What to expect in 2016

What The Supply Chain And Logistics Community Should Expect In 2016

21 hours 40 min ago

by Jim Hoefflin, President and COO of Kewill

DEEPER INSIGHTS

3 ways to gain full visibility and control of supply chain operations

The supply chain and logistics community saw a lot of ups and downs in 2015, starting with extreme winter weather that not only tested our patience, but also the strength of our supply chain systems. Oil prices were up and then way down, and the Automated Commercial Environment (ACE) deadline loomed right after Halloween … until it was pushed back four months. Now that the year is coming to a close, it’s time to look forward, build on the successes we’ve seen and capitalize on the opportunities that are ahead. So without further ado, here are some predictions for 2016:

The transport sector will start to feel the full force of the driver shortage: This will force companies to look for better ways of planning and managing their transportation needs, leading to wider adoption of supply chain execution convergence – the concept of bringing together siloed logistics teams within a business to increase visibility and streamline operations. Ultimately, this will continue to fuel demand for transportation management systems [TMS].

There will be an increased focus on retail stock levels: Stock availability and the real-time visibility thereof is the number one pressure point for retailers. In the year ahead, savvy logistics managers will facilitate multi-channel fulfillment to deliver to the customer from within the store, from a remote store, direct from the distribution center or direct from the supplier.

Automation in the supply chain will increase: Expanded data requirements for the United States will cause shippers and importers to supply more data to brokers/filers to help reduce the cost of submitting transactions to Customs and Border Protection and other government agencies. It will be slow going for the early part of the year as importers learn the new data requirements, but once users understand where they can source that data within their ERP or operations systems, they will find automated systems save time, money and resources and enable them to focus on more innovative projects rather than paperwork.

Cloud technology will continue to enable mid-sized forwarders to leverage the same powerful tools as larger market leaders: Mid-size companies will be able to use size to their advantage in 2016 and become more competitive than ever. Their smaller size and flexible approach will make them more agile and able to easily adjust to ever-changing market needs thanks to cloud-based solutions that can be implemented quickly with a low upfront cost, delivering a fast ROI.

More companies will consider buying a TMS for inbound planning to reduce costs, improve customer service and increase visibility: As a result, the future supply chain model will be based on multi-partner information sharing among consumers, suppliers, manufacturers, logistics service providers and retailers. Open information sharing — coupled with modern TMS solutions — will be an important foundation to help companies anticipate dynamic consumer demands in 2016.

The New Year will bring continued growth of carrier “frenemies”: Over the last few years, carriers have looked for new ways to cut costs. Many new services have been introduced where one carrier starts a delivery only to hand the box off to another carrier for final mile delivery. This trend will not slow down in 2016; it will continue to grow globally. As a result, shippers with systems that allow for access to a broader carrier base will continue to have a distinct advantage over those that don’t. 

Jim Hoefflin

President and COO of Kewill

Both large and small organizations will benefit from supply chain convergence in the year ahead, aided by tools and systems such as TMS, cloud technology and automation in the supply chain. Multi-channel fulfillment, carrier consolidation and customs filing obstacles will push companies to consider multimodal transportation software to gain greater visibility into their supply chains and mitigate any issues resulting from these trends. The result will be a more productive 2016 for companies willing to invest resources in streamlining their logistics operations.

Banner year for consolidation leaves transport, logistics with bigger, fewer players

Action will likely cool after torrid 2015.

By Mark B. Solomon

The transportation and logistics industries have been in perpetual consolidation for decades. Companies come and go. Some are acquired. Others fade away. Inevitably, new entrants take their place, especially in non-asset-based sectors like third-party logistics (3PL), where the barriers to entry are relatively low.

Though nary a year goes by without a thinning of the ranks, 2015 was an extraordinary time for large-scale shrinkage. According to consultancy Armstrong & Associates Inc., there were 11 $100 million-plus transactions in 2015 that involved third-party logistics providers, the most in one year since Armstrong began tracking deals in 1999. By contrast, there were just three and five such transactions in 2013 and 2014, respectively, according to Armstrong data.

