Who has benefited most Globalization? Developed industrialized countries continue to benefit most from globalization because increasing globalization generates the largest GDP per capita gains for them in absolute terms. Did we really win?

The study shows that the richest one per cent of the population are the big winners in the changing global economy, increasing their share of income between 1990 and 2015, while at the other end of the scale, the bottom 40 per cent earned less than a quarter of income.

Globalization involves the increased integration and interdependence of the global economy. Since the 1960s, there has been an increased rate of globalization, which has been demonstrated by rising trade, rising exports as % of GDP, greater movement of labor and capital, and an increased interdependence of the global economy. Large corporations such as retailers and freight forwarders have benefited, Even home values increased as foreign investors cam in.

Globalization has benefitted some countries more than others. In particular, South East Asian countries, such as Vietnam, Korea and China have seen a growth in living standards due to their export boom.

In the developed world – the US, the UK and the Eurozone, globalization has been a mixed blessing with some sectors of the economy (e.g. service sector) experiencing rapid growth, but some unskilled workers have been left behind as former manufacturing sectors decline due to greater global competition.

That does not mean the everyone in the developed country benefited, there a large sector of small businesses that had to shut down as they could not compete in such a market. Have you ever wondered where you favorite mom and pop store is? Well, it just could not compete. Later on the large corporations raised their prices.

There were many losers especially in the less developed countries where some economists claim that poor people have benefited. If you look closely, you will see that in many poor countries workers are working under sub humane conditions, the one making the money are the elite in those countries not the people and off course the mega corporations.

We should also remember that pricing did not really come down with Globalization, because we buy more things does not mean we need them. The prices of essential items did not really go down, just check your nearest supermarket.

And we should no forget about shipping costs. Freight rates have increased and do contribute to price increases. It is just not worth it anymore to invest in foreign countries. The problem we are facing now is that if we decide to bring manufacturing back, we need to wait few years for the factories to start producing.

In my opinion, globalization might have served a purpose in the beginning but just like every other policy, it lacked oversight. Some may have benefited but in the long we paid a a hefty price when it comes to our values and beliefs. The normal hard working people have lost.

Let us know what you think. e-mail us

Resources:

Inflation

Logistics

Supply chains have been disrupted by the Novel Corona Virus due to flaws in the design, lack of planning and inflexibility. This disruption could have been avoided or at least mitigated if supply chain managers were more proactive and had a vision of the future rather than focusing on the bottom line regardless of the practices.

By definition, supply chain involves the management of the three most important resources of an organization: Inventory, Money and information. When key information pertaining to the Corona Virus were not conveyed to parts of the supply chains, there was no viable reaction to the spread of the Corona Virus. No preparations made to continue shipping products by protecting shippers and manufacturers.

Factories could not have enough raw materials or components brought in from other regions or countries to start production since International freight Forwarders were crippled by the Corona Virus. There was a long-term impact on the Shipping Companies.  Many freight forwarders have permanently closed their doors especially the smaller ones with the personal service to its clients.

Not having raw materials to produce finished products because there were not people to work in the factory combined with lack of failure to deliver the finished product, if available, to the end user resulted in shortages in many commodities.  Even when the finished products were available, they could not be delivered reliably to the end user. No to mention that most of non-essential products were not being shipped as more preference was given to PPE products.  Amazon is a perfect example. They focused on Personal Hygiene products and stopped shipping other items even if they are available which prompted some of their third party sellers to use 3PL companies to fulfill their orders. This has revitalized the regional Fulfillment Centers.

How to design better supply Chains

1. Information is key. Had information about the corona virus and the ways to mitigate the spread used in the design of the supply chains, we would not have witnessed such shortages.
2. Emergency plans should always be in place to combat any disruptions just like we have emergency plans in the case of hurricanes. These plans might involve adding extra locations or using different shipping routes or changing the procurement practices.
3. Design smart Supply Chains with more flexibility and transparency.
4. Locate and utilize multiple sources for products, do not put all eggs in one basket.

Impact of Corona Virus on many producers

During the height of the Corona Virus infections, many milk producers had to throw away the milk because they did not have enough storage facilities. Instead they should have plans to make cheese instead of throwing it away. Produce loaded on export containers had to be discarded as vessels did not ship. Excess produce could have been distributed to communities or even frozen and canned.

