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Procurement in the Digital Age

Jean-Jacques Laffont, a French economist, defined Procurement as "the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process." Even though the core concept remains the same over decades, the reality is that in practice, procurement must evolve and adapt over time especially as technology advances around it.

Spotlight

IntegraCore

IntegraCore is a trusted logistics outsource partner. We provide procurement, order fulfillment, warehousing, product assembly and logistics for companies that need the flexibility to scale their business. Focus on what you do best, and let IntegraCore handle the rest. IntegraCore saves most companies up to 60% in operations costs.

OTHER ARTICLES
Supply Chain

Schneider Electric for suppliers

Article | May 22, 2023

At Schneider Electric, meeting our customers’ expectations is a key priority. As concern over COVID-19 (Novel Coronavirus) grows, we are monitoring developments to this situation globally, as well as following local health and government regulations, continually assessing and responding to changes. Our Business Continuity Plan (BCP) has been tested and implemented in geographies impacted. This plan includes health and safety, supply chain, lifecycle management services, and IT infrastructure. Schneider Electric operations meet the criteria of an essential critical infrastructure as defined by most governments. While we do not anticipate interruptions to our operations, local governments may require temporary containment measures. In these cases, we comply with local laws, and in most cases seek support from local authorities to maintain critical business operations as an essential business for our communities.

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Supply Chain

4 Ways of Using Advanced Analytics in Supply Chain Management

Article | May 26, 2023

The complexity of today’s supply chain has resulted in a highly fragmented supply chain ecosystem. Whether it is a global pandemic or an ongoing war, streamlining the moving parts in the supply chain management system is an immense feat in the current climate. The resulting shortage of materials, disruption of transportation, and delays have complicated the supply chain even further. Add to it the expectation to minimize expenses, optimize inventory, and enable quality and customer expectations, and stakeholders at every level of the supply chain are inundated with challenges. This is where using advanced analytics in supply chain can be a game changer for many manufacturers. It can help them gain a deeper insight into their operations and how the supply chain is moving. How Supply Chain Analytics Enriches Supply Chain Management A 360-degree view of the supply chain is crucial for supply chain leaders. A lack of insight can cause costly delays and avoidable disruptions. Obtaining complete visibility in supply chain management, on the other hand, can be difficult. The immense volume of data that many organizations have to deal with makes it difficult to gain proper insight. Supply chain analytics tools help in gaining a better sense of the aggregated data from different parts of the supply chain, such as procurement, ERP in supply chain management, warehousing management, shipping and logistics management, and many more. The more accurate the data is, the simpler it is to use advanced supply chain management analytics to forecast, predict, and plan better in order to maximize the supply chain’s capabilities. Optimizing the Supply Chain: 3 Ways to Do so with Analytics With the range of analytics applications in supply chain in use today, manufacturers have the opportunity to completely transform how to view, manage and strategize. Here are five data analytics supply chain tools to consider in the pursuit of optimization. Demand Forecasting Inventory management is at the heart of supply chain optimization. Not calibrating the inventory stock based on demand and supply for bestselling products and those that don’t move fast can cause either an overstocking or understocking problem. Either way, forecasting the right balance is difficult to achieve, but data analytics can make it simpler. The lack of the right products in stock can heavily impact the bottom line. According to a survey by Logility, 36% of supply chain experts consider inventory optimization the primary reason for adopting analytics. An integrated mapping of retail sales, inventory levels, and the flow of goods will lead to accurate demand forecasting. This data can empower organizations to: Strategize sales promotions Define product pricing Maximize budgets Predict accurate inventory levels Inventory management has a cascading effect on the supply chain, and advanced demand forecasting has helped many organizations achieve an optimum level of inventory for the right products. Predictive Warehousing Maintenance Machine Learning (ML), artificial intelligence (AI), and the Internet of Things (IoT) have been emerging technologies on the supply chain management landscape. By using a mix of these technologies, it is possible for manufacturers to deploy predictive maintenance in warehousing. Predictive maintenance is the process of assessing data generated from the past and in real-time to determine patterns and identify equipment failure and maintenance schedule before a breakdown occurs. This helps manufacturers to: Avoid heavy repair costs Plan spare part supply Slash downtime from equipment failure Eliminate production delays In addition to reducing production bottlenecks, predictive maintenance gives businesses the ability to manage their equipment and optimize their shelf-life. Warehousing Efficiency At the warehouse phase of the supply chain, analytics can help manage the supply chain in more than just one way. The warehouse workflow is just as crucial, as it facilitates a clear view of the condition of goods as well as the optimization of the warehouse space. In addition to warehouse space maximization, quality control is another challenge that warehousing management addresses. Supply chain analytics can enhance warehousing efficiency by: Ensuring the correct storage of goods based on their weight, fragility, and perishability Aligning with resource management like equipment, vehicles Identifying disruptions to storage before they occur One of the advantages of supply chain analytics is getting a deep insight into the warehouse’s operation so manufacturers can identify gaps and take steps to make it more efficient. Transportation Tracking Real-time analytics of transportation and logistics is a crucial piece in the puzzle of supply chain management. For example, the data generated in relation to fuel consumption, weather conditions, and even traffic patterns can help organizations boost their logistics and carrier management. It can help them to: Schedule deliveries Determine better routes Evaluate current routes Strategize their shipping schedule To Wrap it Up To put it simply, a deep insight into the supply chain, inventory management, and warehouse operations is a great way to ensure the supply chain is on track. Effective supply chain management software is an asset for an organization when it is able to leverage the insights and make well-informed strategies to further optimize the supply chain.