FedEx Corp. and UPS Inc., two of the world's most high-profile transport and logistics firms, made the largest acquisitions in their histories in 2015. Memphis-based FedEx acquired Dutch-based rival TNT Express for US$4.8 billion. Atlanta-based UPS, which tried unsuccessfully to buy TNT Express in 2013 for US$6.8 billion, acquired Chicago-based freight broker Coyote Logistics LLC for $1.8 billion. FedEx also closed on its purchase of Pittsburgh-based contract logistics specialist Genco Supply Chain Solutions for an undisclosed sum—one analyst pegged it at about $2 billion—a deal that represented FedEx's biggest commitment ever to a firm in the non-transport segment.

Familiar names disappeared from the scene in 2015. Freight forwarder and 3PL UTi Worldwide Inc., which had struggled mightily for years, was bought out by Danish logistics firm DSV for $1.3 billion. French trucking and logistics giant Norbert Dentressangle S.A. was acquired in April by transport and logistics firm XPO Logistics Inc. for US$3 billion. Greenwich, Conn.-based XPO followed that up five months later with its stunning purchase of Ann Arbor, Mich.-based trucker and 3PL Con-way Inc. for $3 billion. Contract logistics firm OHL, officially known as Ozburn-Hessey Logistics LLC, was taken out by French firm Geodis S.A. for $800 million.

Japanese giant Kintetsu World Express bought APL Logistics, a 3PL that pioneered the use of double-stack intermodal containers, for $1.2 billion. Several months later, Singapore-based steamship carrierNeptune Orient Lines, APL Logistics' former parent, was itself acquired by French carrier CMA CGM for $2 billion.

The acquisition activity extended into the IT space, as providers geared up for increased customer reliance on cloud-based computing platforms and the continued headlong push into omnichannel fulfillment. In terms of dollar value, the biggest deal of the year was Infor's $675 million purchase of Oakland-based GT Nexus, a transaction that catapulted New York-based Infor into the top tier of cloud commerce providers. Arguably the busiest IT provider was Canada's Descartes Systems Group Inc., which made threeacquisitions last year. That was followed by Ann Arbor-based Llamasoft, which acquired supply chain software capabilities of Armonk, N.Y.-based IBM Corp. and South African firm Barloworld.

The 2015 activity, which in some cases bore the fruit of the seeds planted as far back as early 2014, stands in stark contrast to the M&A torpor that existed between 2008 and 2014. That period included the financial crisis and so-called Great Recession, a time when many companies were focused on survival rather than growth. Yet industry CEOs stayed out of the M&A game even as U.S. and world economies recovered, albeit tortuously.

Robert C. Lieb, professor of supply chain management at Boston's Northeastern University, who conducts an annual survey of 3PL CEOs, said respondents to his 2014 survey believed that post-acquisition integration challenges were too daunting and potential acquisitions insufficiently accretive to justify an aggressive buying strategy.

That attitude seemed to change in 2015. Perhaps it was the slowdown in demand for virtually all transportation services—while 3PL demand continued apace—that pressured some CEOs into achieving top-line growth through acquisition instead of through organic measures. If that is the case, then M&A activity may be extended well into 2016. For example, sluggish demand and ample truck capacity have forced many truckload carriers to ratchet down forecasts for increases in base prices to 1 to 2 percent (from 3 to 5 percent). Rate compression, combined with rising costs for drivers, power units, and trailers, could put further pressure on organic revenue growth.

"Capacity remains loose and pricing for carriers is weak," said Ben Cubitt, senior vice president of consulting and engineering for Transplace LLC, a large Frisco, Texas-based 3PL. Cubitt said earlier this week that he finished three bid reviews before Christmas and that "all showed strong savings."

Evan Armstrong, Armstrong & Associates' president, said M&A volume would stay strong during 2016, though there will likely not be as many megadeals. He also noted that XPO, whose four-year buying spree has made it the talk of the industry, would be off the acquisition grid next year as it digests the Con-way acquisition.Brad Jacobs, XPO's chairman and CEO, said as much at an industry conference this past fall.

