Amazon gambled on expansion and won lower shipping costs

supplychaindive | May 04, 2017

A study by the National Bureau of Economic Research (NBER) revealed that, in the past decade, Amazon has reduced its shipping costs by roughly 50% while at the same time growing its profit margins between 5% and 14%, Buzzfeed reported.The study notes that within the same span, a 40% reduction in prices has also occurred, potentially linking the shipping savings to customer cost reductions. As the number of distribution centers has expanded, Amazon saw savings of between $0.17 and $0.47 for each 100 miles cut out from the shipping of $30 worth of goods, the study added. Amazon's is an example of a company taking control of its supply chain, and the costs-benefit calculations implicit in any decision.Each vertical move, whether a new distribution center or acquisition, requires significant capital infusion whose returns are seen only in the long-term. The results of Amazon's early investments are now evident in the company's market share and savings, even if not in the company's profit margins.The company shows no signs of stopping in retail, however, and is now attempting to disrupt other markets with the same model, including logistics. If Amazon's strategy works because it can be a dominant force in the market, can it be the case for its logistics venture as well?

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SOFTWARE AND TECHNOLOGY

ePost Global Expands to Florida

ePost Global | June 16, 2022

ePost Global, a technology-enabled international shipping solutions provider, is excited to announce its expansion to Miami, FL on June 15th, 2022. South Florida will become the company’s Southeast U.S. hub. Led by global logistics experts, ePost has experienced significant growth through cross-border ecommerce trends and recognized the need to better support its existing and potential customers in the Southeast U.S. This facility is further proof of the company’s continued focus on strategic investment needed to support its growing ecommerce customer base.“We are excited to increase our U.S. footprint, says Fabrizio Alvear, EVP of Operations. In an environment where consumers are regularly shopping online, it is important to focus on how we can reduce delivery times, and with this expansion, we can improve our service offering. By opening a presence in South Florida, we are emphasizing the importance of aligning with major international logistics hubs.” ePost Global has a national presence with multiple locations strategically located near international postal facilities and major airports. This expanded Southeast presence complements ePost’s headquarters near Los Angeles, CA, Midwest hub near Chicago, IL and Northeast facility located near the JFK, EWR and LGA international airports. Opening a location in Miami is merely the first step in ePost’s plan to further invest in the region with a focus on recruiting technology and operations talent. “This new location helps us become a better partner for our existing customers and tap into a new pool of ecommerce businesses, With the continued growth of cross-border ecommerce, Miami is a critical hub for international shipping to ensure consumers anywhere in the world can appreciate U.S. consumer brands. The new facility will offer the same innovative, tech-enabled shipping solutions and best-in-class customer service that have become synonymous with the ePost brand.” -Kelly Martinez, EVP of Sales and Marketing. About ePost Global ePost Global delivers cost-effective, global delivery solutions through strategically located processing centers throughout the United States. By combining technology and global logistics expertise, ePost Global optimizes delivery workflows, enhances visibility for all phases of delivery, and simplifies international shipping complexity.

