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About: Melissa Wraith

Recent Posts by Melissa Wraith

High risk and lack of trust. The coming crises of confidence for Australian supply chains

Australia, by virtue of its geographical isolation, sits at the end (or beginning) of what are by any definition long supply chains. Moving anything into or out of Australia is more challenging simply because of the “tyranny of distance.”

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Containerisation makes the world go round

In the late 1930s, Malcolm McLean, a North Carolina truck driver was becoming more and more frustrated by constantly having to load, unload, repackage and store his bales of cotton as they were transported from plantation to port.

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I Rent the Clothes on My Back: Fashion and the Sharing Economy

The new collaborative, sharing economy has given us everything from sharing rides, (Uber) to sharing houses, (AirBnB) and now according to Christine Hunsicker, it is time to look in our closets and share our wardrobe. Hunsicker is the CEO of five-year-old Gwinnie Bee clothing rental service. Hunsicker notes that the $2 trillion-dollar fashion industry is ripe for a technology disruption. The “sharing economy” as it has been labeled has disrupted every large business from taxi companies to hotels, and looks like sharing clothing is going to be next.

“A lot of people can’t afford the timeless brands new but they still appreciate the quality,” said Erin Wallace, director of marketing for Crossroads Trading and its sister store Fillmore & 5th, which has opened six boutiques since 2012.

Magellan Logistics Fashion Freight ForwarderOther brands making a success out of breaking the paradigm include Rent the Runway, Bag, Borrow or Steal and ThredUp.

Many of these new businesses are getting funding from traditional sources like individuals and private equity firms including Bain Capital Ventures but also from startup platforms such as Onevest.

Highland Capital Partners, which has more than $2 billion under management, has invested in a number of businesses including Rent the Runway and ThredUp, which focus on Millennials and the shared economy, said partner Dan Nova.   “Just about every major industry is likely to experience disruption (because of the sharing economy),” said Joe Atkinson of accounting and consulting firm PwC, whose April report that found that Millennials are among the most enthusiastic about sharing and account for almost 40 percent of those who have provided something.

Big Players Take Notice

Clothier Louis Vuitton, with revenue at €30 billion annually is not likely anytime soon to feel the effects of millennial consumers’ clothes sharing schemes. However, large retail outlets like Patagonia have taken notice. Recently the outerwear retailer has started the “Worn Wear Rack” program, enticing customers to trade in used clothing that is in good condition for later resale. More telling of what may come in the future is that venture capital financier Highland Capital Partners has invested millions in many of the new fashion sharing startups. One of their investments, Rent the Runway, rents high end designer clothing for a subscription fee. With Forbes magazine estimating that the sharing economy has surpassed $3.5 billion since 2013, the possibilities of a large slice of the haute couture pie could be missing from the big retailers’ bottom line soon.

Not Everybody is a Fan

With disruption of economic models comes backlash. Rioting Parisian cabbies last Summer were angry at the Uber invasion in France, and the government of Singapore confiscated flats that were shared with tourists because of regulatory conflicts. This is to be expected in industries who up till now have randomly set their own prices. Entrepreneurs know that their small piece of an extremely large pie can grow. Accountants Price Waterhouse and Coopers estimate total sharing economy revenues to grow to $ 335 billion by 2025, and PwC’s Joe Atkinson theorise that every major player in the retail industry today will be disrupted by the sharing economy.

Community Comes First

Though there is profit to be made, millennials in particular want to be a part of a bigger community. This is one of the reasons they look to connective technology more when purchasing personal items. Rachel Botsman, author of the book “What’s Mine Is Yours: The Rise of Collaborative Consumption believes that millennials look first at personal connection with any business or corporate entity. With the rise of technology that can cut out middle merchants like retailers and other gatekeepers, the empowerment of younger consumers comes with the feeling that they are part of a bigger peer group.

Environmentalism is also a major driver of this trend. “Instead of paying for something and getting rid of it with no value when you are done – swap and resale gives Millennials the ability to extend the value,” says Jamie Gutfreund, chief marketing officer for Deep Focus (youth trends market research firm. “It’s efficient and it’s green.”

Indeed, 59 percent of Crossroads shoppers said “being an environmentally friendly way to shop” was one of their favourite things about the store.

Investment Precedes Profits

With Uber and AirBnB now valued at over $10 billion one can only imagine what the next few years will bring into the sharing economy. Tens of millions of dollars in capital is being now raised for the sharing of clothing, housing and other staples, with firms lining up to get into the fledgling industry. With the right kind of management, sharing pre-worn clothing can be the next big boom in this new, collaborative environment.