Armstrong also delivered some words of caution for prospective acquirers: A recent survey of 3PL customers found that large providers with $10 billion or more in annual gross revenues—revenues before the costs of purchased transportation—rate lower in customer service, value/pricing competitiveness, and process improvement capabilities than do providers with less than $1 billion in gross revenues. "There is a feeling that very large 3PLs need higher pricing to support their vast organizations and tend to be less proactive in identifying customer process improvements," Armstrong said in an e-mail. He added that service disruptions that often plague post-merger integrations could be a factor in the perception gap between small and large providers.

Armstrong noted that 56 percent of the respondents are trying to shrink their provider universe. "However, reductions due to acquisitions are not an optimal way of selecting your core 3PL group," he said. Armstrong said the continued consolidation among large players will "put more pressure on organizations to properly evaluate and select 3PLs which meet their needs."

Uber just gave its billionth ride

• Maya Kosoff
 
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• 15h

Uber

Uber has given one billion rides,the company announced Wednesday.

According to the company, Uber gave its one-billionth ride in London on Christmas Eve last week.

"Marvin and Ara just made our day," the company said in a blog post. "Their £5 London uberX ride together from London Fields, Hackney to Hoxton in Ara’s blue Honda Insight Hybrid was the billionth Uber trip."

It may seem silly to recognize a milestone like reaching a certain number of rides given, but it points to Uber's staggering growth and adoption.

The first Uber ride ever given happened on June 1, 2010 in San Francisco, so delivering a billion rides in five and a half years is pretty astounding.

In a blog post last December, about a year ago, the company said it was doing about a million rides per day, and had given 140 million rides throughout 2014. Now, the company operates in more than 300 cities in 68 countries.

The company is raising a new round of funding that would value it at $62.5 billion — Uber's already the most valuable private tech company in the world, so this just puts more room between it and the world's second-most valuable startup, Xiaomi. 

In honor of its billionth ride, Uber says it's giving Ara, the billionth-ride driver, a vacation to the Uber city of his choice, and the rider, Marvin, will get free Uber rides for a year. 

Personal Predictions for Supply Chain Management in 2016

I believe that SCM in 2016 will be focused on customers – more than ever before! First, analyzing customer data could become the new core competency. Many companies already got rid of non-core processes. For example, Apple has focused on R&D and marketing but outsourced production to contract manufacturers – a typical smiling curve! Now, companies are increasingly focused on analyzing customer data and just happen to be making phones or cars. Cars could soon be offered by innovative IT giants from silicon valley who outsource engineering to traditional carmakers. Second, production will take place closer to consumer markets. While labor costs in China continue to increase (and there is no “new China”!), new technologies make production close to major markets affordable again. For example, Adidas will start production in Germany in 2016 – in its new “Speedfactory”, which is operated largely by robots. This could dramatically speed up delivery to fashion-conscious consumers. Finally, what we will see in 2016 are truly sustainable business models 

Handling the late holiday rush proves tough for FedEx and UPS

BY MATT LINDNER Associate Editor

More than 60 million packages were delivered on Christmas Eve, according to ShipMatrix. FedEx even made deliveries on Christmas Day after a surge in online orders and bad weather kept the carrier from delivering some orders by Christmas Eve.

FedEx Corp. improved its on-time delivery performance on Christmas Eve to 96.2% from an on-time rate of 77% on Dec.  23, according to data from software provider ShipMatrix Inc., but those gains weren’t enough to prevent some e-commerce orders from not arriving in time to be opened Christmas morning.

A surge in last-minute online orders before Christmas caused delivery delays for FedEx, which says it handled a record number of packages during the final week of the holiday shopping season, though it declined to specify volumes

“A surge of last-minute e-commerce shipments, combined with severe weather in several areas of the country, did cause delays in some markets,” a spokeswoman says. “FedEx Express expanded delivery operations on the Saturday following Christmas, delivering delayed shipments along with our normal Saturday volume, and resumed normal pickup and delivery services on Monday.”

The past week has not been kind to FedEx, which serves as the shipping carrier for 307 of Internet Retailer’s Top 1000 online retailers, according to Top500Guide.com. On Tuesday,FedEx reported service delays stemming from winter storms that hit the Midwestern and Southwestern United States. Last week, bad weather on Dec. 23 also caused unspecified shipping delays.Another FedEx spokeswoman says the company delivered packages on Christmas Day.

