The report finds that China's export manufacturing sector continues to slow as headwinds both domestically and abroad intensify. Competition is expected to further increase this year while customer loyalty remains low. A lower price is the least important factor for customers considering new suppliers, suggesting manufacturers need to focus on quality over cost reduction. To survive in this challenging environment, the report argues exporters must strengthen knowledge of customer needs, develop more collaborative partnerships, and deliver tailored logistics solutions, as outlined in UPS's Made in China 2.0 reform agenda.
How to Add Agility and Customer Focus to the Healthcare Supply ChainUPS Longitudes
The global pharmaceutical and healthcare industry has
experienced a number of severe shocks to the system in
recent decades. What was once a sector where profits flowed
from ‘blockbuster’ drugs and a customer base willing to
pay premium prices has transformed into a quite different
world as a consequence of competition from generics along
with reduced budgets available to healthcare providers.
Compounding these problems are increasing regulatory
constraints and more challenging logistics requirements as
bio-pharmaceuticals and related products increase the need
for stricter control of temperature and shelf-life as they move
through the supply chain.
As a result there is now a significantly greater focus across
the sector on supply chain management. Previously, when
margins were higher and logistics costs were a relatively
small proportion of total costs, supply chain issues tended
to take a back seat. Now things have changed. Recent
research by UPS® has highlighted that many companies are
finding it difficult to develop supply chain capabilities that
can simultaneously take out costs whilst ensuring regulatory
compliance, track and trace, product security and stricter
temperature and shelf-life control.
Because of these pressures, a new approach to the design
and management of supply/demand networks in the industry
becomes imperative. In today’s marketplace, there is a need
for supply chains that are cost-effective, efficient and agile.
Companies operating in every industrial sector and in
every market around the world have been confronted in
recent years with significant challenges. These challenges
have come from numerous sources – economic recession,
demographic changes, geo-political upheavals to name but
a few. The healthcare and pharmaceutical industry has been
no exception and has been impacted by major changes in the
competitive and market environment.
Reliability, quality and a competitive price are table stakes in
the business of maintaining and repairing industrial facilities
and equipment, commonly known as Maintenance, Repair
and Operations (MRO). Given the nature of MRO, urgency can
often catapult to the top of the list of requirements. Sellers
who cannot consistently come through will almost certainly
be dropped from future consideration.
Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...Lora Cecere
Supply Chain Metrics That Matter will be a series of reports published intermittently throughout the year by Supply Chain Insights LLC. Within the world of Supply Chain Management (SCM), each industry is unique. To help companies understand differences, each report is a deep dive on a different industry.
While we find it useful to understand the evolution of supply chain excellence by comparing industries, we feel that the true stories of supply chain excellence can only be really understood by comparing what happened within a period by peer group. The goal of this series is to share these insights. These reports are intended for you to read, share and use to improve your supply chain decisions.
The average Consumer Products (CP) company is stronger in the execution of supply chain management practices than their retail or pharmaceutical counterparts, but as companies will see in later reports, CP progress has not been equal to that of High-tech and Electronics manufacturers.
CP companies (including both consumer packaged goods (CPG) and food & beverage companies) tend to be marketing-driven. They are struggling to understand the differences between new market-driven, and their well-oiled marketing-driven, supply chains. With a strong legacy in building persuasive marketing programs, the companies have leveraged a global “one-size-fits-all” push-based supply chain strategy. These traditional supply chain management (SCM) definitions have produced supply chains that respond, but don’t sense. They are efficient, but not adaptive. They tend to be long (greater than twenty weeks) with waste pockets between nodes.
The landscape of the industry has been greatly affected by mergers and acquisitions. In the past decade, 57 companies were absorbed into ten. The industry is still digesting this change. While most companies have 150 unique systems, the manufacturers in this industry will often have five times the industry average. Getting to the right data to improve decision making continues to be a challenge.
Put your supply chain to the test in Every Angle's brand new supply chain efficiency quiz. Will you discover new supply chain opportunity that will drive operational improvements across your entire value chain? Or better yet, are you running a world-class outfit that will achieve 100% efficiency?
During this quiz we test five key supply chain elements we've repeatedly found to absorb and waste astonishing amounts of working capital. Cash that could be released and reinvested elsewhere in the business, whilst improving the overall performance of the supply chain!
Remember to let us know how you score. You can follow us on Twitter @EveryAngleUK.
The EPP Life Sciences Executive Briefing is an ‘invitation-only’ executive meeting that aims to build a dialogue between CxO’s and industry pricing experts on emerging pricing and commercial topics in their industry. The European Pricing Platform - together with its partner Alliance Life Sciences - focus on bringing together a very exclusive and high level group of professionals from the Life Sciences Industry. EPP provides a discussion platform for no more than 30 of these top professionals in the business, creating a one-of-a-kind learning and networking experience. In short, some hours of thought provoking debate and global best practice at your fingertips. We're sure you want to be part of this exclusive group.
How to Add Agility and Customer Focus to the Healthcare Supply ChainUPS Longitudes
The global pharmaceutical and healthcare industry has
experienced a number of severe shocks to the system in
recent decades. What was once a sector where profits flowed
from ‘blockbuster’ drugs and a customer base willing to
pay premium prices has transformed into a quite different
world as a consequence of competition from generics along
with reduced budgets available to healthcare providers.
Compounding these problems are increasing regulatory
constraints and more challenging logistics requirements as
bio-pharmaceuticals and related products increase the need
for stricter control of temperature and shelf-life as they move
through the supply chain.
As a result there is now a significantly greater focus across
the sector on supply chain management. Previously, when
margins were higher and logistics costs were a relatively
small proportion of total costs, supply chain issues tended
to take a back seat. Now things have changed. Recent
research by UPS® has highlighted that many companies are
finding it difficult to develop supply chain capabilities that
can simultaneously take out costs whilst ensuring regulatory
compliance, track and trace, product security and stricter
temperature and shelf-life control.
Because of these pressures, a new approach to the design
and management of supply/demand networks in the industry
becomes imperative. In today’s marketplace, there is a need
for supply chains that are cost-effective, efficient and agile.
Companies operating in every industrial sector and in
every market around the world have been confronted in
recent years with significant challenges. These challenges
have come from numerous sources – economic recession,
demographic changes, geo-political upheavals to name but
a few. The healthcare and pharmaceutical industry has been
no exception and has been impacted by major changes in the
competitive and market environment.
Reliability, quality and a competitive price are table stakes in
the business of maintaining and repairing industrial facilities
and equipment, commonly known as Maintenance, Repair
and Operations (MRO). Given the nature of MRO, urgency can
often catapult to the top of the list of requirements. Sellers
who cannot consistently come through will almost certainly
be dropped from future consideration.
Supply Chain Metrics That Matter: A Focus on the Consumer Products Industry 2...Lora Cecere
Supply Chain Metrics That Matter will be a series of reports published intermittently throughout the year by Supply Chain Insights LLC. Within the world of Supply Chain Management (SCM), each industry is unique. To help companies understand differences, each report is a deep dive on a different industry.
While we find it useful to understand the evolution of supply chain excellence by comparing industries, we feel that the true stories of supply chain excellence can only be really understood by comparing what happened within a period by peer group. The goal of this series is to share these insights. These reports are intended for you to read, share and use to improve your supply chain decisions.
The average Consumer Products (CP) company is stronger in the execution of supply chain management practices than their retail or pharmaceutical counterparts, but as companies will see in later reports, CP progress has not been equal to that of High-tech and Electronics manufacturers.
CP companies (including both consumer packaged goods (CPG) and food & beverage companies) tend to be marketing-driven. They are struggling to understand the differences between new market-driven, and their well-oiled marketing-driven, supply chains. With a strong legacy in building persuasive marketing programs, the companies have leveraged a global “one-size-fits-all” push-based supply chain strategy. These traditional supply chain management (SCM) definitions have produced supply chains that respond, but don’t sense. They are efficient, but not adaptive. They tend to be long (greater than twenty weeks) with waste pockets between nodes.
The landscape of the industry has been greatly affected by mergers and acquisitions. In the past decade, 57 companies were absorbed into ten. The industry is still digesting this change. While most companies have 150 unique systems, the manufacturers in this industry will often have five times the industry average. Getting to the right data to improve decision making continues to be a challenge.
Put your supply chain to the test in Every Angle's brand new supply chain efficiency quiz. Will you discover new supply chain opportunity that will drive operational improvements across your entire value chain? Or better yet, are you running a world-class outfit that will achieve 100% efficiency?
During this quiz we test five key supply chain elements we've repeatedly found to absorb and waste astonishing amounts of working capital. Cash that could be released and reinvested elsewhere in the business, whilst improving the overall performance of the supply chain!
Remember to let us know how you score. You can follow us on Twitter @EveryAngleUK.
The EPP Life Sciences Executive Briefing is an ‘invitation-only’ executive meeting that aims to build a dialogue between CxO’s and industry pricing experts on emerging pricing and commercial topics in their industry. The European Pricing Platform - together with its partner Alliance Life Sciences - focus on bringing together a very exclusive and high level group of professionals from the Life Sciences Industry. EPP provides a discussion platform for no more than 30 of these top professionals in the business, creating a one-of-a-kind learning and networking experience. In short, some hours of thought provoking debate and global best practice at your fingertips. We're sure you want to be part of this exclusive group.
Supply Chain Metrics That Matter: A Focus on RetailLora Cecere
■Survey Details: The basis of this report is publically available information from corporate annual reports from the period of 2000-2012. In this report, we use this data to understand the past trends and future projections of retail industry supply chains. To drive insights, we augment this financial data with information that we have obtained through interactions with retail clients and recent insights from our quantitative research studies.
■Objective: To use financial balance sheet data coupled with recent research to better understand the state of retail supply chains.
■Hypothesis: With the shifts in the channel, the role of the store has changed, and there is a need to redefine value in the value chain.
What Drives Inventory Effectiveness in a Market-Driven World? Lora Cecere
Survey Details: The research for this report was conducted from February 12 - October 8, 2015. Surveys were conducted among Manufacturers, Retailers, and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who use (and are familiar with) inventory optimization software (n=64). Respondents were evenly split between those using basic (ERP or ERP+APS) and advanced (software in addition to ERP/APS) software. All surveys were conducted by Supply Chain Insights.
Objective: To understand the impact of inventory optimization software on supply chain excellence. NOTE: inventory optimization software was defined as "any form of ERP (Enterprise Resource Planning), APS (Advanced Planned Software), or sophisticated inventory planning tools."
Highlight: Companies who use advanced software are more likely to be satisfied with their software, to be effective at making inventory decisions and to drive a return on investment for their software.
THE AGILE SUPPLY CHAIN IN TURBULENT AND VOLATILE MARKETIAEME Publication
Agility is the fundamental characteristic of a supply chain needed for survival in turbulent and volatile markets, which are becoming normal, as product life cycles shorten and environmental forces create additional uncertainty resulting in higher risk in the supply chain management. Agility further helps in providing the right product, at the right time to the consumer, which is the main objective of any supply chain.
Being responsive is an increasingly important skill for firms in today's global economy; thus firms must be agile. Naturally, it follows that an organization's agility depends on its supply chain being agile. However, achieving supply chain agility is a function of other abilities within the organization, specifically supply chain flexibility and technology integration. The integration enables a firm to tap its supply chain flexibility which in turn results in higher supply chain agility and ultimately higher competitive business performance.
