In response to growing demands, experts consider cloud logistics as an optmization tool for the transportation supply chain industry in 2019.

Technology is the source of continuous global economic and social change. In addition to improving our every day lives, it also enables industries to advance and optimize communications, operations, production and servicing. For the supply chain and logistics industry, technology continues to shape the way products are distributed across the globe. It has also pushed leaders to explore digital maturity and leverage different platforms to help compete with demanding markets.

According to PwC, cloud technology addresses setbacks associated with scalability, flexibility and efficiency across an organization.  As with any new internet based technology, uncertainties include ‘unclear development costs and data security’. Regardless of these risks, Cloud logistics is expected to make a significant impact on the transportation supply chain industry in 2019.

This article by Morai Logistics looks into the way cloud logistics is shaping the supply chain and logistics industry. A specific focus will discuss the role of transportation management systems in advancing operations.

Cloud Logistics in Supply Chains

There are a few reasons why cloud logistics has become an innovative move for supply chains. Connected logistics not only drives revenue, but it also improves the way processes are managed. Cloud technology has experienced incredible growth across a variety of industries. Forbes found that,

The Worldwide Public Cloud Services Market is projected to grow by 17.3 3% in 2019 to total $206.2 billion”.

Furthermore, by 2023, the ‘global connected logistics market’ will reach ‘$73,846.1 million. In response to increased consumer demand, leveraging cloud technology helps organizations do business better. Oracle, a global leader in computer technology, creates cloud logistics solutions to help logistics organizations achieve the following:

  • Streamline transportation networks
  • Optimize warehouse operations
  • Push out efficient fulfillment strategies
  • Simplify business

The advancement of cloud technology also enables transportation supply chains to remove manual and inefficient steps throughout the end-to-end experience. Therefore, the end goal is to optimize the supply chain to create solutions that help meet increased consumer demand. In addition, cloud logistics also helps organizations automate processes, which improves productivity.

Current Barriers to Cloud Integration

According to a global survey on enterprise risk, there are a variety of reasons shaping the way organizations feel about cloud computing. Six risks were found to be “somewhat of a challenge” to over 50% of respondents.

  • 54% reported Governance
  • 51% reported Lack of resources/expertise
  • 53% reported managing cloud spend
  • 51% reported security
  • 52% reported compliance

The above risks are quite common when integrating new technology into supply chain operations and processes. In past articles, Morai Logistics has discussed the importance of developing a labour force with the advanced skills to support technological advancements. Cost is also a factor many supply chain organizations look at when implementing new solutions. Thus, integrating cloud logistics is also an optimal cost savings tools. Its core function is to help streamline transportation, operations and production processes.

Forward Thinking

In response to an increase in consumer demand and expectation, the supply chain and logistics industry must seek innovative solutions to remain competitive. Technology shapes the way organizations do business and interact with customers. Therefore, it’s beneficial to implement optimization tools that are aligned with consumer behaviour. Despite the raised challenges, cloud logistics is an optimization tool that can help supply chains achieve efficiency, visibility and scalability.

According to the report Digital Supply Chain: Creating Skills for the Future, the Canadian supply chain and logistics industry currently employs 878,000 people. Digital technologies is stated to be a contributing factor to the increase in job creation expected to happen over the course of the next five years.

However, research also identifies Canada’s ranking as the 14th nation in the World Bank’s Logistics Performance Index.

While the country’s investment in research and technology remains high, less than 41% of Canadian industries actually utilize advanced communication technologies. The report further identifies that as the integration of emerging platforms continues to rise, the need for an advanced workforce is critical.

Unceasing technological advancements in the form of artificial intelligence, the Internet of Things (IoT) and Big Data, are necessary to help companies keep up with consumer needs and demands. They’re also key to improving the countries performance in trade logistics.

This eBook takes a look at current technology trends that will have a direct impact on the transportation supply chain and logistics workforce.

What does an Advanced Supply Chain look like?


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This post highlights three strategic areas which many companies overlooked in 2017; strategy, security & interaction, and how to best achieve improvements in these areas.

It’s the second week of January. This means that roughly 30% of people have already stumbled on their New Year’s Resolutions. While many of these resolutions are weight, money or relationship related, for us in the supply chain industry, we have different priorities.

Our goal as supply chain specialists is to get the right items to the right places at the right time. Moreover, we need to be aware of the delicate balance that can be easily disrupted in logistics.

2017 has been an interesting year. Specifically in the major technological, economic and market-driven shifts. This means that being successful in 2018 will require adjustments.