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Management

Transportation Technology: A Source Of Clarity For Supply Chains In Need

Article | June 21, 2023

Transportation has always been the cornerstone of the supply chain and arguably its most targeted area when something goes wrong with a shipment. Why is my package late? What is my load’s current location? What is the ETA for my order? These are the daily questions that come from warehouses, distribution centers, and their end consumers – and they’re being asked now more than ever. Answering these questions requires holistic visibility into your supply chain that can only be achieved with the right mix of transportation technology and data management.

Read More
Freight

How does demurrage, detention, and port charges work.?

Article | March 21, 2022

Even though there are distinct differences between demurrage, detention and port charges, many are still oblivious to these differences and there have been several questions on this blog relating to these charges. This article is about how demurrage, detention, and port charges work. International Trade and CostsWhen it comes to international trade, majority of the buyers and sellers use Incoterms to decide what each other’s responsibilities and liabilities are in terms of the business, especially related to costs. Generally, there is very little room to manoeuvre in terms of additional and unbudgeted costs incurred on the shipment and therefore in their own interest it is important that the buyers and sellers take necessary precautions to ensure that all known costs relating to the business are discussed and finalised before the shipment commences. There are many entities involved in the process of shipping a container from Point A to Point B, each with their own cost component, all of which have to be covered either by the seller or the buyer. Demurrage, detention and port charges are just some of these costs that may be applicable in a shipment. While some of the port charges are valid and unavoidable, demurrage, detention and some of the port charges (like port storage, early arrival, late arrival, amendment, shifting etc) are entirely avoidable if everyone in the chain follows the process that they need to follow. What are port charges? Port charges, as the name suggests are a set of charges levied by the port or terminal which the container passes through.In terms of container shipments, port charges may include but not limited to below : Terminal Handling Charge (THC) Is quite simply the charge levied by the port for the loading and discharging of a container from the ship.. THC differs from port to port, terminal to terminal around the world and is charged both by the load port and discharge port.If the cargo is transhipped anywhere along the route, then the transhipment port also charges this THC but that is paid by the shipping line directly to the port and this quantum is usually included in the ocean freight charged by the line. Early Arrival Charge A charge levied by some of the ports/terminals for a container that arrives in the terminal BEFORE the stacks into which it is to be taken has been opened.. Early arrival can happen due to various reasons like a container missed the stacks for the previous vessel narrowly, but since the container is packed, it needs to be taken to the port, The acceptance of containers prior to the stacks/gate open is at the discretion of the Port/Terminal Operator and on the circumstances surrounding the operation of the vessels. Late Arrival Charge A late arrival charge is a charge levied by the port for a container that arrives in the terminal AFTER the stacks into which it is to be taken has been closed.. This could be due to delays in documentation, packing delays, inspection, trucking delays and many other situations.The acceptance of containers after the closing of stacks/gate is at the discretion of the Port/Terminal Operator and on the circumstances surrounding the operation of the vessels and if the containers can be accepted without disrupting the schedule of the vessel and ports. Stuffing/Destuffing of Containers Some ports/terminals allow the stuffing (packing)/de-stuffing (unpacking) of the containers within the port area and charge customers based on the port tariff.This activity may happen at ports that provide CFS services and allow containers to be packed or unpacked in the port or due to some mistakes when the cargo was originally packed – say incompatible hazardous cargoes packed together.Depending on the port/terminal/country, the port charges may be charged directly to the customer (importer or exporter) or to the shipping line, who in turn will charge this to the customer. Of course, this is not the full list of port charges but these charges have been mentioned as it relates to the subject under discussion,Demurrage and DetentionWhile some of these port charges may be unavoidable, demurrage and detention charges on the other hand are avoidable charges, but in a lot of cases due to mishandling, miscommunication, misunderstandings and not following the proper protocols, these charges occur..When they do occur, these charges may create quite a financial impact on the whole business and sometimes these costs could be so prohibitive that some customers abandon their cargoes at the destination due to these costs. Although the most common market practice is to combine demurrage and detention, there are several cases where these are charged separately, and therefore it is important to know the difference between demurrage and detention.

