MEMPHIS: February 15, 2017. In its latest survey of European SMEs, FedEx says eCommerce is a growth area for Spanish exporters with 86 percent already generating such revenue, higher than the European average of 80 percent.
Some 33 percent of those surveyed reported higher export earnings in the past 12 months and they expect the trend to continue - citing ease of access to export markets and more secure payment systems.
Nearly 70 percent of SMEs said they generate revenue through m-commerce, thanks to the improvements made to web pages and mobile applications, while 79 percent use social networking platforms for sales - particularly Facebook (49 percent) and IM applications (34 percent).
Ian Silverton, FedEx Spain senior manager of Operations observed the acquisition of TNT Express by FedEx last year added a unique European road network to the company's world-class air network, "creating even more possibilities for Spanish SMEs to export both in Europe and abroad."
The study discovered that the main markets for Spanish SME exports within Europe are France (61 percent), Germany (46 percent), Italy (44 percent) and Portugal (43 percent).
Main SME competitors are in Germany (40 percent) followed by France (35 percent), Italy (30 percent) and the United Kingdom ( 2.0 percent).
The survey coincides with a FIATA statement published this week in partial response to Trump Administration trade protectionism comments: "Economic globalization has sadly become the scapegoat to justify many internal shortcomings, but local and global problems are not caused by it.
"Based on the industry's resilience there is no requirement of additional regulation at international level, while the top intervention areas that would offer a development dividend for all countries are infrastructure policy, research, education and awareness," it added.
FIATA said a precondition for such an approach must be a continuous desire by states and governments to improve the welfare of their citizens and therefore politicians should not use a short-sighted approach to decision making.
"Losing faith in international cooperation leads to futile contemplation and sterile fire-fighting from one insurgence to another. In the end social unrest prevails and this could jeopardize peace," it declared.
BRUSSELS: December 15, 2016. For the first time major global brands and logistics companies have made a collective public declaration to stop the transport of counterfeit goods.
In 2013 this amounted to US$461 billion according to a recent OECD/EU Intellectual Property Office report.
Initiated by the International Chamber of Commerce's Business Action to Stop Counterfeiting and Piracy (BASCAP), the voluntary agreement acknowledges the "destructive impact" of counterfeits on international trade and calls on the maritime transport industry to address it "through continuous proactive measures, and corporate social responsibility principles".
The first logistics signatories are CMA-CGM, Expeditors, Maersk, Mediterranean Shipping Company, Kuehne + Nagel and FIATA, together with representatives from Bayer, Chanel, CropLife, Dupont, Lacoste, P&G, Pfizer, PMI, Richemont and Unilever (pictured).
The group says it has adopted a zero tolerance policy on counterfeiting, strict supply chain controls, and other due diligence checks to stop business cooperation with counterfeit criminals.
"This declaration demonstrates the commitment of vessel owners, transport service providers and brand owners to work together to eliminate counterfeits from maritime trade routes," said Jeffrey Hardy, BASCAP director. "This commitment paves the way for new voluntary collaboration programmes between intermediaries and brand owners to stop abuse of the global supply chain by counterfeiters," he continued.
According to the U.N. Office on Drugs and Crime (UNODC), about 90 percent of all international trade travels in more than 500 million containers on 89,000 maritime vessels.
UNODC says that with less than 2.0 percent of containers inspected to verify their contents, this presents an opportunity for criminals to transport huge volumes of counterfeit products.
Commenting on the agreement, Unilever Global Brand Protection director Meena Sayal (bottom right of picture) said the major brands are "extremely pleased" by the cooperative and collaborative response from the transport industry: "BASCAP member companies, including Unilever, have been frustrated in seeing that the same transport companies that we use to ship our products around the world are being abused by criminals to distribute fake versions of our products.
"We recognize this is a new and complicated issue for many in the transport industry, but appreciate the unanimous recognition that there is a problem and more can be done to solve it," she added.
