Connect with us

Reports

Whether Shipping by Planes, Trains or Automobiles, the Future of Freight is Evolving

MD Staff

Published

on

With growing eCommerce, shifting trade patterns and infrastructure constraints, three key pillars will likely underpin the next-generation supply chain — connected community, holistic decision-making and intelligent automation.

Significant disruption within the last-mile of delivery is growing imminent. Through 2018, global last-mile startups raised $3.9 billion in funding, up from $454 million in 2016. New entrants are looking to capitalize on gaps between rising expectations and current network limitations with a growing array of emerging channels, focusing on crowdsourced delivery, new collection point networks and smart lockers.

The horizontal partnerships and digital freight platforms connecting larger stretches of the global value chain signal the rise of connected community, an expanding layer of digital connective tissue forming across the highly-fragmented ecosystem.

Global movers are harnessing a mix of connected transportation, cargo and warehouses to evolve traditional, linear supply chains into dynamic networks capable of holistic decision making.

Foundations of a touchless supply chain are now visible, as autonomous operations begin or enter pilot phases at every stage of the movement of goods value chain, ushering in an era of intelligent automation and the collaborative power of human and machine in logistics.

Why this matters
Deloitte analyzed strategic innovation among forward-thinking players across the global movement of goods ecosystem. From ocean shipping and ports, to logistics providers, transportation and retailers, it reveals three key pillars that will underpin a next-generation supply chain — connected community, holistic decision-making and intelligent automation. Innovation across these pillars is painting a picture of the future state of global logistics and provides businesses with a framework for looking at the rapidly changing ecosystem.

Key quote

Over time, a global population of consumers demanding greater delivery volume, speed, flexibility, transparency and convenience will force players to adapt. To get started, organizations should define their future ambitions and where to play in the future movement of goods ecosystem. Guided by a strategic vision, organizations can begin examining how the foundational pillars, connected community, holistic decision-making and intelligent automation, can help them win in chosen segments and markets — and the foundational and emerging capabilities required to enable those pillars.—Michael Daher, principal, Deloitte Consulting LLP, and US transportation practice leader

Paving the way for an innovative tomorrow
The logistics industry is approaching an inflection point. As the global population continues to swell, urbanize, gain purchasing power and shift to e-commerce all at the same time, companies can drive future and ongoing success through the creation of a solid foundation focused on an end-to-end supply chain through acquisitions, partners and organic innovation to move more goods more efficiently.

Despite being at the beginning of the journey, logistics providers, retailers and other large global movers are applying a mix of enabling technologies and innovative business models to drive the efficiency and supply chain orchestration needed to meet tomorrow’s package volume demand and capture market share. The competitive advantages redefining the global supply chain increasingly center on three core pillars:

  • Connected community: The ability to collaborate and connect with partners to see across the network.
  • Holistic decision-making: The ability to harness and harmonize traditional and new data to continuously learn, optimize and predict.
  • Intelligent automation: The ability to utilize the right human or machine for the task at hand and automate digital processes.

Utilizing the pillars of the Future of the Movement of Goods help shippers to evolve into more integrated, intelligent and automated end-to-end networks that can move more goods more quickly to more places, and with more transparency and efficiency than today.

Investment in innovative last-mile start-ups more than doubled
The foundation of a next-generation global movement of goods network is actively forming as companies of all sizes, including start-ups, put a focus on an end-to-end supply chain ecosystem with a critical eye on the last 1,000 feet of direct-to-consumer delivery. From 2017 to 2018, the funding flow of “smart money” from capital investors to support last-mile delivery more than doubled. Plus, the trend of crowd-sourcing to accommodate and strengthen last-mile solutions for delivery of goods accounted for 72%, outpacing collection point network and lockers, digital aggregators, software and droids and drones.

Continue Reading
Comments

Reports

Pandemic Threatens Human Capital Gains of the Past Decade

Newsroom

Published

on

The COVID-19 pandemic threatens hard-won gains in health and education over the past decade, especially in the poorest countries, a new World Bank Group analysis finds. Investments in human capital—the knowledge, skills, and health that people accumulate over their lives—are key to unlocking a child’s potential and to improving economic growth in every country.

