Supply Chain Management and Logistics Blog. Posts are about end-to-end supply chain management and logistics in a time of challenging disruption. Tom provides leading supply chain management and logistics consulting and advisory assistance based on real-world experience. He brings authority and domain expertise to clients. Email Tom at: tomc@ltdmgmt.com Check Tom's profile at: https://www.linkedin.com/in/tomcraig1/
Wednesday, December 30, 2015
OMNICHANNEL AND LEAN SUPPLY CHAIN MANAGEMENT
Savvy omnichannel firms will drive Lean Supply Chain Management--beyond the 4 walls---to themselves and for manufacturers and suppliers to compress time and create inventory velocity.
Tuesday, December 29, 2015
SUPPLY CHAIN MANAGEMENT AND CONTAINER LINE ON-TIME PERFORMANCE
From an Supply Chain Management view, what does it really
say? Using arrivals, it excludes blank sailings and the impact of ongoing slow
steaming.
Report: Global liner on-time performance nears four-year high
Denmark-based consultancy SeaIntel's measurement of scheduled ocean carrier arrivals found 85 percent of ships arrive on-time, though delays are still more common in the major east-west trade lanes.
Global liner shipping on-time performance reached a near four-year high in November, according to the maritime analyst SeaIntel.
The Denmark-based consultancy said the on-time performance of vessels globally was 85.3 percent in November, a 9.7 percent increase year-over-year, and the second highest level since SeaIntel began measuring schedule reliability in July 2011.
SeaIntel also said the average delay for late vessels improved from 3.38 days in October to 3.32 days in November, a vast improvement from the 4.29-day average delay in November 2014.
Wan Hai was the best performing carrier in November, with 91.1 percent of calls on time, with MOL, Evergreen Line, “K” Line and Hanjin Shipping rounding out the top five. Evergreen, “K” Line and Hanjin are part of the CKYHE Alliance.
Mediterranean Shipping Co., Hyundai Merchant Marine, and Zim recorded the three lowest on-time arrival percentages in November, though the band between the best and worst was less than 10 percent, with MSC at 82 percent.
However, schedule reliability on the main east-west lanes lags behind that on more minor lanes, with the Asia-U.S. West Coast lane the best performing of the major lanes, at 82 percent. That aggregate on-time performance is light years better than that seen a year ago, when congestion was plaguing U.S. West Coast ports.
SeaIntel’s schedule performance measurement was based on 11,939 vessel arrivals during November.
The Denmark-based consultancy said the on-time performance of vessels globally was 85.3 percent in November, a 9.7 percent increase year-over-year, and the second highest level since SeaIntel began measuring schedule reliability in July 2011.
SeaIntel also said the average delay for late vessels improved from 3.38 days in October to 3.32 days in November, a vast improvement from the 4.29-day average delay in November 2014.
Wan Hai was the best performing carrier in November, with 91.1 percent of calls on time, with MOL, Evergreen Line, “K” Line and Hanjin Shipping rounding out the top five. Evergreen, “K” Line and Hanjin are part of the CKYHE Alliance.
Mediterranean Shipping Co., Hyundai Merchant Marine, and Zim recorded the three lowest on-time arrival percentages in November, though the band between the best and worst was less than 10 percent, with MSC at 82 percent.
However, schedule reliability on the main east-west lanes lags behind that on more minor lanes, with the Asia-U.S. West Coast lane the best performing of the major lanes, at 82 percent. That aggregate on-time performance is light years better than that seen a year ago, when congestion was plaguing U.S. West Coast ports.
SeaIntel’s schedule performance measurement was based on 11,939 vessel arrivals during November.
GET READY FOR THE NEW SUPPLY CHAIN
Get ready for New Supply Chain with time compression and inventory velocity and extending upstream. Robotics and more.
OLD SUPPLY CHAIN AND OMNICHANNEL
If you use your old Supply Chain in new world of omnichannel, you may deserve what does not happen.
SINOTRANS - CHINA MERCHANTS MERGER APPROVED
LTD said months ago this is a big merger--
Another shipping conglomerate born as Beijing approves merger of Sinotrans and China Merchants
PUBLISHED : Tuesday, 29 December, 2015, 9:22pm
UPDATED : Tuesday, 29 December, 2015, 9:22pm
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Comment
29 Dec 2015
Letters to the Editor, December 30, 2015
News
28 Dec 2015
Mainland academic rings the alarm on the rise of ‘neo-localism’ in…
News
29 Dec 2015
Incredible footage shows diver swimming with giant squid alongside…
Business
28 Dec 2015
Secular stagnation nothing more than a phoney rationale for more…
News
28 Dec 2015
Passenger ‘tries to kill himself’ during flight over southern China
News
28 Dec 2015
Asia’s world city is racist and can’t speak English say the 10 top…
Business
29 Dec 2015
China stocks: expect less volatility in 2016 amid slower growth in…
Business
29 Dec 2015
Hong Kong needs to weigh up social and economic concerns when…
Business
29 Dec 2015
Baoneng hits back at Vanke takeover funding claims
Property
28 Dec 2015
Chinese Estates stock up after selling Windsor House in Hong Kong to…
Comment
29 Dec 2015
Letters to the Editor, December 30, 2015
The merger was cleared as part of wider restructuring of state-owned companies and consolidation of the shipping industry reeling from slowing global trade and overcapacity. Photo: AFP
Beijing has approved the merger of Sinotrans & CSC and China Merchants Group as part of wider restructuring of state-owned companies and consolidation of the shipping industry reeling from slowing global trade and overcapacity.
