Background
In recent years, the retail and consumer goods industry has seen an increase in the amount of imports out of Asia. In fact, according to a recent report, 2021 was a record setting year for imports to the US out of Asia, jumping 14.4% over 2020[1]. This increase can be explained, in part, by the substantially impactful supply chain interruptions in early 2020 and also due to increased demand for consumer goods. In turn, this increase in imports has contributed to congestion at several US Ports.
In September of 2020, MD Logistics was acquired by Nippon Express Group, becoming a wholly owned, independent subsidiary of Nippon Express.
MD Logistics operates as a third party logistics (3PL) partner, providing warehousing services, domestically, in the US. Headquartered in the Midwest, MD Logistics operates five warehouse locations. Four warehouses located in the Crossroads of America, Plainfield, Indiana, that service the Midwest, one warehouse servicing the West Coast from Reno, Nevada and another to be added in the Research Triangle Park region of North Carolina, to better service customers on the East Coast, later this year. This domestic warehouse network services a variety of customers within the Life Sciences and Pharmaceuticals and Retail and Consumer Goods Industries.
Nippon Express Holdings is a publicly-traded, global logistics company with its headquarters in Tokyo, Japan and has operations in 48 countries around the world. Since its founding in 1937, Nippon Express has focused on connecting people, business and communities through the transport of goods. As such, they have a proven track record as a leading provider of transportation and logistics services across the globe.
Challenge
Companies working within the retail and consumer goods industries are often tasked with finding reliable ways to import their product from overseas manufacturers, to be distributed in the US. Creating an end to end supply chain solution with multiple warehousing and freight forwarding vendors is often challenging.
Solution
Working with the same team to plan every aspect of your end to end supply chain could prove helpful in ensuring that each aspect, from beginning to end, is covered. Disruptions can arise at any point of the supply chain. Working with the same team of providers helps to increase communication among all parties involved.
Working with a US based 3PL provider, such as MD Logistics, and a global freight forwarder, such as, Nippon Express, can provide a variety of benefits to your global supply chain.
Convenience. There is a convenience in the ability to work with the same team to ensure all aspects of your global supply chain are covered. The teams at MD Logistics and Nippon Express both work very closely together to ensure their customers supply chains are moving forward.
Expertise. Both MD Logistics and Nippon Express bring with them their own expertise in the industries in which they operate. MD Logistics has over 26 years as a leading 3PL within the retail and consumer goods industry, while Nippon Express has been operating as a global freight forwarder for nearly 85 years. Both MD Logistics and Nippon Express have extensive experience managing supply chains within the retail and consumer goods industries. For Nippon Express, freight within the consumer goods industry is the second largest commodity that they handle on an annual basis, with over 90% of overseas cargo destined to the US having originated from Asian countries.
Industry Recognition. When choosing providers, considering their recognition in the industry is important. Nippon Express has had the distinction of being included in the Armstrong & Associates Top 10 Freight Forwarders list for the past decade, most recently having been included among the Top 5 global for their expertise in handling air and ocean freight. In turn, MD Logistics has been awarded the distinction of being named a Top 3PL by Inbound Logistics Magazine for the past decade.
Flexibility. Being flexible to respond to fluctuations in demand and consumer expectations is paramount when working in the retail and consumer goods industry. Both MD Logistics and Nippon Express both have the flexibility, as providers, to respond to the various needs of your business. A distribution solution with MD Logistics is not a one size fits all solution, service offerings are tailored specifically to the needs of your business and are built to evolve with you. The same can be said for a freight forwarding solution with Nippon Express. With their vast global network, coupled with their expertise in shipping ocean and air freight, Nippon Express has the capability to cater a freight forwarding solution with your specific needs in mind. More specifically, Nippon Express has the ability to combine air and transportation services to offer a multi-gateway service for their customers shipping product to the US. If air freight space is tight at the destination, Nippon Express can re-route the shipment to a delivery point with more space and finish the delivery via their expansive US transportation network.
Results
Disruptions can arise at any point of the supply chain. Working with a team of providers can increase communication among all parties, minimizing costly interruptions in your supply chain from occurring. Working with a 3PL and freight forwarder who has the expertise to navigate evolving global environment is of upmost importance.
Resources
[1] “Modest growth expected for US imports from Asia after record-setting 2021” from JOC.com. https://www.joc.com/maritime-news/trade-lanes/modest-growth-expected-us-imports-asia-after-record-setting-2021_20220119.html#:~:text=US%20imports%20from%20Asia%20set,previous%20record%20set%20in%202020.