Supply Chain Metrics That Matter: A Focus on Consumer ElectronicsLora Cecere
Executive Overview
Supply chain management is thirty years old. The year 2012 marked the end of the third decade of the evolution of supply chain practices. In the journey for supply chain excellence, each industry has progressed at their own rate based on their own set of opportunities and limitations including market drivers, industry factors and product cycles. No industry has had greater obstacles to overcome than consumer electronics, and no industry has made more progress.
Consumer electronics has led the pack in managing complexity, improving growth and margin performance, reducing inventory, and accelerating productivity in the face of complexity (revenue per employee). Was it an accident? No, we don’t think so. Instead, we see it as an advanced case study of supply chain excellence in action.
Ask any executive of the consumer electronics industry if supply chain matters and you will get a resounding “YES!” While other industries are more likely to define supply chain efforts as a departmental effort focused within silos—procurement, transportation/distribution or manufacturing—the consumer electronics sector is more likely to model the supply chain as a value network focused on end-to-end improvement. They are also more likely to value the planning function and excel at it, as well as understand how to integrate new product launch efforts with value chain design.
For most companies, the consumer electronics industry offers a lot of lessons and insights for supply chain leaders. It is for this reason that we share this report.
Setting the Stage
Over the course of the last decade, the consumer electronics industry has outperformed most other industries in four significant areas: growth, profitability, cycle management, and complexity. Balancing these four categories of metrics is what we term the Supply Chain Effective Frontier, further profiled in our recent report: Conquering the Supply Chain Effective Frontier.
Supply Chain Metrics That Matter: A Focus on Food & Beverage Companies 2017Lora Cecere
Executive Overview
The Food and Beverage industry is a crowded market with many players. While the competition is intense, demand for healthy and fresh food products is high, and the industry is poised to grow in a volatile economy. During tough economic times, consumers will cut spending on products they do not need; however, they will not cut spending on food and beverages to the same extent.
The key to a competitive advantage is aligning and synchronizing the supply chain to manage material spend in the face of ever-changing demand. Few do this well. Consumers want local and fresh. They want brands they can trust. Traditional food manufacturing supply chains are in conflict, offering packaged foods with long shelf lives.
To try to drive excitement, companies invested in line extensions, a variety of different flavors, sizes, and variety packs, all causing supply chain difficulties for them. This complexity added cost, increased demand volatility, and created uncertainty. As a result, companies struggle to anticipate which flavor, or size, consumers will demand at a given time.
Consumers are fickle about what they eat. As a result, the Food and Beverage Industry arguably sees more consumer shift in demand than any other industry. Thus it becomes crucial that food and beverage companies implement outside-In processes. Becoming market-driven allows companies to better sense shifts in demand.
The Food and Beverage industry is also heavily regulated, due to it being a potential risk to so many consumers. The Food Safety Modernization Act dictates that companies must use approved suppliers and perform due diligence in monitoring supplier activity. Product fraud in the Global Food and Beverage industry has been extremely prevalent and presents a high-level risk to the company. Olive oil containing motor oil or corn oil, and alcoholic drinks containing ethanol are examples of fraudulent food products.
Traceability from supplier to consumer becomes ever more important for this industry to ensure product authenticity, as well as establishing trust with the consumer. Smart labeling and track-and-trace visibility are industry imperatives.
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013Lora Cecere
The bricks and mortar retailer is being squeezed. Growth is slowing and margin is under pressure. With the rise of e-commerce, the role of the store is being redefined. It is about service and the customer experience. As a result, it is time to rethink the metrics that matter and focus outside-in on the shopper experience.
In this report, we share insights on the current state of bricks and mortar retail and offer our suggestions.
Brick & mortar retailers have weathered an intense decade with the persistent rise of e-commerce. The shopper has changed and recovery from the Great Recession is ongoing, but slow. Our previous Supply Chain Metrics That Matter: A Focus on Retail report focused on the broader industry trends affecting five different divisions of retailers and the challenges of multi-channel retail. This report narrows the focus to three segments of brick & mortar retailers struggling to adapt to the new world.
A retailer is not a retailer. We believe that retailers should be compared by business model. We do not believe that one can throw all retailers together and identify the “most improved” or “best” supply chain. There are too many variables and circumstances affecting the retail landscape to make valid comparisons. In our research, we find that small and well-defined peer groups offer the best way forward for understanding both segment and industry specific trends.
The industry segments analyzed in this report are grocery, mass and specialty. Grocery retailers are involved in the sale of perishable and non-perishable food stuffs. Mass retailers are larger companies focused on providing a comprehensive retail experience to their customers. Finally, specialty retailers are dedicated to specific customers, activities and goods. The companies in this analysis represent both American and global retailers.
Our grocery peer group consists of Carrefour, Delhaize Group, Safeway and The Kroger Co. The mass retailer peer group includes Costco, Metro, Target and Walmart. The choice of specialty retailers was by far the most difficult because there are so many dedicated stores in this category. For this publication, our peer group includes Bed Bath & Beyond, Dick’s Sporting Goods, Foot Locker and Ross Stores. Additional information about all of these companies is presented in the Appendix.
Is Mobile the New Answer to Propel Growth?
A new battle wages to redesign the shopping experience. All retailers are turning to mobility, and the use of digital technologies, to capture market share. While mobile strategies offer great opportunities for the extended supply chain, from the shopper through supplier’s supplier, the current focus is on demand generation. It is early. The efforts are in test mode, but excitement abounds.
A Positive Outlook: Fourth Annual State of the Retail Supply Chain ReportJDA Software
What's top of mind for retail executives? Enhancing fulfillment capabilities. Nearly 90 percent of retailers say that direct-to-consumer fulfillment issues will command a greater level of attention from their supply chain management teams to support online and mobile sales. This according to The Fourth Annual The State of the Retail Supply Chain Study, a JDA sponsored study conducted by Auburn University and the Retail Industry Leaders Association.
For more information about the report and how you can achieve Retail. In Sync. with JDA, visit:
http://now.jda.com/RILA-AuburnStudy-2014.html
Delivering Next-Generation Commercial Capabilities within the Pharmaceutical Industry
This Point of View paper, aimed at life sciences Executive Management and leaders in Commercial Operations and Commercial Excellence, provides a blueprint for how forward-looking pharmaceutical companies can build a transformative commercial engine for strategic advantage. Key to this process is the collection and interpretation of the vast array of healthcare data now available. The paper explains how companies can use the insights derived from this information to develop globally consistent, yet locally relevant, customer solutions. It also explores a new collaborative model that partners external analytical, technological and functional area expertise with the client’s internal resources to create cost efficiencies, build internal capabilities and improve commercial processes that fuel growth.
Preserving Supply Base Integrity During an Economic Downturn (15 Page Article)
Are Your Organization’s Current Policies and Practices a Threat to Your Supply Base?
Do your suppliers perceive your current e-procurement strategy as a threat or a benefit to their organization? While it is a simple question, the answer is one that will ultimately determine the success or failure of your e-procurement initiative, and in these challenging financial times even your business itself.
This article will examine how the e-LYNXX methodology accomplishes this seemingly paradoxical, and some would suggest contradictory outcome from the perspective of both the buyers and sellers of specification-defined goods and services. In the end, the information within this article will enable you to ultimately be the judge as to how effective the solution is in achieving the elusive win-win result outcome.
Winners will improve responsiveness while cutting costsCBX Software
In today’s highly complex global sourcing environment, apparel companies must aggressively explore more opportunities, including the pursuit of new sourcing countries and partners, increasing value-added services and upping supply chain efficiency.
State of Business Networks in Process Industries 2014 - Summary ChartsLora Cecere
Executive Summary
Today, the performance of an organization hinges more than ever on the effectiveness of flows between, and amongst, trading partners. It is not easy. The supply chain is not linear, and the relationships extend across geographic borders and industry sectors.
Outsourcing relationships have grown in the last decade; however, the automation of these networks has not kept pace. In the words of one respondent interviewed for this report in a facilitated workshop to review the data, “Today, we connect trading partners through spreadsheets, email, phone and fax. It is antiquated. I liken it to baling wire, chewing gum and duct tape. I need solutions that can synchronize and harmonize data across trading partners in real-time. My operating committee does not think that it is sexy to invest in B2B solutions, but it is needed. Today, it is almost impossible for us to understand the manufacturing status of purchase orders, and have accurate information readily on supply chain visibility of in-transit shipments. As a result, we make the wrong decisions, and have unnecessary wait times to get information.”
These comments echo the findings in this study. Respondents operate value networks, but they struggle to get to the data they need. The outsourcing of logistics is greater than manufacturing. Eighty-one percent of companies outsource logistics. The volume of outsourced logistics is 48% on average. In contrast, 66% of companies outsource manufacturing. The outsourced volume manufacturing volume varies, but averages 15%.
While the networks are complex, and the goals are many, progress is hard to track. This leads many supply chain leaders to ask, “What is the current state? What is the opportunity?” Answering these questions is the goal of this report.
Let’s start with the current state. As seen in Figure 2, the average respondent in this report believes that the supply chain today is more controlled and global than compared to two years ago. While they have made improvements in agility and proactivity, there is much more left to do. The largest challenges are in the use of outside-in data to improve channel sensing and reduce risk. While the supply chain today has made progress in transactional efficiency, companies are less competent at sensing opportunities and mitigating risks.
This research paper presents an analysis of UK's supermarket industry using the STEEPLE model. The paper offers good insight on how to apply the STEEPLE model in analyzing the external business environment
Aircraft IT MRO eJournal "A fresh look at information" How I See ITMichael Denis
Product and Service Lifecycle Management are merging. Turning aviation information into knowledge requires real time, mobile content lifecycle management. This is a fresh look at aviation information.
Supply Chain Metrics That Matter: A Focus on RetailLora Cecere
■Survey Details: The basis of this report is publically available information from corporate annual reports from the period of 2000-2012. In this report, we use this data to understand the past trends and future projections of retail industry supply chains. To drive insights, we augment this financial data with information that we have obtained through interactions with retail clients and recent insights from our quantitative research studies.
■Objective: To use financial balance sheet data coupled with recent research to better understand the state of retail supply chains.
■Hypothesis: With the shifts in the channel, the role of the store has changed, and there is a need to redefine value in the value chain.
What Drives Inventory Effectiveness in a Market-Driven World? Lora Cecere
Survey Details: The research for this report was conducted from February 12 - October 8, 2015. Surveys were conducted among Manufacturers, Retailers, and Wholesalers/Distributors/Co-operatives with $250M+ in revenue and who use (and are familiar with) inventory optimization software (n=64). Respondents were evenly split between those using basic (ERP or ERP+APS) and advanced (software in addition to ERP/APS) software. All surveys were conducted by Supply Chain Insights.
Objective: To understand the impact of inventory optimization software on supply chain excellence. NOTE: inventory optimization software was defined as "any form of ERP (Enterprise Resource Planning), APS (Advanced Planned Software), or sophisticated inventory planning tools."
Highlight: Companies who use advanced software are more likely to be satisfied with their software, to be effective at making inventory decisions and to drive a return on investment for their software.
