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ChAFTA – All duty free from 2019

As of 1 January 2019, duty rates for all tariff categories covered under the ChAFTA agreement will be duty free.

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What gets in the way of supply chain visibility

In the global logistics environment, everyone is talking about supply chain visibility and control. Supply chain visibility simply means having the right information, when you need it, so you can act on it. Getting this information is a challenge, or near on impossible when you don’t have the right systems to support you.

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Specialist airfreight: One retailer’s experience

Speed to Market has become so important that the cost to deliver has become a secondary consideration in supply chain logistics and specialist airfreight is now a critical component to delivering Fast Fashion.  However, if you don’t have a partner with super-sized red tape scissors to help you cut through the complexities of Air, then you could be putting you behind your competition.

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Typhoons Affect Shipping from China and SE Asia

Heavy rain and thunderstorms in recent weeks have caused havoc across China, with floods along major rivers destroying bridges, blocking roads and railways and forcing thousands of residents to evacuate. As a result, waiting times in impacted ports, including Shanghai and Ningbo, have increased considerably.

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12 signs you’re suffering from freight & logistics stress

How do you know if your Freight Forwarder is giving you the best possible service? There are a number of symptoms of freight & logistics stress. To get to the bottom of them you need only ask a few simple questions:

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Magellan Logistics is now an Australian Trusted Trader

Supply chains today are incredibly complex. The need for trust and confidence between the people and organisations involved has never been more important. That’s why we sought and attained Australian Trusted Trader accreditation.

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Q: What is a good freight rate?

Getting the right deal is based on your point of view and the importance you place on your supply chain. It depends on the nature of your supply chain, what type of service you need and the focus and attention you place on supply chain optimisation.   In short, it depends on you.

The saying “you get what you pay for” has never been more relevant than in the current market conditions. The costs and business consequences of something going wrong can far outweigh a minor saving in rates.

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New packing declarations for bamboo – 1 July 2018

The Australian Department of Agriculture and Water Resources has again changed the format of packing declarations as a result of bamboo being classified as an acceptable packaging material. Bamboo packaging is now acceptable provided it is treated by an approved method prior to export or on arrival and does not need to be declared as unacceptable packaging.

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The ‘not so’ surprising link between supply chain optimisation and maturity.

Many of the discussions I have in the course of my work are around the different perspectives businesses have on how best to approach supply chain optimisation.  It all comes back to where their business sits in terms of logistics maturity.

Gone are the days where the cost alone matters. In order to survive, businesses need to constantly change with the dynamics of their industries and innovate to maintain competitive advantage.  This is the same with supply chain optimisation; technologies evolve, disruptions arise and new value add services emerge to address them.

The best companies continuously monitor, develop and reinvent their supply chains, even if they are leaders. As a result, they can manage risks; respond to changes in the economic, technological, and competitive environment; and explore new opportunities more effectively than their competitors.

Some recommendations to assist with supply chain optimisation in your organization include:

·         Define and distinguish between your corporate and supply-chain strategies. Ensure your supply chain supports delivery of the key parts of your strategy.

·         Collaborate with experts and create a modern, end-to-end supply-chain organisation.

·         Maintain complete visibility and utilise sophisticated statistical analysis. This allows you to manage supply chains end-to-end. Make sure your supply-chain combines operational excellence with strong analytical capabilities and data-driven, cross-functional decision-making.

·         Strive for supply chain excellence. Set performance standards for the organisation and measure accordingly. Give incentive to your supply-chain organisation to work in ways that deliver the most value for your business while protecting against its biggest risks.

There is a strong correlation between supply chain maturity and optimisation. Successful companies know their supply chain is much more than the cost and process of getting products into customers’ hands. These companies appreciate that a properly designed supply chain enables the implementation and realisation of corporate strategy. The day-to-day interactions both within and beyond the organisation make it happen.  The inclusion of this broader perspective on supply chain in business planning reaps rewards.

“The path to logistics excellence is partly defined by an organisation’s current level of logistics maturity.”

says James Lisica, research director at Gartner. Gartner has created a 5-step model to logistics maturity. I have summarised the 5 steps below:

Step 1: React — Silo-ed Autonomous Operation

Characterised by autonomous departments, such as sales and manufacturing, driving logistics priorities via manual processes and disparate, disconnected systems. This aims at bringing departments together.

Step 2: Anticipate — Functional Scale and Efficiency

There is a focus on creating standardised processes and methods to benefit from economies of scale and increased efficiency. Performance focuses internally on fulfillment percentage, productivity, costs and return on assets.

Step 3: Integrate — Integrated With the Supply Chain

The focus now is on integrating the logistics function into the overall supply chain.

Step 4: Collaborate — Collaborating With the Value Chain Network

By this stage, there is collaboration and visibility with suppliers and customers, as well as strategic partnerships with logistics providers that go beyond simple transactional services.

Step 5: Orchestrate — Network Orchestrator of Profitable Customer Value

Logistics and the rest of the supply chain facilitate processes across an ecosystem of partners to capitalise on unique business opportunities. As a result, information flows across the supply chain network in real time. This enables broader visibility and timely, fact-based decisions, which increases market share and growth opportunities.

At what stage of logistics maturity are you? Do you feel your supply chain is fully optimised? It’s not easy to answer.

Your supply chain is one of the most critical parts of your business – you should always be looking for ways to improve it.  Choosing a logistics partner you can trust to navigate in this uncertain environment is essential if you want to get ahead and stay there. Magellan’s experienced professionals can help you consider and implement optimisation techniques that suit your business and put you on the path to supply chain maturity. For a confidential discussion about your supply chain get in touch with me today on +612 9153 0864 or via email.

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Chinese New Year 2018 – Plan Ahead

Happy New Year and of course, Happy Chinese New Year 2018!

China’s most important festival, also known as Spring Festival will be here before you know it. Most businesses in China and Hong Kong (as well as many other Asian nations) close for a week and sometimes longer in order for staff to travel to be with their families for the celebrations. This can cause delays in obtaining Customs Clearance documentation for Australian businesses importing cargo from China and elsewhere in the region.

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