Read More
Supply Chain

Complexities in Integrating Supply Chain Analytics from Data to Action

Article | May 22, 2023

At Schneider Electric, meeting our customers’ expectations is a key priority. As concern over COVID-19 (Novel Coronavirus) grows, we are monitoring developments to this situation globally, as well as following local health and government regulations, continually assessing and responding to changes. Our Business Continuity Plan (BCP) has been tested and implemented in geographies impacted. This plan includes health and safety, supply chain, lifecycle management services, and IT infrastructure. Schneider Electric operations meet the criteria of an essential critical infrastructure as defined by most governments. While we do not anticipate interruptions to our operations, local governments may require temporary containment measures. In these cases, we comply with local laws, and in most cases seek support from local authorities to maintain critical business operations as an essential business for our communities.

Read More
Supply Chain

Top 15 Supply Chain Events to Attend in 2023

Article | May 26, 2023

The complexity of today’s supply chain has resulted in a highly fragmented supply chain ecosystem. Whether it is a global pandemic or an ongoing war, streamlining the moving parts in the supply chain management system is an immense feat in the current climate. The resulting shortage of materials, disruption of transportation, and delays have complicated the supply chain even further. Add to it the expectation to minimize expenses, optimize inventory, and enable quality and customer expectations, and stakeholders at every level of the supply chain are inundated with challenges. This is where using advanced analytics in supply chain can be a game changer for many manufacturers. It can help them gain a deeper insight into their operations and how the supply chain is moving. How Supply Chain Analytics Enriches Supply Chain Management A 360-degree view of the supply chain is crucial for supply chain leaders. A lack of insight can cause costly delays and avoidable disruptions. Obtaining complete visibility in supply chain management, on the other hand, can be difficult. The immense volume of data that many organizations have to deal with makes it difficult to gain proper insight. Supply chain analytics tools help in gaining a better sense of the aggregated data from different parts of the supply chain, such as procurement, ERP in supply chain management, warehousing management, shipping and logistics management, and many more. The more accurate the data is, the simpler it is to use advanced supply chain management analytics to forecast, predict, and plan better in order to maximize the supply chain’s capabilities. Optimizing the Supply Chain: 3 Ways to Do so with Analytics With the range of analytics applications in supply chain in use today, manufacturers have the opportunity to completely transform how to view, manage and strategize. Here are five data analytics supply chain tools to consider in the pursuit of optimization. Demand Forecasting Inventory management is at the heart of supply chain optimization. Not calibrating the inventory stock based on demand and supply for bestselling products and those that don’t move fast can cause either an overstocking or understocking problem. Either way, forecasting the right balance is difficult to achieve, but data analytics can make it simpler. The lack of the right products in stock can heavily impact the bottom line. According to a survey by Logility, 36% of supply chain experts consider inventory optimization the primary reason for adopting analytics. An integrated mapping of retail sales, inventory levels, and the flow of goods will lead to accurate demand forecasting. This data can empower organizations to: Strategize sales promotions Define product pricing Maximize budgets Predict accurate inventory levels Inventory management has a cascading effect on the supply chain, and advanced demand forecasting has helped many organizations achieve an optimum level of inventory for the right products. Predictive Warehousing Maintenance Machine Learning (ML), artificial intelligence (AI), and the Internet of Things (IoT) have been emerging technologies on the supply chain management landscape. By using a mix of these technologies, it is possible for manufacturers to deploy predictive maintenance in warehousing. Predictive maintenance is the process of assessing data generated from the past and in real-time to determine patterns and identify equipment failure and maintenance schedule before a breakdown occurs. This helps manufacturers to: Avoid heavy repair costs Plan spare part supply Slash downtime from equipment failure Eliminate production delays In addition to reducing production bottlenecks, predictive maintenance gives businesses the ability to manage their equipment and optimize their shelf-life. Warehousing Efficiency At the warehouse phase of the supply chain, analytics can help manage the supply chain in more than just one way. The warehouse workflow is just as crucial, as it facilitates a clear view of the condition of goods as well as the optimization of the warehouse space. In addition to warehouse space maximization, quality control is another challenge that warehousing management addresses. Supply chain analytics can enhance warehousing efficiency by: Ensuring the correct storage of goods based on their weight, fragility, and perishability Aligning with resource management like equipment, vehicles Identifying disruptions to storage before they occur One of the advantages of supply chain analytics is getting a deep insight into the warehouse’s operation so manufacturers can identify gaps and take steps to make it more efficient. Transportation Tracking Real-time analytics of transportation and logistics is a crucial piece in the puzzle of supply chain management. For example, the data generated in relation to fuel consumption, weather conditions, and even traffic patterns can help organizations boost their logistics and carrier management. It can help them to: Schedule deliveries Determine better routes Evaluate current routes Strategize their shipping schedule To Wrap it Up To put it simply, a deep insight into the supply chain, inventory management, and warehouse operations is a great way to ensure the supply chain is on track. Effective supply chain management software is an asset for an organization when it is able to leverage the insights and make well-informed strategies to further optimize the supply chain.