For this reason in today’s blog post, we’ve highlighted some important developments in the world of supply chains and how to best tackle these new challenges.

Paying More Attention to Demand

Given the name of the field ‘supply chain & logistics’, a person could be forgiven for thinking all we’re concerned about is supply. However, supply and demand are intricately tied, which is why it exists after all.

After all, globalization, international business markets, marketing spend, weather, etc. makes demand difficult to quantify and predict. But, that doesn’t mean it isn’t possible.

On this topic, Jeff Metersky, VP of customer success strategy at LLamasoft, writes:

Supply chain professionals should absolutely strive to better understand demand; after all, demand is one of the most important factors impacting your overall supply chain design. You need to make sure your business has a solid grasp on future demand to ensure sufficient capacities are in place and products are deployed appropriately.

Metersky says that properly predicting demand starts by asking yourself these important questions:

  • Do you have challenges getting internal approval of or buy-in for strategic supply chain initiatives due to lack of visibility into long-term future demand?
  • Are you able to provide insights into company management about how evolving demand trends might impact your supply chain?
  • Are you able to model the long-term impact of demand based on internal company strategic decisions (new product design, current product life cycles, expansion into new markets)?
  • Do you have a solid understanding of and ability to quantify the factors driving changes in demand over the long term?
  • Do you need more reliable long-term demand projections to support strategic decisions about changes in your network design?

Improving Data Security

Many high-profile cyber attacks happened in 2017. They took a heavy cost on both the global economy and consumer confidence. To get ahead this year, organizations need to take advantage of emerging trends in technology and cyberspace to better handle high-risk security risks.

The Information Security Forum recommends that businesses focus on the following security topics in 2018:

  • Crime-As-A-Service (CaaS)
  • Expands Tools and Services
  • The Internet of Things (IoT) Adds Unmanaged Risks
  • Supply Chain Remains the Weakest Link in Risk Management
  • Regulation Adds to Complexity of Critical Asset Management
  • Unmet Board Expectations Exposed by Major Incidents

Take a look here for a comprehensive explanation of each security topic.

Improving Our Everyday Interactions with Other People

This one may seem like a no-brainer, but saying things like “please” and “thank you” tends to get lost once peak time rolls around. While supply chain & logistics continues to be a hot industry, that doesn’t mean that it’s zero-sum with manners. Striving towards being more personable is something we should all aim for in 2018. Whether it be with clients or coworkers.

2018 represents an opportunity to deep dive and find ways to improve the way we do things. Whether those improvements be strategic, technological or just a commitment to being more kind. Properly laying out and adhering to goals is what matters. Let’s be part of that 10% who achieve their resolution.

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While modern companies focus on providing exceptional service, Nintendo continues to focus on extraordinary products with a Customer-Centric approach.

In our last post, we began exploring the reasons behind Nintendo’s history of not meeting consumer demand. Many of its gaming consoles, software, peripherals and promotional items in the last 20 years have seen instances of scarcity across its North American and European markets. Limited supply, inflated grey market prices, and angry consumers have been the result.

Nintendo’s latest console, the Switch, launched a few months ago with similar supply shortages. Some customers and press accused the company of intentionally limiting production to drive sales given the familiarity of the situation.

What’s behind the latest supply issues is the company’s customer-centric philosophy, not artificial scarcity.

Artificial Scarcity Isn’t the Problem

On the surface, Nintendo’s selling practices may seem to favour artificial scarcity to drive sales. The problem with this theory, is that artificial scarcity is only ever a short-term solution for luxury products. Artificial scarcity only generates demand because of perceived scarcity. The actual value of the product isn’t considered, meaning that the company doing it has little incentive to innovate the product. After a certain point, and despite a company’s attempts, there will be too much of a product in circulation for it to maintain its price.

Nintendo is a nearly 140-year-old multi-national company, iconic and influential in its industry. If it followed the same strategy as the former Beanie Baby empire, it would’ve folded decades ago.

The ‘problem’ with Nintendo’s management and supply chain strategies, is that they’re very customer-centric.

Customer-Centric: An Old but Effective Model for Nintendo

Newcomers like Amazon, Uber and PayPal have been disruptive to many industries. However, their biggest contribution is the latest trend of customer-focused strategies. Many companies are now trying to streamline their services to better improve the customer experience.

