A lot of the retailers are still using existing logistics-centric distribution networks that work well for replenishments. Now they are trying to force fit e-commerce and consumer-centric models into that.
LOGISTICS
Transpacific ocean spot rates were stable last week, suggesting that decreases in ocean capacity (blank sailings) may be slowing the rate decline, per Freightos.
Asia – N. American ocean rates appear to be approaching their floor with recent November and December peak season surcharge (PSS) and general rate increase (GRI) announcements from the carriers, said Flexport.
In China new lockdowns are being imposed and supply chains will likely experience disruptions, said UPS.
Over 300 industry groups in the U.S. have asked the government to intervene to avoid a mid-November rail workers strike, which could happen if an agreement is not reached, per UPS.
Air cargo prices were stable overall in October. The current rate of $4.45/kg from Asia to N. Europe is 26% lower than last year, while the Asia – N. America rate of $5.74/kg is 46% lower than a year ago, per Freightos Air Index data.
ENERGY
Gas prices in the EU are forecasted to be on average €200/MWh in Q2 2023 until end of the year, said UPS.
MATERIALS SOURCING
Innovative Solution that Help Brands Be More Sustainable
“Sustainability is like a new trend that most brands want to be part of. Even if they are not really focused on sustainability, they are concerned about it,” said Thamonwan Virodchaiyan.
“We need to have a variety of solutions for them, and one of the top solutions is using natural fibers,” she said. Another is a new fabric sourcing platform that supports the circular economy. Read More
PODCAST
Why Venture Capital Might Be The Wrong Way to Fund Your Startup
Mention venture capital and everyone imagines multi-million dollar rounds of funding, the thrill of founding the next unicorn – all leading to a windfall of cash when the company has its IPO.
The reality can be quite a bit different. The road from startup to cashing out is typically frustrating, frenzied and at times even frightening.
In this episode Nick Fogle, Founder & CEO of Churnkey, shares some advice and cautionary tales about the pros and cons of venture capital.
You’ll Learn:
- The Potential Pitfalls of Venture Capital
- The Highest Impact Areas Where A Founder Should Invest Their Time
- The Top 3 Lessons Learned While Fielding Acquisition Offers And Ultimately Being Acquired
And much much!
SUPPLY CHAIN STRATEGY
The Rise of Micro Fulfillment in an Era that Demands Speed and Agility
Many retailers are looking at how they can create on-site micro-fulfillment centers that can serve both their physical store and e-commerce.
Micro-warehouses can be set up within a few months. Automated systems, such as computer vision solutions for inventory monitoring, can be installed without expanding the facility’s footprint.
By leveraging automation in conjunction with the physical workforce, micro-fulfillment centers help to reduce the time it takes to gather and pack an order, which increases overall productivity and reduces the cost to fill each order. Read More
MARKETS
The Bank of England has raised interest rates by 0.75 percentage points to 3 per cent in its most forceful act to tame inflation for over 30 years.
Federal Reserve chair Jay Powell cautioned that it was still “very premature” to think about pausing interest rate rises as the central bank raised rates 0.75 percentage points for the fourth time in a row.
MATERIALS
Oil prices rebounded after an industry report pointed to a big drawdown in US crude inventories, signaling that demand remains solid despite global growth concerns.
Cotton prices face headwinds on the back of a stronger dollar and amid lingering demand concerns due to challenging economic conditions. Prices fell 8.75% month-on-month.
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