Transportation is the biggest obstacle for the Consumer-packaged goods industry
According to a new report by the Boston Consulting Group (BCG) and the Grocery Manufacturers Association (GMA), transportation is now the biggest hindrance in the supply chain of consumer-packed goods (CPGs). In the 2015 BCG/GMA supply chain benchmarking study, the focus was placed on manufacturers´ outbound supply chain logistics. The report indicated that $15.5bn (£9.9bn) was spent by the CPGs industry on transportation alone. This reflects a 14 percent increase in freight costs since 2012. In addition, this upsurge in expenditures has led to a reverse in other supply chain cost saving efforts.
The senior director of the Trading Partner Alliance of the GMA, Daniel Triot said, “Supply chain leaders are caught between two challenging transportation trends, as they either must pay more to meet service-level expectations or sacrifice speed and reliability for cost efficiency.” He went on to also state, that the aging transportation infrastructure is another pivotal inadequacy compounding upon these transport issues.
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ACE Europe´s List of EMEA Threats is led by Technology, Supply Chain & Regulation
A survey of 500 companies in Europe conducted for the global insurer ACE´s Emerging Risks Barometer 2015 revealed 3 main threats to businesses across Europe, the Middle East and Africa. The risks include technology (at 43 percent), supply chain (at 31 percent) and regulatory risks (at 27 percent). Technology risks included cyber-attacks and business interruptions, with the biggest concern being the violation of customer data. Supply chain risks dealt with many multinationals seeking to expand in the emerging markets having to deal with an extended network of suppliers and partners. Regulatory risks increased with the expansion of operations overseas, with 56 percent of respondents believing that their company directors may not fully comprehend governance issues in every country they oversee.
Different areas of risk are becoming increasingly interconnected, with businesses ever more concerned with issues that can harm their corporate reputation, rather than interruptions caused by natural disasters. Unethical labor practices represent the biggest supply chain worry. Finally, the report indicated that the insurance industry has a critical role to play in mitigating the increasing business risks.
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Lufthansa Cargo honors Dachser Air & Sea!
The 2014 Lufthansa Cargo Quality Award for Europe & Africa went to the family owned and German headquartered Dachser Air & Sea Logistics. The award recognises both the firm’s superior logistic input qualities as well as their high level of reliability for bookings in comparison with all the other competing logistics firms.
In 2014 Dachser generated revenue of €5.3 billion and moved 73.7 million shipments weighing a total of 35.4 million tonnes. Lufthansa Cargo has a “flown as planned” performance criterion to grant the award. This criterion includes metrics measuring: booking quality, meeting the Cargo 2000 RCS indicator (ready for carriage shipment received from the forwarder) as well as minimal no-show rates. The Regional Manager of North Central Europe at Dachser, Thomas Krüger accepted the award on the company’s behalf and said, “At Dachser, the issue of quality gets top priority. This award proves that we have done our homework.”
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Have a nice weekend!