Summary: The partnership will involve connecting OroCommerce platforms with Bolloré Logistics’ LINK information network. LINK provides real-time tracking, inventory, first and last mile status and other updating.
The partnership creates an enhanced means for multichannel retailers to do business with customer companies, simplify and speed up order preparation, handling and delivery procedures orchestrated by Bollore Logistics.
“Next step for us is to integrate well-known payment gateways in order to provide a complete, end-to-end offer for B2B.” According to head of regional e-commerce solution for Bolloré Logistics Asia Pacific.
According to American Shipper magazine, Oro was founded by creators of B2C platform, Magento to focus on B2B. Chief operating officer of Oro told the magazine, “We saw two gaps. We saw a lot of online retailers had multi-channel, multi-user (customer relationship management system) issues. And the other thing we saw was companies that needed an e-commerce platform but weren’t B2C, and it’s different.” (Industry: B2B)
LogisticsTI Take: Smart strategy for Bollore Logistics as it prepares for the expected massive shift of online B2B transactions.
Summary: UPS services and solutions will be integrated into the Shopify platform. Businesses will be able to manage all aspects of shipping and fulfillment in one place including tracking and billing. According to the press release, Shopify’s small U.S. businesses will receive “competitive, pre-negotiated domestic and international rates that save on list prices, along with a streamlined shipping and fulfillment solution”.
Shopify is a cloud-based, multi-channel commerce platform designed for small and medium-sized businesses. Merchants can use the software to design, set up, and manage their stores across multiple sales channels, including web, mobile, social media, marketplaces, brick-and-mortar locations, and pop-up shops. The platform also provides merchants with a back-office and a single view of their business. (Industry: Retail)
LogisticsTI Take: Good strategy for both companies. For Shopify, managed, negotiated and guaranteed shipping rates for its customers and for UPS access to the small and medium sized businesses. Look for UPS to take advantage of this relationship as it encourages these businesses to consider cross-border shipping to China through its JV with SF Express.
Summary: According to FedEx Express, the launch in South Korea will help strengthen FedEx healthcare solutions and support the rising logistics demands of the burgeoning healthcare sector in the region. The president of FedEx Express Asia Pacific noted, “The immense growth of the healthcare industry is driving the demand for highly sophisticated logistics and temperature-controlled transportation across Asia Pacific. The launch of SenseAware in Korea rides on the strong growth momentum of healthcare shipments, and aims to fulfill the unique supply chain needs of our healthcare customers.”
Utilizing a multi-sensor device, SenseAware allows customers to monitor shipments for temperature, relative humidity, barometric pressure readings, light exposure and shock events, and provide real-time updates. It is available in 43 markets worldwide. In Asia Pacific, the service is available in Australia, Guam, Hong Kong, Malaysia, New Zealand, Singapore and Taiwan. The service is also available on a growing list of air and ground transportation carriers. (Industry: Healthcare)
LogisticsTI Take: Similar solutions are provided by other carriers including DHL and also several start-ups. Not just for air, it can be utilized on other modes as well as for other high valued shipments besides healthcare. For a good overview of the service, check out FedEx’s SenseAware website.
Summary: Aramex introduced an addition to its cross-border/last-mile delivery service, Shop & Ship. Shop & Ship online stores are available in over 50 countries. According to the company, the main benefit of this additional service is the rate calculation. Based on 100 grams versus the usual 500 grams weight breaks, customers will save up to 90% on shipping costs compared to similar services. Additional benefits include:
- Complimentary protection against damage and loss of all shipments – up to $2,500 USD in value
- 20% off heavyweight shipments (packages over 3KG)
- 30% off on return services
- Smart Saver, a service offering extra savings on packages when shipped together
- Discount on S&S Perfume
The “Shop & Ship Flex” membership cost $119 USD annually. (Industry: Retail)
LogisticsTI Take: Cross-border e-commerce competition is fierce and growing. Expect more service offerings such as this – bundling of services and potential membership fees.
Summary: DHL Supply Chain’s new service logistics solution consolidates field inventory into single locations and uses quality management systems to provide better control and traceability of valuable products.