LONDON: September 26, 2016. A KPMG survey in July of 100 UK CEOs suggests many are considering relocating operations or headquarters as a result of the Brexit vote to leave the EU.
Despite 72 percent voting to remain, the majority of CEOs felt that a division in society between big business and the general public contributed to the leave result, including over a third who believed this "to a great extent". Similarly, a high proportion felt that UK big business has a responsibility to re-establish trust and communication with the general public, according to KPMG.
"Our research shows that business leaders feel the trust which was broken by the 2008 crash is far from repaired," said KPMG UK chairman Simon Collins. "Every CEO I know is worried about this and determined to rebuild trust. Many CEOs are working hard with their leadership teams to include a much broader section of society through apprenticeship schemes."
The survey of CEOs from companies with revenues ranging between £100 million and £1 billion found the majority was confident about the future growth of Britain, the global economy and their own businesses in the next three years.
However over half believe the UK's ability to do effective business with other trading partners will be hindered after leaving the EU.
Collins added: "CEOs are reacting to the prevailing uncertainty with contingency planning. In particular, the majority said they are considering relocating their headquarters or operations outside the UK. In our own work, we have seen international clients who had been considering basing [their] European headquarters in the UK, opt for Ireland instead."
He warned against Brexit contingency planning becoming 'Plan A', saying that while relocating a head office "hits the headlines", businesses could start moving operations from the UK with little public attention.
"We hear it time and time again that business needs certainty. Policy makers should be really concerned about a leaching of British business abroad and should engage with business early to understand what assurances they can offer and closely monitor any shifts overseas," he declared.
ROTTERDAM/BURLINGTON, VT. September 20, 2016. Unilever has acquired home and personal care products B Corporation Seventh Generation for a reported US$600-US$700 million.
B Corporations are for-profit companies certified by the nonprofit B Lab organization to meet rigorous standards of social and environmental performance, accountability, and transparency. More than 1,600 operate in 42 countries and over 120 industries.
One of the few logistics companies that have applied for, and obtained, B Corporation certification is Crystal Creek Logistics - specializing in frozen and dry order fulfillment for e-commerce companies from its base in Ferndale, WA. http://www.crystalcreeklogistics.com/
Entrepreneur and activist Jeffrey Hollender founded Seventh Generation in 1988 to produce household cleaning products without harmful chemicals. In 2010 Board members forced him to leave the company because they disagreed with his vision.
Last year Seventh Generation reported revenue of over US$200 million from a distribution network covering the 'natural' category in grocery, mass merchandise and e-commerce channels.
Commenting on the acquisition Kees Kruythoff, president of Unilever North America said: "Adding Seventh Generation to Unilever's portfolio of purpose-driven brands like Ben & Jerry's and Dove demonstrates our continued commitment to the Unilever Sustainable Living Plan."
Hollender named his company after the 'Great Law of the Haudenosaunee', the founding document of the Iroquois Confederacy – formed by five Native American tribes in the late 16th century in what is now New York State. The law declares: "In our every deliberation, we must consider the impact of our decisions on the next seven generations."
Former Burt's Bees CEO and now Seventh Generation head John Replogle noted: "We're proud to join Unilever and its shared vision for purpose-led business on a global scale. Working together we are confident we can have a positive impact on the health of billions of people around the world, truly fulfilling our mission of nurturing the next seven generations while transforming global commerce."
This month, Seventh Generation was included in the Environment category on B Lab's "Best of the World" lists of companies that "go above and beyond in their pursuit of positive impact". The winners scored in the top 10 percent of the B Corp community in each of five categories: Overall, Community, Customers, Environment and Workers.
In addition to Seventh Generation, winners from more than 30 countries and 44 industries included Colorado beer maker New Belgium Brewing; Roshan, a community-centric Afghanistan telecom; Revolution Foods, a food company for children based in California; Sungevity, an American solar provider; and Gardner's Supply, a Vermont retailer.
B Lab says its goal is to certify companies in order "to not only be the best in the world, but the best for the world".