The weather also affected United Parcel Service Inc., which posted on-time delivery rates of 79.5% on Dec. 23 and 97.7% on Christmas Eve, according to ShipMatrix.

“The drop on Wednesday (the 23rd) for both carriers was largely due to bad weather,” says Satish Jindel, founder of SJ Consulting Group, a sister company of ShipMatrix. “These figures are different from prior weeks, as these reflect what actually got delivered and are not adjusted for errors by shippers and consumers, such as shipping to a wrong address, etc.”

ShipMatrix reports that FedEx, UPS and the U.S. Postal Service combined to deliver more than 60 million packages on Christmas Eve, up 70% from a typical day.

“Even with on-time performance of 99%, 600,000 packages will be delivered late,” ShipMatrix writes. “Complaints by a few people on social media, who expect their packages to take priority over safety of FedEx and UPS employees working in bad weather, is not a reflection on the service provided by these carriers.”

FedEx declined to confirm ShipMatrix’s numbers, saying only that the company is “extremely proud of our team members who worked around the clock to deliver the holidays.” A UPS spokesman previously told Internet Retailer that “UPS will not attempt to validate third party consultants’ data.” 

Data from marketing software company Custora shows that 5.4% of all online orders during the holiday season were placed during the final week of the holiday shopping season, from 12/20-12/24, down from 6.5% during the same time last year. Custora also reports that social media drove 1.8% of overall online sales during this year’s holiday shopping season, down from 1.9% last year.

Some industry experts say the last-minute push may already have carriers thinking about next holiday season.

“No major storms took out any major hubs and so the work-arounds were adequate to keep product flowing,” says Jim Tompkins, CEO of supply chain consulting firm Tompkins International. “The more significant delays that did occur were the result of the volume of parcels exceeding expectations (8- 10% above plan). This was a result of strong online sales, huge mobile shopper volume and savvy shoppers that cherry-picked promotions. UPS and the USPS handled these unexpected volumes better by prioritizing customer satisfaction above profitability, whereas FedEx reversed those priorities.”

FedEx would not say whether it would compensate shippers or consumers for late deliveries. “We work directly with each affected customer on a case-by-case basis,” a spokeswoman says.

Amitai Sasson, vice president of marketing and development with online art retailer OverstockArt.com (No. 812 in the Internet Retailer 2015 Second 500 Guide), a FedEx client, says his company experienced  a surge in last-minute shoppers but didn’t notice shipping delays. Sasson declined to provide specifics on OverstockArt.com’s last-minute orders.

“We attributed (the last-minute surge in orders) to our improvement in messaging on shipping timelines along with our improved positioning for our gift certificates,” he says.

Data from IBM, based on millions of transactions from retail websites of its clients, shows that all online sales grew 13.3% from Nov. 1 through Dec. 26 compared to the same period last year. IBM did not break out last-minute online shopping statistics.

Other holiday shopping trends reported by IBM include:

• Mobile devices accounted for more than half (52.1%) of all traffic to retailer websites, up 16.7% year over year.
• Shoppers who used both their desktop computers and mobile devices to shop spent more this year, with an average order value of $127.49, up 2.5% from $124.33 last year.
• Consumers used their smartphones more in the past for holiday shopping, and more than they used tablets. Smartphones accounted for 16.3% of all online sales this year, a jump of more than 90% year over year, while tablets accounted for 14.5% of online sales. The contrast between tablets and smartphones is starker when looking at online traffic figures. Smartphones accounted for 40.2% of e-commerce traffic during the holiday shopping season compared with 11.8% for tablets.

How the Internet of Things Transforms Trucking

Beyond smart trucks, the next evolution of IoT logistics will see the entire supply chain linked with connected things, the Internet of Everything, and with falling costs for smart tags, pallets will talk to trailers, containers will talk to trucks and fleets could talk to fleets.By Gary Wollenhaupt

December 30, 2015

As trucks travel interstate highways, onboard sensors collect, send and receive information via cloud-based fleet management systems.