According to the press release, the solution came as a response to a growing number of industry challenges including:
- Greater demand from an ageing and more active population
- Increasing cost pressures from healthcare providers
The CEO of DHL Supply Chain Life Sciences notes that the solution “facilitates a reduction of capital commitment for inventory through just-in-time availability to hospitals, removing the requirement for just-in-case storage of medical devices.”
In addition, the solution will free up medical device sales rep resources from actively managing, checking and locating stock to enable more time on interacting with customers. (Industry: Healthcare)
LogisticsTI Take: An example of utilizing technology solutions to reduce capital expenditures.
Summary: Media24 subsidiary, On the Dot and Kuehne + Nagel will set up an integrated supply chain solution with order management from point of origin and full end-to-end visibility. The solution is designed to meet the needs of South African retailers and will include services such as international freight, customs clearance, dedicated e-commerce warehousing, value added services including last mile deliveries.
The partnership leverages Kuehne + Nagel’s expertise in international freight forwarding and supply chain management and On the Dot’s distribution network based on its strength in e-commerce.
According to the Media24 eCommerce CEO, “Kuehne + Nagel is the perfect partner for us to offer a full end-to-end supply chain solution to South African retailers who are looking for a one-stop shop that offers all services from freight and custom clearance to distribution and e-fulfillment. Our combined solution makes us unique in the South African market.”
The Managing Director Kuehne + Nagel Southern Africa noted, “This cooperation is in line with Kuehne + Nagel’s global strategy to digitalize logistics services as well as to specifically meet the evolving needs of our fast growing e-commerce customers and to further increase their efficiencies.” (Industry: Retail)
LogisticsTI Take: Indeed, Large 3PLs/forwarders are expanding capabilities into the hot e-commerce space particularly in a time in which many e-commerce providers view logistics as a core competency and typically keep in-house. This latest partnership should be a win for both companies particularly for Kuehne + Nagel as it expands further into a growing emerging market – Africa – a region in which there is great potential for the growth of e-commerce.
Summary: DB Schenker and Sichuan JiuYe Export Ltd., a China-based B2B food trading company, have signed a strategic partnership agreement for cooperation in logistic handling of perishable goods.
According to the press release – Sichuan JiuYe provides cross border one-stop supply chain services to agriculture, food e-commerce and food companies in China and abroad. The company’s main export market is East Europe; major import markets comprise Australia, North America and Europe. (Industry: Food and Beverage)
LogisticsTI Take: The partnership will allow Sichuan JiuYe to take advantage of DB Schenker’s global network to expand into new markets while DB Schenker will be able to further penetrate the Chinese perishable market by handling the logistic handling of perishables in JiuYe’s current import countries.
Summary: Utilizing its UPS Express shipping services, UPS will now ship wine, beer and liquor to consumers and businesses in 11 countries throughout Asia Pacific including: China, Hong Kong, Japan, Macau, New Zealand, Philippines, Singapore, South Korea, Taiwan and Thailand. In Malaysia, only businesses can import wine and beer. Depending on the destination, orders can arrive at the business or consumer’s home within 3 days. All alcohol shipments require an adult signature upon delivery.
The UPS Express shipping portfolio includes three service levels: UPS Worldwide Express Plus™ for early morning delivery, UPS Express for midday deliveries and UPS Express Saver™ for end-of-day deliveries. (Industry: Food and Beverage)
LogisticsTI Take: The UPS press release cites data from International Organization of Vine and Wine in which 43% of all wine is consumed in a country other than where it is produced. The global wine market is expected to reach $380 billion by 2022.
The logistics of alcohol, wine and beer usually requires special handling including temperature control and packaging. UPS seems to be extending its capabilities that were designed and built for the pharmaceutical/life sciences to the beverage industry. Smart move even though beverage transport is highly competitive and includes many niche players.
Summary: Marken has introduced a hybrid logistics service which leverages the UPS global transportation network including UPS’ airline for a portion of the route. Because Marken is now owned by UPS, a seamless integration, visibility and dedicated customer care are among the benefits according to the press release.
In addition, Marken has also developed a reverse logistics hybrid service for efficient return of re-useable packaging and tracking devices. The press release notes that the service minimizes reverse logistics costs for non-critical items.
