automation Archives - Trade Ready https://tradeready.ca/tag/automation/ Blog for International Trade Experts Fri, 08 Jul 2022 15:26:52 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 Global trade outlook 2018: What are the biggest trends, technologies, opportunities and challenges? https://tradeready.ca/2018/tradeelite-recap/global-trade-outlook-2018-what-are-the-biggest-trends-technologies-opportunities-and-challenges/ https://tradeready.ca/2018/tradeelite-recap/global-trade-outlook-2018-what-are-the-biggest-trends-technologies-opportunities-and-challenges/#respond Mon, 15 Jan 2018 17:28:42 +0000 http://test.tradeready.ca/?p=25559 In this month's #TradeElite chat, we gave our panel the chance to provide some of their best tools and tips for SMEs going into 2018.

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Naturally, at the end of 2017, we began to look at what was in store for the year ahead. 

We published our run-down of the top 10 global trade trends we would be following in 2018, and how supply chain management would change over the next several months.

But, as always, we wanted to hear from the experts on what trends, technology, opportunities and challenges they had their eyes on. In this month’s #TradeElite Twitter chat, we gave our knowledgeable panel the chance to provide some of their best tools and tips for SMEs going into what is sure to be another big year for international business.

Follow the conversation below!

Moderator:

Audrey Ross (@TresAudrey), Logistics and Customs Specialist with Orchard International Inc. based out of Mississauga, ON.

Panelists:

Craig Atkinson, CITP (@CraigAAtkinson) – Consultant,
ITC and a visiting fellow with the World Trade Institute based out of Halifax, NS and Geneva, Switzerland.

Marie-France Paquet (@PaquetMF) – Chief Economist, Global Affairs Canada (GAC) based out of Ottawa, ON

Cathy Morrow Roberson (@cmroberson06) – Founder/Head  Analyst of Logistics Trends and Insights based out of Atlanta, GA

What are your goals for 2018? (Refocus on core customers? Improve Supply Chain? Become more sustainable? Tackle compliance threats?

Geographically, where do you see the biggest opportunities for North American companies in 2018?


As a follow up, by industry, where are the biggest opportunities for businesses around the world in 2018?

What new technologies do you think will have the biggest impact on global trade? (hyperloop, blockchain, AI, etc?)

2017 was filled with front-page incidents ranging from corruption, to forced / underpaid labour, to harassment, worker safety & the environment. Do you think companies will start taking steps to address these issues? Is “reputation risk” a threat?

What are steps SME’s can take to illuminate their supply chains and ensure their agents & partners are being transparent and following good business practices?

In an increasingly cluttered and complex global market, what makes businesses stand out? What helps them to grow quickly?

What tools and resources are available for businesses who want to tackle the challenges of international trade in 2018? Where is the best place to start?

Read the rest of the chat and follow future discussions by following the #TradeElite hashtag. Stay tuned for the next #TradeElite chat, coming up Thursday, February 15 at 2:30-3:30PM ET, and if you haven’t yet, join us on Twitter at @FITTNews.

Do you have any burning questions for the panel that weren’t addressed in the chat? What are your goals for 2018? Leave them in the comments below and let’s keep the conversation going!

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]]> https://tradeready.ca/2018/tradeelite-recap/global-trade-outlook-2018-what-are-the-biggest-trends-technologies-opportunities-and-challenges/feed/ 0 https://tradeready.ca/wp-content/uploads/2018/01/iStock-823493966.jpg 10 global trade trends we’ll be watching in 2018 https://tradeready.ca/2018/topics/import-export-trade-management/10-global-trade-trends-well-be-watching-in-2018/ https://tradeready.ca/2018/topics/import-export-trade-management/10-global-trade-trends-well-be-watching-in-2018/#respond Thu, 04 Jan 2018 21:04:14 +0000 http://test.tradeready.ca/?p=25507 What should you look out for or expect in the international business world in 2018?

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What should you look out for or expect in the international business world in 2018? Let’s take a look and see what could be dominating the headlines you read over the next twelve months.

1. The CPTPP

Though President Trump withdrew the U.S. from the TPP in January, the remaining 11 countries are working to resurrect the deal as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This deal, if signed, would eliminate approximately 95% of tariffs on trade between these countries, who have a combined GDP of over $10 trillion USD.

In November, Canada surprised the other 10 countries by declining to sign the agreement, to the surprise of the negotiators and the Canadian international trade community. However, amid efforts to diversify exports beyond the American market, it seems unlikely that Canada will continue to drag its heels on an opportunity to gain preferential access to the Japanese market in particular. Expect any final issues to be resolved and the CPTPP to be signed sometime in 2018.

2. Ongoing, contentious Brexit talks

By December 2017, the UK has completed the first phase of Brexit negotiations with the EU, covering issues such as the Irish border, citizens’ rights and financial settlements. The second phase of negotiations will cover the UK’s transition period after formally leaving the EU in March 2019. Discussions over the long-term relationship between the UK and EU will be included in phase three.