The World Bank Group’s 2020 Human Capital Index includes health and education data for 174 countries – covering 98 percent of the world’s population – up to March 2020, providing a pre-pandemic baseline on the health and education of children. The analysis shows that pre-pandemic, most countries had made steady progress in building human capital of children, with the biggest strides made in low-income countries. Despite this progress, and even before the effects of the pandemic, a child born in a typical country could expect to achieve just 56 percent of their potential human capital, relative to a benchmark of complete education and full health.

Twelve Pacific Island Countries were included in this Index. Based on the report, a child born today in the Pacific Islands will on average reach 48 percent of his or her full potential, significantly lower than the global benchmark, with the lowest scoring countries being Solomon Islands and Marshall Islands at 42 percent, and Papua New Guinea at 43 percent. Stronger performing countries in the Pacific include Fiji, Kiribati, Samoa, Tonga and Palau.

“The pandemic puts at risk the decade’s progress in building human capital, including the improvements in health, survival rates, school enrollment, and reduced stunting. The economic impact of the pandemic has been particularly deep for women and for the most disadvantaged families, leaving many vulnerable to food insecurity and poverty,” said World Bank Group President David Malpass. “Protecting and investing in people is vital as countries work to lay the foundation for sustainable, inclusive recoveries and future growth.”

Due to the pandemic’s impact, most children – more than 1 billion – have been out of school and could lose out, on average, half a year of schooling, adjusted for learning, translating into considerable monetary losses. Data also shows significant disruptions to essential health services for women and children, with many children missing out on crucial vaccinations.

In the Pacific, many countries are responding to multiple crises; with response and recovery efforts continuing following April’s Tropical Cyclone Harold that caused widespread destruction in Solomon Islands, Vanuatu, Fiji and Tonga. The region had also been recovering from one of the worst measles outbreaks recorded, affecting American Samoa, Fiji, Kiribati, Tonga and, most significantly, Samoa – where the outbreak claimed 83 lives, the majority of who were young children.

Furthermore, the ongoing and increased threats of natural disasters and impacts climate change, with the added burden of some of the world’s highest rates of non-communicable diseases and overall low health capacity continue to threaten the lives and livelihoods of Pacific Islanders, that has been further exacerbated by the impacts of the global COVID-19 pandemic.

The 2020 Human Capital Index also presents a decade-long view of the evolution of human capital outcomes from 2010 through 2020, finding improvements across all regions, where data are available, and across all income levels. These were largely due to improvements in health, reflected in better child and adult survival rates and reduced stunting, as well as an increase in school enrollment. This progress is now at risk due to the global pandemic.

The analysis finds that human capital outcomes for girls are on average higher than for boys. However, this has not translated into comparable opportunities to use human capital in the labor market: on average, employment rates are 20 percentage points lower for women than for men, with a wider gap in many countries and regions. Moreover, the pandemic is exacerbating risks of gender-based violence, child marriage and adolescent pregnancy, all of which further reduce opportunities for learning and empowerment for women and girls.

Today, hard-won human capital gains in many countries are at risk. But countries can do more than just work to recover the lost progress. To protect and extend earlier human capital gains, countries need to expand health service coverage and quality among marginalized communities, boost learning outcomes together with school enrollments, and support vulnerable families with social protection measures adapted to the scale of the COVID-19 crisis.

The World Bank Group is working closely with Pacific countries to develop long-term solutions to protect and invest in people during and after the pandemic:

Ambitious, evidence-driven policy measures in health, education, and social protection can recover lost ground and pave the way for today’s children to surpass the human capital achievements and quality of life of the generations that preceded them. Fully realizing the creative promise embodied in each child has never been more important.

The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries strengthen their pandemic response. We are supporting public health interventions, working to ensure the flow of critical supplies and equipment, and helping the private sector continue to operate and sustain jobs. We will be deploying up to $160 billion in financial support over 15 months to help more than 100 countries protect the poor and vulnerable, support businesses, and bolster economic recovery. This includes $50 billion of new IDA resources through grants and highly concessional loans.

Continue Reading

Reports

Building confidence crucial amid an uncertain economic recovery

Newsroom

Published

on

With the COVID-19 pandemic continuing to threaten jobs, businesses and the health and well-being of millions amid exceptional uncertainty, building confidence will be crucial to ensure that economies recover and adapt, says the OECD’s Interim Economic Outlook.

After an unprecedented collapse in the first half of the year, economic output recovered swiftly following the easing of containment measures and the initial re-opening of businesses, but the pace of recovery has lost some momentum more recently. New restrictions being imposed in some countries to tackle the resurgence of the virus are likely to have slowed growth, the report says.

