Where’s the Hype for Automated Trains? – Part 1: History & Background

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Talk of automation is sweeping the transportation industry, but there’s barely a whisper when it comes to automated trains or self-driving trains.

The conversation around automation and A.I is nothing new. Since 2010, it seems like every industry headline has to do with a newly tested application for these technologies. This isn’t surprising. The technology is indeed revolutionary and if recent advancements are any indication, very close to becoming the new standard. Industry experts are predicting that in three short years, both automated cars and automated ships may be a reality.

However, trains, another essential mode of transportation, seems to generate little news on the automation front.

This may seem strange on the surface, trains run on a track, after all, meaning they have only two directions of movement. Conversely, both cars and ships have eight directions of movement. Their onboard A.I would also need to worry about the local geography, weather conditions, other cars or ships, etc. Trains seem like the first and most obvious choice for transport automation.

The reason why there isn’t of a push for more fully autonomous trains boils down to two issues: unionization and the importance of snap-judgements. Before we can deep- dive into those issues, it’s important we look at the background of the technology as it relates to trains.

Train Automation: A Short History

Believe it or not, the technology to automate trains already exists. It has for decades, between 20 to 30 years according to David B. Clarke, director of the Center for Transportation Research at the University of Tennessee.

Vice journalist Carl Franzen, in his investigative piece for Motherboard, looked at the questions of “why we don’t have driverless trains yet”. According to the article, they already exist, we just don’t hear about them. The first completely automated subway went into service in New York in 1961. Canada wasn’t far behind as it tested a crewless freight train system shortly after according to an official report.

Automated Train Systems are More Common Than You Think

Since those early attempts at automating trains, the technology evolved and spread around the world. Franzen, quoting International Association of Public Transport (UITP), an advocacy group that promotes public transit, writes:

48 fully automated public metro systems can be found across 32 countries […] That number doesn’t include other private light rain systems which number in the dozens

Train network automation has been around for so long and is so prevalent, that the UITP actually has Five Grades of Automation (GoA) for trains:

  1. GoA 0 is on-sight train operation, similar to a tram running in street traffic.
  2. GoA 1 is manual train operation where a train driver controls starting and stopping, operation of doors and handling of emergencies or sudden diversions.
  3. GoA 2 is semi-automatic train operation (STO) where starting and stopping is automated, but a driver operates the doors, drives the train if needed and handles emergencies. Many ATO systems are GoA 2.
  4. GoA 3 is driverless train operation (DTO) where starting and stopping are automated but a train attendant operates the doors and drives the train in case of emergencies.
  5. GoA 4 is unattended train operation (UTO) where starting and stopping, operation of doors and handling of emergencies are fully automated without any on-train staff.

As you can see, the technology is further along than where it is with cars and boats. While automating those two transportation methods is still several years away, trains have enjoyed a nearly 50-year head start. Why then isn’t there more investment in fully automating all train lines?

The answer, as mentioned in the introduction, has to do with unionization and quick decision-making. Come back next week when we go over why these two issues are such a barrier to future train automation efforts.

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The Automation Scare: Old Worries for Many North American Workers

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Will Robots be Friend or Foe to Today’s Workers? Many publications condemn how automation will affect workers, but recent studies show it to be a benefit.

Twenty years ago, the big scare for many workers was that their job would move overseas. There were several stories during the 1990s and early 2000s of companies moving their operations to places like India and China. A combination of new IT technology and data technology allowed businesses to seek further efficiencies in labour costs abroad. While these actions were beneficial for those businesses, it cost many workers their jobs.

Offshoring still greatly affects industries such as manufacturing and bookkeeping. But, the rising wages in formerly off-shoring havens (China and India) has started to curb the trend. Growing political pressure and security concerns are also leading to a rise in re-shoring and near-shoring.

The scare of waking up one day and discovering your employer has moved overseas is no longer as acute for many North American workers. However, that doesn’t mean their employment is secured thanks to automation.

How Will the ‘Robot Apocalypse’ Affect Workers?

Automation has only been in warehouses for a few years and is still in the prototype phase for several industries, like shipping & transportation. However, that hasn’t stopped some publications from calling it a ‘robot apocalypse’ for workers.

For example:

These publications are not wrong or misleading. Many industries will have to change fundamentally. This also means several jobs will either change drastically or be eliminated.

Automation Can Mean a New Beginning for Many Workers

Automation isn’t a losing zero-sum game for North American workers. For example, those on the warehouse floor have a new friend. Robots are being designed to work with staff, not replace them. These ‘collaborative robots’ are being developed to help people work more productively, efficiently and most importantly, safely.

