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Challenges of the Last Mile Delivery in Serving E-Commerce Business 35 The Official Journal of The Logistics & Supply Chain Management Society MAY 2016 this issue LEADING FOR THE FUTURE WITH EI 29 CHART OF THE MONTH: 2015 A MIXED YEAR FOR CONTRACT LOGISTICS 33 CHALLENGES OF THE LAST MILE DELIVERY IN SERVING E-COMMERCE BUSINESS 35 HOW CAN WE MANAGE DEMAND FOR FRESH FOOD IN ASIA SUSTAINABLY? 37 main feature Challenges of the Last Mile Delivery in Serving e-Commerce Business air | maritime | logistics | supply chain | technology | events | www.logisym.com Contents Page 29 33 Feature Articles 35 29 Leading for the Future with EI 33 Chart of the Month: 2015 a Mixed Year for Contract Logistics 35 Challenges of the Last Mile Delivery in Serving e-Commerce Business 37 How Can We Manage Demand for Fresh Food in Asia Sustainably? Contents 37 From the Editor 04 A Word From the President 06 Contributors 08 Air News 10 Maritime News 13 Logistics News 16 Supply Chain News 19 E-Commerce/Technology 24 Events 39 4 LOGISYM MAGAZINE MAY 2016 | FROM THE EDITOR from the editor ……And now for a Q2 Outlook The Australian Logistics Academy was formed in the 1990s for the purpose Dear Readers, Supply Chains are becoming more of providing training and education to advance Logistics and Supply Chain sophisticated across all industries. The Management practices in Australia and the region. It continues to grow as a The global markets are giving new signals emergence and benefits of embracing professional organisation for Logisticians and plays a major role for Members and point to new trends. So, I can start my Adaptive Supply Chains in industries that and the business community by providing access to quality management editorial on a positive note. For the supply would never have considered this to be information, resources, practical education and business networking. chain industry there continues to be many relevant to their sector, has created new opportunities and good reason for cautious paradigms and opportunities. optimism. With the traditional industries and markets TOPICS: The economic outlook is improving for in the EU, US and Japan transitioning emerging markets – a more dovish US re-adjustments, we ask where will the 1. Strategic Analysis & 6. Purchasing & Inventory Decision Making Management Federal Reserve and progress in Brazil’s growth for the supply chain industry Held once every two months political saga have improved sentiment come from? With innovation of IT systems, 2. Business Research Project 7. Operations Management in Kuala Lumpur, Malaysia and led to more positive leading indicator tools and transportation networks which 3. Channels of Distribution 8. Supply Chain Management readings in emerging markets. The rise in oil are continually improving, the industry prices has also signaled some stability and has undoubtedly become more agile and 4. International Transportation 9. Transportation Management First Class Starting establishes a direction, provided prices can ready for new challenges. 11 October 2016 reach a stable platform. 5. Logistics Technology 10. Warehouse Management The e-Commerce phenomena is not a It is also worth noting that global flows new one. But the speed at which it is EARLY BIRD PROMO are at their highest levels. They include – now accelerating is of great importance. data, information, goods and connectivity. The B2B engagement and development WHAT YOU WILL GET: TILL JUNE 15, 2016 Which confirms that interdependencies is very interesting. Those who are of economies and the trade lanes are on able to leverage the business model, Complete 6 electives to attain ALA Diploma USD 300 (full price USD 380) the rise – thanks in part to various free deploying e-commerce platforms and trade agreements being put in place and take advantage of free trade agreements, Complete all 10 electives for ALA Adv Diploma All participants will enjoy 50% discount on Delegate Pass expectations of new ones being rolled out strategic bonded hubs to reach their for GLCS LogiSYM Malaysia 2016 (12 - 13 October) like TPP. markets, will break new ground and Sign up now and get 1st year LSCMS For more details, access www.logisym.com create new paradigms. The savvy supply However with increasing interdependencies chain enablers who can support these membership free and direct approval for CLP! we must not forget the lessons of the past. new initiatives with a sustainable and cost Managing weaknesses will present the effective model, will greatly benefit biggest threats. Often the speed of change and the emergence of imbalances needs As usual, I look forward to receiving your HRDF LHDN Double to be a key focus point. We do not want feedback at [email protected] and even The Logistics & Supply Chain Management Logistics Executive Group’s Logistics CLAIMABLE Deduction to see trade controls, more unnecessary publishing an article of yours. Society is the regional professional body for Academy is a comprehensive suite