LONDON: June 03, 2016. The head of United Parcel Service in the UK Luis Arriaga has joined the CEOs of HSBC, BT Group, JP Morgan, PwC and corporate leaders in warning that a British exit from the EU “will damage the UK’s thriving service sector and put jobs at risk”.
Insurance industry leaders also warn that an exit from Europe will mean likely job losses among the 34,000 people employed directly in London’s commercial insurance sector.
Over 25 million people work in the UK service sector that includes retail, hospitality, transport, professional and financial services. According to a new report by Frontier Economics, the group contributes an annual £68 billion in exports to the UK economy.
Overall, 2,050,000 jobs in Britain are linked to the country's service sector’s exports to other EU countries.
Services now account for 79 percent of the UK economy – contributing £1.3 trillion to GDP a year.
In a statement against leaving the EU the CEOs noted: ‘Britain’s service sector includes everything from retail to the arts, from finance to education, and from hotels to architects. It accounts for around 80 percent of value added and 80 percent of employment, making it the jewel in the crown of British industries.
"As the leaders of some of Britain's biggest service businesses we believe that a vote to leave the EU would damage the UK's thriving service sector and put jobs at risk. We want to ensure that Britain remains a leader in this vital field, and that is why we support the UK remaining in the EU on June 23.”
The chief executives have also been joined by 60 start-up investors with over £14 billion under management in Britain who say tech companies rely on access to the Single Market and being able to easily recruit talented workers from across the EU.
In an open letter the investors said: “Every credible financial institution - from the IMF and the OECD to the Treasury - have made clear that Brexit would lead to an economic shock. Start-ups would be the biggest victims of such a shock, endangering the firms that everyone has come to love and rely on, and who will form major elements of our economy in the future.
“That is why those of us who can will vote to stay in the European Union and all of us urge Britain to remain.”
Last month UPS opened its first UPS Access Point in Vienna for package pickup and drop off at local businesses including neighborhood grocery stores, tobacconists and petrol stations. There are currently more than 15,000 UPS Access Points across Belgium, Luxemburg, France, Germany, Italy, the Netherlands, Poland, Spain and the UK.
RENO, NV: July 25, 2016. Convenience store 7-Eleven and Reno-based drone start-up Flirtey have enabled the first delivery to a customer's residence as a step to integrating drones into the U.S. National Airspace System.
"My wife and I both work and have three small children ages seven, six and one. The convenience of having access to instant, 24/7 drone delivery is priceless," commented Reno resident Michael, who received the Flirtey delivery. "It's amazing that a flying robot just delivered us food and drinks in a matter of minutes."
According to 7-Eleven EVP and chief merchandising officer Jesus Delgado-Jenkins, drone delivery is the ultimate convenience for customers: "This delivery marks the first time a retailer has worked with a drone delivery company to transport immediate consumables from store to home. In the future, we plan to make the entire assortment in our stores available for delivery to customers in minutes."
Flirty CEO Matt Sweeny said the successful 7-Eleven delivery brings the startup closer to its vision of reinventing the delivery process for humanitarian, online retail and food delivery industries.
The company claims it is the first to conduct an FAA-approved delivery in the U.S., the first to perform a fully autonomous drone delivery to a home in the U.S. and the first to conduct ship-to-shore drone delivery in collaboration with the Johns Hopkins University School of Medicine.
In a related move, Amazon has partnered with the UK government to determine the feasibility of delivering parcels by drone.
Supported by the UK Civil Aviation Authority (CAA) Amazon will explore beyond line of sight operations in rural and suburban areas; testing sensor performance to make sure the drones can identify and avoid obstacles; and flights where one person operates multiple highly-automated drones.
"We want to enable the innovation that arises from the development of drone technology by safely integrating drones into the overall aviation system," said Tim Johnson, the CAA policy director. "These tests by Amazon will help inform our policy and future approach."
LUXEMBOURG: June 01, 2016 - The Cool Chain Association (CCA) has called for closer collaboration with shippers in the fight against global food wastage in the cool chain.