This process was complicated on December 13, when several Conservative British MPs joined the opposition to vote for an amendment requiring British Parliament to debate and vote on any final deal with the EU before it can be approved.

The second phase of Brexit negotiations are planned for 2018, and are expected to present few greater challenges than the first phase. The final phase on the long-term relationship between the UK and EU, however, presents several important questions about economic integration and free trade that Britain’s politicians and citizens have not yet agreed upon.

With two sets of challenging negotiations, and the extra hurdle of parliamentary approval, the odds that talks will drag into the final three months before the UK leaves the EU on March 29, 2019 remain high.

3. Sustainable, cleantech exports

If you’re involved in the clean tech and sustainability sector, 2018 should be a strong year for you. Despite the U.S. withdrawal from the Paris Agreement, global regulations are still trending towards stricter environmental and emissions regulations, requiring businesses to invest in cleaner technology in order to meet those standards. According to EDC President and CEO Benoit Daignault, total global investment in cleantech has now exceeded $1 trillion and will reach $2.5 trillion by 2020.

Canada in particular is placing great emphasis on this industry. The Canadian government promised $1 billion towards clean tech in its 2017 budget for R&D. The Trade Commissioner Service is also hiring 15 new Trade Commissioners to focus specifically on cleantech.

4. India, Brazil, and New Zealand – the rising stars of global trade

If you’re looking for new markets over the next 12 months, Morgan Stanley recommends you take a hard look at India. They argue the country’s increased digitization, new tax laws and younger demographics present a bright future, and predict 7.5% GDP growth in 2018. Morgan Stanley also predicts that India will be the world’s fastest growing economy over the coming decade.

Brazil will also see a quick recession recovery, growing an expected by 3.1% in 2018, according to the Brazilian government.

If you’re more interested in fully developed markets, Forbes ranked New Zealand second on its 2018 Best Countries for Doing Business rankings, citing its 3.6% economic growth in 2017, among other factors. The country also ranked highly in several categories for ease of doing business, including first in IP rights, bureaucracy/red tape levels surrounding business, and Transparency International’s Corruption Perception Index.

5. Meaningful action to reduce oil dependency

As Venezuela continues to suffer through the collapse of its oil-dependent economy, and the U.S. plans to become a net exporter of oil within 10 years, several oil-dependent economies are taking steps to diversify their economies.

In Russia, Putin’s approval levels are dropping as the economy struggles through lower oil revenues. Despite making fiscal changes to reduce the national budget’s dependence on oil revenues, he may push for new measures to improve his chances in the country’s 2018 presidential elections.

Saudi Arabia has plans to sell about 5% of Saudi Aramco, the state-owned oil company, through an IPO in 2018 and expects to generate up to $100 billion for the country’s Vision 2030 program, designed to shift the Saudi economy away from oil dependency towards tech and entertainment services.

Nigeria and Angola, meanwhile, are looking to agriculture to reduce their oil dependency issues. Nigeria, dependent on oil for 70% of government revenues, has launched a new program to increase yam exports to Europe and the U.S., as the country produces 60% of the world’s yams. Angola are instead focused on a broader approach to tap into their agricultural potential, which includes producing more cereals, milk, chicken, cassava, and other products.

6. Banks taking on blockchain

It is practically impossible these days to tune into the business or financial news and not hear a story about the latest blockchain or cryptocurrency development. Blockchain technology, allowing multiple players to have access to a live, unalterable digital ledger, offers game-changing possibilities for international trade finance. In 2018 this buzzworthy fintech is moving beyond Silicon Valley start-ups, into the mainstream world of global financial institutions.

In March, 2017, we reported on how banks were working to bring the advantages of blockchain technology to their corporate clients. In May, the R3 Consortium, made up of of 70 of the world’s biggest financial institutions and created to research and develop blockchain adoption, announced it had secured its largest ever investment. Then in October 2017, seven major banks partnered with R3 and Finastra to develop a blockchain-based marketplace for syndicated loans. On December 6, Amazon joined the blockchain party, announcing a partnership with R3 to allow the Corda platform to be the first distributed ledger technology to operate on the Amazon Web Services Platform.

What will we see in 2018? Swiss global financial company UBS has led an initiative to create a “utility settlement coin” that would represent each major national currency. If this coin is launched, the Corda platform could be adapted to facilitate its use.

IBM is working on launching their own blockchain platform that would allow banks to rapidly clear global payment transactions. There are also several start-ups working on digitizing the bill of lading process.

2018 could be the year some of the blockchain-based payment initiatives move from development to adoption.

7. Adoption of futuristic supply chain technology

Machine learning, automation and robotics, self-driving vehicles, new tracking technology – all of these futuristic supply chain tools will see major developments and implementation in 2018.

The past year was a big one for self-driving vehicles, culminating with the reveal of Tesla’s new fully electric semi, gaining pre-orders from big players such as PepsiCo, UPS and Walmart. Companies invested over $1 billion into self-driving and other trucking technologies in 2017.