The two state-owned transportation and logistics majors’ merger proposal was cleared by the State Council, China’s cabinet, State-owned Assets Supervision and Administration Commission (Sasac) said in a statement on Tuesday.
“Sinotrans & CSC will be wholly merged into China Merchants Group and it will no longer be directly supervised by Sasac,” it said.
READ MORE: World’s fourth-largest shipper created after tie-up of Cosco and China Shipping
The two groups have been in merger talks, financial media Caixin reported late month. Sinotrans and Sinotrans Shipping, the listed units of Sinotrans & CSC, had separately said their parent was planning a “strategic restructuring”.
Sinotrans & CSC chairman Zhao Huxiang had later said a merger would not immediately involve complicated asset swaps between listed units under the two groups, such as in the recent merger of China Ocean Shipping Group and China Shipping Group.
Daniel Meng, an investment analyst at CLSA, said the merger of Sinotrans & CSC and China Merchants Group could potentially enlarge Hong Kong-listed ports operator China Merchants Holdings’ (International) asset portfolio in the long term but since the latter’s management has not indicated that its parent has any imminent plans to inject Sinotrans & CSC’s assets into it, any potential impact cannot be assessed immediately.
The two state-owned transportation and logistics majors’ merger proposal was cleared by the State Council, China’s cabinet. Photo: EPA
Based on publicly available information, the book value of seven port-related units owned by Sinotrans & CSC at the end of 2013 amounted to around 6.6 per cent of China Merchants Holdings, and the seven units’ combined return on equity of around one per cent was much lower than the latter’s eight per cent in 2013, he said.
The seven units include port assets in Nanjing and Jiangyin in Jiangsu province, Dongguan in Guangdong province and Wuhan in Hubei province, whose proximity to inland rivers would complement China Merchants’ primarily seaborne traffic-handling ports and could enhance its overall cargo throughput volumes, he added.
Sinotrans & CSC’s business includes freight forwarding – by water, land and air – and dry-bulk, oil-tanker and container shipping.
While China Merchants Group focuses on ports, toll roads and oil and gas shipping, it also has major finance and real estate businesses.
China Merchants Group’s total assets at the end of last year exceeded 600 billion yuan (HK$726 billion), six times that of Sinotrans & CSC.
The cabinet earlier this month approved the merger of China Ocean Shipping Group and China Shipping Group to create the world’s fourth-largest container shipping line.
A reshuffling of assets will see the two group’s four listed entities focus on different lines of business, namely container shipping, shipping financial services, shipping terminals and oil and gas transportation.
The two state-owned transportation and logistics majors’ merger proposal was cleared by the State Council, China’s cabinet, State-owned Assets Supervision and Administration Commission (Sasac) said in a statement on Tuesday.
“Sinotrans & CSC will be wholly merged into China Merchants Group and it will no longer be directly supervised by Sasac,” it said.
READ MORE: World’s fourth-largest shipper created after tie-up of Cosco and China Shipping
The two groups have been in merger talks, financial media Caixin reported late month. Sinotrans and Sinotrans Shipping, the listed units of Sinotrans & CSC, had separately said their parent was planning a “strategic restructuring”.
Sinotrans & CSC chairman Zhao Huxiang had later said a merger would not immediately involve complicated asset swaps between listed units under the two groups, such as in the recent merger of China Ocean Shipping Group and China Shipping Group.
Daniel Meng, an investment analyst at CLSA, said the merger of Sinotrans & CSC and China Merchants Group could potentially enlarge Hong Kong-listed ports operator China Merchants Holdings’ (International) asset portfolio in the long term but since the latter’s management has not indicated that its parent has any imminent plans to inject Sinotrans & CSC’s assets into it, any potential impact cannot be assessed immediately.
The two state-owned transportation and logistics majors’ merger proposal was cleared by the State Council, China’s cabinet. Photo: EPABased on publicly available information, the book value of seven port-related units owned by Sinotrans & CSC at the end of 2013 amounted to around 6.6 per cent of China Merchants Holdings, and the seven units’ combined return on equity of around one per cent was much lower than the latter’s eight per cent in 2013, he said.
