Saturday, February 2, 2008


Survey Results: Findings on Supply Chain and Partner Integration

According to a survey by E2open Inc., ( at the SaaS (software-as-a-service) Pavilion during the Oracle OpenWorld 2007 event in November 2007, the highest priority supply-chain initiatives are globalization of the supply chain, lean supply-chain management, and trading partner integration.
Of the more than 350 respondents, 66% said globalization of the supply chain is the highest priority initiative to leverage economies of scale and scope across the multinational supply-chain network and operations that have grown by acquisition. E2open says multiple selections were allowed. 60% said extending lean principles across the supply chain to drive shorter and more real-time process cycles was the highest priority initiative.
Additionally, 57% selected trading partner integration in order to synchronize processes and data with suppliers by consolidating supplier portals and business-to-business gateways. While 33% selected process automation—replacing manual with technology-enabled processes to make it faster and easier to interact with suppliers in processes such as vendor-managed inventory, procure-to-pay and international procurement offices as their highest priority initiative for the supply chain.


Market Review: Freight Forwarding Market undergoing Consolidation

The freight forwarding market has been a major beneficiary of an increasingly globalised world economy. The development of extended supply chains, integrating manufacturers, suppliers and retailers on a worldwide basis, has led to significant year-on-year growth in international trade volumes. Freight forwarders revenues - and profits - have surged and this has resulted in structural changes to what for many years was a conservative and stable industry.
These changes have included an unprecedented level of mergers and acquisitions from which a small number of global players has emerged. Many long standing brands like MSAS, AEI, Emery, Danzas, ASG, Wilson, Circle have been subsumed with evolution of mega-carriers such as DHL Global Forwarding, Schenker, UPS Supply Chain Solutions and Kuehne + Nagel.
The levels of profitability in the market, its growth prospects and the asset light nature of freight forwarders' business models have made the sector highly attractive to investors. The industry's attribute of counter-cyclicality - that is, its ability to increase margins in times of economic downturn - gives it an advantage over other segments of the logistics market. Global Freight Forwarding 2007, a report by Research and Markets contains a comprehensive overview of all the major trends and developments affecting the industry. The report looks in detail at the structure of the industry, examining in turn each of its constituent parts.

1 comment:

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