Speaking of investing in supply chain technology, over $4 billion was invested in AI by U.S. venture capitalists in the past year. One application that has seen immediate return for companies adopting machine learning capable AI is Multi-Echelon Inventory Optimization (MEIO), which has been shown to reduce inventories by 30% while maintaining or improving customer fill rates.

Robots will also continue to play more of a role in warehouses in 2018. While some are increasingly capable of working independently, replacing human workers on the floor, others are working alongside humans, or being controlled by humans using VR applications. There’s no doubt that the demand for the skills needed to work with robotics will continue to rise in the year ahead.

8. Planning for the possibility of a world without NAFTA

The sixth round of NAFTA talks is set to kick off in Montreal January 23. But as the negotiations near, there doesn’t seem to be a lot of positivity. The first five rounds reportedly saw very little progress, putting even more pressure on this next round.

What’s the problem? The U.S. is seemingly immovable on five issues that pose major problems for the agreement’s other two member countries, Canada and Mexico.

The five issues include:

  • Removal of reciprocity in government procurement at the sub-national level
  • Changes to the rules of origin in the auto sector
  • Elimination of the independent dispute resolution clause
  • End of Canadian supply management of the dairy, eggs and poultry industries
  • Addition of a “sunset clause” on NAFTA itself

“NAFTA, by itself, will not collapse,” said Mexico’s Economy Minister ldefonso Guajardo in October, but even if Mr. Guajardo is right, it may change drastically from what we have in place today.

If this really does spell the end of NAFTA, the Canadian auto, pulp and paper, chemicals, mining, aerospace and oil and gas industries are likely to be most affected, according to BMO chief economist Douglas Porter.

Even without NAFTA, trade between the three nations is inevitable. Supply chains between Canada and Mexico criss-cross the U.S. How businesses adapt to the realities of a new – or non-existent – NAFTA, is something we’ll be watching closely in 2018.

9. Cyber threats and IP risks

As technology gets more sophisticated and ingrained in our work and personal lives, so too does the threat of cyber security breaches, which in turn compromises our intellectual property. Sixty-four percent of companies surveyed reported some experience of web-based attacks in the past year. Companies of all sizes are targeted and face the risk of cyber threats from simply being connected to the internet. And the costs are large – the average cost of a data breach in Canada is a jaw-dropping $6.03M.

So what types of threats are growing in 2018? Phishing, social engineering attacks, malicious code, botnets, denial of service attacks and ransomeware are all on the rise.

Ransomware in particular is growing in frequency, attacks rose an alarming 50% in 2016. Demonstrative of the damage a ransomeware attack can cause was the aftermath of the WannaCry attack in May 2017. Hundreds of thousands of individuals lost access to their data, compromising intellectual property, private customer information, and disrupting commercial processes.

As a business, it has never been more crucial to include cybersecurity programs directly in your strategy, and engage IT professionals to help cover all aspects of your web-based properties.

10. Demand for global trade skills higher than ever

Despite continuing turmoil and uncertainty on the global political stage, Canadian businesses still hold an optimistic outlook about their export opportunities. According to Export Development Canada’s Fall 2017 Survey, the majority of respondents believe that export sales will increase in 2018, citing new opportunities, growing demand, and expansion into new markets as stimulating factors.

As more businesses of all sizes get involved in international markets, the demand for talent skilled in global trade processes, is also growing.

“We hear from exporters all the time that knowledge is one of the most important tools for building international success,” said EDC Senior VP, Business Development Mairead Lavery.

In 2017, the FITTskills international trade training program underwent a major update, including the addition of 60% new content to reflect the changes we’ve seen in technology, ecommerce, trade agreements and more. In October, FITT also partnered with EDC to expand access to the available resources for businesses of all sizes looking to take advantage of international opportunities.

There’s no doubt that we all face an exciting year ahead, full of innovation, an ever-shifting global political environment, and risks, alongside ample new opportunities for business growth.

What trends will you be watching in 2018?

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]]> https://tradeready.ca/2018/topics/import-export-trade-management/10-global-trade-trends-well-be-watching-in-2018/feed/ 0 https://tradeready.ca/wp-content/uploads/2018/01/2018-trends.jpg 8 ways supply chain management will change in 2018 (Part 1/2) https://tradeready.ca/2017/topics/supply-chain-management/8-ways-supply-chain-management-will-change-2018-part-12/ https://tradeready.ca/2017/topics/supply-chain-management/8-ways-supply-chain-management-will-change-2018-part-12/#respond Wed, 20 Dec 2017 17:44:39 +0000 http://test.tradeready.ca/?p=25465 2018 will see a need for every supply chain manager to become agile enough to adapt to rapid technological developments as they come - or flounder in the wake of those that do.

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We are said to be experiencing the Fourth Industrial Revolution, building on the seismic shifts that came before it at an unprecedented speed of technological breakthroughs. This revolution is evolving exponentially, combining aspects of the physical, digital, and biological spheres, and disrupting every industry on a worldwide scale.

Needless to say, global value chains are not immune to this continual disruption. 2018 will see a need for every player to become agile enough to adapt to rapid technological developments as they come – or flounder in the wake of those that do.

