From hearing aids to jet engines, 3D printing is revolutionising the world of manufacturing.
Of all the ways 3D printing will change the world, the democratisation of manufacturing is perhaps the most important. Think of it as the Uberisation of manufacturing, where supply can be accessed anywhere in the world to produce goods at the click of button.
This is a once-in-a-generation logistics opportunity, as so-called additive manufacturing will optimise the time and cost of making and delivering goods. Mass customisation will be the new normal. So what does this mean for the future of logistics? Modern delivery and manufacturing
We’ll see more direct-to-person manufacturing as well as delivery. Physical stores will be reserved for generic goods, not items customised to the individual. Hybrid customisation has enormous potential for logisticians.
Imagine thousands of products from cell phones to blenders, each made with a common core but customisable covering. Third-party logistics providers are uniquely suited to move these items.
Logistics companies like UPS would simply store the common core in their warehouse, print the custom piece and finish final assembly near the point of consumption.
This would also disrupt service parts logistics. Right now, companies make and store hundreds of thousands of critical parts around the world at tremendous expense just on the off-chance that they’ll be needed for an emergency repair.
In the future, these slow-moving parts will be stored virtually and printed on demand. As a result, import and export costs – especially important to small businesses – will plummet dramatically.
As companies begin to take advantage of designing parts for 3D printing, the manufacturing industry will re-invent itself. Machines designed to construct a specific product will give way to 3D printers capable of making many different items.
This will be the sparkplug for efficiency across supply chains. It will revolutionise how we get items to your doorstep. And it will forever alter how you search for and purchase goods every day.
Even though 3D printing is a 30-year-old technology, we’re just scratching the surface of where additive manufacturing will take us. These printers are no longer reserved solely for prototyping and product design.
We’ve moved beyond trinkets and souvenirs to items like hearing aids and aircraft parts, proving this is no fad.The global 3D printing market will exceed $21 billion by 2020, according to Wohlers Associates. 3D printing demands
In addition, the demand for 3D printers, materials and services will surpass $10 billion by 2018, the consulting firm found. Such promise is why UPS recently partnered with software company SAP to expedite the manufacturing and delivery of 3D-printed parts.
Customers can go online and place an order through the Fast Radius website and these items will be printed either at a UPS Store location or printing facility connected to our air hub in Louisville, Kentucky – in as little as a day.
This effectively creates end-to-end industrial manufacturing. And we expect these efforts to go global in the near future.
Moving beyond logistics, however, 3D printing will change the way we think. It will change how future generations learn and see the world.
This technology can now keep pace with anything we imagine. We’re no longer forced to innovate in a world shackled to existing infrastructure. If you can think it, you can do it. Reprinted with permission of Longitudes, the UPS blog devoted to the trends shaping the global economy.
The global logistics market is forecasted to reach US$12,256 billion ($16,063 billion) by 2022, according to a new report published by Allied Market Research.
‘Logistics – Global Opportunity Analysis and Industry Forecast, 2014 – 2022’ projects a CAGR of 3.48% from 2016 to 2022, with Asia-Pacific dominating the global market in terms of revenue – accounting for more than a 34 per cent share of the global market. China accounts for about a 59 per cent share in the Asia-Pacific logistics market.
In 2014, the roadway segment dominated the global logistics market in terms of revenue, and it is projected to grow at a CAGR of 3.33 per cent during the forecast period. The manufacturing segment dominated the global logistics market, accounting for about 26 per cent share in 2014.
The major players profiled in the report include Deutsche Post DHL, Kuehne+Nagel, The Maersk Group, DB Schenker Logistics, C.H.Robinson, Dsv Global Transports and Logistics, Panalpina, United Parcel Service (UPS), Supply Chain Solutions and Geodis.
“Global logistics market holds a vital scope for growth globally,” said Sheetanshu Upadhyay, Research Analyst – Freight and Logistics at Allied Market Research. “Increasing applications of logistics market in the various modes and end-user industry is expected to fuel growth in the coming years.
“Roadways are one of the key components of modes of transportation and multimodal transport. It accounts for nearly 47.29 per cent of the overall mode of transportation used in the world logistics market. The segment contributed highest share in total logistics market owing to its speed transportations and flexibility.”