The seven units include port assets in Nanjing and Jiangyin in Jiangsu province, Dongguan in Guangdong province and Wuhan in Hubei province, whose proximity to inland rivers would complement China Merchants’ primarily seaborne traffic-handling ports and could enhance its overall cargo throughput volumes, he added.
Sinotrans & CSC’s business includes freight forwarding – by water, land and air – and dry-bulk, oil-tanker and container shipping.
While China Merchants Group focuses on ports, toll roads and oil and gas shipping, it also has major finance and real estate businesses.
China Merchants Group’s total assets at the end of last year exceeded 600 billion yuan (HK$726 billion), six times that of Sinotrans & CSC.
The cabinet earlier this month approved the merger of China Ocean Shipping Group and China Shipping Group to create the world’s fourth-largest container shipping line.
A reshuffling of assets will see the two group’s four listed entities focus on different lines of business, namely container shipping, shipping financial services, shipping terminals and oil and gas transportation.
CMA CGM ACQUISTION OF NOL
Did CMA CGM confuse cheap debt & too much debt when it acquired NOL? Will investors see ANY return?
SUPPLY CHAIN AGILITY
How much demand for omnichannel supply chain agility really reflects shortcomings at the C-level and career consultants---aka, anything is possible when you are not the one doing the job?
Monday, December 28, 2015
AMAZON KEEPS GROWING
Amazon. The Big get bigger. Are Wal-mart and others fading in the e-commerce battle? Can they do battle?
Amazon Wins Christmas With 3 Million New Prime Members
I'm a retail geek, having reported on consumer electronics and mass-market retail trends since 1995, for trade and consumer magazines and Web sites. I'm the Executive Editor at FierceRetail (get our newsletter) and teach journalism at Columbia College Chicago. Follow me on Twitter: @lfheller
The author is a Forbes contributor. The opinions expressed are those of the writer.
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Opinions expressed by Forbes Contributors are their own.
Amazon has likely won Christmas this year, adding 3 million new Amazon Prime members and posting record sales of its own branded products.
It’s only Dec. 28., but Amazon typically issues an after Christmas report listing its victories, complete with fun facts about its most popular purchases. This year, Amazon says it added 3 million Prime members in the third week of December alone.
Amazon doesn’t report how many Prime members it has, choosing only to say it’s in the tens of millions. But Macquarie Research estimates that 25% of U.S. households are Prime members and that the retailer added roughly 7 million new members in 2015. But that research was before Amazon’s latest announcement and the number could actually be much higher.
Because Prime and Amazon’s retail dominance is growing fast. Macquarie estimates that membership will double by 2020, and Amazon is doing everything it can to add benefits to the program. From same-day delivery in some markets to streaming original content and one of the most robust digital entertainment line-up aimed at cable “cord cutters.” This last group is comprised largely of millennials who want to pick and choose their content rather than paying for a cable of satellite subscription, and the more Amazon adds earns their loyalty, the more market share they gain of the most coveted consumer demographic.
Amazon accounts for roughly 50% of all online retail sales growth in the United States and 24% of total retail sales growth across all channels, according to Macquarie Research. More than half of U.S. shoppers had planned to buy holiday gifts from Amazon, according to a poll from Reuters/Ipsos. Big-box retailers are falling further behind in their ability to compete with Amazon—Walmart, the world’s largest retailer was the destination of choice for just 16% percent of holiday shoppers, according to the poll.
It’s only Dec. 28., but Amazon typically issues an after Christmas report listing its victories, complete with fun facts about its most popular purchases. This year, Amazon says it added 3 million Prime members in the third week of December alone.
Amazon doesn’t report how many Prime members it has, choosing only to say it’s in the tens of millions. But Macquarie Research estimates that 25% of U.S. households are Prime members and that the retailer added roughly 7 million new members in 2015. But that research was before Amazon’s latest announcement and the number could actually be much higher.
Because Prime and Amazon’s retail dominance is growing fast. Macquarie estimates that membership will double by 2020, and Amazon is doing everything it can to add benefits to the program. From same-day delivery in some markets to streaming original content and one of the most robust digital entertainment line-up aimed at cable “cord cutters.” This last group is comprised largely of millennials who want to pick and choose their content rather than paying for a cable of satellite subscription, and the more Amazon adds earns their loyalty, the more market share they gain of the most coveted consumer demographic.
Bags are loaded for delivery at Amazon’s urban fulfillment facility, Tuesday, Dec. 22, 2015 in New York. This holiday season, Amazon Prime customers, using the Amazon Prime Now app, can get free delivery in less than two hours through Christmas Eve. (AP Photo/Mark Lennihan)
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