Earthblog

In an effort to expand it’s global retail reach, Japanese e-commerce company, Rakuten announced the acquisition of a leading online U.S. retailer, Buy.com . The $250 million dollar buyout would put Rakuten in position as the world’s largest online retail marketplace. Combined, both companies would bring 35,000 global merchants and offer consumers over 60 million products. The acquisition will be handled by Rakuten USA (based in Boston), the U.S. subsidiary of Ratuken.

To date, Rakuten, in the Asian market, tops Amazon Japan’s sales and boasts 64 million members and $3.2 billion in sales. This isn’t the first move that Rakuten has made to further reach the American market. Five years ago, the Japanese online retailer acquired Linkshare, a New York-based advertising network for a whopping $425 million.  Rakuten CEO Hiroshi Mikitani views this Buy.com acquisition as an opportunity to truly expand into the U.S. e-retail market and would allow sellers and buyers to connect no matter where they are located.

Here is a glance at both companies as they stand before the deal is completed next month.

Company: Rakuten, Inc.

Founded: February 7, 1997

Based in Tokyo, Japan

Website: rakuten.co.jp

Rakuten, Inc. is currently ranked as the 5th most popular site in Japan for online shopping and has over 28,000 merchants and 35 million different products.

Company: Buy.com

Founded: 1997

Based in Aliso Viejo, California, U.S.

Acquired by Rakuten, Inc. on May 20, 2010, for $250 million dollars.

Buy.com brings more than 12 million customers with a focus on entertainment and technology retail. Part of the dot-com boom from the late 1990s.

Tags: ecommerce | shopping | online | georgia | import | export

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On April 20, 2010, an explosion occurred on a BP drilling rig causing 11 deaths. As of today, the leak, located in the Gulf of Mexico continues to reek havoc on our natural resources and could potentially threaten shipping, production and natural gas in Alabama, Louisiana and Mississippi. Industry experts are nervous about the spill spreading west towards New Orleans, which will obstruct ships entering and leaving the Mississippi River-the largest waterway for U.S. commodity ships.

The logistics industry could feel the impact and additional risks associated with this disaster. Ships moving cargo through this major port face the dangers of tracking oil and potentially impeding clean-up efforts, says one BP official.

The danger of fire is always imminent when oil slicks are present in the water. The slicks could also give off toxic fumes, which would put workers in danger.  So far, two gas platforms and one drilling rig has been evacuated.

The leaks, which are located 5,000 feet from the surface of the water are currently spewing approximately 210,000 gallons per day, according to an earlier estimate by The National Oceanic and Atmospheric Administration. A staggering amount when compared to the Alaska Exxon Valdez disaster that occurred in June of 1989. So far, a more accurate estimate has not been established.

As of today, ship traffic has been not been affected, says a Port of New Orleans official. Two clean-up stations have been posted by The Coast Guard close to the Mississippi River for vessels that may encounter the spill. So far, the main channel to the river (The Southwest Pass) has not been affected by the spill and no commercial ships have had to use them.  The Mississippi River has anywhere from 5,000 to 6,000 ship calls annually.

BP (which is financially responsible for the clean-up) continues to seek ways to plug the leaks.    NOAA's website provides updates where you can track and view photos and videos of the Gulf of Mexico oil spill.

Tags: shipping | logistics | oil spill | import | export

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by Angela Cavallari Walker

In a new study titled: “E-Commerce Trends for 1010” conducted by FFP Global, found that online businesses and retailers are more likely to use regional fulfillment companies.  According to the latest study, the largest cited reason for this trend is the lower shipping costs and the faster turnaround in delivering these products to consumers.

Regional fulfillment companies such as Atlanta-based,  SBC Fulfillment are able to offer low-cost shipping charges while increasing their clients'''' operations.  SBC''s SmartTurn Warehouse Management System is an invaluable tool that allows fulfillment customers to order, ship and track those orders all online from anywhere. “In talking with our customers, we found that technology played a big role in providing the most comprehensive fulfillment process”, says SBC President Brian Schoenbaechler.  SBC''s 60,000 square feet of warehouse space is strategically located near Hartsfield-Jackson International Airport and the heart of Atlanta''s busiest industrial park.