Read More
Management

7 Best Practices for Multi-Channel Inventory Management

Article | June 21, 2023

Transportation has always been the cornerstone of the supply chain and arguably its most targeted area when something goes wrong with a shipment. Why is my package late? What is my load’s current location? What is the ETA for my order? These are the daily questions that come from warehouses, distribution centers, and their end consumers – and they’re being asked now more than ever. Answering these questions requires holistic visibility into your supply chain that can only be achieved with the right mix of transportation technology and data management.

Read More
Freight

How does demurrage, detention, and port charges work.?

Article | March 21, 2022

Even though there are distinct differences between demurrage, detention and port charges, many are still oblivious to these differences and there have been several questions on this blog relating to these charges. This article is about how demurrage, detention, and port charges work. International Trade and CostsWhen it comes to international trade, majority of the buyers and sellers use Incoterms to decide what each other’s responsibilities and liabilities are in terms of the business, especially related to costs. Generally, there is very little room to manoeuvre in terms of additional and unbudgeted costs incurred on the shipment and therefore in their own interest it is important that the buyers and sellers take necessary precautions to ensure that all known costs relating to the business are discussed and finalised before the shipment commences. There are many entities involved in the process of shipping a container from Point A to Point B, each with their own cost component, all of which have to be covered either by the seller or the buyer. Demurrage, detention and port charges are just some of these costs that may be applicable in a shipment. While some of the port charges are valid and unavoidable, demurrage, detention and some of the port charges (like port storage, early arrival, late arrival, amendment, shifting etc) are entirely avoidable if everyone in the chain follows the process that they need to follow. What are port charges? Port charges, as the name suggests are a set of charges levied by the port or terminal which the container passes through.In terms of container shipments, port charges may include but not limited to below : Terminal Handling Charge (THC) Is quite simply the charge levied by the port for the loading and discharging of a container from the ship.. THC differs from port to port, terminal to terminal around the world and is charged both by the load port and discharge port.If the cargo is transhipped anywhere along the route, then the transhipment port also charges this THC but that is paid by the shipping line directly to the port and this quantum is usually included in the ocean freight charged by the line. Early Arrival Charge A charge levied by some of the ports/terminals for a container that arrives in the terminal BEFORE the stacks into which it is to be taken has been opened.. Early arrival can happen due to various reasons like a container missed the stacks for the previous vessel narrowly, but since the container is packed, it needs to be taken to the port, The acceptance of containers prior to the stacks/gate open is at the discretion of the Port/Terminal Operator and on the circumstances surrounding the operation of the vessels. Late Arrival Charge A late arrival charge is a charge levied by the port for a container that arrives in the terminal AFTER the stacks into which it is to be taken has been closed.. This could be due to delays in documentation, packing delays, inspection, trucking delays and many other situations.The acceptance of containers after the closing of stacks/gate is at the discretion of the Port/Terminal Operator and on the circumstances surrounding the operation of the vessels and if the containers can be accepted without disrupting the schedule of the vessel and ports. Stuffing/Destuffing of Containers Some ports/terminals allow the stuffing (packing)/de-stuffing (unpacking) of the containers within the port area and charge customers based on the port tariff.This activity may happen at ports that provide CFS services and allow containers to be packed or unpacked in the port or due to some mistakes when the cargo was originally packed – say incompatible hazardous cargoes packed together.Depending on the port/terminal/country, the port charges may be charged directly to the customer (importer or exporter) or to the shipping line, who in turn will charge this to the customer. Of course, this is not the full list of port charges but these charges have been mentioned as it relates to the subject under discussion,Demurrage and DetentionWhile some of these port charges may be unavoidable, demurrage and detention charges on the other hand are avoidable charges, but in a lot of cases due to mishandling, miscommunication, misunderstandings and not following the proper protocols, these charges occur..When they do occur, these charges may create quite a financial impact on the whole business and sometimes these costs could be so prohibitive that some customers abandon their cargoes at the destination due to these costs. Although the most common market practice is to combine demurrage and detention, there are several cases where these are charged separately, and therefore it is important to know the difference between demurrage and detention.

