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E-commerce is booming. What’s in it for urban transport?

Bianca Bianchi Alves's picture
Também disponível em: Português
 

Worldwide, e-commerce has experienced explosive growth over the past decade, including in developing countries. The 2015 Global Retail E-Commerce Index ranks several of the World Bank’s client countries among the 30 most important markets for e-commerce (China ranks 2nd, Mexico 17th, Chile 19th, Brazil 21st, and Argentina 29th). As shown in a 2017 report from Ipsos, China, India, and Indonesia are among the 10 countries with the highest frequency of online shopping in the world, among online shoppers. Although growth in e-commerce in these countries is sometimes hindered by structural deficiencies, such as limitations of banking systems, digital payment systems, secure IT networks, or transport infrastructure, the upcoming technological advances in mobile phones and payment and location systems will trigger another wave of growth. This growth will likely lead to more deliveries and an increase in freight volume in urban areas.

In this context, the Bank has been working with the cities of Sao Paulo and Bangalore to develop a new tool that helps evaluate how different transport policies and interventions can impact e-commerce logistics in urban areas (GiULia). Financed by the Multidonor Sustainable Logistics Trust Fund, the tool serves as a platform to promote discussion with our counterparts on a subject that is often neglected by city planners: urban logistics. Decision-making on policies and regulations for urban logistics has traditionally been undertaken without sufficient consideration for economic and environmental impacts. For instance, restrictions on the size and use of trucks in cities can cause a number of side effects, including the suburbanization of cargo, with warehouses and trucks located on the periphery of cities, far from consumers, or the fragmentation of services between multiple carriers, which may lead to more miles traveled, idle truck loads, and inefficiencies.

Preparing for the future of logistics - the Singapore way

Yin Yin Lam's picture
Photo: Sarah Starkweather/Flickr
The government of Singapore recently outlined its vision for the country's future, describing how different sectors could harness technology, innovation and mega-trends in order to take the city-state to the next level. This approach includes a dedicated Industry Transformation Map for the logistics sector, which accounts for 7.7% of Singapore's GDP and over 8% of jobs. Logistics is also understood as a crucial enabler for other significant parts of the economy, such as manufacturing and trade.

How is Singapore anticipating the transformation of logistics?

Singapore has been considered a major logistics hub for quite some time, and is currently ranked first in Asia according to the Word Bank’s Logistics Performance Index. The sector, however, is experiencing significant transformations such as the rise of digitally enabled logistics services, and the emergence of new delivery capabilities (autonomous vehicles, 3D printing).

The Industry Transformation Map (ITM) will help Singaporean logistics keep its competitive edge in this rapidly evolving context, and aims to achieve a value-added of S$8.3billion (US$6 billion) by 2020. In particular, the ITM intends to strengthen innovation, productivity, as well as talent development across the logistics sector—including by leveraging trends such as artificial intelligence and collaborative robotics.

Campaign Art: Disruptive technologies and development goals

Darejani Markozashvili's picture
People, Spaces, Deliberation bloggers present exceptional campaign art from all over the world. These examples are meant to inspire.

Disruptive technologies are redefining the way of life. Everyone is buzzing about drones, driverless cars, autopilot planes, robots, and supply chains, starting from the entertainment industry, to agriculture and food sector, to private sector, to humanitarian and development fields. Drones delivering food, water, or health supplies, using off-grid power, innovative mobile apps, and other technological developments are all very exciting and unknown at the same time.

How will drones impact the supply chains and service delivery in the future? What are the opportunities and risks associated with utilizing drones to deliver supplies? What is the role of technology in helping us reach Sustainable Development Goals? I can’t pretend I have answers to any of these questions, nor do I dare predict what our future may look like in 10,20,30 years. However, it sure is interesting to look at the recent technological developments and try to understand what their role may be in the future.  

That’s where the unlikely and innovative story of Zipline International Inc. and the Government of Rwanda comes in. Last fall the Government of Rwanda partnered with the California-based robotics company Zipline International Inc. and became the first country in the world to incorporate drone technology into its health care system by delivering blood and medical supplies to 21 hospitals across Rwanda’s Southern and Western provinces.
 
Delivering blood

Source: Zipline

Media (R)evolutions: The 3D printing revolution

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

3D printing, also known as "additive manufacturing", is changing the way products are created and reproduced.  It makes it possible to create a part from scratch in just hours and allows designers and developers to experiment with new ideas or designs without extensive time or assembly expenses.

Using a 3D computer modeling program or a 3D scanner (which makes a 3D copy of an object for a 3D modeling program), designers can now create or reproduce items for 3D printing. Once the design or copy of the object is prepared, the 3D modeling program slices it into hundreds or thousands of horizontal layers. This model is then uploaded in the 3D printer, which creates the object by printing layer upon layer of material. Each layer is blended together, resulting in one three-dimensional object.



 

At the Heart of the Matter: Improved Market Access to Food Supplies

Bill Gain's picture
Hi-Las workers weighing and sizing mangoes. Source -

At the Ninth WTO Ministerial Conference held in Bali on December 2013, all WTO members reached an agreement on trade facilitation and a compromise on food security issues, a contentious topic which had previously stalled talks during the 2008 Doha Development Round. The “Bali Package,” as it came to be known, was quickly heralded as an important milestone, reaffirming the legitimacy of multilateral trade negotiations while simultaneously recognizing the significant development benefits of reducing the time and costs to trade.

