A positive outlook for Third Party Logistics Providers (3PLs)
For the 22nd year in a row, Penske released its 3PL survey results, which have left the logistics industry feeling positive about the current economic state and future perspectives. 30 CEO’s from the world’s leading 3PL companies across Europe, North America and the Asia-Pacific regions shared their thoughts on the leading trends, challenges and opportunities facing 3PLs. Important to note is the fact that representatives from all three regions project an industry revenue growth between 4 and 5.92 percent over the next three years.
During the past year, an increasing number of mergers and acquisitions shaped the playing field after a long period of marginal action. Since early 2014, various 3PLs have made 10 major acquisitions totaling $18 billion. These moves have shaken up the industry and have required a significant amount of adjustments in terms of business integration and brand identification. Moreover, many top CEOs believe several defensive moves, in the form of further acquisitions, are on the horizon as a result of these acquisitions.
Also interesting to note is the perceived threat Uber poses to the 3PL industry. With its expansive network, Uber’s involvement in the “last mile” aspect of delivery is expected to grow, posing a threat, especially to small couriers.
To read more about the survey results, click here.
The Hershey Company pledges support for peanut farmers in Ghana
As part of its “Energize Learning” program, in which 50,000 children in Ghana are provided basic nutrition through a peanut-based dietary supplement called Vivi, Hershey’s announced its plans to locally source 100% of the peanuts used in the production process by 2018. Through a new Clinton Global Initiative Commitment to Action campaign, Hershey’s will work closely with 7,500 farmers in Ghana and train them in order to improve upon current agronomic practices. The end goal is to deliver safe, high-quality peanuts to be used in the Vivi vitamin supplement.
Peanut farming in Ghana has a long history, however, according to Mike Wege, Chief Administrative Officer at The Hershey Company, commercial buyers have steered clear of the crops due to food safety concerns. The Hershey Company plans on sharing its expertise in the growing, roasting and processing of peanuts with this group of farmers in the hopes that peanut supply safety will be improved. In turn, the livelihood of these farmers will also be improved.
Click here to read the full story.
The new carbon supply chain standard
This week, the Carbon Trust announced the launch of its Carbon Trust Standard for Supply Chains certification. It is the world’s first international standard which recognizes the efforts of companies to reduce carbon emissions not directly associated with their operations. PwC, Aviva and ABP Food Group, along with four other firms, are the first to be certified under this new standard. These companies have a system in place to measure, manage and reduce carbon emissions along their supply chains.
The Carbon Trust argues that, next to environmental benefits, this new certification will bring participating companies significant financial and operational benefits, as inefficiencies and risks can be identified in the process. In order to participate, a business must conduct a supply chain “hot spot” analysis, which is used to identify the most carbon-intensive aspects along the value chain. The standard is retained by showing effort to communicate with partners and suppliers and being able to show improvement in carbon emissions at the various “hot spots.”
To read more about this new standard, click here.
Have a nice weekend!