from the ground up and build strong foundations for success. And, in the case of retailers looking to ride the D2C wave, this means first looking to their own supply chain networks and the IT infrastructure that underpins it.

    For more information on how your business can enhance its D2C supply chain capabilities, please visit: www.manh.com/en-sg

    Written by Richard Wright, Managing Director, SEA, at Manhattan Associates

  • How to Meet Demand in an e-commerce Age with Supply Chain Automation  

    How to Meet Demand in an e-commerce Age with Supply Chain Automation  

    Retailers across the Southeast Asian region are under tremendous supply chain pressure due to increased demand for online orders, hyper-competitive pricing and faster delivery times. For online orders, customers want the cheapest price, shortest delivery time, up-to-date information on stock availability, access to the real-time status of their orders, and seamless return options. On top of all this, businesses continue to contend with increasing labour costs, high staff turnover, increasing costs for building space, pressures from increased regulation and safety requirements, and supply chain disruptions, be they from pandemics, natural disasters and geopolitical tensions.

    All these factors combined have made the task of cost-effective order fulfilment more challenging than ever before. However, there is a way business can tackle these challenges and turn them into an opportunity to improve competitiveness. As this new age of retail and eCommerce coerces supply chains to work faster and harder, automation and technology in Fulfilment Centres are proving to play a critical role in helping businesses streamline their processes towards achieving higher levels of efficiency in their distribution operations.

    So, what can retailers do to meet demand in an e-commerce age when the only constant appears to be disruption?

    Optimised processes make for streamlined operations

    The answer to succeeding in the future involves adopting a strategy to optimise operations around cost-effectively meeting and exceed consumer expectations. Optimisation falls into three broad categories: processes, human efficiency, and inventory management.

    Processes provide the structure for supply chains to function. Automation and technology help optimise processes by removing non-value-adding activities, improving productivity, reducing errors and increasing the speed of the necessary tasks. As an example, the order fulfilment processes can be improved significantly in terms of speed, productivity and accuracy with the implementation of wearable devices to provide real-time instructions and interaction with operators. The process of order tracking is automatically improved with the same software that drives the technology, also providing the capability to track every transaction and movement of inventory through the order fulfilment task.

    Inventory management is key

    Inventory storage has transitioned from being a static requirement to a dynamic one, with many supply chains now able to drive high levels of optimisation across their logistics operations and their retail operations as well.  Automation and technology often play a key role in achieving these high levels of optimisation.

    Manual forklift trucks and Automated Storage Retrieval Systems (AS/RS) are no longer the only material-handling technologies that can be used to store inventory.  Technologies such as Automated Guided Vehicles (AGVs), mobile robotics and shuttle systems can provide much more flexible, scalable and dynamic storage solutions in a wider range of supply chain facilities.

    Make your workers more effective

    In traditional order fulfilment operations, operator travel consumes the largest portion of an operator’s time in fulfilling a customer order. One of the most effective ways to improve the efficiency of operators is to minimise operator travel, or to eliminate it altogether. In terms of automation, Goods-to-Person (GTP) picking solutions can increase operator productivity by over 5 times by eliminating operator travel.  Advances in robotic fulfilment technology have enabled order fulfilment processes to be performed without the involvement of operators at all in some cases.

    Case Study: RedMart’s Advanced Online Grocery Fulfilment with GTP

    To meet surging demand and growth in online orders, RedMart – the online grocery service of e-commerce giant, Lazada – implemented automation at its logistics facility in Singapore, in order to improve productivity, speed, accuracy, and space efficiency.

    A key part of the automation solution is the Goods-to-Person (GTP) order fulfilment, powered by a Dematic Multishuttle system. At the ergonomically designed workstations, operators pick orders up to five times faster than they were previously when they would have to manually travel through multiple aisles of shelving to pick the items required for an order.

    The GTP system covers a huge product range in a small footprint, with an extremely effective picking method. Workers stay in one place as items are automatically delivered to their workstation, increasing picking speeds, improving fulfilment accuracy, and advancing operator comfort and safety.