As technology advances, the truck is becoming a part of the broader Internet of Things (IoT) logistics ecosystem that could transform trucking and the logistics industry.

Over the next decade, the IoT in logistics is expected to generate $1.9 trillion in value, part of an overall $8 trillion in IoT value generated globally, according to the 2015 DHL and Cisco Internet of Things Trend Report.

According to the report, the logistics industry will unlock greater operational efficiency as IoT devices connect in real time the millions of shipments moved, tracked and stowed each day.

In warehousing, connected pallets and products will drive smarter inventory management, improved service and lower costs.

Mobile devices like smartphones and tablets can remove barriers to creating, accessing and sharing the data that’s generated by connecting trucks to the Internet of Things.

Video Exclusive (above): Jack Allen, Sr. Director of Logistics and Manufacturing Solutions, Cisco - “Preparing for the Internet of Everything (IoE)” presentation.

Connected Trucks Deliver Data
With IoT logistics, tracking and tracing goods becomes faster, more accurate, predictive and secure; while analytics from a connected fleet can predict asset failure and schedule maintenance checks automatically. Connecting drivers and delivery personnel with surrounding vehicles and people can help monetize and optimize empty “deadheads” to drive efficiency gains.

Vehicles that used to only transport freight are now delivering data as well, and lots of it.

Today, trucks are becoming a mobile node in the Internet of Things, a two-way connection between the driver and the dispatcher that reduces costs and delays and delivers greater visibility to shippers and trucking companies.

Trucking companies, shippers and drivers benefit from IoT logistics data that’s now available to them from mobile devices in the cab.

Connected with high-speed cellular Internet data from sensors on trucks, dispatchers can measure real-time fuel efficiency, and how drivers operate their vehicles - do they brake too late, or waste diesel on lead-foot starts?

Fleet management systems can recommend the optimal speed for a route and how get the most mileage out of each gallon of fuel. GPS-equipped systems track driver routes, time spent loading and unloading and help manage hours of service compliance. User-generated input via smartphones and tablets can help truckers route around construction or congested areas.

For its fleet management solutions, Telogis - a leading provider of telematics, compliance and navigational software - has developed navigational communities that give drivers a channel to give feedback on the road, customer loading docks, weather and anything else that could impact the delivery schedule.

“Drivers tell us this is getting smarter every day, and the reality is the more feedback they provide, the system does become smarter”Erin Cave, VP product management, navigation and compliance, Telogis

“Drivers tell us this is getting smarter every day, and the reality is the more feedback they provide, the system does become smarter,” says Erin Cave, vice president of product management, navigation and compliance at Telogis.

Sensor-equipped trucks can also tell maintenance crews when it’s time to bring a truck in for servicing brakes, tires, oil and other critical systems. With onboard sensors, the maintenance team can bring a truck in for service long before it might be sidelined by unexpected failures.

Connected Trucks Help Retain Drivers
Not too long ago, truck drivers saw mobile devices in the cab as an intrusion. But after a few hundred thousand miles on the road aided by a smartphone or tablet in the cab, many drivers won’t haul a load without an electronic logging device (ELD).

“Most companies, when they make the transition to ELD, have a group of drivers say they’re going to quit, and after 30 days of using the system, they won’t take a truck that doesn’t have one,” says Tom Bray, senior editor at J.J. Keller & Associates.

Drivers love the fact that IoT-linked trucks can help them do their jobs faster and safer. ELDs can dramatically cut the time spent filling out paper logbooks to comply with hours of service regulations. Load turnarounds can be faster with freight and locations that are tagged with RFID, NFC or Bluetooth low energy devices.

Drivers can use tablets for electronic vehicle inspection reports, get basic troubleshooting and service instruction, stay up to date with training and use them for entertainment and communication in their off-duty hours.

Mobile apps allow managers and drivers to access reporting and management tools via smartphones and tablets. Managers can stay in touch while they’re on the go, with emergency alerts and dashboard reporting to stay on top of trends.

Telematics solution providers are developing analytics tools to manage the growing data stream. For instance, Omnitracs launched Omnitracs Tracking, an app that monitors truck driver location and speed and provides exception reporting if drivers perform unsafe maneuvers or exceed operating thresholds.