FFP projects that our current economic situation will continue to pressure online retailers into meeting the demands of deal-seeking consumers and faster shipping windows.

The study also found that fuel costs were a big driver for retailers to seek regional fulfillment providers.  For e-commerce companies this solves two problems: reducing fuel surcharges and increasing delivery times.  Another fulfillment trend that will continue includes the ability to drop-ship directly from manufactures to retailers'' customers.

In order to effectively drop-ship, retailers need a comprehensive order management and customer contact system that can seamlessly communicate with suppliers.  "We work closely with our merchants to ensure the most accuracy," says Schoenbaechler.

Customer service and mobile commerce will continue to play a role as regional fulfillment companies strive to meet these challenges.

To learn more about SBC Fulfillment click here

Tags: export | fulfillment | e-commerce | shipping | georgia | trends | outsourcing | import

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Tags: fulfillment | distribution | atlanta | warehousing | import | export | outsourcing

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Annual logistics report shows Georgia as top shipping port in nation

Georgia''s shipping industry is a bright spot in a dark economy, says the Council of Supply Chain Management Professionals (CSCMP) in its annual report released this month.

The Port of Savannah was one of only three international ports to see gains and experienced the largest increase of TEUs of all top ten ports. The logistics industry uses twenty foot equivalent units or TEU''s-a term of measurement used in intermodal transport. Savannah''s port traffic increased its TEU volume by an impressive 3.65%.

According to Georgia Port Authority (GPA) over the next 10 years, Savannah''s container terminal will be adding more efficient equipment designed to move cargo at much higher speeds.  Additionally, the Savannah channel depth will rise from 42 to 48 feet to make room for larger ships carrying heavier loads of international cargo.

The CSCMP report found a decrease of over 11% in air freight volumes for Georgia, and 9.4% nationally. A major reason for this decrease can be blamed on a financially flopping economy and inflated fuel costs in 2008. International cargo was impacted slightly less than domestic freight. However, in May of 2009, Atlanta''s Hartsfield-Jackson received the coveted World Air Cargo Award for "Airport of the Year" - bragging rights for Georgia''s logistics industry.

Other promising factors for continued growth in Georgia include $932 million in highway stimulus funds, and the pressure to create more efficient ways of moving goods throughout the world.

Tags: supply chain | import | export | operations | warehousing | georgia

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Tags: outsourcing | import | fulfillment | operations | warehousing | sustainability

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The Peach State can expect the logistics business to keep on trucking, according to a new study. Independent research firm GrowthEconomics Inc. ranked Atlanta fifth among the largest logistics employers in the U.S., and outlined reasons for continued upward trending in Georgia this year. The state’s tremendous stretches of roadway, high-volume seaports and the world’s busiest airport are big factors for growth.

The 92-page report takes a look at Georgia’s 21,200 miles of highway that supports over one million trucks each week. Savannah''s container terminal shipped over 2,616 million tons of TEUs last year making it the third largest terminal in the nation. Atlanta’s Hartsfield-Jackson International Airport handles approximately 53,700 metric tons of cargo and more than 60,000 metric tons of mail on airliners and cargo aircraft operated by 19 different companies.

Atlanta-based logistics firm SBC Fulfillment, which provides warehousing, packaging, logistics, and fulfillment services to businesses, is poised to take advantage of new opportunities in Georgia. President and CEO of SBC, Brian Schoenbachler says, “I think that people are just now starting to think of Georgia as a larger center of logistics.” Schoenbacheler hopes that Savannah’s major international shipping port continues to play a key role in the support and expansion of Georgia’s logistics market and industry.

The videos of the presentations from the 2009 Georgia Annual Logistics Summit held on April 16^th are now available for viewing online.  The direct link to the videos is:

http://link.brightcove.com/services/player/bcpid21135945001

Each presenter is recorded separately so you may view any or all of the presentations in the order that you choose.  To access copies of the presentation slides as well

As the full logistics report go to: http://logistics.georgiainnovation.org/documents/list and select the folder “2009 Georgia Logistics Summit.”