    Optimisation with information

    With the use of new logistics automation and technologies, retailers have a pathway to improve their fulfilment operations, achieving cost-effective and efficient fulfilment processes, higher levels of inventory availability, shorter lead times and improved traceability.  Robust and real-time integration between mechatronics, control systems and software platforms across fulfilment operations and their broader supply chain networks, is a key ingredient to achieving competitiveness and sustainable success in the future landscape of retail.

    For more information on how your business can optimise its supply chain operations and meet market demands, please visit: www.dematic.com/en-au

    Written by: Michael Bradshaw, Senior Regional Director Sales & Solution Development, Dematic Asia

     

     

     

    Lees ook:

  • Asos hit by supply chain disruption, volatile Christmas demand

    Asos hit by supply chain disruption, volatile Christmas demand

    British online fashion retailer ASOS reiterated its already downgraded outlook on Thursday after supply chain constraints and volatile demand limited sales growth in its four months to Dec. 31 trading period.

    It posted total sales growth of 5%, following a 22% rise in the year to end August, and said gross margin decreased by 400 basis points to 43.0% driven by a need to discount goods and higher freight costs.

    For the full year it reiterated its outlook of revenue growth in the range of 10%-15% and adjusted profit before tax of 110 million pounds to 140 million pounds. That hit its shares when it was published in October, and would represent a more than 40% drop on the year before.

    “ASOS has delivered a robust start to the year, in line with the guidance we set out at full-year results, despite challenging market conditions,” Chief Operating Officer Mat Dunn said.

    ASOS, once a darling of the stockmarket, was hit by a difficult end to 2021, when it cut its annual profit forecast and parted ways with its CEO following supply chain pressures and a return by shoppers to pre-pandemic ways.

    While shoppers often return partywear clothing and fashion, incurring a cost for the company, they retained the athleisure wear bought during the pandemic to use at home, giving the company a boost to its finances during lockdowns.

    Its shares are down 56% this year, prior to Thursday’s update, mirroring similar falls seen at rival Boohoo which has also been hit by high product return rates, disruption to international deliveries and inbound freight costs.

    ASOS added that it intended to move to the LSE’s main stock market, expected by the end of February.

  • Supply chain issues to worsen as virus impacts transport sector

    Supply chain issues to worsen as virus impacts transport sector

    Thanks to the rollout of coronavirus vaccines, the global economy is slowly starting to emerge from the pandemic.

    But Covid-19 has left one very destructive economic issue in its wake: disruption to global supply chains.

    The rapid spread of the virus in 2020 prompted shutdowns of industries around the world and, while most of us were in lockdown, there was lower consumer demand and reduced industrial activity.

    As lockdowns have lifted, demand has rocketed. And supply chains that were disrupted during the global health crisis are still facing huge challenges and are struggling to bounce back.

    This has led to chaos for the manufacturers and distributors of goods who cannot produce or supply as much as they did pre-pandemic for a variety of reasons, including worker shortages and a lack of key components and raw materials.

    Different parts of the world have experienced supply chain issues that have been exacerbated for different reasons, too. For instance, power shortages in China have affected production in recent months, while in the U.K., Brexit has been a big factor around a shortage of truck drivers. The U.S. is also battling a shortage of truckers, as is Germany, with the former also experiencing large backlogs at its ports.

    Unfortunately, experts like Tim Uy of Moody’s Analytics say that supply chain problems “will get worse before they get better.”

    “As the global economic recovery continues to gather steam, what is increasingly apparent is how it will be stymied by supply-chain disruptions that are now showing up at every corner,” Uy said in a report last Monday.

    “Border controls and mobility restrictions, unavailability of a global vaccine pass, and pent-up demand from being stuck at home have combined for a perfect storm where global production will be hampered because deliveries are not made in time, costs and prices will rise, and GDP growth worldwide will not be as robust as a result,” he said.

    “Supply will likely play catch up for some time, particularly as there are bottlenecks in every link of the supply chain—labor certainly, as mentioned above, but also containers, shipping, ports, trucks, railroads, air and warehouses.”

    Supply chain bottlenecks — congestion and blockages in the production system — have affected a variety of sectors, services and goods ranging from shortages of electronics and autos (with problems exacerbated by the well-known semiconductor chip shortage) to difficulties in the supplies of meat, medicines and household products.