Read More
MORE ARTICLES

Spotlight

IntegraCore

IntegraCore is a trusted logistics outsource partner. We provide procurement, order fulfillment, warehousing, product assembly and logistics for companies that need the flexibility to scale their business. Focus on what you do best, and let IntegraCore handle the rest. IntegraCore saves most companies up to 60% in operations costs.

Related News

Logistics, Supply Chain, Transportation

AIT Worldwide Logistics Acquires Global Transport Solutions Group

Business Wire | February 05, 2024

AIT Worldwide Logistics, one of the world’s leaders in global supply chain solutions, has acquired Global Transport Solutions Group (GTS), a prominent international freight forwarder specializing in time-critical marine spare parts logistics. Headquartered in the Netherlands, GTS and its more than 600 teammates across 16 locations in Asia, Europe, the Middle East and North America, serve over 2,000 ports around the world. The GTS network also includes nine consolidation hubs totaling more than 45,000 square meters of warehouse space. AIT Chairman and Chief Executive Officer, Vaughn Moore, said, “I’d like to welcome our new GTS teammates to the global AIT network. This is the largest acquisition in our company’s history and GTS’ marine spare parts business is an excellent complement to AIT’s time-critical supply chain solutions.” The company’s business is divided into two sub-brands: Marinetrans (founded in 1991), excelling in “door-to-deck” spare parts logistics for ship owners and managers, and Best Global Logistics (founded in 2007), providing time-critical solutions and general forwarding for other industries, including life sciences shippers. According to AIT’s Chief Business Officer, Greg Weigel, the acquisition provides the company with new geographic presence in Greece, Japan and the Nordic region while adding significant capacity and subject matter expertise to existing AIT networks in China, the Netherlands and Singapore. The deal also provides a strong foundation to expand GTS’ world-class marine spare parts solutions via AIT’s expansive global freight network. “The acquisition of GTS creates an incredible portfolio of solutions serving the maritime industry with delivery of time-critical spare parts across all geographies. This is a perfect complement to AIT’s vertical strategies focused on expedited mission-critical services like our Critical Solutions Group, government and AOG team, and Life Sciences Division,” Weigel said. “We plan to rapidly invest and expand GTS’ North American operations by capitalizing on AIT’s robust salesforce in the United States and offering maritime customers a world-class spare parts logistics solution in every port.” AIT President and Chief Operating Officer, Keith Tholan, noted that the GTS core values – customer first, operational excellence, and partnership and collaboration – closely mirror AIT’s core values. “We are delighted to welcome GTS teammates to AIT,” Tholan said. “Their deep marine logistics expertise and three decades of proven on-time performance in a very demanding segment will complement the diverse solutions we offer across our vertical sector strategy. We also expect our best-in-class global air freight procurement will instantly benefit their time-critical operations.” According to GTS co-CEO John Burgstra, the acquisition is an opportunity for GTS to further expand their worldwide operations. “We aim to provide our clients an unrivaled experience when it comes to global visibility, transparency and on-time performance, fully unburdening them of the required logistical handling of their vessels’ spare parts,” he said. “We are excited about becoming part of a larger group and the global development opportunities this acquisition will provide for our teammates.” “Because of the highly fragmented and international nature of our clients’ requirements, they need a trusted partner with a vetted and effective global network,” added GTS co-CEO Vegard Prytz. “GTS will gain enormous benefits from leveraging the global AIT infrastructure, creating an even more integrated and seamless solution for clients around the world.”

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Logistics, Operations, Supply Chain

