Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut et diam. Aliquam quis nunc quam. Maecenas feugiat dui venenatis dui convallis, a consectetur quam ornare. Proin eleifend, tellus in interdum malesuada, eros purus mattis augue, in auctor nunc ligula vel metus. Duis congue, lacus quis viverra egestas, felis elit imperdiet lorem, quis consectetur odio libero vitae sapien. Morbi ut velit tincidunt, pellentesque elit vitae, ultrices massa. Maecenas varius tellus nisi, ac consectetur est pulvinar in. Integer consequat maximus dui, vitae dignissim tortor iaculis eu. Nullam scelerisque consequat fringilla. Duis leo libero, accumsan gravida tincidunt vitae, congue in mauris. Morbi nec lorem nec urna tincidunt molestie ut id nibh. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.

britains

Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut et diam. Aliquam quis nunc quam. Maecenas feugiat dui venenatis dui convallis, a consectetur quam ornare. Proin eleifend, tellus in interdum malesuada, eros purus mattis augue, in auctor nunc ligula vel metus. Duis congue, lacus quis viverra egestas, felis elit imperdiet lorem, quis consectetur odio libero vitae sapien. Morbi ut velit tincidunt, pellentesque elit vitae, ultrices massa. Maecenas varius tellus nisi, ac consectetur est pulvinar in. Integer consequat maximus dui, vitae dignissim tortor iaculis eu. Nullam scelerisque consequat fringilla. Duis leo libero, accumsan gravida tincidunt vitae, congue in mauris. Morbi nec lorem nec urna tincidunt molestie ut id nibh. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.

dev_er

Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut et diam. Aliquam quis nunc quam. Maecenas feugiat dui venenatis dui convallis, a consectetur quam ornare. Proin eleifend, tellus in interdum malesuada, eros purus mattis augue, in auctor nunc ligula vel metus. Duis congue, lacus quis viverra egestas, felis elit imperdiet lorem, quis consectetur odio libero vitae sapien. Morbi ut velit tincidunt, pellentesque elit vitae, ultrices massa. Maecenas varius tellus nisi, ac consectetur est pulvinar in. Integer consequat maximus dui, vitae dignissim tortor iaculis eu. Nullam scelerisque consequat fringilla. Duis leo libero, accumsan gravida tincidunt vitae, congue in mauris. Morbi nec lorem nec urna tincidunt molestie ut id nibh. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.

Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut et diam. Aliquam quis nunc quam. Maecenas feugiat dui venenatis dui convallis, a consectetur quam ornare. Proin eleifend, tellus in interdum malesuada, eros purus mattis augue, in auctor nunc ligula vel metus. Duis congue, lacus quis viverra egestas, felis elit imperdiet lorem, quis consectetur odio libero vitae sapien. Morbi ut velit tincidunt, pellentesque elit vitae, ultrices massa. Maecenas varius tellus nisi, ac consectetur est pulvinar in. Integer consequat maximus dui, vitae dignissim tortor iaculis eu. Nullam scelerisque consequat fringilla. Duis leo libero, accumsan gravida tincidunt vitae, congue in mauris. Morbi nec lorem nec urna tincidunt molestie ut id nibh. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.

Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut et diam. Aliquam quis nunc quam. Maecenas feugiat dui venenatis dui convallis, a consectetur quam ornare. Proin eleifend, tellus in interdum malesuada, eros purus mattis augue, in auctor nunc ligula vel metus. Duis congue, lacus quis viverra egestas, felis elit imperdiet lorem, quis consectetur odio libero vitae sapien. Morbi ut velit tincidunt, pellentesque elit vitae, ultrices massa. Maecenas varius tellus nisi, ac consectetur est pulvinar in. Integer consequat maximus dui, vitae dignissim tortor iaculis eu. Nullam scelerisque consequat fringilla. Duis leo libero, accumsan gravida tincidunt vitae, congue in mauris. Morbi nec lorem nec urna tincidunt molestie ut id nibh. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.

Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut et diam. Aliquam quis nunc quam. Maecenas feugiat dui venenatis dui convallis, a consectetur quam ornare.

Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut

Johnnie Doe

wor

Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut et diam. Aliquam quis nunc quam. Maecenas feugiat dui venenatis dui convallis, a consectetur quam ornare. Proin eleifend, tellus in interdum malesuada, eros purus mattis augue, in auctor nunc ligula vel metus. Duis congue, lacus quis viverra egestas, felis elit imperdiet lorem, quis consectetur odio libero vitae sapien. Morbi ut velit tincidunt, pellentesque elit vitae, ultrices massa. Maecenas varius tellus nisi, ac consectetur est pulvinar in. Integer consequat maximus dui, vitae dignissim tortor iaculis eu. Nullam scelerisque consequat fringilla. Duis leo libero, accumsan gravida tincidunt vitae, congue in mauris. Morbi nec lorem nec urna tincidunt molestie ut id nibh. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.

Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut et diam. Aliquam quis nunc quam. Maecenas feugiat dui venenatis dui convallis, a consectetur quam ornare. Proin eleifend, tellus in interdum malesuada, eros purus mattis augue, in auctor nunc ligula vel metus. Duis congue, lacus quis viverra egestas, felis elit imperdiet lorem, quis consectetur odio libero vitae sapien.

Praesent eu massa vel diam laoreet elementum ac sed felis. Donec suscipit ultricies risus sed mollis. Donec volutpat porta risus posuere imperdiet. Sed viverra dolor sed dolor placerat ornare ut et diam. Aliquam quis nunc quam. Maecenas feugiat dui venenatis dui convallis, a consectetur quam ornare. Proin eleifend, tellus in interdum malesuada, eros purus mattis augue, in auctor nunc ligula vel metus. Duis congue, lacus quis viverra egestas, felis elit imperdiet lorem, quis consectetur odio libero vitae sapien. Morbi ut velit tincidunt, pellentesque elit vitae, ultrices massa. Maecenas varius tellus nisi, ac consectetur est pulvinar in. Integer consequat maximus dui, vitae dignissim tortor iaculis eu. Nullam scelerisque consequat fringilla. Duis leo libero, accumsan gravida tincidunt vitae, congue in mauris. Morbi nec lorem nec urna tincidunt molestie ut id nibh. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce vulputate quam turpis, non egestas ante auctor non. Maecenas eget blandit mi, sit amet fringilla libero. Vivamus a sagittis lectus, ut aliquam.

Morai-Logistics-Blog-Amazon-Target

Target, the U.S retailing giant has recently been getting a lot of attention from the Canadian press. Unfortunately for Target, the discussion has been how in this year alone, it had a $941 million loss in the Canadian market due to the baffling mismanagement and miscalculations it made it its first foray into a foreign market.

While Target had peers that failed in foreign markets for similar reasons it could’ve learned from, the biggest lessons it should’ve studied were those of Amazon’s which managed to not only capture 7 % of all e-commerce in Canada, but also has the potential to account for 1% of total retail sales in the country. Although the business models of the two companies are different, the obstacles, opportunities, and logistical limitations are not.

Planning vs. Buying

Amazon did a lot of preliminary work before opening its first Canadian distribution center in 2010.

  • It had eight years of goodwill and visibility in the Canadian e-commerce market through amazon.ca
  • It worked closely with the Canadian government to override certain Canadian foreign-ownership rules that would’ve been barriers to its expansion
  • For its part of the partnership with the Canadian government, Amazon gave a $20 million investment commitment into Canada, $1.5 million of which went to cultural events and awards
  • It ran a number of interviews and press releases addressing a number of concerns and criticisms from its critics while also communicating its intentions of gradually branching product categories

Target’s approach was considerably different. Instead of a slow province-by-province rollout, it tried to achieve “critical mass” from the onset by sinking $1.8 billion into buying out Zeller locations (which didn’t include renovation costs) and opened 124 stores across Canada in 2013.

Logistical Adaptability

Both companies faced logistical complications when they entered the Canadian market because of the country’s vastly differing regional tastes, strict trade and wage laws, and geographical vastness. As a result, the initial offering of both Amazon and Target for Canadians was paltry, and priced higher than their respective American counterparts.

Amazon’s approach to offset this problem was to offer a modest selection while maintaining the convenience it’s known for. It focused mainly on books and smaller items and overtime, introduced 14 new merchandise categories that would receive a lot of Canadian press attention. Through this, Amazon.ca was able to build for itself a loyal customer base. This approach also drew attention away from the inflated prices, which is a common technique amongst the successful American-based companies doing business in Canada.

