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)