Ken Ramoutar of Avanade Insights, highlights what a customer-centric focus involves:

  • Anticipate your future needs looking at behavioural patterns, market trends, leveraging data from inside and outside the organization
  • A unique and memorable experience; seamless across your interaction channels
  • Analytics to inspect call logs and problem reports to feed changes in supply and production

None of these describe Nintendo’s business practices or product design philosophy. In fact, the company is notorious for being especially conservative in an industry that’s in constant flux.

Nintendo and Unique Gaming Experiences

Nintendo’s focus throughout its long history, is on creating products that provide a unique experience in and of themselves. Unlike its past (Sega) and current competitors (Sony and Microsoft), the company never bothered to chase the latest technological, marketing or business trends. This historically had both good and bad results for the company at different points in its history. However, it has allowed it to remain strong in the face of ever ballooning industry costs. Sony and Microsoft may have millions of dollars to throw behind their development and marketing strategies, but Nintendo has its Blue Ocean Strategy.

That’s it for this week’s post. In the final entry of this three-part series, we’ll describe how Nintendo’s Blue Ocean Strategy and customer-centric approach has led it to continue to be a dominating force within its industry.

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.


Beloved entertainment giant Nintendo has a long history of trouble getting their products to the right hands.

Almost two months ago, video game giant Nintendo released its latest console—the Switch. Although it received a lot of positive coverage, a familiar problem has been marring the consumer goodwill; extreme product scarcity.

The company’s sales forecasts were off. They were so off that additional Switch consoles had to be flown to their North American and European distributors. Although Nintendo took a drastic action and its been two months since the launch, the consoles are still hard to find. Some are even claiming that it’s a case of artificial scarcity.

Before we can begin to answer the question of Nintendo’s possible motives, there’s a few basics that need to be gone over.

Make it Rare, Make it Wanted

The scarcity of a commodity or a service is an important element of the business model. If there’s a lack of supply, the price will likely go up. If there’s overproduction, the price will start going down. While scarcity is a natural and fundamental part of a free market, artificial scarcity is not.

Artificial scarcity happens when an individual, company or organization creates a scarcity either through technology, production or law, where there would otherwise be the capacity for an abundance.

A classic example would be the Beanie Babies during the 90s. Ty Warner, the person behind the craze, “would retire specific animals at whim, creating scarcity in the market and inspiring collectors to pay up to $5,000 for a plush toy that originally retailed for $5” writes New York Post contributor, Larry Getlen:

Ty’s website further fueled the phenomenon, as the company used it to make retirement announcements and to speculate on possible retirements, dropping hints that drove collectors to buy or sell different lines. Some sellers even began changing prices throughout the day based on website updates

In the end, the Beanie Baby empire came crashing down. Collectors became overwhelmed by all the new product lines and regular customers got tired of fighting with scalpers. The rise and fall of Beanie Babies is a lesson in how even the hottest products can tank if consumers aren’t respected.

Nintendo Has a History of Underestimating Demand

While misjudging demand is something many businesses go through, Nintendo is a special case. Pretty much every piece of hardware released by the company has met with supply problems.
Just to list a few, here are some examples:

  • NES Classic Mini. Retailed for $60 USD, now on Ebay for $250+ and climbing.
  • Amiibos, RFID-enabled collectable gaming peripherals originally sold for $12.99. Some of harder to find ones ended up selling on the grey market for over $100 USD.
  • New 3DS XLs were impossible to get a hold in NYC when they released earlier this year according to an article from The Verge.

Just from these examples (there are many more), it’s safe to say that the company has a history of seriously understating the demand for it’s products. Many potential customers are turned-off from buying Nintendo products for this very reason.

Is it a problem with Nintendo’s supply chain or management? What if the problem is intentional, the supply intentionally restricted as many consumers suspect? The answer to these questions require nuance which is why we’ll leave off answering them until the next blog post. Check back again soon for the second part of this two-part topic.

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.

Earlier this month, Research and Markets added to their “Third Party Logistics (3PL) Market Analysis By Service, By Transport (Roadways, Railways, Waterways, Airways), By End-Use (Manufacturing, Retail, Healthcare, Automotive), By Region, And Segment Forecasts, 2014 – 2025” report.

Experts are estimating the 3PL market to reach USD $1.24 trillion within the next decade. That’s a massive increase considering that the current market is estimated to sit at USD 721 billion according to Armstrong & Associates, Inc. There are eight reasons why this is the case. That’s why this month we thought we’d focus our infographic on the top market growth predictions for 2025 when it comes to the third-party logistics industry.