Uncertainty remains high and the strength of the recovery varies markedly between countries and between business sectors. Prospects for an inclusive, resilient and sustainable economic growth will depend on a range of factors including the likelihood of new outbreaks of the virus, how well individuals observe health measures and restrictions, consumer and business confidence, and the extent to which government support to maintain jobs and help businesses succeeds in boosting demand.

The Interim Economic Outlook projects global GDP to fall by 4½ per cent this year, before growing by 5% in 2021. The forecasts are less negative than those in OECD’s June Economic Outlook, due primarily to better than expected outcomes for China and the United States in the first half of this year and a response by governments on a massive scale. However, output in many countries at the end of 2021 will still be below the levels at the end of 2019, and well below what was projected prior to the pandemic.

If the threat from COVID-19 fades more quickly than expected, improved business and consumer confidence could boost global activity sharply in 2021. But a stronger resurgence of the virus, or more stringent lockdowns could cut 2-3 percentage points from global growth in 2021, with even higher unemployment and a prolonged period of weak investment.

Presenting the Interim Economic Outlook, covering G20 economies, OECD Chief Economist Laurence Boone said: “The world is facing an acute health crisis and the most dramatic economic slowdown since the Second World War. The end is not yet in sight but there is still much policymakers can do to help build confidence.”

She added: “It is important that governments avoid the mistake of tightening fiscal policy too quickly, as happened after the last financial crisis. Without continued government support, bankruptcies and unemployment could rise faster than warranted and take a toll on people’s livelihoods for years to come. Policymakers have the opportunity of a lifetime to implement truly sustainable recovery plans that reboot the economy and generate investment in the digital upgrades much needed by small and medium-sized companies, as well as in green infrastructure, transport and housing to build back a better and greener economy.”

The report warns that many businesses in the service sectors most affected by shutdowns, such as transport, entertainment and leisure, could become insolvent if demand does not recover, triggering large-scale job losses. Rising unemployment is also likely to worsen the risk of poverty and deprivation for millions of informal workers, particularly in emerging-market economies.

The rapid reaction of policymakers in many countries to buffer the initial blow to incomes and jobs prevented an even larger drop in output. The Interim Outlook says it is essential for governments not to repeat mistakes of past recessions but to continue to provide fiscal, financial and other policy support at the current stage of the recovery and for 2021. Such measures should be flexible enough to adapt to changing conditions and become more targeted.

Continued state support needs to be increasingly conditioned on broader environmental, economic and social objectives. Better targeting of support to where it is needed most will improve prospects, particularly for the unemployed and the low skilled – groups who too often miss out on training – and for youths. The report acknowledges that a balance needs to be struck between providing immediate support to strengthen the recovery while encouraging workers and businesses in hard-hit sectors to move into more promising activities.

Support also needs to be focussed on viable businesses, moving away from debt into equity, to help them to invest in digitalisation, and in the products and services our society will need in the decades ahead. Far stronger commitment needs to be devoted to address climate change in recovery plans, in particular conditioning support on greater investment in green energy, infrastructure, transport and housing.

At the same time, and with the virus continuing to spread, investing in health professionals and systems must remain a priority. The OECD says global co-operation and co-ordination are essential, as greater funding and multilateral efforts will be needed to ensure that affordable vaccines and treatments will be deployed rapidly in all countries when available.

The release of the Interim Economic Outlook follows an OECD Ministerial Roundtable at which Secretary-General Angel Gurría called for countries to go further in greening the stimulus packages they have announced to tackle the impact of the COVID-19 crisis in order to drive sustainable, inclusive, resilient economic growth and improve well-being.

“Climate change and biodiversity loss are the next crises around the corner and we are running out of time to tackle them,” he said. “Green recovery measures are a win-win option as they can improve environmental outcomes while boosting economic activity and enhancing well-being for all.”

Continue Reading

Reports

4 million jobs added to Nepal’s economy in the past decade -Report

Newsroom

Published

on

Nepal’s economy added nearly four million jobs over the past decade, and average job quality increased significantly, according to the World Bank’s recent Nepal Jobs Diagnostic report.  But continued job creation, especially of wage jobs, is needed to absorb underutilized workers into better-quality, stable, and well-paid jobs. The economic disruption caused by the COVID-19 pandemic – while not addressed in this report – highlights the importance of increasing stable and secure employment in the post-pandemic recovery period.