Metro Supply Chain Acquires SCI Group

PR Newswire | January 10, 2024

Metro Supply Chain Inc. ("Metro Supply Chain"), a strategic supply chain solutions partner to some of the world's fastest growing and most reputable organizations, is pleased to announce that it has entered into an agreement to acquire SCI Group Inc. ("SCI"), a leading Canadian third-party logistics (3PL) company, from Canada Post Corporation ("Canada Post") and Purolator Holdings Ltd. This transformational transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals. "We are thrilled about the prospect of acquiring SCI," said Chiko Nanji, Metro Supply Chain Founder and Group Chairman. "There is an excellent strategic fit between SCI and our existing operations and culture, and we are excited about the future as a combined entity. This acquisition will strengthen our position as a true champion in strategic contract logistics services." The combined entity, with deep Canadian roots and a shared focus on customers, will be ideally positioned to compete in the global supply chain sector. "The strategic alignment between Metro Supply Chain and SCI is strong. We look forward to leveraging our complementary strengths and shared emphasis on operational excellence to generate growth for clients in multiple sectors, including technology and healthcare, and expand our e–commerce offering," said Metro Supply Chain President and Chief Executive Officer Chris Fenton. "The addition of SCI to the Metro Supply Chain group will offer opportunities to enhance our expansion efforts south of the border." Headquartered in Québec, with significant regional support offices in the Greater Toronto Area and operations across Canada, the United States and United Kingdom, the combined entity will create a diversified supply chain solutions provider. Metro Supply Chain is highly engaged and committed to its people and the communities in which it operates. It is mindful of its social, economic and environmental impact and seeks ways to work more sustainably and create a positive impact on the planet, customers, teams and communities. Chris Galindo, President and CEO of SCI, will remain with the combined entity, ensuring the continuity of SCI's commitment to excellence. "There is a strong strategic alignment between Metro Supply Chain and SCI, from our strong people–first cultures to our focus on innovation, best-in-class systems, and contractual business models and complementary technology, client and vertical mix," explained Galindo. Metro Supply Chain is grateful to its existing and new financial partners, LDC Logistics Holdings Inc., CDPQ, Investissement Québec, and the National Bank of Canada, for their support in this transaction and the future growth of the combined entity. "With this 10th acquisition by Metro Supply Chain since it began working with CDPQ in 2018, the company is actively pursuing its strategic development plan," said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. "We are proud to support the company in its efforts to strengthen its position as a Canadian leader, accelerate growth projects and expand activities, particularly in the United States and the United Kingdom." To support its global strategic vision, Metro Supply Chain has concluded an agreement with the Government of Québec through Investissement Québec, for an investment by way of a private placement in Metro Supply Chain. "To ensure the economic and sustainable development of Québec, it is essential that we be able to rely on Québec companies and robust supply chains. With this investment in Metro Supply Chain, we are helping a Québec company to become an international leader in the logistics sector," stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region. "This transaction aligns with Investissement Québec's mission to create a logistics champion and support its geographic expansion outside Québec. Metro Supply Chain is setting an example by making a significant investment to improve its productivity by automating its warehouses. The Covid-19 pandemic highlighted the importance of supply chains, which are an essential link in the Québec economy," said Guy LeBlanc, President and CEO of Investissement Québec. "Metro Supply Chain welcomes Investissement Québec as one of its new strategic partners and is very pleased to be able to count on the continued support of LDC Logistics Holdings Inc., CDPQ, the National Bank of Canada, as we pursue our global growth ambitions," stated Metro Supply Chain CFO Mathieu Descheneaux. "This strategic investment enables us to acquire high–quality companies like SCI to expand the range and depth of supply chain solutions we can offer." Together, Metro Supply Chain and SCI anticipate a bright future, delivering innovative supply chain solutions that meet the most challenging needs of their customers.

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Freight, Supply Chain

Kuehne+Nagel pioneers carbon insetting for electric trucks to accelerate fleet electrification

Kuehne+Nagel | January 08, 2024

The new year starts with electrifying news as Kuehne+Nagel announces its Book & Claim insetting solution for electric vehicles. This makes Kuehne+Nagel the first logistics service provider to launch this solution, which previously was limited to low-emission fuels. Implementing decarbonisation solutions and helping customers achieve their sustainability goals is a key component of Kuehne+Nagel’s Roadmap 2026 Living ESG cornerstone. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne+Nagel. Last October, it launched an insetting solution for HVO—now followed by electric vehicles. The first-of-its-kind solution has been tested and validated in cooperation with leading external stakeholders. Customers who use Kuehne+Nagel’s road transport services can now ‘claim’ the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles. Reasons for that could be insufficient charging infrastructure or a limited driving range and payload. The solution helps to bridge those challenges which today still limit the deployment of electric trucks. “We see battery-Electric Vehicles (BEVs) as the future to reduce emissions in road freight. Carbon insetting supports the scale-up of low-emission solutions like BEVs and helps to reduce the premium that customers pay for these solutions, thereby supporting the decarbonisation of road transport,” says Hansjörg Rodi, Member of the Management Board at Kuehne+Nagel International AG, responsible for Road Logistics. For now, only Kuehne+Nagel’s owned BEVs are part of the Book & Claim offer to keep full control and transparency over the accuracy of the data that is used in the calculations. However, the team aims to expand the solution to BEVs operated by its partners so that it can support them in their fleet electrification journeys too. “Purchasing electric trucks can be a heavy financial burden, especially for smaller carriers. Including carriers in our solution requires further complex developments in the accounting methodology, but it would help them to finance their transition. This is our next priority,” concludes Rodi.