of under SBL Scheme for approved compliance and indeed unilateral actions Logistics practitioners.LSCMS emphasises Educational and Training Programs that cater transaction by some trading blocks. a commitment to ongoing education and for all levels of professionals and logicians Joe Lombardo encourages performance consistent with looking to further enhance their supply chain FOR MORE INFORMATION International Editor a generally agreed body of knowledge or and logistics skills and theirs careers. standards. Please contact Keng Pang at [email protected] www.logisym.com/events/masterclasses or Jevan Chandran at [email protected] The Australian Logistics Academy was formed in the 1990s for the purpose of providing training and education to advance Logistics and Supply Chain Management practices in Australia and the region. It continues to grow as a professional organisation for Logisticians and plays a major role for Members and the business community by providing access to quality management information, resources, practical education and business networking. TOPICS: 1. Strategic Analysis & 6. Purchasing & Inventory Decision Making Management Held once every two months 2. Business Research Project 7. Operations Management in Kuala Lumpur, Malaysia 3. Channels of Distribution 8. Supply Chain Management 4. International Transportation 9. Transportation Management First Class Starting 5. Logistics Technology 10. Warehouse Management 11 October 2016 EARLY BIRD PROMO WHAT YOU WILL GET: TILL JUNE 15, 2016 Complete 6 electives to attain ALA Diploma USD 300 (full price USD 380) Complete all 10 electives for ALA Adv Diploma All participants will enjoy 50% discount on Delegate Pass for GLCS LogiSYM Malaysia 2016 (12 - 13 October) Sign up now and get 1st year LSCMS For more details, access www.logisym.com membership free and direct approval for CLP! HRDF LHDN Double The Logistics & Supply Chain Management Logistics Executive Group’s Logistics CLAIMABLE Deduction Society is the regional professional body for Academy is a comprehensive suite of under SBL Scheme for approved Logistics practitioners.LSCMS emphasises Educational and Training Programs that cater transaction a commitment to ongoing education and for all levels of professionals and logicians encourages performance consistent with looking to further enhance their supply chain a generally agreed body of knowledge or and logistics skills and theirs careers. FOR MORE INFORMATION standards. Please contact Keng Pang at [email protected] www.logisym.com/events/masterclasses or Jevan Chandran at [email protected] 6 LOGISYM MAGAZINE MAY 2016 | A WORD FROM THE PRESIDENT a word from the president Let’s not be Silly. Back in 2008 and into 2009, Oceanfreight rates I have spent the last month traversing much hit similar lows to what we are starting to see of the globe from Europe to Dubai and this today. I was working as a Logistics Manager in last week the US. Everyone is aware that a Major US Chemical company at the time and the rest of this year does not look very rosy the CEO of our company read in the financial but it is heartening to see that aside from a times one day that you could ship a container few ‘nervous’ individuals, most Logisticians from X – Y for as little US$100. are taking a cautious but fair approach in dealing with vendors and customers instead He immediately sent an email out to the of this short term thinking I experienced global Supply Chain organisation querying back in the day. why we were paying US$1000 a TEU when the papers were saying that rates were only Let’s face it, revenue and volume numbers US$100. Everyone went into a state of panic this year are not going to be as good as last and our VP of Supply Chain wanted us to “do year's. Every port is reporting lower volumes something about it”. I am sure this is a scenario - except for the blip in Frankfurt this month some of you are familiar with. which was a result of other issues and not buoyant trade. We do need to be cautious in I called the key carriers we were working with the coming months but taking a retrograde at the time and asked them what they could approach to growth and expansion plans do to help. Despite some of our carrier MQC’s and having a knee jerk reaction and (minimum quantity commitments) being less panicking is simply short term thinking and than 3 months old, all carriers we spoke to will expedite the turning of this less than understood the situation I was in and reduced rosy outlook into a self-fulfilling prophecy of their rates wherever they could. This was in doom and gloom. the days when most contracts had a minimum one year validity. Let’s not be silly and take a short term view – as many US corporations are prone to Of course our CEO was not satisfied with the do. We have seen this happen and indeed efforts we made but within half a year, rates happen with increasing frequency since started to creep upwards and we were actually the 1998 Asian Economic Crisis.
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