Third-Partly Logistics Market Growth Predition for 2025


As business around the globe continue to expand their operations, the 3PL market will continue to parallel its growth. The Research and Markets updates highlight how this will affect revenue and coverage. Overall, it looks like the next few years will be a good time for the 3PL market.

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.


Uniqlo is speeding up its production cycle to compete in the shipping race with other fashion retailers by compressing its design-to-deliver supply chain down to just 13 days.

Few things in life move as fast as fashion trends. Just as a style becomes widely accepted, its immediately replaced by something new and different. It’s no surprise then that self-styled fashionistas want what’s hot on the catwalk as soon as they see it.

Fashion retailers try to oblige by optimizing aspects of their supply chain so the latest trends reach mainstream consumer markets as quickly as possible. There’s even a term for the process, it’s called ‘fast fashion’.
This is top priority for retailers such as Peacocks, H&M, Topshop and Zara. And now, it’s also Uniqlo’s guiding philosophy as of this March announcement.

What ‘Fast Fashion’ Means to the Uniqlo Brand

Uniqlo embracing the fast model marks a departure for the company. For years, its brand message was of “quality first, then price” and “simple made better”. It never really chased the most current trends, instead opting for providing wardrobe essentials. However, 2016 saw a disappointing year for the retailer. The company made a 40% cut to its revenue predictions for the next five years. It’ll now be putting more resources into something Zara has been doing well—speed.

According to Bloomberg, Uniqlo is trying to compress its design-to-deliver chain down to just 13 days. Despite the reduced time, company owner Tadashi Yanai is assuring customers that the Uniqlo brand will retain its identity:

Zara sells fashion rather than catering to customer needs. We will sell products that are rooted in people’s day-to-day lives, and so based on what we hear from customers.

Uniqlo also announced it plans to improve its supply chain with heavily automated production facilities and artificial intelligence to determine the most efficient design and delivery routes.

Fast Fashion for a World Where Everything is Fast

An article on covering fast fashion suggested that the philosophy of faster delivery is linked to instant gratification, and for many retailers, it has helped lower the return rate. Writer Jeff Manoff describes how during the New York Fashion Week, big names such as Ralph Lauren, Michael Kors and Tommy Hilfiger revealed see-now, buy-now styles. Several retailers even had one-day delivery options.

There are a few reasons why this is happening according to Manoff:

  • In eight years, the total sale of luxury sales online is estimated to reach $90 billion.
  • Delivery times have been decreasing. They went from nearly 5 days in 2013 to around 4 days just two years later.
  • Customer expectations have also shifted. Unless a delivery is made within two days of purchase, it’s no longer considered “fast”.
  • Even same-day delivery may no longer be enough. Some retailers are now offering one-hour and 90-minute deliveries.
  • Faster delivery is linked to a decrease in return rate which helps overall sales.

Closing Thoughts on Uniqlo’s Clothing Logistics

Uniqlo’s literal change of pace may be a shock to some of its customers. However, it shouldn’t be too much a surprise for anyone looking fashion retail industry trends. Customers want and expect to have things immediately after they order them. As online shopping grows, the number of people with similar demands will also increase. If the fashion, or any retail industry really, wants to stay viable, it’ll need to shorten its supply chain and speed up delivery.

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.

Mexico continues its rise as an important global logistics hub with the opening of a new container terminal at the Lázaro Cárdenas port, earlier this month. There are ten reasons why this is important to companies with supply chains in South America.

Lázaro Cárdenas is Mexico’s busiest port and considered one of Latin America’s most important. With the improvements, it’ll also be the continent’s most modern port. According to the World Bank, Mexico’s imports have grown more than 30% since 2010. Container volumes are also up 60% in just the last three years. These statistics, along with the fact that it has more than 45 free trade agreements, is the reason behind Mexico’s meteoric rise as an important global logistics hub.

That’s why this month we’re going to be focusing on how this new port is something to be very exited about for cross-border logistics and supply chain professionals looking south of the border!

10 Reasons to be Excited About the New Lázaro Cárdenas Container Terminal


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.

online shopping image spread

Changing consumer behaviour is reshaping and revitalizing industrial sectors by funneling resources into warehouse construction.

According to an article by the Wall Street Journal (WSJ), the digital market place is having a physical impact on urban landscapes. Throughout the U.S, industrial pockets are seeing a “economic renaissance” reports the article’s author, Erica E. Phillips.

Large city malls and brick & mortar stores are being closed throughout the country due to dropping consumer interest. In their place, more people are shopping online for what they need. As a result, more warehouses are needed to store everything. This has led to formerly struggling industrial areas receiving fresh investment as land prices for new distribution centres increases.