Here are the top 8 ways supply chain management will be different in 2018, and how you can keep up.

1. Machine learning will teach supply chain managers how to optimize

Artificial intelligence is becoming an increasingly prevalent part of international business each year, and shows no signs of slowing.

In the past 12 months, over $4 billion has been invested into AI by U.S. venture capitalists alone, and that’s not counting established AI companies or efforts undertaken by other businesses.

With the ability to process data in real time and adjust your demand forecasts, inventory levels and shipping strategies for optimal performance, machine learning has the potential to save companies millions of dollars, making AI technology and training a worthwhile investment.

One of the most popular uses of machine learning is Multi-Echelon Inventory Optimization (MEIO). For companies with inventory in several locations, this tool informs you of the optimal inventory levels for each location, and has reduced total inventories by as much as 30% while maintaining or improving customer fill rates.

Machine learning is also being used to make forecasts and plans for the launches of new products, and to predict demand and adjust inventory and shipping accordingly during promotions. However you use it, the potential to act faster and more efficiently at lower costs is impossible to ignore.

2. Cybersecurity will be a top priority to keep your technology and data safe

What do Equifax, Deloitte, Yahoo, InterContinental Hotels Group, Chipotle, Brooks Brothers, Kmart and Verizon have in common? They all made the news in 2017 for customer data breaches, with millions of people affected.

There are few things more valuable to a business than its data, and few things that will drive customers away faster than concerns about their emails, credit card numbers, passwords or other information falling into the hands of hackers.

Businesses must be proactive to keep their servers secure, and ensure employees are trained to watch out for phishing and other online scams. If any sensitive data is entrusted to third parties, whether partners, clients or service providers, companies must be vigilant about their security measures as well, since breaches through a third party are an equally damaging blow.

As more devices are connected through the Internet of Things (IoT), companies must include proper security measures in the design of their products to ensure interconnected devices are not left vulnerable to cyberattack.

3. Having a Plan B will be essential to stay profitable in case tariffs increase

In 2017, the U.S. made headlines by announcing significant new tariffs on softwood lumber and Bombardier jets, as well as solar panels and other technology. With the future of NAFTA still uncertain and President Trump delivering an “America First” national security strategy – promising to act on what they see as unfair trading practices – 2018 could see further tariff increases.

Whether your supply chain involves the U.S. or not, new tariffs could add to your 2018 costs, and leave you in the red if you’re not prepared for them.

If tariffs increase, are you prepared to cut back costs in other areas to remain profitable? Or to re-route your supply chain to avoid those tariffs?

Maybe your business would need to consider exiting the U.S. or another market altogether.

Ensure you have a in place and do your research about the latest tariffs, trade agreement negotiations and other related developments so you’re not caught by surprise when changes come.

4. There will be more robots and automation in warehouses than ever before

The rise of robotics in manufacturing has been a leading story for decades, and continues to evolve with the latest technology. The trend is now expanding to warehouses around the world.

The main question seems to be how these robots will interact with humans, if at all. Some, like Amazon’s 80,000 Kiva robots, are designed to work independently, taking the place of floor workers. Others, like those designed by 6 River Systems, work with employees on the floor to increase their speed and efficiency, or are controlled by humans through VR like Kindred’s Orb robots, to help the robots learn the skills they need to operate independently.

Focused on finding products, sorting them and moving them for transportation, robotics are improving efficiency and have the ability to learn and improve over time. Where does this leave human employees? Some tasks requiring fine motor skills are still beyond warehouse robots, requiring human intervention on the floor. Other employees have improved their technological skills to work more closely with their robotic counterparts, improving their results and easing the physical toll of their work.

A loss of jobs is inevitable, but those with the skills to adapt to higher-skilled labour will be able to thrive for years to come.

Stay tuned for part 2 with 4 more of the top 8 ways supply chain management will change in 2018.

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]]> https://tradeready.ca/2017/topics/supply-chain-management/8-ways-supply-chain-management-will-change-2018-part-12/feed/ 0 https://tradeready.ca/wp-content/uploads/2017/12/supply-chain-2018-robot.jpg How will today’s tech innovations affect the future of your global business? https://tradeready.ca/2017/topics/researchdevelopment/how-will-todays-tech-innovations-affect-the-future-of-your-global-business/ https://tradeready.ca/2017/topics/researchdevelopment/how-will-todays-tech-innovations-affect-the-future-of-your-global-business/#respond Mon, 18 Sep 2017 14:06:22 +0000 http://test.tradeready.ca/?p=24704 Find out what the experts in our latest #TradeElite Twitter chat had to say about how today's tech innovations are already changing how we do business.

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At FITT’s upcoming conference, Your Future in Global Markets, we’ll be exploring the key issues international businesses will face in tomorrow’s global marketplace. It goes without saying that innovations in technology will be driving that future.

So, ahead of the deep dives we’ll be taking into all aspects of preparing a global business to be a top performer into the future, we wanted to get a sneak peek into how today’s tech innovations are already changing the way multinational businesses are operating, planning and even staffing. Here’s what the experts had to say in this month’s #TradeElite Twitter chat.