Target hadn’t really planned outside of creating a Canadian specific brand (which failed to launch on time), and sticking rigidly to the management, sale, and promotional models that it had in the U.S., even when it clearly wasn’t working.

Differences in Canadian packaging laws, protectionist tariffs on some foods and exclusive wholesale arrangements also meant that the Canadian stores couldn’t be serviced from the company’s American distribution network. Many of the 124 Target stores had whole sections that were empty of products, while other items were overstocked and congested the supply lines further.

The empty stores led to customers instead focusing on price, which is an area a U.S based company can’t compete in for the reasons mentioned earlier.

Lessons Learned

When comparing Amazon’s success in Canada with Target’s failure, there are several lessons that can be learned

  1. Do your homework –Amazon did a lot of preliminary work before it entered into the Canadian market whereas Target simply assumed the business climate would be similar enough to its home base.
  2. Be flexible—Amazon success international is largely due to its ability to adapt to changing tastes and trends. Target’s failure in Canada is in large part due to its insistence on rigidity.
  3. Patience—Target sought to control a portion of the Canadian retail market at the onset. It failed to remember that entering a foreign market is a patience game, and as a result it lost billions.

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

Morai-Logistics-Blog-TransparencyTransparency was one of the most predicted trends for the logistics and supply chain industry in 2015. In the past, it was usually prohibitively expensive in both time and resources for businesses and customers alike to trace the origins of each aspect of a product. Now, there are a number of sites, institutions, and apps dedicated to making supply chain networks more visible. Large, network-dependent businesses such as Starbucks and Amazon have also adopted, and have started championing this trend.

Greater transparency is no longer just a lofty goal for the logistics industry; it is an essential business strategy if a company wishes to remain competitive.

However, there is one small but important detail that is over looked when discussing transparency. That is that a transparent supply chain is not necessarily the same as an ethical supply chain.

Customers Want Ethical, Not Just Transparent Supply Chains

McDonald’s recently made the mistake of confusing transparency with ethical when it launched its “Your Food, Our Questions” campaign in October. The campaign involved having videos and a section of their site dedicated to answering common customer questions about their products in great detail. Despite their effort at being more candid with its customers, McDonald’s has still received a lot of criticism for not actually doing anything about making any meaningful commitments towards sustainability.

For an older, more cautionary tale about not pushing for an ethical supply chain, read the story of Nike and its PR disaster that was born from its unethical suppliers that ultimately had Nike’s earnings fall 69%. Despite Nike previous attempts at being forward thinking by being open with its customers that it couldn’t reasonably keep track of its suppliers, and its declared commitment to uphold a higher ethical standard within its U.S facilities, it did little to stop the fallout of the scandal.

Looking at the Numbers

This past August, Forrest Burnson and his associates at Software Advice, a company that analyzes logistics software, published a summary of research they had conducted meant to gauge which initiatives along different links of the supply chain would make customers more likely to buy—or pay a premium for—a company’s products. The research, which was a series of surveys, asked participants how much more they would pay for a product that was produced more ethically with respect to a particular link in the supply chain: raw materials, manufacturing and distribution.

The study’s three key findings were,

  1. On average, consumers say they would pay 27 percent more for a product normally priced at $100 if it was produced under good working conditions.
  2. Consumers were split on whether improved working conditions, community involvement or environmental efforts would most convince them to buy from a firm.
  3. Twenty-eight percent of consumers said reducing water usage was an environmental initiative that would make them more likely to purchase a company’s products.
Source: Software Advice
Source: Software Advice

The implications of the study’s findings indicate that customers care most for “labor conditions for the workers who make their products” when given the choice to pay a premium for a better ethical standard in different areas. However, more importantly, the research also gives evidence that there is a very real market for ethical supply chains. This is a market that, in this writer’s opinion, will grow in tandem as transparency becomes ever more ubiquitous.

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

Morai-Logistics-Blog-Climate-Change

With January in full swing and the weather continuing to plummet, it is important to take a moment and discuss a topic that doesn’t receive as much mention as the more popular topics currently trending. This topic is the impact climate change is having on supply chain logistics.