In the retail world, an industry greatly affected by automation, new opportunities are appearing for workers thanks to e-commerce.

For example, Wall Street Journal writer Greg Ip writes in his article:

The brick-and-mortar retail swoon has been accompanied by a less headline-grabbing e-commerce boom that has created more jobs in the U.S. than traditional stores have cut. Those jobs, in turn, pay better, because its workers are so much more productive […] Throughout history, automation commonly creates more, and better-paying, jobs than it destroys. The reason: Companies don’t use automation simply to produce the same thing more cheaply. Instead, they find ways to offer entirely new, improved products. As customers flock to these new offerings, companies have to hire more people

The fear of losing one’s job because of outside factors is an old one for many people. Whether it be because of downsizing, outsourcing or automation, it can negatively impact a person’s life all the same. The total net gain or loss of automation is impossible to predict at this early stage, but the opportunities the technology presents for worker and consumer alike are exciting.

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eBook: New Report Shows How Shipping Standards Have Changed Over the Last Decade

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Globalization continues to develop and refine many industries. It shapes the standards and best practices for many businesses. Supply chain and shipping, having so many moving parts, is affected by globalization more so than many.

Getting goods from A to B is a complex process, especially when the two locations don’t share a border. Globalization has made such journeys much more common. Whereas before countries and companies were limited to their immediate neighbours for trading partners, modern shipping allows them to take on a wider perspective.

The last 10 years has brought new technology to the world of shipping. It’s become much safer with improved safety standards and more efficient tools. However, while the current state of shipping is to be celebrated, new threats are on the horizon. If left unchecked, they may take a heavy toll on businesses and negatively impact entire supply chains.

A recent report was published by the Allianz Global Corporate & Specialty SE (AGCS), an international insurer and asset manager. AGCS’s fifth annual Safety & Shipping Review 2017 highlighted several important trends concerning the state of global shipping.

Today we will be focusing our ebook on an analysis of this report and what it’s suggesting as today’s shipping standard based on the review on important trends in global shipping.

Today’s Shipping Landscape

morai-logistics-ebook-shipping-standards-changed

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.

New IATA-FIATA Air Cargo Program: Modern Global Trade

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With the implementation of the new IATA-FIATA Air Cargo Program, the relationship between freight forwarder and airline is transforming.

According to the International Air Transport Association (IATA), the air cargo industry accounts for over 35% of global trade. Aviation makes the transportation of pharmaceuticals, live animals, electronic devices, and express delivery services possible across the globe.

The role of IATA has been of great importance to ensure the security, profitability and sustainability of the supply chain. However, as global shipping demands and needs of the industry accelerate, so too does the need for change between cargo and airline.

Aviation Pros announced on August 15th, 2017, that “the new IATA FIATA Air Cargo Program has been launched in Canada”. This improved program will meet industry needs in addition to transitioning the relationship between freight forwarders and airlines.

TA FIATA Air Cargo Program

Canada remains a strong leader in the import and export of goods, and even more so when it comes to air cargo transport. To support efficiency and production, IATA aims to:

In collaboration with the International Federation of Freight Forwarders’ Association (FIATA), IATA has decided to reengineer the way shippers interact with airlines.

In the past freight forwarders acted as ‘selling agents’ who provided opportunity to airlines, however, as the needs of the industry increased we now see a shift. The Air Cargo Program has been restructured and improved to consider the freight forwarder as a customer of the airlines, a movement that will better allocate responsibilities. There are four key benefits outlined by IATA as a result of this newly improved program, however, one in particular aligns with the global phenomenon of ecommerce. The IATA states:

Working together and establishing joint IATA-FIATA Air Cargo Program increases the potential to achieve key industry goals and common industry initiatives, include e-cargo priorities

We see now more than ever that the integration of the Internet of Things (IoT) and transportation is becoming necessary to move productivity and sustainability forward. The 2017 IATA Cargo Strategy explains the growing need for the air cargo industry to improve efficiency. For instance, moving from paper bill to electronic airway bills will help improve quality of service and reduce errors. Progressive changes, fostered by the new Air Cargo Program, is a representation of Canada adopting a modern approach to global exchange.

Modernization of the Air Cargo Industry

On August 16th, 2017, Morai Logistics announced that the launch of the first full-automated Robo-boat will set sail by 2020. We see modernization taking many routes, and with the air cargo industry we can only imagine the heights the industry will go. E-freight is a great example of the move forward with technology. Writer, Shreya Bhattacharya, states that an ‘e-freight route network’ initiative will not only simplify processes, but will offer transparency following the reduction of delays and inaccuracies.