This is all due to improperly managing the information which is essential for the effectiveness of supply chains. Some businesses have closed down permanently unnecessarily.  Which will impact the economy.

Supply Chain consultants better learn from this experience and design ethical supply chains that focus on efficiency and sustainable practices and not only the bottom line .

Resources:

Supply Chain Consultants

Third Party Logistics Providers

International Shippers

e-commerce Fulfillment

Logistics Impact on the economy has been so strong it ignited the economic growth and expansion from 2009- until now, which is the longest in history. Have you ever wondered we are expanding at a rate and why we are having such a run? Was it the Federal Reserve bank, The President’s economic policies, the demographic shift or the US Currency?  Well it is none of those reasons. The correct answer is logistics.

Many years ago, companies lived and died by the Inventory Cycle. Companies used to bulk up on inventory in anticipation of demand and sales afraid of long delivery times from vendors. It used to take weeks or months before customers took possession of their goods. Companies would carry a lot more inventory that they needed, that tied up financial resources and made them vulnerable to demand changes. We all have witnessed large companies getting rid of obsolete items at a total loss.

Nowadays, companies have a lot more flexibility when it comes to inventory control, they do not have to pile up inventory in their warehouses.  Shipping companies have made it easier to get the product on time (Just in Time or JIT).  Companies can use the services of the Freight Forwarders to make sure the products are shipped on time and received at destination rapidly.

Logistics Impact on the shipping Industry

As more and more products are being imported, Freight Forwarding Companies became an integral part of the Supply Chain Providing services such as Quality Control, Compliance and import services. Companies passed some of the responsibility of getting the inventory on time to Freight Forwarders. These companies order less amount of inventory, but they are receiving it more frequently.

The direct Impact of Logistics on the various sectors of logistics:

1. To control Inventory levels, a new class of consultants came to the scene, Supply chain Consultants. The help companies control their inventory levels and ensure on time delivery.
2. Warehousing Companies grew in number as companies sought to hold inventory in different locations in order to service a larger area.
3. Third party Logistics Companies or 3PL Companies emerged into the market as providers of all the logistics solutions needed to deliver products from Manufacturer to End User such as Order Fulfillment, Inland Transportation, Ocean Freight shipping and Storage. Companies no longer need to have their own warehouses to store their products and fulfill their orders. Knowing that you can depend on a 3PL Company to fulfill orders allow companies to focus more on their core competencies which fueled product innovation.
4. International Freight forwarders started opening more locations around the globe to facilitate the transfer of goods from Vendor to Customer.

The re-engineering of Logistics

The reengineering of the Logistics Industry has contributed to creating more jobs and new companies offering logistics services. It also allowed for new products to enter the market creating new demand for products.

Products no longer take days or weeks to be delivered, thanks to logistics they can be delivered the next day or even the same day.

In conclusion, logistics made it easier, cheaper and faster to deliver orders from Factory to end user. There is no more need for companies to carry large amounts of inventory and invest large amounts of money in inventory since, thanks to logistics companies, product delivery has been made easier than ever.

Resources:

Omni Channel Fulfillment

Contract Logistics Companies

International Freight Forwarders

Blockchain is a distributed ledger shared among many people in a network without an intermediary. The entries in the ledger cannot be modified. One Example of the use of such technology is crypto currency such as Bitcoin. When it comes to Supply Chain and logistics, Blockchains are becoming synonymous with transparency and visibility. The new technology will revolutionize how companies expand while maintaining compliance

Supply chain involves material flow, information flow and capital flow. Supply chain is about managing the flow of goods, services, storage and movement of raw materials, product manufacturing and shipping of Goods.

One of the benefits of using blockchain in supply chain Management is it’s allowing the data to be more inter-operable so that the information and data can be shared with manufacturers suppliers and “shipping companies” easily.

Transparency in Blockchain helps reduce delays and avoid goods from being stuck in the supply chain.

Using Blockchain offers more stalability through which a database can be accessed from multiple locations worldwide. This in essence ensures that all the participants in the supply chain from manufacturers to freight Forwarders are always connected and there are no limits on the number of entries.

Benefits of using block chain in the supply chain Industry:

• Advanced inventory management
• Enhanced transparency
• Minimizing Courier Costs.
• The Ability to identify issues faster
• Keep vendors and customers honest
• Faster tracking of shipments
• Establish provenance

Logistics and Blockchain in a nutshell

The new Technology will empower Freight Forwarding companies with an incorruptible resource. As the companies expand, companies will grow more connected and contract adherence will be the norm.