Moderator:

Kelly Freeman from ICECORP Logistics Inc. (@Icecorplog), based out of Toronto, Ontario.

Panelists:

Nicole Verkindt (@Offsetmarket) – Founder, OMX, “Dragon”, Next Gen Den, Panellist, CBC News, The Exchange based out of Toronto, Ontario.

Amy Karam (@AmyKaram) – Author, speaker, instructor and global expansion and competitive strategy consultant based out of Ottawa, Ontario.

Gustavo Zentner, CITP|FIBP (@GZInterpoc) – President of InterPOC – International Point of Commerce and Trade Champion for Canadian Manufacturers & Exporters, based in Winnipeg, Manitoba.

Paula Greene, CITP|FIBP (@PaulaIntlMkt) – President & CEO at BEYOND Ventures Group Inc. DBA BEYOND, based out of Halifax, Nova Scotia.

Omar Allam (@Omar_Allam_) – Founder and CEO of Allam Advisory Group based out of Ottawa, Ontario.

1. What are the biggest tech innovations driving global business today?

2. Where do you see the biggest impact to your business?

3. Is technological change creating a new global economy?

4. AI is a hot topic – how do you see that affecting business in the future?

5. What are 3 ways tech will disrupt business in the future?

6. What is key to staying ahead of disruption?

7. How can global business use tech in their strategy to stay competitive and maintain growth?

8. Are there any emerging innovations that you’ve seen that you think will make an impact in the future?

Read the rest of the chat and follow future discussions by following the #TradeElite hashtag.

It’s not too late to register for Your Future in Global Markets 2017, so act now to sign up see all of our panelists live, along with our other great speakers, events and more!

And stay tuned for the next #TradeElite chat, coming up Thursday, October 12 at 2:30-3:30PM ET.

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]]> https://tradeready.ca/2017/topics/researchdevelopment/how-will-todays-tech-innovations-affect-the-future-of-your-global-business/feed/ 0 https://tradeready.ca/wp-content/uploads/2017/09/today-tech-tomorrow-business.jpg At risk of automation? Transition into these growing jobs https://tradeready.ca/2017/topics/supply-chain-management/risk-automation-transition-growing-jobs/ https://tradeready.ca/2017/topics/supply-chain-management/risk-automation-transition-growing-jobs/#respond Mon, 09 Jan 2017 13:45:42 +0000 http://test.tradeready.ca/?p=22182 It’s true that robots and automation are changing the way business is conducted, and it certainly is disrupting the workforce but humans are still needed.

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]]> automation jobs

Starting to think the robot uprising is imminent? Relax. With all the published reports and articles on the increasing use of robots and automation, one may think there will be no place for humans in the workforce within the next few years.

On the contrary, humans will be needed more than ever before, just in a different role.

It’s true that robots and automation are changing the way business is conducted, and it certainly is disrupting the workforce. A 2013 report by Carl Benedikt Frey and Michael Osborne studied the probability of computerization for 702 occupations, and found that 47% of workers in the U.S. had jobs that were at high risk for potential automation. In particular, workers in transport and logistics and office support “are likely to be substituted by computer capital”, according to the report. Workers in sales and services also face a high risk of computerization.

A World Economic Forum report forecasts that 7.1 million jobs could be lost by 2020, the majority of which are expected to be white-collar office and administrative jobs.

Since the beginning of human existence we’ve had to evolve or die

Innovation is nothing new. It has often led to sector disruptions, as well as the introduction of new types of jobs. A classic example occurred in the 1800s, when 80% of the U.S. labor force worked on farms. Thanks to the introduction of improved farm equipment and machinery, today that number is only about 2% and food has become less expensive relative to income. As a result, people have money to spend on other things and have also transitioned to jobs in other areas.

According to Massachusetts Institute of Technology (MIT) economist David Autor:

Automating a particular function so that it can be done more efficiently increases the demand for human workers to take on other tasks that have not yet been automated.

An illustrative example of this is none other than Amazon.

Amazon now has 45,000 robots in about 20 fulfillment centers. That’s a 50% increase from 2015.  As the company expands its use of automation, it is also growing its human workforce. From the fourth quarter of 2015 through the third quarter of 2016, Amazon reported a 46% increase in employees, not counting seasonal workers. According to the company, most of the stowing and picking of items, which require fine motor skills and discernment, is done by its employees. However, the company continues to experiment with automation, including artificial intelligence and drone delivery.

Where are human skills still needed?

And this brings us to another point regarding the importance of humans in the workforce. New jobs are being created in fields such as the development of artificial intelligence (AI). For example, self-driving vehicles may need remote operators to cope with emergencies, or ride-along concierges for delivery. In addition, corporate chatbot and customer-service AIs will need to be built, maintained and updated.

It’s not a surprise that most new jobs will be technology-based.

