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Blog Posts (4)
- A Pandemic, Supply Chain Disruption, and Logistics Procurement: Lessons for the Future (Part I)
A lot has been said about the impact that COVID19 has had on supply chains, and what potential strategies organisations are likely going to use in the future to deal with such massively unpredictable mega impact events, and hence I will not talk about that. I am going to restrict my musings to the rather inconsequential matter of Logistics Procurement, and whether the buying strategy (if it exists) or the process of logistics procurement impacts the ability of the organisation to respond to black swan events. This is a perfect time to look at the role of Logistics procurement strategy and its impact on logistics execution and the ability to respond to company, industry, economy, or civilization level disruptive events. A large part of Logistics procurement is related to getting things moving at the lowest possible cost. And other things like size of Logistics Service Providers, their ability to scale up support, help launch new products or enter new markets, digital readiness for visibility and planning, ability to remain afloat in bad financial periods, customer centricity, and capacity to help improve core Supply Chain capability of the customer are evaluated to varying degrees by customers. In many cases Logistics is considered like a transactional service, which can be procured from an infinite pool of providers, and the more this belief, the more we tend towards Logistics Procurement being a L1 decision, lowest cost bidder wins, if he/ she fails, the next lower cost provider wins. And then equilibrium is found for a short while, churn continues, partnerships are not built, common programs not undertaken, and when a crisis strikes, we go looking for the L1 provider who can execute in crisis. We are not able to respond because we are like a couple coming to the Olympics Figure Skating Pairs event without any rehearsals, not knowing what mettle the partner is made of, and whether they can pull off the pair spins, lifts, jumps, death spirals or not. A perfect routine in a high stakes high pressure arena comes good based on expertise, fitness, character, and years of practice together, which in turn creates trust, intimate knowledge of strengths and weaknesses, and understanding of the role of each party. I am trying to suggest that deep partnerships based on assessment of capabilities, long term roadmaps, joint investments, and a response process honed through simulation and execution may significantly contribute to our ability to respond to Supply Chain Disruptions. A global crisis is not the time to go looking for the L1 provider on spot rates but a time to be able to work with the chosen partner(s) in confidence that this team has the strength and the playbook to navigate the crisis, and the Logistics Service Provider is not only capable but is invested into the customer relationship to switch on their best game for the customer. Will we see organisations reflect on Supply Chain execution failures in times of COVID19 and say some of this could have been avoided if we had a Logistics Procurement Strategy, if we had the concept of core partners, if we had a Lead Logistics Partner, if we had built joint roadmaps for capability development, if we had simulated response to disruptive events together, and if we had not worried so much about L1. The optimist in me says that organisations will look at Logistics Procurement and Partner selection as a key element of supply chain risk management. The Realist in me is not so sure. Sometimes the best opportunities come in a crisis, this is a great opportunity for Chief Supply Chain Officers to reimagine the role of the Supply Chain inside the organisation. My worry for the community is that we will all go back to L1.
- Cross Border Supply Chain ApproachPublished on August 8, 2019
Technology: This is the world of technology, the world of Artificial Intelligence. In retail, the world of E-commerce.Customers are increasingly defining how companies should build their supply chain strength. They can now shop anytime and anywhere, expect a more fulfilling experience from the retailers. The job of the retailer, doesn’t end only by making the best product available to the customer, but also in ensuring that the delivery of the product is seamless and hassle free to win customer preference. Hence, retailers are starting to seriously consider how to build a robust and sustainable supply chain model for long term business growth to meet fast evolving consumer demand, while minimizing costs and achieving profitable growth. The expectation of delivery experience remains same even if the retailer procures products from overseas. Typically, what a retailer does to take care of supply chain is to appoint a leading logistics service provider, who takes care of the entire process of delivery of the product, starting from sourcing to last mile delivery. The service provider, on the other hand, charges the retailer and executes various processes within the supply chain through partners. While this process is fine with smaller consignments