According to The Associated Press’s study released in 2014 by the Intergovernmental Panel on Climate Change found that the increasing prevalence of severe weather will have negative effects on infrastructure, agriculture and the overall well-being of humans. As climate extremes continue affecting different parts of world, businesses and industries that are reliant on logistics networks are also at considerable risk.

A chilling look at a negative trend

A 2011 study released by EWENT (Extreme Weather impacts on European Networks of Transport) looked a number of detailed case studies and metadata to determine the costs and consequences of extreme weather on European freight and logistics industries and supply chains. The conclusion of the study was disheartening, as stated by the researchers:

The above attitudes indicate that business people in transport, logistics and infrastructure provision and management sectors did not have a good grasp of linkages between the probability of extreme weather and the risk of company damage

Although those surveyed in the study claimed they were prepared and had measures in place to account for weather extremes, they relied too heavily on government assistance claim the researchers,

Therefore, they could not carry out the risk tolerance appraisal and take decisions as to which preventive and risk mitigation strategies to employ. In the absence of understanding of their own risk tolerance threshold, they removed extreme weather hazards from strategic decision-agenda

… which as the study demonstrates, was to their own financial detriment. It isn’t all doom and gloom however.

New field of study and Weather-proofing

‘Adaptive logistics’ has seen major growth since it was proposed in 2010 by Alan McKinnon and Andre Kreie of the UK based Logistics Research Centre at Heriot-Watt University. Their paper on the need for this to become a field for the logistics industry outlined how, at the time, not enough research existed on the impact climate change was having on supply chains. The term itself, ‘adaptive logistics’, is defined in the paper as a field of study that will analyze how logistics will respond to environmental change, and then “this response can either be direct where logistics systems must be modified to minimise adverse climate impacts or indirect, where climatic change alters the demand for logistical services and systems must be reconfigured accordingly”.

Source: Logistics Research Centre, Heriot-Watt University, Edinburgh, UK
Source: Logistics Research Centre, Heriot-Watt University, Edinburgh, UK

Some companies have also begun taking a more pro-active approach to reducing the potential risks of extreme weather affecting operations or revenue.

An excellent article by Inbound Logistics’s Gary Hanifan summarizes and analyzes the findings of Reducing Risk and Driving Business Value, a 2012 survey conducted by the Carbon Disclosure Project (CDP) and Accenture and gives advice as to how to raise supplier awareness about the risks climate change is having on their business. Some of the more interesting points quoted in the article were the following:

  • A current or future risk related to climate change was identified by 70 percent of the 2,500 companies responding to the survey
  • More than half of the supply chain risks due to drought and precipitation extremes are already affecting respondents’ operations, or are expected to have an effect within the next five years
  • Other concerns include the potential for reducing or disrupting production capacity, reduced demand for goods, and even the inability to do business
  • Supplier awareness is an even greater concern. Nearly one in five respondents indicate that their suppliers are not aware of the water risks affecting operations. Another 38 percent say their suppliers are aware of, but not actively engaged in, addressing the challenge

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!

We hope everyone has had a great holiday and we would like to wish all of our readers a Happy New Year! To kick off the year, we have finished compiling our infographic on the top logistics and supply chain facts from the news that we’ve collected throughout last year. As there is a large number of news items spanning the many large topics in the logistics industry, we decided to create our Top 10 by focusing on categories:

  1. Drones
  2. Same-Day Deliver
  3. Supplier Diversity and Women
  4. Sustainability
  5. RFID
  6. World Bank Institute’s Private Sector Platform
  7. Automation
  8. Online Retail
  9. Truck Driver Shortage
  10. Logistics Slow Growth

Each of these topics have some pretty interesting facts and statistics that may have been missed in the hustle and bustle of fellow logistics professionals and enthusiasts. And while we haven’t covered all of the interesting facts from 2014; we felt that these topics helped changes the face of the logistics and supply chain industry in 2014 and serves a good snippet to review the year.

Top 10 Logistics and Supply Chain Facts of 2014

Morai-Logistcs-Top-10-Logistics-and-Supply-Chain-Facts-of-2014

That’s it for us this week! If you liked this blog post, why not subscribe to our blog? If you’re interested in what we do as a 3rd party logistics provider, don’t hesitate to check out our services (as expressed above, we are very pro finding you the lowest total cost!). We’re also in the twittersphere, so give us a follow to get the latest logistics and supply chain news!