The global digital logistics market, most recently valued at US$10.26 billion ($13.4 billion) in 2016, is expected to reach a value of US$16.36 billion ($21.4 billion) by the end of 2022, growing at a projected CAGR of 8.1 per cent between 2017 and 2022 according to a new report from Orbis Research.
Orbis defines digital logistics as the use of advanced technologies and communication in logistics to reduce operating costs and improve supply chain integration, increasing overall efficiency, performance and quality. “Smart logistics gives companies a superior performance by optimising the costs, reducing inventories and providing flexible operations,” the company said. “This market is expected to see massive demand in coming years.
“Increase of e-commerce sales around the globe is driving the digital logistics markets. The need to provide optimised and fast operations is creating large demand for digital logistics solutions. However slow adoption in some countries is hindering the growth of this market in some regions.”
The report, ‘Global Digital Logistics Market By Type of System, Services, Industry, Geography, Trends and Forecast 2017-2022’, considers key trends that impact the industry and profiles of companies such as IBM Corporation, Advantech Corporation, Oracle, Digilogistics, Hexaware Technologies, Samsung Electronics Co, Tech Mahindra, JDA Software, UTI Worldwide Inc. and SAP AG.
New kid on the parcel delivery block Sendle has been offering Australia-wide flat rates to small businesses since 2014, though the delivery service has been embroiled in a legal dispute with Australia Post since soon after its inception.
Australia Post has asserted that Sendle’s slogon – ‘post without the office’ – infringes upon their trademark over the word ‘post’.
IP Australia is now making its determination and could take up to three months to make an adjudication. Logistics & Materials Handling sat down with James Chin Moody, CEO at Sendle, to find out why the company has the national postal service so spooked, and how he feels about competition in the sector.
“Australia Post is going to be around for many years to come – but they are not used to friendly competition in this space,” Moody commented. “At Sendle, we think it makes industry better by improving service levels and bringing prices down – it’s great for everyone.”
Moody noted that this is not the first time Australia Post has used its might to thwart a would-be competitor. Australia Post began legal action against Digital Post Australia upon its launch in 2012, purportedly due to the company’s name infringing on Australia’s trademark, but likely due to the newcomer’s offering of a digital postbox service similar to one soon to be introduced by Australia Post. The trademark battle made it to Federal Court where it was tossed out, a fact which gives Moody added confidence. “You can’t own the word ‘post’,” he added.
When asked whether there was room for both Sendle and Australia Post in the country’s parcel delivery market, Moody pointed again to the benefits of competition. “It’s really healthier – choice is healthier for everyone,” he said. “Australia is poorer with one airline, one bank, one telco, etc. Choice helps friendly competition, prices come down and service levels improve.”
The chances of collaboration between the two delivery companies in the future are slim, Moody shared – at least while Australia Post continues to use its traditional service style. “We believe we’re offering a better level of service,” he said.
“What we’re learning in the age of the Internet, the age of technology, is that you can no longer be 80 per cent good to everybody, you have to be 100 per cent good to somebody. You can’t be 100 per cent good to 80 per cent of the market, but you can be 100 per cent good to 20 per cent of the market, and that’s what we’re trying to be.”
The tools, partnerships and customer support Sendle develops, he shared, are designed to suit small business, and give a viable alternative to those having to line up at the post office. “Sometimes, when you’re really small, none of the big guys want to talk to you,” he said. “Small businesses spend up to 40 per cent of their time on admin and logistics. Let’s free up their time so they can do what matters – building their business.”
Research and Markets has recently released a research report on the market for robots designed for use in warehouses and the logistics sector.
The report, ‘Warehousing and Logistics Robots: Global Market Analysis and Forecasts’, found that worldwide sales for the robots reached US$1.9 billion in 2016 ($2.5 billion), forecast to rise to US$22.4 billion (29 billion) by the end of 2021.
Research and Markets also reports that AI advisory service Tractica expects worldwide warehousing and logistics robot unit shipments will increase from 40,000 in 2016 to 620,000 units annually by 2021.
“The market is experiencing strong growth, with many prominent companies showing greater confidence in new robotics technologies that can yield a return on investment (ROI) in less time than it took a few years ago,” the company stated. “In the modern world’s fast-paced, customer-driven economy, the warehousing and logistics industries are looking for robotics solutions, more than ever before, to remain globally competitive.
