@Risk

The International Telecommunication Union estimates that 90 percent of the global population is now covered by a 2G mobile cellular network. (Half that, or 45 percent, is covered by 3G.)

But, of course, that global population is on land. If you’re out on the open seas, it’s a different story.  Not surprisingly, the oceans are the last “white spot” for the mobile communication industry to connect.

Earlier this month, Maersk Line, the largest shipping company in the world, announced that it is taking steps to change all that.  The company has appointed Ericsson to introduce end-to-end systems integration and deployment of mobile and satellite communication to the entire Maersk Line fleet.

More specifically, over the next two years Maersk Line will outfit 400 of its 500+ container vessels with Ericsson antennas and GSM base stations. Upgrades to the remaining vessels will be made soon after.

It’s an important step, because as Ericsson points out, mobile communication provides opportunities for the shipping industry to upgrade several essential processes.  For example, until now, Maersk Line’s high-tech modern container ships have been equipped with satellite connectivity primarily intended to support communication for vital shipboard functions.  But Ericsson says its new integrated maritime mobile and very-small-aperture terminal (VSAT) satellite solution will allow Maersk Line to better address: (more…)

Despite concerns about economic recovery in the Eurozone, three-fourths of top European banks still believe growth prospects for supply chain finance remain “strong” or “very strong,” according to Demica’s latest research report on the supply chain finance market.

The research, which involved the top 40 European banks, showed that respondents:

• anticipate annual supply chain finance growth rates between 10 percent and 30 percent per annum in mature markets, and 20-25 percent in emerging markets where the need for financing is particularly pressing to help cope with rapid expansion.

• believe growth over the next few years will primarily be driven by developed economies such as the US and Europe, along with larger emerging economies including China and India.

In addition, survey respondents identified working capital optimization and reduction of supply chain risk as the primary drivers for establishing SCF programs in mature markets.  In emerging economies, access to liquidity and enabling suppliers to keep pace with buyers’ growth are the key motivations.

Significant challenges remain, however. For example, respondents said that, especially in emerging markets, legal and jurisdictional issues and access to technology platforms require further work to accelerate supply chain finance growth. (more…)

More new research indicates that global companies are setting their sights on growth and global expansion.

As I pointed out last week, nearly all (95 percent) of the CFOs polled in BDO’s annual Global Ambition Survey said they are optimistic about their global expansion plans.

Now, a new report from KPMG concludes that global manufacturers have made top-line growth their number one priority in the next two years, despite persistent economic volatility and uncertain demand.

KPMG surveyed 220 manufacturing executives from global companies with at least $1 billion in revenue and found that: (more…)

Even though the possibility of a double-dip recession is beginning to loom large, most shippers who took a recent Logistics Management readership survey appear to be adopting a “wait and see” attitude, rather than rushing to  significantly change the way they handle their supply chains or logistics operations.

Take a look at these poll results:

• 78 percent of the 339 survey respondents said they are concerned that the economy is on the verge of a double-dip recession.
• However, only 37 percent said that they plan on making changes to their supply chain operations or logistics planning processes. The remaining 63 percent indicated they have no such plans.

Among those who said they would make changes to their supply chains, the options being considered were quite varied. Some reported they may reduce inventory. Others said they may slow down manufacturing or production operations while waiting for a more sustained recovery. A sporting goods shipper said he/she would consider numerous alternatives, including evaluating supplier capacity, improving delivery time frame (particularly for international suppliers), reviewing internal procedures, adhering strictly to S&OP calendar and assessing systems used.

On the logistics side, survey respondents who are considering changes said they may: (more…)

As we have seen across other sectors, the consumer packaged goods (CPG) industry is now in recovery mode, with companies focused on growth and opportunities for global expansion to enhance both their top and bottom lines.

But, new research shows that CPG companies will sorely miss one newly critical capability as they expand to places like China and other emerging markets. Which critical capability is lacking in developing economies?

Digital technology.

Thriving in a Connected World, an intriguing new report from the Grocery Manufacturers Association (GMA) and PwC US, points out that today’s CPG companies have become quite savvy at leveraging digital innovation to optimize service to consumers and trading partners.

For instance, the report suggests that mobile devices have improved workforce productivity in three specific areas: (more…)