Logistics need a shake-up

Date: 26-10-2017
Source: The Economist

Surging demand requires new distribution methods

YANG MING IS standing beside his red electric tricycle in a courtyard in Beijing. A former factory worker from an industrial town outside the capital, he and dozens of other men are awaiting the arrival of a lorry. As it pulls in from JD’s warehouse, the men form an assembly line to unload boxes. They reload the packages to their tricycles and are off, weaving through the traffic. JD has about 400 such delivery stations in Beijing alone. Across the country, 2.5m couriers are at the ready to shuttle packages to their final destinations. When he first started several years ago Mr Yang made about 80 deliveries a day. Now the number is closer to 130 and still rising.

To a consumer, e-commerce’s rapid delivery seems like magic: a few clicks, and within an hour or two a package can land on your doorstep. Behind this, however, lies an enormous amount of investment, engineering and hard work as firms face ever-rising expectations of fast, cheap delivery. Delivery networks are likely to be strained as the volume of parcels grows. That is spurring new experiments in logistics, some mundane (picking up parcels in stores) and some apparently mad (Amazon patents for underwater warehouses).

Another Sign Europe Is Over Crisis? Its Companies Are Investing at Home Again

Date: 27-10-2017
Source: The Wall Street Journal

After chasing growth abroad for years, large eurozone corporations are expanding their footprint in Europe as region’s economy picks up

European business is coming home.

Daimler AG is planning to spend billions to get its German factories ready for an electric-car push. Property giant Unibail-Rodamco SE is expanding its shopping-mall footprint across the region and laser-equipment maker Trumpf GmbH has built a new distribution center in Germany to handle surging demand.

For years, European business has chased growth abroad, spending billions to build new factories in the U.S., Mexico, China, Brazil and other fast-growing emerging economies while investment in Europe languished. Now, as growth takes hold in Europe nearly a decade after the financial crisis, industry is investing in Europe again.