“While robotics technology has already made an economic impact on the manufacturing sector, it is currently starting to transform supply chain operations to be faster, safer, and more productive. The demand for robots and the supply of matured robotic solutions for the optimisation of logistics processes have created a tipping point that could lead to widespread acceptance and presence of robots in warehouses and logistics operations.”
A new report from Allied Market Research titled, ‘Global E-Commerce Logistics Market – Global Opportunity Analysis and Industry Forecasts, 2014–2022’, projects that the e-commerce market will be worth US$536 billion ($709 billion) by 2022, growing at a CAGR of 21.2 per cent from 2016 to 2022.
The transportation service type generated the largest market share in 2015 while the warehousing sub-segment is expected to register the fastest growth during the forecast period 2016–2022. Asia Pacific is expected to be the largest market.
“Booming e-commerce industry, execution in 3PL, and enhanced relationships between customers and suppliers provide heightened growth avenue for the e-commerce logistics industry,” the market research company said in a press release. “Retailers have revamped their traditional warehouses to cater to the requirements of e-commerce and logistics to improve the store-level inventory accuracy and increase their ability to serve larger consignments.
“Further, supply chain solutions are being customised to serve the user requirements with the transformed fundamentals of product distribution and advancements in technology. Additionally, business analytics has assisted logistics professionals to increase the speed and efficiency of work processes.
“The extended execution of supply chain footprint is highly opportunistic for the market growth. However, factors such as high deployment of warehouse management solutions and regulatory issues restrict the market growth to a considerable extent.”
In 2015, the transportation sub-segment dominated the market, the company observed, however the warehousing service type is expected to witness the fastest growth over the forecast period.
“The integration of e-commerce logistics with transportation management software (TMS) has boosted the e-commerce logistics market growth,” the company said. “TMS aids in planning deliveries across the supply chain. Furthermore, optimizing the flow of goods and leveraging consolidated capacity have increased the growth potential of the market. Further, the domestic operational area leads the global e-commerce logistics market and international operational area portrays the fastest growth rate in the global market.”
Sonia Mutreja, Lead Analyst – E-Commerce & Outsourcing, AMR said, “Asia Pacific is the most productive market for e-commerce logistics as compared to others owing to the increasing population, globalisation, upsurge in the sales of smartphones, and increasing number of netizens. Furthermore, LAMEA is projected to grow at the fastest pace over the forecast period owing to technological advancements and rising internet connectivity in the region.”
Key findings of the study:
Domestic operational area generated the highest revenue as compared to international area and is anticipated to maintain its dominance over the forecast period
Transportation is expected to exhibit a significant growth in the e-commerce logistics market
LAMEA is projected to exhibit a substantial growth during the forecast period
The key players in the global e-commerce logistics market include DHL International GmbH, Aramex International, FedEx Corporation, S.F. Express, Gati Limited, Amazon, Kenco Group, Inc., Ceva Holdings LLC, United Parcel Service, Inc., and Clipper Logistics Plc.
According to UK-based valuation and strategy consultancy Brand Finance’s latest annual rundown of the world’s most powerful logistics brands, UPS is still both the most valuable and the most powerful logistics brand in 2017, valued at US$22 billion ($29 billion).
Each year, Brand Finance values the brands of the world’s biggest companies, they are evaluated on their power/strength – based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation – and given a corresponding letter grade up to AAA+. Brand strength is then used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine the brand’s value. The world’s most valuable logistics brands are ranked and included in the Brand Finance Logistics 25 2017.
FedEx retains its place in second position, valued at $17 billion – 31 per cent up from 2016 following its controversial acquisition of TNT Express – UPS was blocked by EU anti-trust authorities in 2013 from acquiring the business over concerns about market dominance in Europe, FedEx’ subsequent acquisition caused some friction and now the EU’s general court has opened the door for UPS to sue for damages.