And, as we have seen time and time again, trends that take hold off-shore are soon replicated in Australia – what will it mean for our much loved traditional fashion retail brands?

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Magellan Logistics is a locally owned, Melbourne based freight forwarding and logistics company with offices in Sydney and Auckland and a specialization in freight forwarding and 3rd party logistics for the textiles and fashion sector.  Contact 1300 651 888 or visit www.magellanlogistics.com.au for more information on how we can assist you.

 

Resources:
https://en.wikipedia.org/wiki/Louis_Vuitton
http://www.cbsnews.com/news/sharing-economy-gwynnie-bee-everyday-plus-size-clothing-rental/
http://www.forbes.com/sites/yunitaong/2014/06/23/southeast-asias-sharing-economy-start-ups-may-produce-the-next-airbnb-or-uber/#313a89cd30aa
http://www.collaborativefinance.org/sharing-economy/
http://www.businessinsider.com/r-millennial-nowners-follow-uber-with-new-fashion-trading-model–2015-5
http://www.harpersbazaar.com/fashion/trends/news/a11040/sharing-economy-fashion-apps/
http://www.businessoffashion.com/articles/news-analysis/millennials-follow-uber-with-new-fashion-trading-model

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Merry Christmas

We’d like to take this opportunity to offer our sincere thanks to all our clients, partners and agents for yet another wonderful year.  We wish you a Merry Christmas and Happy New Year in 2016 and look forward to working with you again in 2016.

Please note our altered operating hours over the Christmas and New Year period.

Magellan will be closed for the Christmas/New Year Holidays as follows:

  • Close 2pm Thursday 24/12/15, reopen 8:30am Tuesday 29/12/15.
  • Close 2pm Thursday 31/12/15, reopen 8:30am Monday 4/1/16.

We are open as usual on all other days.

Should you need clarification, or options for freight movement around this holiday period, please contact our Customer Service team on 1300 651 888.

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Fun and Innovative Uses for Retired Shipping Containers

While we take the import and export of our clients’ goods seriously, we’re not all business here at Magellan Logistics. In fact, we’re fascinated with the myriad fun and innovative ways to repurpose all those retired steel shipping containers that we once had a hand in shipping around the globe. We’re super impressed when someone creates something new and functional out of just one container.

Texas architect Jim Poteet helped Stacey Hill, who lives in a San Antonio artists’ community, wrangle an empty steel shipping container into a playhouse, a garden retreat, and a guesthouse for visiting artists.

Texas architect Jim Poteet helped Stacey Hill, who lives in a San Antonio artists’ community, wrangle an empty steel shipping container into a playhouse, a garden retreat, and a guesthouse for visiting artists.

But there are a number of great ways to reuse one or several of these containers. One of the most common is to use retired containers as the skeleton of a residential building, and it’s a great way to recycle these containers for additional use. Many families might even use a single shipping container as the shell for a lovely holiday home somewhere, as it’s a far sight less expensive than having a fully-featured residence built to spec. Of course, old shipping containers aren’t just ideal for single-family homes either; the world’s first shipping container hotel, located in London, is proof positive that you don’t need to limit your imagination to small structures.

Bedding down for the night in an old shipping container not your speed? There are plenty of other uses for a retired shipping container. The size and shape of these containers make ideal swimming pools, for instance.shipping container architecture  Additionally, if you prefer to stay dry, you can take a smaller intermodal shipping container and modify it into a studio or workshop. A collection of larger containers can be used to put together bigger buildings as well as to build storefronts, fitness centres, or even entire shopping malls.

Boxpark Shoreditch - London's first pop-up shopping mall made completely from shipping containers.

Boxpark Shoreditch – London’s first pop-up shopping mall made completely from shipping containers.

There’s also a growing movement to repurpose shipping containers in order to provide cheap and easy infrastructure for developing countries. From portable restrooms that are more permanent than chemical toilets, self-contained powered classrooms created by fitting the roof of a shipping container with solar panels, compact gardens or nurseries complete with hydroponic growing racks, or miniature emergency medical centres fitted out in ways similar to an oversized ambulance, there’s all sorts of ways to turn a retired shipping container into something that can make a real difference.

infrastructure container

Including one impressive gravity defying art installation!

Installation called WOW Westminster by Brazilian artist José Resende. Part of the Vancouver Biennale.

Installation called WOW Westminster by Brazilian artist José Resende. Part of the Vancouver Biennale.