    Amid higher consumer demand for goods that have been in short supply, freight rates for merchandise coming from China to the U.S. and Europe have soared, while a shortage of truck drivers across both the latter regions has exacerbated the problem of getting goods to their final destinations, and has led to high prices once those products hit store shelves.

    The pandemic has only served to highlight how interconnected, and how easily destabilized, global supply chains can be.

    At their best, global supply chains lower costs for businesses, often due to reduced labor and operating costs linked to the manufacturer of the products they want, and can spur innovation and competition.

    But the pandemic has highlighted deep fragilities in these networks, with disruption in one part of the chain having a ripple-down effect on all parts of the chain, from manufacturers to suppliers and distributors with disruptions ultimately affecting consumers and economic growth.

    Lees ook:

    Lees ook:

  • Jaguar Land Rover Trials World-First Digital Supply Chain For Leather

    Jaguar Land Rover Trials World-First Digital Supply Chain For Leather

    Jaguar Land Rover has trialed the use of secure blockchain technology to ensure full transparency within a sustainable leather supply chain. In a world-first, Jaguar Land Rover partnered with supply chain traceability provider Circular, leading UK leather manufacturer Bridge of Weir Leather Company and the University of Nottingham to trial the use of traceability technology in the leather supply chain. As well as tracking compliance, the digital process enabled Jaguar Land Rover to assess the carbon footprint of its leather supply network, working with UK-based Bridge of Weir Leather Company to trace its lowest carbon leather from farm to the finished article – all part of Jaguar Land Rover’s commitment to reducing the environmental and ethical impact of its products across their lifecycle.

    Jaguar Land Rover is committed to offering customers more sustainable and responsible material choices for their vehicle interiors, such as the premium natural fibre Eucalyptus textile interior available on Range Rover Evoque, and Kvadrat – a refined high-quality wool blend textile that’s paired with a suede cloth made from 53 recycled plastic bottles per vehicle – available on Evoque, Range Rover Velar and Jaguar’s all-electric I-Pace

    As part of the Innovate UK-funded research, a ‘digital twin’ of the raw material was created, allowing its progress to be tracked through the leather supply chain simultaneously in the real world and digitally. A combination of GPS data, biometrics and QR codes was used to digitally verify the movement of leather at every step of the process using blockchain technology.

    Defining the verification process has created a repeatable blueprint for tracing a single piece of leather at every stage. It can be used across Jaguar Land Rover’s global supply chain and by other industries that rely on leather, such as fashion and footwear.

    The project is part of Jaguar Land Rover’s Reimagine strategy: a sustainability-rich combination of modern luxury, unique customer experiences, and positive societal impact.

    Reimagine aims to achieve net zero carbon emissions across its supply chain, products and operations by 2039. Jaguar Land Rover will work with industry experts to improve sustainability, reduce emissions and collaborate on next-generation technology, data and software development leadership.

    Dave Owen, Jaguar Land Rover Executive Director of Supply Chain, said: “We are currently restructuring our supply chain as part of Reimagine, with a focus on transparency and sustainability. The outcome from this world-first trial will allow us to further improve the sustainability of the leather supply chain around the globe, ensuring the complete traceability of raw materials from origin to vehicle.

    Through InMotion, its venture capital and mobility services arm, Jaguar Land Rover previously announced an investment in Circulor, allowing the company to source premium materials with greater transparency as to the provenance, welfare, and compliance of suppliers throughout its networks.

    The technology could be deployed to trace other commodities. Circulor is already using blockchain to improve the traceability of minerals used for electric vehicle batteries. Blockchain technology is impossible to modify or tamper with, giving customers greater confidence that the sustainable supply chain is authentic, and all materials have been sustainably sourced.

    Lees ook:

  • German companies in Vietnam look to diversify supply chain due to Covid

    German companies in Vietnam look to diversify supply chain due to Covid

    Ninety percent of German companies in Vietnam are seeking new or additional suppliers in Asia Pacific due to mobility restrictions in the country.

    The majority of respondents, 83 percent, reported supply bottlenecks and price increases caused by transport problems, according to a survey by the Association of German Chambers of Industry and Commerce (DIHK).