Tags: supply chain | georgia | air freight | export | import

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ATLANTA–The Georgia Center of Innovation for Logistics introduced the first-ever statewide logistics industry report at a gathering of 400+ industry leaders in Midtown Atlanta. View the full Report. The report, titled 2009 Georgia Logistics Report: A Focus on Providers is the first comprehensive profile of Georgia’s logistics industry and was conducted by an independent research firm.

“Not only is logistics a priority for us, but it is also a key draw for foreign investment into our state,” remarked Kenneth Stewart, Commissioner, Georgia Department of Economic Development. “From our deepwater ports in Savannah to our busy Atlanta airport, the state of Georgia gives companies global reach.”

The logistics summit was held at TWELVE Atlantic Station from 11 a.m. to 1:30 p.m. on Thursday, April 16. Following an opening message from Governor Perdue, speakers included Curtis Foltz, chief operating officer of the Georgia Ports Authority; Dick Anderson, executive director, Georgia Regional Transportation Authority; Mark Holifield, senior vice president, global supply chain, Home Depot, Inc.; and Page Siplon, executive director, Georgia Center of Innovation for Logistics. “There are many moving parts in this ecosystem of companies we call the ‘logistics industry’. Georgia is focused on feeding this ecosystem with innovative tools and information, highlighting its success around the world, and showcasing its unique assets and advantages,” said Page Siplon, executive director of the Center of Innovation for Logistics. “This in turn attracts new jobs, investment and business opportunities. It’s a unique business development cycle of which GDEcD and the Center of Innovation for Logistics are proud to be a part.”

Key facts from the 2009 Georgia Logistics Report: A Focus on Providers:

• Georgia is ranked 5th in the nation for business process (logistics-related) patents issued.
• Georgia’s container terminal in Savannah is the 3rd largest in the nation, shipping over 2,616 million TEU’s in 2008.
• Each week, a combined 12 million tons of cargo moves on Georgia’s 21,000 miles of highways.
• The direct total value of output from logistics providers was $11.2B in 2007 dollars.

The 2009 Logistics Summit was presented in collaboration with the Georgia Motor Trucking, Georgia Railroad and Georgia Economic Developers Associations (GMTA, GRA, GEDA), the Savannah and Atlanta Maritime Associations, the Metro Atlanta Chamber Logistics Council and both the Savannah and Atlanta chapters of the Council of Supply Chain Management Professionals (CSCMP). A video of the 2009 Logistics Summit is available upon request.

The Center of Innovation for Logistics is Georgia’s leading resource for accelerating logistics growth and competitiveness in the state. The Center connects and works directly with all logistics sectors to identify common problems and innovative solutions. The result is a competitive edge for Georgia companies gained through access to applied university research, product commercialization and matching grant funds. ###

Link to 2009 Georgia Logistics Report

Tags: supply chain | warehousing | import | export

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This article today in the WSJ, titled "China Imports, Exports Tumble"

It appears China is next up on the global recession.  It just goes to show how interconnect our economies are today.  We truely have a global economy.  The world contines to get smaller and smaller.

"China's exports and imports both fell for the second consecutive month in December, with an accelerated contraction in trade offering a bleak outlook for the world's third-largest economy and highlighting the need for Beijing to rely more on potent fiscal stimuli.

The weak trade data, especially that of imports, showed China isn't just suffering from a global economic slowdown but also from a deterioration in local demand, an engine that the authorities have hoped would keep the economy going and unemployment in check."

Tags: import | export | supply chain

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1. Supply-chain risk mitigation 
2. Searching for working capital
3. Resurgence in letters of credit 
4. Shortening the supply chain
5. Improved speed and savings in Mexico 
6. More free-trade agreements — and more scrutiny
7. China clamps down on oversight
8. New import challenges:The amended Lacey Act
9. A global eye toward consumer product safety

Tags: supply chain | import | export

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