According to the U.N. Food & Agriculture Organization, about one-third of all food produced – equivalent to 1.3 billion tonnes annually – gets lost or wasted at a supply chain cost of US$1 trillion.
Delegates at the recent CCA Perishables Summit in Barcelona, Spain have agreed to find collaborative ways of achieving a common goal of reducing waste by at least 10 percent by 2025. The CCA said this would save 250,000 tons of food valued at US$1 billion and result in a one million ton reduction in CO2 and other emissions.
“Food wastage is a major issue and one which we must focus on as an industry,” said Sebastiaan Scholte, CCA chairman and CEO of Jan de Rijk Logistics. “Working together, we can find ways to fight back and make a difference, whilst at the same time adding value to the supply chain,” he added.
Latest European Commission data suggests the EU wastes 88 billion tonnes of food annually at a cost of €143 billion.
A 2015 report concluded the U.S. spends over US$218 billion, or 1.3 percent of annual GDP, growing, processing, transporting and disposing of food that is never eaten. Producers and consumers send 52.4 million tons of food to landfill and an additional 10.1 million tons remains un-harvested - resulting in nearly 63 million tons of waste.
Cool chain refers to the subset of the total supply chain that involves the production, storage and distribution of products that require some level of temperature control in order to retain their key characteristics and associated value – such as food.
According to Ken de Witt Hamer, director at WorldACD, the cool chain industry should be prepared for shifting trade patterns because of increased perishables (PER) consumption by the middle class in emerging economies: “PER products by air showed much higher growth than the overall cargo market in 2015, and we see this trend continuing in 2016.
“Future food demand may increase food sourcing outside Asia for Asian countries, given more competition for land use, increased demand and challenges for water,” he said.
“South Korea is the leading country leasing agricultural land in other countries for own food sourcing, but it is likely that India and China will [also] increase food outsourcing in the future,” he added.
NEW DELHI: June 29, 2016. A report from PwC and India’s chamber of commerce association Assocham says online companies will invest US$6-US$8 billion in logistics to support an e-Commerce market worth US$80 billion by 2020.
The report notes the country currently has very few airports capable of handling the expected growth in air express shipments.
India’s e-commerce industry, currently valued at US$25 billion, has been growing at a compounded annual growth rate of 35-40 per cent each year and is expected to exceed US$100 billion by 2021, said the study.
“Innovations are very important in this sector, as the demand is always for more reach and faster shipping at lower costs. The companies will need to invest in automation, while utilizing existing resources well,” declared Assocham secretary general D S Rawat.
PwC said 60-70 percent of India’s e-commerce sales are currently generated by mobile devices and tablets: “Increasing internet and mobile penetration, growing acceptability of online payments and favorable demographics have provided the e-commerce sector in India the unique opportunity for the companies to connect with their customers,” it explained.
"India is becoming the largest e-commerce market in the world. The rapid transformation in logistics, innovation, consumerism and productivity prove to be an interesting case study for other emerging economies," Rawat added.
PHOENIX: May 20, 2016. For the first time Unilever has topped the annual Gartner Supply Chain Top 25 index followed by McDonald’s, Amazon, Intel and H&M.
Gartner said Schneider Electric, BASF and BMW made the list for the first time, and HP and GlaxoSmithKline rejoined after several years’ absence. Rounding out the Top 10 were Inditex, Cisco Systems, Samsung Electronics, The Coca-Cola Company and Nestlé.
The bottom five companies were Johnson & Johnson (No.21), BMW, GlaxoSmithKline, Kimberly-Clark and the Lenovo Group (No.25).
"2016 marks the 12th year of our annual Supply Chain Top 25 ranking," said Stan Aronow, research vice president at Gartner. "In this year's edition, there are several longtime leaders with new lessons to share and a number of more recent entrants from the high-tech, industrial, chemical, auto and life sciences sectors."