involving a limited volume of products restricted to geographical proximity, this goes extremely difficult when international supply chain with no boundaries across the world is to be handled by a retailer and the same experience is to be delivered to it's consumers. There are quite a few reasons behind this inference. First of all, dependency on a single courier service provider like last mile partner or adoption of ‘inorganic’ supply chain management can have a huge impact on the cost to the retailer. This is because, typically a player needs to either an expert in international movement and domestic also they have presence worldwide to handle end to end supply chain which is quite rare in today's scenario. Secondly, post engaging with a courier service provider, the retailer has zero control if exact point to point tracking is not provided. End consumer dependency is completely on that overseas tracking right from source to delivery and we are talking of giving same experience as a domestic last mile delivery. Cross Border supply chain approach What should an enterprise retailer do to give the same experience of domestic delivery to their International product deliveries. Some of the critical aspects of a retailer’s global supply chain involves First mile consolidation from Overseas sellers, domestic shipment, International air freight forwarding, destination custom clearance, destination fulfillment and last mile delivery. In an ‘organic’ approach, retailers can segregate the scope of work and engage with a best in class service provider for each function and interact with a player who has International presence with a global network and ability to handle end to end supply chain or a supply chain integrator . By partnering with such player in the market, retailers can now expect greater assurance and reliability of operation as each function requires skillset. Moreover, this approach helps in creating a scalable ecosystem where both the retailer and the service provider get an opportunity to grow their business through large scale consignments. This approach also gives greater visibility and control to the retailers as they now have the exposure to the performance of each and every function. Also, for enterprise retailers, it makes a lot of sense to partner with the best in class service providers in such functionality of the logistic supply chain. It is like having a team of specialists executing their jobs perfectly, rather than depending on a particular individual to wear many hats. However, there is a caveat in selecting such partners. A retailer must be really careful in choosing partners. Performance standards should not be compromised while selecting the service provider. All service providers must adhere to uniform bench marking standards and procedures to ensure that the delivery process does not suffer. Moreover, pre-defined Standard Operating Procedures need to be laid out for each function so that the retailer can measure the performance from time to time and eliminate any constraint that affects the functioning of any of the department. A third party omni-channel technology enabler with experience in working with enterprise brand is a better bet to partner with to take care of all these processes. Enterprise retail brands need to envisage that investing only in delivering better products is just half the job done. The same degree of focus, if not more, is needed to be given on how to provide best in class supply chain service to customers. A sound logistic management goes a long way in the brand building process for enterprise retailers. Cross-Border Parcel Solutions JUSDA is a pilot in integrating Component to Manufacture to Consumer (C2M2C) solutions. We leverage our 17 years of experience to help enterprises transform and upgrade their supply chains by applying our innovative business model that covers the flow of trade, goods, information, capital, technology and processes. The premiere supply chain management platform for Foxconn Technology Group, JUSDA is committed to driving professionalism and growth through the application of advanced technology and research and development. The organisation is focused on increasing the ability of e-commerce retailers, or e-tailers, to grow in cross-border markets. Through it's global network and strong tech base. They are able to solve the primary challenges in the cross border E-commerce space as below: Reduced transit time and lower cost to international markets for faster expansion; Reduced product cancellation rates internationally due to strong process flow and minimum TAT; An easy solution with international in-country return capabilities; Unified tracking internationally regardless of first and last mile logistics carrier Jusda India Supply Chain Management easily facilitate the integration of their solution with retailers and e-tailers where both API, EDI, and even XML become standard integration formats and can make the onboarding process faster with any customer. With the help of massive freight and trucking solution, Jusda added first mile, fulfillment and last mile solution and build the entire end to end supply chain which was the key need in the market.