THE AGILE SUPPLY CHAIN IN TURBULENT AND VOLATILE MARKETIAEME Publication
Agility is the fundamental characteristic of a supply chain needed for survival in turbulent and volatile markets, which are becoming normal, as product life cycles shorten and environmental forces create additional uncertainty resulting in higher risk in the supply chain management. Agility further helps in providing the right product, at the right time to the consumer, which is the main objective of any supply chain.
Being responsive is an increasingly important skill for firms in today's global economy; thus firms must be agile. Naturally, it follows that an organization's agility depends on its supply chain being agile. However, achieving supply chain agility is a function of other abilities within the organization, specifically supply chain flexibility and technology integration. The integration enables a firm to tap its supply chain flexibility which in turn results in higher supply chain agility and ultimately higher competitive business performance.
Supply Chain Metrics That Matter: A Focus on Consumer ElectronicsLora Cecere
Executive Overview
Supply chain management is thirty years old. The year 2012 marked the end of the third decade of the evolution of supply chain practices. In the journey for supply chain excellence, each industry has progressed at their own rate based on their own set of opportunities and limitations including market drivers, industry factors and product cycles. No industry has had greater obstacles to overcome than consumer electronics, and no industry has made more progress.
Consumer electronics has led the pack in managing complexity, improving growth and margin performance, reducing inventory, and accelerating productivity in the face of complexity (revenue per employee). Was it an accident? No, we don’t think so. Instead, we see it as an advanced case study of supply chain excellence in action.
Ask any executive of the consumer electronics industry if supply chain matters and you will get a resounding “YES!” While other industries are more likely to define supply chain efforts as a departmental effort focused within silos—procurement, transportation/distribution or manufacturing—the consumer electronics sector is more likely to model the supply chain as a value network focused on end-to-end improvement. They are also more likely to value the planning function and excel at it, as well as understand how to integrate new product launch efforts with value chain design.
For most companies, the consumer electronics industry offers a lot of lessons and insights for supply chain leaders. It is for this reason that we share this report.
Setting the Stage
Over the course of the last decade, the consumer electronics industry has outperformed most other industries in four significant areas: growth, profitability, cycle management, and complexity. Balancing these four categories of metrics is what we term the Supply Chain Effective Frontier, further profiled in our recent report: Conquering the Supply Chain Effective Frontier.
Supply Chain Metrics That Matter: A Focus on Food & Beverage Companies 2017Lora Cecere
Executive Overview
The Food and Beverage industry is a crowded market with many players. While the competition is intense, demand for healthy and fresh food products is high, and the industry is poised to grow in a volatile economy. During tough economic times, consumers will cut spending on products they do not need; however, they will not cut spending on food and beverages to the same extent.
The key to a competitive advantage is aligning and synchronizing the supply chain to manage material spend in the face of ever-changing demand. Few do this well. Consumers want local and fresh. They want brands they can trust. Traditional food manufacturing supply chains are in conflict, offering packaged foods with long shelf lives.
To try to drive excitement, companies invested in line extensions, a variety of different flavors, sizes, and variety packs, all causing supply chain difficulties for them. This complexity added cost, increased demand volatility, and created uncertainty. As a result, companies struggle to anticipate which flavor, or size, consumers will demand at a given time.
Consumers are fickle about what they eat. As a result, the Food and Beverage Industry arguably sees more consumer shift in demand than any other industry. Thus it becomes crucial that food and beverage companies implement outside-In processes. Becoming market-driven allows companies to better sense shifts in demand.
The Food and Beverage industry is also heavily regulated, due to it being a potential risk to so many consumers. The Food Safety Modernization Act dictates that companies must use approved suppliers and perform due diligence in monitoring supplier activity. Product fraud in the Global Food and Beverage industry has been extremely prevalent and presents a high-level risk to the company. Olive oil containing motor oil or corn oil, and alcoholic drinks containing ethanol are examples of fraudulent food products.
Traceability from supplier to consumer becomes ever more important for this industry to ensure product authenticity, as well as establishing trust with the consumer. Smart labeling and track-and-trace visibility are industry imperatives.
Supply Chain Metrics That Matter: A Focus on Brick & Mortar Retail-18 FEB 2013Lora Cecere
The bricks and mortar retailer is being squeezed. Growth is slowing and margin is under pressure. With the rise of e-commerce, the role of the store is being redefined. It is about service and the customer experience. As a result, it is time to rethink the metrics that matter and focus outside-in on the shopper experience.
In this report, we share insights on the current state of bricks and mortar retail and offer our suggestions.
Brick & mortar retailers have weathered an intense decade with the persistent rise of e-commerce. The shopper has changed and recovery from the Great Recession is ongoing, but slow. Our previous Supply Chain Metrics That Matter: A Focus on Retail report focused on the broader industry trends affecting five different divisions of retailers and the challenges of multi-channel retail. This report narrows the focus to three segments of brick & mortar retailers struggling to adapt to the new world.
A retailer is not a retailer. We believe that retailers should be compared by business model. We do not believe that one can throw all retailers together and identify the “most improved” or “best” supply chain. There are too many variables and circumstances affecting the retail landscape to make valid comparisons. In our research, we find that small and well-defined peer groups offer the best way forward for understanding both segment and industry specific trends.
The industry segments analyzed in this report are grocery, mass and specialty. Grocery retailers are involved in the sale of perishable and non-perishable food stuffs. Mass retailers are larger companies focused on providing a comprehensive retail experience to their customers. Finally, specialty retailers are dedicated to specific customers, activities and goods. The companies in this analysis represent both American and global retailers.
Our grocery peer group consists of Carrefour, Delhaize Group, Safeway and The Kroger Co. The mass retailer peer group includes Costco, Metro, Target and Walmart. The choice of specialty retailers was by far the most difficult because there are so many dedicated stores in this category. For this publication, our peer group includes Bed Bath & Beyond, Dick’s Sporting Goods, Foot Locker and Ross Stores. Additional information about all of these companies is presented in the Appendix.
Is Mobile the New Answer to Propel Growth?
A new battle wages to redesign the shopping experience. All retailers are turning to mobility, and the use of digital technologies, to capture market share. While mobile strategies offer great opportunities for the extended supply chain, from the shopper through supplier’s supplier, the current focus is on demand generation. It is early. The efforts are in test mode, but excitement abounds.
A Positive Outlook: Fourth Annual State of the Retail Supply Chain ReportJDA Software
What's top of mind for retail executives? Enhancing fulfillment capabilities. Nearly 90 percent of retailers say that direct-to-consumer fulfillment issues will command a greater level of attention from their supply chain management teams to support online and mobile sales. This according to The Fourth Annual The State of the Retail Supply Chain Study, a JDA sponsored study conducted by Auburn University and the Retail Industry Leaders Association.
For more information about the report and how you can achieve Retail. In Sync. with JDA, visit:
http://now.jda.com/RILA-AuburnStudy-2014.html
Delivering Next-Generation Commercial Capabilities within the Pharmaceutical Industry
This Point of View paper, aimed at life sciences Executive Management and leaders in Commercial Operations and Commercial Excellence, provides a blueprint for how forward-looking pharmaceutical companies can build a transformative commercial engine for strategic advantage. Key to this process is the collection and interpretation of the vast array of healthcare data now available. The paper explains how companies can use the insights derived from this information to develop globally consistent, yet locally relevant, customer solutions. It also explores a new collaborative model that partners external analytical, technological and functional area expertise with the client’s internal resources to create cost efficiencies, build internal capabilities and improve commercial processes that fuel growth.
Preserving Supply Base Integrity During an Economic Downturn (15 Page Article)
Are Your Organization’s Current Policies and Practices a Threat to Your Supply Base?
Do your suppliers perceive your current e-procurement strategy as a threat or a benefit to their organization? While it is a simple question, the answer is one that will ultimately determine the success or failure of your e-procurement initiative, and in these challenging financial times even your business itself.
This article will examine how the e-LYNXX methodology accomplishes this seemingly paradoxical, and some would suggest contradictory outcome from the perspective of both the buyers and sellers of specification-defined goods and services. In the end, the information within this article will enable you to ultimately be the judge as to how effective the solution is in achieving the elusive win-win result outcome.
Winners will improve responsiveness while cutting costsCBX Software
In today’s highly complex global sourcing environment, apparel companies must aggressively explore more opportunities, including the pursuit of new sourcing countries and partners, increasing value-added services and upping supply chain efficiency.
State of Business Networks in Process Industries 2014 - Summary ChartsLora Cecere
Executive Summary
Today, the performance of an organization hinges more than ever on the effectiveness of flows between, and amongst, trading partners. It is not easy. The supply chain is not linear, and the relationships extend across geographic borders and industry sectors.
Outsourcing relationships have grown in the last decade; however, the automation of these networks has not kept pace. In the words of one respondent interviewed for this report in a facilitated workshop to review the data, “Today, we connect trading partners through spreadsheets, email, phone and fax. It is antiquated. I liken it to baling wire, chewing gum and duct tape. I need solutions that can synchronize and harmonize data across trading partners in real-time. My operating committee does not think that it is sexy to invest in B2B solutions, but it is needed. Today, it is almost impossible for us to understand the manufacturing status of purchase orders, and have accurate information readily on supply chain visibility of in-transit shipments. As a result, we make the wrong decisions, and have unnecessary wait times to get information.”
These comments echo the findings in this study. Respondents operate value networks, but they struggle to get to the data they need. The outsourcing of logistics is greater than manufacturing. Eighty-one percent of companies outsource logistics. The volume of outsourced logistics is 48% on average. In contrast, 66% of companies outsource manufacturing. The outsourced volume manufacturing volume varies, but averages 15%.
While the networks are complex, and the goals are many, progress is hard to track. This leads many supply chain leaders to ask, “What is the current state? What is the opportunity?” Answering these questions is the goal of this report.
Let’s start with the current state. As seen in Figure 2, the average respondent in this report believes that the supply chain today is more controlled and global than compared to two years ago. While they have made improvements in agility and proactivity, there is much more left to do. The largest challenges are in the use of outside-in data to improve channel sensing and reduce risk. While the supply chain today has made progress in transactional efficiency, companies are less competent at sensing opportunities and mitigating risks.
This research paper presents an analysis of UK's supermarket industry using the STEEPLE model. The paper offers good insight on how to apply the STEEPLE model in analyzing the external business environment
Aircraft IT MRO eJournal "A fresh look at information" How I See ITMichael Denis
Product and Service Lifecycle Management are merging. Turning aviation information into knowledge requires real time, mobile content lifecycle management. This is a fresh look at aviation information.
The internet of things started in the aerospace and aviation industry. Sense and respond logistics, service lifecycle management, product lifecycle management, predictive analytics, diagnostics, prescription, prognosis, and autonomics round out current innovation.
As China continues to upgrade its economy and add value-added services, it will transition from ‘Made in China’ to ‘Created in China’
SmithStreetSolutions is a Shanghai-based consulting and advisory company. Often described as a search engine to China, we provide answers and solutions to help our clients in creating successful business and investment strategies for the China market.
Made for China. Launch Your Consumer Brand in China in 3 Steps.