Gain Visibility with Connected Freight and Trucks
Beyond smart trucks, the next evolution of IoT logistics will see the entire supply chain linked with connected things.

With falling costs for smart tags, pallets will talk to trailers, containers will talk to trucks and fleets could talk to fleets. Telematics sensors in trucks and multisensor tags on items transmit data on location, condition and whether a package has been opened. Sensors that measure the capacity of each load can provide additional insight into spare capacity in vehicles.

The IoT data could then populate a central dashboard that focuses on identifying spare capacity on particular routes or destination pairs and analytics could recommend suggestions for consolidating and optimizing the route.

This additional visibility would create fleet efficiencies, improve fuel economy and reduce deadhead miles, which account for up to 10 percent of truck miles.

With each link connected to the cloud, there will be an unprecedented level of supply chain visibility from dock to dock and every step in between.

About the Author
Gary Wollenhaupt is a freelance writer who specializes in the transportation and automobile industries. With a focus on logistics, he works with editors of custom publications, trade magazines and corporations to tell compelling stories that inform and engage audiences. His other areas of expertise include PCI compliance, retail design, auto and truck performance parts retailing, healthcare, luxury travel and luxury consumer goods. Follow him on Twitter: @gary_writes.

Source: Samsung

How Fleet Management Works
Verizon Networkfleet combines patented GPS and telematics technologies to create a comprehensive fleet management system that works anywhere you do.

1. The installed Networkfleet units monitor vehicle location, engine diagnostics, and other fleet performance metrics – 24/7.
2. The fleet tracking system automatically transmits vehicle data over a secure wireless network to the Networkfleet Data Center.
3. Fleet operators access a secure Networkfleet website to receive vehicle alerts, track vehicle locations, and monitor driver behavior. Using PCs, smart phones and tablets, managers monitor fleet tracking data to make real-time decisions that lower costs and improve fleet performance.

Fleet tracking data can be integrated with Garmin, Esri® mapping and other GPS tracking system software to manage your fleet more effectively.

Harris Teeter To Invest $95M In First Virginia Distribution Operation
by Virginia Economic Development Partnership
Posted: 2015-12-29 15:22:32 EST

RICHMOND - Governor Terry McAuliffe announced that Harris Teeter, a wholly-owned subsidiary of The Kroger Co. (NYSE: KR), will invest $95 million to establish a 1.5 million-square-foot food distribution operation in Caroline County, of which the first phase will be at least 650,000 square feet. Virginia successfully competed with North Carolina for the project, which will create 400 new jobs.

Speaking about today’s announcement, Governor McAuliffe said, “It is gratifying that our business attraction efforts will result in a well-known brand like Harris Teeter establishing its first Virginia distribution operation in Caroline County. This project is a significant win that represents major investment and the creation of hundreds of jobs. Today’s announcement is a great step forward in our efforts to diversify and build a new Virginia economy.”

“Harris Teeter’s significant investment in Caroline County is a testament to the superior assets the Commonwealth has to offer businesses,” said Secretary of Commerce and Trade Maurice Jones. “Virginia, which is within a 10-hour drive from over 50% of the U.S. population, has proven to be a strategic location for companies’ distribution and logistics assets. We have a coveted location in the middle of the U.S. east coast, outstanding talent, a great business climate and incredible quality of life.”

Harris Teeter, headquartered in Matthews, N.C., was co-founded in 1960 by North Carolina grocers W.T. Harris and Willis Teeter. Harris Teeter operates over 230 stores and three fuel centers in seven states and the District of Columbia. Harris Teeter has approximately 28,000 associates.

“Harris Teeter is thrilled by the opportunity to grow our business with a new distribution center in Caroline County,” said Danna Robinson, communication manager for Harris Teeter. “The location makes sense for our existing distribution structure, and we look forward to contributing to the county’s economic growth as well as job market as we move forward with this project.”