IATA outlines 10 industry priorities they believe will help move the industry forward. Digitization is included and described as “a key enabler for the development of new innovative services and solutions.” The motivation to modernize the Air Cargo Program is evidence that the industry is looking long term to identify and ensure a smooth and profitable future.

The safe and efficient transport of goods across the globe is facilitated by trusted airlines and freight forwarders. The New IATA-FIATA Air Cargo Program is a global transition to modernizing the way we fly. The benefits are guaranteed to ensure productivity and sustainability and the satisfaction of freight forwarder, airlines and customers.

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.

Companies Team Up to Launch a “Robo-boat” by 2020

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Two Norwegian companies are working together to build zero-emission, completely unmanned ships

Several companies have been very public about their race to introduce fully-automated cars to the marketplace by 2020. Did you know that two Norwegian companies have teamed up to do the same but with a fully-automated boat?

A Costly Start but Promising Future

The Yara Birkeland will be a short-range, fully electric coastal container ship. It will begin its career modestly as a “feeder” cargo ship, ferrying containers of fertilizer to and from larger ships.

It’s co-developers, Kongsberg Gruppen and Yara International, plan for the Birkeland to start operations by 2018 with a human crew aboard. Over the next two years, more of the ships’ functions will move away from human operation until its running remotely by 2020.

“At first, a single container will be used as a manned bridge on board,” Kongsberg’s chief executive Geir Haoy told the Wall Street Journal. “Then the bridge will be moved to shore and become a remote-operation centre. The ship will eventually run fully on its own, under supervision from shore, in 2020.”

The technology isn’t cheap though. The price tag for the vessel sits at $25 million, almost three times the cost of standard container ships of similar size. The cost has to do with the ship’s enhanced capabilities. It’ll be able to handle things like docking and navigation on its own (something regular container ships don’t do). Given the specialized systems onboard, the cost of on-site repairs will also be pricey further driving up the cost.

Despite the high initial investment, both companies claim that the benefits are worth it. The vessel will:

Autonomous Vessels are the Future

The push towards autonomous sea faring vehicles isn’t being driven by Norwegian companies alone. An article in Arstechnica referencing the Wall Street Journal interview points out that Rolls-Royce Holding PLC has similar plans. Rolls Royce plans to launch robot ships by 2020, but its fleet may include tugboats, cargo ships and ferries.

SpaceX piloted a program to use uncrewed drone ships. However, their interest was in having the ship do the dangerous task of rocket landing and retrieval.

Kongsberg itself has been active with its investments in autonomous technology with its partnership with Automated Ships Ltd (ASL). They worked together in the past to develop a prototype unmanned utility ship and are now working with Bourbon Offshore to construct a robot oil rig support ship.

Autonomous vehicles are the future. Whether it be through land, air or sea, both people and cargo will soon be transported safely and efficiently to their destinations. While there are still concerns over the legal, moral and economic consequences of such technology, its benefits for supply chains and especially for the environment are too important to halt.

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.

eCommerce and Logistics: Too Much of a Convenient Thing?

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E-commerce giants are turning to brick-and-mortar stores to supplement their continued growth trajectories. Could this mean the e-commerce market is too saturated?

To say that online shopping and e-commerce has boomed in the last decade would be a gross understatement. In 2014, retail e-commerce sales worldwide were 1.3 trillion U.S. dollars. That number rose by 954 billion as of this year and is estimated to hit nearly 4 trillion by 2020. However, despite the impressive numbers, there seems to be a shift in strategy amongst the titans of the booming online retailer industry.

A few weeks ago, Reuters reported that Chinese e-commerce giant Alibaba had announced plans to move into the physical realm of brick-and-mortar stores. The move is a strange one for the company given that until now, its made $392 billion through digital sales alone.

Alibaba’s American counterpart, Amazon, has made similar announcements. Its recent purchase of Whole Foods and unveiling of an automated physical store late last year indicates the company is already on a similar trajectory.

The question to ask is why is this trend happening. Reporter Robyn Mak, who broke the Alibaba story, suggests that its because the retail e-commerce market is reaching its limits for the industry titans.

Alibaba’s New Strategy—Invest in Old Models

According to the Reuter’s article, Alibaba founder and executive chairman Jack Ma, has outlined the following plan for the company:

Hema has been especially successful for Alibaba so it makes sense for the company to increase investment. As Robyn Mak stated:

The attraction for existing retailers is a chance to boost their notoriously low margins by tapping into Alibaba’s technology and platforms to manage inventory, supply chain, and logistics. Stores can also benefit from using the tech giant’s algorithms to analyse shopping habits and by moving to cashless checkouts, powered by Alibaba’s payments affiliate […] The e-commerce group boasts that sales per unit area at Hema are up to five times higher than a traditional supermarket

e-Commerce Around the World

The potential windfall profits that could be made through e-commerce has led to many new online businesses. In fact, there was an estimated 12 to 25 million online stores worldwide according to a 2014 study.