- Cross Border E-commerce Study
What is cross border ecommerce Cross-border ecommerce can refer to online trade between a business (retailer or brand) and a consumer (B2C), between two businesses, often brands or wholesalers (B2B), or between two private persons (C2C), e.g. via marketplace platforms such as Amazon, Flipkart or eBay. Opportunities in India India is one of the fastest growing markets for e-commerce. The number of Internet users stood at 481 million in December 2017 and is expected to reach 500 million by June 2018. The number of online shoppers in India is expected to reach around 220 million by 2020 from only 39 million in 2015 (Confederation of Indian Industry (CII)). This growth has been supported by government initiatives such as Digital India. Post demonetisation, digital modes of payments have increased. According to the Reserve Bank of India (RBI), approximately 282 million point-of-sale transactions were made on debit cards and 115 million on credit cards in February 2018. In recent years, a number of start-ups have emerged in areas such as e-retailing (Flipkart, Snapdeal, Meesho), credit lending (Faircent), food delivery services (Swiggy.com, Zomato IN, Fresh to Home, ID Fresh Food), and logistics management services (FarEye, Unbxd). According to NASSCOM (National Association of Software and Services Companies) and Zinnov Management Consulting, aggregators in e-commerce are receiving substantial funding from investors, which is leading to the scaling up of start-ups. All these factors will support the growth of this sector in the domestic market. Concerns One of the key concerns of players in this sector is that Indian companies are small compared to global multinationals such as Alibaba Group Holding Limited (which is mainly engaged in C2C sales), Amazon.com Incorporated, and Google LLC, and they lack the ability to compete with these global giants. India is a net importer of e-commerce. Moreover, While regulation is evolving, there are some gaps in regulations and policies. For example, India is one of the few countries that does not allow FDI (foreign direct investment) in inventory-based model for e-commerce, which has compelled global e-commerce companies such as Amazon.com, Incorporated to change its business model in India. Further, there are issues related to protection of intellectual property rights, consumer privacy, and regulation of global e-commerce and technology giants. The country is yet to have strong national security and data protection regulations, and there is no clear policy on how to tax e-commerce transactions. Regulatory Landscape for eCommerce Foreign Direct Investment (FDI): B2B: 100 percent FDI is allowed in companies engaged in B2B eCommerce, e.g. Walmart and Alibaba can operate a cash & carry (B2B) business. B2C Marketplace: 100 percent FDI is allowed in the online retail of multi-brand goods and services B2C under the marketplace model, e.g. Amazon, Flipkart, Snapdeal. Any eCommerce entity providing a marketplace cannot exercise ownership over the inventory and is not permitted to sell more than 25 percent of total sales through its marketplace from one vendor to their group companies. There are also conditions restricting to offer discounts by marketplace. B2C Inventory-Based: FDI is not allowed in inventory-based model of eCommerce. Single Brand: A single brand retail trading entity operating through brick and mortar stores is permitted to undertake retail trading through eCommerce subject to local sourcing requirements. Food retail: 100 percent FDI is allowed for trading (including eCommerce) of food products manufactured or procured in India. Multi-Brand Retail: No FDI is allowed in companies which engage in multi-brand retail trading by means of eCommerce. Other Government Actions: The National Institute for Transforming India (NITI Aayog) has set up a high-level committee to consider issues related to eCommerce including FDI. The Food safety and Standards Authority of India (FSSAI) has also issued draft norms for licensing online food operators. The Consumer Affairs Ministry is also planning to regulate eCommerce through the proposed new consumer protection law. B2B eCommerce To tap the huge potential in the B2B eCommerce market in India, leading B2B companies have started to build their own platforms for small business owners and traders. More and more companies and SMEs are buying and selling online and plan to shift procurement transactions through the internet. Understanding this untapped potential of the B2B eCommerce industry, the government has allowed 100 percent FDI in B2B eCommerce, which has enabled global companies such as Walmart and Alibaba to show interest in the Indian B2B eCommerce industry. The Indian B2B eCommerce market is expected to reach $700 billion by 2020. India has 14 million retailers fueling a $525 billion market. The higher profitability in the B2B segment can be the result of the lack of heavy discounts, greater emphasis on quality rather than on price, and higher volumes of purchases, etc. Software as a service (SaaS) platforms can provide a stable platform to small and medium businesses in India that shy away from making huge investments to enter the online retail space, establishing their authority and payment infrastructure. With these platforms, a startup can launch its own eCommerce portal in a much-reduced cost over a monthly rental or a revenue sharing basis on pay-as-you-go model. Import clearance regulation: With the change in cross border clearance policies in CB XII and CB XIII courier clearance, supply chain and logistics companies are moving towards building a more robust and compliant model in cargo commercial channel. This will change the entire value chain where the goods will be valued properly and the taxation will be streamlined. The growth of Cross Border E-commerce import will slow down but definitely it will rise to a new channel of supply chain which is more long lasting. International Supply chain companies like JUSDA supply chain, Flexport entering to this field which will definitely make the space more competitive and compliant. I as the India lead of the cross border supply chain vertical in a global company like Jusda India SCM and seeing the change in India business trader's and marketplace's actionable in terms of moving towards more compliant process makes me believe that there is a huge potential in the market which is yet to start it's journey. The major crack down in the Indian customs on Chinese etailer's parcels has just slowed down the business for a short while but it helped the business to be more matured and long lasting. It is evident that bigger brands from China, US, Europe will enter this potentially huge market in near future but in a compliant way. That is when bigger global supply chain players will come into play in a full fledged scale also there will be quick ramp us of Indian logistics companies like Delhivery, Xpressbees, Shadowfax etc in the cross border SCM business.
