Many manufacturing and distribution companies are wrestling with the enormous challenge of Big Data, trying to turn mountains of data into actionable information. And while some companies curse the landslide of data overwhelming their organizations, others look to capitalize on what they realize is an opportunity to better understand their customers, suppliers and costs. But the challenge is more nuanced than sculpting a huge collection of unwieldy data.
A.P. Moller-Maersk relied on higher freight rates and cost reduction schemes to lift fourth-quarter profit, but modest growth expectations and concerns about pricing has the Danish shipping conglomerate relying increasingly less on mature shipping markets and turning the focus to emerging markets and its oil business.
Port and city officials have called for expediting planned upgrades at the ports of Los Angeles and Long Beach to stave off the threat of losing cargo traffic when the $5.25bn Panama Canal expansion is completed next year.
It seems like a cruel joke. At the same time we hear about the return of manufacturing jobs from Asia to the U.S., we are inundated with stories about the growth of robotics, which threatens to take away those very jobs for good.
Analyst Insight: India has one of the world's fastest-growing economies. Based on the country's 12th Five-Year Plan, manufacturing in India is expected to grow at a healthy CAGR of 9.5 percent. However, according to a World Bank Survey, India ranks 46th in global trade logistics performance and 13th in GDP growth worldwide. Despite the generally positive economic outlook, estimates indicate that the country's inefficient supply chain results in an approximately $65bn loss per year.
- Neelam Singh, Senior Analyst, and Steve Banker, Service Director, Supply Chain Management, both of ARC Advisory Group
Expanding on its existing relationship in other countries, US Airways has appointed EFIS Air, a subsidiary of ECS Group, as its cargo general sales agent in France. The two already work together in the UK, Belgium and the Netherlands.
A global study of high-volume shippers and freight forwarders that included four of the top five global logistics providers found that 81 percent of respondents want to receive invoices electronically in 2013.
New York-based BizSlate is launching its cloud-based resource planning tool to give small business a hand with their supply chain challenges. Unlike legacy vendors in that sector, including SAP and Netsuite, the technology is specifically designed for department stores, retail chains, small boutiques and the like. Chief executive Marc Kalman says BizSlate is ideal for companies that have "outgrown QuickBooks" but don't have ample resources at their disposal for IT.
Analyst Insight: The talk in outsource circles these days continues to revolve around the need for bigger and better collaboration and innovation. Some articles talk about the end of outsourcing, but what they mean - and a better way to put it - is to think about the end of outsourcing relationships as we know them.
- Kate Vitasek, faculty, University of Tennessee's Center for Executive Education. and Founder, Supply Chain Visions
Analyst Insight: With the government of India recently liberalizing foreign investment into the country's retail sector, many global retailers are eyeing the country as the next expansion opportunity. The experience of early entrants into India's organized retail has shown that supply chain inefficiencies are among the top hurdles to profitability. The unique Indian context requires creative sourcing approaches and significant investment in training and retaining local skilled supply chain talent.
- Viktoria Sadlovska, Chief Research Officer, Prameya Research