Nepal’s economy has been gradually shifting from largely subsistence agriculture to more modern industry and services, and this structural transition is bringing better work opportunities for the labor force. Despite great strides, not all job seekers are able to access quality jobs, especially women. In the last decade, large numbers of men have entered jobs in construction, manufacturing, commerce and transportation, or have migrated abroad. Even though many of these are informal jobs or temporary wage jobs, they are nevertheless more productive and provide improved livelihoods compared to traditional low-productivity farm work. Women, on the other hand, have not transitioned in significant numbers. The share of wage work in Nepal jumped from 17 percent to 24 percent of total employment between 2008 and 2018, as nearly half of the jobs added since 2008 were wage jobs.

The shift toward wage employment signals a fundamental change in Nepal’s economic development and is similar to patterns seen around the world. As economies diversify their production activities and increase scale economies, employment becomes more specialized and more productive, and jobs are increasingly based in firms rather than self-employment, and pay more,” stated Dr. Elizabeth Ruppert Bulmer, World Bank Lead Economist and main author of the report. “Urbanization amplifies these effects by concentrating economic activities while increasing the variety of products and services.”

Evidence from a combination of data sources – national labor force surveys from 1998, 2008 and 2018, the 2018 Economic Census, and a 2019 survey of 900 SMEs across 6 districts – points to a number of constraints to achieving better labor market outcomes in Nepal. One key impediment is Nepal’s dramatic topography, which makes access to wage jobs and to product markets costly. Most jobs are informal and concentrate in relatively low productivity sectors, while most firms are micro-sized with one or two employees, and target small local markets rather than exporting or connecting to regional or global value chains. In addition to credit constraints, many SMEs cite tax regulations, high taxes, scarce skills, and bureaucratic inefficiencies as obstacles to growth and therefore job creation.

Gendered social norms have limited female labor mobility and work opportunities, reflected by the fact that most women remain in unpaid work. Three-quarters of new jobs taken up by women between 2008 and 2018 were in non-wage self-employment or unpaid family work, much of which was farm work. Occupational segregation and social norms contribute to the large earnings gap between men and women, as per the report.

In order to improve job outcomes in Nepal, the report recommends policies focusing on fostering SME productivity and growth; improving the business environment and labor market policies; increasing the individual, family, and economy-wide benefits of international migration; and preparing and connecting women and youth to better jobs, including entrepreneurship.

While the report does not address the shocks from COVID-19 experienced by Nepal’s economy and its people, it underscores the imminent priority for Nepal to save livelihoods of the most vulnerable workers, including those in subsistence agriculture and urban and rural informal day laborers or self-employed workers who lost their income sources,” states Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal and Sri Lanka. “The Government of Nepal has already initiated programs including the Youth Employment Transformation Initiative Project to address the immediate labor market challenges, and it is hoped that this analysis will further guide policy interventions to improve job outcomes as part of Nepal’s resilient recovery efforts from the crisis.”

Continue Reading

Publications

Latest

Middle East1 hour ago

UAE and Israel: Nothing to See Here

Across the world, the August agreement between the UAE and Israel, signed in September in Washington, to normalize their bilateral...

Energy News3 hours ago

World Bank Project to Boost Household Access to Affordable Energy

Today, the World Bank Board of Directors approved $150 million in financing to improve access to modern energy for households, enterprises, and public institutions...

Reports5 hours ago

Pandemic Threatens Human Capital Gains of the Past Decade

The COVID-19 pandemic threatens hard-won gains in health and education over the past decade, especially in the poorest countries, a...

East Asia7 hours ago

The Chinese Agitprop: Disinformation, Propaganda and Payrolls

“If you repeat a lie often enough people will believe it and you will even believe it yourself”. -Joseph Goebbels,...

Newsdesk10 hours ago

ILO: Developing countries should invest US$1.2 trillion to guarantee basic social protection

To guarantee at least basic income security and access to essential health care for all in 2020 alone, developing countries...

International Law11 hours ago

The UN reforms are required to make it functional

Today, the world we live in has become more unpredictable, insecure, and exposed to more vulnerability. Geopolitics is changing rapidly,...

Reports13 hours ago

Building confidence crucial amid an uncertain economic recovery

With the COVID-19 pandemic continuing to threaten jobs, businesses and the health and well-being of millions amid exceptional uncertainty, building...

Trending