 

 

 

Here at Magellan, we love everything to do with shipping your cargo all over the world, and that includes what to do with shipping containers that have outlived their primary usefulness. If you’re interested in learning more about what Magellan can do for you and your import and export needs, contact us today and we’ll be happy to show you the Magellan difference.

 

Sources:

http://webecoist.momtastic.com/2009/04/05/15-awesome-ways-to-reuse-shipping-containers/

http://www.marineinsight.com/marine/environment/top-26-innovative-uses-of-shipping-containers/

http://news.bbc.co.uk/2/hi/uk_news/england/london/7176594.stm

http://inhabitat.com/boxpark-londons-first-pop-up-shipping-container-mall-opens-in-shoreditch/

http://blogs.vancouversun.com/2015/11/23/used-shipping-containers-turned-into-art-in-new-westminster/

http://www.dwell.com/great-idea/article/what-you-can-accomplish-single-shipping-container#1

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Supply chain: key to longevity in designer retail space

Supply Chain. In the recent October issue of Ragtrader, Magellan’s Joe Carbone shares some of his insights on how a close and consultative relationship with our clients has contributed to their success. Read the full article here – Ragtrader October pg16-18

Or get in touch with us via the web or call on 1300 651 888.

 

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Magellan / Transaction merge operations

It is with great pleasure that we can announce the merger between Magellan Logistics and Transaction Customs and Forwarding.  This merger further strengthens our position in NSW and service to our NSW clients and will have a significant impact on the overall size and scale of our operations.

Magellan was first established in 1997 and since then we have enjoyed strong growth both organically (due to our excellent customer service record) and via acquisition.  The growth and development of our staff has evolved similarly throughout and we continue to attract high-quality, committed professionals and invest in their training and development.  This is born out in our industry recognition and awards.  In 2009 Magellan was awarded Freight Forwarder of the Year by Lloyds List and we were a Finalist in BRW Private Business Awards in 2010.

As with all important business decisions we will work closely with our clients, employees and partners to ensure the integration process runs smoothly.  From an internal and operational perspective, the merger will take effect for all import jobs arriving on or after Monday September 14th or any export jobs sailing on or after September 14th.

From our customers’ point of view, I want to emphasise that it will be business as usual for both Magellan and Transaction customers – no interruptions or changes to the usual high quality service you have come to expect.

If you have any questions or concerns about this merger and what it will mean for you, please do not hesitate to get in touch with your usual Magellan or Transaction contact or call 1300 651 888.

Con Xegas, Maria Voukelatos and Racheal Green will move from Mascot to the new office at Peakhurst.  Their mobile phone numbers will remain the same.  There are no changes to Adam Marsh’s contact details.

Unit 4, 45-47 Stanley Street

Peakhurst  NSW  2210 Australia

PO Box 441

Mortdale  NSW  2223  Australia

Telephone: +61 2 9153 6043

This is an exciting time for us and we are delighted to welcome Adam Marsh from Transaction Customs and Forwarding to our team.

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Supply & Demand – Influences that shape your supply chain solution

Supply & Demand:  In the Supply 101 section of the latest issue of RagTrader Jeff Kershaw and Joe Carbone advise on the importance of understanding both the drivers and impacters of supply chain decision making in the pursuit of a bespoke and efficient solution that achieves both business and brand goals while at the same time meeting customer needs.

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Offshore warehousing, 3PL, sorting & labeling – direct into store

As we gear up for peak season in the freight forwarding and logistics business it seemed timely to revive a blog post from earlier in the year.

The traditional supply chain method of overseas supplier packaged and delivered product is evolving. The pace of change is rapid and importers need to adapt or suffer competitive pressures through loss of sales and local sorting and distribution costs.

Historically, Australian importers have maintained local distribution facilities, either in-house or 3PL, in order to deliver product domestically. In today’s environment this can be an expensive solution when compared to some of the options available off-shore.

There is an increasing trend of transferring labour intensive activities, such as Pick and Pack, to low cost countries closer to the supply source. For example, Magellan Logistics provides a Pick and Pack solution in Hong Kong and Shanghai, that shorten the supply chain and provides significant cost savings to our customers. All orders are processed at a SKU level and packed for ultimate store delivery. The goods are then shipped directly to the customers designated outlet or warehouse. This enables Magellan’s customer to eliminate double handling and freight cost duplication, as well as reducing the physical cost of distribution.

If your company is considering using an off-shore distribution solution you should research and examine the options and find out what is most feasible for you.

Magellan Logistics can assist you with this with expert advice and consultancy.

If you would like to discuss this further please contact our team on 1300 651 888 or info@maglog.com.au

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