Royal Mail dropped from seventh place in 2016 to sixteenth in 2017, with its value down 21 per cent. Brand Finance credits the Brexit referendum with negatively affected the value of many UK brands though notes that Royal Mail’s troubles go beyond this. “Its share price has dropped consistently from September 2016 and now stand at a near all-time low,” the company said in a press release. “Online migration of ad budgets is hitting revenue from direct mail – despite the best efforts of the great and the good of the UK’s advertising and marketing community pitching in for the ‘MailMen’ campaign – while a continuing fall in letter volumes is weighing heavily on Royal Mail given its Universal Service Obligation.”
Hewlett Packard Enterprise company Aruba has claimed that by 2019, 77 per cent of organisations in Australia will have some form of Internet of Things (IoT) in place, according to its latest global study, ‘The Internet of Things: Today and Tomorrow’.While organisations adopt IoT to leverage the business benefits of enhanced efficiency and innovation across the enterprise, industrial, healthcare, retail and municipality sectors globally, Aruba’s study has found that only one in two Australian IoT-connected businesses are using this data to improve business processes and decision making.
The study also uncovered a number of obstacles that IT leaders feel are preventing IoT from delivering greater business impact such as the cost of implementation (57 per cent), security concerns (51 per cent), and difficulty integrating with legacy technologies (51 per cent), sentiments echoed across the globe.
Despite the significant security gains from IoT, security flaws were found across many IoT deployments.
The study found that 88 per cent of organisations in Asia Pacific have experienced at least one IoT-related security breach, the highest in the world.
More than half of respondents in Australia (51 per cent) declared that external attacks are a key barrier to embracing and adopting an IoT strategy, and the study seemingly confirmed that that a holistic IoT security strategy – built on a strong network access control and policy management – will not only protect enterprises but also simplify the security approach for IoT.
Three in four Australian adults are interested in Amazon Australia and 56 per cent are likely to purchase from its Australian site, according to a survey carried out by Nielsen in January 2017.
Almost half (45 per cent) of respondents stated that they would subscribe to Amazon’s Prime service for deals, discounts and fast delivery.
Two thirds of respondents noted that they were likely to use Amazon to purchase electronic goods, while three fifths said they will likely buy books or clothes through the website.
The survey found that Australians have little interest in buying their groceries from Amazon, just nine per cent of respondents said that they would likely buy fresh vegetables through the site and seven per cent said they would use it to purchase fresh meat.
Craig Woolford, Citigroup’s head of research, told the Australian Financial Review(AFR) that Australia represents a very promising prospect for Amazon, and he believes Amazon could capture sales of at least $4 billion within five years of rolling out its services. “Australia’s appeal for Amazon becomes clearer when you adjust retail sales levels for population. Australians spent $12,200 per person on retail goods last year, third only to the US ($15,700 per person) and Japan ($12,300 per person). These are both markets in which Amazon has a local presence,” he said.
JB Hi-Fi, Harvey Norman, specialty retailers such as Super Retail Group and Premier Investments, department stores including Myer, Target, and BIG W and footwear retailers such as RCG have the most to fear from Amazon, according to Citigroup. “Amazon’s impact on (Australian) retailers would be diverse, given the magnitude of its product range. We expect the greatest impact to be felt by electronics retailers given Amazon’s product range and the branded nature of these products,” Woolford recently reported. “We estimate 44 per cent of its product sales would be electronics [and] the next largest category is likely to be physical and electronic media including books.”
“When Amazon comes to Australia, whether it’s this year or not, it will take a year or two to have that knock-on effect,” said James Stewart, Ferrier Hodgson retail partner. He added that he doesn’t expect Amazon to establish a full physical presence in Australia for another two years, given the time requirement to build fulfilment and sorting centres and to build relationships with Australian brands.
According to ReportsnReports.com’ Global and China Third-party Logistics Industry Report, 2016-2020, published on 10 February, the global third-party logistics industry will be worth US$900 million ($1.2 trillion) by 2020.
The market research firm reports that the global third-party logistics market hit US$721 billion in 2015 ($940 billion), occupying 8.2 per cent of the logistics market size and a year-on-year increase of 4.5 per cent. In 2016, the value of the market increased to US$757 billion (987 billion).
“In the future, by virtue of high efficiency and highly standardised operation, the third-party logistics market size will grow steadily, expectedly outstripping USD900 billion in 2020, with a share of nearly 10.0% in the logistics market size,” the company said.