Most of that money trades hands in North America, followed by Europe and then China.

The world of ecommerce is dynamic and has opportunities for innovative new start-ups. At this point, Amazon and Alibaba might be too big to grow further.

Currently, 85% of China’s retail spending happens in brick-and-mortar stores. So while Alibaba is starting to stagnate in its online sales, it can continue its expansion into physical markets.
As mentioned earlier, Amazon has already started on this path. They invested $13.7 billion to acquire and rebrand the Whole Foods Market chain.

Balancing the Pace of Technology and Consumer Demand

As more people go online to do their shopping, the e-commerce market will continue to grow. Alibaba and Amazon are in the process of developing developing new strategies. But because of the demand in ecommerce, new avenues need to be explored for the industry titans. This won’t mean either company will give up any ground online. Instead, each has its own plan to expand past the digital store.

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.

The State of NAFTA: 23 Years Later

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The current structure of the North America Free Trade Agreement (NAFTA) is set to change later this year. The U.S led negotiations with Canada and Mexico will determine how NAFTA will look, or if it will even continue past next year.

It’s been 23 years since the treaty was signed. In that time, it’s built up quite the legacy. Let’s looks at how this historic treaty has shaped North American jobs and trade.

NAFTA’s future might be uncertain, but its importance in global politics, economics and world trade cannot be understated. The treaty has reshaped the political economic landscape of Canada, the U.S. and Mexico by tripling regional trade and cross-border investment. That’s not to say it isn’t without its critics. However, the world will be very different if NAFTA were to be replaced.

This is why this week, we thought we’d focus on re-exploring NAFTA. Check out our infographic below for some fast facts!

How Has NAFTA Affected North American Logistics & Supply Chain?

morai-logistics-nafta-23-years-later

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.

Understanding the Impact Cyber Threats Have on Supply Chains

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Relying on many moving parts and technology, today’s supply chains are especially vulnerable to cyber threats.

Just a couple of weeks ago, Ukraine was hit with vicious cyberattack severely damaging its computer infrastructure. Dubbed ‘NotPetya’, the computer worm responsible is also believed to have shut down ports, factories and offices across an estimated 60 countries.

The attack is just the latest in a growing number of international cyber attacks and data breaches. Several high-profile retailers and their supply chains are among that number.

Cyber attacks may be relatively new, but their impact on global supply chains keeps growing. A compromised system only negatively affected some individuals in the past. However, recent news reminds us that the scale is much bigger these days. An entire section of global commerce can be shut down or compromised with only a few computers. For that reason, we are dedicating this post to covering the impact cyber threats have on supply chains.

Short History but Big Impact

Although they have a large impact today, cyber threats are a relatively recent phenomenon. The first recognized attack according to NATO Review Magazine, was by the Morris worm in 1988. It spread across several US computers, gradually slowing them down until they were unusable.

Cyber attacks really started making international headlines during the early 2000s. Before then, such attacks were usually the result of one or a few individuals. During this timeframe, they became systematic attacks against large organizations and governments.

Some notable examples are:

The Cost of Unsecured Networks

Its been estimated that data breaches and cyber attacks currently cost the international community $2.1 trillion annually. That number is set to increase as technology improves and hackers become more resourceful.

Two recent examples of retailers suffering from costly breaches are:

In just about every case, businesses incur losses in terms of financial penalties, legal costs, loss of consumer confidence, and a decreased stock price. The worst effect is the hit to the organization’s reputation.

On average, a U.S business that suffers such a data breach can expect to lose around $6.5 million when all it said and done.

With cyber attacks being a threat to organizations big and small, everyone needs re-evaluate the security measures they have in place. Ignoring the problem is too costly and simply too dangerous for everyone. Reuter’s contributor Tom Miles explains:

The degree of interconnectivity of networks implies that anything and everything can be exposed, and everything from national critical infrastructure to our basic human rights can be compromised

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.

Lessons Learned from Google’s Supplier Diversity Initiative

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Google’s Success with its recent Supplier Diversity Program provides a model for other to follow to fulfill its mission to make the world’s information useful and accessible for everyone, and emphasizes diverse perspectives from suppliers of all sizes.