Other Pages (27)
- Jusda India | Land Freight | Ocean Freight | Air Freight
Service Locations Worldwide 155+ Global Service Network 100+ Warehouse Space (M² ) 2500000+ International Lines 1500+ Our Solutions Leveraging our years of leading lean supply chain management capabilities and with focus on manufacturing, we have expanded into more industries and now provide comprehensive solutions for eight core industries, including electronics manufacturing, 3C home appliances, energy, automotive and automotive aftermarket, medical health, heavy industry equipment, FMCG, and bulk materials. Services Our major services include sea, land, air and railway layout transportation network, cloud warehouse, Consol-WHS&DC , Foreign Trade Platform, etc. Air Freight Ocean Freight Domestic Transportation Cross border E-commerce Warehouse Custom & Trade Compliance Anchor 1 JusLink Smart Supply Chain The JusLink smart supply chain integrates modern technologies such as Internet of Things, cloud computing, and big data, to break the isolated silos in which upstream and downstream enterprises in the supply chain operate with no information sharing, thus effectively realizing enterprise information sharing and seamless docking of the entire chain. JUSDA JusLink Smart Supply Chain Real-time Collaboration Platform Smart Chain Lab Application of industrial Internet scenarios Learn More Global Network Juslink smart supply chain management platform services Start Now Start Now
- About Us | Jusda India
Committed to becoming the world's most professional supply chain logistics management platform service company Global Service Network 100+ International Lines 1500+ Warehouse Space (M² ) 2500000+ Global Employees 6000+ About Us JUSDA is the only authorized supply chain management platform service company of Foxconn Technology Group and has accumulated nearly 20 years of experience in lean supply chain management, focusing on end-to-end supply chain integration in the whole process for manufacturing industry ,upstream from raw material to finished product and downstream from the finished product to the terminal consumer. The deep integration in supply chain with the customers promotes the supply chain to become the real core competitiveness of the enterprise. We work closely with more than 3,000 3C component manufacturers and customers around the world to serve more than 1,000 well-known brand customers and become a leader in the industry with excellent experience in global supply chain management. Download JUSDA Brand Information Company Intr Brand Guid Photo Gallery Contact JUSDA expert consultants Consultant to get professional solutions and quotations
- Air Freight | Jusda India
Global air transportation network And transparent international and domestic air transportation services We have a strong global agent network with 27 international air cargo strategic partners, and air routes covering more than 100 countries and 500 cities, and we can provide you with full-fledged direct charter flights and door-to-door service. Contact Us Now Annual Air Volume 150,000 Ton Air routes to 500 cities in 100 countries Urgent services JUSDA provides expedited air transportation services and follows the principle of timeliness first to quickly match direct flights and special vehicle resources, for efficient docking services and comprehensive guarantee of air transporta Consult Now Standard service JUSDA offers standard services for direct flights and transfers by leveraging the JusLink smart cooperation platform to provide high-quality and high-cost service combinations such as direct flights, transfers, carpooling, etc. Cost – effective service combination Consult Now Economical service JUSDA offers economical air transportation services that match and consolidate flights and trucks, which prioritize costs and effectively ensure customer cost control. Consult Now Chartered aircraft services We work closely with global airlines and charter operators to cope with the sudden increase of passenger transport demand and the difficulties of passenger transport during peak seasons, to meet passengers' charter demand for different routes, different aircraft types, and different cargoes, and to provide them with more precise aviation services: • Chartering solution design • On-site operation, process monitoring, and dynamic tracking Consult Now Domestic/international hand JUSDA's hand carry services are available for the accurate and safe delivery of important items. The solution prioritizes safety, adopts big data positioning and provides comprehensive and reliable escort service. Consult Now More secure and broad airline channels As a member of IATA, JUSDA has internationally recognized financial and professional capabilities, and customers can enjoy an internationally high-standard air transport experience. Comprehensive air transport service network Leverages a comprehensive and mature air transport service network and standard operating procedures to provide accurate data, transparent prices, It can help you save time and make you comfortable. End-to-end air service Guided by customer needs, we provide one-stop end-to-end services. JUSDA is in complete control of the demand of each air transport service link and has exceeded customers’ expectations. Domestic Transportation Learn more 》 Ocean Freight Learn more 》 Contact JUSDA expert consultants To provide you with professional solutions and quotations. Consult Now
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