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LOGISTICS

J&T Express Launches Network in Egypt, Further Expanding Global Footprint

J&T Express | June 22, 2022

J&T Express ("J&T"), an international express logistics company, announced that it has officially launched its network in Egypt. This is another major step in J&T's expansion in the Middle East North Africa (MENA) region, following the Company's launch of the network in the UAE and Saudi Arabia and announcement of establishing a smart logistics park in Riyadh. This latest expansion brings J&T Express' global network coverage to a total of thirteen countries, expanding its global delivery network to Africa markets beyond Asia and Latin America.E-commerce in the MENA region is fast catching up with global powerhouses. Egypt, as the most populous Arabic country, represents one of the most diversified economies in the MENA region. The total revenue of ecommerce in Egypt reportedly reached $5 billion in 2021. In line with the National e-Commerce Strategy, Egypt aspires to harness the power of e-commerce to help catalyze innovation, growth, and social prosperity in the digital economy. The rapidly growing e-commerce market presents significant opportunities for the express logistics industry. J&T Express has established one sorting center and 10 distribution centers, with its distribution network covering the full country except the North Sinai military command area. Following the company's entry into Latin America earlier this year, it is an important step for the company to continue to further cultivate emerging markets and expand its strategic global footprint. "J&T is an independent e-commerce enabler, offering express delivery solutions to leading e-commerce platforms. By leveraging our expertise of providing efficient and convenient services through our growing global operation network, J&T Express is set to contribute to the faster development of e-commerce in the MENA market and the launch in Egypt bears testament to our commitment to the region." -Charles Hou, Group Vice President of J&T Express Patrick Chen, Head of J&T Express Egypt, said, In view of rapidly increasing internet penetration, the Egyptian market is well-positioned to tap on existing opportunities to further e-commerce development. J&T Express is excited to establish a refined service network in Egypt and offer an efficient, convenient and quality logistics experience to local retailers and customers. With its network launch in Egypt, J&T Express' network now spans thirteen countries including Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the UAE, Mexico, Brazil and Egypt, and serves over 2.5 billion people. About J&T Express J&T Express is a global logistics service provider with leading express delivery businesses in Southeast Asia and China, the largest and fastest-growing market in the world. Founded in 2015, J&T Express' network spans thirteen countries, including Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the UAE, Mexico, Brazil and Egypt. Adhering to its "customer-oriented and efficiency-based" mission, J&T Express is committed to providing customers with integrated logistics solutions through intelligent infrastructure and digital logistics network, as part of its global strategy to connect the world with greater efficiency and bring logistical benefits to all.

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OPERATIONS

ISG Event Explores Technology and Operating Models Needed to Transform Customer Experience

ISG | June 24, 2022

Consumer-facing businesses need to invest in technology and new operating models aimed at creating hyper-personalized, friction-free customer experiences, say experts with Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, appearing at the upcoming ISG TechXchange: Consumer Services event.The full-day event, July 13 at etc.Venues in New York, will examine the shifts in technology, data analysis, operating models, security and sustainability companies in the consumer products and services, retail, logistics, and travel and hospitality industries must accomplish to deliver the experiences their customers expect – and that will define success for years to come. “The customer experience is front and center and will stay that way for the foreseeable future,” said John Westfield, partner and practice lead, ISG Consumer Services, and host of the event. “Consumers have high expectations for a hyper-personalized, meaningful, friction-free journey for in-store, online and mobile shopping, and enterprises are working to modernize decades-old legacy platforms to deliver instantaneous, relevant experiences.” The multi-dimensional impact of creating meaningful, hyper-personalized customer experiences in the face of legacy enterprise IT landscapes will be addressed by Clare Megathlin, managing director of software engineering for Alaska Airlines, in a panel discussion, “Shedding Legacy and Modernizing with Innovative Technologies,” Pratibha Salwan, director and leader, ISG Travel, Transportation, Hospitality, Leisure and Logistics. In a separate panel discussion, “Leveraging Data for Smarter Insights,” Gaurav Bhatia, chief marketing officer for credit union PenFed, and Sunder Pillai, director and lead, ISG Retail and CPG, will discuss how brands are leveraging data from consumers, suppliers and retailers to design better products and services and create stronger brand loyalty. The featured presentation, “Becoming an Elite Performer: How to Supercharge Your Development Teams in a Cloud-Native World,” delivered by Jennifer Galvin, head of technology alliances for OutSystems, a platform provider of omnichannel applications, will explore a high-performance, low-code development approach to creating software for a continuously evolving world. As enterprises increasingly look for business value from data monetization, Sahil Sabharwal, vice president of enterprise data platforms for American Express, and Ranjan Roy, vice president of strategy for clothing manufacturer Adore Me, will discuss the data science, artificial intelligence and digital automation innovations – and cultural changes – that are fueling such initiatives, as part of a panel discussion, “Innovations@Scale.” A successful customer journey is dependent on an enterprise’s ability to produce and analyze data at scale,” Westfield said. “Relevant, contextual data must flow through the entire business ecosystem. This can only be achieved by investing in analytics technology, coupled with continuous training and investment in people to develop analytical, technical, functional and even behavioral skills. During the event, ISG experts will present insights on topics ranging from the 360-degree customer view, to personalization, the metaverse, virtual innovations, and building sustainability, technology and innovation into the customer experience. The ISG TechXchange: Consumer Services event is sponsored by Cognizant, Mindtree, OutSystems, Tata Consultancy Services, Zensar, Allganize, Tiger Analytics and UiPath. CIOInsights, CIOReview, Retail Tech Insights, RetailWire, The Technology Business Management (TBM) Council and The AI Journal are media sponsors. Additional information and event registration are available on the event website. About ISG ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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SUPPLY CHAIN