The Chinese consumer market surpassed Japan as the second largest consumer market after the USA in 2013. Chinese consumers look for quality and innovation and recognize these qualities in European brands. Large global mass consumer brands as well as smaller niche brands can profit from the growing purchasing power of Chinese consumers. Entrepreneurs approaching the Chinese consumer market start by making a market study first. Questions here are how much demand is there for the product, what about price levels, competition, how should I adapt my product to local market needs etc.
In my presentation I analyse different income levels, geographical income spread, growth in different consumer categories, 6 different consumer types based on income and social orientation, and important market trends. Next we discuss the advantages and disadvantages of physical presence and online sales channels, as well as some practical issues related to business registration in China. Then, I go in to detail on how to sell and promote your products through e-commerce channels like Alibaba's Tmall.com and m-commerce channels like Tencent's Wechat.
This presentation was given to an audience of students in Sinology and Applied Economics at the University of Ghent in Autumn 2014.
China’s brands haven’t yet made a notable impact on the global consumer market, but will that change in the near future? Before the country can develop a cohort of strong brands, its marketers will have to remake what “Made in China” means to consumers. A leading crop of Chinese brands are already chipping away at some of the key factors standing in the way of global success as China actively seeks to export more than just the rest of the world’s manufactured goods.
This report details the external and internal factors hindering the efforts of Chinese brands to take root in developed markets. It also details some of the strategies that prominent brands, from Lenovo and Li-Ning to Haier and Huawei, are deploying to knock down these roadblocks.
Made in China: 8 Insights into the Chinese ConsumerBrand Genetics
A succinct overview of key factors influencing Chinese Consumer behaviour.
China truly is a land of opportunity with 30 years of growth that have helped lift millions out of poverty, enriched a middle class that is expanding fast and created 2.7 million millionaires and over 250 billionaires (US$). Given this speed of change and the complexity of a country with a population of 1.35 billion, making sense of the consumer and market context is not just useful, it's vital for success. Even if you're not working directly with China, you may be feeling its growing influence.
At Brand Genetics we're constantly working to understand the direction of change in global markets and identify the implications and opportunities for brands. To share some of our learnings the attached Speed Briefing outlines 8 key insights into the fast evolving world of the Chinese consumer.
This slides attempt to provide possible solutions to help China adapt the new trade environment and deepen integration into GVCs in the new era of 2020s.
Perspectives on China from the Middle MarketCBIZ, Inc.
Lately, there has been discussion around the impact of trade disputes, pandemics and exchange rates on the supply chains of middle-market manufacturers and distributors, as well as those selling products within China. In this article, our experts offer six perspectives for U.S. Manufacturers & Distributors with relationships in China.
The Puzzle of Innovation in China - Adding the Missing Parts (goetzpartners s...Wolfram Römhild
+ Innovation: the key to continuing growth in China
+ A plan for the future: setting an innovation road map for MNCs
+ Overcoming barriers: taking the lead with proactive measures
+ Looking inward: a way to identify innovation capabilities
Methodology
The opinions and data presented in this report are based on goetzpartners’ work experience with multinational corporations in China. In addition, a comprehensive innovation survey was jointly undertaken with our partners from renowned Chinese institutions. In cooperation with Professor Zheng Han, Chair of Innovation and Entrepreneurship at Tongji University, and the
German Chamber of Commerce in Shanghai, we interviewed more than 100 German corporations operating subsidiaries in the Chinese market, with two thirds of them being present in China for more than ten years.
https://www.goetzpartners.com/publications/studies/
WAS UNS CHINAS AUFSTIEG ZUR INNOVATIONSMACHT LEHRT [EN].pdfSnarky Security
Do you remember when the West laughed at the mere thought that China was a leader in innovation? Well, the DGAP article is here to remind you that China was busy not only producing everything, but also innovating, giving Silicon Valley the opportunity to earn its money. But there are rumors about barriers to market entry and slowing economic growth, which may hinder their parade of innovations. And let's not forget about the espionage law, because of which Western companies are shaking with fear, too scared to stick their noses into the Chinese market, or because they are not really needed in this market anymore? But the West argues that despite China's grandiose plans to become self-sufficient, they seem unable to get rid of their dependence on Western technology, especially these extremely important semiconductors.
Luxury and Cosmetics Market and Consumer Trends Chris Cadden
"Increase the digital effort — Luxury companies are behind in an increasingly digital world. New technology has changed the way companies do business, providing new communication channels, with buying behaviors evolving and the emergence of a new segment, the “millennials.” Immediacy is key, so there is a constant need to innovate within the digital world, which seems to contrast with the exclusivity known for its pole position at the core of the luxury market. Luxury brands have to manage dual aspects; namely to maintain their heritage and create long-term value while responding to consumers’ expectations and trying to offer instant gratification. Without innovation companies are risking losing ground to more dynamic, digitally savvy players." -Roberto Bonacina
though "The future for MNCs in China" report was released in 2012 by KMPG, the content is still valid and shed the light for MNCs planning ahead...what are the key points from the report:
1 Rising labor cost
2 Shortage of Talent
3 Pay-for-performance is not working in China bcos of the Income tax system, ppl prefers low income to take back home.
4 Capital Market has not yet opened.
5 Biz license issue
6 Lack of innovation and management skills for future leaders in China
7 JV - has become popular, cos of license issue (if you cant beat them, join them: MNCs and Local companies leverage each other).
8 Corporate Incentive: tech firm corporate tax 25% to 15%, R&D has 50% bonus reduction.
9 Shared Service and outsourcing
10 Payment and cloud computing
Besides, it's convincing reading the biz leaders insight from different service sector, luxury (Bluebell), legal, Biz centre (the Executive Centre), Outsourcing (Genpact), Apparel (Avery Dennison), Logistics (FedEx), and of course KPMG itself.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Signature content of MTBiz is its Article of the Month (AoM), as depicted on Cover Page of each issue, with featured focus on different issues that fall into the wide definition of Market, Business, Organization and Leadership. The AoM also covers areas on Innovation, Central Banking, Monetary Policy, National Budget, Economic Depression or Growth and Capital Market. Scale of coverage of the AoM both, global and local subject to each issue.
MTBiz is a monthly Market Review produced and distributed by Group R&D, MTB since 2009.
Chapter 5 How Managers Use Balance of Payments Data – p.213Do.docxrobertad6
Chapter 5: How Managers Use Balance of Payments Data – p.213
Do some research on the items in the table below and see if you see a pattern with the various country’s economies:
1. What is the G7?
2. What is the E7?
G7 Countries
Continent where the country lies
GDP
Ease of Doing Business
1.
2.
3.
4.
5.
6.
7.
NOTE: When you find the GDP (Gross National Product) note the year – you may not have 2018 statistics. That is okay –find the latest data available. You may need to search for the Ranking of Ease of Doing Business – and then find the countries that make up the G7 or the E7.
NEXT PAGE!
E7 Countries
Continent where the country lies
GDP
Ease of Doing Business
1.
2.
3.
4.
5.
6.
7.
A. Compare the 2 groups of countries – explain your findings.
Globalization Effects on Country Institutions, People and Business
Chapter 3
Key Points for the Chapter
Economic development comprises positive economic growth and entails changes in a country’s political, economic, and cultural institutions, as well as in individual values, attitudes, and behaviors.
Economic development requires resources from public and private sectors, both internal and external.
Technology transfers by international corporations comprise manufacturing technologies, management organizations, and marketing know-how.
Intro: The Economic Development Process
Economic development is the progress countries make in living standards as they experience positive economic growth and the changes occurring in societal and cultural institutions and values as nations move toward more advanced stages of industrialization.
Economic progress demonstrates human progress, and more pragmatically, it keeps politicians in power, companies busy, and consumers (and voters) optimistic about the future.
Technology Transfers
International trade, investments, and global media have opened world markets up to a variety of modernizing influences.
In general terms, technology transfers occur as corporations enter new markets with products, technologies, lifestyles, and business methods developed in their home and other international markets.
Technology transfers first affect urban segments of developing countries where there are developed infrastructures and pocket of economically significant customers.
As media become commercialization and distribution channels are built into rural areas, greater proportions of developing-country populations come into contact with modernization influences.
4
Positive Effects
Positive effects occur as societies are exposed to broad varieties of products that make lives easier.
Convenience products such as packaged foods, and consumer durables such as refrigerators, radios, televisions, and stoves have positive effects on consumer lifestyles.
New technologies in manufacturing and distribution make products cheaper and more widely available. They provide employment opportunities for lo.
Kevin Lynch on Innovation at IPAC Annual Conference August 20 2012Shahab Khan
“THE NEW GLOBAL REALITY: YOU WANT TO BE
COMPETITIVE, YOU BETTER BE INNOVATIVE!”
by
The Honourable Kevin G. Lynch
Vice-Chair, BMO Financial Group
to
Institute of Public Administration of Canada
L'Institut d'administration publique du Canada
64th Annual Conference
St. John’s Newfoundland
August 20, 2012
The Export Imperative: Business Survey on Foreign ExpansionRegus
Companies are concerned about ‘place’ and ‘people’ when contemplating foreign expansion. Foreign workspace has to be flexible with only very short-term commitments. Opinion is divided over whether foreign operations should be overseen by local managers or whether a boss should be shipped in from the home country. This decision probably rests on the level of direct customer interaction that the firm envisages in the foreign market.
The report concludes that the more companies expand and diversify outside their domestic markets, the more productive they are likely to be, making a significant contribution to the vibrancy and stability of the global economy.
Over 12,000 business respondents from the Regus global contacts database spanning 85 countries were interviewed during August 2011. The Regus global contacts database of over 1 million business-people worldwide is highly representative of business owners and senior managers across the globe.
The trade landscape, as we know it, is changing: Is India prepared?aakash malhotra
In report of August 2022, Deloitte India discusses the crucial changes occurring in the Indian economy and how exports contribute to India's GDP and vision of becoming a US$5 trillion economy.
http://pwc.to/1lN91cC
Comme tous les mois, l’équipe d’économistes de PwC publie une note sur la situation macro-économique mondiale. Ce mois-ci, focus sur l’accroissement des inégalités dans les pays matures ; les incertitudes concernant la croissance chinoise ; et les prévisions de croissance pour la Grande-Bretagne.
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Valters Lauzums
E-commerce in 2024 is characterized by a dynamic blend of opportunities and significant challenges. Supply chain disruptions and inventory shortages are critical issues, leading to increased shipping delays and rising costs, which impact timely delivery and squeeze profit margins. Efficient logistics management is essential, yet it is often hampered by these external factors. Payment processing, while needing to ensure security and user convenience, grapples with preventing fraud and integrating diverse payment methods, adding another layer of complexity. Furthermore, fulfillment operations require a streamlined approach to handle volume spikes and maintain accuracy in order picking, packing, and shipping, all while meeting customers' heightened expectations for faster delivery times.
Amid these operational challenges, customer data has emerged as an important strategy. By focusing on personalization and enhancing customer experience from historical behavior, businesses can deliver improved website and brand experienced, better product recommendations, optimal promotions, and content to meet individual preferences. Better data analytics can also help in effectively creating marketing campaigns, improving customer retention, and driving product development and inventory management.