According to the previously cited World Economic Forum study, the types of jobs that will be in demand in 2020 include:

  1. Data analysts to sort through and interpret the data generated from all the technology.
  2. Computer and mathematical skills for such positions as computer programmers, software developers and information security analysts.
  3. Engineers focused on biochemicals, nanotechnology, robotics, and materials.
  4. Specialized sales people who can explain the company’s offerings to a wide range of clients.
  5. Product managers that can design and develop products such as cars, appliances, gadgets, and other manufactured goods.

Are you ready? To stay relevant in today’s business world, you need to amass a skillset that will continue to provide work opportunities such as the roles listed above. The global logistics market is changing dramatically, and for the folks that embrace these changes and continue to update their skills, the opportunities are endless. One sure step to ensure you don’t get left behind? Make learning a daily habit.

What are you doing to keep your skills current? How have you seen your job field changing due to technology?

Disclaimer: The opinions expressed in this article are those of the contributing author, and do not necessarily reflect those of the Forum for International Trade Training.

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]]> https://tradeready.ca/2017/topics/supply-chain-management/risk-automation-transition-growing-jobs/feed/ 0 https://tradeready.ca/wp-content/uploads/2017/01/automation-new-jobs.jpg Are you at risk of being replaced by a robot or automated system? https://tradeready.ca/2016/topics/import-export-trade-management/risk-replaced-robot-automated-system/ https://tradeready.ca/2016/topics/import-export-trade-management/risk-replaced-robot-automated-system/#respond Thu, 25 Aug 2016 14:00:34 +0000 http://test.tradeready.ca/?p=21075 If you know you don't want your job taken by an automated system or robot, start changing now to ensure your place in the future of international trade.

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]]> Automated systemI grew up reading comics about a city taken over by robots. While I was amazed by this concept at the time, I can see that the future envisioned in those comics is now turning into reality.

Oxford University estimates 47% of U.S. jobs are at risk of being replaced by robots within the next 20 years. Other estimates predict that the majority of jobs requiring basic repetitive skills, including manufacturing jobs, will be automated.

These estimates also conclude that two-thirds of white collar jobs will be lost to automation within that same time period. This includes several levels of global business professionals, from banking and finance and legal professionals to researchers and marketers.

There is reportedly a 65% chance that a child born today will grow up to work at a job that currently doesn’t exist. Though I am an optimistic person, I worry about the implications of these fascinating statistics on the economy and on international trade.

We are soon going to be living in a society where there won’t be enough work for everyone. More importantly, many of the remaining available jobs, even in white-collar industries like finance or law, will be paid less and require less responsibility, critical thinking and high-level skills than an average job today.

Though we are all born with different aptitudes and IQ levels, society has so far done a fairly decent job in providing work for the majority of the population. Even though job satisfaction levels are at an all-time low, most of us can still find work to put food on the table. Low-skill work involving heavy repetition often has a very low job satisfaction rate, but ultimately provides jobs that are essential to the economy and employment rate.

As these jobs are increasingly outsourced to lower paying countries, or replaced altogether by technology, what happens to the people who once held them?

The new industrial revolution will affect young professionals

We are now into our fourth phase of industrial revolution. The first one, which centered on the invention of steam engines (1817-1865), pioneered industry, and electric power brought the second revolution from 1865-1914. The air travel era (1914-1973) is now considered to be the third phase.

In our current phase, with the invention of the Internet and other related technology, we are seeing changes in our lives that are unprecedented in the history of mankind.  The good news is that millennials today are the savviest, best-educated generation to date. The bad news, is that they’re also earning less than ever before.

The average earnings of adults aged 18-34 between 2009 and 2013 ($33,880 USD) is the lowest since 1980, the New York Times reports. Many manufacturing, blue-collar and low-level white collar jobs which supported America’s international trade have been replaced by technology or outsourced. As a result, there are fewer stable, well-paying employment opportunities.

Many young professionals are unable to enter into the higher echelons of the workforce immediately. Instead they are forced to scrape together low-level, poorly paying work to support themselves, a phenomenon often referred to as “underemployment.”

Even high-level professionals may be under threat from technological change

The Internet of Things (IoT) is also connecting humans with devices to make our lives easier, and many tasks can be completed more efficiently than ever due to advancements in manufacturing engineering.

Robots are still far behind in terms of human intellectual levels, serving to make people’s jobs easier, rather than replace them. What distinguishes them, however, is their seemingly infinite ability to share and learn. Imagine millions of robots working on the same job and documenting their learnings in a cloud environment. This information sharing and machine learning could potentially outclass human intellect within a matter of years.

The counter-argument is usually something along the lines of: “Okay, I can probably order a burger through a robot, or even book an appointment or run some numbers through one, but what about skilled global trade roles such as logistics managers, trade lawyers, marketing executives, or CEOs?

These professionals not only have the theoretical knowledge, but also the ability to make intelligent decisions based on their assessments. Robots, on the other hand, have to depend on past data and are very limited in their decision-making capabilities.”

New technology is enabling a DIY-style international trade mindset

With the plethora of information available online, however, the need to consult a professional has been minimized in many cases. For example, prior to meeting up with a lawyer,  I have already drafted my case, minimizing the time spent on paperwork.