    What has led to the current transport problems is a lack of freight capacity and containers.

    Other issues that caused supply bottlenecks are increased demand or insufficient production capacity (67 percent) and halted supplier production (58 percent).

    The impacts of supply bottlenecks on German companies are longer waiting times, higher purchase prices, and production halts or downsizing, according to 58 percent of respondents.

    Half of the respondents have no choice but to either increase or plan to increase the manufacturing prices of their products.

    Two-thirds of German companies are also considering relocating their production to the E.U.

    The Vietnam survey is part of the global inquiry by DIHK, which polled 3,000 business leaders from Jul. 22 to Aug. 9.

  • Aldi to tackle slavery in its supply chain

    Aldi to tackle slavery in its supply chain

    Aldi has become the first Australian member of UK-based Slave-Free Alliance, a social enterprise that works with and supports businesses to create a supply chain free of slavery.

    The partnership comes almost a year after Aldi identified a number of high-risk areas in its local supply chain.

    Together, the businesses will conduct a ‘Human Rights Risk Assessment’ of Aldi’s local supply chain operations and will roll out ‘Modern Slavery Awareness Training’ for the supermarket’s local employees and business partners.

    The aim is to ensure all of Aldi’s employees with sourcing responsibilities, as well as its merchandise suppliers, are knowledgeable of the risks of modern slavery, and can take actions to address them when identified.

    “Modern slavery is a complex issue requiring thorough and progressive action,” said Aldi Australia corporate responsibility director Daniel Baker.

    “We understand the significant impact we can have on intercepting the exploitation of workers within our supply chain and our partnership with Slave-Free Alliance will help to ensure modern slavery continues to be identified and addressed.”

    Lynette Kay, director of Slave-Free Alliance in Australia, said it is incredibly important for businesses to take a holistic approach when it comes to dealing with supply chain issues, and that working with all parties involved is key to success.

    “We are delighted that Aldi Australia is leading the way in Australia’s fight against modern slavery, and we are looking forward to working together to achieve our shared goal; a slave-free supply chain,” Kay said.

    “We hope that other businesses will follow its example so that we can tackle modern slavery collectively.”

  • How micro-fulfilment is re-shaping the Southeast Asia grocery supply chain in 2021

    How micro-fulfilment is re-shaping the Southeast Asia grocery supply chain in 2021

    The pandemic has accelerated the proliferation of eCommerce by up to six years, and the grocery sector has been one of the most impacted, albeit positively, due to vast surges in online sales. However, there are associated challenges when it comes to eCommerce fulfilment and delivery, particularly in parts of Southeast Asia where there is a high reliance on imports, but land availability and limitations on international travel are disconnecting the flow of the eCommerce supply chain.

    Online grocery delivery and rapid ‘store-to-door’ delivery exploded in Southeast Asia during the pandemic, with businesses such as foodpanda in Singapore offering delivery of over 40,000 products across groceries, drinks, health, pharmaceuticals and electronics in under 25 mins through a mobile app. Singapore’s largest online supermarket, RedMart, also offers fast and flexible delivery with a ‘sunrise’ 7am next day delivery option catering to professionals who want their groceries delivered before work, as well as an eco-friendly option that allows RedMart to deliver to more homes in an area within certain windows of time.

    As online sales and ‘store-to-door’ delivery popularity is set to continue to rise well beyond the end of the pandemic – research from Google, Temasek Holdings Pte and Bain & Co. shows eCommerce is set to grow from $62 billion in 2020 to $172 billion by 2025 in Southeast Asia – many grocers and retailers are struggling to keep up with the competitiveness and turn a profit from online deliveries. To combat this, one innovation gaining pace for a proactive and resilient supply chain is micro-fulfilment centres.

    Micro-fulfilment is the new 2021 supply chain

    COVID-19 did not just fast-track eCommerce uptake, it also accelerated advances in technology, pushed corporate boards to revaluate their traditional business models and forced them to rethink relationships between retailers, disruptive start-ups, and automation innovations. This set the scene for a potentially radical shake up of fulfilment strategies across Southeast Asia and the world into 2021 and beyond.