Certa Launches Next Evolution of Third-Party Risk Management Amid Record Supply Chain Disruption

Certa | July 01, 2022

Certa – a leading supplier management platform – released Studio 2.0, a new version of its industry-leading no-code workflow design product, to help organizations more effectively navigate and overcome supply chain disruptions.Amid ongoing globalization challenges, record inflation, and a looming recession, procurement teams need speed and flexibility to adapt to market changes. Studio 2.0 equips businesses with exactly that – enabling procurement to rapidly onboard new suppliers, optimize compliance, and manage risk in a more flexible manner, without any IT bottlenecks. “The COVID-19 pandemic and war between Russia and Ukraine have proven that interconnectedness comes with great vulnerability. Governments are requiring greater hygiene with rules and regulations that make international business relations harder than ever. As a result, companies are confronted with compliance challenges and are quickly reorganizing their supply chains, Certa enables businesses to overcome today’s market complexity and manage the entire supplier lifecycle at scale – from quickly onboarding and ensuring compliance, to continuously monitoring risk and ESG rankings. Throughout the global chaos, we’ve seen too many businesses playing catch up because IT couldn't respond to their needs fast enough. Studio 2.0 solves this problem by enabling business users to quickly and easily change business processes and onboard new partners.” -Jag Lamba, founder, and CEO of Certa According to recent research from Forrester, 87 percent of procurement decision-makers recognize the importance of accelerating their response to the ever-changing market. However, as procurement teams tackle the reorganization of supply chains, the burden of onboarding, managing compliance, and mitigating risk is heavier than ever. Supplier onboarding and partner management have become an organization’s first line of defense against growing security concerns, new regulations, and volatile consumer demands. Certa is a lifeline for businesses that need to quickly partner with new suppliers in the wake of global changes, regulations, and skyrocketing costs. Certa’s enhanced capabilities with this new release empower businesses to easily manage compliance through a constantly evolving supplier landscape, all while mitigating the inherent risk that comes along with market fluctuation and volatility. In a time where trusted partners have never been more critical, Certa’s Studio 2.0 allows businesses to be more agile and informed than ever before. Certa’s Studio 2.0 is the next generation of Certa’s no-code platform, allowing users greater flexibility with new modules, clear visibility into process dependencies, and a more responsive, drag-and-drop interface that all business users can navigate to significantly reduce the timeline and level of effort required to create a customized solution.Certa Studio 2.0 is now available to new and current customers. To learn more, please visit: getcerta.com For more information, visit www.getcerta.com. Follow Certa on Twitter and LinkedIn to stay up to date. ABOUT CERTA: Based in the San Francisco Bay Area, Certa is a leading no-code supplier lifecycle management platform, eliminating onboarding bottlenecks, and empowering companies to easily do business with good companies. Founded in 2015, Certa uses more than 100+ integrations with trusted data sources and systems to automate and orchestrate workflows, allowing for 3x quicker third-party vendor onboarding while minimizing risk and increasing transparency. Certa has onboarded over a million companies across 120 countries for clients that range from leading tech firms to Fortune 500 companies. Learn more at https://www.getcerta.com.

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