“Contract Logistics Companies” stand to benefit the most from the new technology by having more transparency to the supply chain network and from the speed of recording transactions.

Digital Shipping

Blockchains will become the standard for technology use in shipping. It will give all the parties involved in a shipment the ability to access and record information such s the shipment booking, bill of lading, customs clearance and even delivery to final customer. All happening in real time. Since events cannot be edited after entry, this will ensure accuracy and timelessness.

Maintaining a supply chain with all its elements is a tedious task for small businesses, the interconnectivity of the different elements becomes more inefficient when a business grows. Block chain is a game changer when it comes to SCM

Resources:

Supply Chain Management Companies

International Logistics Companies

3PL Companies

Logistics consulting helps companies improve customer service operations and develop cost-effective solutions for supply chain, warehouse, material handling, and distribution issues. 

Logistics consulting includes work in the following strategic and operational areas:

• Corporate and business unit growth strategy
• Performance improvement and process redesign
• Portfolio strategy
• Labor relations
• Fleet and network optimization
• Information technology
• Customer strategy, including marketing and pricing
• Strategic turnarounds
• Results delivery

Benefits of Logistics Consulting

• Cost reduction
• Customer lead-time improvement
• Lower buffer inventories from more reliable transportation
• Improved gross margin return on inventory investment (GMROII) while increasing revenue by serving demand across the supply chain network of inventory
• Accelerated synergy capture in the event of mergers or acquisitions
• Improved process efficiency and cost reduction from better systems
• Fewer carriers to manage
• Ability to establish internal and external benchmarks

Logistics management consultants are experts who advise companies on the best ways to improve the warehouse and distribution process to increase profit and efficiency. They usually hold a bachelor’s or master’s degree in business, management or another relevant field, and most have logistics experience before entering the consulting field. A college internship can also help them gain experience in the industry.

International 3PL is a professional logistics consulting firm and an accomplished logistics network, material handling, distribution center and warehouse design company. We have extensive experience in the warehouse layout, design and implementation of conventional and highly automated material handling solutions for warehouse, distribution, and manufacturing operations. Using our industrial, engineering, operations, and systems design expertise; we provide state-of-the-practice of warehouse logistics concepts, processes, layout, and designs matched to customer business needs. The capabilities of our consultants and designers also include the selection and implementation of supply chain execution software including warehouse management systems, asset management systems, transportation management systems, yard management systems and labor management systems. Our teams of logistics consultants, distribution center engineers, and material handling systems designers have the skills to assist your company with all your logistics needs

Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with Web-based application service providers who promise to provide part or all of the SCM service for companies who rent their service.

Supply chain management flows can be divided into three main flows:

The product flow
The information flow
The finances flow

The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.

There are two main types of SCM software: planning applications and execution applications. Planning applications use advanced algorithms to determine the best way to fill an order. Execution applications track the physical status of goods, the management of materials, and financial information involving all parties.
Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company). This shared data may reside in diverse database systems at several different sites and companies.

By sharing this data “upstream” (with a company’s suppliers) and “downstream” (with a company’s clients), SCM applications have the potential to improve the time-to-market of products, reduce costs, and allow all parties in the supply chain to better manage current resources and plan for future needs.
Increasing numbers of companies are turning to Web sites and Web-based applications as part of the SCM solution.

Supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. The following are five basic components of SCM.

International 3PL understands your needs for supply chain management and will work with you to achieve your goals

While there’s definitely more many reasons why a company might look for  a third party logistics provider here are a few reasons:

• To provide supply chain support to penetrate new regional markets or countries where your company doesn’t currently have a presence without the costs involved in such venture
• If you are a company whose business is seasonal in nature using a 3pl provider allows you to cut the operating costs.

• To increase on-time performance and increase efficiency with the management of your inventory by using a 3PL provider that has the technology and capability to deliver an effective solution.

• To take advantage of lower transportation rates provided by logistics firms that have  buying power due to the volume of freight they deal with.

• To quickly build a multi-location distribution network with lower risk, without the significant capital investment associated with building out a network on your own.
• By using a 3PL provider, you can divert your resources to grow your business by engaging in new marketing strategies