    At its core, micro-fulfilment aims to speed up the delivery of goods to consumers by bringing the product closer to the consumer. As the name suggests, micro-fulfilment sites are far smaller than the traditional retail model of sprawling, labour-intensive distribution centres located in just a few remote locations. By adding more automated operations to smaller urban sites and even the backs of physical stores, retailers have the goal of slashing delivery times for online orders, allowing products to reach customers in a matter of hours, rather than days.

    Micro-fulfilment also comes with a number of additional benefits. Cheaper than larger, fully robotics-equipped warehouses, the approach of a fully automated micro-fulfilment improves COVID-19 safety, reducing the costs of floorspace and expediting the picking process. It also enables late ordering cut-offs, which reduces the carbon footprint of delivery networks by being closer to the consumer and providing additional collection points away from busy store locations, which in a region like Southeast Asia, can become incredibly advantageous.

    The fundamentals of micro-fulfilment

    Beyond the challenges of adapting to a more entrepreneurial mindset, the practical aspects of making micro-fulfilment centres work efficiently rests on three core pillars. Firstly, making sure that you have an effective omnichannel offering that connects eCommerce orders to the appropriate micro-fulfilment centres is essential. Secondly, ensuring you have complete visibility of inventory is an equally important factor for maintaining accurate insights into stock availability, so you will never end up out of pocket. Finally, making sure you have an in-warehouse system in place to meet the exact delivery demands of the end customer will see you through to a well-managed and proactive micro-fulfilment strategy.

    Other beneficial aspects of micro-fulfilment centres for retailers in Southeast Asia are the options available when it comes to setting them up. You can set up micro-fulfilment centres to primarily service customers in the local area of one store, or you can also set up a ‘spoke-hub’ distribution model where one centre is able to serve many different stores. Another approach could even be to set up a ‘dark store’ as a micro-fulfilment centre.

    Smart fulfilment to streamline 2021 supply chain operations

    While there is no doubt that the pandemic accelerated a more flexible and innovative approach to supply chain operations for many businesses in 2020, 2021 will push even more business in Southeast Asia to redefine their fulfilment strategy to future-proof operations. As many grocers and retailers remain reluctant to use their current store base for eCommerce fulfilment – because it can interrupt customers and cause issues around social distancing – concepts such as automation and micro-fulfilment will likely be the winners this year and beyond.

    While there are still many challenges ahead, we should have a positive outlook. 2020 showed the willingness of retailers and senior leadership decision makers in Southeast Asia to go above and beyond normal conventions, and as this approach carries into 2021, this should herald an exciting year during which fresh innovations, such as micro-fulfilment, build momentum.

    Receive up-to-date product, customer and partner news directly from Manhattan Associates on Twitter and Facebook.

    About Manhattan Associates

    Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.

    Manhattan Associates designs, builds and delivers leading edge cloud and on-premises solutions so that across the store, through your network or from your fulfilment centre, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit www.manh.com/en-au

    By, Richard Wright, Managing Director, SEA, Manhattan Associates

     

    Lees ook:

  • DHL Supply Chain to build warehouse at DP World London Gateway

    DHL Supply Chain to build warehouse at DP World London Gateway

    DHL will construct the brand-new bespoke facility at Plot 3040 on London Gateway’s Logistics Park with the main facility build due to commence in early 2021. On completion, DHL will lease the facility from DP World London Gateway.

    The 42m high bay warehouse will feature 36m of clear internal eaves height. DHL said it would be fully automated and ready for operation in early 2023.

    When completed, the facility will be the largest single-unit at London Gateway’s Logistics Park.

    Oliver Treneman, Park Development Director at DP World London Gateway, said: “The most striking feature of this new letting is DHL’s significant investment in automation that underpins its commitment to this strategic location.”

    DHL joins UPS, Dixons Carphone, MADE.COM, Lidl, Ceva Logistics, P&O Ferrymasters, Halo Handling (SH Pratt), Ziegler UK and Compagnie Fruitiere at DP World London Gateway.

    DP World sponsored the Supply Chain Excellence Awards 2020. Discover how it feels to win a Supply Chain Excellence Award by watching the virtual ceremony on-demand.