The growth of global trade, internalisation and externalisation of borders, and increased security threats to international supply chains are putting pressure on Customs organizations around the world.
It used to be that the only way for multinational corporations (MNCs) to enter China was through a joint venture with a local Chinese partner"”typically a government-appointed, hopelessly backward state-owned enterprise. Foreign ownership was capped at 50 percent, and MNCs faced numerous hurdles, such as local supplier requirements and mandatory technology transfer agreements.
To put China's sustained growth into perspective, when it surpassed the United States in 2010 to become the world's largest manufacturer, its output accounted for 23 percent of global manufacturing. Fast forward two years and China has gained an additional 10 percent of total manufacturing share, with $2.9 tr of the total $8.8tr global manufacturing output, putting their total value at 20 percent more than the US.
Three times in the past year, including just last month, the Food and Drug Administration has issued warnings that counterfeit cancer drugs originating overseas infiltrated the U.S. pharmaceutical supply chain, putting patients at risk.
Social and environmental compliance are the main issues facing today's apparel supply chains, according to industry experts consulted by just-style. The continued shift towards faster and faster fashion cycles, along with pressure on retailers to adapt to an omni-channel experience, is also throwing up challenges when it comes to flexibility in global sourcing.
The International Federation of Freight Forwarders Associations (FIATA) and the International Air Transport Association (IATA) have announced that the Multilateral Electronic Air Waybill (e-AWB) standard has been approved, removing the need for bilateral e-AWB agreements between airlines and freight forwarders and thus simplifying the air freight supply chain process.
Gartner's been gazing at its crystal ball again, and has forecast that service-led solutions - software as a service (SaaS), infrastructure as a service (IaaS), platform as a service (PaaS) and so forth - will displace more traditional sourcing methods by 2015.