Innovative formats such as social commerce and live shopping are beginning to impact the digital commerce landscape, offering new ways to engage with customers and drive sales, and may provide opportunity for brands that have been priced out or seen a downturn with post-pandemic shopping behavior. Social commerce integrates shopping experiences directly into social media platforms, tapping into the massive user bases of these networks to increase reach and engagement. Live shopping, on the other hand, combines entertainment and real-time interaction, providing a dynamic platform for showcasing products and encouraging immediate purchases. These innovations not only enhance customer engagement but also provide valuable data for businesses to refine their strategies and deliver superior shopping experiences.
The e-commerce sector is evolving rapidly, and businesses that effectively manage operational challenges and implement innovative strategies are best positioned for long-term success.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Short video marketing has sweeped the nation and is the fastest way to build an online brand on social media in 2024. In this session you will learn:- What is short video marketing- Which platforms work best for your business- Content strategies that are on brand for your business- How to sell organically without paying for ads.
Digital marketing is the art and science of promoting products or services using digital channels to reach and engage with potential customers. It encompasses a wide range of online tactics and strategies aimed at increasing brand visibility, driving website traffic, generating leads, and ultimately, converting those leads into customers.
https://nidmindia.com/
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
Key Takeaways:
How to use the Video Matrix
How to use additional "Lenses"
Where to source original video ideas
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction.
No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.
The Forgotten Secret Weapon of Digital Marketing: Email
Digital marketing is a rapidly changing, ever evolving industry--Influencers, Threads, X, AI, etc. But one of the most effective digital marketing tools is also one of the oldest: Email. Find out from two Houston-based digital experts how to maximize your results from email.
Key Takeaways:
Email has the best ROI of any digital tactic
It can be used at any stage of the customer journey
It is increasingly important as the cookie-less future gets closer and closer
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
Your Path to Profits - The Game-Changing Power of a Marketing OS for Your Bus...
Made in China 2.0
1.
2. FOREWORD
Replacement of old industries has entered a crucial phase
China's export manufacturing industry: challenges and opportunities
INTRODUCTION
Learning from the leaders admist economic transformation
NOTE ON REPORTING
EXECUTIVE SUMMARY
UPDATE ON CHINA'S EXPORT MANUFACTURERS
A strong sector, starting to slow
Headwinds ahead
Challenges to capturing opportunities abroad
A buyer's market
MADE IN CHINA 2.0 READINESS INDEX
Made in China 2.0 Priorities
Recognition of the Made in China 2.0 Priorities
Performance of the Made in China 2.0 Priorities
Made in China 2.0 Readiness Index
LESSONS FROM THE LEADERS
Made in China 2.0 Leaders
Made in China 2.0 Leaders' business performance
Made in China 2.0 Leaders' growth strategies
• Global footprint
• Diversifying your B2B and B2C customer base
• Understanding the role of logistics
• Priorities for the future
• Selling finished goods vs. unfinished goods
• Identifying the impact of emerging trends
CONCLUSION
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CONTENTS
Produced by:UPS / Caixin Media
发行单位 / 出品单位:UPS / 财新传媒
Research Support:Lightspeed GMI
调研支持机构:Lightspeed GMI
Produced by:UPS / Caixin Media
发行单位 / 出品单位:UPS / 财新传媒
Research Support:Lightspeed GMI
调研支持机构:Lightspeed GMI
Editor-in-Chief:Simon Webb
主编:Simon Webb
Editor:MingXu/JunyangTang/QinghuiWu
编辑:徐明 / 唐隽阳 / 吴庆辉
Workflow Editor:Jiajun Zhao / Muxiao Zou
流程编辑:赵佳君 / 邹牧晓
Creative Director:Lekai Shi
视觉总监:石乐凯
Senior Designer:Bin Zhou
资深设计师:周斌
For more information, kindly contact:
Faith Wang
UPS China, Brand Communication Manager
wangfaith@ups.com
27
3. 01 Foreword
The future of exporting in China Lessons from the leaders
Replacement of old industries has entered
a crucial phase
China's GDP growth rate fell from 10.6% in 2010 to 6.9% in
2015, and continued to fall in the first half of 2016. What is the
reason for the sustained softening of the Chinese economy in
recent years? In general, opinions fall into one of two categories.
The first opinion is that the downturn is cyclical. In other words,
domestic and foreign economic fluctuations have caused
a slowdown in economic growth. From 2000 to 2007, the
average annual growth of Chinese exports was 22%. In 2015,
exports fell to 1.8%. There is a very clear logical relationship
between a drop in export growth and the economic downturn
it causes. Thus, it is clear that the economic softening in China
can be attributed to a certain degree to a slow global economic
recovery following the 2008 financial crisis.
The second theory is that the economic softening is a trend;
in other words, the speed of growth has fallen as the level of
development has risen. The less developed a nation is, the more
possible it is for that country to experience rapid growth; this
is the so-called "advantage of backwardness". In 1978, per
capita GDP in China was only US$200, at which point China had
staggering advantages in low costs. By 2015, however, GDP
per capita in China already exceeded US$8,000, bringing China
close to technologically developed nations. At the same time,
we passed the peak of our laboring-age population; the number
of laboring-age citizens has been falling by 3 to 5 million
annually. So the softening economic growth in China is — to a
great degree — a trend that will be difficult to reverse.
Between the cyclical downturn and development trend,
however, there is also an important structural challenge to be
faced by China's economy: the replacement of old industries
with new ones. In simple terms, the pillar industries that once
supported China's economy have been losing vitality for a long
time, and there is an urgent need for new industries to drive the
next round of economic growth. Economic growth was formerly
primarily dependent on exports and investments, with the rise of
the "world's manufacturing center" in the background.
There were two major components of the economy then.
The first was labor-intensive manufacturing concentrated in
Southeastern coastal cities. The other was resource-intensive
Huang Yiping Professor & Vice-President of National School of Development, China Center for Economic Research, Peking University
heavy industry concentrated in the Northwest and Northeast, the
primary product of which was investment goods1
. It is becoming
difficult, however, to maintain these two industries.
The only way to maintain growth is through innovation and
industry upgrading. The reality is that the replacement of old
industries is already happening. For one thing, the economic
activities of some traditional industries are rapidly dropping off;
it would not be an overstatement to call this a "hard landing". At
the same time, some emerging industries are developing rapidly,
including large machinery equipment, telecommunications,
intelligent machines, electric cars, tourism, and the internet
economy. The fundamental reason that the economy is facing
sustained pressure in the form of falling growth is that new
industries are not yet well established. The only way to achieve
an economic turnaround is for companies to bring about industry
upgrading and product replacement more rapidly.
In compiling this year's report, owners of companies we have
surveyed were optimistic about economic prospects on the
one hand, but on the other hand felt that the economy is still
in a downward slump. Although some companies hope for
improvements in demand for exports, most have realized that
China's competitiveness in exports can no longer be sustained
by low prices, but instead must be realized through increases
in product quality and improvements to customer experience.
Research indicates that leading companies are adopting
strategies and logistics for developing foreign market growth.
But the majority of export manufacturers have yet to take the
first step towards industry upgrading. What can be done to
convert the successful experiences of leading companies into
practical guidelines for tens of thousands of other companies in
China? This is precisely the question this year's 2016 Made in
China 2.0 Report aims to tackle.
The only way to maintain growth is through innovation and industry upgrading.
1
Investment goods, differing from consumption goods, refer to goods
directly sold to manufacturing enterprises for production
4. 02
The future of exporting in China Lessons from the leaders
Foreword
China's export manufacturing industry:
challenges and opportunities
In 2016, Caixin Media and UPS collaborated once again to
produce the 2016 Made in China 2.0 Report. This year's report
comes at a time as China's export manufacturing industry faces
much uncertainty in the global market, and as the ripple effect
of Brexit and other economic events of the summer are being felt
across the world. This report takes a deep dive into the challenges
currently faced by Chinese export manufacturers.
Faced with uncertainty, export manufacturers have two choices:
adapt and seek breakthroughs or fall behind. This continuation of
our 2014 report aims to guide the transformation and upgrading
of the Chinese export manufacturing industry and respond to the
realities currently faced by export manufacturers. It is also drawn
from UPS's strong experience in working closely with China's
export manufacturing sector over several decades.
An important discovery we made in this report is that lower
prices may not be the best strategy for export manufacturers to
become more competitive. Our research indicates that a lower
price is the least compelling factor for buyers when considering
new suppliers. This indicates that the market has transitioned
from low-cost suppliers towards one where buyers expect higher
quality products and added value through closer partnerships with
suppliers.
In other words, the strategy upon which Chinese export
manufacturers formerly depended for survival – low prices – is no
longer effective in more mature markets, where consumers are
becoming more discerning. This development is closely aligned
to the entry of China's economy into the "New Normal". Leading
export manufacturers who are able to respond to market changes
and remain competitive are seeing better performance than those
unable to adapt.
Considering present conditions, the four key pillars that were
identified in the 2014 report to guide reform for China's export
manufacturing sector remain relevant today. We discovered that
Made in China 2.0 Leaders – companies that have taken UPS's
Made in China 2.0 Priorities to heart – take a much broader
perspective on the role of logistics in driving competitive
advantage. These companies have a clearer understanding than
other export manufacturers on the value that logistics can add
Huang Shan Associate Editor, Caixin Weekly / Member of Editorial Board, Caixin Media
to a range of business objectives, including cost reduction, sales
growth and improving customer experience.
Made in China 2.0 Leaders are three times as likely to recognize
that logistics can play a highly important role in reducing costs
and growing sales as compared to other export manufacturers.
They are also more than twice as likely to identify the highly
important role it can play in enhancing customer experience.
In other words, modern logistics plays an extremely prominent
role in reducing cost, increasing sales, and improving customer
experience.
Let's also take a look at two current hot topics in China: "One
Belt, One Road" and "Connectivity" both of which convey
the significance of modern logistics in helping China to
achieve international productivity collaboration and economic
transformation. For example, the China-Singapore (Chongqing)
Demonstration Initiative on Strategic Connectivity is the third
inter-governmental project that China and Singapore have
undertaken in China's western region. The project, which
focuses on modern connectivity and modern services, has
identified transportation and logistics as two of its key priorities,
demonstrating the importance of these two areas in China's new
economy.
UPS, an international leader in logistics, has drawn from over
100 years of experience in helping Chinese export manufacturers
grow their business, to provide valuable insights to this report.
Caixin Media, one of China's foremost multimedia groups, has
long followed trends in China's economic construction as well
as the development of its export manufacturing industry. Caixin
spoke to four leading academics and experts in Beijing, Tianjin,
Shanghai and Shenzhen to discuss the growth challenges for
export manufacturers in these cities, and sought their advice
and recommendations for companies currently facing intense
global competition. Together, we hope that this report serves
as a valuable resource in helping Chinese export manufacturers
prepare for stronger growth and greater competitiveness in the
Made in China 2.0 era.
As China undergoes economic transformation, the differences between strong and weak companies are becoming clearer.
5. Learning from the leaders amidst
economic transformation
In the era of Made in China 2.0, customer-led focus on innovation, adaptability and logistics
remains key to success.
Richard Loi President, UPS China
03 Introduction
The future of exporting in China Lessons from the leaders
When we conducted the first round of this research
in 2014, it was already clear that the future survival
and success of Chinese manufacturers would depend
on their willingness and ability to make fundamental
changes to the way they do business. Many of the
themes identified in the initial research have now
found voice in the idea of China's "New Normal" – a
crucial rebalancing of China's economy which places
innovation at the forefront of growth and moving
Chinese manufacturing up the value chain.
