MHI Blog -- The rush to Asia in the past decade promised major cost reduction for supply chains, but financial gains for many corporations have been short-lived according to a new study by The University of Tennessee’s Global Supply Chain Institute (GSCI).  The study uncovers the downsides of outsourcing by putting the complexity and risk of the global environment into context.

Evidence from the research, compiled in Global Supply Chains, the fourth installment in the Game-Changing Trends in Supply Chain series from supply chain faculty, suggests a more localized supply chain for many products may soon be making a comeback.

World Trade -- If home delivery ever adopts an official slogan, the term "between a rock and a hard place" should be a front-runner.

According to a study underwritten by Intermec, as many as 77 percent of consumers now expect same-day delivery service for certain kinds of goods. Yet research from Forrester suggests that the number one reason for online shopping cart abandonment is high shipping and handling costs — costs that are no doubt being driven up by consumers’ demands for faster delivery speeds.

EBN -- Risk isn't a new topic in the supply chain, but it's one that is moving up the priority list for many electronics companies, as a global reach becomes a reality. Changing weather conditions, evolving labor disputes, and shifts in economic growth all make the risk picture change over time -- requiring keen attention and careful planning.

The Washington Post -- Senate lawmakers are pressuring the Federal Aviation Administration to speed up its efforts to develop rules for drones — and at least one senator is objecting to a restrictive proposal that could put commercial drones out of reach of all but the wealthiest companies.

In a letter to FAA administrator Michael Huerta, a group of lawmakers led by Sen. Ron Wyden (D-Ore.) are demanding that the FAA speed up its deliberations for integrating drones into the national airspace.

Logistics Management -- Recent US West Coast port congestion issues have temporarily reversed the long-term modal shift from air to ocean as shippers seek alternative ways to make sure their goods hit the stores in time for the US holiday season, note analysts at Drewry Supply Chain Advisors in London.

World air cargo growth has for a number of years lagged behind container shipping growth due to a combination of factors, including higher demand for commodities that are typically shipped by ocean freight, faster growth at the low-value end of commodities such as T-shirts that reduces air cargo’s overall share and finally the sea conversion of "mature" products.

MHI Blog -- 2015 will be a big year for manufacturing and supply chain professionals. MHI will celebrate its 70th anniversary with the largest ProMat ever, but that’s just the beginning.

US News & World Report -- People are starting Christmas shopping earlier in the season and ordering gifts closer to the last-minute before the holiday, so more small and large businesses are offering free delivery deals to compete with e-commerce juggernaut Amazon.

The Amazon Prime service offering same-day delivery – which costs $5.99 for Prime subscribers - was in such high demand last year that in March the company raised the cost of subscription from $79 to $99 per year. Amazon Prime offers free two-day shipping for its subscribers, so rival companies are taking notice of the rising customer expectations for free or inexpensive rapid delivery.

Modern Materials Handling -- Last month the United States and China jointly announced their respective targets for reducing greenhouse gas emissions that are driving climate change for post-2020.

In a November 12 White House blog posting by John Podesta, counselor to President Barack Obama and John Holdren, the President’s science adviser, made note of how over the last year, "a spate of scientific studies have laid out the scope and scale of the challenge we face in the starkest of terms," when it comes to taking on climate change action.

Reuters -- The Global Environment Facility, which has provided $13.5 billion in grants to developing nations since 1991, wants a wider role in protecting nature by tightening commodity supply chains from farmers to consumers.

Naoko Ishii, chief executive officer of the 183-nation GEF, told Reuters that efforts to safeguard tropical forests from land clearance to make way, for instance, for palm oil plantations were hampered by a lack of oversight.

Material Handling & Logistics -- The world's largest container vessel, the CSCL Globe, set off Monday, Dec. 8, from Shanghai to Europe.

The 'CSCL Globe' is the first ship co-built by China Shipping container Lines Co.,Ltd (CSCL) and Hyundai Heavy Industries Ltd. Co of South Korea. 

The giant 400-meter long, 60-meter wide vessel and 30.5m in depth ship sailed from the eastern Chinese city's Yangshan port.

The Maritime Executive -- Shipping emissions in ports are substantial, accounting for 18 million tonnes of CO2 emissions, 0.4 million tonnes of NOx, 0.2 million of SOx and 0.03 million tonnes of PM10 in 2011. Around 85% of emissions come from containerships and tankers. Containerships have short port stays, but high emissions during these stays.

Most of CO2 emissions in ports from shipping are in Asia and Europe (58%), but this share is low compared to their share of port calls (70%). European ports have much less emissions of SOx (5%) and PM (7%) than their share of port calls (22%), which can be explained by the EU regulation to use low sulfur fuels at berth.

Supply Chain Digital -- Mobility and real-time connected businesses: Rocket Consulting is seeing growing demand for mobility related projects in the B2B and B2C space that connect businesses following the launch of its mobile logistics management application LogiScope in April 2014. LogiScope provides end-to-end delivery and returns management information in real and right time to inform decision-making, improve customer service and drive down costs.

In addition, the data derived from mobile devices and connected businesses provides a feed for predictive analytics. For example, equipment and vehicle breakdowns can be anticipated, or a series of events that needs further investigation flagged.  This enables organizations to convert unplanned, expensive maintenance into planned downtime, thereby improving efficiency and cost-effectiveness.

EBN -- To get the most out of reverse logistics efforts, electronics OEMs need to create a closed loop system that maximizes product and material management. That can take time and effort, but can result in substantial return on investment.

Industry Week -- Many companies are considering expanding U.S. sourcing or reshoring production back to the U.S. in an effort to be located closer to customers. Some of the benefits of sourcing locally include increased flexibility to adapt to variable demand, lead time, time to market, eliminating higher shipping expenses and minimizing supply chain disruptions.

As companies consider new locations and production strategies they must first decide what areas they want to invest in and where they want to rely on suppliers. In a recent article in MIT Sloan Management Review by Willy C. Shih ("What it Takes to Reshore Manufacturing Successfully") a manager from Appliance Park was quoted as saying, "Pick where you want to invest in core competencies, and acknowledge where you want to have strategic suppliers—where you aren't going to make the deep investment yourselves."

Supply & Demand Chain Executive -- The reality is that Supply chain has changed. It has moved beyond being a linear "chain" to a network of suppliers, distributors, facility types, forms of replenishment, cycles of supply, types of demand, the fickle nature of consumers or buyers, and the readiness of information about price, availability and alternatives. It is more complex, and changing at an ever-increasing rate. Employees must multiply their competencies to keep up.

Companies and employees must create ways to continuously learn, and learn rapidly. Innovation in supply and demand networks is happening so quickly, that just learning the "new thing" and going back to business is no longer sufficient. We must change our approach to learning, making it both continuous and challenge-based, to create better learners, rather than just better "doers."