Supplier diversity has been an issue for several large businesses, especially those involved in tech. While supplier diversity is an initiative that everyone agrees is important, how it should be implemented is less obvious.

Google’s innovative approach to supplier diversity is interesting. Although still ongoing, it’s program is structured in such a way to address what have been common barriers to other supplier diversity efforts by other companies.

Why Should We Care About Supplier Diversity

Although supplier diversity has ethical and moral benefits, it also results in a positive ROI when implemented well. According to CM Solutions, commitment to supplier diversity also benefits a company in the following ways:

Google’s Supplier Diversity Program

The genesis of Google’s Small Business Supplier Diversity Program is lengthy, but interesting. Its entire history as written by Adrianna Samaniego, Adam Gardner, Chris Genteel and Leonard Greenhalgh, can be read here.

Launched in late 2014, Google’s aim with the program is to:

  1. Connect more Google employees with diverse-owned small suppliers
  2. Connect those diverse businesses to opportunities within Google
  3. Help those suppliers grow on the web and improve their business skills, and finally
  4. To foster innovation at the supply-chain level.

Google has three criteria for participation; the business is U.S based, annual revenue is $15 million or less, and that the organization have 50 or fewer full-time employees.

Lessons Learned

Remove barriers—Unlike other supplier diversity programs, Google’s doesn’t require certification. It discovered that companies didn’t have the time to spend on completing applications and updating certifications.

“The [Google’s Supplier Diversity] application encourages all minority-owned, women-owned, LGBT-owned, disabled-owned and veteran-owned businesses, as long as they fit the other criteria” writes this Supply Chain Management Review article.

It takes work — Several high-level Google employees devoted 20% of their individual work weeks to build the program. Likewise, the Supplier Diversity team attended around 20 events across 20 states and cities in a single year to encourage and train participants.

Communication is key — Google promises suppliers that when they entered their information or queries into the relevant portals, that they’ll respond within two weeks. This included replies to tax information, and documentation.

Google also clearly lists the benefits of participation. It isn’t just the potential for business that these suppliers should expect. They also receive discounts on AdWords, faster payment from participating suppliers, and access to a course that improves their business skills.

Diversity is a benefit to everyone, but implementing programs that encourage it has been a problem for many. Google’s supplier diversity program is still ongoing, but it can still help others by acting as a road map.

As SupplyChain247 puts it:

[Diverse companies] are better able to win top talent and improve their customer orientation, employee satisfaction, and decision making, and all that leads to a virtuous cycle of increasing returns.

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.

eBook: Sustainability Best Practices for Key Areas of a Supply Chain

https://morailogistics.com/ebook-sustainability-best-practices-key-areas-supply-chain/

Over the last decade, consumers, shareholders, investors and nonprofit’s have become increasingly concerned about supply chain sustainability. Several high-profile disasters and the acceleration of global climate change has made sustainability a priority for many.

National governments and international governing bodies are also showing their support. The United Nation’s (UN) 2013 Global Corporate Sustainability Report looked at the “actions taken by companies around the world to embed responsible practices into their strategies, operations and culture.” The largest effort to date is the Paris Agreement, or Paris Accord.

The UN agreement had 195 countries sign it in December 2015. Member countries agreed that global warming is a threat and pledged to stop global surface temperatures from rising 1.5 degrees Celsius. Experts warn that if temperatures go over 2 degrees Celsius, it would lead to catastrophic and irreversible consequences for the environment.

Unfortunately, the US pulled out of the agreement in 2017. The White House stating that such an agreement hurts their nation’s economy and sovereignty. While this action has been discouraging, many businesses have been doing their part to continue to further sustainability efforts.

In this e-book, we’ll be exploring sustainability best practices for two key areas of a supply chain, warehouse and distribution, and transportation.

Sustainable Supply Chain Best Practices

morai-logistics-ebook-sustainability-best-practices-supply-chain

A misconception among many businesses is that they need to be big to adopt a sustainable model. While its true companies like McDonald’s, L’Oréal and Apple are all spending millions to billions on green technology, that doesn’t mean everyone must.

Smaller supply chains can take gradual steps towards building a more socially, economically and environmentally aware supply chain. Beginning the process is as easy as mapping the existing supply network, identifying inefficiencies and eliminating them. A simple packaging change or better recycling process are examples. Every business has ways to run quicker, cleaner and better.
As Inc.com writer Gabrielle M. Blue put it:

Building a sustainable company is a task that must be taken on from all sides. The collective and collaborative efforts of the supply chain industry, with the support from the government, is crucial.

What happens to the environment affects everyone, which is why we all need to do our part to protect it.

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.