{"id":2089,"date":"2018-02-20T19:27:27","date_gmt":"2018-02-20T19:27:27","guid":{"rendered":"https:\/\/griit.org\/?p=2089"},"modified":"2024-01-29T14:20:23","modified_gmt":"2024-01-29T14:20:23","slug":"technological-advances-and-their-impact-on-logistics-a-conversation-with-bgi-worldwide-logistics","status":"publish","type":"post","link":"https:\/\/griit.org\/technological-advances-and-their-impact-on-logistics-a-conversation-with-bgi-worldwide-logistics\/","title":{"rendered":"Technological Advances and Their Impact on Logistics: A conversation with BGI Worldwide Logistics"},"content":{"rendered":"


\nGRIIT spoke with logistics experts from BGI Worldwide Logistics regarding the impact of automation and e-commerce on the industry. They shared information as to how the industry is changing and what this means for importers and exporters. Find out what BGI had to say below. <\/span><\/p>\n

How has the industry been impacted by automation, especially in terms of employment and business practices?<\/strong><\/span><\/p>\n

The logistics industry is continuously evolving to meet the demands of the changing marketplace. Companies are investing in advanced technology platforms and systems to handle the online retail boom with speed-to-market and the customer service experience becoming a major factor in company success. Organizations have had to quickly adapt by upgrading or implementing warehouse management systems to improve operations efficiency and flexibility, and by hiring employees with the technological training, education, and soft skills to meet the new demands. Logistics companies must continue to innovate and adapt to changes in the market in order to remain relevant.<\/span><\/p>\n

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How does e-commerce impact the cost of transporting a good overseas?<\/strong><\/span><\/p>\n

The cost of transporting e-commerce goods overseas largely depends on the country of origin, mode of transportation, and the product category. Both direct and indirect costs such as shipping time, regulatory costs and delays, and infrastructure should be taken into account. The lack of an integrated e-commerce transportation, services, and supply chain infrastructure has forced many companies to rely on air transportation for time-sensitive products like consumer electronics and fashion items. This mode of shipping goods overseas, however, is expensive and impractical for most e-commerce products. For less time-sensitive products, many companies have begun to establish a forward inventory system in order to have their goods strategically placed close to their target markets or consumers. This supply chain model is a more cost-effective and efficient system with better integration with the e-commerce logistics process. It also allows for the slower but less expensive mode of ocean freight shipping to be used reducing overall cost. The continued upsurge of e-commerce shipping with Amazon acting as the driving force of online sales growth has triggered a shift towards developing a logistics and supply chain infrastructure that will better support this burgeoning market, and eventually help to reduce the cost of transporting goods internationally for online sales.<\/span><\/p>\n

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With the entry of players, such as Amazon and Alibaba, what do you see as the future of the industry?<\/strong><\/span><\/p>\n

E-commerce companies such as Amazon and Alibaba have definitely impacted the industry. They have a broad reach and have driven down prices in some sectors of the transportation industry. Because of their size, they can negotiate lower pricing for domestic trucking than most other companies. It is reported that Amazon is gearing up to handle more imports for the sellers on their site to offer a complete one-stop shop. They will be able to arrange and handle a shipment from the overseas factory all the way to the Amazon warehouse. This will be extremely attractive to some sellers, including those who are new to Fulfillment by Amazon (FBA) selling and thus know little or nothing about the import process. Even the seasoned seller who does not want to be distracted by the details related to importing goods from overseas would most likely take advantage of this opportunity. This will undoubtedly appeal to a large number of sellers as it would allow them to focus more on selling than on logistics, although, they may place a premium on this service to FBA for the added convenience. It remains to be seen how far Amazon will penetrate the logistics sector, and whether they will undercut the current forwarders in the market.<\/span><\/p>\n

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What should an SME look for in a freight forwarder and customs broker when exporting or importing for the first time?<\/strong><\/span><\/p>\n

A Small and Medium-Sized Enterprises (SMEs) should look for the following in a freight forwarder or customs broker, whether exporting or importing for the first time or if they have been in the game for a while. Here are some of the questions an SME should ask:<\/span><\/p>\n