The latest research shows that our observations
were well founded with demand both at home and
abroad in decline, the headwinds faced by China's
manufacturers remain considerable. UPS's Made in
China 2.0 initiative is geared now, as it was then,
towards helping businesses face these conditions head on.
The necessity for change remains great. Our research
clearly shows that great opportunities lie ahead for
companies that have succeeded in implementing
what we identify as key principles for future
competitiveness.
This report identifies how these successful
manufacturers achieved better performance than
their peers by organizing themselves differently and
deploying different strategies. What is notable from
UPS's point of view is the expansive and sophisticated
way leading export manufacturers view logistics
compared with less successful companies.
In my introduction to our 2014 report, I wrote
of UPS's ongoing commitment to China's export
manufacturing sector and our support for
individual export manufacturers eager to hone
their global competitiveness. We continue to be
deeply committed to this spirit of partnership,
and remain dedicated to accompanying
Chinese exporters at every step as they pursue
further success around the world.
6. Note on reporting
This report is based on 1,000 interviews
conducted in December 2015 with senior
decision-makers from Chinese export
manufacturing companies. It follows research
conducted in July and August 2014 with another
1,000 senior decision-makers.
In order to qualify, respondents in both research
phases were required to have senior decision-
making responsibilities from manufacturing
companies with at least 40% export value of their
goods.
Respondents were drawn from an online panel
maintained by Lightspeed GMI, a multinational
research company.
Beyond analysis of the overall results for the
Chinese export manufacturing sector, this report
focuses on analysis across two key variables:
• Variation by the sector from which
the export manufacturer was drawn.
In particular, we look at variations in the
responses from manufacturers in the retail
goods sector, the industrial manufacturing
and automotive and the high-tech sectors.
• Variation based on the location of the
manufacturer. Specifically, we look at
three key manufacturing hubs across China:
Shenzhen, Shanghai and the Beijing-Tianjin
corridor, as well as their three surrounding
areas.
These variations are displayed as indexed values
showing how the result for each sector or
location differed from the overall average (scored
as 100). An indexed score of 125, for example,
shows that the result for that sector or location
was 25% higher than the average result, and a
result of 80 shows that it was 20% below the
average.
Location of export manufacturers
Size of export manufacturers
Seniority of respondents
34%
55%
19%
29% 15%
9%
40%
23%
36%
42%
Shanghai and surrounding areas
Small and medium enterprises
-200 or fewer full-time employees
C-suite executives
Beijing-Tianjin orridor
Large enterprises
-over 1,000 full-time employees
Mid-tier executives
Shenzhen and surrounding areas
Mid-market enterprises
-201-1,000 full-time employees
Senior executives
Rest of China
04 Note on reporting
The future of exporting in China Lessons from the leaders
7. 05 Executive summary
The future of exporting in China Lessons from the leaders
EXECUTIVE
SUMMARY
T
his 2016 Made in China 2.0 Report provides a clear way
forward for a manufacturing sector facing growing headwinds
domestically and internationally. As the Chinese economy
slows, excess manufacturing capacity has opened up in the
local economy. Under the government's "One Belt, One Road" initiative
and other related policies, Chinese export manufacturers are being
encouraged to look to new markets overseas to absorb this excess
capacity. It is against this backdrop that we look at the current state of
export manufacturing in China.
The latest data from the report shows that both China's export
manufacturing sector in particular and the economy in general have
experienced further setbacks since we first surveyed manufacturers
in 2014. The export manufacturing sector continued to slow in the
intervening period, with new orders and output both down year-on-
year. While a majority of export manufacturers remains optimistic
about the economy, the number who say it is worsening is on the rise.
Export manufacturers are increasingly finding
themselves being squeezed by a combination of falling
domestic demand and growing domestic competition.
Meanwhile, despite these pressures, they report being
less concerned about RMB appreciation, holding out
hope of better export opportunities later in 2016.
Competition among export manufacturers not only
remains fierce, but is also expected to intensify
this year. Furthermore, manufacturers know that
customer loyalty is low and that many would, given
the right incentive, readily seek alternative suppliers.
It is important to note that a lower price is the least
important inducement to switch, suggesting that export
manufacturers need to look to improving the quality
of their offering to customers and focus less on simply
reducing the cost of that offering.
8. In the face of these intensifying pressures, the four Made in China
2.0 Priorities outlined in UPS's Made in China 2.0 reform agenda
are increasingly important in helping to develop healthier client
relationships, authentic partnerships and, ultimately, better profits for
China's export manufacturers.
If manufacturers are to survive and thrive in a tougher, more
competitive export market, they must:
Strengthen Knowledge and Understanding by
building a deeper and more nuanced understanding of
customer business needs, markets and environment
Develop Responsiveness and Collaboration by
elevating customer relationships to the level of true
partnership, understanding that their success is your
success
Deliver Tailored Logistics Solutions to enable
competitive advantage and provide value to their
customers
Build Capacity for Innovation by developing internal
capabilities for change and corporate strategy
To assess the extent to which China's export manufacturers are
prepared for a more competitive export environment, we created
the Made in China 2.0 Readiness Index. The results of
the 2015 Readiness Index reflect the degree of which export
manufacturers recognize the importance of the four priorities and
how they are responding to them. At 45.2, the Readiness Index
shows a slight fall from 46.6 in 2014, driven by a small decrease
in the number of companies that recognize the importance of these
priorities.
The Index is scored from 0 to 100, where 0 is not at all ready for the future of export
manufacturing and 100 is completely ready for the future of export manufacturing.
45.2
47.0
46.5
46.0
45.5
45.0
2014 2015
46.6
Made in China 2.0 Readiness Index
06 Executive summary
The future of exporting in China Lessons from the leaders
9. Export manufacturers based in the Beijing-Tianjin corridor performed better on the Readiness Index in 2015 than those in Shenzhen where
performance decreased notably compared to 2014. The performance of Shanghai-based manufacturers remained unchanged. Interestingly,
there was no significant difference in the Index performance of export manufacturers based on their industry sector.
Think like a leader for success
While the overall results of the Readiness Index show there is still considerable room for improvement, much can be learned from
focusing on companies that have taken the Made in China 2.0 Priorities to heart. We have given these companies the name Made in
China 2.0 Leaders. These Made in China 2.0 Leaders are from all over China. From all industry sectors and represent companies of all
sizes. They significantly outperform their peers in terms of profitability, productivity, market share and revenue. Made in China 2.0
Leaders represent the top 8% of export manufacturing companies, and score 90+ in the Readiness Index2
. Studying these Leaders in
depth, significant differences are apparent in both their businessperformance and thestrategies they deploy.
Made in China 2.0 Leaders' business performance
When it comes to their performance over the last year and how they expect to perform in the year ahead, Made in China 2.0 Leaders
enjoy significantly better business results and forecasted a more positive outcome than other export manufacturers in the following
areas:
Their businesses are also significantly more likely to be on a growth trajectory. Being prepared for the future of export manufacturing
has an immediate payoff today in terms of business results.
Made in China 2.0 Leaders' growth strategies
Global footprint
The global footprint left by Made in China 2.0 Leaders provides further instructive contrast to manufacturers who are
less prepared for the future. Leaders, for example, have a broader footprint overall with a significantly higher presence
in Hong Kong, Thailand, Indonesia, France and the UK. They are also much more focused on key emerging markets for
Chinese products in Eastern Europe and Oceania.
Channel diversification
Made in China 2.0 Leaders have developed a more diverse customer base than other export manufacturers and are
more likely to use both B2B and B2C channels to reach customers — not just one or the other. They also understand
the importance of capturing opportunity by constantly scanning their surroundings to understand the key driving factors
underpinning emerging trends in their market.
Challenge identification
One of the key factors that appears to support the success of Made in China 2.0 Leaders is their ability to clearly identify
and overcome the issues affecting their businesses, both now and in the future.
Supply chain optimization
Made in China 2.0 Leaders have a much more expansive view of the role of logistics in driving competitive advantage.
They also understand their role in other crucial areas of business, including growing sales, reducing cost and enhancing
customer experience.
Market share Revenue ProfitProductivity
07 Executive summary
The future of exporting in China Lessons from the leaders
2 The UPS Readiness Index reflects a combination of Recognition and Performance Score. An indexed score of 90 reflects an average score of at least 9
or higher (on a scale of 1 – 10) for each dimension. There are 10 dimensions each for Recognition and Performance Score.
11. Conditions facing China's
export manufacturers 2014-15
Economy is better
overall than
12 months ago
Economy is worse-off
overall than
12 months ago
2015
2014
Company's output
increased in the past
12 months
Company's new orders
increased in the past
12 months
78%
70%
75%
69%
63%
74%
29%
16%
A strong sector, starting to slow
Data from the 2016 Made in China 2.0 Report shows that
pressure is intensifying for China's export manufacturers.
The overall outlook for the sector remains strong, with large
majorities reporting increases in new orders and output.
However, when it comes to new orders, the number of
companies saying they have experienced an increase has
fallen from 75% to 69%. The number of those reporting
increased output meanwhile has fallen from 78% to 70%.
Both of these changes suggest that the New Normal may
have hit export manufacturing.
Headwinds ahead
Consistent with experiences in their respective sectors, the
assessments from export manufacturers in this latest report
regarding the overall health of the economy were more
pessimistic than the year before. The number of companies
reporting an improvement in the economy from the previous
year fell 11 percentage points to 63% and the number
reporting a deterioration increased 13 percentage points to
29%.
REGIONAL BREAKOUT:
A clear regional divide is apparent with companies in
the Beijing-Tianjin corridor significantly more likely to
have seen new orders and output increase in the last
year compared with manufacturers in other parts of
China. They are also considerably more bullish on the
performance of the overall economy.
New orders
Output
Better overall economy
100
Shanghai
region
Shanghai
region
Shanghai
region
Shanghai
region
102
91
120
124
Beijing-Tianjin
region
Beijing-Tianjin
region
Beijing-Tianjin
region
Beijing-Tianjin
region
120
133
43
81
Shenzhen
region
Shenzhen
region
Shenzhen
region
Shenzhen
region
81
81
127
09 Update on China's export manufacturers
The future of exporting in China Lessons from the leaders
Worse-off overall economy
These variations are displayed as indexed values showing how the result for each sector
or location differed from the overall average (scored as 100). An indexed score of 125, for
example, shows that the result for that sector or location was 25% higher than the average
result, and a result of 80 shows that it was 20% below the average.
12. Increasing competition from
companies in China
Decreasing demand for
products in China
Strengthening of the RMB against
other currencies
37%
39%
29%
37%
32%
24%
Challenges to capturing opportunities abroad
Chinese export manufacturers are feeling pressure from both the demand and supply sides — the two challenges most commonly
cited are increasing competition from Chinese companies and decreasing demand from Chinese customers. The number of export
manufacturers citing a decrease in domestic demand as highly challenging has increased eight percentage points since 2014 to a
high 37% — only two percentage points behind the 39% citing increased competition from domestic players.
There are reasons for optimism for export manufacturers: the proportion that see the appreciation of the RMB as a challenge to their
business has fallen from 32% to 24% in this year's report.
