Canadian retailers say the keys to improving returns are export sales and omnichannel fulfillment, according to survey results released Wednesday by e-commerce specialist eBay Inc.
eBay Canada's first SMB Optimism Index polled small and medium-sized businesses (SMBs) on the challenges and keys to success for business in the coming year. Scored on a scale of 1 to 100, ranging from very pessimistic to very optimistic, Canadian retail SMBs averaged a 74 on the new index. However, those that export indexed notably higher, at 79 points, while non-exporting SMBs are significantly less optimistic, at 72 points.
SMBs that export reported an average of nearly 60 percent more in sales than those who don't, eBay found. They were also more likely than non-exporters to believe there are new market opportunities for them (70 percent versus 36 percent) and that technologies and innovations will positively impact their business (56 percent versus 41 percent).
The variety of sales channels used by a business was another contributing factor to SMB success, with omnichannel businesses scoring at 77, compared to 72 for single-channel enterprises. Further, omnichannel SMBs that use digital channels scored higher on the index (77) than those that don't (73).
"Given the relatively small size of the Canadian market, it stands to reason that business optimism in our country would be linked to exporting," Andrea Stairs, managing director for eBay Canada, said in a statement. "A critical success factor to scaling a Canadian business is the ability to tap into international demand. E-commerce has helped democratize international trade, and global online marketplaces like eBay are enabling SMBs to reach buyers beyond their borders and fulfill their potential."
The survey also revealed retailers' concerns about future business conditions, including low margins, tough domestic competition, and the purchasing value of the Canadian dollar. Government policies were also a worry, as more than half of SMBs surveyed (56 percent) agreed that Canada is a good country in which to run a business, but only 38 percent believed the Canadian government makes decisions that help their business.
Additional key findings from the eBay Canada SMB Optimism Index include:
More than half (54 percent) of SMBs surveyed felt optimistic about 2017, with one in five (19 percent) feeling very optimistic.
Quebec SMBs are overall the most optimistic, scoring 79 on the index; SMBs from the Atlantic are the least optimistic, with a score of 72.
Two in three SMBs that have been in business for less than five years (66 percent) were optimistic about their business prospects for 2017, compared to 47 percent of SMBs that have been operating for 20-plus years.
One in four SMBs (28 percent) expected to increase their number of sales channels in 2017. This number grew to 38 percent for exporting SMBs and dropped to 22 percent for non-exporting SMBs.
16 percent of SMBs expected to increase their employee headcount in 2017. More exporting SMBs—26 percent—expect an increase, in contrast with just 11 percent of non-exporting SMBs.
The online survey was facilitated by MARU/Vision Critical Research & Consulting between August 3 and August 30, 2016. The sample consisted of 427 SMBs and 117 commercial eBay sellers from across Canada. To qualify for the survey, SMBs had to indicate a minimum revenue of $13,000 CAD annually and indicate that they don't have more than 99 employees. eBay sellers had to indicate a minimum revenue of $13,000 CAD annually, but no parameters were set for number of employees.
Contract logistics provider Kuehne+Nagel today opened its 10th healthcare logistics facility in Canada, announcing it would operate the 270,00-square foot temperature-controlled fulfilment center for its partner, Medtronic.
Kuehne+Nagel will use the Milton, Ontario, site to distribute Medtronics’ products to hospitals and institutions. Medtronic also operates a service and repair center within the facility, as well as a test and preventative maintenance center for their medical equipment.
The expansion comes as the healthcare market in Canada has grown in the last decade due to technological advancements, changing demographics, and healthcare investments, particularly in a post-pandemic environment. According to Kuehne+Nagel, the medical device market is projected to grow at a compound annual growth rate (CAGR) of 5.8% from 2024 to 2030 and within the pharmaceuticals sector, market demand continues to drive impressive growth.
Headquartered in Switzerland, Kuehne+Nagel has over 80,000 employees at almost 1,300 sites in close to 100 countries worldwide.
Based on a survey of 200 TIA members representing the diversity of the industry, 98% of respondents identified truckload as their most vulnerable mode. And those thieves are in search of three most commonly stolen goods—electronics, solar panels, and household goods—due to their high value and ease of resale.
Criminals commit those crimes through a variety of methods. The survey highlighted eight fraud types, including spoofing, unlawful brokerage scams, fictitious pickups, phishing, identity theft, email/virus, inbound phone calls, and text messages.
Stopping those thefts demands extra work from companies in the sector, as nearly 1 in 5 respondents indicated that they spend an entire day each quarter on fraud prevention, while 16% reported spending more than 4 hours a day, and 34% said they dedicate more than 2 hours a day to these efforts. This considerable time investment in monitoring, verifying, and responding to fraudulent activities diverts attention from other essential business operations, affecting overall productivity and increasing operational costs, TIA said.
In response, Alexandria, Virginia-based TIA also examined the critical steps the industry must take to protect itself from fraud schemes. "We are an industry under siege right now and we are not getting the support from government and law enforcement authorities to help us combat this scourge on the supply chain," Anne Reinke, president & CEO of TIA, said in a release. "When people think of fraud in the supply chain, they only see what is happening to a business, they are not seeing the trickle-down effect to consumers and economy. Fraud is a multimillion-dollar problem that needs to be addressed today."
By the numbers, overall retail sales in August were up 0.1% seasonally adjusted month over month and up 2.1% unadjusted year over year. That compared with increases of 1.1% month over month and 2.9% year over year in July.
August’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.3% seasonally adjusted month over month and up 3.3% unadjusted year over year. Core retail sales were up 3.4% year over year for the first eight months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023.
“These numbers show the continued resiliency of the American consumer,” NRF Chief Economist Jack Kleinhenz said in a release. “While sales growth decelerated from last month’s pace, there is little hint of consumer spending unraveling. Households have the underpinnings to spend as recent wage gains have outpaced inflation even though payroll growth saw a slowdown in July and August. Easing inflation is providing added spending capacity to cost-weary shoppers and the interest rate cuts expected to come from the Fed should help create a more positive environment for consumers in the future.”
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.
Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.
To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.
“Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins,” Chris Leone, executive vice president, Applications Development, Oracle, said in a release. “The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes.”
According to Oracle, specific upgrades feature changes to its:
Production Supervisor Workbench, which helps organizations improve manufacturing performance by providing real-time insight into work orders and generative AI-powered shift reporting.
Maintenance Supervisor Workbench, which helps organizations increase productivity and reduce asset downtime by resolving maintenance issues faster.
Order Management Enhancements, which help organizations increase operational performance by enabling users to quickly create and find orders, take actions, and engage customers.
Product Lifecycle Management (PLM) Enhancements, which help organizations accelerate product development and go-to-market by enabling users to quickly find items and configure critical objects and navigation paths to meet business-critical priorities.