According to UPS President of Healthcare Strategy,, Marken can now offer their clinical clients more full service solutions. (Industry: Healthcare)
LogisticsTI Take: This latest move is a natural move to create synergies between the two companies. By acquiring Marken, UPS has jumped in the mix of other leading logistics providers such as DHL and FedEx that offer such services. However, while we certainly agree with the benefits Marken outlines, cost-conscience shippers may need to weigh their options and identify what is most important to them in deciding the best service provider, services etc. to meet their specific needs.
Summary: FedEx Cross Border has partnered with BlueSnap’s Powered Buy Platform(R) to process merchant’s cross-border sales with the languages, currencies and payment types that are needed. Included in the platform are payment technologies a merchant needs to sell globally including multiple connections to global banks for better payment conversions.
BlueSnap is a global payment gateway that connects merchants to 20+ acquiring banking relationships through a consolidated API and single underwriting process. BlueSnap also offers a global eCommerce hub so that merchants can integrate to one platform and accept payments for online checkout, invoices and marketplaces. According to the press release, in 2016, BlueSnap announced enhanced processing for EU, Latin America and Canada to give merchants true global payment processing across these regions. (Industry: Retail)
LogisticsTI Take: FedEx has expanded its cross-border capabilities via its late 2014 acquisition of BONGO. To further enhance their cross-border solution, FedEx has teamed with BlueSnap to provide various payment options for merchants including mobile wallets, local payments methods and fraud detection – all to provide ease of mind and security for merchants that may be on the fence.
Summary: Yusen plans to extend its Antwerp Distribution Center located in Melsele, Belgium with an adjoining warehouse of about 8,000 square meters and divided between cold storage and ambient storage. The new addition is expected to open by end of 2017. The Antwerp Distribution Center currently is the central European hub within the European Yusen Logistics Pharmaceutical Super Highway system and moves over two million pallets of pharmaceuticals annually.
A new distribution facility is planned near Roosendaal in the Netherlands. The facility will be about 1,225 square meters and will also consist of cold and ambient zones.
According to the Managing Director of Yusen Logistics Benelux, “Both projects underline the importance of our strategy to further grow our Healthcare activities in Europe.”
LogisticsTI Take: Demand for specialized distribution facilities such as healthcare grow as logistics providers link them to transport networks for quicker and efficient delivery. (Industry: Healthcare)
Summary: Kuehne + Nagel will offer global logistics services to customers of the Chinese e-commerce provider’s B2B business unit. The press release further notes that Alibaba.com’s paid members in China have been enjoying the ability to obtain quotations, book pickup and destination delivery services for airfreight consignments via Kuehne + Nagel’s digital solution KN FreightNet on Alibaba.com for over a year. The e-commerce relationship has already been extended to include less-than-container-load (LCL) solutions as well. Now, the strategic partnership will provide additional cooperation between the e-commerce giant and Kuehne + Nagel with the intent to expand the scope of logistics services on offer in the near future to cover the various modes of transportation (air, sea, rail, overland) and contract logistics outside China. (Industry: Retail)
LogisticsTI Take: Expanding its partnership with Alibaba, Kuehne + Nagel looks to stake its claim in the global cross-border e-commerce market amid a growing number of logistics providers including UPS, DHL, FedEx and SEKO that also offer such solutions. An interesting logistics area to keep an eye on in terms of profitability gains for forwarders, logistics providers and transportation providers alike.
Amazon Business Launches in the UK
VAT-exclusive pricing and VAT invoicing – Sellers can display VAT-exclusive prices to business customers and provide VAT invoices for all customers by enrolling in Amazon’s free VAT calculation service.
Fulfillment by Amazon (FBA) – Besides the ability for sellers to store products in Amazon’s fulfillment centers for Amazon to pick, pack, ship and provide customers service, products using FBA are also included in Amazon Prime making them eligible for unlimited one-day delivery for Prime customers. In addition, with Amazon Business, products using FBA are also eligible for free one-day delivery to all business customers on qualified orders.
Interesting statistics for Amazon Business – It launched in the US in 2015 and within the first year, generated more than $1 billion in sales with sellers accounting for over half of the orders. In Germany, it launched in December 2016 with 50,000 business customers and 10,000 business sellers. Since the US launch, Amazon Business has shipped to business customers in more than 60 countries through the US and German websites. (Industry: Retail)
LogisticsTI Take: Just as news broke of Amazon Business launching in the UK, news of Staples seeking a buyer also was released. The office supplies business model is dying which really should not be much of a surprise to anyone. In addition, the terms B2C and B2B are also disappearing as Amazon spreads into more and more industries. People have grown accustom to the “Amazon way of doing business” for lack of a better description and want the same experience within business and in personal use.