Seven months after the Bali Ministerial Conference, however, the Trade Facilitation Agreement (TFA) has yet to be ratified as India is concerned that insufficient attention has been given to the issue of food subsidies and the stockpiling of grains. India maintains that agreements on the food security issue must be in concert with the TFA.
 
Despite the current impasse in implementing the Bali decisions, the food security concern at the heart of the matter sheds light on the importance of improving the agribusiness supply chains of developing countries to ensure maximum efficiencies. Consider the fact that in 2014, farmers will produce approximately 2.5 billion tons of food. Yet, 1.3 billion tons are lost or wasted each year between farm and fork, while 805 million people suffer from chronic hunger.

Media (R)evolutions: E-Commerce Will Rise in Emerging Markets

Roxanne Bauer's picture
New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's and will have little resemblance to yesterday's.

E-commerce is a technology ‘megatrend’ that is expected to become more popular in the future. As it achieves higher penetration rates in developing countries, it will overcome obstacles to adoption like the need for high-speed data networks that are fast enough for smartphones and inventory and shipping costs. These obstacles are only overcome with better infrastructure and greater scale. As its popularity grows, the retail sector, online businesses, logistics and supply chains and other connected industries will need to adjust.

As the table below demonstrates, a larger share of the online population in many countries will be purchasing goods online in 2018 than now. Around 50% of the online population in emerging markets will shop online by 2018, not far from the average penetration of 63% in developed countries.



To feed the future, let’s make logistics and transport sustainable

Jose Luis Irigoyen's picture
How serious are we about addressing the challenge of food security in the face of climate change?  This is one of the topics to be discussed at Food for the Future, one of the events at the IMF-World Bank Group Annual Meetings this year.

If we are dead serious about this challenge, then we really need to pay greater attention to the role of transportation and logistics, both crucial in increasing food security, so we can feed 9 billion people by 2050, and mitigating impact on climate change. Just consider these facts:

  • Up to 50% of harvest is wasted between farm and fork, the moment we actually consume food.
  • Transport-related emissions account for about 15% of overall greenhouse gas emissions. And 60% of those emissions are coming from road transport.
  • And logistics costs affect small farmers disproportionally (up to 23% of their total costs).
Thus logistics – the services, knowledge, and infrastructure that allow for the free movement of goods and people – is now recognized as a key element in achieving sustainable food security, and thus a driver of competitiveness and economic development. The development of agro-logistics, for example, has helped address the food security challenge more holistically: from “farm to fork” and all stages in between.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

The State of  Broadband 2014:  Broadband  for all
Broadband Commission for Digital Development (I​TU and UNESCO)
The Broadband Commission for Digital Development aims to promote the adoption of effective broadband policies and practices for achieving development goals, so everyone can benefit from the advantages offered by broadband. Through this Report, the Broadband Commission seeks to raise awareness and enhance understanding of the importance of broadband networks, services, and applications to guide international broadband policy discussions and support the expansion of broadband where it is most needed. This year, the Report includes a special focus on the importance of integrating ICT skills into education to ensure that the next generation is able to compete in the digital economy.

Facebook Lays Out Its Roadmap for Creating Internet-Connected Drones
Wired
If companies like Facebook and Google have their way, everyone in the world will have access to the internet within the next few decades. But while these tech giants seem to have all the money, expertise, and resolve they need to accomplish that goal—vowing to offer internet connections via things like high-altitude balloons and flying drones—Yael Maguire makes one thing clear: it’s going to be a bumpy ride. “We’re going to have to push the edge of solar technology, battery technology, composite technology,” Maguire, the engineering director of Facebook’s new Connectivity Lab, said on Monday during a talk at the Social Good Summit in New York City, referring to the lab’s work on drones. “There are a whole bunch of challenges.”

Global value chain suppliers are our connection to SMEs

Yara Salem's picture

 
SME connectors can boost the supply chains of apparel, and other industries (Credit: India Kangaroo, Flickr Creative Commons)

This is the second post in the “Supply Chain Junkie" series, which gives personal insights on supply chains- -the “new normal" of doing business that is currently being prioritized by IFC.

Fashion is about constant change and that holds true for the business strategies of apparel Global Value Chains (GVCs) in response to customer preferences and global developments. The global economic crisis has played a major role in the biggest changes to the operational model of these chains, forcing them to cut costs by further consolidating their operations through long-term strategic decisions on supplier countries and supplier firms.
 

Women's Untapped Potential: Examining Gender Dynamics in Global Trade

Cornelia Staritz's picture

A woman inspects her broccoli crop in Honduras. Source: http://www.flickr.com/photos/feedthefuture/6942506316/Maria knows she is good at selecting ripe tomatoes, but she doesn’t know any women who own nurseries like the one where she works in Honduras. Susan does housekeeping for a hotel in Kenya, but there is little chance that she would ever lead a safari. Salma, at a call center in Egypt, can calm down angry customers, but she has never seen a female manager in her office.

Global value chains (GVCs) are essential to modern trade, and women’s labor is essential to many products and services that are traded across countries. But many limitations hold women back from participating more fully and equally to men in this important and growing global labor force, as we show in a collaborative project by the International Trade Department and the Gender Division at the World Bank. Though the names above are fictional, the situations are representative of what we found in case studies in the horticulture sector in Honduras, the tourism sector in Kenya and the call center sector in the Arab Republic of Egypt.


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