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Logistics, Supply Chain, Transportation

AIT Worldwide Logistics Acquires Global Transport Solutions Group

Business Wire | February 05, 2024

AIT Worldwide Logistics, one of the world’s leaders in global supply chain solutions, has acquired Global Transport Solutions Group (GTS), a prominent international freight forwarder specializing in time-critical marine spare parts logistics. Headquartered in the Netherlands, GTS and its more than 600 teammates across 16 locations in Asia, Europe, the Middle East and North America, serve over 2,000 ports around the world. The GTS network also includes nine consolidation hubs totaling more than 45,000 square meters of warehouse space. AIT Chairman and Chief Executive Officer, Vaughn Moore, said, “I’d like to welcome our new GTS teammates to the global AIT network. This is the largest acquisition in our company’s history and GTS’ marine spare parts business is an excellent complement to AIT’s time-critical supply chain solutions.” The company’s business is divided into two sub-brands: Marinetrans (founded in 1991), excelling in “door-to-deck” spare parts logistics for ship owners and managers, and Best Global Logistics (founded in 2007), providing time-critical solutions and general forwarding for other industries, including life sciences shippers. According to AIT’s Chief Business Officer, Greg Weigel, the acquisition provides the company with new geographic presence in Greece, Japan and the Nordic region while adding significant capacity and subject matter expertise to existing AIT networks in China, the Netherlands and Singapore. The deal also provides a strong foundation to expand GTS’ world-class marine spare parts solutions via AIT’s expansive global freight network. “The acquisition of GTS creates an incredible portfolio of solutions serving the maritime industry with delivery of time-critical spare parts across all geographies. This is a perfect complement to AIT’s vertical strategies focused on expedited mission-critical services like our Critical Solutions Group, government and AOG team, and Life Sciences Division,” Weigel said. “We plan to rapidly invest and expand GTS’ North American operations by capitalizing on AIT’s robust salesforce in the United States and offering maritime customers a world-class spare parts logistics solution in every port.” AIT President and Chief Operating Officer, Keith Tholan, noted that the GTS core values – customer first, operational excellence, and partnership and collaboration – closely mirror AIT’s core values. “We are delighted to welcome GTS teammates to AIT,” Tholan said. “Their deep marine logistics expertise and three decades of proven on-time performance in a very demanding segment will complement the diverse solutions we offer across our vertical sector strategy. We also expect our best-in-class global air freight procurement will instantly benefit their time-critical operations.” According to GTS co-CEO John Burgstra, the acquisition is an opportunity for GTS to further expand their worldwide operations. “We aim to provide our clients an unrivaled experience when it comes to global visibility, transparency and on-time performance, fully unburdening them of the required logistical handling of their vessels’ spare parts,” he said. “We are excited about becoming part of a larger group and the global development opportunities this acquisition will provide for our teammates.” “Because of the highly fragmented and international nature of our clients’ requirements, they need a trusted partner with a vetted and effective global network,” added GTS co-CEO Vegard Prytz. “GTS will gain enormous benefits from leveraging the global AIT infrastructure, creating an even more integrated and seamless solution for clients around the world.”