The Virginia Economic Development Partnership worked with Caroline County to secure the project for Virginia. Governor McAuliffe approved a $650,000 grant from the Commonwealth’s Opportunity Fund to assist Caroline County with the project. The company will also be eligible to receive a Major Business Facility Job Tax Credit. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

“Harris Teeter’s 1.5 million-square-foot distribution center is a historically large investment for Caroline County,” said Chairman of the Caroline County Board of Supervisors Calvin Taylor. “Caroline County is gratified that an exceptional company like Harris Teeter has selected our community. Caroline County’s interstate access, central location on Interstate 95 and exceptional workforce continues to make Caroline an exceptional community in which businesses may invest and thrive.”

“In committing to Virginia and to Caroline County, Harris Teeter has made an excellent decision,” noted Senator Ryan T. McDougle. "The jobs generated by this facility will bolster Caroline’s economy and aid in spurring economic growth and development for the entire region."

THE MOBILE CHECKOUT REPORT: How retailers and tech giants are pushing consumers to do more of their spending on smartphones

• Jaime Toplin
  

BI Intelligence

As millennials and younger consumers become larger parts of the key spending demographic, mobile devices like smartphones and tablets are quickly becoming consumers' primary computing device. But for retailers, that poses a key challenge: Users are spending considerable time shopping on mobile, but making relatively few purchases. 

As a result, social networks, payment processors and card networks, and retailers themselves, are all developing solutions that make it easier for users who shop on mobile to begin to buy on mobile, and then channeling funds into products that incentivize users to do so.

By presenting options like on-site buy buttons, single-click checkout, financing services, and unified offline-to-online commerce experiences, various brands are beginning to convert desktop shoppers to mobile. But mobile wallets are beginning to take hold, and if they can successfully combine multiple features that ease barriers to mobile purchasing into one payment platform, they could hold the ticket to retailer success in increasing mobile purchases. 

In a new report from BI Intelligence, we predict how e-commerce will change and m-commerce will grow, explain why users are shopping, but not buying, on mobile devices, look at how stakeholders are looking to attract these users, and showing how products like mobile wallets could be game-changing in terms of mobile retail. 

Here are some key takeaways from the report: 

• E-commerce and m-commerce are on the rise. In 2014, mobile comprised 11.6% of the US' $303 billion in e-commerce sales. BI Intelligence forecasts that by 2020, mobile will account for 45% of the $632 billion in total e-commerce sales. 
• Users are spending the majority of their commerce-related browsing time in browsers rather than apps. In order to increase m-commerce conversion rates, retailers should be focused on browser-based solutions, which attract a wider audience than the loyal shoppers who download apps. 
• If they move into the browser, mobile wallets like Apple Pay and Android Pay could drive an increase in m-commerce. That's because they provide a more streamlined experience to users than any of the other proposed solutions. However, it'll be hard for them to catch on fully if they remain focused solely on apps and in-store payments. 

A cargo ship longer than the Empire State Building just arrived in LA

• By Rich McCormick
 
• on December 29, 2015 12:48 am
 
• Email 

The CMA CGM Benjamin Franklin is longer than the Empire State Building is tall, dwarfs the largest aircraft carrier in the US Navy, and can carry the volume of 235 Olympic swimming pools. And for the first time, the vast vessel has docked at the Port of Los Angeles, making it the largest container ship to ever reach the United States.

The cargo ship arrived in Los Angeles on Saturday, the first part of a multi-stage trip along the US west coast that will also see it stop in Oakland on December 31st. Set against the Port of Los Angeles' huge cranes, a time-lapse video of the vessel arriving for the first time in the US almost makes it look normal in scale, but compared to the largest boats on the sea, the Benjamin Franklin is a monster. Its deck is 1,300 feet from prow to stern — longer than than three football fields — and it can lug 18,000 containers across the world's oceans, requiring an engine that puts out as much thrust as 11 Boeing 747-400 engines.

Eric Garcetti, mayor for Los Angeles, said that the city was chosen by French shipping company CMA CGM for the Benjamin Franklin's first stop to show that the port was "among the world's greatest." Just a year after labor disputes brought seabound trade on the United States' west coast to a standstill, the Port of Los Angeles will hope successfully processing the largest cargo vessel that America has ever seen will prove that the country's Pacific ports are back up and running.

Hint: Use the 's' and 'd' keys to navigate

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