Lastly, as Amazon spreads its FBA solution, it’s transportation capabilities will also expand to meet the needs for its sellers and customers. Is Amazon a threat to other logistics providers? You betcha. I think as an industry, we no longer need to even question it. While we’ve said for a quite a while they are focused on serving the logistics needs of their ecosystem, that ecosystem is growing larger and larger and it will, if not already, result in market share gains within the logistics market.
Summary: Kuehne + Nagel new value-added service offering is being implemented in its facilities worldwide focusing on three areas: The use of state-of-the-art software, the deployment of the latest collaborative robots and the cooperation with local packaging providers.
Kuehne + Nagel has teamed with Nulogy, a cloud-based provider of contract packaging software and a partnership with Universal Robots to drive process automation and increase productivity through the integration of cobots (collaborative robots) to assist in packaging tasks and selected packaging providers at country level to benefit from local material sourcing, design and engineering complying with local requirements and market preferences.
LogisticsTI Take: According to a member of Kuehne + Nagel’s management board and responsible for Contract Logistics, “We aim at innovating systems and processes to seamlessly serve our customers and to make processes much faster, better and leaner, regardless of industries or geographies. With this strategic enhancement of our contract packaging services, we expect to see significant growth across a number of key markets and anticipate deploying hundreds of cobots in our operations in the next few years.” (Industry: Healthcare, Retail)
Summary: MD Logistics will invest more than $3.7 million to renovate its current operations in Plainfield, Indiana, to create additional pharmaceutical-grade storage capacity for global and domestic clients in the life sciences and medical device industries. The 173,000 square foot facility, which opened in 2015, will have expanded frozen and refrigerated pharmaceutical storage capabilities.
The renovation is expected to be completed in February, 2016 and will allow MD Logistics to support increasing market demands, including a new contract with a large global pharmaceutical company. MD Logistics currently operates four facilities in Plainfield and Reno, Nevada covering a footprint of almost one million square feet.
LogisticsTI Take: Growing demand for pharmaceutical and medical device warehousing needs as the industry continues to expand to be closer to end customers. (Industry: Healthcare)
Summary: Over the next three years, the partnership will help to provide countries with supply chain solutions to improve healthcare delivery. The project is part of Gavi’s private sector engagement strategy. According to the press release, it seeks to build a cluster of a private sector partners which address bottlenecks in immunization coverage and equity in Gavi-supported countries.
Kenya is one of the first countries to benefit from the partnership.Gavi, DHL and the Kenyan Health Ministry will test a dedicated transportation management solution for the efficient distribution of vaccines throughout the country. Incorporating a control tower called a Transport Support Hub, to better manage and coordinate third-party transport carriers and the use of DHL’s own global transportation network, the solution will improve the speed and reliability of vaccine deliveries to hospitals, clinics and medical professionals.
LogisticsTI Take: As noted by the press release, the new engagement with Gavi is guided by the Shared Value proposition – that the partnership helps society and the environment, while, at the same time, contribute to the success of Deutsche Post DHL Group’s business. Lifesciences is a great strength of DHL’s and its global reach/network will benefit Gavi-countries. (Industry: Healthcare)
Summary: An agreement has been reached in that approved WCA member companies will be integrated into the Alibaba.com logistics platform for cross-border e-commerce shipments. The collaboration will begin in January 2017, facilitating shipments generated by Alibaba.com’s members destined to export markets of the USA, India and the UK.
LogisticsTI Take: This latest logistics partnership is in addition to previous announced ones including SEKO and Maersk. In addition, it is our understanding that Flexport is also a partner. For WCA members, which consist of independent forwarders, it provides them access with an online booking platform. For Alibaba, its goal of expanding globally may succeed without having to acquire transportation assets. It’s a similar approach that it has taken within the Chinese domestic market with the establishment of Cainiao in that the e-commerce provider partners with logistics providers versus building/acquiring in-house like JD.com and Amazon. (Industry: Retail)