Read More

Logistics, Operations, Supply Chain

Metro Supply Chain Acquires SCI Group

PR Newswire | January 10, 2024

Metro Supply Chain Inc. ("Metro Supply Chain"), a strategic supply chain solutions partner to some of the world's fastest growing and most reputable organizations, is pleased to announce that it has entered into an agreement to acquire SCI Group Inc. ("SCI"), a leading Canadian third-party logistics (3PL) company, from Canada Post Corporation ("Canada Post") and Purolator Holdings Ltd. This transformational transaction is expected to close in the first quarter of 2024, subject to customary closing conditions, including the receipt of regulatory approvals. "We are thrilled about the prospect of acquiring SCI," said Chiko Nanji, Metro Supply Chain Founder and Group Chairman. "There is an excellent strategic fit between SCI and our existing operations and culture, and we are excited about the future as a combined entity. This acquisition will strengthen our position as a true champion in strategic contract logistics services." The combined entity, with deep Canadian roots and a shared focus on customers, will be ideally positioned to compete in the global supply chain sector. "The strategic alignment between Metro Supply Chain and SCI is strong. We look forward to leveraging our complementary strengths and shared emphasis on operational excellence to generate growth for clients in multiple sectors, including technology and healthcare, and expand our e–commerce offering," said Metro Supply Chain President and Chief Executive Officer Chris Fenton. "The addition of SCI to the Metro Supply Chain group will offer opportunities to enhance our expansion efforts south of the border." Headquartered in Québec, with significant regional support offices in the Greater Toronto Area and operations across Canada, the United States and United Kingdom, the combined entity will create a diversified supply chain solutions provider. Metro Supply Chain is highly engaged and committed to its people and the communities in which it operates. It is mindful of its social, economic and environmental impact and seeks ways to work more sustainably and create a positive impact on the planet, customers, teams and communities. Chris Galindo, President and CEO of SCI, will remain with the combined entity, ensuring the continuity of SCI's commitment to excellence. "There is a strong strategic alignment between Metro Supply Chain and SCI, from our strong people–first cultures to our focus on innovation, best-in-class systems, and contractual business models and complementary technology, client and vertical mix," explained Galindo. Metro Supply Chain is grateful to its existing and new financial partners, LDC Logistics Holdings Inc., CDPQ, Investissement Québec, and the National Bank of Canada, for their support in this transaction and the future growth of the combined entity. "With this 10th acquisition by Metro Supply Chain since it began working with CDPQ in 2018, the company is actively pursuing its strategic development plan," said Kim Thomassin, Executive Vice-President and Head of Québec at CDPQ. "We are proud to support the company in its efforts to strengthen its position as a Canadian leader, accelerate growth projects and expand activities, particularly in the United States and the United Kingdom." To support its global strategic vision, Metro Supply Chain has concluded an agreement with the Government of Québec through Investissement Québec, for an investment by way of a private placement in Metro Supply Chain. "To ensure the economic and sustainable development of Québec, it is essential that we be able to rely on Québec companies and robust supply chains. With this investment in Metro Supply Chain, we are helping a Québec company to become an international leader in the logistics sector," stated Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister Responsible for Regional Economic Development and Minister Responsible for the Metropolis and the Montréal Region. "This transaction aligns with Investissement Québec's mission to create a logistics champion and support its geographic expansion outside Québec. Metro Supply Chain is setting an example by making a significant investment to improve its productivity by automating its warehouses. The Covid-19 pandemic highlighted the importance of supply chains, which are an essential link in the Québec economy," said Guy LeBlanc, President and CEO of Investissement Québec. "Metro Supply Chain welcomes Investissement Québec as one of its new strategic partners and is very pleased to be able to count on the continued support of LDC Logistics Holdings Inc., CDPQ, the National Bank of Canada, as we pursue our global growth ambitions," stated Metro Supply Chain CFO Mathieu Descheneaux. "This strategic investment enables us to acquire high–quality companies like SCI to expand the range and depth of supply chain solutions we can offer." Together, Metro Supply Chain and SCI anticipate a bright future, delivering innovative supply chain solutions that meet the most challenging needs of their customers.

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Freight, Supply Chain

Kuehne+Nagel pioneers carbon insetting for electric trucks to accelerate fleet electrification

Kuehne+Nagel | January 08, 2024

The new year starts with electrifying news as Kuehne+Nagel announces its Book & Claim insetting solution for electric vehicles. This makes Kuehne+Nagel the first logistics service provider to launch this solution, which previously was limited to low-emission fuels. Implementing decarbonisation solutions and helping customers achieve their sustainability goals is a key component of Kuehne+Nagel’s Roadmap 2026 Living ESG cornerstone. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne+Nagel. Last October, it launched an insetting solution for HVO—now followed by electric vehicles. The first-of-its-kind solution has been tested and validated in cooperation with leading external stakeholders. Customers who use Kuehne+Nagel’s road transport services can now ‘claim’ the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles. Reasons for that could be insufficient charging infrastructure or a limited driving range and payload. The solution helps to bridge those challenges which today still limit the deployment of electric trucks. “We see battery-Electric Vehicles (BEVs) as the future to reduce emissions in road freight. Carbon insetting supports the scale-up of low-emission solutions like BEVs and helps to reduce the premium that customers pay for these solutions, thereby supporting the decarbonisation of road transport,” says Hansjörg Rodi, Member of the Management Board at Kuehne+Nagel International AG, responsible for Road Logistics. For now, only Kuehne+Nagel’s owned BEVs are part of the Book & Claim offer to keep full control and transparency over the accuracy of the data that is used in the calculations. However, the team aims to expand the solution to BEVs operated by its partners so that it can support them in their fleet electrification journeys too. “Purchasing electric trucks can be a heavy financial burden, especially for smaller carriers. Including carriers in our solution requires further complex developments in the accounting methodology, but it would help them to finance their transition. This is our next priority,” concludes Rodi.

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