« Chain links: What we're reading this week | Main | Chain links: What we're reading this week »

Chain links: What we're reading this week

By Mark Solomon | 03/16/2016 | 1:02 PM


Alibaba prepares for the ultimate logistics war with Amazon. The perils of empty store shelves. And the six issues (only six?) that keeps practitioners awake at night.

Alibaba preps for logistics arms race

The Chinese e-commerce giant’s Cainiao logistics arm has raised billions of renminbi strengthen its supply chain in preparation for what is expected to be the ultimate cage match with Amazon.com. Cainiao is BABA's logistics joint venture created three years ago with the goal of supporting BABA's logistics network across China and driving cross-border e-commerce while leveraging big data to enhance efficiency.

Source: Seeking Alpha

The perils of empty shelves

Online shopping has brought the limitations of the current supply chain to light. The combination of online and in-store picking is resulting in items flying off the shelves twice as fast. The shelves can only hold so many inventory turns, requiring store associates to run back and forth from the shelves to the back room in order to restock. Too often, there is no replenishment inventory in the backroom, leaving the shelf empty. Consumers are confronted with a decision: do they purchase a substitution or do they look for the product at a different store? Research shows consumers are evenly split, a scenario that hurts the manufacturer and retailer. Half the time the consumer will be so brand loyal that they will leave the store to purchase the same item elsewhere, giving the manufacturer the sale. The other half of the time, a consumer will make a brand substitution, giving the retailer the sale, but not the manufacturer.

Source: ES3

Waiting for logistics magic in Indonesia

The new president of Indonesia, “Joko” Widodo, is pinning much of the archipelago’s economic future on dramatic improvements in its inefficient logistics network, which sucks up more than 25 percent of GDP. On March 10, Widodo simultaneously inaugurated the operation of 11 bonded logistics centers (PLBs) in the provinces of Jakarta, Banten, East Kalimantan, West Java and Bali. However, as the Jakarta Post reports, some Indonesian business players prefer to lower their expectations, saying they need time to learn what actual benefits and incentives would be offered by the new facilities.

Source: The Jakarta Post

Sinotrans to shift its service focus following acquisition

Sinotrans & CSC Holdings Co, China's second largest shipping company by fleet size, will focus on developing integrated logistics, energy transportation and port businesses after its acquisition by China Merchants Group, a state-owned conglomerate based in Hong Kong. The acquisition, aimed at optimizing shipping and multimodal logistics resources, as well as enhancing the country's energy security, was approved by government regulators in December.

Source: China Daily

Japan Post to pursue acquisitions in and out of logistics

Japan Post Holdings, which had been rumored to be acquiring Deutsche Post DHL’s global freight forwarding unit (a rumor that DPDHL Chairman Frank Appel vociferously denied) will pursue more acquisitions both in logistics and outside the category, according to DealStreet Asia.

Source: DealStreet Asia

Carbon-conscious shippers can choose green ocean freight option

Shippers who want to move ocean freight without incurring the carbon footprint of traditional container ships now have an option to choose the “Green Danmar” service, a carbon-efficient ocean freight service from DHL Global Forwarding that offers full container shipping with that is over 5 percent more carbon efficient than the industry average.

Source: DHL

Six issues that keep supply chain managers up at night

A survey from professional association APICS and Michigan State University has identified six of the top problems that keep supply chain executives from getting a good night’s sleep. The issues include capacity and resource availability, retaining new hires in supply chain jobs, and managing complexity in a time of huge growth in stock keeping units (SKUs).

Source: APICS



By submitting your comments, you agree to our Terms of Service.

The opinions expressed herein are those solely of the participants, and do not necessarily represent the views of Agile Business Media, LLC., its properties or its employees.


Popular Tags

Recent Comments

Subscribe to DC Velocity

Subscribe to DC Velocity Start your FREE subscription to DC Velocity!

Subscribe to DC Velocity
Go digital