Key challenges facing China's export manufacturers 2014-15
2015
2014
10 Update on China's export manufacturers
The future of exporting in China Lessons from the leaders
13. A buyer's market
Respondents' sentiments of competition in export manufacturing
Possible reasons for switching suppliers
The competition faced by manufacturers is set to grow with 80% expecting competition to
increase in 2016, continuing a trend of increasing competition over the last five years.
Export manufacturers face not only a proliferation of new competitors, but also the prospect of
their customers switching to these competitors who offer a more attractive deal.
Competition grew in the last five years
Competition grew in the last year
Competition will grow in the next year
77%
80%
68%
Offers higher quality products
Shows understanding of their business and
helps them to compete more successfully
Offers a faster and more efficient
supply chain
Offers a better
customer experience
Helps reduce costs in their
supply chain
Offers a lower price
Importantly, for export manufacturers looking to compete in the market, reducing price may not
be the optimal solution. Of all of the tested inducements to switch suppliers, price reduction
was selected by the fewest export manufacturers. This suggests the market has matured beyond
lowest cost suppliers, to one where manufacturers are expected to offer higher quality products
and add value through closer partnership with customers.
83%
82%
80%
82%
80%
71%
11 Update on China's export manufacturers
The future of exporting in China Lessons from the leaders
15. Made in China 2.0 Priorities
It is against this backdrop of tightening economic conditions and increasing competition in the export manufacturing sector that UPS's
Made in China 2.0 Priorities are increasingly important. Developed in 2014 to help Chinese manufacturers retool for the future of
exporting in China, four priorities were identified to guide reform:
The Made in China 2.0 Readiness Index assesses Chinese export manufacturers' preparedness for the future of their industry – in
other words, how ready they are to succeed in an ever-changing and evermore competitive environment. The Index combines a
Recognition Score based on how well companies understand the Made in China 2.0 Priorities and a Performance Score that assesses
how well companies are delivering on those priorities within their organizations.
Priority 1: Strengthen Knowledge
and Understanding
Helping their customers innovate to secure
competitive advantage
Building partnerships with their customers to
jointly expand to new markets
13 Made in China 2.0 Readiness Index
The future of exporting in China Lessons from the leaders
Gathering market intelligence on their industry's
competitive initiatives
Using market intelligence to stay current with trends
and ensure their products meet customers' evolving
expectations of service and technology
Developing cross-cultural business and language
skills to interact more closely with their international
customers
Understanding their international customers'
legal and regulatory environment
Priority 2: Develop Responsiveness
and Collaboration
Priority 4: Build Capacity for
Innovation
Improving customer experience by aligning their
global logistics capabilities with their customers'
demands
Enhancing their global logistics which, in turn,
allows their customers to be more flexible and
responsive
Developing in-house capabilities for innovative
product development
Developing in-house strategic planning capabilities
to constantly evaluate and refine their business
model
Priority 3: Deliver Tailored
Logistics Solutions
1
5
2
6
3
7 9
4
8
10
16. 45%
55%
Index Methodology
The Made in China 2.0 Readiness
Index Score is calculated by combining
two related metrics – a Recognition
Score and a Performance Score.
The Recognition Score is calculated
based on the number of export
manufacturers who understand each
measure to be very important to their
success (by rating its importance as
9 or 10 out of 10 on a scale from 0
to 10, where 0 is not at all important
and 10 is extremely important). The
Performance Score is calculated the
same way and refers to the number
of export manufacturers who say they
perform each task very well (by rating
their performance as 9 or 10 out of 10
on a scale from 0 to 10, where 0 is not
at all well and 10 is extremely well).
The Made in China 2.0 Readiness Index
is marked out of 100 by combining a
company's Recognition Score (marked
out of 50) and a Performance Score
(marked out of 50).
Each measure is weighted equally, as
are both the Recognition Score and
the Performance Score. This is done to
reflect their equal contribution to the
task of readying themselves for China's
manufacturing future.
Recognition of the Made in China 2.0
Priorities
Recognition of the Made in China 2.0 Priorities has decreased slightly with the
Recognition Score down from 25.4 in 2014 to 23.6 in 2015. This fall was driven
primarily by a decrease in the number of export manufacturers who recognize
the following three key areas as highly important to their success:
• Building partnerships with customers to expand to new markets
(down 10 percentage points)
• Developing in-house corporate strategy capabilities
(down 6 percentage points)
• Helping customers innovate (down 6 percentage points)
Overall, the decrease suggests a reduction in focus on collaboration and
creating true partnerships with customers.
Made in China 2.0 Recognition Score 2014-15
23.6
25.5
25.0
24.5
24.0
23.5
2014 2015
25.4
Developing in-house corporate-
strategy capabilities to constantly
review our business model
Building partnerships with
our customers to expand to
new markets together
Helping our customers
innovate to get ahead of
their competitors
2014
2015
Changes in the Recognition of key areas of
the Made in China 2.0 Priorities 2014-15
49%
43%
48%
54%
14 Made in China 2.0 Readiness Index
The future of exporting in China Lessons from the leaders
17. REGIONAL BREAKOUT:
The Recognition Score varies significantly across China. Companies
in the Beijing-Tianjin corridor score particularly well, when it comes
to developing in-house innovation capabilities and gathering market
intelligence about their competition. Shenzhen-based manufacturers
are less likely to recognize the importance of seven of the ten Made in
China 2.0 Priorities, resulting in a low Recognition Score.
SECTOR BREAKOUT:
The Recognition Score does not vary significantly based on the
manufacturer's sector. Companies in the industrial manufacturing &
automotive and retail sectors are more likely than those in the high-tech
sector to recognize the importance of developing in-house corporate
strategy capabilities and partnering with customers to expand to new
markets. Conversely, those in the high-tech sector are more likely to
recognize the importance of understanding their customers' regulatory
environment and partnering with them to expand to new markets.
Made in China 2.0 Recognition Score 2015 by region
Made in China 2.0 Recognition Score 2015 by sector
24.2 23.7 24.7
Industrial
Manufacturing &
Automotive
High-tech Retail
15 Made in China 2.0 Readiness Index
The future of exporting in China Lessons from the leaders
24.5 26.6 20.9
Shanghai
region
Beijing-Tianjin
region
Shenzhen
region
18. REGIONAL BREAKOUT:
When it comes to six of the ten priorities, export
manufacturers in the Beijing-Tianjin corridor are much
more likely than those in other parts of China to perform
very well. Shenzhen-based companies, on the other
hand, are less likely to perform well when it comes
to building in-house corporate strategy and gathering
market intelligence. These two factors lead to a much
higher Performance Score from companies in Beijing-
Tianjin and a lower score for companies based in and
around Shenzhen.
SECTOR BREAKOUT:
Consistent with their Recognition Score, Performance
Score does not vary based on the type of products
manufactured.
Made in China 2.0 Performance
Score 2015 by region
Made in China 2.0 Performance
Score 2015 by sector
Performance of the Made in
China 2.0 Priorities
While recognition of the Made in China 2.0 Priorities may
have decreased slightly, the performance of the priorities
has not. The Made in China 2.0 Performance Score has
increased marginally from 21.2 in 2014 to 21.6 in 2015.
However, the Performance Score still lags behind the
Recognition Score, confirming a finding first seen in 2014
that more export manufacturers recognize the importance
of the Made in China 2.0 Priorities than are actually
implementing those Priorities. In other words, while some
Chinese exporters know what to do, they do not follow
through on that knowledge.
Made in China 2.0 Performance
Score 2014-15
Shanghai
region
Beijing-Tianjin
region
Shenzhen
region
22.6 25.1 18.6
Retail
22.1 22.3 22.1
21.6
22.0
21.5
21.0
20.5
20.0
2014 2015
21.2
Industrial
Manufacturing &
Automotive
High-tech
16 Made in China 2.0 Readiness Index
The future of exporting in China Lessons from the leaders
19. Made in China 2.0 Readiness
Index
Based on the fall in the number of export manufacturers that
recognize the importance of the Made in China 2.0 Priorities,
our latest study shows that the Made in China 2.0 Readiness
Index has fallen slightly from 46.6 in 2014 to 45.2 in 2015.
Made in China 2.0 Readiness Index
Score 2014-15
17 Made in China 2.0 Readiness Index
The future of exporting in China Lessons from the leaders
45.2
47.0
46.5
46.0
45.5
45.0
2014 2015
46.6
Industrial
Manufacturing &
Automotive
High-tech Retail
46.3 46.0 46.8
44.8 44.7
52.2
20152014
REGIONAL BREAKOUT:
One of the most important findings in the latest
Made in China 2.0 Readiness Index is that export
manufacturers in the Beijing-Tianjin corridor are
heading in the right direction. They have seen an
almost seven-point increase in the Index Score
from 45.0 in 2014 to 51.7 in 2015. This increase
is mirrored by an even larger decrease in the Index
Score for companies based in and around Shenzhen,
from 53.9 in 2014 to 39.5 in 2015.
SECTOR BREAKOUT:
While across industry sectors the Index Score does
not vary much, there has been a decrease in the
Index Score of manufacturers in the retail sector
from 52.2 in 2014 to 46.8 in 2015.
Shanghai
region
Beijing-Tianjin
region
Shenzhen
region
47.1
51.7
39.5
48.3
45.0
53.9
20152014
21. Productivity
Market share
Revenue
Profit
Made in China 2.0 Leaders
Looking at the performance of export manufacturers on
the Made in China 2.0 Readiness Index, a small segment
of elite companies are leading the way in terms of their
understanding and implementation of the Made in China
2.0 Priorities.
Made in China 2.0 Leaders provide a model of success
for other Chinese export manufacturers to emulate.
By identifying how these Leaders differ from other
businesses, a roadmap can be developed for export
manufacturing success.
Broadly speaking, Made in China 2.0 Leaders differ
from other companies when it comes to their business
performance and theirstrategies for growth.
Made in China 2.0 Leaders'
business performance
There is a clear connection between an organization's
investment in the Made in China 2.0 Priorities and
business performance. When it comes to productivity,
market share, revenue and profit, Made in China 2.0
Leaders tend to do much better than companies less
aligned with the priorities.
The Made in China 2.0 Priorities are connected to hard
measures of business performance in the here and now.
Investing time and resources into aligning with these
principles pays performance dividends.
Across the four measures of business performance —
productivity, market share, revenue and growth — Made
in China 2.0 Leaders are significantly more likely to have
seen improved performance in the 12 months preceding
the research. Similarly, they are also more likely to
expect to see their performance improve in the next 12
months.
It is hardly surprising then that the overwhelming
majority (83%) of Made in China 2.0 Leaders say that
their businesses are experiencing growth. Leaders are
13% more likely than other export manufacturers to be
on a growth footing and 7% less likely to say that their
business is currently declining.
Business is currently
growing
Business is currently
holding steady
Business is currently
declining
Other export manufacturers
Next 12 months
Made in China 2.0 Leaders
Last 12 months
Business trajectory – Made in China 2.0
Leaders vs. other export manufacturers
Business performance - Made in China 2.0 Leaders
outperform other export manufacturers
19%
18%
17%
25%
17%
28%
27%
30%
70%
83%
16%
10%
14%
7%
19 Lessons from the Leaders
The future of exporting in China Lessons from the leaders
22. Made in China 2.0 Leaders' growth strategies
Global footprint
In today's environment, it is vital to capture growth wherever it presents itself. The Chinese government's "One
Belt, One Road" and Third-Country Market Cooperation initiatives reinforce how important it is for manufacturers to look
overseas to reach new customers in new markets. As manufacturers move up the value chain and as the New Normal sees
diminished domestic demand, excess manufacturing capacity must turn to meet export demand.