To produce the index, the consulting company’s analysts derived a master list by combining the Fortune Global 500 and the Forbes Global 2000 and applying a revenue baseline of US$12 billion.
Gartner said Apple and P&G continued to qualify for its Masters category - introduced last year to recognize sustained supply chain leadership over the last 10 years.
In recognition that running an ethical and sustainable supply chain is a key aspect of leadership, Gartner has added a quantitative measure of corporate social responsibility (CSR) to its latest methodology. CSR is one of three standout trends highlighted for supply chain leaders in 2016, said the company.
Running socially responsible supply chains aligns with what investors, customers, employees and the general public expect from companies today added Aronow: "Mainstream institutional investors are paying greater attention to a company's nonfinancial performance indicators, including its handling of environmental, social and governance (ESG) factors."
BEAVERTON, OR: June 04, 2016. Nike has expanded its European Logistics operation in Belgium with the opening of a radical new facility at Laakdal, 50 kms. from Antwerp on the country's Albert Canal.
Key features include 100 percent renewable energy from five locally generated sources: wind, solar, geothermal, hydroelectric and biomass. Six wind turbines on-site produce enough electricity to power 5,000 households, and the on-site solar panels cover the size of three soccer fields.
The facility is fed by an infrastructure of canals, railways and highways. 99 percent of inbound containers reach the local container park, by water, not road, saving 14,000 truck journeys a year.
Moving away from a traditional structure that requires more steel and concrete, the warehouse is a rack-supported building, reducing waste and material used, thereby minimizing its footprint.
More than 95 percent of waste generated on-site is recycled. Pathways used by employees around the facility are made from recycled footwear material.
Natural light provided by many windows, a unique daylight capture system and smart, automated LED lighting help to reduce electricity costs, reduce environmental impact and provide a more productive workplace.
The facility was carefully designed to expand while supporting biodiversity. For example, sheep will help naturally maintain the landscaping, and on-site beehives will contribute to biodiversity through the pollination of flowers around the facility and in the local area.
The company says the expansion will make Nike’s European operations more efficient, more responsive and more sustainable, enabling growth by serving consumers across Nike.com, Nike retail and wholesale partners in 38 countries, all from a single inventory location.
“Globally, we ship more than one billion units of footwear, apparel and equipment every year, which demands an agile, innovative and sustainable supply chain,” said Eric Sprunk, COO, Nike.
“The expansion of our European Logistics Campus demonstrates our commitment to bring the full range of Nike products to consumers more quickly, where and when they want it – whether it’s one pair of Flyknit shoes or a 10,000-item order for a retailer,” he added.
LUXEMBOURG: May 03, 2016. Amazon has launched a pan-European ‘Fulfillment By Amazon’ (FBA), logistics service that enables sellers to deliver their inventory to one of 29 Amazon fulfillment centers that is the closest to their customers.
According to the company, sellers begin by enrolling products that are eligible for the FBA; then they ship them to their nearest Amazon fulfillment center; Amazon distributes the inventory across its European network at no extra cost; when buyers place their orders, Amazon picks, packs and ships from their closest fulfillment center; and sellers only pay the local fulfillment fee from where the product was ordered.
Francois Saugier, Amazon director of EU Seller Services said: “[The] FBA program will help sellers export to customers across the EU more efficiently than ever before, whilst allowing customers to benefit from faster delivery times and lower shipping costs.”
By gaining access to millions of new international customers, SMEs are given the opportunity to boost exports and successfully grow their business abroad,” she added.
Amazon says that last year UK sellers exported goods valued at nearly £1.4 billion; in Q1 2016 over 50 percent of EU sellers sold on more than one Amazon marketplace in the EU; and globally, FBA delivered more than 1 billion items in 2015.
In late April the company reported Q1 net sales of US$29.1 billion - up 28 percent from US$22.7 billion in the first quarter 2015. Operating income was US$1.1 billion compared to US$255 million a year earlier. Q1 net income was US$513 million compared to a net loss of US$57 million in the first quarter of 2015.
