The year 2014 will see the debut of the Triple E, first of a series of at least 20 containerships to be operated by Denmark's Maersk Line, each with a capacity of 18,000 twenty-foot equivalent units (TEUs). Few could have imagined this behemoth at the dawn of containerization in the mid-1950s. (Malcom McLean's Ideal X carried only 58 boxes.) In the ensuing decades, containerships grew steadily in size, as operators sought to squeeze the most out of their investments. When ships became too wide to fit through the Panama Canal, builders doubled down. Between 2008 and 2015, average ship size will have risen from 6,000 TEUs to more than 11,000 TEUs, according to Lars Jensen, chief executive officer and partner with SeaIntel Maritime Analysis. Maersk's Triple Es will dwarf them all.
When organizations turn to the web to offer their suppliers and/or joint venture partners direct access to services and business processes to reduce costs and speed up processing, a virtual organization emerges.
Although organizations must connect suppliers and customers around the globe, managing worldwide supply chains can cause cost increases and operational challenges, However, Aberdeen Group's latest research, entitled 2012 Best Practices for Closing the Loop on Multinational Transportation Procure to Pay, identifies best-in-class behaviors that enable the top 20 percent of performers to reduce invoice cost, yet process and pay faster than competitors.
As enterprises look to minimize complexity, improve inbound supply chain efficiency and reduce costs, there is a growing need for intelligent solutions that provide the visibility, optimization and integration required to ensure that every part, component and package is shipped using the most effective service level.
Initiatives such as the Global Supply Chain Forum, which resides at Ohio State University's Fisher College of Business, give the business world access to academic expertise and valuable research, says forum director Douglas M. Lambert. Such efforts are becoming more common, he says, adding that "the business community ought to be our laboratory."
Analyst Insight: Retailers in 2012 will continue to implement analytic engines. The last two years have seen retailers and CPG companies streamline and rethink their multichannel and merchandising strategies. Improved performance is a reflection of this analytics focus. In 2012, retailers will learn through direct customer engagement through mobile, social and web (omni-channel information) to create products, and market to customers based on shopper insights. - Ann Grackin, CEO, ChainLink Research
Analyst Insight: The rapid growth of internet retailing is creating serious challenges for supporting retail and wholesale distribution operations. The good news is that growth rates for e-commerce are significantly exceeding expectations for most companies. The bad news is that there are some very stressed distribution operations behind the scenes that are having difficulty keeping up with sales. - Marc Wulfraat, president, MWPVL International Inc.
Encompass Global Logistics LLC, a third-party logistics provider specializing in the trans-Pacific trade, has launched a mobile application for cargo management, compatible with all Apple iPhone, iPad and iPod products.
Analyst Insight: While on one hand the container shipping industry has become ever more commoditized, a new range of service measurements could increase the potential for market differentiation. The key to any differentiation is the ability to make it clear to the customer what the difference is. Such transparency would certainly be a novelty in the industry. - Lars Jensen, CEO, SeaIntel Maritime Analysis
The latest news, analysis, services and systems regarding logistics and freight and their impact on global supply chains. Today’s companies are transporting and delivering perishables and manufactured goods in a more timely and efficient manner than ever before through logistics solutions. New technologies that provide information during local and global shipments are transforming the way companies do business - and allowing them to stay ahead of the competition in their industries. As transportation and distribution services continue to evolve, businesses are discovering new ways to increase efficiency and cut costs. Learn how companies are using logistics and cargo solutions to power their supply chains.
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