Doing business internationally is becoming easier due to access of information. This is leading to less autonomy for many professionals than they have enjoyed throughout the centuries. Now, professionals may not be the only expert in the room when dealing with the client, and instead can act as more of a facilitator. Software automation is helping people to do everything from filing taxes to planning travel, and therefore reducing the related service jobs.

I learned how to incorporate and trademark in a foreign country solely through guides available online, and then did it successfully without any issues.

You can research the latest trending items, source a manufacturer and then ship the product directly without even physically touching the product. And you can do this from anywhere in the world, all without the help of an experienced professional.

I was selling products made in China to Australian customers through a U.S. warehouse while sitting in Canada. There are even more complex examples out there.

The Internet is enabling far greater levels of globalization than ever before, all without the help of specialized professionals.

Worried about these big changes? There’s good news and bad news

Big Data has been a buzz word for a few years now, but we haven’t been able to fully exploit its potential because it’s not consolidated. When it comes to much of the latest international trade news and research, it’s impossible to keep up with all of the best information out there. Other human import/export professionals may have trouble keeping up too, but soon robots will have no problem doing this.

Today, we trust humans more than we do machines for intellectual problems, but this could change. Once robots know more than us, they will be able to analyze data and make predictions much more accurately than human professionals because they will be able to read, analyze and interpret far greater amounts of data at a significantly faster rate.

So in the future, a robot might diagnose a supply chain issue, a legal problem or financial irregularities, research similar issues and how they were solved, analyze all possibilities and then present conclusions and recommended courses of action. The supply chain professional would then simply have to read through the robot’s report and choose whether or not to approve the recommendation. Such an approach could cut an estimated 60% of the current jobs in manufacturing.

Use automation as the fuel to strive for more in your career

While I remain concerned about how automation may improve the lives of the socioeconomic elite far more than average people, I think that it will bring greater efficiency into our lives and significantly lower the cost of delivering services. This will allow people to have access to things they never had in the past, such as medical surgeries, drugs, travel, or legal services.

The bad news is for the people who are not interested in personal growth and want to stay within their comfort zones. There is no place for marginal work in the future. So get ready to expand your skillset, improve your technical knowledge and work alongside increasing numbers of robots and automated systems as you find your niche in the changing employment landscape.

In a decade or two, we will be able to classify people in two categories: people who tell computers what to do, and people who are told by computers what to do.

If you know which side of those two categories you want to be in, start changing now to ensure your place in the international trade world of the future.

Disclaimer: The opinions expressed in this article are those of the contributing author, and do not necessarily reflect those of the Forum for International Trade Training.

The post Are you at risk of being replaced by a robot or automated system? appeared first on Trade Ready.

]]> https://tradeready.ca/2016/topics/import-export-trade-management/risk-replaced-robot-automated-system/feed/ 0 https://tradeready.ca/wp-content/uploads/2016/08/Automated-system.jpg Is there a place for old-fashioned values in today’s tech-driven supply chain world? https://tradeready.ca/2015/global_trade_tales/tech-driven-supply-chain-world/ https://tradeready.ca/2015/global_trade_tales/tech-driven-supply-chain-world/#respond Mon, 02 Nov 2015 13:03:19 +0000 http://test.tradeready.ca/?p=16294 “Schwinn” had a magical name in the 1960s that became synonymous with bicycles. The brand had developed a great reputation for quality and durability. Over the intervening years, the processes and technologies have changed the industry, but is there still a place for good old-fashioned values in today's tech driven supply chain world?

The post Is there a place for old-fashioned values in today’s tech-driven supply chain world? appeared first on Trade Ready.

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“Schwinn” had a magical name in the 1960s that became synonymous with bicycles. The brand had developed a great reputation for quality and durability.

I was fortunate enough to work in the OEM (Original Equipment Manufacturing) Purchasing Department in this era, which later became the Materials Division.

Everything was done by hand, except for phone calls, and an antiquated pre-dated fax system that actually smoked when a message was sent overseas!

Over the intervening years, the processes and technologies have changed the industry, but in modernizing let’s not lose sight of the key principles every successful business is founded on – quality, collaboration, integrity, and a customer focus.

Ahead of their time with a focus on quality

The company I worked for practiced a strong “Zero Defects” policy for the quality of all components and completed bicycles. This was long before the AQL or Six Sigma quality processes of today.

All bicycles had a lifetime warranty for the frame. We purchased the best bicycle componentry that was available, worldwide, to support our bicycle assembly line.

Today, typical dealers do not have lifetime warrantees on their products. We took pride in quality, and were able to closely manage manufacturing by doing it in-house, and doing checks and double checks before frame completion. Processes were done carefully, by hand, not by machine or robot like the manufacturing world of today.

Today, businesses have replaced top quality with the Six Sigma approach. This means limiting defects to 3.4 or less per million units.

This sounds great, but even operating under Six Sigma, Toyota, GM and other large manufacturers have had significant quality issues.

Is it the different pride and culture of today, or just better business?

Though most larger companies have lost that hands-on touch through automated processes and robotics, closer monitoring, inspection technology and IoT data tracking may help ensure high standards of quality in the future.