The global footprint of the Made in China 2.0 Leaders provides a further clue for Chinese manufacturers looking to enhance
their competitiveness. Leaders sell to considerably more markets than other companies and are particularly strong in Asia,
with 97% of Leaders selling to at least one Asian market.
Thailand Hong Kong SAR France Indonesia The UK
Compared to other export manufacturers, Made in China 2.0 Leaders are particularly
focused on key markets in Asia and in Europe. They are more likely to sell to:
161% 151% 116%126% 115%
20 Lessons from the Leaders
The future of exporting in China Lessons from the leaders
23. Made in China 2.0 Leaders are more likely to have a presence in these areas:
Made in China 2.0 Leaders are:
Target regions Target markets
Oceania
Western Europe
Eastern Europe
Asia
546%
59%
146%
21%
Thailand
Taiwan
Hong Kong
Korea
Japan
Indonesia
France
UK
161%
82%
151%
97%
76%
116%
126%
115%
South America
Central America
North America
31%
46%
71%
21 Lessons from the Leaders
The future of exporting in China Lessons from the leaders
When it comes to the expansion plans of the Made in China 2.0 Leaders,
Asia is a key focus. They are more likely than other businesses to consider
expanding to Malaysia and the Philippines in the next couple of years.
Aside from the focus on Asia, the most sold-to markets on a region-by-
region basis are Western Europe and North America. Made in China 2.0
Leaders are six times more likely than other Chinese manufacturers to
sell to Oceania and more than twice as likely to sell to Eastern Europe,
although they represent smaller markets overall.
Made in China 2.0 Leaders do a better job of leveraging their presence
in these markets in order to enter neighbouring markets that may have
previously been overlooked. For example, Leaders not only focus on the
USA, but also on Canada.
Oceania
more likely to sell to more likely to sell to
Eastern Europe
6x 2x
24. Diversifying your B2B and B2C customer
base
Made in China 2.0 Leaders have also developed
a more diverse customer base than other export
manufacturers. With the manufacturing sector
shifting away from selling only to B2B customers or
only to B2C customers, Leaders are at the forefront
of this shift.
Two-thirds of Made in China 2.0 Leaders sell to
a mix of both B2B and B2C customers, making
them 49% more likely to do so than other
export manufacturers. Meanwhile, other export
manufacturers are considerably more focused on
B2B manufacturing, which is often associated with
lower-margin and lower-quality production.
Customer type – Made in China 2.0 Leaders
vs. other export manufacturers
Sell primarily to
B2B customers
Sell to both
B2B and B2C
customers
Sell primarily to
B2C customers
Other export manufacturers
Made in China 2.0 Leaders
43%
15%
64%
18%
42%
18%
22 Lessons from the Leaders
The future of exporting in China Lessons from the leaders
25. Understanding the role of logistics
Made in China 2.0 Leaders know that investing in logistics
can add value across a range of key corporate objectives.
Made in China 2.0 Leaders also have a more expansive
view than other companies about the role of logistics in
driving competitive advantage. Leaders are three times as
likely to recognize that logistics play a highly important role
in reducing costs and growing sales. They are also more
than twice as likely to identify the highly important role it
can play in enhancing customer experience.
Made in China 2.0 Leaders are more
likely to recognize the important role
of logistics than others
Cost
reduction
>3X
more likely
>3X
more likely
>2X
more likely
Sales
growth
Enhanced
customer
experience
23 Lessons from the Leaders
The future of exporting in China Lessons from the leaders
26. Leaders are more likely to
understand that logistics can
reduce costs by…
The chart below outlines the Made in China 2.0 Leaders' view on the role of logistics in driving business objectives.
Reducing labor costs
Reducing storage fees
from a more efficient
supply chain
Managing compliance
activities better to
avoid fines and delays
Reducing costs from
fewer lost documents
and lost shipments
Reducing training costs
through simplified shipping
and tracking processes
Allocating staff more
effectively thanks to
enhanced workflow
visibility
Reducing printing costs
by using shipping labels
to print logos, ads
and links to product
warranties and return
policies
Increasing repeat sales
Improving cash flow and
payment speed
Increasing customer
satisfaction by reducing
shipping errors
Increasing customer
bases by shipping to
new markets
Increasing customer
satisfaction through better
shipment tracking
Better managing stock
levels to avoid stock
outs and allowing sales
of in-bound inventory
Leaders are more likely to
understand that logistics can
grow sales by…
Enhancing quality
assurance of order
fulfilment
Simplifying product return
processes
Providing better visibility
and certainty to customers
of delivery times
Being able to better
forecast shipment
delays and put in place
mitigation strategies
Offering shipping options
to fulfil customer needs
Sending a customer
survey upon product
delivery to better identify
customer needs
Streamlining customs and
other procedures to reduce
delays and speed up
delivery times
Leaders are more likely to
understand that logistics can
enhance customer experience by…
Offering shipping
options to balance
speed and cost to meet
customer needs
Role of logistics as recognized by
Made in China 2.0 Leaders
24 Lessons from the Leaders
The future of exporting in China Lessons from the leaders
27. Made in China 2.0 Leaders understand the importance of agility.
They know that they need to constantly scan their surroundings to
understand the key driving factors underpinning emerging trends in
their market. Just as importantly, they need to be poised to move
quickly and decisively in response to these trends both now and in the
future. Leaders regularly review their business strategies to ensure they
are continuing to meet customer expectations.
Priorities for the future
When asked to rate priorities for the future success of their company,
Made in China 2.0 Leaders were significantly more likely than other
companies to rate all priorities as highly important.
Among the seven future priorities, improving logistics and growing
sales were the two areas where the gap between Made in China 2.0
Leaders and other companies was greatest. Made in China 2.0 Leaders
were 170% more likely to identify improving logistics as highly
important and 168% more likely to say the same of improving sales
growth. These are the two areas where the assessment of Leaders and
other companies diverge the most, suggesting that they represent the
areas most overlooked by other export manufacturers.
However, across all of the priorities tested, Made in China 2.0 Leaders
were considerably more likely than all other companies to recognize
the significance of these priorities to their company's future success.
Made in China 2.0 Leaders are more likely to believe that the following are
highly important:
Increasing product quality
Cost reductions
Product innovation
Growing sales
Business model innovation
Improving logistics
Enhanced customer experience
85%
111%
168%
170%
100%
96%
136%
25 Lessons from the Leaders
The future of exporting in China Lessons from the leaders
130%
28. Selling finished goods vs. unfinished goods
Product innovation is pushing the Made in China 2.0 Leaders up
the value chain. As Leaders focus on product innovation, we can
see a move away from selling unfinished goods and towards more
finished goods. Made in China 2.0 Leaders are 63% less likely than
other export manufacturers to sell mainly unfinished goods.
Identifying the impact of emerging trends
Made in China 2.0 Leaders also have a more finely tuned radar for
future developments in their market and are considerably more
focused on identifying and dealing with these changes. When
asked to rate the impact of a series of emerging industry trends,
Leaders were more likely than other Chinese export manufacturers
to say that all of the tested trends would have a significant impact
on them.
Made in China 2.0 Leaders differ most from other businesses when
it comes to their assessment of the impact of nearshoring as well
as industry and consumer e-commerce (which allows companies
to sell directly to their business and consumer clients respectively).
Made in China 2.0 Leaders are more
likely to recognize that the following
trends will have a big impact:
Emerging market
pressures
Nearshoring
Pre-purchase
online reviews
Consumer
e-commerce
Industry
e-commerce
23%
24%
24%
29%
41%
26 Lessons from the Leaders
The future of exporting in China Lessons from the leaders
Made in China 2.0 Leaders not only have a better roadmap for
success, they are also much more attuned to emerging industry
trends and the inherent threats and opportunities. Logistics, in
particular, has a key role to play in many of the trends currently
overlooked by other export manufacturers – from negating the
impact of nearshoring to opening up new channels for consumer
and industrial e-commerce.
29. 27 Conclusion
Lessons from the leaders Guiding the future of China's export industry
This year's Made in China 2.0 Report shows that both China's export manufacturing sector and the overall economy are experiencing
stiffer headwinds than when we first surveyed manufacturers in 2014. Export manufacturers face growing pressure from falling
domestic demand and growing competition – both domestically and internationally.
The Made in China 2.0 Readiness Index Score - which assesses the extent of China export manufacturers' readiness for a more
competitive export environment - fell from 46.6 in 2014 to 45.2 in 2015. There is room for improvement when it comes to how
well export manufacturers recognize the importance of being prepared for the future of manufacturing, particularly when it comes to
working closely with their customers on expanding to new markets and innovation.
Much can be learned from the Made in China 2.0 Leaders – export manufacturers who are the most ready for China's export future,
who have experienced stronger business performance and are on a growth trajectory.
Key differences between the Made in China 2.0 Leaders and other export manufacturers include
• Having a broader geographic footprint: Made in China 2.0 Leaders have diversified their investment into new
emerging regions to harness growth. They are looking to source growth from Eastern Europe and Oceania.
• Building a diversified B2B and B2C customer base: Made in China 2.0 Leaders have shifted away from selling
only to B2C or B2B customers to include a mix of both types of customers.
• Being able to better identify the impact of emerging trends: Leaders are much more attuned to macro
emerging industry trends and are able to recognize the huge impact of 'nearshoring' to their future success.
• Understanding the role of logistics: Leaders recognize that investing in logistics can add value and offer the
competitive advantage in cost reduction, sales growth and better customer experience.
As we have established in 2014, this report reminds export manufacturers that there is value today in being prepared for tomorrow.
From profitability to productivity, and from market share to revenue, Made in China 2.0 Leaders continue to significantly outperform
those who are less ready for the changes to come. Leaders sell in more markets around the world and enjoy greater success in them.
These market leaders are the export champions of tomorrow and have set a strong example for Chinese companies, as well as for
companies throughout Asia. By adopting the lessons learned from these Leaders with a more expansive outlook of the future, export
manufacturers could continue to thrive in the increasingly competitive environment.
This is the time of Made in China 2.0, a laboratory for global business and commerce, a dynamic environment in which ingenuity
and problem solving will fuel unprecedented innovation. Made in China 2.0 is here to present the growth opportunities for export
manufacturers as China enters the New Normal.
To understand how Made in China 2.0 applies to your organization, we invite business leaders to visit the Made in China 2.0 platform
at ups.com/lianhe. UPS is driven by the belief that great things happen when people work together. Our uniquely human logistics
network of more than 400,000 employees collaborate with our customers and stakeholders to solve complex challenges for the
transformation of companies and industries. This is an invitation to policy-makers, businesses of all sizes playing different roles in the
global value chain, in China and around the world, to join in the Made in China 2.0 conversation.
For more information, kindly contact:
Faith Wang
UPS China, Brand Communication Manager
wangfaith@ups.com
Conclusion