Online Shopping—The World’s Biggest Marketplace

It can be hard to imagine, but even the idea of online shopping is still relatively new. The earliest version of the concept only dates back to 1979. Industry giants such as Amazon, Alibaba and Ebay are only 23, 18 and 22 years old respectively. In the two decades since they started (a little less in Ebay’s case) they, and companies like them, have revolutionized how people shop.

According to

  • In 2013, US mobile commerce revenue amounted to more than 38 billion US dollars
  • Alternative payment methods such as digital wallets or online payment providers have seen increased adoption rates and rapid growth in the past few years. Ebay-owned PayPal is one of the current market leaders with more than 14 billion US dollars in mobile payment volume alone
  • A 2016 study by analytics firm comScore found that shoppers make around 51% of their purchases online. The number of has been consistently rising by 1% for the last few years

Even luxury retailers are turning towards being more online shopping-friendly. A different WSJ article reported that retailers of high-end goods are scrambling to go online as sales are starting to fall. This is because even wealthy customers like having access to better deals and selection at their finger tips.

From Shopping Centre to Housing, and Neighbourhood Mall to Restaurants

As more families shop for their necessities online, where does that leave traditional brick and mortar stores? Unsurprisingly, many have either dedicated part of their operations to compete online themselves, changed to become more service-based, or closed down altogether.

Phillips comments on how the space shopping centres used to occupy is being re-purposed:

Many cities are razing downtown shopping centers from a bygone era to make way for hotels, office buildings and new housing developments. Suburban malls trying to keep the doors open have shifted their focus to higher-scale restaurants and new entertainment offerings, such as golf driving ranges, wall climbing and skydiving simulators.

All this is a win-win for consumers and urbanites. As warehouses become a way a life for formerly struggling communities, consumers everywhere will have access to a wider range of products and deals. The weekly shopping can then be completed in just a few minutes. This leaves more time for a family to explore the new restaurants that have sprung up where the old malls used to be.

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.


With many career options, interest in logistics and supply chains is growing as more people want to know where their purchases came from. But did you know how large and varied the entire logistics and supply chain industry is? When thinking about career options, there’s a whole world or responsibilities awaiting this industry.

Technology such as RFIDs, barcodes and the internet have allowed for products to tell their rich histories to consumers. It’s not surprising then that more people are becoming interested in how things get from A to B. That interest may even grow to become an active step towards a career in the logistics and supply chain field.

However, the industry is much more encompassing than most people realize. It can even seem overwhelming if you haven’t done your research. To get a better understanding of the field, we’ve compiled a list of three things to know before you make the jump.

1. It’s a Bigger and More Varied Industry Than You Think

The logistics and supply chain industry is big, very big. In the U.S alone in fact, over 55 million tons of freight was moved daily in 2013. The freight was valued at $50 billion. Both numbers have since grown. As of 2015, U.S business logistics costs alone sat at $1.48 trillion.

These numbers aren’t surprising. Although the industry goes mostly unnoticed by most people, it’s responsible for every step of a product’s journey from the manufacturer to the customer’s hands. The process isn’t simple, it involves a lot of moving parts and planning. Various stages of delivery and transportation are involved to ensure they reach the right location at the right time.

With companies becoming bigger, more international in reach and scope, the demand and complexity of supply chains grows as well.

2. Logistics is Not the Same as Supply Chains

There’s a distinction between supply chain and logistics, although the two terms are sometimes used interchangeably.

Quora contributor Anastasia Kelm, outlines the differences clearly in this discussion thread.

Logistics — That part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.

Supply Chain — The planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers.

3. There’s Plenty of Opportunity to Grow the Career That You Want

According to a article, the logistics industry will need to fill 1.4 million jobs by next year. That estimate is conservative when you remember the explosive growth of e-commerce in recent years.

The truth is, even if you don’t have a relevant degree (or a degree at all), there’s still plenty of opportunities for you. Logistics is a vast industry and functional supply chains are a building block of any successful business. Not everyone looking to start a career in this field needs to be an operational manager or a truck driver either. There’s many jobs in warehousing, material handling, packaging, and management software. That’s to say nothing of support functions like HR, marketing and communications.

To learn more, check relevant job statistics on sites like Glassdoor and see what enrollment would be like at your local post-secondary school. Regardless of the avenue you plan on taking, do your research and determine for yourself if this dynamic field is right for you.

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.