Let’s not lose sight of quality products for the sake of more efficient production.

Operating in the true spirit of collaboration

Every supplier in the United States and Europe wanted to do business with our company. We would meet in different cities yearly to collaborate. We invited our overseas and domestic suppliers, dealers and administration to talk about how we could improve, and what the next phase of our business relationship would be.

Collaboration was a key word in the company, long before “synergy” and “strategic alliances” became the buzzwords they are today.

Nowadays, collaboration is coming “alive” again. There is collaboration software, and even competitors are working together to innovate and push industries forward. That was unheard of a generation or two ago.

Back then, we truly partnered with our suppliers. Word of mouth and handshakes “sealed the deal” in the 1960s.

Of course, we used hard copy purchase orders, and there were terms and conditions of doing business on the back side of the P.O. Our suppliers sent their acknowledgments to our P.O.s and they had their own terms and conditions. We called this “the battle of the forms.”

But, it never wound up in court. Back then, if there were ever any issues, we resolved them in the spirit of cooperation and fairness.

Can we bring back this element of cooperation and genuine relationships with our suppliers and distributors?

Integrity and reliability pay off

Schwinn paid on time, every time. Generally, back then the terms were 1%-10-30 and Schwinn took advantage of the 1% discount. If you pay on time and are credible, suppliers wanted that kind of business relationship.

There were some deep negotiations in those days, but there was never any “fists pounding the table” asking for cost reduction. Collaboration and trust resulted in the optimum price per unit of what you purchased. We believed in value, not cheap prices.

The word ‘cheap” is used too much today. It is all about the best price possible. If you do get “cheap”, however, you will also get “cheap” service, quality and delivery. Value is coming back slowly today as consumer demand for “sustainable” products with ethical sourcing increases and supply chain and delivery gets more complex.

We can get the best value out of the supplier/exporter these days by partnering with companies that match our ethics, quality and integrity standards, and not settling for those that will merely give you a better price.

You’ll pay for cost-cutting in these areas in the end, anyway.

Schwinn Ad
Image via Tom Simpson: Flickr

Bridging legacy systems with new advances in supply chain technology

During my time with Schwinn, my goal with the suppliers overseas was to meet the delivery date in Chicago, to keep the bicycle assembly line constantly moving. Once the materials were ready, they were given to forwarders of my choice in various countries. We shipped “break bulk”. All parts were put in wooden crates, pre-containerization.

There was no way of tracking these shipments other than by telephone. I would have to give updates to our inventory/production control team if the shipment was needed faster than normal and had to be expedited.

I had a map of the Great Lakes in my office when the lakes were open for vessels. I would mark locations of these vessels daily on the map by calling our broker or forwarder, and inventory/production control could check the map to see where the vessel was at any point.

Contrast that hands-on tracking system to the technology used today. We use an entire array of still emerging technology such as RFID, GPS systems, and software tracking systems to monitor shipments coming from overseas.

The in-transit time shipping “break bulk” from overseas sources was typically six to eight weeks. Yet, the assembly line never stopped.

We did what we had to do to keep our supplies coming in and our products into the hands of our customers.

During an east coast dock strike, I went to Halifax, Nova Scotia, to expedite our crates to keep the bicycle line moving. The crates were everywhere. I worked with the dock workers. I even gave them Canadian cigarettes to keep them motivated.

I looked around and saw large containers and I was curious. I asked, “What are those containers?” The dock workers said the crates were put in containers for ease of use, and for consolidated shipments. They were much easier to work with than wooden crates all over the dock.

Upon return to Chicago, I suggested a containerization program to my boss, the VP of materials. We agreed to a trial shipment.

I alerted my suppliers, forwarders, and customs broker about this new program. We consolidated shipments from our French suppliers and put them in one container.

Once the shipment left France, the container hit Schwinn, Chicago in only three weeks! This was half the time of break bulk shipments. Needless to say, we switched to containers for all of our overseas suppliers in Germany, Switzerland, Italy, and England.

We sold 1,000,000 bicycles in one year and were sold out of production the first day of that new year.

This container program made tracking easier, with less inventory and shorter lead time. Today, 20’ and 40’ containers are standard in overseas purchasing and importing.

Imagine, working with no e-mail, internet, ERP, TMS, WMS, EDI, tracking systems, or iPhone. But, it worked!

Teamwork, quality, a handshake, collaboration, trust and openness was very effective.

Improvements in supply chain management processes, tracking technology, manufacturing and transportation are a great thing. Schwinn was always looking for ways to improve the way things were done.

But in those days taking a hit on quality to make an extra dollar was not an option. And our key focus was always customer satisfaction.

If you can do both, you will always be a success.

Do you think things like collaboration, trust and good old-fashioned handshakes have a place in today’s business world? 

Disclaimer: The opinions expressed in this article are those of the contributing author, and do not necessarily reflect those of the Forum for International Trade Training.

The post Is there a place for old-fashioned values in today’s tech-driven supply chain world? appeared first on Trade Ready.

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